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    Woody Biomass for Bioenergy in

    AustraliaLiz Hamilton, Senior Bioenergy Industry Officer

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    Bioenergy

    * Renewable energy from organic matter, (biomass).

    * Stored energy in biomass - natures solar batteries.

    * Includes food processing waste, manures, crops,

    woody residues, weeds and sewage which are thenconverted into heat, electricity or liquid biofuels.

    * Woody biomass refers to plant derived biomass thatis composed of cellulose, hemicellulose and lignin -lignocellulosics . Focus of this talk

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    Woody biomass can be used to produce

    Liquid biofuels e.g. 2nd generation lignocellulosic ethanol

    or

    Stationary Bioenergy:e.g. electricity, heating & cooling

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    Share of bioenergy in the worldprimary bioenergy mix in 2007

    Sou rc e: IEA 2006 & IPCC 2007

    10% of the worlds primary energy comes from biomass = ~ 50 Exajoules = 10 18 joules

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    Bioenergygeneration bycountry - 2007

    Source: IEA Bioenergy/Geoscience Australia, 2007)

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    Slide courtesy: Steve schuck, Bioenergy Australia

    BiofuelsProcessing

    CO2

    Photosynthesis

    CO2

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    Constructed using data from the National Greenhouse and Energy Reporting System 2007TABLE: Courtesy of the Clean Energy Council Bioenergy Roadmap

    Bioenergy reduces greenhouse gas emissions.

    GHG Emissions from various fuel types

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    Black Coal 955 11.8 4.3Gas CCGT 446 0.0 0.5BioenergyStraw - steam cycle 13 0.88 1.55Forestry residues steam cycle 29 0.11 1.95Forestry residues gasification 24 0.06 0.57Poultry litter gasification 8 1.67 2.68Animal slurries anaerobic dig. 31 1.12 2.38Landfill gas 49 0.34 2.60Sewage gas 4 1.13 2.01MSW incineration 364 2.54 3.30Other renewablesDecentralised PV new homes 178 2.03 0.70Wind on shore 9 0.06 0.02Hydro existing large 32 0.04 0.02

    Life Cycle Emissions of Various Renewable Technologies

    Sourc e: IEA/DTI UK repor t v ia Bioenergy Aus tra l ia

    g /kWh CO 2 SO 2 NOx

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    Generated Renewable Energy in Victoria Actual Generated Renewable

    Energy in Victoria, 2008

    Table:. Sour ce: Cl ean Energy Council Renewable En ergy Database, AB ARE , 2010

    Chart: Source: Parl iamentary I nqui ry into Approvals Process for Renewable Energy, 2010

    Installed renewable energycapacity technology in Victoria,

    2010

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    Delta Energy NSW Mallee sp. co firing project* DE - Australia s largest power generator undertook analysis

    comparing costs of meeting their 20% RET requirements using

    various renewables.* Investigating potential for mallee production for biomass.* Trialling Crucible Carbon pyrolyser at Vale Power Station

    Typical $A Capital Costs of Projects

    Option Base/$KW Capacity factor Factored cost/KW

    Coal $2600 .85 $3050

    Biomass $4400 .75 $5850

    Geothermal $5200 .80 $6500

    Wind $2400 .30 $8000 Solar $5600 .40(?) $14000

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    Opportunities for woody biomass to bioenergy CEC Bioenergy Roadmap states bioenergy could

    provide 4% by 2020 & between 19.8 30.7% of Australia s electricity needs by 2050. Federal government mandated 20% renewableenergy by 2020; New SRES and LRET breakdown willhelp bring REC prices up to encourage largebioenergy project developments. Increasing electricity prices & grid upgrades, landfillprice increases and tightening of EPA regulations willhelp increase the viability of bioenergy. Regional employment opportunities.

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    Full time equivalent ren. energy industry jobs

    Source: Clean Energy Council Report, Clean Energy Australia, 2010, from SKMMMA, 2010

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    Barriers to Bioenergy - Clean Energy Council Report

    Specific barriers to the bioenergy sector are:

    * The lack of an adequate carbon price signal.* Low price for RECs: disincentive for new projects.* Regulatory gaps affecting eligibility & accreditation* The high cost of arranging connection to the grid.* The lack of general information on the value of embeddedgeneration to the network makes it costly to screen projects forviable options and to optimise project location.* Community support for local bioenergy projects.

    Only Vic. has a feed-in tariff for bioenergy forgenerating up to 100 kW from wind, solar, hydro &biomass sources. Also, no rebates like solar hot water.

