Biomass Challenges for Federal Agencies Presented to the Renewable Energy Working Group

1. Biomass Challenges for Federal Agencies Presented to the Renewable Energy Working Group September, 2002

2. Fort Stewart, GA • Hampton Roads, VA • Bio-Diesel for Transportation • E-85 for Transportation • Gasohol for Transportation • McMurdo Sound • NASA and LFG Existing and Pending Biomass Use in Agencies

3. Build Projects that Use Biomass Energy • Buy Green Power that Uses Biomass Energy • Facilitate the Use or Development of Biomass on Federal Lands or Through Federal Programs Three Approaches

4. Electric or thermal - solid fuel or gasification • Small-scale systems, distributed generation • Large scale generation or cogeneration • Co-firing (biomass and coal or natural gas) • Liquid Biofuels • Ethanol, methanol, bio-oil, bio-diesel • Chemicals and biobased products Bioenergy Technologies

5. Fuel can be stored, unlike wind or solar, therefore: • Biomass can be dispatched when needed • Biomass plants can have high capacity factors • Biomass can be: • substituted for natural gas, • blended with conventional fuels – biodiesel and ethanol • blended with coal Biomass Fuel Flexibility

6. Small-scale power or cogeneration systems • Large-scale biomass generating plants • Combined heat and power • Stand-alone power plants (usually 20 MW or larger) • Wood heating at small facilities • schools, hospitals, housing • Co-fire in industrial or utility boilers • Liquid fuels, specialty chemicals • Green power purchases Applications for Bioenergy

7. Microgeneration – Performance

8. Community Power Corp - Biomax15

10. 55 kW electric 120 kW thermal 450 tons/year fuel Xylowatt SA (Swiss)

12. Facility Heating System Performance Note: Biomass use estimates assume 0.90 capacity, 33,475 Btu-h/boiler hp, and 4,000 Btu/wet lb biomass heat content

13. Heat only or CHP • 5 – 45% MC • Wide range of sizes • Turnkey systems • Co-gen (35 kW – 5 MW) • Automated fuel handling Chiptec Systems, Vermont

14. Messersmith Manufacturers (Michigan) • Grove Wood Heating, Inc (Canada) • Industrial Boiler Company (Georgia) • KMW Energy Systems, Inc (Canada) Other Wood Heating System Manufacturers

15. CostComparisons: Biomass vs.Fossil Fuels

16. Millions of tons of biomass will either fuel wildfires or be removed • Agencies helping private sector use thinnings for energy would be significant for the Federal goal, and for U.S. bioenergy development • USDA Forest Service and Interior are the 800 pound gorillas in this situation • DoD, DOE and others with landholdings to manage have specific local opportunities • DOES NOT HAVE TO BE CONSUMED BY THE AGENCY TO COUNT! Facilitated Project Potential

17. Fires continue to threaten communities • Increased interest and debate over forest restoration • mechanical treatment vs. prescribed burn • diameter limits • community defense only vs. landscape treatment • Mitigation efforts are expensive, but not as costly as fires • Market outlets for small diameter trees can help defer thinning costs Current Situation and Issues

18. 46,000 acres targeted for mechanical thinning under National Fire Plan in 2001, just in Urban-Wildland Interface (UWI) and areas to reduce fire threats to communities • Conservatively, could have supported 436 MW of biomass capacity and over 3000 GWh of generation • Excludes acres with prescribed burns, or a combination of treatments USFS Example

19. DRAFT NREL Assessment of RE Potential on Federal Lands, including biomass • Used satellite data showing Normalized Difference Vegetation Index (NDVI) above 4, proximity to communities at fire risk, population centers. • Identified Planning Units in the Following States: BLM Example • Arizona • California • Colorado • Montana • New Mexico • Oregon • Washington

20. Biomass fuel prices generally stable • hedge against fuel cost variability • Biomass $ stay in state and local economies • Rural economic development and job creation (CA = 5 jobs/MW capacity) • Biomass fuel costs not subject to control of a single supplier Benefits of Bioenergy

21. Biomass is a baseload renewable resource • Reduce SOx and fossil CO2 emissions • Biomass systems are easy to convert to other fuels • Outlet for forest health restoration activities • Landfill diversion of urban wood wastes Benefits of Bioenergy (con’t)

22. Uncertainty • Environmental opposition, distrust • When, where, how much thinning, and how long must be known to develop supply curve • Wildfire is overwhelming focus – not benefits of using thinnings • Little coordination among agency, state and community plans and investments • Small-scale technologies adaptable to supply uncertainty are just becoming commercial • Interconnection , stand-by and buy-back rates Why Isn’t It Happening?

23. Electricity Sales: Breakeven Price vs. Biomass Fuel

24. In contracts seek proposals for energy reuse of removed biomass and industry input on structure of requests for proposals • Work in coordination with States, communities and environmentalists in promising areas to create reliable supply • Support demonstrations of modular technologies that address supply issues Modest Proposals

25. USFS Supported Work with Nevada Tahoe Conservation District, small-scale system • Pending CEC Project on Distributed Biomass Generation with Truckee-Donner PUD • CEC-Funded Analysis of RE Distributed Generation and Public Benefits • Four Corners sustainable forest partnership bioenergy project • Front range biomass energy assessment • Summit and Eagle county biomass energy assessment • Yavapai Apache Feasibility Study Interesting Projects

26. Kevin DeGroat McNeil Technologies 6564 Loisdale Court, S-800 Springfield, VA 22150 Phone: 703-921-1632 Fax: 703-921-1610 Email: kdegroat@mcneiltech.comwww.mcneiltech.com Scott Haase McNeil Technologies 143 Union Blvd., Suite 900 Lakewood, CO 80228 Phone: 303-273-0071 Fax: 303-273-0074 Email: shaase@mcneiltechco.comwww.mcneiltech.com Contacts