The Opportunity of Biomass Energy:
Renewable Heating and CHP
This Webinar is brought to you by:
Biomass Thermal Energy Council (BTEC)
With the generous support of the
U.S. Forest Service
Wood Education Resource Center
3 PM ET, September 28th, 2010
“The work upon which this publication is based was funded in whole or in part through a grant awarded by the Wood Education
and Resource Center, Northeastern Area State and Private Forestry, U.S. Forest Service. This institution is an equal
opportunity provider.” 1
Quick Notes - Gibeault
Quick Notes
Two Audio Options: Streaming Audio and Dial-In.
1. Streaming Audio/Computer Speakers (Default)
2. Dial-In: Use the Audio Panel (right side of screen)
to see dial-in instructions. Call-in separately from
your telephone.
Ask questions using the Questions Panel on the
right side of your screen.
The recording of the webinar and the slides will be
available after the event. Registrants will be
notified by email.
2
I. Event Introduction - Gibeault
Presentation Outline
I. Introduction - Kyle Gibeault
II. Biomass Background – Charlie Niebling
III. Feedstocks & Fuels– T.J. Morice
IV. Biomass User Profiles – Charlie Niebling
V. Economic Impacts– William Strauss, PhD
VI. Challenges, Policy – Charlie Niebling
VII. Q & A, Next Events – Kyle Gibeault
[Full presentation will be available online,
www.biomassthermal.org/resource/webinars.asp]
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I. Event Introduction - Gibeault
Speakers
Charlie Niebling, General Manager, New England
Wood Pellet
T.J. Morice, VP of Marketing and Operations, Marth
Companies
William Strauss, PhD, President, FutureMetrics
Moderator
Kyle Gibeault, Deputy Director, Biomass Thermal
Energy Council
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I. Introducing BTEC – Gibeault
Kyle Gibeault - Moderator
Deputy Director,
Biomass Thermal Energy Council
Program Manager, Technology
Transition Corporation
5
I. Introducing BTEC - Gibeault
About BTEC – Mission & Composition
The Biomass Thermal Energy Council (BTEC) is a nonprofit
association dedicated to advancing the use of biomass for heat
and other thermal energy applications.
BTEC engages in research, education, and public advocacy for the
fast growing biomass thermal energy industry.
Formed in January 2009 by eight companies, BTEC currently has
89 members from 34 U.S. states, Canada, Austria, and Denmark
Includes landowners, fuel refiners, appliance manufacturers,
project developers, nonprofits, universities, and others
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I. Introducing BTEC - Gibeault
Current BTEC Membership
A3 Energy Partners Froling Energy Proe Power Systems
Abundant Power Fröling GmbH Public Policy Virginia
ACT Bioenergy Fuel Pellet Technologies Rainforest Alliance
Alliance for Green Heat FutureMetrics Resource Professionals Group
Alternative Heating of North America Green Clean Heat LLC Richmond Energy Associates
American Agricultural Movement Indeck Ladysmith, LLC Sandri Companies
American Wood Fibers Innovative Natural Resource Solutions Santa Energy Corporation
APEX Integrated Biomass Resources Scandtec
Bear Mountain Forest Products International Renewable Energy Technology Institute Sewall Company
Beaver Wood Energy International Silica Technologies Skanden Energy
BioHeat USA International WoodFuels Southland Bio Energy
Biomass Combustion Systems Jesse E. Lyman Pellets State of Montana Department of Natural Resources and Conservation
Biomass Commodities Corporation Krieg DeVault State University of New York
Biomass Energy Resource Center Lignetics of Virginia The Fulton Companies
Biomass Energy Works Maine Energy Systems The Gavilon Group
Biowood Energy Maine Pellet Fuels Association Twin Ports Testing, Inc.
