Renewable Thermal Energy Charles Agnew
Industrial Client’s Perspective: Renewable Thermal Energy Charles Agnew Vice President, Technical Sales Biomass Commodities Corporation
Commercial & Industrial Pellet Heating Systems PRESENTATION: EBC Jan. 8, 2013
Presentation Objectives • BCC Intro and equipment technology • Case studies – a few BCC installation highlights in NH • Issues facilities may need to deal with that are different from conventional fossil fuels • Complications/issues related to switching over from conventional fuels to biomass • Uses of RECs and other incentives as applied to industrial pellet systems, and issues facing facilities required to benefit from these incentives
Biomass Commodities Corporation • • • • • • •
Wood pellet industry specialists for 20+ years Commercial/Industrial pellet boiler installation & service Wood pellet manufacturing – construction & operation Value added distributor of pellet equipment technologies Project Management, Manufacturer Rep Offices in Williamstown MA, Portland ME Member of:
Commercial Wood Pellet Stoker Boiler
Industrial Wood Pellet Stoker Boiler
Case Studies: Mascenic Regional High School • Installed and operating since 2009 • Project was initiated as part of a larger project renovating the high school and construction of a new elementary school • 3,500,000 BTU Boiler Capacity • 42 Tons pellet storage capacity • Displacing ~70,000 gallons heating oil equivalent • Central heating system for three buildings • Heats 170,000 square feet of school spaces • Paid for using municipal bonding • Installed cost ~$350k • Payback anticipated within 3-5 years • Second permitted wood pellet boiler in NH • Regular state reporting requirements • Fuel produced within 15 miles of facility
Case Studies: NH Ball Bearing • Installed and operating since 2008 • Project was initiated since existing oil fired boilers required replacement • (2) 1,900,000 BTU Boilers • 42 Tons pellet storage capacity • Displacing ~70,000 gallons heating oil equivalent • Central heating system for three buildings • Heats 200,000 square feet of manufacturing space • Paid for in house • Installed cost ~$450k • Payback anticipated within 3-5 years • First permitted wood pellet boiler in NH • Regular state reporting requirements • Fuel produced within 10 miles of facility
Case Studies: Dartmouth Sachem Village
• Installed and operating since 2008 • Project was initiated as new construction • 1,900,000 BTU Boiler Capacity • 42 Tons pellet storage capacity • Displacing ~60,000 gallons propane equivalent • Central heating system for 104 residential units • Installed cost ~$350k • Payback anticipated within 3-5 years • Regular state reporting requirements • Fuel produced within 100 miles of facility
Relevant Differences Between Traditional (fossil) Fuels vs. Wood Pellets • • • • • •
Early stage of adoption Low pellet installation density Fuel energy density Boiler systems require more user involvement Must have trained operators on site Maintenance: depends on sophistication of equipment and fuel quality • Ash: requires burner cleaning, ash removal and disposal
Challenges in Switching to Pellets • • • • • • •
Simply changing fuel source, not energy distribution Space Permitting Financing high capital costs Long term thinking – future energy prices, availability Relatively short history of industry Perception of pellet fuel costs and availability – bagged/consumer market vs bulk
REC Project Issues • Uncertainty in REC value • Unfamiliarity with REC market • REC Compliance – Admin costs – Metering – Reporting
• Aggregation • Budgeting: assume the worst case • Huge potential in savings for pellet consumers
COST/MMBTU $35.00
Heating Fuel Cost Comparison (Based on current prices, Oct 2012)
$30.00
$32.20
$27.57
$25.00
$22.92
$20.00
$15.00
$10.50
$11.76
$13.55
$10.00
$5.00
$0.00
Wood Chips (40%) $65/Ton
Natural Gas $1.00/Therm
Wood Pellets $190/ton
#6 Fuel Oil $2.75/Gal
#2 Fuel Oil $3.25/Gal
FUEL TYPE/COST PER UNIT
Propane $2.50/Gal
Pellet Cost/MMBTU with REC Income
COST/MMBTU $16.00
$13.55
$14.00
$12.19 $12.00
$10.84
$9.48
$10.00
$8.13 $8.00
$6.77
$6.00
$4.00
$2.00
$0.00
REC Value $25/MWH
REC Value $20/MWH
REC Value $15/MWH
REC Value $10/MWH
REC Value $5/MWH
Wood Pellets $190/ton
FUEL COST CONSIDERING REC INCOME
BCC Contact Charlie Agnew 58 Fore St, PO Box 8803, Portland, ME 04104 [email protected] 207-576-3490 Biomass Commodities Corporation 227 Adams Rd, Williamstown MA 01267 [email protected] 413-458-5326 www.biomasscommodities.com
