Bioenergy

 –  An  Introduc1on  
 TSS  Consultants  
•  TSS  established  in  1986  –  principal  focus  was  
biomass  to  power  
•  Con1nue  to  assist  project  developers,  government  
agencies,  u1li1es,  and  tribal  en11es  with  bioenergy  
development  and  projects  –  biopower,  biogas,  
biofuels,  and  bioproducts  
 
 What  is  Biomass?    

•  Biomass  –  any  solid,  

nonhazardous,  cellulosic  
material  derived  from:    
forest-­‐related  resources,  
solid  wood  wastes,  
agricultural  wastes,  and  
plants  grown  exclusively  as  
a  fuel.*  

*based  on  the  defini1on  of    

biomass  in  the  2005  Energy  Act  

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 Benefits of Biomass
•  Renewable energy, transportation fuels, and bio-based products
•  Domestic source of energy
•  Provides baseload electricity
•  Healthy forests/reduce wildfire danger
•  Turning a waste into a product
•  Air quality benefits
•  Greenhouse gas reduction
•  Rural economic development
•  Promoted by federal, state, and even local policy

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Why  are  
healthy    
forests  
important?  
 Forest  Thinning  and  Bioenergy  
•  Wildfire  hazard  is  reduced  by  removing  excess  
biomass  fuel    
•  Power  genera1on  technology  in  small,  distributed  
system  has  advanced  
•  Such  power  plants  provide  a  place  to  take  the  
hazardous  fuels  (rather  than  pile/burn)  
•  However,  with  this  poten1al  opportuni1es  come  the  
challenge  of  costs  
Posi1ve  Effects  of  Fuel  Treatments  

Thinned  

Fire  
Un-­‐thinned  

Cone  Wilfire,  Lassen  Na1onal  Forest,  September  2002    

 Woody  Biomass  Energy  Produc1on  -­‐  Reduces  
Overall  Emissions  from  Open  Burning  

Controlled  Facility  
Combus1on    1-­‐5  lbs  
of  pollutant  
released  to  
atmosphere  per  ton  
of  fuel  

Uncontrolled  Open  
Combus1on    20-­‐200  
lbs  of  pollutant    
released  to  
atmosphere  per  ton  
of  fuel  

Graphic  courtesy  of  Placer  County  Air  Pollu1on  Control  District  

 New  Influencing  Factors  Effec1ng    
 Bioenergy  Facili1es  

•  Growing  waste  disposal  issues/opportuni1es  

•  Renewable  energy  gov’t  mandates/incen1ves  
•  New  financial  and  owner  groups  looking  for  
renewable  energy  business  deals  
•  Fossil  fuel  pricing  –  abrupt  current  and  future  price  
increases  
•  Accelera1on  in  the  development  of  new  biomass  to  
energy  conversion  technologies  
•  Greenhouse  gas  reduc1on  opportuni1es  
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 CA  Bioenergy  Ac1on  Plan  
•  The  2012  Bioenergy  Ac/on  Plan  is  a  coordinated  California  state  agency  approach  
to  addressing  challenges  and  maximizing  opportuni1es  for  the  development  of  
bioenergy  projects  that  promote  economic  development  and  provide  the  greatest  
environmental  benefit  

•  The  plan  outlines  California  state  agency  ac1ons  that:    

1)  S1mulate  cost-­‐effec1ve  u1liza1on  of  the  California’s  diverse  biomass  
resources  for  conversion  to  “low-­‐carbon”  biofuels,  biogas,  and  renewable  
electricity;    
2)  Increase  research,  development  and  demonstra1on  of  bioenergy  toward  
commercializing  new  technologies;  
3)  Streamline  the  regulatory  and  permigng  processes;  and    
4)  Quan1fy  and  mone1ze  the  benefits  of  bioenergy.    
 SB  1122  
•  Enacted  in  2012  
•  Requires  250  megawaks  of  biomass  power  
procurement:  
 -­‐  110  megawaks  from  wastewater  treatment,  organic    waste  
       diversion,  food  processing,  and  codiges1on  
 -­‐  90  megawaks  from  dairies  and  agricultural  waste  
 -­‐  50  megawa6s  from  sustainable  forest-­‐sourced  biomass  
•  Rules  being  developed  at  CPUC  under  the  Renewable  
Market  Adjus1ng  Tariff    (Re-­‐MAT)  proceeding  
Reducing the Carbon Impact

