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HomeMy WebLinkAbout4 Biomass Pilot Project Agenda Item # r - u , s .v._ r Memorandum To: Board of Directors From: Scott Terrell& Stephen Hollabaugh Subject: Truckee Biomass Pilot Project Date: July 11, 2003 Why this matter is before the Board - District staff has been working with the California Energy Commission on a grant to look at cost effective renewable energy. Approval from the Board of Directors is necessary to proceed with two issues related to this project: 1. Authorize staff to continue with a Biomass demonstration project in the Truckee area. 2. Authorize the feasibility study of a larger biomass generation unit(2-3 MW)in the Truckee area. Almost all of these issues will be paid for by the grant from the CEC. History - TDPUD was invited to participate along with several other California public power utilities in applying for California Energy Commission grant funding to look at the cost- effectiveness and feasibility of public power using renewable energy. Several public agencies throughout the State were interested and formed the Public Power Renewable Energy Action Team (PPREAT) in 2001. The "group" received approximately $6,000,000 in grant funding from the CEC. The group has since changed its name to the Public Renewable Partnership (PRP). Participants in the group have no financial obligation other than to commit some time in assisting the project leaders in gathering information for their studies. Project leaders are those contracted through the grant to perform the studies. Due to TDPUD's location in the forested mountains of the Sierras, TDPUD was asked if it would "partner' in a biomass electric generation feasibility study. Since there was no obligation other than to assist project leaders in providing data for the study, TDPUD staff agreed. There have been several delays at the State and Contract Administration level resulting in a later start date. Now the State money is flowing and project leaders want to run with all the grant-funded feasibility studies. New Information - The Truckee feasibility study is proposed to include a 15 Kilowatt biomass plant demonstration project. The study preparation involves finding a location for the plant and identifying partners. The 15 Kw biomass plant can be located and run on TDPUD property or TDPUD can partner with a customer who offers his site and staff to run •Page 1 i the plant. Other partners may include the Forest Service, the State Park Service and others looking for opportunities to dispose of their"biomass waste". The actual $150,000 plant is being paid for by the State grant funding, but there are other minor costs outside of grant funding that will be required to be paid for by the participant. These costs include: (1)A 20 by 50 foot pad (concrete slab)to place the plant and biomass storage, (2)A shelter to protect the equipment and biomass during inclement weather, (3) Interface equipment, (4)A few other minor costs and (5)About an hour of staffing to run and maintain the plant daily. Other than staffing costs, project costs are estimated at about $25,000. These costs can either be paid for by TDPUD or by a TDPUD customer interested in partnering with TDPUD. Disposers of biomass may even contribute as they would Like to have alternatives to their current disposal methods and costs. Once the biomass plant is up and running, data will be collected to determine its cost-effectiveness and feasibility. The proposed 15 Kw biomass power plant only requires about 50 pounds of biomass material per hour to operate. A plant of this size should be able to meet the electrical requirements of three homes in Truckee. The plant also produces heat as a by-product. Calculations show that the plant produces about 50,000 BTUs per hour of heat, which is enough to heat a home of approximately 1,800 square feet in Truckee. The "ideal' demonstration project might have electrical and heating requirements similar to the output of the biomass plant. At an 8 hour per day biomass plant operation, about $4,000 value of retail electricity can be produced. The biomass plant heat by-product has about a $1,500 annual value. If someone were to invest about $25,000 in this biomass pilot project they could recover their initial investment in less than 5 years. As the Truckee biomass pilot plant demonstration feasibility study is completed, further study will be performed to determine the feasibility of larger-scale biomass electric generation project for TDPUD. The 15 kW pilot study data gathering will occur for about 18 months and the plant may be left at the site for an extended, possibly infinite period of time. Staff is interested in determining the cost-effectiveness and practicality of a 2-3 Megawatt biomass plant in Truckee. Recommendation I recommend that the Board authorize TDPUD to participate in a 15 Kw biomass plant demonstration project and feasibility study of a larger biomass generation in the TDPUD service area. There is no cost to the District at this phase of the project. •Page 2 Requirements BioMax 15 - Demonstration Site Truckee/Donner