White Earth Biomass/Biogas Feasibility Study

DOE Project Final Report White Earth Biomass/Biogas Feasibility Study White Earth Nation DOE Tribal Energy Program Grant EE0005635 March 12, 2015 Contact: Michael Triplett, Planner, White Earth Nation, P.O. Box 418, White Earth, MN 56591, 218.983.3285 ext. 5906, [email protected] 1 Disclaimer This report was prepared as an account of work sponsored by an agency of the United States Government and the White Earth Nation. Neither the United States Government, nor the White Earth Nation, nor any agency thereof, nor any of their employees, makes any warranty, expressed 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, the White Earth Nation, 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. 2 Executive Summary The White Earth Nation seeks to potentially integrate biomass into the fuel mix for the tribal casino’s hot water boilers, off-setting expensive fuel oil and propane and reducing environmental emissions from burning petroleum- based fuels. The feasibility study looked at the technical and economic feasibility of biogas production and biomass to electric energy conversion to supply the large tribal casino campus. Early research found that the biogas production opportunity was not viable for the site and in terms of feedstock volume and that biomass to electric power could not be competitive with the low electric utility rates afforded the casino facility. The study did find adequate biomass resources and that biomass could technically and economically replace 60-70 percent of the existing fuel oil and propane consumption used to fire the facility hot water boilers. Project Overview The White Earth Nation owns and operates a tribal casino, hotel, conference facility on the reservation in the Mahnomen community that employees a significant number of tribal members and other residents of the tribal reservation and adjacent communities. The initial casino/bingo facility was built in the early 1990’s and then a few years later the event center and hotel were added. Two large fuel oil- fired hot water boilers provide hot water and heat the casino and ancillary spaces and two large propane fired hot water boilers provide hot water and heat the Event Center. These systems are very well maintained but are nearing 20 years in age. With the high annual cost of fuel oil and propane the tribal leadership desired to look at how biomass fuel could be integrated into the facility being more “green” and saving substantial money. Objectives 1) Attain energy self-sufficiency through the use of indigenous biomass resources; 2) Fulfill the strong Tribal commitment to stewardship of the land by utilizing waste biomass material generated as a byproduct of forest, agricultural and waste disposal operations; and 3) Provide enhanced employment opportunities on the reservation. Description of Activities Performed A consultant was engaged to look at the opportunity for integrating biomass into the fuel mix for the casino facility, both in terms of the heating load and what the opportunities might be for biomass to energy in producing electric energy for consumption or resale at the casino or within the Mahnomen community. Task 1: Pre-Work Conference. The purpose of the pre-work meeting is to initiate the feasibility study by meeting with key Tribal staff to review the project need and approach, scope of work tasks, project schedule, recent studies/assessments in the NW Minnesota region, review current power and thermal energy technologies, and share key contact information. Pre-Work Conference was completed on June 11, 2012. 3 Task 2: Tribal Energy Load Assessment. Utilize utility, and propane/fuel oil invoices for previous five years to assess real time energy loads at the casino, hotel and other targeted Tribal buildings. Confirm daily peak power and fossil fuel usage. Energy load assessment task was completed and the assessment document delivered on July 19, 2012. Task 3: Feedstock Availability and Cost Assessment. Conduct an assessment of potential biomass feedstocks available from forest management, agricultural and waste management activities conducted in the region tributary to Mahnomen, MN. Historic forestry, agriculture and waste management trends and activities will be analyzed to confirm actual availability and costs to collect, process and transport feedstocks. Competition analysis will be conducted to confirm extending market demand for biomass feedstocks in the region. A feedstock availability and pricing forecast will be provided. Future feedstock supply and risks will be addressed. Feedstock availability and cost assessment task completed and assessment document delivered on August 22, 2012. Task 4: Conversion Technology Review and Selection. Findings from the Tribal energy load and feedstock assessments will be used to conduct a combined heat and power technology review to match feedstock availability/characteristics, local environmental permitting requirements, site attributes and power/thermal load forecast, with existing, commercially proven technologies. Both direct-fired and gasification technologies for the proposed biomass-fired cogeneration facility will be investigated. System suppliers will be contacted and asked to supply cost and performance information for their systems. Conversion Technology review and selection task completed and document delivered on August 14, 2012. Task 5: Preliminary System Design. The top two technologies to be considered will be presented to Tribal staff with recommendations. Staff will subsequently select one technology for the project. Once the preferred technology has been selected, the technology vendor will be contacted and specific cost estimates/details will be secured for the following: Equipment capital costs, equipment installation costs, annual operations and maintenance costs, training required for operations personnel, site requirements, Infrastructure requirements, and estimated raw material supply needs. Working closely with the technology vendor, a preliminary facility design will be generated. Delivered technology vendor comparison matrix on draft on November 9, 2012. Task 6: Capital Cost, Installation Cost, Operating & Maintenance Costs. Working closely with the technology vendor the detailed capital cost, installation cost and O&M costs will be calculated. Interviews with facility managers operating existing facilities will be conducted to confirm actual costs. Completed second quarter of 2013. Task 7: Environmental Permit Review. No environmental analyses addressing the impact of the proposed cogeneration Project have been conducted to date. All potential environmental impacts will be addressed in this task along with a permitting plan that defines tasks and a schedule to secure environmental permits. 4 Completed second quarter of 2013. Task 8: Energy Sales and Marketing. The State of Minnesota initiated a Renewable Portfolio Standard in 2007 which requires regulated utilities operating within the state to include renewable generation as at least 25% of their generation portfolio. Contact will be made with Minnesota based utilities to market the base load power for potential long term power sales. Interconnection opportunities and costs with local distribution and transmission grid will be assessed. Energy sales and marketing task completed and document delivered July 24, 2012. Task 9: Economic Feasibility Analysis. An economic analysis will be performed to estimate the cost of electricity and heat from the cogeneration facility (or if the electricity is sold, the price that must be received to provide an adequate return on investment), and a comparison of that cost/price with what electricity and heat currently (or within the near future) cost the Tribe. Completed second quarter of 2013. Task 10: Environmental Benefit Analysis. Environmental Benefits (e.g., greenhouse gas reduction) from the project will be assessed and documented. Completed second quarter of 2013. Task 11: Tribal Benefit Analysis. The benefits to the Tribe and to the surrounding community from implementation of the proposed biomass-fired cogeneration facility will be assessed. Completed second quarter of 2013. Task 12: Training and Professional Development. A detailed training program for facility operators will be generated with significant assistance from the technology vendor. A well-defined operations and maintenance plan will be generated with significant assistance from the technology vendor. Task 13: Annual DOE Project Review. The Project Manager will develop a presentation showing the progress of the Project and meet with DOE representatives to review Project progress. Completed second quarter of 2013. Task 14: Draft Report. A draft report will be developed through contributions of all participants in the Project. Completed second quarter of 2013. Task 15: Final Report. The draft report will be edited by the Project Management and his designated reviewers to produce the final Project report. Draft final report was delivered in March 2013,

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