Chip Energy Marth Vapor Locomotive Company
Clean Power Development Montana Community Development Corporation Vecoplan
Comact Equipment Inc. National Network of Forest Practitioners Vermont Wood Pellet
Control Labs New England Wood Pellet LLC Viability
Corinth Wood Pellet New Horizon Inc. Viessmann
Cousineau Forest Products Northeast Mill Services Western Ag Enterprises
Dejno's Inc Ontario Sawdust Supplies Westervelt Renewable Energy
Ecostrat Inc. Oregon Forest Industries Council (OFIC) West Oregon Wood Products
EnTec Works LLC Paraclete Bioenergy Wilson Engineering Services, PC
Enviva Materials Piney Wood Pellets WoodFuels Virginia LLC
Equustock Plum Creek Woodpellets.com
Ernst Biomass PowerStock Woodstone
Ewing Bemiss & Co. Pratt & Whitney Power Systems - Turboden Zilkha Biomass Energy
Forest Energy Corporation Price BIOStock
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I. Introducing the Sponsor -
Gibeault
Project made possible by the USDA FS WERC
BTEC awarded a grant from the USDA Forest Service’s Wood
Education and Resource Center (WERC) in June 2010 to advance
education and outreach on biomass thermal energy
The USDA Forest Service's Wood Education and Resource Center
(WERC) is located in Princeton, WV, and is administered by the
agency's Northeastern Area State and Private Forestry
organization. The Center's mission is to work with the forest
products industry toward sustainable forest products production for
the eastern hardwood forest region.
Activities on biomass thermal issues:
webinars, interviews, factsheets, online forum, and comprehensive
presentation
All questions and attendee feedback will help form future activities.
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II. Biomass Background – Niebling
Charlie Niebling
General Manager,
New England Wood Pellet
Chairman,
Biomass Thermal Energy Council
Biomass Basics – Background
on Biomass Thermal Energy
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II. Biomass Background – Niebling
What is biomass thermal energy?
The use of biomass-derived feedstocks to make thermal
energy (heat or chill) for
Space heating/cooling
District heating/cooling
Industrial process heat
Combined heat and power (CHP)
Forms of biomass used:
Chips
Pellets
Biogas derived from woody or herbaceous plant
materials
Agricultural wastes and by-products
Other biomass feedstocks 10
II. Biomass Background – Niebling
Why does it matter?
1. Thermal energy makes up 1/3 of total US energy
consumption
2. Largely ignored in federal/state energy policy
3. Thermal energy represents the most efficient
use of biomass to make energy
4. Tremendous potential to address major US energy
challenges, especially
dependence on foreign fossil energy and
rural economic development
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II. Biomass Background – Niebling
By Fuel Type By Use Thermal/Other Primary
40.57 40 By Segment
32.4
26.8
Residential
23.14 22.37 20%
' '
Commercial
' 12%
8.2
6.38 Industrial
68%
Petroleum Coal Gas Nuclear Renewable Trans. Elec. Thermal/
Other Primary
Other
Renewable renewable Source: USDOE Energy Information
15%
Energy Hydropower
Administration
Consumption 44%
Biomass '
41%
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II. Biomass Background – Niebling
Biomass thermal is the only unsubsidized energy
Breakout of US Energy Sources, 2008
Subsidized Subsidized
No subsidies in the U.S.
Thermal
Biomass
Electric
Biomass
Subsidized
Ethanol ~5% of Renewables
Effectively (Broken out separately by EIA)
Subsidized “Clean Coal”
Is Subsidized
Sources:
Michael Pacheco, Director, National Bioenergy Center, NREL; Renewable Energy Trends 2004 data;
Energy Information Administration, August 2005. Note: Total U.S. Energy Supply was 100.278 QBtu;
Energy Information Administration, August 2005.