Public Utility District Background: This project will demonstrate the operation of a new, small modular biopower system under development by Community Power Corporation (CPC) of Littleton, Colorado. The on-going development of this technology is the result of contributions by the US National Renewable Energy Laboratory, USDOE, California Energy Commission, the US Forest Service, Community Power Corporation, and other organizations. Gas The goal is to develop a new line of small modular Mm PO biopower systems for the 21�` Century suitable for � ose«ee�e distributed generation applications and capable of Mod e using a variety of woody biomass fuels including forest and agricultural residues to generate power 0. and heat in an environmentally acceptable manner. y CPC has designated this line of modular biopower systems as the BioMaxTm, with peak power modules from 2.5 kWe to eventually 100 kWe. The BioMax ' t system that will be demonstrated under this project Power Gene.. with Truckee/Donner will produce a peak power on Mwule wood-gas of 15 kWe. � The BioMax 15 is now at a pre-commercial stage of development. This field trial will reveal ways to strengthen the system and provide valuable inputs to guide and accelerate the product improvement and commercialization process. Objectives of the Field Demonstration: 1. Conduct a field-based demonstration of the BioMax 15 to generate power (and possibly) heat to support operations at an on-grid facility 2. Monitor the operation and performance of the BioMax 15 to provide inputs for product improvement 3. Promote the use of small modular biopower systems for on and off-grid applications in the State of California 4. Determine the economics of operating small modular biopower systems in distributed generation applications 5. Measure and compare the emissions of the BioMax system with other distributed generation power systems of the same size Demonstration Site Characteristics Location: Truckee/Donner service territory Accessibility: Highly accessible, paved road, close as possible to service center Loads: Dedicated load: Up to 15 kW, single or three phase, daytime load, no motor larger than 10 hp Parallel with Grid: No restrictions Hours of Operation: Up to 8 hours per day Applications: Ideal: Grid parallel with main Truckee/Donner service center Possible: Water pumping station, secondary service center, rural enterprise, e.g., wood working shop, green house, etc. On-site O&M Labor: Two persons to be trained and capable of independent operation and maintenance of the BioMax system. One person assigned as prime attendant and one person as back-up. Daily O&M: up to 1 hour of attendant labor for: - wood chip loading and sorting - component check list - periodic vacuuming of filters - disposal of bags of char/ash from filters (approx. 1, 40 gal. garbage bag each day) - operational data downloading from control system Weekly O&M: 1 hour of attendant labor for wood chip preparation and Handling (assumes use of 4 cylinder chipper with wood scraps on site) Facility / Equipment Requirements: Shelter: BioMax System: Simple building, min. 20ft x 30ft, paved floor, min. 12 ft clearance, powered roof ventilator, sliding doors front and rear. Storage shelves and cabinet for tools and maintenance supplies Wood Chipping, Storage and Handling: Periodic use of 4 cylinder wood chipper, covered area for wood chip storage (20 ft. x 20 ft.) Responsibilities of Parties Community Power Corporation will provide one BioMax 15 including the Gas Production Module, Power Generation Module, Dry/Feeder Module and Grid Interface Module. CPC will transport and install the system, provide on-site training for attendants and will provide full system warranty and technical support throughout the duration of CPC's contract. The Site Sponsor will provide everything required to house, connect, fuel, operate and maintain the BioMax system on site during the period of the field trial. Any thermal applications (CHP) and emissions measurements will be the responsibility of the Site Sponsor. 2 -------------­ ......................... ............ BioMax 15 SMALL MODULAR BIOPOWER SYSTEM A 81benergy Innovation From Community Power Corporation Access to reliable, utility-grade electricity is key to improving the quality and economy of life of many rural communities throughout the world. Conventional approaches to rural electrification such as grid extension or small diesel generators are increasingly prohibitive in cost and are often environmentally harmful. CPC's new BioMax'n small modular biopower system offers an affordable and environmentally friendly means of using a variety of local forest and agricultural biomass residues to generate the right amount of electricity and thermal energy needed by most rural enterprises and communities. CPC's New BioMa)CII: An Environmentally Friendly Alternative to Diesel Gensets Beginning in 1999, CPC joined with the US National Renewable Gas Energy Laboratory (NREL) to design and bring to market a new Protlucuon generation of small modular biopower systems. The first BioMax Dryer/Feeder Module prototypes rated