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    Nevertheless. Considerable activity around Australia in the area ofwoody biomass to bioenergy projects.

    Most development where large thermal energy needs& cheap, free or problematic waste biomass streams.

    Opportunities for exporting biomass e.g. pellets to Asia and Europe, and for building up local biomass-using industries e.g. in hospitals and other publicinstitutions, new housing developments and toencourage group pellet heater buy ups.

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    Operating Woody Biomass to Bioenergy Projectsin Victoria

    Note: this is just an example of some of the operatingwoody biomass to bioenergy projects -

    the list is by no means complete !

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    Australian Paper, Maryvale - Black Liquor to Power* Black liquor- by product of pulp & paper making industry

    * The Maryvale power station is the largest industrialproducer of renewable energy in Victoria.

    * Generates ~ 200,000 MWh/year or 23 MWe average + over2 million tonnes/year of process steam or about 1.5 million

    MWh of thermal energy for their processes.* In 2007, 69.5 % of Maryvale Mills energy input was produced fromwaste black liquor.

    * Also potential to convertblack liquor into bio-oil orgasified into transport fuel.

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    Thermal bioenergy production in Victoria

    Reid Bros. Sawmill Yarra Junction 1MW(thermal) bioenergyplant at their sawmill.

    Burning 70-80 tonnes ofwood milling waste /week torun their kilns. Cost $350,000 to install in2004, (nowadays maybe$500,000).

    Saving $300k/annumcompared to LPG they usedto use.

    Photo and information: David Coote

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    Thermal energy productionCarter Holt Harvey Pine mill Morwell

    Producing nearly 20MWth from one large boiler Runs 24/7 Used to produce steam for their kilns.

    Most larger Vic sawmills use their waste wood to produceheat & steam for their kilns 65% of their mills energy is from renewable sources

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    Bioenergy Projects In Australia underdevelopment

    Focus on woody biomass to energy projects underdevelopment mostly Victorian. Again, this list is by no means complete, and;

    Apologies to anyone who is developing woodybiomass to energy projects I have omitted.

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    Visy Paper recycling & RCR Energy: Campbellfield

    Currently installing a Bubbling Fluidised Bed boilerwith 30.8MWth & 3.0 MWe capacity. Will use up to 11.3 tonnes/hr of fuel ~ 50%unrecycleable short paper/cardboard fibres, ~ 50%plastics (not PVC s). Will also use urban wood waste

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    Norske Skog Biomass/Gas Cogeneration, Albury

    Currently produces ~ 270,000 t/yr of newsprint 24/7 fromrecycled paper & pine which are both processed onsite. NS is in final study phase of a biomass/gas cogenerationproposal to supply process steam and electrical power. Boiler to be fuelled by mill & local regional waste steams:

    * Hog Fuel from the debarking and processing of pine* Recycled Paper Deinking & Water Treatment Sludges* Local Council construction timber waste* Forest residues

    8 MW generated on-site:

    5 new jobs in biomass supply chain +up to 100 construction jobs.

    75% reduction in natural gas use.

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    Plantation Energy Australia

    PEA is Australia s only industrial scale Densified Biomass Fuel(DBF) pellet manufacturer using plantation residues. Currently, one DBF plant in Albany 250,000 tonnes/yr; oneplant planned for Heywood & one in Mt. Gambier. New 4 yr supply deal with Mitsui company worth > $70 million. Brings them one step closer to developing these new plants.

    http://www.google.com.au/imgres?imgurl=http://www.verstegen.net/uploads/wood_pellets.jpg&imgrefurl=http://www.verstegen.net/orange-peel-grabs-for-wood-chips-biomass.php&usg=__0lw18d61qbTlH2EqKf_kHpLComw=&h=300&w=400&sz=23&hl=en&start=8&zoom=1&tbnid=QBKsKwxXB9fmuM:&tbnh=93&tbnw=124&prev=/images%3Fq%3Dwood%2Bpellets%26um%3D1%26hl%3Den%26sa%3DN%26tbs%3Disch:1&um=1&itbs=1http://www.google.com.au/imgres?imgurl=http://www.aghouse.com/6mm_Wood_Pellet.jpg&imgrefurl=http://www.aghouse.com/tegmill.html&usg=__Ld6qnNKwbP3YOM5MMPiRhIkjt1A=&h=389&w=580&sz=81&hl=en&start=16&zoom=1&tbnid=gxy4uM-sGAPtCM:&tbnh=90&tbnw=134&prev=/images%3Fq%3Dwood%2Bpellets%26um%3D1%26hl%3Den%26sa%3DN%26tbs%3Disch:1&um=1&itbs=1
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    New Royal Childrens Hospital - Melbourne Aim to be Australia s greenest hospital & reduce GHG s by 45%.