Commercial & Industrial Pellet Heating Systems PRESENTATION: EBC Jan. 8, 2013
Presentation Objectives • BCC Intro and equipment technology • Case studies – a few BCC installation highlights in NH • Issues facilities may need to deal with that are different from conventional fossil fuels • Complications/issues related to switching over from conventional fuels to biomass • Uses of RECs and other incentives as applied to industrial pellet systems, and issues facing facilities required to benefit from these incentives
Biomass Commodities Corporation • • • • • • •
Wood pellet industry specialists for 20+ years Commercial/Industrial pellet boiler installation & service Wood pellet manufacturing – construction & operation Value added distributor of pellet equipment technologies Project Management, Manufacturer Rep Offices in Williamstown MA, Portland ME Member of:
Commercial Wood Pellet Stoker Boiler
Industrial Wood Pellet Stoker Boiler
Case Studies: Mascenic Regional High School • Installed and operating since 2009 • Project was initiated as part of a larger project renovating the high school and construction of a new elementary school • 3,500,000 BTU Boiler Capacity • 42 Tons pellet storage capacity • Displacing ~70,000 gallons heating oil equivalent • Central heating system for three buildings • Heats 170,000 square feet of school spaces • Paid for using municipal bonding • Installed cost ~$350k • Payback anticipated within 3-5 years • Second permitted wood pellet boiler in NH • Regular state reporting requirements • Fuel produced within 15 miles of facility
Case Studies: NH Ball Bearing • Installed and operating since 2008 • Project was initiated since existing oil fired boilers required replacement • (2) 1,900,000 BTU Boilers • 42 Tons pellet storage capacity • Displacing ~70,000 gallons heating oil equivalent • Central heating system for three buildings • Heats 200,000 square feet of manufacturing space • Paid for in house • Installed cost ~$450k • Payback anticipated within 3-5 years • First permitted wood pellet boiler in NH • Regular state reporting requirements • Fuel produced within 10 miles of facility
Case Studies: Dartmouth Sachem Village
• Installed and operating since 2008 • Project was initiated as new construction • 1,900,000 BTU Boiler Capacity • 42 Tons pellet storage capacity • Displacing ~60,000 gallons propane equivalent • Central heating system for 104 residential units • Installed cost ~$350k • Payback anticipated within 3-5 years • Regular state reporting requirements • Fuel produced within 100 miles of facility
Relevant Differences Between Traditional (fossil) Fuels vs. Wood Pellets • • • • • •
Early stage of adoption Low pellet installation density Fuel energy density Boiler systems require more user involvement Must have trained operators on site Maintenance: depends on sophistication of equipment and fuel quality • Ash: requires burner cleaning, ash removal and disposal
Challenges in Switching to Pellets • • • • • • •
Simply changing fuel source, not energy distribution Space Permitting Financing high capital costs Long term thinking – future energy prices, availability Relatively short history of industry Perception of pellet fuel costs and availability – bagged/consumer market vs bulk
REC Project Issues • Uncertainty in REC value • Unfamiliarity with REC market • REC Compliance – Admin costs – Metering – Reporting
• Aggregation • Budgeting: assume the worst case • Huge potential in savings for pellet consumers
COST/MMBTU $35.00
Heating Fuel Cost Comparison (Based on current prices, Oct 2012)
$30.00
$32.20
$27.57
$25.00
$22.92
$20.00
$15.00
$10.50
$11.76
$13.55
$10.00
$5.00
$0.00
Wood Chips (40%) $65/Ton
Natural Gas $1.00/Therm
Wood Pellets $190/ton
#6 Fuel Oil $2.75/Gal
#2 Fuel Oil $3.25/Gal
FUEL TYPE/COST PER UNIT
Propane $2.50/Gal
Pellet Cost/MMBTU with REC Income
COST/MMBTU $16.00
$13.55
$14.00
$12.19 $12.00
$10.84
$9.48
$10.00
$8.13 $8.00
$6.77
$6.00
$4.00
$2.00
$0.00
REC Value $25/MWH
REC Value $20/MWH
REC Value $15/MWH
REC Value $10/MWH
REC Value $5/MWH
Wood Pellets $190/ton
FUEL COST CONSIDERING REC INCOME
BCC Contact Charlie Agnew 58 Fore St, PO Box 8803, Portland, ME 04104 [email protected] 207-576-3490 Biomass Commodities Corporation 227 Adams Rd, Williamstown MA 01267 [email protected] 413-458-5326 www.biomasscommodities.com