at 15 kWe have been deployed in the Philippines and in six locations in the USA. CPC's fully automated BioMax system can use a variety of biomass fuels to generate electricity and thermal energy for rural communities, enterprises and social services such as schools, 5 . medical clinics, water pumping, government offices, Power .5021E� Gene'td,, communications, etc. CPC's BioMax system is designed as a "green" alternative to the conventional fossil fuel generator and to free the community from dependence on the supply and high cost of imported fossil fuels such as gasoline or diesel. By eliminating the need for importing diesel fuel, the community's financial resources are retained in the community and there is no environmental damage from exhaust emissions or spillage of diesel fuel. From Biomass Residues to High Value Electricity and Heat for On- and Off-grid Customers CPC's new power gasifier technology incorporates the latest microprocessor control technology and gasifier design to achieve S� Z unparallel levels of clean-gas performance, flexibility and environmental friendliness. J 4 d CPC's advanced design downdraft gasifier with fully integrated an controls, produces an extremely clean combustible gas from a variety of woody fuels. The 'wood gas" is conditioned and fed into a standard internal combustion engine genset for conversion to mechanical, electrical, and thermal power. Future BioMax systems will SioMax Automatic Control System Screen incorporate Stirling engines, solid oxide fuel cells and microturbines. Features • Electrical output in blocks from 5kWe to 50kWe; 120 and 240 VAC;50 and 60 His • Combined heat and power operation for rural electrification and distributed generation applications • Environmentally friendly,non-condensing system without water scrubbers or liquid effluents • Fully automatic,closed-loop control of all components including gasifier,gas conditioning and genset • Dispatchable power within 30 seconds of auto-startup-uses no diesel fuel or gasoline • Fuel flexible:wood chips,wood pellets,coconut shells,corn,corncobs,nutshells.etc. Modular,transportable,no need for on-site buildings or waste water disposal,one day installation _Cp� unity Power Corporation 41' PROM l„rte 7001 Community Power Corporation Energy Systems for Sustainable Power What is a BioMax? BioMax is the trade name used by Community Power Corporation for its family of trailer- mounted, biopower systems that convert 3 woody biomass residues to electricity and j thermal energy. The current,pre-commercial BioMax poweron, : systems convert wood chips, saw dust pellets or nut shells to 15 kWe, either single or three SQ'I phase, utility-grade power. BioMax systems capable of generating from 2.5kWe to 50kWe j t are under development. i What is biomass energy? Biomass energy is a form of solar energy that is released when the stored energy of sunlight is converted to energy. About 1% of the solar energy striking a plant is stored as energy through the photosynthesis process. When the chemical bonds between adjacent carbon, hydrogen, and oxygen molecules are broken by digestion, combustion, or decomposition these substances release stored energy. The biomass resource is made available on a renewable basis through natural processes, or it can be made available as a byproduct of human activities. According to the Michigan Biomass Energy Program, "biomass resources are quite significant, as approximately 100 terawatt-years of chemical energy are stored in plants each year (an amount of energy equivalent to ten times that of humanity's current energy needs)." What types of biomass resources will the BioMax convert to usable energy? 'The BioMax is designed to use a wide variety of woody residues from the agricultural and forest industries. To date, we have successfully converted a variety of biomass residues to electricity and heat including wood chips from hard and soft wood, sawdust pellets, coconut shells, pecan shells, corn and many others. We have a DOE funded program underway to test poultry litter as a fuel. Virtually any form of leafy biomass can be used if it is densified by cubing or pelletizing. What are the factors contributing to a good biomass resource? A good biomass resource has the following characteristics: Available in large quantity to assure long-term sustainability Low moisture content Dense Small, consistent size, able to flow well Low ash content Low/no cost, not subject to large price swings Available locally, not requiring shipment long distances Non-toxic, able to be handled by humans As a rule-of-thumb, woody types of biomass are good fuel. These include wood chips, manufactured pellets, and many kinds of nutshells. Light, low-density fuels such as grasses; fuels with high silica content such as rice husks; and fuels with high moisture content such as bagasse are more difficult to use as fuel and must be first densified. Why was the BioMax developed? The US Department of Energy issued a Phase One contract to CPC in March 1998 to conduct a market assessment of a Small Modular Biopower(SMB) system in the range of 5kW to 5 MW. A key