opportunities and challenges for bioenergy in · pdf filethan propane for heating poultry...
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OPPORTUNITIES AND
CHALLENGES FOR
BIOENERGY IN VIRGINIA
German American Bioenergy Conference 2013
April 16th –Richmond, VA
Bio-Gas – Opportunities:
Nutrient handling requirements related to the
Chesapeake Bay
Large numbers of dairies
High levels of organic waste streams
Large food processing industry
Supplies from institutions and (possibly)
municipalities
Bio-Gas – Challenges:
Inexpensive natural gas
Low electricity prices
Few incentives or policies to drive demand (e.g. nutrient credits)
Dairies are relatively small
Competition for feedstocks
Feed producers
Landfills, composters, etc.
Biodiesel producers
Potential Users of Biogas Technologies :
Dairies (and other ag producers): Not likely with current market conditions, no viable market for electricity
Industrial Users: Maybe, but only in specific cases –a combination of strong sustainability goals and high levels of nutrient rich effluent
Municipalities: Possibly, the disposal of biosolids is the main economic driver. Also have the ability to take on debt to finance projects with longer payback
Solid biomass combustion –
Opportunities:
Low-cost residual biomass (wood)
High propane and heating oil costs
Some thermal clients without access to natural gas
Solid biomass combustion – Challenges:
Low natural gas prices
Low electricity prices
Few incentives, policies subsidizing biomass energy
Potential Users of Solid Biomass Technologies:
Ag producers: Limited opportunities in poultry production. Biomass fired radiator systems are better than propane for heating poultry houses (less moisture).
Industrial/Institutional Users: Limited opportunities –requires combination of large thermal user, interested in a big new investment
Municipalities/Utilities: Not likely. Low power prices make electricity production uneconomical. Most municipalities have access to natural gas.
For more information:
Stephen Versen, Project Manager
Agriculture and Forestry Development Services
Virginia Department of Agriculture and Consumer Services
102 Governor St.
Richmond, VA 23219
Ph: (804) 786-6911
www.vdacs.virginia.gov/agribusiness
Key Opportunities and Resources
About one-half of the State is not served by natural gas
Federal, State and Localized Incentives for biomass
USDA – REAP: grants for 25% of cost & loan guarantees
Virginia’s AFID: grants for 25% of total capital investment
Tobacco Commission: grants based on jobs and cap ex
Relative ease of permitting
Wood pellets
Wood Pellets in Virginia
Eight wood pellet plants are now in operation.
Others have been announced or are being built.
Pellets are for both domestic and international markets
Both softwood and hardwood pellets produced
Virginia has two wood pellet exporting facilities.
Over $23 million in exports in 2012
Virginia Forest Cover
Over 15.5 million acres
Forest Growth(Volume of All Live Trees on Timberland)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
1940 1957 1966 1977 1986 1992 2001 2010
Hardwoods
Softwoods
Since 1940, total volume has more than doubled
from 15.5 to 33.6 billion cubic feet.
YEAR
For More Information
Charles W. Becker III, CF
Utilization & Marketing Manager
Virginia Department of Forestry
900 Natural Resources Dr., Suite 800
Charlottesville, VA 22903
434-220-9115
434-296-2369 fax