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II. Biomass Background – Niebling
Biomass thermal is the most efficient use
More info? –
BTEC Fact Sheets
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III. Feedstock & Fuels – Morice
T.J. Morice
VP of Marketing and Operations,
Marth Companies
Vice Chairman,
Biomass Thermal Energy Council
Biomass Basics – Feedstock
and Fuels
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III. Feedstocks & Fuels – Morice
Geographic Variances for Renewables
Especially Biomass Feedstocks
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III. Feedstocks & Fuels – Morice
Forest Resources
Primary
Logging residues from conventional harvest
operations and residues from forest management
and land clearing operations
Removal of excess biomass (fuel treatments) and
other forestlands
Fuelwood extracted from forestlands
Secondary
Primary wood processing mill residues
Secondary wood processing mill residues
Pulping liquors (black liquor)
Tertiary
Urban wood residues---construction and demolition
debris, tree trimming, packaging wastes and
consumer durables
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III. Feedstocks & Fuels – Morice
Agricultural Resources
Primary
Crop residues from major crops—corn stove,
small grain straw and others
Grains (corn and soybeans) used for ethanol,
biodiesel and bioproducts
Perennial grasses
Perennial woody crops
Secondary
Animal manure
Food/feed processing residues
Tertiary
MSW and post-consumer residues and landfill
gases
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III. Feedstocks & Fuels – Morice
Supply Processing Variations
Credit for Source:
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III. Feedstocks & Fuels – Morice
Fuel Variations
Understanding of the complexities of varied biomass fuel variations
aren’t new
Pellets
80 – 95 %
20
III. Feedstocks & Fuels – Morice
Supply Chain Variances
Vast differences even within similar feed stocks, costs
and impacts
Credit for Source:
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III. Feedstocks & Fuels – Morice
Competing Markets & Technologies for Forest Resources
Pellets
Briquettes
Logs
Chips/Slash
Erosion Meat
Control Smoking
Wood
Flour
22
III. Feedstocks & Fuels – Morice
Competing Markets & Technologies for Agricultural Resources
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III. Feedstocks & Fuels – Morice
Fuel Characteristics & Values
Average Heat Content of Selected Biomass Fuels
Fuel Type Heat Content Units
Agricultural Byproducts 8.248 Million Btu/Short Ton
Biodiesel 5.359 Million Btu/Barrel
Black Liquor 11.758 Million Btu/Short Ton
Digester Gas 0.619 Million Btu/Thousand Cubic Feet
Ethanol 3.563 Million Btu/Barrel
Landfill Gas 0.490 Million Btu/Thousand Cubic Feet
MSW Biogenic 9.696 Million Btu/Short Ton
Methane 0.841 Million Btu/Thousand Cubic Feet
Paper Pellets 13.029 Million Btu/Short Ton
Peat 8.000 Million Btu/Short Ton
Railroad Ties 12.618 Million Btu/Short Ton
Sludge Waste 7.512 Million Btu/Short Ton
Sludge Wood 10.071 Million Btu/Short Ton
Solid Byproducts 25.830 Million Btu/Short Ton
Spent Sulfite Liquor 12.720 Million Btu/Short Ton
Utility Poles 12.500 Million Btu/Short Ton
Waste Alcohol 3.800 Million Btu/Barrel
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IV. Biomass Profiles – Niebling
Charlie Niebling
Biomass User Profiles
–
Applications for assorted
biomass end users
25
IV. Biomass Profiles – Niebling
Residential Scale
Primarily solid wood and
pellets
Stoves, boilers, furnaces
26
IV. Biomass Profiles – Niebling
Commercial-Scale
Office buildings,
hospitals, shopping
malls, apartment
complexes
Pellets on smaller
systems; chips on
larger systems
27
IV. Biomass Profiles – Niebling
Industrial-Scale
Large scale heating (>5 MMBTU)
Industrial process heat, e.g. food
processing
Combined heat and power (CHP)
production
28
V. Economic Impacts – Strauss
William Strauss
President and Founder,
FutureMetrics
Director,
Maine Energy Systems
Economic Impacts and Benefits
of Biomass Thermal Energy
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V. Economic Impacts - Strauss
30
V. Economic Impacts - Strauss
Fossil Fuels, “Long Run” View
Source: IEA 31
V. Economic Impacts - Strauss
US Petroleum Production Peaked in 1988
32
V. Economic Impacts - Strauss
Fuel Prices and Job Losses in New England
If #2 heating fuel goes from $2.75/gallon to $4.50/gallon, the
increase in “exported” money leads to massive job losses.
