Woody biomass for heat & power

Woody biomass for heat & power

Agenda • Introduction • Demand: current & future • Forest resources • Initiatives

Michigan Biomass • 6 facilities • 162 MW • >30% of all Michigan renewables • < 1% of all grid power • 2.5 million tons waste wood • Offset 1.2 million MWh coal • 3.8 million tons CO2 reduction • $68 million annual economics

Data • “High altitude” • Coarse, non-regional • All tons green tons • 2 green tons/MWh • 90% efficiency factor • Current demand assumption • 100% wood

Electricity sources Source: Energy Information Agency 2008

Electricity sources Source: Energy Information Agency 2008* Landfill gas, poultry litter, manure digestion, etc.

Electricity sources Source: Energy Information Agency 2008

State energy policy • Public Act 295 of 2008 • Clean, Renewable, Efficient, Energy Act • 10% renewable by 2015 • 1.5% energy efficiencies • Utility-required build • Renewable energy credits (RECs)

Eligible systems • Wind • Solar • Hydro • MSW (trash) • Landfill gas • Biomass

Biomass • “Any organic matter that… • Is non-fossil fuels • Replenishes in human, not geological time

Biomass • Crops and crop wastes • Short-rotation energy crops & herbaceous plant • Animal wastes • Wastewater sludge or sewage • Aquatic plants • Food wastes • Bio-fuels organic byproducts • Pulp, paper and wood manufacturing wastes • Urban wood waste • Land clearing, landscape debris, power line trimming

Biomass • Trees and wood only from sustainably managed forests or procurement systems • The Sustainable Forestry Initiative (SFI) • The Forest Stewardship Council (FSC) • The American Tree Farm systems • The Canadian Standards Association • The Pan-European Forest Certification • The Finnish Forest Certification system • The UK Woodlands Assurance Scheme • ISO 14001 standards

Biomass demand • Electricity generation • Power to the grid • Combined heat & power (CHP) • Mills & manufacturing • Biofuel • Pellets, ethanol, etc.

Current biomass demand • Waste wood • In-forest…… 73% • Whole trees…… 33% • Residues…… 40% • Mill wastes…… 20% • Urban wood waste…… 7% • Recycled wood • Brush, yard waste, land clearing

Existing biomass: electricity 5 • Cadillac Renewable Energy 36 MW • Genesee Power Sta. 36 MW • Grayling Generating Sta. 36 MW • Hillman Power Co. 18 MW • L’Anse Warden Electric 18 MW • Lincoln Power Sta. 18 MW • McBain Power Sta. 18 MW • Totals 180 MW • 2 million tons 4 3 6 1 7 2

Existing biomass: CHP Electricity 3 MW Commercial ½ MW Industrial 89 MW 93 MW Totals 1.5 million tons Source: Energy Information Agency 2008

Existing biomass: biofuels • Burn Right Pellets Inc 1812 • Enviro Industries, Inc. 1420 • Wolverine Pellet Company 4090 • Maeder Brothers Quality 1252 • Monarch Mill Works 3402 • Totals 11,976 tons 1 3 2 Source: MSU Extension graduate project

Current biomass demand • Electricity 2.8 million tons • CHP 1.5 million tons • Biofuels 12,000 tonsTOTAL 4.3 million tons

Future biomass: electricity 11 4 • CMU expansion 17 MW • Detroit Edison ~400 MW • Escanaba 25 MW • Gwinn 20 MW • LBW&L 300 MW • Mancelona 36 MW • Newberry 24 MW • NMU 10 MW • TCL&P 20 MW • Verso 25 MW • White Pine 50 MW • Wolverine Power 120 MW • TOTAL1047 MW 16.5 million tons 8 7 3 10 6 12 9 1 5 2

Future biomass: electricity 11 4 • CMU expansion 17 MW • Detroit Edison ~400 MW • Escanaba 25 MW • Gwinn 20 MW • LBW&L 300 MW • Mancelona 36 MW • Newberry 24 MW • NMU 10 MW • TCL&P 20 MW • Verso 10 MW • White Pine 50 MW • Wolverine Power 120 MW • TOTAL1032 MW 16.3 million tons 8 7 3 10 6 12 9 1 5 2

Future biomass: electricity 11 4 • CMU expansion 17 MW • Detroit Edison ~400 MW • Escanaba 25 MW • Gwinn 20 MW • LBW&L 300 MW • Mancelona 36 MW • Newberry 24 MW • NMU 10 MW • TCL&P 20 MW • Verso 25 MW • White Pine 50 MW • Wolverine Power 120 MW • TOTAL207 MW3.2 million tons 8 7 3 10 6 1

Future biomass: CHP LaFarge Cement 213,000 tons Totals 213,000 tons *

Future biomass: biofuels 1 2 • RenewaFuel 300,000 tons • Frontier (Mascoma) 1 million tons • Kirkland Products 71,000 tons • New Page 325,000 tons • TOTAL 1.7 million 4 3 1

Biomass demand • Current • Electricity 2.8 million tons • CHP 1.4 million tons • Biofuels 12,000 tonsSUBTOTAL 4.3 million tons • Potential future • Electricity 3.2 million tons • CHP 213,000 tons • Biofuels 1.7 million tonsSUBTOTAL 6.1 million tons

Biomass demand • Total potential • Electricity 6.1 million tons ^115% • CHP 1.6 million tons ^15% • Biofuels 1.7 million tons ^14,000% POTENTIALGRAND TOTAL 9.5 million tons ^120%

Michigan forest stats • 19.3 million acres: 53% land mass • Incr. 6%, 1980 • 65% private • 57% non-industrial (ave. <27 acres) • 8% forest industry • 35% public • 14% national • 20% state Source: Michigan Forest Products Council

MCAC report • Available woody biomass • Unharvested fiber (<5") 13.4 million tons • Saw timber 10.6 million tons • Pulpwood 9.4 million tons • Urban wastes 2.2 million tons • Logging residue 1.5 million tons • Roads, ROW, clearing 160,000 tons • Secondary mill waste 158,000 tons • Primary mill waste 75,000 tonsTOTAL 37.5 million tons Source: Michigan Climate Action Council Report March 2009,Table J-1. Potential annual biomass resource availability, pg J-7

Uncertainties • Supply chain infrastructure • Producers • Loss/change of primary markets • Economic impacts • Regional supply • Transportation costs • Accessibility • Availability • Affordability • Market development • Energy = higher value market? • Impact on users • Social, biological, environmental • Carbon constraints (federal)

Initiatives • Forest Biomass Information System • MSU, MTU, MEDC, MFPC • Data extrapolations • FIA and TPO data • Logger, mill, generator surveys (MSU)

Summary • Current demand: 4.3 million tons • Potential total demand: 9.5 million tons • Coarse data suggests feasibility • Regional/detail data lacking • Forest Biomass Inventory System • Forest status • Regeneration has slowed • Ownership • Resource stakeholders • Carbon neutrality

Thank you Michigan BiomassGary Melow, directorgary.melow@michiganbiomass.com

Woody biomass for heat & power