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The Opportunity of Biomass Energy:Renewable Heating and CHP
This Webinar is brought to you by:
Biomass Thermal Energy Council (BTEC)
With the generous support of theU.S. Forest Service
Wood Education Resource Center
3 PM ET, September 28th, 2010
The work upon which this publication is based was funded in whole or in part through a grant awarded by the Wood Education
and Resource Center, Northeastern Area State and Private Forestry, U.S. Forest Service. This institution is an equalopportunity provider.
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Quick Notes
Two Audio Options: Streaming Audio and Dial-In.1. Streaming Audio/Computer Speakers (Default)
2. Dial-In: Use the Audio Panel (right side of screen)to see dial-in instructions. Call-in separately from
your telephone.
Ask questions using the Questions Panel on theright side of your screen.
The recording of the webinar and the slides will beavailable after the event. Registrants will benotified by email.
Quick Notes - Gibeault
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Presentation Outline
I. Introduction - Kyle GibeaultII. Biomass Background Charlie Niebling
III. Feedstocks & Fuels T.J. Morice
IV. Biomass User Profiles Charlie Niebling
V. Economic Impacts William Strauss, PhD
VI. Challenges, Policy Charlie Niebling
VII. Q & A, Next Events Kyle Gibeault
[Full presentation will be available online,www.biomassthermal.org/resource/webinars.asp]
I. Event Introduction - Gibeault
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Speakers
Charlie Niebling, General Manager, New EnglandWood Pellet
T.J. Morice, VP of Marketing and Operations, MarthCompanies
William Strauss, PhD, President, FutureMetrics
Kyle Gibeault, Deputy Director, Biomass ThermalEnergy Council
Moderator
I. Event Introduction - Gibeault
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Kyle Gibeault - Moderator
Deputy Director,Biomass Thermal Energy Council
Program Manager, TechnologyTransition Corporation
I. Introducing BTEC Gibeault
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About BTEC Mission & Composition The Biomass Thermal Energy Council (BTEC) is a nonprofit
association dedicated to advancing the use ofbiomass for heatand other thermal energy applications.
BTEC engages in research, education, and public advocacy for thefast growing biomass thermal energy industry.
Formed in January 2009 by eight companies, BTEC currently has89 members from 34 U.S. states, Canada, Austria, and Denmark
Includes landowners, fuel refiners, appliance manufacturers,project developers, nonprofits, universities, and others
I. Introducing BTEC - Gibeault
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Current BTEC MembershipA3 Energy Partners Froling Energy Proe Power Systems
Abundant Power Frling GmbH Public Policy Virginia
ACT Bioenergy Fuel Pellet Technologies Rainforest AllianceAlliance for Green Heat FutureMetrics Resource Professionals Group
Alternative Heating of North America Green Clean Heat LLC Richmond Energy Associates
American Agricultural Movement Indeck Ladysmith, LLC Sandri Companies
American Wood Fibers Innovative Natural Resource Solutions Santa Energy Corporation
APEX Integrated Biomass Resources Scandtec
Bear Mountain Forest Products International Renewable Energy Technology Institute Sewall Company
Beaver Wood Energy International Silica Technologies Skanden Energy
BioHeat USA International WoodFuels Southland Bio Energy
Biomass Combustion Systems Jesse E. Lyman Pellets State of Montana Department of Natural Resources and ConservationBiomass Commodities Corporation Krieg DeVault State University of New York
Biomass Energy Resource Center Lignetics of Virginia The Fulton Companies
Biomass Energy Works Maine Energy Systems The Gavilon Group
Biowood Energy Maine Pellet Fuels Association Twin Ports Testing, Inc.
