0703RiceLakeEnergyCo nference

Biomass to Energy Opportunities for Northwest Wisconsin: 

Biomass to Energy Opportunities for Northwest Wisconsin Dr. John F. Katers Associate Professor, Natural and Applied Sciences University of Wisconsin-Green Bay Wood Energy Consultant, Renewable Energy Program Focus on Energy

Topics To Be Covered: 

Topics To Be Covered Focus on Energy program Biomass Overview Sources of Biomass Conversion Technologies Characterizing Wood Biomass Marketing and projects Wood Biomass Case Studies Conclusions

Focus on Energy – Big Picture: 

Focus on Energy – Big Picture Created by legislature in 2000 Offered statewide in 2002 Funding from utility fees Initial Focus budget: $62.3 million per year Current Focus budget: $34.8 million per year Initial RE program budget ~$4.4 million per year Current RE program budget: ~$2.6 million Funding will increase significantly as of July 1, 2007

Wisconsin Focus on Energy Public Benefit Program: 

Wisconsin Focus on Energy Public Benefit Program Includes: Energy Efficiency/Conservation Residential Commercial Industrial Conservation is obviously the best place to start Renewable Energy

Who is Eligible? : 

Who is Eligible? Must be located in the service territory of a participating electric provider Xcel, Wisconsin Public Service, We Energies, Madison Gas and Electric, Alliant Many Rural Electric Coops and Municipal Utilities Individuals, businesses, organizations, institutions, municipal or tribal government

Renewable Energy Vision and Program Plan: 

Vision: Make renewable energy a main stream option leading to large scale adoption Plan: Reduce Barriers to Adoption Lack of Information Lack of Infrastructure Institutional Constraints High First Cost Focus on Specific Markets Renewable Energy Vision and Program Plan

FY 06 Renewable Energy Targeted Markets: 

FY 06 Renewable Energy Targeted Markets Residential Solar Electric Water heating Commercial Solar Electric Water Heating Commercial Wind Biomass or Bioenergy Biogas Digesters (Farms and POTWs) Non-residential Wood Burning Other forms of biomass can be utilized, but funding from Focus is not available for these applications during FY07

Focus Goal 1: Customer Support: 

Focus Goal 1: Customer Support Help individuals, businesses and farms use more renewable energy Simplify renewable energy projects by providing information, training, technical assistance and help finding qualified contractors. Provide financial assistance for qualified renewable energy projects.

Focus Goal 2: Market Provider Support: 

Focus Goal 2: Market Provider Support Help promote businesses that provide renewable energy products and services. Help existing providers of renewable energy products and services grow their businesses by providing customer leads and marketing assistance. Offer financial assistance to qualified providers of renewable energy products and services.

Biomass Energy: 

Biomass Energy Describes a broad array of energy products derived from plant and animal materials Renewable energy with many unique characteristics Biomass is a form of solar energy Different from other forms of solar power because it includes its own energy storage Low quality fuel because of a low energy density Generally classified as waste materials, food crops, or energy crops

Biomass Energy (cont.): 

Biomass Energy (cont.) Waste materials (Byproducts) Combustion of MSW/wood residue and methane recovery from landfills, POTWs, and manures are all active, established approaches Make use of zero-cost waste resources May be a superior environmental and economic option Food crops Primarily corn to make ethanol Constitutes large existing biomass industries

Biomass Energy (cont.): 

Biomass Energy (cont.) Energy crops Biomass resource with the greatest potential but the least development Any crop grown specifically for its high yields and suitability for conversion to energy Fast growing trees (poplars) Grasses (switch grass) Widespread energy crop use would create changes in both energy and agriculture Long-term contracts would provide financial stability to both parties

Wisconsin Biomass Status: 

Wisconsin Biomass Status Wood is the most abundant biomass resource in Wisconsin Many existing markets for wood Pulp and paper industry Raw material for paper, with bark used for fuel Wood products industry Trim/scraps/sawdust used for fuel Dairy industry Sawdust for animal bedding Landscape mulch Energy production

Utility-scale Conversion Technologies: 

Utility-scale Conversion Technologies Stoker Boilers Developed in the 1920s and 1930s Fuel burned on a grate and heat transferred to water Limited ability to switch fuels Need consistent moisture content and free of impurities Fluidized Bed Combustion Burns fuel in a bed of sand suspended by updrafts of air Reduces SOx and NOx emissions and allows a wider range of fuels Currently in commercial use for biomass More costly than stoker boilers

Utility-scale Conversion Technologies : 

Utility-scale Conversion Technologies Co-firing in existing boilers Add wood to the fuel supply Helps utilities retain customers that have waste disposal issues Sawmills and furniture manufacturers Reduces emissions Can raise efficiency of biomass conversion at lower cost Can create more maintenance costs because of slagging

Challenges to Utilities: 

Challenges to Utilities Specialized handling and firing equipment Modifications to air quality control systems Fuel receiving schedules Easier with unit trains for coal More suppliers to deal with Possible lowering of generating capacity Low Btu content of biomass Fugitive dust and odor issues Fuel flexibility and fluctuating supplies

Industrial / Commercial Technologies: 

Industrial / Commercial Technologies Wood boilers Used for process heating or space heating Kilns Heat treating of pallets In-floor radiant heating systems Pellet stoves Can utilize multiple fuels for space heating (pellets, corn, etc.) Greenhouses, restaurants, warehouses, etc.

