Biomass Thermal Energy Council
Biomass Thermal Systems: Advantages Over Conventional Fuels Charlie Niebling New England Wood Pellet / Biomass Thermal Energy Council
Role of Biomass in Meeting New Hampshire Thermal RPS Goals
Charlie Niebling General Manager, New England Wood Pellet LLC, Jaffrey NH
Environmental Business Council January 8, 2013
• What is Biomass • How NH Heats • Benefits of Displacing Imported Fossil Heating Fuels to NH Economy and Environment • Why RPS as Basis for Incentive to Grow Market? • Biomass Heating Technology and Applications
Facilities Jaffrey, NH and BES Capacity 85,000 tons
Schuyler, NY Capacity 85,000 tons
Deposit, NY Capacity 85,000 tons
Refined and Densified Biomass Fuels Wood Pellets
Grass Pellets
Wood or grass briquettes
Wood chips
How Does NH Heat? Fuel
% Households
# Households
Heating Oil
48.8%
252,000
Utility Gas
19.5%
101,000
Bottled Gas/Propane Electricity
14.4%
74,000
7.9 %
41,000
Wood
7.2%
37,000
Other (e.g. coal, solar)
2.1 %
11,000 Source: US Census Bureau ACS, 2010
Natural Gas Distribution and Availability Limited in NH
Heating the Northeast with Renewable Biomass: A Bold Vision for 2025
An American Revolution in thermal renewable energy, to start in the Northeast 25% of all thermal energy in Northeast from renewable energy by 2025 75% of renewable thermal energy from sustainably-sourced forest and agricultural biomass by 2025 (balance from solar thermal and geothermal)
www.nebioheat.org/vision
Potential Economic Benefits • Conversion to biomass thermal can sustainably displace 50 million gallons of oil and propane annually by 2025. • Conversion of 40,000 homes and businesses will enable the retention of $125+ million in annual income in the NH economy instead of exporting to other economies, in addition to individual user savings of 50% or more on operating cost • By 2025, NH would have more than $1.6 billion new dollars per year injected into the regional economy
• This retention of wealth and expansion of the biomass thermal industry will result in a total of 6,500 retained and new permanent jobs
Potential Environmental Benefits • Replacing oil (a high carbon fuel) with biomass (a low carbon fuel) reduces greenhouse gas emissions that contribute to climate change • The use of biomass reduces acid rain causing sulfur and mercury emissions as compared to the heating oil it can replace • The enhanced value of biomass will contribute to healthy rural communities through improved economics and viability of forest and farm ownership
Carbon Intensity Values for Selected Heating Fuels (Draft results; Source: NESCAUM, 2010)
Pathway
Carbon Intensity (gCO2e/MJ)
Compressed Natural Gas
73.1
Liquefied Petroleum Gas (LPG)
86.9
Ultra-Low-Sulfur Diesel (ULSD)
93
Soy Biodiesel
35
Pellets from woody biomass
19.8
Public Policy Basis for Renewable Energy Incentives • Reduce reliance on foreign fossil energy; enhance national & regional energy security • Conserve energy through increased efficiency • Reduce air emissions (e.g. PM, SO2, Hg) • Reduce greenhouse gas emissions • Local sustainable economic development; JOBS • Save people $$$
Getting Biomass Thermal in RPS Programs • Renewable Portfolio Standards are the major energy policy at state level – 30+ states • Biomass electric in every state RPS • Until NH, thermal in only seven states, and very limited in scope • Equivalent treatment levels playing field with biomass electric • Encourages CHP and rewards higher efficiency
Thermal in NH RPS • Authorized for 2013-2025 • RECs awarded on MWH-BTU conversion basis, based on output of “useful thermal energy”; metering to verify • RECs valued at up to $29/MWH by 2025 • $63 million in direct incentive payments based on maximum REC value • One ton pellets = 3.8 MWHs (@ 80% output efficiency) • No minimum efficiency requirement so all biomass fuel systems and technologies will have access • Funded by electric ratepayers; utilities supported because it lowered compliance cost • Already generating significant market activity • Other northeastern states studying feasibility: VT, MA, MD, ME
How Thermal RECs Work Used with permission of FutureMetrics
Applications
School
Government
Commercial
District heat
Process needs
DHW
Greenfield Community College, Greenfield MA Installation by: Sandri Energy
Carroll County Nursing Home Complex, Ossipee NH Installed by: Biomass Commodities Corporation
White Mountain National Forest Admin. Complex, Campton NH Installed by: Thayer Corporation KOB Pellet Boiler
Pellet-fueled 100 kw Cogeneration Unit
Bulk delivery to external silo
Typical Installation External to Existing Building
Merrimack Valley Schools Wood-Chip District Heating Plant, Penacook NH Installed by: Messersmith Boiler
Industrial combustion, district heating, combined heat and power…..HUGE potential in northeast
Bulk delivery
Pneumatic bulk delivery trucks (Sandri Energy and Maine Energy Systems)
Bulk delivery to Hi Standard, Jaffrey
Examples of the Possible • SWEDEN – 40% of R/C/I space heat now provided by biomass, geothermal and solar thermal (SOURCE: SVEBIO 2008) • UPPER AUSTRIA – 90% of new residential construction now biomass and/or solar thermal (SOURCE: ProPellets Austria 2008) • DENMARK – District heating provides 50% of all R/C/I heating; renewables are 20% of this, much of it from cogeneration (SOURCE: Univ. of Rochester, 2007)
