New Directions in Biomass ProjectsNew Directions in Biomass Projects

Mark Broses, PE and Scott Sannes, PEShort Elliott Hendrickson Inc (SEH)

Presented at the

Minnesota Municipal Utilities AssociationWinter Legislative Conference

Thursday March 26, 20091:30 – 2:15 pm

• SEH Overview

• Drivers behind the Push for Biomass to Energy

• Biomass Overview

• Emerging Biofuels in the Midwest

• Logistical, Administrative, and Social Issues

A copy of this presentation will be available at www.sehinc.com

Contact Information

mbroses@sehinc.com

ssannes@sehinc.com

A brief word about

Confidentiality Agreements

Who is SEH Inc?Who is SEH Inc?

• Founded in 1927, we are the largest engineering firm in Minnesota with more than 130 MN PE’s on staff

• We are a multi-disciplined consulting firm providing: engineering, planning & economic development, environmental and architectural services

• We serve more than 1500 municipal clients in the Midwest (from small villages to large cities), as well as State, Federal, and Private Industry clients.

Renewable Energy ServicesRenewable Energy ServicesFeasibility and Resource Assessment Studies

Site Selection and Permitting ServicesAssistance with Funding Agencies

Public Involvement“Balance of Plant” Design

Bidding & Construction ManagementDesign/Build Capability

and…..Established teaming relationships with ME firms, legal counsel, and financial consultants to address all needs for Total Project Delivery

The Picture from 17,000 FeetThe Picture from 17,000 FeetDrivers for Renewable Energy:

EconomySecurity

Global Climate ChangeFocus of the Obama Administration

Mt Tunari, Bolivia 17,060 ft

USDOE EIA predicts fuel prices will rise againUSDOE EIA predicts fuel prices will rise again

“On the Ground” Drivers“On the Ground” Drivers

• Environmental Issues (waste management, landfill diversion, hazardous waste avoidance, water protection, air quality –greenhouse gases, mercury and sulfur reductions)

• Economics (keep the money local, green jobs, retain and/or attract industry, carbon credits, tax incentives),

• Eco-status “feel-good” (will people pay more for green energy?)

State of Minnesota Legislative ActionsState of Minnesota Legislative Actions

• Minnesota’s response to biennial budget deficit colors everything

• 25 x 25?

• Renewable Portfolio Standards

• Community Based Energy Development

• Biomass and Other Agricultural Resources Tax Exemptions

• Thermal Energy Bill (HF 1078)

• Minnesota response to Federal Stimulus Funding (SF 657)

• Biomass facility grant funding provided ( HF1730)

Federal Legislative ActionsFederal Legislative Actions

• Energy Independence & Security Act ( 2007 )• Food and Energy Security Act of 2008 ( Farm Bill ) • American Recovery and Reinvestment Act Economic

Stimulus Act (2009) • Production and Incentive Tax Credits, ( electricity derived

from biomass extended to 2013 )

In the not too distant future …..• New Energy Bill? Renewable Feed-In-Tarrifs?• Biogas tax credits $4/MMBTU ?• Bitter debate over Carbon Cap & Trade - When, If, How?• Increased emphasis on cogeneration• Renewable Biomass Facilitation Act (Biomass from Federal

Lands)

Potential Impact of a National Renewable Energy Standard

(from Union of Concerned Scientists 23 Mar 09 press release)

Potential Impact of a National Renewable Energy Standard

(from Union of Concerned Scientists 23 Mar 09 press release)

http://www.ucsusa.org/assets/documents/clean_energy/Clean-Power-Green-Jobs-25-RES.pdf

Biomass Resources are concentrated in the MidwestBiomass Resources are concentrated in the Midwest

http://www.nrel.gov/gis/biomass.html

Sources of Biomass (in raw form)Sources of Biomass (in raw form)

• Wood waste (forestry harvest residuals, mfg and mill waste, demo waste, brush,…)

• Municipal waste (solid waste, wastewater organics, methane, yard waste,…)

• Industrial organic waste (trimmings, byproducts, wastewater, off-gas,…)

• Agricultural crops (corn, soybeans, canola, …)

• Agricultural waste (cobs, stover, manure,…)

Beyond traditional fossil fuels, a variety of processed biofuel options are emerging that can be combusted

in engines, turbines, and boilers. These include:

Beyond traditional fossil fuels, a variety of processed biofuel options are emerging that can be combusted

in engines, turbines, and boilers. These include:

• Solids

• Liquids

• Gases

Solid BiofuelsSolid Biofuels• Raw

• Refuse Derived Fuel

• Densified pellets or briquettes

• Torrified pellets

• Char

Liquid BiofuelsLiquid Biofuels

• Ethanol

• Biodiesel

• Pyrolysis Bio-Oil

• Methanol

http://www.boisforte.com/documents/Feasibility_Study_Final-1-30-09.pdf

Bio-oil being tested in IowaBio-oil being tested in Iowa

http://www.dynamotive.com/

Gaseous BiofuelsGaseous Biofuels

• Bio gas (methane)

• Syn gas (mix of CO2, CO, and H)

• Dimethyl Ether (DME)

Syn-GasSyn-Gas

• Chippewa Valley Ethanol – Corn Cob Gasification (Frontline)

• UND EERE will be working with UMD-NRRI this year on a syn gas to methanol demonstration project in Northern MN

• Plasma Gasification in International Falls?

Bio GasBio Gas

• Emerald Dairy – Agri-Waste Demonstration Project Bio Gas Cleanup to Dry NG pipeline quality Public Private partnerships being explored for bio gas generation in

• N. Wisconsin Landfill –registered on California Climate Exchange

• Private/Public Collaborative AD Biogas Studies being conducted in Perham, Gaylord, and Turtle Lake. Others in development.

http://www.auri.org/news/AINAPR09/Images%20Apr%2009/Waste%20MakeoverApr09.htm

http://www.agriwasteenergy.com/projects.html

Collaborative Anaerobic Digester Concept for Biogas ProductionCollaborative Anaerobic Digester Concept for Biogas Production

Cleaning up Landfill Gas to CNG for Vehicle Fueling in Ohio

Cleaning up Landfill Gas to CNG for Vehicle Fueling in Ohio

http://www.firmgreen.com/tech_main.htm

Bio Gas Pipelines?Bio Gas Pipelines?Wednesday, February 25, 2009

Landfill gas may fuel dryers at Jones IslandFrom an article by Don Behm in the Milwaukee Journal Sentinel:

Building a 17-mile pipeline to carry landfill gas from Muskego to the Jones Island sewage treatment plant on Lake Michigan

will save the Milwaukee Metropolitan Sewerage District, its customers and property-tax payers at least $148 million in the

next two decades, Milwaukee Mayor Tom Barrett and sewerage district officials said Monday.

The landfill gas at Muskego is between 50% and 55% methane and will replace natural gas as the fuel for 12 sewage sludge

dryers inside the Milorganite fertilizer production facility at Jones Island, under the proposal. Cost of converting the dryers to burn landfill gas is included in the $22 million

construction estimate, Shafer said.

Considerations for working with new Biofuelslocal production and/or usage

Considerations for working with new Biofuelslocal production and/or usage

• Logistical

• Administrative

• In-plant

• Hot Buttons

• Words of Caution

Logistical IssuesLogistical Issues

• Feedstock or Fuel Delivery (& rejection)

• Spread of disease or pests (especially with wood)

• Storage (space, degradation, self-heating)

• Odor, Noise, & Visual Aesthetics

• Truck Traffic Planning

• Health & Safety

Administrative IssuesAdministrative Issues

• Long term fuel agreements

• Bio Fuel price variation may not be related to fossil fuel pricing

• Air permits (for variable fuels)

• Warranties (for fuel types)

• Public/private partnerships

• Power Purchase Agreements

• Carbon Credits

In the PlantIn the Plant

• Fuel quality specifications

• Handling (sizing, density separation, fines, rocks, corrosiveness, stability, etc)

• Gas cleanup (tars, H2S, siloxanes,…)

• Emissions (S may be lower but be careful with NOX)

• Reliability (for example - anaerobic digestion to biogas can be a tricky business)

Hot ButtonsHot Buttons

• Worries about deforestation (Sustainable Harvest Guidelines)

• Food (or forest products?) vs. Fuel

• Traffic, Traffic, Traffic

• Odor & Noise

• Local participation vs. Multi-Nationals

Words of CautionWords of Caution• Call a Ford dealer and ask him what kind of truck to buy.

• If it looks to good to be true – it probably is.

• Someone else’s waste is only “free” until you need it.

• Stranded Assets

• Due Diligence on Emerging Companies (Developers, Technology, $)

• Long Term Stake?

ReviewReview

• SEH Overview

• Drivers behind the Push for Biomass to Energy

• Biomass Overview

• Emerging Biofuels in the Midwest

• Logistical, Administrative, and Social Issues

Finally – what is a really new direction in BioMass?BioDiesel from Fly Larvae?

Finally – what is a really new direction in BioMass?BioDiesel from Fly Larvae?

Thank You!Thank You!

A copy of this presentation will be available at

www.sehinc.com

Contact Information

mbroses@sehinc.com

ssannes@sehinc.com