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 Carbon  “Neutral”  
(a  simple  approach)  

•  Biomass  absorbs  carbon  

dioxide  during  growth  of  
wood  and  green  materials,  
and  emits  it  during  
conversion    
•  It  recycles  the  carbon  and  
does  not  add  to  the  
greenhouse  effect    
•  It  displaces  fossil  fuel  

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 Woody  Biomass  U1liza1on  
A  variety  of  value-­‐added  end  uses  have  evolved  
over  1me  –  Some  are  commercially  proven  and  
some  are  s1ll  in  the  RD  &  D  Phases  

•  Lumber  products,  composite  panels,  pulp  

•   Soil  amendments    
•   Landscape/landfill  cover  
•   Biomass  power    
•   Bio-­‐based  products  (plas1cs,  solvents,  etc.)  
•   Biofuels  (ethanol,  renewable  diesel)  

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Using  Biomass  

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Bioenergy  Power  and  Fuels  

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 Technology  Evalua1on  &  Selec1on  
•  Search  for  most  appropriate  technology  considering  
project  loca1on  and  biomass  supply  
ü  Ability  to  convert  local  supply  into  heat,  power,and/or  
transporta1on  fuels  
ü  Must  meet  local  permigng  specifica1ons  

•  Technology  should  be  proven  

ü  Operates  efficiently  on  available  biomass  supply  
ü  Operates  cleanly  on  available  biomass  supply  
ü  Appropriate  for  site  and  local/regional  resources  
 Biopower  –  a.k.a  
Bioelectricity  

Pellets    

Wood  Chips  
 Gasifica1on    v.    Combus1on  
•  Gaseous    fuel  more  versa1le   •  Small  scale  thermal  use  very  
than  solid  fuel     well  commercialized  
•  Lower  emissions  (air  and   (hundreds  of  vendors)  
water)   •  However,  the  integra1on  of  
•  Less  expensive  labor  needed   electricity  genera1on  (via  
at  facility   steam  cycle)  is  very  limited  
•  Produces  bio-­‐char,  an  added   on  the  small-­‐scale.  
value  product   •  Higher  air  and  water  
•  However,  syngas  cleanup  is   emissions,  as  well  as  higher  
s1ll  an  issue…   water  supply  needs.  
Combus1on  Technology  
Chiptec  
Advanced  Recycling  
 AESI  
Uniconfort  

Biotec  

Global  
Hurst  
Solagen  
 Gasifica1on  
 Gasifica1on  converts  biomass  to  a  
combus1ble  gas  (a.k.a.  syngas)  
Reliable  Renewables  
(Biogen)  
Phoenix  Energy  
(Ankur)  
Nexterra  
Radian  Bioenergy  
West  Biofuels  
PHG  
All  Power  Labs  
 More  Energy  
Conversion  Technologies  
 Biomass  Thermal  
•  Can  be  part  of  biopower  project  –  using  waste  
heat  (combinded  heat  and  power)  
ü Improve  efficiency  
ü Improve  economics  
 Biomass  Thermal  
•  Can  be  stand  alone  for  space  and  process  heat  
in  lieu  of  more  expensive  fossil  fuels  
 The  Unique  Role  of  Biomass  
 in  Transpora1on  Fuels  
The growing need for sustainable
electric power can be met by other
renewables, but…

…our demand for carbon-based

liquid fuels and chemicals can only be
met by biomass
 Biofuels  
•  Cellulose  to  biofuels  
is  coming  –  facili1es  
are  under  
construc1on  and  
beginning  to  produce  
fuel    
•  Transporta1on  fuel  
diversity  and  security  
•  Poten1al  value-­‐
added  use  for  forest  
biomass    
 Three  Primary  Pathways  
 to  Fuels  