Thank you
Charlie Niebling 603-965-5434 [email protected] www.pelletheat.com
Role of Biomass in Meeting New Hampshire Thermal RPS Goals
Charlie Niebling General Manager, New England Wood Pellet LLC, Jaffrey NH
Environmental Business Council January 8, 2013
• What is Biomass • How NH Heats • Benefits of Displacing Imported Fossil Heating Fuels to NH Economy and Environment • Why RPS as Basis for Incentive to Grow Market? • Biomass Heating Technology and Applications
Facilities Jaffrey, NH and BES Capacity 85,000 tons
Schuyler, NY Capacity 85,000 tons
Deposit, NY Capacity 85,000 tons
Refined and Densified Biomass Fuels Wood Pellets
Grass Pellets
Wood or grass briquettes
Wood chips
How Does NH Heat? Fuel
% Households
# Households
Heating Oil
48.8%
252,000
Utility Gas
19.5%
101,000
Bottled Gas/Propane Electricity
14.4%
74,000
7.9 %
41,000
Wood
7.2%
37,000
Other (e.g. coal, solar)
2.1 %
11,000 Source: US Census Bureau ACS, 2010
Natural Gas Distribution and Availability Limited in NH
Heating the Northeast with Renewable Biomass: A Bold Vision for 2025
An American Revolution in thermal renewable energy, to start in the Northeast 25% of all thermal energy in Northeast from renewable energy by 2025 75% of renewable thermal energy from sustainably-sourced forest and agricultural biomass by 2025 (balance from solar thermal and geothermal)
www.nebioheat.org/vision
Potential Economic Benefits • Conversion to biomass thermal can sustainably displace 50 million gallons of oil and propane annually by 2025. • Conversion of 40,000 homes and businesses will enable the retention of $125+ million in annual income in the NH economy instead of exporting to other economies, in addition to individual user savings of 50% or more on operating cost • By 2025, NH would have more than $1.6 billion new dollars per year injected into the regional economy
• This retention of wealth and expansion of the biomass thermal industry will result in a total of 6,500 retained and new permanent jobs
Potential Environmental Benefits • Replacing oil (a high carbon fuel) with biomass (a low carbon fuel) reduces greenhouse gas emissions that contribute to climate change • The use of biomass reduces acid rain causing sulfur and mercury emissions as compared to the heating oil it can replace • The enhanced value of biomass will contribute to healthy rural communities through improved economics and viability of forest and farm ownership
Carbon Intensity Values for Selected Heating Fuels (Draft results; Source: NESCAUM, 2010)
Pathway
Carbon Intensity (gCO2e/MJ)
Compressed Natural Gas
73.1
Liquefied Petroleum Gas (LPG)
86.9
Ultra-Low-Sulfur Diesel (ULSD)
93
Soy Biodiesel
35
Pellets from woody biomass
19.8
Public Policy Basis for Renewable Energy Incentives • Reduce reliance on foreign fossil energy; enhance national & regional energy security • Conserve energy through increased efficiency • Reduce air emissions (e.g. PM, SO2, Hg) • Reduce greenhouse gas emissions • Local sustainable economic development; JOBS • Save people $$$
Getting Biomass Thermal in RPS Programs • Renewable Portfolio Standards are the major energy policy at state level – 30+ states • Biomass electric in every state RPS • Until NH, thermal in only seven states, and very limited in scope • Equivalent treatment levels playing field with biomass electric • Encourages CHP and rewards higher efficiency
Thermal in NH RPS • Authorized for 2013-2025 • RECs awarded on MWH-BTU conversion basis, based on output of “useful thermal energy”; metering to verify • RECs valued at up to $29/MWH by 2025 • $63 million in direct incentive payments based on maximum REC value • One ton pellets = 3.8 MWHs (@ 80% output efficiency) • No minimum efficiency requirement so all biomass fuel systems and technologies will have access • Funded by electric ratepayers; utilities supported because it lowered compliance cost • Already generating significant market activity • Other northeastern states studying feasibility: VT, MA, MD, ME
How Thermal RECs Work Used with permission of FutureMetrics
Applications
School
Government
Commercial
District heat
Process needs
DHW
Greenfield Community College, Greenfield MA Installation by: Sandri Energy
Carroll County Nursing Home Complex, Ossipee NH Installed by: Biomass Commodities Corporation
White Mountain National Forest Admin. Complex, Campton NH Installed by: Thayer Corporation KOB Pellet Boiler
Pellet-fueled 100 kw Cogeneration Unit
Bulk delivery to external silo
Typical Installation External to Existing Building
Merrimack Valley Schools Wood-Chip District Heating Plant, Penacook NH Installed by: Messersmith Boiler
Industrial combustion, district heating, combined heat and power…..HUGE potential in northeast
Bulk delivery
Pneumatic bulk delivery trucks (Sandri Energy and Maine Energy Systems)
Bulk delivery to Hi Standard, Jaffrey
Examples of the Possible • SWEDEN – 40% of R/C/I space heat now provided by biomass, geothermal and solar thermal (SOURCE: SVEBIO 2008) • UPPER AUSTRIA – 90% of new residential construction now biomass and/or solar thermal (SOURCE: ProPellets Austria 2008) • DENMARK – District heating provides 50% of all R/C/I heating; renewables are 20% of this, much of it from cogeneration (SOURCE: Univ. of Rochester, 2007)
Thank you
Charlie Niebling 603-965-5434 [email protected] www.pelletheat.com