Chip Energy Marth Vapor Locomotive Company
Clean Power Development Montana Community Development Corporation Vecoplan
Comact Equipment Inc. National Network of Forest Practitioners Vermont Wood Pellet
Control Labs New England Wood Pellet LLC Viability
Corinth Wood Pellet New Horizon Inc. ViessmannCousineau Forest Products Northeast Mill Services Western Ag Enterprises
Dejno's Inc Ontario Sawdust Supplies Westervelt Renewable Energy
Ecostrat Inc. Oregon Forest Industries Council (OFIC) West Oregon Wood Products
EnTec Works LLC Paraclete Bioenergy Wilson Engineering Services, PC
Enviva Materials Piney Wood Pellets WoodFuels Virginia LLC
Equustock Plum Creek Woodpellets.com
Ernst Biomass PowerStock Woodstone
Ewing Bemiss & Co. Pratt & Whitney Power Systems - Turboden Zilkha Biomass Energy
Forest Energy Corporation Price BIOStock
I. Introducing BTEC - Gibeault
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Project made possible by the USDA FS WERC
BTEC awarded a grant from the USDA Forest Services WoodEducation and Resource Center (WERC) in June 2010 to advanceeducation and outreach on biomass thermal energy
The USDA Forest Service's Wood Education and Resource Center
(WERC) is located in Princeton, WV, and is administered by theagency's Northeastern Area State and Private Forestryorganization. The Center's mission is to work with the forestproducts industry toward sustainable forest products production forthe eastern hardwood forest region.
Activities on biomass thermal issues:webinars, interviews, factsheets, online forum, and comprehensivepresentation
All questions and attendee feedback will help form future activities.
I. Introducing the Sponsor -Gibeault
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Charlie Niebling
General Manager,New England Wood Pellet
Chairman,Biomass Thermal Energy Council
Biomass Basics Backgroundon Biomass Thermal Energy
II. Biomass Background Niebling
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What is biomass thermal energy?
The use of biomass-derived feedstocks to make thermalenergy (heat or chill) for
Space heating/cooling
District heating/cooling
Industrial process heat
Combined heat and power (CHP)
Forms of biomass used:
Chips
Pellets
Biogas derived from woody or herbaceous plantmaterials
Agricultural wastes and by-products
Other biomass feedstocks
II. Biomass Background Niebling
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Why does it matter?
1. Thermal energy makes up 1/3 of total US energyconsumption
2. Largely ignored in federal/state energy policy
3. Thermal energy represents the most efficientuse of biomass to make energy
4. Tremendous potential to address major US energy
challenges, especially dependence on foreign fossil energy and
rural economic development
II. Biomass Background Niebling
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26.8
40
32.4
'
By Fuel Type By Use Thermal/Other Primary
By Segment
Petroleum GasCoal RenewableNuclear Trans. Elec. Thermal/
Other Primary
Renewable
Energy
Consumption
Source: USDOE Energy Information
Administration
Commercial
12%
Industrial
68%
Residential
20%
'
40.57
23.14 22.37
8.26.38
'
Biomass41%
Other
renewable
15%
Hydropower
44%
'
II. Biomass Background Niebling
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Biomass thermal is the only unsubsidized energyBreakout of US Energy Sources, 2008
Sources:
Michael Pacheco, Director, National Bioenergy Center, NREL; Renewable Energy Trends 2004 data;Energy Information Administration, August 2005. Note: Total U.S. Energy Supply was 100.278 QBtu;Energy Information Administration, August 2005.
No subsidies in the U.S.
