Biopower Technical Assessment: State of the Industry and Technology
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March 2003 • NREL/TP-510-33123 Biopower Technical Assessment: State of the Industry and Technology R.L. Bain and W.A. Amos National Renewable Energy Laboratory M. Downing and R.L. Perlack Oak Ridge National Laboratory National Renewable Energy Laboratory 1617 Cole Boulevard Golden, Colorado 80401-3393 NREL is a U.S. Department of Energy Laboratory Operated by Midwest Research Institute • Battelle • Bechtel Contract No. DE-AC36-99-GO10337 NREL/TP-510-33123 BIOPOWER TECHNICAL ASSESSMENT State of the Industry and the Technology March 2003 Richard L. Bain and Wade A. Amos National Renewable Energy Laboratory, Golden, Colorado Mark Downing and Robert L. Perlack Oak Ridge National Laboratory, Oak Ridge, Tennessee Prepared under Task No. BBB3.6110 NOTICE This report was prepared as an account of work sponsored by an agency of the United States government. Neither the United States government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States government or any agency thereof. Available electronically at http://www.osti.gov/bridge Available for a processing fee to U.S. Department of Energy and its contractors, in paper, from: U.S. Department of Energy Office of Scientific and Technical Information P.O. Box 62 Oak Ridge, TN 37831-0062 phone: 865.576.8401 fax: 865.576.5728 email: [email protected] Available for sale to the public, in paper, from: U.S. Department of Commerce National Technical Information Service 5285 Port Royal Road Springfield, VA 22161 phone: 800.553.6847 fax: 703.605.6900 email: [email protected] online ordering: http://www.ntis.gov/ordering.htm Printed on paper containing at least 50% wastepaper, including 20% postconsumer waste Acknowledgments A significant portion of this study is excerpted from studies previously funded by the Department of Energy. The authors wish acknowledge the efforts of the authors of these studies in performing background research and preparing the reports that are so useful in this technical assessment. Chapter Source Authors 2: Barriers “2001 EERE Strategic Program Review” Raymond Costello, DOE Paul Grabowski, DOE Other? 4: Lessons Learned “Biomass Energy Production in California: The Gregory Morris, Future Resources Case for a Biomass Policy Initiative” Associates, Inc. 4: Lessons Learned “Lessons Learned from Existing Biomass George Wiltsee, Appel Consultants, Power Plants” Inc. 5: Technology “ Renewable Energy Technology Kevin Craig, NREL Characterizations Characterizations” Kevin Comer, Antares Group 6: Environmental “Green Power Fact Sheets” Ask MM Performance 6: Environmental “ A Comparison of the Environmental Margaret Mann, NREL Performance Consequences of Power from Biomass, Coal, Pamela Spath, NREL and Natural Gas” 7: Policy “Biomass and Bioenergy in the United States” Helena Chum, NREL Ralph P. Overend, NREL 7: Policy “ Incentives, Mandates, and Government Mark Gielecki, DOE-EIA Programs for Promoting Renewable Energy” Fred Mayes, DOE-EIA Lawrence Prete, DOE-EIA -iii- CONTENTS List of Figures .....................................................................vii List of Tables .....................................................................ix Executive Summary ................................................................E-1 Chapter 1 Situation Analysis .....................................................1-1 Chapter 2 Barriers Technology Barriers ..........................................................2-1 Combustion/Cofiring .........................................................2-1 Gasification.................................................................2-2 Small Systems...............................................................2-2 Feedstock Production Harvest and Preparation .....................................2-2 Institutional .................................................................2-3 Regulatory..................................................................2-3 Financial...................................................................2-4 Infrastructural...............................................................2-5 Perceptual..................................................................2-5 Chapter 3 Feedstock Supply Biomass resources - characteristics and availability ..................................3-1 Urban Wastes.........................................................3-1 Mill residues ..........................................................3-2 Forest residues........................................................3-2 Agricultural residues ...................................................3-3 Dedicated energy crops .................................................3-4 Regional availability ..........................................................3-4 References..................................................................3-7 Chapter 4 Lessons Learned The California Biomass Energy Industry ..........................................4-1 Development of the California Biomass Energy Industry .......................4-1 The 1980s: Decade of Growth ............................................4-1 The 1990s: Maturity and Consolidation ....................................4-4 Characteristics of California’s Biomass Power Plants ..........................4-9 Fuel Use and Alternative Disposal Options For Biomass Residues in California .....4-9 Wood Processing Residues .............................................4-10 In-Forest Residues....................................................4-11 Agricultural Residues..................................................4-12 Urban Wood Residues .................................................4-13 The California Biomass Fuels Market ...........................................4-14 Biomass Fuel Market Price Trends .......................................4-16 Summary of California Situation in 2000 ..................................4-19 2002 Update on California Biomass Power Industry ..........................4-20 Lessons Learned-Existing Industry ..............................................4-25 Electricity Generation and Fuel Consumption...............................4-25 Capacity Factors......................................................4-25 -iv- Heat Rates ..........................................................4-25 Cogeneration ........................................................4-25 Fuels...............................................................4-28 Lessons Learned......................................................4-28 DOE Hawaii Project-Lessons Learned...........................................4-33 Project Chronology ...................................................4-33 Project Overview.....................................................4-34 PICHTR - Phase I ....................................................4-35 Westinghouse Electric Corporation Technology Validation Phase ...............4-37 Status..............................................................4-41 Summary of Lessons Learned ...........................................4-41 Minnesota Alfalfa Project.....................................................4-43 Summary of Lessons Learned : Minnesota Agri-Power Project.................4-44 Success Factors .............................................................4-45 References.................................................................4-50 Chapter 5 Technology Case Studies Technology Alternatives .......................................................5-2 Direct-fired Biomass..........................................................5-4 Gasification................................................................5-12 Cofiring...................................................................5-20 Case Studies ...............................................................5-29 Feed Cost...........................................................5-31 Plant Size...........................................................5-32 Capital Cost.........................................................5-32 Discount Rate ........................................................5-32 Debt Sensitivity ......................................................5-33 Carbon Allowances ...................................................5-33 Tax Credits..........................................................5-33 Steam Only..........................................................5-34 Site and Incentives Impact..............................................5-34 Capital Requirements and Required Cash Flow .............................5-34 Recommendations for Further Work......................................5-34 References.................................................................5-51 Chapter 6 Environmental Performance Air Pollution................................................................6-1 Life Cycle Analysis...........................................................6-8 System Energy Balance.................................................6-8