è  A  potential  fourth  pathway  is  to  Renewable  CNG  

 Types  of  Biofuels  
•  Ethanol  
•  Renewable  Diesel  and  Gasoline  (“Drop-­‐in  
Fuels”)  
•  Bio-­‐0il  (needs  upgrade)  
•  Biomethane  (Renewable  CNG)  
•  Butanol  
•  Methanol  
•  Dimethyl  Ether  (DME)  
Biochemical  Technology  
 Thermochemical  Processes  
•  Fast  Pyrolysis  (Bio-­‐oil)  
•  Gasifica1on  (Syngas)  
•  Plasma  Gasifica1on  (Syngas)  
•  R&D  Needs  
ü  Syngas  cleanup  
ü  Cataly1c  conversion  to  liquid  fuels  
ü  Bio-­‐oil  stability  
Fast  Pyrolysis  and  Bio-­‐Oil  

Source: “Biomass Fast Pyrolysis” A.V. Bridgwater, 2004

 The  Uniqueness  of  Bio-­‐Oil  

Source:    “Biomass  Fast  Pyrolysis”    A.V.  Bridgwater,  2004  

Forest  Biomass-­‐Based  Biofuels  
•  Benefits  
ü  Economic  s1mula1on  -­‐  Poten1al  long-­‐term  market  for  forest  
biomass  waste  
ü  Various  environmental  benefits  –  greatly  reduced  carbon  
emissions,  improved  air  quality,  improved  forest  health  
ü  Renewability  
ü  Energy  security  
ü  Poten1al  for  less  expensive  fuel  (in  the  future)  
 Forest  Biomass-­‐Based  Biofuels  
•  Drawbacks  
ü  Current  higher  costs  of  feedstock  from  forests  
ü  Biofuel  produc1on  facili1es  may  need  to  be  large  with  significant  ini1al  
capital  costs  
ü  Need  for  extensive  infrastructure  to  supply  large  facility  
ü  Lower  energy  output  for  current  principal  biofuels    
Even  More  Energy  Conversion  
Technologies  
 Torrefac1on  
•  Process  
ü  Thermochemical  treatment,  similar  to  roas1ng  (pyrolysis)  
ü  Separates  water,  some  VOCs,  &  hemicellulose  in  woody  
biomass,  leaving  cellulose  &  lignin  at  200-­‐300°C  
ü  Produces  a  carbonaceous  residue,  lignin  when  warm  acts  as  a  
binder  during  pelle1za1on  (when  applicable)  
ü  Results    yield  66%-­‐75%  of  the  original  mass  
 Torrefaction  
•  Benefits  
ü  Higher  Energy  Content  (per  unit  volume)  
ü  Lower  Moisture  Content  
ü  Makes  biomass  hydrophobic  
ü  Lower  Transport  Costs  
ü  Outdoor  storage  
ü  Negligible  decomposi1on  or  mold  
ü  Longer  life  without  fuel  degrada1on  
ü  Smoke  producing  compound  removed  
ü  Homogeneous  fuel  when  pelle1zed  
ü  Higher  lignin  frac1on  than  green  wood,  yielding  a  stronger  pellet  

Price  range:  $70  to  $110  per  ton  

Primary  market:  Cofiring  w/coal,  mostly  Europe      
 Torrefaction  

•  Drawbacks  
ü  Low  Volume  enhancement  
ü  10%  loss  of  original  energy  content  
ü  All  ash  components  are  s1ll  present  
ü  Addi1onal  processing  adds  cost  
ü  Limited  commercial  opera1ons  in  U.S.  
ü  Limited  use  in  U.S.    
 
 Biochar  
•  Process  
ü  Thermochemical  treatment,  developed  through  gasifica1on  
ü  Separates  water,  VOCs,  &  hemicellulose  in  woody  biomass.  
 Also  breaks  the  cellulosic  structure  of  the  wood  at  
 700-­‐1000°C  
ü  Produces  a  carbonaceous  residue  
 Biochar  can  be  between  75%-­‐85%  fixed  carbon  
ü  Results    yield  7%-­‐20%  of  the  original  mass    
 Biochar  
•  Benefits  
ü  High  fixed  carbon  content  makes  it  ideal  for  soil  amendment  
 Retains  about  50%  of  the  total  carbon  in  15%  of  the  mass  
ü  Moisture  Content  is  effec1vely  0%.  
 Makes  biomass  hydrophobic  
 Lower  transport  costs  
 Outdoor  storage  
ü  Negligible  decomposi1on  or  mold  
 Longer  life  without  fuel  degrada1on  
ü  Can  be  a  byproduct  of  syngas  produc1on  

