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Biopower Industry Working Group Kickoff Meeting

Biopower Industry Working Group Kickoff Meeting. Held Feb 7 at Ecocomplex 55 attendees Agenda: Context (EMP, OCE programs, Rutgers study) SWAT breakouts Subcommittee working groups defined Subcommittee breakouts Key Next step: CRA input. SWAT Assessment Summary. Weaknesses

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Biopower Industry Working Group Kickoff Meeting

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  1. Biopower Industry Working GroupKickoff Meeting Held Feb 7 at Ecocomplex • 55 attendees • Agenda: • Context (EMP, OCE programs, Rutgers study) • SWAT breakouts • Subcommittee working groups defined • Subcommittee breakouts • Key Next step: CRA input

  2. SWAT Assessment Summary • Weaknesses • Slow legislative and permit process • Feedstock Reliability and Quality • Permitting: Time vs. Uncertainty • Securitization of REC stream • Wholesale energy rates • Threats • REC prices too low • Credit Crisis • Competing Industries for feedstocks • NIMBY • Emissions regulations Strengths • Power costs • Waste (cost, per capita, density) • Refinery Industry • Government Leadership • Baseload potential Opportunities • Connect developers and communities • Predetermination of sustainability • Government/higher education collaboration • Interagency coordination • Leverage petrochemical infrastructure • Brownfield potential

  3. Biopower Working GroupSubcommittee Overview

  4. Biopower Working GroupSummary Comments • “There are very few landfills left in NJ for development. …smaller scale landfill gas and wastewater treatment projects need about 10 to 20% buydown on costs.  Wood biomass projects can need anywhere from 25 to 50% buydown.” • “When we produce electricity, a 15-25 MW plant costs about $.05 per Kwh. When planning, we have a choice between outputs, and find that the $.035 wholesale rate offered by the utilities makes electricity production not economical. “ • “A REC price in the $20 range would not be enough to incentivize generators to burn biofuel.   The higher cost of biofuel and the lower heat value would simply not make biofuel attractive to a generator that has an alternative fuel. “ • “Currently available feedstock is not enough to produce 900 MW Bio power…New ways of production of new biomaterials have to be implemented. .. the state must be encouraged to invest about $75 million per year for the next four years, so that new biomass materials are produced” • “Incentives are needed to support early stage of development cycle— siting, permitting, engineering” • “Many (or possibly most) existing generating facilities that are currently burning oil or that are dual fuel (oil and natural gas) can burn biofuel.  Using existing facilities has two advantages which go a long way toward meeting…this can be done in a lot less time than developing a new project.” • “The definition of Class I resources be expanded to include gasification of municipal solid waste, tires and construction waste as long as these resources and technologies produce power that meets the appropriate emissions standards. …Biodiesel that is produced in NJ from NJ feedstock sources should also be a Class I renewable. “

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