Ethanol ~5% of Renewables
(Broken out separately by EIA)
Electric
Biomass
Thermal
Biomass
Subsidized
EffectivelySubsidized
Subsidized
Clean Coal
Is Subsidized
II. Biomass Background Niebling
Subsidized
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Biomass thermal is the most efficient use
II. Biomass Background Niebling
More info? BTEC Fact Sheets
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T.J. Morice
VP of Marketing and Operations,Marth Companies
Vice Chairman,Biomass Thermal Energy Council
Biomass Basics Feedstockand Fuels
III. Feedstock & Fuels Morice
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Geographic Variances for RenewablesEspecially Biomass Feedstocks
III. Feedstocks & Fuels Morice
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Primary
Logging residues from conventional harvest
operations and residues from forest managementand land clearing operations
Removal of excess biomass (fuel treatments) andother forestlands
Fuelwood extracted from forestlands
Secondary
Primary wood processing mill residues
Secondary wood processing mill residues
Pulping liquors (black liquor)
Tertiary
Urban wood residues---construction and demolitiondebris, tree trimming, packaging wastes andconsumer durables
Forest Resources
III. Feedstocks & Fuels Morice
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Agricultural Resources
Primary
Crop residues from major cropscorn stove,small grain straw and others
Grains (corn and soybeans) used for ethanol,biodiesel and bioproducts
Perennial grasses
Perennial woody crops
Secondary
Animal manure
Food/feed processing residues
Tertiary
MSW and post-consumer residues and landfillgases
III. Feedstocks & Fuels Morice
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Supply Processing Variations
Credit for Source:
III. Feedstocks & Fuels Morice
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Fuel Variations
Pellets
80 95 %
Understanding of the complexities of varied biomass fuel variations
arent new
III. Feedstocks & Fuels Morice
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Supply Chain Variances
Credit for Source:
Vast differences even within similar feed stocks, costs
and impacts
III. Feedstocks & Fuels Morice
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Competing Markets & Technologies for Forest Resources
Erosion
Control
Meat
Smoking
Wood
Flour
Pellets
Briquettes
Logs
Chips/Slash
III. Feedstocks & Fuels Morice
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Competing Markets & Technologies for Agricultural Resources
III. Feedstocks & Fuels Morice
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Fuel Characteristics & ValuesAverage Heat Content of Selected Biomass Fuels
Fuel Type Heat Content Units
Agricultural Byproducts 8.248 Million Btu/Short Ton
Biodiesel 5.359 Million Btu/Barrel
Black Liquor 11.758 Million Btu/Short Ton
Digester Gas 0.619 Million Btu/Thousand Cubic Feet
Ethanol 3.563 Million Btu/Barrel
Landfill Gas 0.490 Million Btu/Thousand Cubic FeetMSW Biogenic 9.696 Million Btu/Short Ton
Methane 0.841 Million Btu/Thousand Cubic Feet
Paper Pellets 13.029 Million Btu/Short Ton
Peat 8.000 Million Btu/Short Ton
Railroad Ties 12.618 Million Btu/Short Ton
Sludge Waste 7.512 Million Btu/Short TonSludge Wood 10.071 Million Btu/Short Ton
Solid Byproducts 25.830 Million Btu/Short Ton
Spent Sulfite Liquor 12.720 Million Btu/Short Ton
Utility Poles 12.500 Million Btu/Short Ton
Waste Alcohol 3.800 Million Btu/Barrel
III. Feedstocks & Fuels Morice
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Charlie Niebling
Biomass User Profiles
Applications for assortedbiomass end users
IV. Biomass Profiles Niebling
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Residential Scale
Primarily solid wood andpellets
Stoves, boilers, furnaces
IV. Biomass Profiles Niebling
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Commercial-Scale
Office buildings,
hospitals, shoppingmalls, apartmentcomplexes
Pellets on smallersystems; chips onlarger systems
IV. Biomass Profiles Niebling
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Industrial-Scale
Large scale heating (>5 MMBTU) Industrial process heat, e.g. food
processing
Combined heat and power (CHP)
production
IV. Biomass Profiles Niebling
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V. Economic Impacts - Strauss
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Fossil Fuels, Long Run View
Source: IEA
V. Economic Impacts - Strauss
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US Petroleum Production Peaked in 1988
V. Economic Impacts - Strauss
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If #2 heating fuel goes from $2.75/gallon to $4.50/gallon, the
increase in exported money leads to massive job losses.
Fuel Prices and Job Losses in New England
V. Economic Impacts - Strauss
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Sustainable Biomass SupplyWhat if homes and businesses convert to biomass for heating?
V. Economic Impacts - Strauss
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Two main economic benefits from converting biomass to
thermal energy:
New or sustained jobs (direct, indirect, and induced)created from the fuel production and delivery
infrastructure;
New jobs created due to the money spent on fuelremaining in the regional (mainly rural) economy.
