biomass conversion technologies · biomass conversion technologies peter tittmann due diligence...
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Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
Biomass Conversion TechnologiesDue Diligence for Technology Deployment
Peter Tittmann
Center for Forestry
University of California, Berkeley
Biomass Working Group, February 18 2014
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
Outline
1 Due diligence definedDefining termsGetting there..Due diligence
2 Technology evaluationCapabilityE�cacyCost
3 Information sources
4 VendorsTypesVendor diligence
5 Summary
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
Definitions
Technology The specific unit or package being considered forpurchase from a given vendor. Could include oneor more of:
GasifierBoilerHamermillGas cleaningEngineTurbine
Vendor Entity selling the technology
Conversion Process inclusive of all intermediate steps, ofconverting the raw material (wood chips, debris,pellets) into the final product (electricity, heat,densified fuel)
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
Definitions continued
Project Set of values, goals, and objectives that leadevaluating conversion technologies
Values Set of principals or ideals that guide and definethe projecteg: profit, environmental stewardship, social
responsibility
Goals General statements aligned with values thatexpress intangible or abstract missioneg: “Provide sustained economic opportunity for
our community”
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
Definitions continued
Objectives Specific tangible outcomes
create 10 long-term, living wage local jobstreat 10,000 ac of forest annually,produce 10MWe of renewable electricity,realize 7% return on investment in 15 yearsreduce heating costs by 5%reduce conversion costs by 10% in 5 yearsfor an emerging technology
Team Specific individuals with defined roles.
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
Before the technology
Define the project Take time to think carefully about theproject articulating at least the following:
ValuesGoalsObjectiveTeam
The known unknowns What you know that you don’t knowyet, and how to know it.
What expertise do you lack on your team(technical, finance, etc.)?Do you have a realistic estimate of feedstocksupply in terms of cost and volume?Do you know what your product market is?How to access it? What price you canexpect to charge?
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
What is due diligence?
Evaluating capability and e�cacy of a specific technology toachieve your goals and objectives.
Capability Does the technology do what I want it to?
E�cacy How well does it perform
Process e�ciency $/unit outputProduct quality relative to customerspecification
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
CapabilityCategories
What are the specifications of the technology package?operating conditionsfeedstock requirementsduty cyclemaintenance cycleemissions/residuals
Do the specs meet with your operational conditions?
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
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sources
Vendors
Types
Vendor diligence
Summary
CapabilityOperating conditions
Temperatures Min, Max
Dust Air filtration requirements?
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
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Summary
CapabilityFeedstock specification
Consumption Feedstock consumption (eg: tons/day, greentons ⇡50% MC, oven dry tons 0% MC)
Piece size Dimensions of minimum and maximum piecesize?
Moisture Content What is the maximum and minimummoisture content for feedstock? Dry or wet basis?
Moisture Content measurement
Generally reported on dry basis:
m
g
�m
od
m
od
Where m
g
is green mass and m
od
is oven-dry mass
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
CapabilityOperation
Mode of operation Batch or continuous?
Duty cycle Does the unit operate continuously betweenmaintenance cycles or is operational down timerequired?
Maintenance cycle How many operational hours betweenmaintenance?
Replacement schedule and cost How often do componentsneed to be replaced? At what cost?
Operation How many people are required to operate thesystem? How automated is feedstock handing?
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
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Information
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Types
Vendor diligence
Summary
CapabilityEmissions and residuals
Air emissions Ask for criteria pollutant emissions reported inlbs/ton of feedstock consumed.
Criteria pollutants Ozone (O3
), Nitrogen Dioxide (NO2
),Sulfates,Carbon Monoxide (CO), Sulfur Dioxide(SO
2
), Visibility Reducing Particles (AKA ’dust’),Lead (Pb), Hydrogen Sulfide (H
2
S), VinylChloride
Liquids Does e✏uent need to be treated? Is treatmentsystem included in package?
Residuals Other solid residuals in lbs/ton of feedstock.
CharAsh
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
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Capability
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CapabilityTrack record
Its criticaly important to understand the development status ofthe technology.
Development Stage Lab scale? Pilot scale?
Production Ask vendor for a list of installations or clientreferences.
Operating hours?
Guarantee, service Can reflect vendors true feeling aboutreliability.
Evaluate track record against project goals. A technology indevelopment stage may be the best fit if R&D or publicinvestment in novel technologies are important.
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
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E�cacyMatching project objectives
Does the technology meet your project needs?
Criteria Mfg. A Mfg. B
60 psi steam Xwood pellets Xwood chips X�170� water X10 kWe electricity X� 20,000 GT/year
Table : Example evaluation matrix
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
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E�cacyProduct Quality
Product specifications Does the product meet known marketspecs?
Densified fuels: Ash content, moisturecontent. Check standards bodies (AmericanPellet Fuels Institute, ASTM International,etc.)Co-firing:
Boiler Type Piece size (in)
Pulverized coal 1/4Stoker 3Cyclone 1/2Fluidized bed 3
Table : Co-firing fuel specification from NREL
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
E�cacyProduct quality continued
Latency If demand is variable (eg: heat loads inmanufacturing), how quickly can productionramp to meet demand?
Consistency If demand constant and critical (ie baseloadPower Purchase Agreement) can the capacityfactor meet the demand?
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
CostFit with project finance
Does the technology allow you to meet project revenueexpectations?
Pn
1
R �P
n
1
C � P
Where n is the project planned lifetime in years, R are revenuestreams (heat, electricity, etc) and C are costs (capital, finance,operations, taxes, permit fees,etc.) and P is desired profit.
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
CostEvaluation
Production context Multiple bids will reinforce bid legitimacy
Demonstration context Attempt to quantify expected benefitsfrom demonstration in terms of long term goalsand objectives (eg: SB1122)
public benefitstechnology maturationreducing costs for primary industry (woodproducts, recycling, etc)
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
Sources of information
Vendor Ask for data from installed (production) units.Ask for reference to corroborate.
Client Understand relationship to vendor. Ask for rawdata if available. Summary data should beexamined closely.
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
Vendor types
Original Equipment Manufacturer (OEM) Company actuallyfabricates unit components (gasifier, engine, dye)
May own intellectual propertyUsually unit sales
Retailer and/or installer Provides comparable unit componentsfrom a multiple OEM mfg. May provide systemengineering services.
Consulting Engineer Combines best fit parts/pieces from OEMto fit system specification. Can provideconstruction-ready plans. Usually bill T&M orlump sum, no equity.
System integrator Energy companies. Procure financing,design, construct, operate.
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
Who you are doing business with
Company history How long have they been in business?
Product Lines What other product do they produce?
Management Who is the management team?
Other project references Other projects and clients. Be sure tounderstand the relationship between client andvendor for references.
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
Due diligence and values
Demands reflection on core values and goals Technology duediligence requires a clear vision of the projectvalues, goals, objectives. This is the measuringstick.
Know just enough about all system components Easy to getlost in the detail. Focus on important things.
inputoutputcosts/benefit alignment with goals andobjectives
Biomass
Conversion
Technologies
Peter
Tittmann
Due diligence
defined
Defining terms
Getting there..
Due diligence
Technology
evaluation
Capability
E�cacy
Cost
Information
sources
Vendors
Types
Vendor diligence
Summary
Questions?
Contact information
Peter Tittmann, Ph.D.Center for ForestryUC [email protected]. (510) 665-3518c. (707) 849-4135web: http://ucanr.edu/sites/WoodyBiomass/twitter: @UCBWoodProducts
This work is funded in part through a Cooperative Agreement with
the USDA Forest Service.