what we need to know about biomass opportunities and obstacles

What We Need to Know About

Biomass Opportunities and

Obstacles

Larry Mason University of Washington College of Forest Resources

COASTAL BIO-ENERGY WORKSHOP – June 19,2007

New Sources of Energy Are Needed: Oil Costs Are Too High!!

Peter Menzel

Oil is a Threat to National Security

Fossil Fuels are Polluting the Environment

Peter Menzel

“America is Addicted to Oil”President George Bush, State of the Union 2006

I-937 Renewable Portfolio Standard – 15% by 2020 Renewable fuels standard – 2% ethanol & biodiesel Cut emissions to 1990 levels by 2020 and to 50% below 1990 levels by 2050

WA Ambitious Energy Objectives

Clean and Renewable Energy Alternatives Are Needed

Biomass is a uniquely versatile energy source

Source: WSU, WA DOE

WSU Biomass and Bioenergy Inventory

Forest Biomass equals all others combined

National Renewable Energy Laboratory

$87 Million/year to support research at the National Renewable Energy Laboratory

?Questions?• Who owns the biomass?• Where is it?• Is sufficient supply reliably

available?• What role should public lands

play?

Source: Biomass as Feedstock for a Bioenergy and Bioproducts Industry: The technical feasibility of a billion-ton annual supply. Perlack et al. 2005.

Source: WSU, WA DOE

Source: Biomass as Feedstock for a Bioenergy and Bioproducts Industry: The technical feasibility of a billion-ton annual supply. Perlack et al. 2005.

A sensitivity analysis to inform public policy could show potential biomass availability under different options

?Questions?• While there appears broad

agreement that bioenergy development and climate change mitigation are important…

• How important?• What is it worth?• How do we compensate for

ancillary benefits and avoided costs not currently traded in the market place?

THIS?

Or

THIS?

An Eastside Example:

Source: NOAA, EPA, US Census, NIFC, RTI, DNR

2006 Forest Fires

Total WA ~ 400,000 acres Total US > 9.8 million acres

Source: TSS Consultants, http://www.cc.state.az.us/utility/electric/EPS-TSSC.pdf

THIS? Or THIS?

Treatment BenefitsPresent Value per acreHigh Risk Moderate Risk

Fire fighting costs avoided $481 $231Fatalities avoided $ 10 $ 5Facility losses avoided $150 $ 72Timber losses avoided $772 $371Regeneration and rehabilitation costs avoided $120 $ 58Community value of fire risk reduction $ 63 $ 63Regional economic benefits $386 $386Total Benefits $1,982+ $1,186+

Treatment costs

Operational costs ($374) ($374)Forest Service contract preparation costs ($206) ($206)Total Costs ($580) ($580)

Positive Net Benefits from Fuel Removals $1,402+ $606+

Non-market values, avoided costs, and environmental services are important to the public and should be included in cost/benefit analysis

Source: Investigation of Alternative Strategies for Design, Layout and Administration of Fuel Removal Projects. Mason et al. 2003.

Forest, Product, Emissions, Displacement & Substitution Carbon by Component

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0

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Stem Root Crown Litter Dead Chips Lumber HarvEmis ManufEmis Displacement Substitution

Forestwith Products

with Substitution

Forest Carbon by Component

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Year

Met

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ons

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Carbon sequestration, storage, offset, and displacement from forest management and products manufacture.

Carbon sequestration and storage with no management.

CORRIM http://www.corrim.org/

Life Cycle Analysis and carbon accounting can help assess biomass utilization effectiveness

CO2 emissions from product alternatives

International Energy Agency, British Columbia Pellet Manufacturers Association, NREL, EPA

LBS. of Carbon Emissions Avoided by Burning One Ton of Pellets Verses Alternatives Electricity Oil LPG Natural Gas

3323 943 709 549

Biomass is renewable and “carbon neutral”

?Questions?• With all the apparent benefits

of bioenergy, why isn’t more happening?

Bio-energy economics: Especially challenging in the PNW

McNeil Technologies

wholesale price

retail price

Biomass Fuel Cost to Electricity Price Historical Roadblock Example:

Avoided Costs, Non-market Values, and Econ Development?