33
V. Economic Impacts - Strauss
Sustainable Biomass Supply
What if homes and businesses convert to biomass for heating?
34
V. Economic Impacts - Strauss
Economic Benefits
Two main economic benefits from converting biomass to
thermal energy:
New or sustained jobs (direct, indirect, and induced)
created from the fuel production and delivery
infrastructure;
New jobs created due to the money spent on fuel
remaining in the regional (mainly rural) economy.
35
V. Economic Impacts - Strauss
Economic Impacts
New or Sustained Direct, Indirect, and Induced Jobs
(and their total annual income)
Multiplier
Crop Biomass Total Biomass Income at Indirect and
Forest Biomass Production Income at Total ANNUAL
Production per Production per Direct Jobs $37,000 per Induced
per Year $37,000 per Year - Income
Year Year Year per job Jobs
Tax Rate 35%
CT 100,000 354,000 454,000 776 $ 28,725,000 609 $ 7,888,000 $ 36,613,000
MA 110,000 498,000 608,000 1,040 $ 38,468,000 931 $ 12,058,000 $ 50,526,000
ME 3,190,000 450,000 3,640,000 6,224 $ 230,303,000 6,261 $ 81,084,000 $ 311,387,000
NH 400,000 294,000 694,000 1,187 $ 43,909,000 1,141 $ 14,778,000 $ 58,687,000
NY 3,330,000 8,766,000 12,096,000 20,684 $ 765,314,000 18,232 $ 236,110,000 $ 1,001,424,000
RI 10,000 156,000 166,000 284 $ 10,503,000 211 $ 2,736,000 $ 13,239,000
VT 300,000 1,134,000 1,434,000 2,452 $ 90,729,000 3,041 $ 39,385,000 $ 130,114,000
TOTAL 7,440,000 11,652,000 19,092,000 32,647 $1,207,951,000 30,428 $ 394,039,000 $ 1,601,990,000
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V. Economic Impacts - Strauss
Job Creation
Case Study: Jobs created by the fuel expenditures remaining in the North East
regional economy by 2025
Current Prices 2025 Prices
Amount that Total Jobs Spending on Amount that
Spending on Heating Oil Would be Spent on Due to Heating Oil and Would be Spent Total Jobs in 2025
Annual Savings
and Propane Equivalent at Pellet Fuel at Annual Savings Heating Propane on Pellet Fuel at Due to Heating
(in 2025 dollars)
$2.75/gallon $265/ton for Cost Equivalent at $459/ton for Cost Savings
equivalent heat Savings $5.43/gallon equivalent heat
CT $ 406,780,000 $ 314,502,000 $ 92,278,000 3,052 $ 803,273,711 $ 532,279,800 $ 270,994,000 8,964
MA $ 584,155,000 $ 451,639,500 $ 132,515,500 4,684 $1,153,538,411 $ 764,378,550 $ 389,160,000 13,754
ME $ 262,515,000 $ 202,963,500 $ 59,551,500 2,484 $ 518,391,756 $ 343,506,150 $ 174,886,000 7,295
NH $ 196,295,000 $ 151,765,500 $ 44,529,500 1,734 $ 387,626,268 $ 256,855,950 $ 130,770,000 5,092
NY $ 1,617,660,000 $ 1,250,694,000 $ 366,966,000 12,539 $3,194,414,062 $ 2,116,740,600 $ 1,077,673,000 36,823
RI $ 104,060,000 $ 80,454,000 $ 23,606,000 812 $ 205,488,624 $ 136,164,600 $ 69,324,000 2,384
VT $ 104,060,000 $ 80,454,000 $ 23,606,000 963 $ 205,488,624 $ 136,164,600 $ 69,324,000 2,829
$ 743,052,500 26,268 $ 2,182,131,000 77,141
Total Permanent ANNUAL Total Permanent
Income Jobs in 2025
CT $ 324,020,541 10,349
Total Permanent Annual MA
ME
$
$
462,336,713
625,867,221
15,725
19,780
NH $ 215,766,274 7,420
Income and Jobs by 2025 NY
RI
$
$
2,528,033,543
88,498,019
75,740
2,879
VT $ 257,767,868 8,322
$ 4,502,290,180 140,216
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VI. Looking Ahead – Niebling
Charlie Niebling
Looking Ahead
–
Developments in the
Biomass Thermal Industry
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VI. Looking Ahead - Niebling