    Various energy efficiency measures include a recently installed600 kW, 90% efficient, wood boiler to help heat ~ 10% of hospital. Capital cost of around $700K to install. Will use 10,040 t/yr pellets, initially from PEA, Albany.

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    D&R Henderson, Benalla, Particle Board Plant

    Plan to install downdraft, fluidised bed gasifier(s) to generateheat & syngas to dry chips for particle board manufacturing. Up to 18,000t/yr particle board sander dust & wood waste. Reduced energy costs and avoids cost of sending 6,000t/yr ofsander dust to landfill (flammable, hazardous product). Project cost - $1,950,000, RDV Support - $877,500 Reducing GHG emissions by up to 10,310 t/yr (not includingavoided landfill emissions same for all projects outlined). Staged project, achieving energy savings of up to 200,000gigajoules of natural gas/yr & net savings of > $200,000/yr. Creating up to 6 new FTE positions through implementation

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    Ararat Shire gasification project for local pool Looking to purchase a 60kW Ankur gasifier to help supplement

    > half of the gas heating of the YMCA pool from wood waste. Around 50kg of fuel/hr to generate 622 MJ heat/hr. ~ 400 tonne per annum operating 8,000 hours per year. Currently pool heating costs ~ $40,000/year on natural gas. Total capital cost: gasifier, new syngas suitable boiler,

    automated feed in system and storage ~ $100,000. Expected pay back period of ~ 5 years

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    Hancock Victorian Plantations Trialing a Bruks Mobile Chipper in post harvest plantation slash. Currently contracted in the NE in 20 yr old fire damaged pine. Carter Holt Harvey using chip in their boiler at Myrtleford mill. Interest from other industries to use the chip including particleboard manufacturer.

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    Second Generation, Lignocellulosic, Biofuels

    Utilizing wood and crop residues unlike 1 st gen. biofuels

    More than 150 second gen. projects worldwide. Two main technologies for making 2 nd gen. ethanol

    - Biochemical : conversion via hydrolysis to release sugars & fermentation toalcohol fuels - difficult process cf. 1 st gen. biofuel production.

    - Thermochemical : gasification to syngas and synthesis to fuels.

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    Coskata Inc. Plasma Gasification to Ethanol Project Vic. govt facilitating a $400 million, ethanol prod. facility toproduce 225 million litres of ethanol/yr for blending with petrol. High temp. plasma gasification of biomass to syngas. Can be based on any MSW or biomass waste streams. Bio-fermentation of syngas with proprietary micro-organisms. Recent $250 million US loan guarantee for 250,000 tonne/yrpulplog based plant.

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    Bioenergy Activity in Victoria

    Victorian Bioenergy Network - (DPI and SV) email network,regular Bioenergy Business Breakfasts , other events Various grants and incentives - eg.

    * DPI s ETIS doubling of grant $ to $82 million in 2011.* Federal govt $1.4 billion Regional Development Aust. Fund

    Vic. Timber Industry Strategy - lifts the ban on the sale ofrenewable energy generated by burning native forest waste. DPI Biofuel Crop Potential in Victoria Project potential for 33biofuel crops in Victoria now and in 2050.

    Feasability for Biochar Production in Victoria: Sensitivity Analysis undertaken by DPI in 2009.

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    Victorian Biomass Audit (TBC mid 2011)

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    Victorian Biomass Audit

    Funded & managed by Regional Development Victoria.

    Detailed mapping of available biomass to better informinvestors of scale & scope for resource recovery initiatives. Drivers include: * Incomplete data sets and lack of source specifics* Increasing landfill levies* Renewed EPA vigilance* Pre-emptive assessment to identify industry and communitysustainability issues/options e.g. susceptibility of regionalindustries to impending waste management bottlenecks.

    Provide the basis for considered, prioritised industry andenergy facilitation. Timber industry component of Audit completed late 2010.

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    Victorian Bioenergy Website

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    Thank [email protected]

    Senior Bioenergy Industry OfficerDepartment of Primary Industries, Victoria

    mailto:[email protected]:[email protected]