requirement of the program was the desire for a standard power system with the potential for high volume manufacture. CPC is a leader in the electrification of rural communities using renewable energy, so the company assessed the requirements for electrification of off-grid communities using an SMB system in three countries(Philippines, Brazil and Indonesia). CPC was awarded a Phase Two SMB system contract in November 1999 to develop and demonstrate a 12 1/2 kWe prototype in the Philippines with its partner Shell Renewables What are some of the unique features of the BioMax? The following is a partial list of features that make the BioMax unique compared to other small bioenergy systems: Fully automated start-up, operation and shutdown Follow loads in a ratio of 4:1 from peak to base Extremely low tars in raw gas Low NOx and SOx Designed for combined heat and power applications Modular, able to be paralleled with other BioMax power systems 2 .......................................... ... ....... ..................... ......... .. ........­­­ 1­....I ...­­...�.­...I........ �­-��.- '11--.�............... Mobile, able to be quickly installed and relocated, small footprint Designed for high-volume, low-cost manufacture in most countries of the world using locally available components Can operate in a single or dual fuel mode ---biomass and a fossil fuel, either one at a time or both together. Lower capital cost than an equivalent energy PV/diesel or a Wind/diesel hybrid where the average wind speed is less than 5 M/sec Meets World Bank environmental requirements for biomass power systems Adaptable to a range of prime movers such as internal engines, Stirling engines, micro-turbines and fuel cells. How does the BioMax generate electricity? The heart of the BioMax is a downdraft gasifier that converts biomass to a low BTU (120— 160 BTU/cubic foot)producer gas, a mixture of fuel gases such as hydrogen, carbon monoxide and methane. Producer gas is converted to electricity as follows: Internal combustion engine: gas is ignited in cylinder and crankshaft spins an electrical generator. Stirling engine: gas is combusted in a radiant burner that heats the head and transfers heat to an internal working fluid for conversion to electricity via a linear alternator. Micro-turbine: gas is combusted in a turbine and converted to AC electricity via a power conditioning system Fuel cell: gas constituents are chemically combined in the fuel cell to create electricity. Is the BioMax safe to operate? Yes. In the very rare chance of premature gas ignition, the danger of explosion is prevented by using 10 psi rupture disks to prevent high pressure from building up in the system. What is its operating efficiency? Target electrical efficiencies vary by the choice of prime mover as follows: • Internal combustion engine: —20% • Stirling engine: —15% • Micro-turbine: —25% • Fuel cell: —45% When the waste heat can be used in a combined heat and power mode, the overall efficiency can approach 90% in many applications. ............. ..... .............. .. ........ ....... ... ...... ... ............... ... .... ,"__....... . .................. What happens with the heat that is generated? In a straight electrical application,the heat is not used. In a combined heat and power mode (CHP), a significant amount of the heat is captured for use elsewhere. Heat is typically captured through the use of a conventional heat exchanger. Maximum economic value is received if the biomass is free and the heat is used to displace thermal energy from high priced natural gas or propane. What are the waste products and emissions of the BioMax? The BioMax uses a dry system to cool and clean the producer gas therefore eliminating the need to process large quantities of contaminated water as found in wet scrubbers. Solids collected are processed as follows: Ash and char—stored and periodically combusted to ash that can be dispersed in the soil as an amendment Tars and soot—recycled back through the gasifier Expended filters—stored and periodically combusted Who is likely to benefit from the BioMax? There are many groups that will benefit from the use of the BioMax. The groups are distinguished by their objectives. 1. Displace other fuels. Typically these customers will have access to biomass fuel that is significantly lower cost than existing fossil fuel or electricity. Example: Greenhouse owner that is able to displace natural gas. 2. Develop alternate uses for biomass: These customers will have access to an abundance of biomass and will be looking to develop applications for its use either as a source of revenue or to avoid other costs. Example: Forest Service desire to reduce forest fuel loading that could otherwise lead to degradation of forest health or increase the potential of forest fires. 3. Avoid disposal costs: Customers in this category will be able to use the biomass to minimize costs that might result from rules and regulations that affect the disposal of biomass. Example: convert wood pallets to on-site energy as opposed to shipping to a distant landfill. 