A Utility Perspective on Renewables and Biomass Doug Boylan – Southern Company
Traditional Utility Goals –Low cost, reliable energy provider Selected technologies –Hydro, nuclear, coal, natural gas
Drivers Toward Renewables Green house gas mitigation Market demand for Green Power Government mandated Renewable Portfolio Standards (RPS) Seeking lowest cost renewable energy options
Seeking Low Cost Large Scale Options for RPS (Southeast US) Solar - $$$ Wind – Good, but limited in resource Landfill gas – Good, but limited resource Small hydro – Good, but limited resource Biomass – Good? Purchase Credits – Sets renewable cost cap
Biomass Options Co-firing Uses existing plant Displaces coal directly Reduced capital costs Application limited by ash and operational considerations Co-Mill – limited percentage (3-5%) Direct Injection – Higher percentage ( %), higher cost
Biomass Options Gasification Higher capital cost Higher efficiency Displaces a higher cost fuel Greater potential to meet large RPS generation needs
GrassWood Fuel Cost ($/MMBtu)3 – 42 – 3.5 Moisture10-15%20-60% MetalsLowLow SulfurLowLow NOxModerate NLow N Slagging and FoulingHigh KModerate K Catalyst effectHigh?Moderate? Ash sales? Non-specLow Non-spec Co-fire ¢/kWh (Est.)2.6 – 3.00 – 2.6 Gasification ¢/kWh (Est.) ? 1.0 – 3.0 GrassWood Fuel Cost ($/MMBtu)3 – 42 – 3.5 Moisture10-15%20-60% MetalsLowLow SulfurLowLow NOxModerate NLow N Slagging and FoulingHigh KModerate K Catalyst effectHigh?Moderate? Ash sales? Non-specLow Non-spec Co-fire ¢/kWh (Est.)2.6 – 3.00 – 2.6 Gasification ¢/kWh (Est.) ? 1.0 – 3.0 Contrast Wood and Grass as Fuels
Biomass - Closed and Open Loop Biomass will probably need tax or other incentives to compete Tax incentives have tended to favor Closed Loop Grass probably has the best opportunity to be Closed Loop
Conclusions From the Utility perspective: Biomass has potential to supply RPS requirements Grasses and wood each have advantages and disadvantages Utility desire is to keep funds in our service area Biomass will probably need tax credits or other support to be viable for renewable energy
Questions?
Costs of Co-Fire