Woody Biomass for Bioenergy in Australia

Liz Hamilton, Senior Bioenergy Industry Officer

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 then

converted into heat, electricity or liquid biofuels.

* Woody biomass refers to plant derived biomass that

is composed of cellulose, hemicellulose and lignin -

„lignocellulosics’. Focus of this talk

Woody biomass can be used to produce

Liquid biofuels

e.g. 2nd generation lignocellulosic ethanol

or

Stationary Bioenergy:

e.g. electricity, heating & cooling

Share of bioenergy in the world

primary bioenergy mix in 2007

Source: IEA 2006 & IPCC 2007

10% of the world’s primary energy comes from biomass = ~ 50 Exajoules = 1018 joules

Bioenergy

generation by

country - 2007

Source: IEA Bioenergy/

Geoscience Australia, 2007)

Slide courtesy: Steve schuck, Bioenergy Australia

BiofuelsProcessing

CO2

Photosynthesis

CO2

Constructed using data from the National Greenhouse and Energy Reporting System 2007

TABLE: Courtesy of the Clean Energy Council Bioenergy Roadmap

Bioenergy reduces greenhouse gas emissions.

GHG Emissions from various fuel types

Black Coal 955 11.8 4.3

Gas CCGT 446 0.0 0.5

Bioenergy

Straw - steam cycle 13 0.88 1.55

Forestry residues – steam cycle 29 0.11 1.95

Forestry residues – gasification 24 0.06 0.57

Poultry litter – gasification 8 1.67 2.68

Animal slurries – anaerobic dig. 31 1.12 2.38

Landfill gas 49 0.34 2.60

Sewage gas 4 1.13 2.01

MSW incineration 364 2.54 3.30

Other renewables

Decentralised PV – new homes 178 2.03 0.70

Wind – on shore 9 0.06 0.02

Hydro – existing large 32 0.04 0.02

Life Cycle Emissions of Various Renewable Technologies

Source: IEA/DTI UK report via Bioenergy Australia

g/kWh CO2 SO2 NOx

Generated Renewable Energy in Victoria

Actual Generated Renewable

Energy in Victoria, 2008

Table:. Source: Clean Energy Council Renewable Energy Database, ABARE, 2010

Chart: Source: Parliamentary Inquiry into Approvals Process for Renewable Energy, 2010

Installed renewable energy

capacity technology in Victoria,

2010

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

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% renewable

energy by 2020; New SRES and LRET breakdown will

help bring REC prices up to encourage large

bioenergy project developments.

• Increasing electricity prices & grid upgrades, landfill

price increases and tightening of EPA regulations will

help increase the viability of bioenergy.

• Regional employment opportunities…….

Full time equivalent ren. energy industry jobs

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

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 embedded

generation to the network makes it costly to screen projects for

viable options and to optimise project location.

* Community support for local bioenergy projects.

Only Vic. has a feed-in tariff for bioenergy for

generating up to 100 kW from wind, solar, hydro &

biomass sources. Also, no rebates like solar hot water.

Nevertheless….

• Considerable activity around Australia in the area of

woody 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 public

institutions, new housing developments and to

encourage group pellet heater buy ups.

Operating Woody Biomass to Bioenergy Projects

in Victoria

Note: this is just an example of some of the operating

woody biomass to bioenergy projects -

the list is by no means complete!

Australian Paper, Maryvale - Black Liquor to Power

* Black liquor- by product of pulp & paper making industry

* The Maryvale power station is the largest industrial

producer of renewable energy in Victoria.

* Generates ~ 200,000 MWh/year or 23 MWe average + over

2 million tonnes/year of process steam or about 1.5 million

MWh of thermal energy for their processes.

* In 2007, 69.5 % of Maryvale Mill’s energy input was produced from

waste black liquor.

* Also potential to convert

black liquor into bio-oil or

gasified into transport fuel.

Thermal bioenergy production in Victoria

Reid Bros. Sawmill – Yarra Junction

• 1MW(thermal) bioenergy

plant at their sawmill.

• Burning 70-80 tonnes of

wood milling waste /week to

run their kilns.

• Cost $350,000 to install in

2004, (nowadays maybe

$500,000).

• Saving $300k/annum

compared to LPG they used

to use.

Photo and information: David Coote

Thermal energy production

Carter 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 produce

heat & steam for their kilns

• 65% of their mill’s energy is from renewable sources

Bioenergy Projects In Australia under

development

• Focus on woody biomass to energy projects under

development – mostly Victorian.

• Again, this list is by no means complete, and;

• Apologies to anyone who is developing woody

biomass to energy projects I have omitted.

Visy Paper recycling & RCR Energy: Campbellfield

• Currently installing a Bubbling Fluidised Bed boiler

with 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

Norske Skog Biomass/Gas Cogeneration, Albury

• Currently produces ~ 270,000 t/yr of newsprint 24/7 from

recycled paper & pine which are both processed onsite.

• NS is in final study phase of a biomass/gas cogeneration

proposal 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.

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; one

plant 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.

New Royal Children’s Hospital - Melbourne

• Aim to be Australia‟s greenest hospital & reduce GHG‟s by 45%.

• Various energy efficiency measures include a recently installed

600 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.

D&R Henderson, Benalla, Particle Board Plant

• Plan to install downdraft, fluidised bed gasifier(s) to generate

heat & 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 of

sander 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 including

avoided landfill emissions – same for all projects outlined).

• Staged project, achieving energy savings of up to 200,000

gigajoules of natural gas/yr & net savings of > $200,000/yr.

• Creating up to 6 new FTE positions through implementation

Real Power Systems Gasifiers & Wannon Water

• Five projects have approval in principle in Victoria.

• First gasifier recently commissioned near Hamilton, Vic. to

maintain heat in anaerobic sludge digester of Wannon Water‟s

recycled water processing facility partially heated with LPG.

• Using dried sewerage sludge & wood chip for heat & biochar.

• Gas flow rate aim was 300m3/hr but system producing 700m3/hr

• Est. power available -+ 400kWe or 1320kWth

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

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 particle

board manufacturer.

Second Generation, Lignocellulosic, Biofuels

• Utilizing wood and crop residues unlike 1st gen. biofuels

• More than 150 second gen. projects worldwide.

• Two main technologies for making 2nd gen. ethanol

- Biochemical: conversion via hydrolysis to release sugars & fermentation to

alcohol fuels - difficult process cf. 1st gen. biofuel production.

- Thermochemical: gasification to syngas and synthesis to fuels.

Coskata Inc. Plasma Gasification to Ethanol Project • Vic. govt facilitating a $400 million, ethanol prod. facility to produce 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/yr pulplog based plant.

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 of

renewable energy generated by burning native forest waste.

• DPI Biofuel Crop Potential in Victoria Project potential for 33

biofuel crops in Victoria now and in 2050.

• Feasability for Biochar Production in Victoria: Sensitivity

Analysis undertaken by DPI in 2009.

Victorian Biomass Audit – (TBC mid 2011)

Victorian Biomass Audit

• Funded & managed by Regional Development Victoria.

• Detailed mapping of available biomass to better inform

investors 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 community

sustainability issues/options e.g. susceptibility of regional

industries to impending waste management bottlenecks.

• Provide the basis for considered, prioritised industry and

energy facilitation.

• Timber industry component of Audit completed late 2010.

Victorian Bioenergy Website

Thank you

Liz.hamilton@dpi.vic.gov.au

Senior Bioenergy Industry Officer

Department of Primary Industries, Victoria