North Eastern and North Central New Mexico Wood Biomass Electric Generating and Biochar Production Facility
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North Eastern and North Central New Mexico Wood Biomass Electric Generating and Biochar Production Facility Feasibility Assessment and Business Model Prepared for: Energy Minerals and Natural Resources Department, Energy Conservation and Management Division Date: 12/31/2018 CONTENTS Executive Summary ..................................................................................................................................... vii 1.0 Wood Biomass Resource Assessment, North Central and North Eastern, NM ............................. 10 1.1 Site Selection .............................................................................................................................. 10 1.2 Feedstock Analysis ..................................................................................................................... 14 1.2.1 Timber Harvest Residuals ................................................................................................... 14 1.2.2 Forest Treatments and Hazardous Fuels Reductions ........................................................ 16 1.2.3 Forest Products Manufacturing Residuals .......................................................................... 17 1.2.4 Urban Wood Waste ............................................................................................................. 19 1.2.5 Electrical Transmission and Distribution Rights of Way ...................................................... 20 1.2.6 Total Available Feedstock ................................................................................................... 21 1.3 Transportation Cost Assessment ................................................................................................ 21 1.3.1 Forestry Contractors within the Local Industry .................................................................... 21 1.3.2 Forest Residues Transportation Costing Model .................................................................. 22 1.4 Impacts ........................................................................................................................................ 23 2.0 Electrical Needs in North Central and North Eastern, New Mexico ............................................... 24 2.1 Background/Overview ................................................................................................................. 24 2.2 Electric Biomass Potential in Rural Electric Cooperatives, Municipal Utilities and Investor Owned Utilities ........................................................................................................................................ 24 2.2.1 Specific Rural Electric Cooperatives ................................................................................... 2 5 2.2.2 Tri-State Generation and Transmission Association ........................................................... 25 2.2.3 Northern New Mexico Distribution Electric Cooperatives ................................................... 28 2.3 Northern New Mexico’s Municipal Utilities .................................................................................. 30 2.3.1 City of Raton/Raton Public Service ..................................................................................... 3 1 2.3.2 Los Alamos County ............................................................................................................. 31 2.4 New Mexico Investor Owned Utilities .......................................................................................... 33 2.4.1 PNM .................................................................................................................................... 33 2.4.2 Utility Consideration of Biomass; Major Obstacles ............................................................. 36 2.5 Examples of Other Biomass Energy Production in Neighboring States ..................................... 36 2.5.1 Gypsum, Colorado .............................................................................................................. 36 2.5.2 Fresno, California ................................................................................................................ 37 2.5.3 Arizona ................................................................................................................................ 38 2.6 Thermal Biomass Heating ........................................................................................................... 39 3.0 Regional Transmission Lines and Interconnection Potential .......................................................... 41 3.1 Interconnection for a Biomass Electricity Plant ........................................................................... 41 3.2 Interconnection Processes .......................................................................................................... 41 3.3 Interconnection Possibilities ........................................................................................................ 42 3.4 Distribution Lines ......................................................................................................................... 42 Page ii 3.5 Proposed New Transmission ...................................................................................................... 42 4.0 Benefits of Biomass Energy Generation as a Backup to PV Generation Installations ................... 45 4.1 Introduction .................................................................................................................................. 45 4.2 Overview of Current PV Capacity ............................................................................................... 45 4.3 Storage Capacity Needed To Meet Demand When Solar Is Not Productive ............................. 50 4.4 Biomass Energy Needed to Meet Demand when solar is not productive ................................... 50 4.5 Potential Barriers to Biomass Power Production ........................................................................ 51 5.0 Market Potential for Biochar ............................................................................................................ 53 5.1 Biochar production Cost Estimation ............................................................................................ 53 5.2 Maps showing Sandy Soil Regions ............................................................................................. 54 5.3 Biochar Properties and Applications ........................................................................................... 60 5.3.1 Production of Biochar .......................................................................................................... 60 5.3.2 Physical Properties and Characterization of Biochar .......................................................... 60 5.3.3 Chemical Properties and Characterization of Biochar ........................................................ 60 5.4 Biochar Application as Soil Amendment ..................................................................................... 61 5.4.1 Nutritional Improvements from Biochar Application ............................................................ 61 5.4.2 Water Retaining Improvements from Biochar Application .................................................. 61 5.4.3 Crop Yield Improvements from Biochar Application ........................................................... 62 5.4.4 Biochar Application Rate ..................................................................................................... 63 5.5 Analysis of biochar impacts by crop type .................................................................................... 63 5.6 Potential barriers to biochar application ...................................................................................... 66 5.7 Potential for other applications of Biochar .................................................................................. 67 5.8 Biochar Application and Transportation Cost Analysis ............................................................... 68 5.9 Recommendations ...................................................................................................................... 69 6.0 Business Model for 10 MW Biomass to Energy Facility ................................................................ 71 6.1 Biomass Power Generation ........................................................................................................ 71 6.2 Biomass Power Production Technology ..................................................................................... 73 6.2.1 Direct-fired Biochar Production ........................................................................................... 74 6.2.2 Co-firing Biochar Production ............................................................................................... 74 6.2.3 Gasification Biochar Production .......................................................................................... 74 6.2.4 Biochar Production using Modular systems ........................................................................ 74 6.3 Biomass Process Recommendation ........................................................................................... 7 5 6.3.1 Pyrolysis process ................................................................................................................ 76 6.3.2 Power generation ................................................................................................................ 76 6.3.3 Wood drying