Price  range:  $500  to  $4,500  per  ton  

Primary  market:    Soil  amendment      
 Biochar  

•  Drawbacks  
ü  When  biochar  is  the  primary  product,  the  yield  per  unit  input  is  
very  low,  for  1  ton  of  biochar,  a  gasifier  must  consume  5-­‐10  tons  of  
wood  feedstock  –  syngas  produced  and  must  be  flared  if  not  used  
for  energy  source  
ü  Expensive  to  process  biochar  into  a  combus1ble  form,  biochar  is  
typically  crushed  through  the  gasifica1on  process  (by  screw  
augurs)  
Three  Major  Components  For  a  
Viable  Bioenergy  Project  
•  Supply  

•  Market  

•  Financing  

54
 Principal  Components  of    
Bioenergy  Project  
•  Resource  Assessment  

•  Si1ng  and  Environmental  

•  Technology  Selec1on  

•  Project  Economics/Financial  Analysis  

•  Design  and  Construct  

Biomass  Resource  Assessment  –  
What  is  necessary  to  know?  
•  Sustainable  long  term  supply  located  within  close  
proximity  (<  50  miles)  
•  Economically  available  
•  Environmentally  available  
•  Meets  quality  specifica1ons  
•  Available  in  quan11es  and  from  diverse  sources  that  
support  project  financing  
ü  Minimum  10  year  supply,  70%  under  contract  
ü  At  least  2.5  –  3  1mes  facility  usage  (fuel  supply  coverage  ra1o    
Biomass  Resource  Assessment  –  Doing  
the  Assessment  
•  Assess  available  resources  
within  a  physical  and  economic  
boundary  
•  Begin  with  available  data  and  
informa1on  
•  Interview  poten1al  sources  and  
others  knowledgeable  of  local  
and  regional  biomass  resources  
•  Scaling  the  poten1al  facility  
Resource  Assessment  Mapping  
Poten1al  Environmental  Regulatory  
Permigng  and  Si1ng  Issues  
•       Air  Quality  
•     Water    Use  &    Discharge  
•       Land  Use    
•       Transporta1on  
•       Biological  Resources  
•       Noise  
•       Cultural  Resources  
•       Visual/Aesthe1cs  
 Air  Quality  Permigng  for    
Biomass  Power  
•  Principal  air  pollutants  of  concern:  
ü  NOx  (ozone  precusor)  
ü  PM  
ü  VOC  (ozone  precusor)  
ü  CO  
ü  HAPs  (par1cularly  HCl)  

•  Size  of  plant  and  associated  emissions  

cri1cal  
 Which  one  are  you  building?  
This  one?   or  this  one?  
   

•  Minor Source
or

•  Minor Source
Water  Quality  Permigng  for  Biomass  
Power  
•     Water  Use  

•     Water  and  Wastewater  Discharge  

ü      Non-­‐contact  cooling  water  

ü     Waste  water    

•     Storm  Water  
ü       Construc1on  

ü     Opera1on  

ü     Storm  Water  Pollu1on  Preven1on  Plan  

 Land  Use  Permigng  for    
Biomass  Power  

•  Si1ng  and  Land  Use  

•  Zoning  
•  Condi1onal  or  Special  Use  Permits  
•  Community  Acceptance  
•  California  Environmental  Quality  Act  
 Land  Use  Permits  &  Zoning  
•  County  or  City  Planning/Community  
Development  Department  
 
•  Zoning  must  be  Industrial  (or  need  for  zoning  
change)  
 