Challenges to Industrial / Commercial: 

Challenges to Industrial / Commercial Initial capital costs Equipment sizing Responsiveness to demand Turndown Securing an adequate supply of wood Operation and maintenance issues Labor costs Fuel storage and handling Ash generation

Wood Residue: 

Wood Residue Sources Poor quality trees Branches and bark Excess material Sawdust, shavings Moisture content is important About 81% of biomass energy produced in 2000 Good use of waste material

Characterization of the Wood Heating Market: 

Characterization of the Wood Heating Market Diverse market including small commercial installations up through large industrial systems Higher natural gas prices are increasing interest in this area Natural gas prices expected to continue increasing Adequate wood/pellet supply is an ongoing issue with some larger projects

Barriers to Adoption in the Non-Residential Wood Heating Market : 

Barriers to Adoption in the Non-Residential Wood Heating Market First cost and economic issues Competing markets for wood residuals (paper industry, animal bedding, etc.) Infrastructure issues related to wood recovery (inconsistent fuel quality) Infrastructure issues related to wood supply (lack of brokers/high transportation costs/geographic distribution of wood supply) Regulatory issues (air permitting for large projects and lack of certification for smaller projects)

Focused Market Slices of the Commercial Wood Heating market: 

Focused Market Slices of the Commercial Wood Heating market Wood products companies without wood combustion systems, but with their own supply of wood Wood products companies with wood combustion systems that are in need of updated control technologies to increase system efficiency Combined heat and power projects, which could include district heating School heating projects

Case Study: St. Paul Cogeneration, LLC: 

Case Study: St. Paul Cogeneration, LLC Combined heat and power plant generates electricity and provides district heating and cooling to most of city’s downtown area Meets 80% of district heating and cooling needs Reduces reliance on coal and cut soot emissions in half Combusts 280,000 tons of urban wood residue annually, producing 25 MW of power Residue is collected by St. Paul’s Wood Recycling Center and ground to specification Unique public-private partnership

Case Study: Laurentian Energy Authority CHP: 

Case Study: Laurentian Energy Authority CHP Joint project between two separate municipal districts in Minnesota – Hibbing and Virginia Public Utilities Combined heat and power plant will sell 35 MW of biomass energy to Xcel Energy Replaces one coal plant Requires start-up of a dedicated tree farm Will use fast-growing poplars from tree farm as well as forest residues and other wood waste 300,000 dry tons per year Added benefit: creates new jobs and money for local economy

Case Study: Muscoda Protein Products and Meister Cheese: 

Case Study: Muscoda Protein Products and Meister Cheese Wood boiler installation project 400 HP boiler Project cost of $1,700,000 Focus on Energy contribution of $35,000 USDA funding of $430,000 Estimated annual savings of 600,000 therms of natural gas with a four year payback System provides process heat for cheese plant and whey drying facility

Case Study: Muscoda/Meister : 

Case Study: Muscoda/Meister

Case Study: Muscoda/Meister : 

Case Study: Muscoda/Meister

Case Study: Muscoda/Meister: 

Case Study: Muscoda/Meister

Case Study: Superior Kiln: 

Case Study: Superior Kiln Wood boiler installation project 230 HP steel fire tube boiler, low pressure steam at 15 psi Provides heat for drying dimensional lumber Project cost of $449,000 Focus on Energy contribution of $35,000 Total production of 540,000 therms Estimated annual savings of 275,000 therms of natural gas Previously had issues with inconsistent natural gas supply and were also on interruptible service

Case Study: Superior Kiln: 

Case Study: Superior Kiln

Case Study: Granite Valley: 

Case Study: Granite Valley Wood boiler installation project 250 HP boiler Project cost of $700,000 Focus on Energy contribution of $42,000 USDA funding of $179,000 Estimated annual savings of 280,000 therms of natural gas System provides process heat for wood drying

Case Study: Granite Valley: 

Case Study: Granite Valley

Case Study: Granite Valley: 

Case Study: Granite Valley

Case Study: Barron School District: 

Case Study: Barron School District Wood boiler controls upgrade Project cost of $55,000 Focus on Energy contribution of $15,000 Estimated annual savings of 75,000 therms System provides heat for elementary and high schools, hospital, medical center and nursing home

Case Study: Barron School District: 

Case Study: Barron School District

Case Studies: Cash Back Rewards: 

Case Studies: Cash Back Rewards Sunny Slope Gardens, Inc. Old Hayward Eatery and Brewpub Accurate Marine Bernhardt Farms

Case Study: Sunny Slope Gardens, Inc.: 

Case Study: Sunny Slope Gardens, Inc. Pellet stove installation project Installed 6 Breckwell Big E pellet stoves Project cost of $10,300 Focus on Energy contribution of $2,451 Will burn 25 tons of wood pellets per year, producing 4,320 therms System provides 80% of heating load for greenhouses between October and February

Case Study: Old Hayward Eatery and Brewpub: 

Case Study: Old Hayward Eatery and Brewpub

Case Study: Accurate Marine: 

Case Study: Accurate Marine

Case Study: Bernhardt Farms: 

Case Study: Bernhardt Farms

Conclusions: 

Conclusions Many biomass energy options potentially exist in Wisconsin Numerous wood biomass projects have been installed, ranging from very large to relatively small Regardless of the renewable energy technology, Wisconsin has many technical and financial resources available to assist with the project

To Learn More About Wood Biomass: 

To Learn More About Wood Biomass RENEWABLE WOOD ENERGY: UTILIZING WISCONSIN’S LARGEST ENERGY RESERVE WITC Rice Lake Conference Center Rice Lake, WI April 23-24, 2007

Questions?: 

Questions? THANK YOU