Alternative Energy Overview and Cofiring Biomass at Cogen

1. Alternative Energy Overview andCofiring Biomass at Cogen Cogen Neighbor Meeting April 28, 2010

2. Agenda • Introduction • Overview of Climate Action Plan (CAP) and Alternative Energy Study • Woody Biomass Test Burn Schedule • Question and Answers

3. Climate Action Plan www.climate.unc.edu

4. Climate Action Plan • UNC became an early signatory to the American Colleges and Universities Presidents Climate Commitment (ACUPCC) in 2007 and began development of its Climate Action Plan • Overall goal = zero net greenhouse gas emissions by 2050 • The plan addressed all sources of greenhouse gas (GHG) emissions in UNC’s inventory: • On-site fossil fuel combustion (Scope 1 emissions) • Purchased electricity (Scope 2 emissions) • Transportation and other indirect sources (Scope 3 emissions) • The plan includes measures affecting both energy demand and energy supply

5. Alternative Energy Study • In 2008, in support of the Climate Action Plan, UNC initiated a study of several alternative energy technologies for potential implementation at UNC • Involved a diverse team of experts, including UNC Energy Services staff, consultants, contractors, and technology suppliers • Publicly-available and proprietary studies were reviewed, suppliers were interviewed, and plant trips were made to examine operational examples of the alternative energy technologies under consideration

6. Alternative Energy Study • The alternative energy technologies included: • Biomass Gasification • Co-firing Biomass • Landfill Gas • Poultry Litter • Solar PV • Solar Thermal • Anaerobic Digestion of Animal Waste • Wind Power • Geothermal • Ocean/Tidal Energy • Algae • Carbon Sequestration • Modular Nuclear • Municipal Solid Waste (MSW) Plasma Gasification • Fuel Cells

7. Near-term Alternatives – Carbon Reduction

8. Alternative Energy Study • 20 Percent Coal Substitute • Dried Wood Pellets – Currently Available • Locally harvested virgin lumber from sustainably managed forests • Chipped and dried to reduce moisture in the wood • Pelletized and shipped • Torrefied Wood – Available Fall 2010 • Locally harvested virgin lumber from sustainably managed forests • Chipped and heated, end result similar to charcoal • Can be left in chipped or pellet forms

9. Biomass Test Burn • Challenges • Fuel Supply Chain and Cost • Front End Fuel Handling • Storage • Feed Systems • Impact on Combustion and Heat Transfer Surface • Baghouse Impacts • Ash Disposal Impacts • Amount of Carbon Reduction

10. Biomass Test Burn • Emissions • All Emissions below regulatory thresholds • Decreases in SO2 and Nox • Increases in a number of organics (non-torrefied biomass), but all substantially below regulatory thresholds.

11. Biomass Test Burn • Tests (each fuel) • Feed Tests • Approximately 20 tons (1/4 rail car) • Confirm ability to feed through existing bunkers, feeders, and mills • Sustained Co-fire Tests • Up to 500 tons • Co-fire at 5%, 10%, 15%, 20% levels • Confirm Boiler operation and performance with co-fire

12. Biomass Test Burn • Tentative Schedule • Test Protocols – Spring 2010 • NC Dept. of Air Quality Permit – Spring 2010 • Dried Wood Pellets Tests – Spring to Summer 2010 • Torrefied Wood Tests – Fall to Winter 2010/2011 • Evaluation and Implementation Plan Development – 2010/2011 • Burn 2012 - ? (Fuel Supply Chain and Extent of Required Modifications)