• Fossil Fuel Displacement

• Energy Diversity and Security

• Transmission Line Loss

• Landfills

• Greenhouse Emissions

• Forest Improvements

• Tax Revenues

• Economic Development

Morris, NREL

McNeil Technologies

Estimated value of environmental benefits from biomass energy= $0.114/kWh

Retail

Wholesale

Incentives, Tax Benefits, and Green Markets are being developed to support energy policy ambitions…

Renewables Portfolio Standards

State Goal

☼ PA: 18%¹ by 2020☼ NJ: 22.5% by 2021

CT: 10% by 2010

MA: 4% by 2009 + 1% annual increase

WI: requirement varies by utility; 10% by 2015 Goal

IA: 105 MW

MN: 10% by 2015 Goal +Xcel mandate of

1,125 MW wind by 2010

TX: 5,880 MW by 2015

*NM: 10% by 2011☼ AZ: 15% by 2025

CA: 20% by 2010

☼ NV: 20% by 2015

ME: 30% by 2000;10% by 2017 goal - new RE

State RPS

*MD: 7.5% by 2019

☼ Minimum solar or customer-sited requirement* Increased credit for solar or customer-sited

¹PA: 8% Tier I, 10% Tier II (includes non-renewable sources)

HI: 20% by 2020

RI: 15% by 2020

☼ CO: 10% by 2015

☼ DC: 11% by 2022

DSIRE: www.dsireusa.org January 2007

☼ NY: 24% by 2013

MT: 15% by 2015

*DE: 10% by 2019

IL: 8% by 2013

VT: RE meets load growth by 2012

Solar water heating eligible

*WA: 15% by 2020

States with Renewable Portfolio Standards

Renewable Energy Credits

Production of Electricity from

Renewable Energy

Environmental Attributes

Commodity Electricity

Growing recognition that electricity and transportation fuels generated from renewable energy sources comprise TWO distinct tradable commodities – the electricity and the “green” environmental attributes.

?Questions?• What are the biomass-to-

energy options?

Forest BiomassFeedstock- Forest Residues- Hazardous Fuel Treatments- Short Rotation Woody Crops- Wood Waste

USESUSESFuels:− BioDiesel− Ethanol

Electricity and Heat

Biobased Products– Composites– Specialty Products– New Products– Chemicals– Traditional Products

– Manufacturing– Co-firing– Combustion– Gasification – Enzymatic Fermentation– Gas/liquid Fermentation– Acid Hydrolysis/Fermentation

Biomass can be used many ways

Heat, Steam, Electricity, Transportation Fuel

?Questions?• How should bioenergy

applications be prioritized to maximize benefits?

Source: Carbon Budget Analysis for the Olympic Peninsula. Hevner. 2007

Magnitude and Source of Peninsula CO2 Emissions

Source: Carbon-negative biofuels from low-input high-diversity grassland biomass. Tilman et al. 2006 Environmental, economic, and energetic costs and benefits of biodiesel and ethanol biofuels. Hil et al. 2006

Net Energy Balance Comparisons

Largest non-hydro renewable

Bio-Energy is the largest US Energy RenewableBiomass – 3%

Forest Industries – 1.5%

Pulp and paper mills are currently struggling

PaperAge.Oct.2004

These mills could become forest biorefineries

Pulp and Paper Industry: significant renewable energy infrastructure

7,400 Pulp and paper workers in WashingtonAnnual Payroll = $450 million

Avista Corp.

For some locations, combined heat and power may be the best energy option

Small scale projects can work where resources are limited

Biomass costs are competitive for public heating projects.

What have we learned?• Biomass is the source of

renewable transportation fuel• Wood equals all other biomass

sources combined• Substantive Renewable Energy

and Pollution Reduction can not be met without utilization of wood

• New energy and public value paradigms will require new market understandings and compensation mechanisms

Conclusions:

• New collaboration amongst research disciplines is needed to address complex energy challenges and advise policy choices

• The Olympic Peninsula will play an increasingly important role in WA energy future