Energy Use - Today
39
VI. Looking Ahead - Niebling
Energy Use - Tomorrow
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VI. Looking Ahead - Niebling
Moving Forward – Industry Challenges 1/2
Getting organized as an industry, still small and
fragmented
Building effective advocacy and outreach at
regional/state level – continuing work in DC
Research and analysis – e.g. potential impact of
biomass thermal to address America’s energy challenges
– strategic vision to realize this potential
Competency in manufacturing – fuel, heating
technology
41
VI. Looking Ahead - Niebling
Moving Forward – Industry Challenges 2/2
Risk capital to build market– e.g. bulk delivery of fuels
Air emissions – major regulatory attention on biomass
combustion
Sustainability – increasing attention on how/whether
US biomass supply can support growing demand for
energy
How to compete when oil/gas stay “cheap”?
42
VI. Looking Ahead - Niebling
Moving Forward – Key Federal/Policy Issues 1/2
Elevate profile of biomass thermal with key
federal agencies: USDOE, USDA, EPA
Parity with other renewables in federal
treatment: Passage of investment tax credits,
production credits (i.e. TREEA)
Carbon neutrality and biomass – make sure
biomass retains carbon advantages over fossil fuels
in any GHG regulatory scheme
43
VI. Looking Ahead - Niebling
Moving Forward – Key Federal/Policy Issues 2/2
Develop research and analysis agenda working
with: USDOE, USDA, EPA
State policy – make sure biomass thermal treated
equitably with biomass electric/cellulosic ethanol
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VII. Discussion - Gibeault
Q&A
Ask questions using the Questions Panel on the right side of
your screen.
All questions and comments will be recorded
anonymously and submitted to our questions forum or
used for our interview series.
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VII. Webinar Topics - Gibeault
Additional Webinar Topics in 2010 & 2011
Overview of policy and regulatory issues related to
the biomass thermal industry
Benefits and challenges to using biomass for
residential heating
Biomass thermal and environmental markets
Biomass thermal energy and air quality: Overview of
issues and concerns, existing technologies and those
under development
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VII. Upcoming Events - Gibeault
Upcoming Events
Congressional Briefing on Biomass Thermal
Energy on Wednesday, October 6, 2010, 10:30 AM,
titled:
“Heating and Cooling with Sustainable Biomass Energy”
at the House Energy & Commerce Committee Room
(TBD)
BTEC Membership Meeting – November 16/17,
2010 in Washington, D.C.
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VII. More Information - Gibeault
More Information
This Webinar will be available on
www.biomassthermal.org/resource by October 1,
2010.
Sign up to receive announcements on future
webinars, factsheets, audio interviews, and BTEC
news at
www.biomassthermal.com/mailingForm.asp
Questions or comments on BTEC’s WERC
resources?
Email Joseph Seymour, BTEC Program Associate,
[email protected].
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BTEC Board of Directors
Thank you!
If you want to learn more about the biomass thermal
industry, BTEC, or membership, visit
www.biomassthermal.org
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