•  Condi1onal  Use  Permits  usually  needed  
 CEQA!  
•   CEQA  –  The  California  Environmental    
 Quality  Act  
•     Purpose  –  to  inform  the  public  of  
 environmental  decisions  by  CA  agencies        
 (such  as  approving  permits)  
•     Public  process  driven  
•     For  bioenergy  facili1es  usually  led  by    land  
 use  or  air  quality  agencies  
•     Not  generally  applicable  on  tribal  land  
 Basic  CEQA  Components  
•  Environmental  Informa1on  Form  
•  Environmental  Checklist  &  Ini1al  Study  
•  CEQA  Determina1on  
ü  Exempted  
ü  Nega1ve  Declara1on  
ü  Mi1gated  Neg  Dec  
ü  Focused  EIR  
ü  Full  EIR  
 NEPA  –  “CEQA  Lite”  
•  Used  for  federal  projects  (ini1a1ng,  funding,  
or  approval)    
•  Three  levels  of  documenta1on  depending  on  
complexity  and  impacts  
ü         Categorical  Exclusion  
ü         Environmental  Assessment    
 Which  may  lead  to  a  FONSI  or…  

ü         Environmental  Impact  Statement  

 
Other  Poten1al  Environmental  Issues  

•       Transporta1on  
•       Biological  Resources  
•       Noise  
•       Cultural  Resources  
•       Visual/Aesthe1cs  
 Regulatory  Rapport  

•  Framing  the  biomass  project  and  its  

posi1ve  akributes  
•  Understanding  the  system  and  the  
regulatory  necessi1es  
•  Pre-­‐applica1on  discussions  
•  Developing  permigng  &  compliance  
strategies  
 
California  air  quality    
as  an  example  
 CA  Air  Quality  Permigng  

•  High  order  of  complexity  due  to:  

ü  Air quality constraints

ü  35 separate air districts
ü  Voluminous regulations at state and district levels
 Air  Quality  Constraints  

•  Many  of  the  CA  Air  Districts  are  in  non-­‐akainment  

for  NOx  and  PM    
•  Akainment  v.  Non-­‐akainment  

•  Emissions  controls  par1cularly  important  in  CA  

•  Need  for  offset  emissions  –  are  they  available  and  

at  what  cost?  
 U.S.  Dept.  of  
Redundancy  
Department  

Federal  &  Tribal  

Federal  Agencies/Tribal  En11es  vs.  
State  and  Local  Control  
 
•  Federal  Land  Management  Agencies  
•     Environmental  Protec1on  Agency  
•     May  use  local/state  standards  
•     Tribal  Environmental  Departments  
 Project  Economics  
•  Sustainable  and  economical  fuel  supply  
ü  Fuel/feedstock  supply  typically  represents  the  highest  variable  
cost  for  a  biomass  facility  

•  Exis1ng  incen1ves  
ü  Produc1on  Tax  Credits  
ü  Business  Energy  Tax  Credits  
ü  Local  incen1ves  –  enterprise  zone  

•  Markets  for  power,  heat,  fuels,  and  byproducts  

ü  Market  support  jus1fies  capital  investment  

•  Return  on  investment    

ü  Return  on  Investment  (ROI)  of  20%+  

75
 TSS  Financial  Analysis  
Components  &  Assump1ons  
•  System  variables  –  amount  of  electricity,  capacity  
•  Economic  variables  –  heat  sales,  biochar  sales  
•  Biomass  facility  parameters  –  heat  off  take  
•  Biomass  feedstock  –  hea1ng  value,  feedstock  cost  (very  important)  
•  Expenses  –  capex  and  O&M  
•  Taxes  and  incen1ves  
•  Financing  –  type  and  cost,  ROI  needed  
 
Financial  analysis  results  in  the  price  of  electricity  needed  
 The  Challenges  
•  High  cost  of  feedstock  (collec1on,  processing  and  transport).  
•  No  ability  to  pass  through  increased  cost  of  labor/diesel  fuel  
to  PPA  
•  Financial  markets  are  hesitant  to  support  early  phase  
technologies  (gasifica1on)    
•  Not  all  stakeholders  (e.g.,  CBD)  are  on  board  
•  Small  scale  biopower  economies  of  scale  
 
ALL  OF  THE  ABOVE  TRANSLATE  INTO  SIGNIFICANT  COSTS  
 
 Biomass  Project  Funding  
 
•  Grants  
•  Low  cost  loans  and  loan  guarantees  
•  Private  equity  
•  Various  combina1ons  of  the  above  
 
Frederick  Tornatore  
Chief  Technology  Officer  
TSS  Consultants  
fatoxic  @tssconsultants.com