Economic Benefits
V. Economic Impacts - Strauss
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Forest Biomass Production
per Year
Crop Biomass
Production perYear
Total Biomass
Production perYear
Direct Jobs
Income at
$37,000 perYear per job
Indirect and
InducedJobs
Multiplier
Income at
$37,000 per Year -
Tax Rate 35%
Total ANNUAL
Income
CT 100,000 354,000 454,000 776 28,725,000$ 609 7,888,000$ 36,613,000$
MA 110,000 498,000 608,000 1,040 38,468,000$ 931 12,058,000$ 50,526,000$
ME 3,190,000 450,000 3,640,000 6,224 230,303,000$ 6,261 81,084,000$ 311,387,000$
NH 400,000 294,000 694,000 1,187 43,909,000$ 1,141 14,778,000$ 58,687,000$
NY 3,330,000 8,766,000 12,096,000 20,684 765,314,000$ 18,232 236,110,000$ 1,001,424,000$
RI 10,000 156,000 166,000 284 10,503,000$ 211 2,736,000$ 13,239,000$
VT 300,000 1,134,000 1,434,000 2,452 90,729,000$ 3,041 39,385,000$ 130,114,000$
TOTAL 7,440,000 11,652,000 19,092,000 32,647 1,207,951,000$ 30,428 394,039,000$ 1,601,990,000$
Economic Impacts
New or Sustained Direct, Indirect, and Induced Jobs(and their total annual income)
V. Economic Impacts - Strauss
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Charlie Niebling
Looking Ahead
Developments in theBiomass Thermal Industry
VI. Looking Ahead Niebling
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Energy Use - Today
VI. Looking Ahead - Niebling
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Energy Use - Tomorrow
VI. Looking Ahead - Niebling
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Getting organized as an industry, still small andfragmented
Building effective advocacy and outreach atregional/state level continuing work in DC
Research and analysis e.g. potential impact ofbiomass thermal to address Americas energy challenges strategic vision to realize this potential
Competency in manufacturing fuel, heating
technology
Moving Forward Industry Challenges 1/2
VI. Looking Ahead - Niebling
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Risk capital to build market e.g. bulk delivery of fuels
Air emissions major regulatory attention on biomasscombustion
Sustainability increasing attention on how/whetherUS biomass supply can support growing demand forenergy
How to compete when oil/gas stay cheap?
Moving Forward Industry Challenges 2/2
VI. Looking Ahead - Niebling
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Develop research and analysis agenda workingwith: USDOE, USDA, EPA
State policy make sure biomass thermal treatedequitably with biomass electric/cellulosic ethanol
Moving Forward Key Federal/Policy Issues 2/2
VI. Looking Ahead - Niebling
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Q & A
VII. Discussion - Gibeault
Ask questions using the Questions Panel on the right side ofyour screen.
All questions and comments will be recordedanonymously and submitted to our questions forum or
used for our interview series.
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Additional Webinar Topics in 2010 & 2011
Overview of policy and regulatory issues related tothe biomass thermal industry
Benefits and challenges to using biomass forresidential heating
Biomass thermal and environmental markets
Biomass thermal energy and air quality: Overview ofissues and concerns, existing technologies and those
under development
VII. Webinar Topics - Gibeault
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Upcoming Events
Congressional Briefing on Biomass ThermalEnergy on Wednesday, October 6, 2010, 10:30 AM,titled:
Heating and Cooling with Sustainable Biomass Energy
at the House Energy & Commerce Committee Room(TBD)
BTEC Membership Meeting November 16/17,2010 in Washington, D.C.
VII. Upcoming Events - Gibeault
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More Information
This Webinar will be available onwww.biomassthermal.org/resource by October 1,2010.
Sign up to receive announcements on futurewebinars, factsheets, audio interviews, and BTECnews atwww.biomassthermal.com/mailingForm.asp
Questions or comments on BTECs WERCresources?Email Joseph Seymour, BTEC Program Associate,[email protected].
VII. More Information - Gibeault
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Thank you!
BTEC Board of Directors
If you want to learn more about the biomass thermalindustry, BTEC, or membership, visit
www.biomassthermal.org
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