what we need to know about biomass opportunities and obstacles
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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!!. Oil is a Threat to National Security. - PowerPoint PPT PresentationTRANSCRIPT
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
-100
0
100
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300
400
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700
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Year
Met
ric T
ons
Per H
ecta
re
Stem Root Crown Litter Dead Chips Lumber HarvEmis ManufEmis Displacement Substitution
Forestwith Products
with Substitution
Forest Carbon by Component
-100
0
100
200
300
400
500
600
700
800
Year
Met
ric T
ons
Per H
ecta
reStem Root Crown Litter Snags
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