4. Generate both heat and power: Use biomass to provide both electrical and thermal energy. Example: Small processing plant, such as a grain mill that produces biomass waste that could be used for powering equipment and drying the grain. 5. Educate potential users: Use a small, portable biopower system as an educational tool. Example: Trailer mounted system that a Biomass Energy Agency could use to educate regional stakeholders. 6. Research the feasibility of biopower: Perform pilot experiments on a lab-based biopower system to become familiar with the technology and to determine its feasibility for deployment in a particular application. 4 Can the output capacity of the BioMax be scaled up or down from the current size? Yes. The key is the size of the prime move genset. We are developing internal combustion systems with peak power outputs of a 2.5kW, 15 kW and 50kW. Even though larger internal combustion engines exist, the maximum size system we have planned is 100 kW. Is the BioMax complicated to operate? No, due to the fully automated feature of the BioMax. However, it does require training in the operation and maintenance. Anyone who is qualified to operate a diesel engine genset can operate a BioMax. Does the BioMax require a full-time operator? No, but there are a variety of tasks involved mainly with the feedstock supply and maintenance that require periodic operator attention. Can the BioMax run continuously? The BioMax system is designed to run continuously,however,to date, this feature has not been demonstrated beyond runs of 40 hours. Is the BioMax a commercial product? At this stage it is a pre-commercial product that was developed to confirm its feasibility for application to both domestic and international markets. When will it be commercial? The BioMax should be commercially available in mid-2004. Where will it be manufactured? That remains to be determined,however, we expect to have manufacturing operations in North America, Asia, Latin America and Europe at a minimum. How much does the BioMax cost? For current versions of the pre-commercial BioMax, contact CPC to determine the cost of a system meeting your needs. For the commercial system, cost will be a function of the prime mover,capacity and quantity. For internal combustion systems our target cost is between$1,500(kW and $2,000(kW. 5 Is the BioMax cost effective? Yes—in many applications, however, each application should be carefully analyzed to determine the advantages and disadvantages. The analysis should take into account such parameters as the intended application, installed capital cost, operating cost(mainly labor and fuel cost), hours of daily operation, peak load and daily energy requirement, availability of feedstock, requirements for sizing,drying and handling of the feedstock, costs associated with disposal of a potential supply of feedstock, cost of alternatives such as grid power, diesel power, three phase commercial power, life-cycle costs, demand charges, etc. For example a 35 kWhld BioMax enjoys a life cycle advantage over standalone generators and PVILPG hybrids when 24-hour AC power is required. The analysis showed the BioMax to be relatively insensitive to large swings in fossil fuel and biomass price. Who are competitors for the BioMax? Primary competitors are standard, fossil fueled, engine generators of which there are many brands throughout the world. In the biomass arena, there are very few competitors. In the US, we are not aware of any in our size range. In India, there are several companies who have experience in small biopower systems, however the systems tend to be larger, not modular, not automated, and unable to pass US emissions requirements. We believe there a few companies in Europe that offer similar sized systems, however, they do not have a market presence in the US or in any of the developing country markets where we have business interests. Is there a large market for small modular biopower? The BioMax is designed to compete against engine generators less than 200 kW. The Energy Generation Systems Association reports that global annual sales of diesel engine gensets less than 200 kW exceed 300,000 units with a total market value of nearly$I OB. How will CPC achieve commercial status for the BioMax ? CPC is implementing a$2 million contract with the US Department of EnergylNREL and the US Forest Service to further develop the BioMax line of biopower systems and conduct a one year product validation program at six demonstration sites in the US and in foreign countries. Under this program CPC will manufacture and sell systems to multiple parties, round out its BioMax product line, conduct field demonstrations, monitor system performance to improve operation,reduce manufacturing costs, and select a manufacturing partner. At the end of this 2 %year project, CPC will be ready for a commercial roll out of its BioMax line of modular biopower systems. 6 -- ---- -- - - - Examples of BioMax Installations BioMax 15 Ruidoso, NM BioMax 15 Walden, CO x 5� e� SBS Wood Shavings—Power for operating a North Park High School—Power and Heat for line of machinery a vocational greenhouse 7