essgroup

www.essgroup.comOctober 28, 2008

C&D DERIVED BIOMASS ENERGY FACILITIES

DEVELOPMENT & OPERATIONAL ISSUES

PRESENTED BY:Dammon M. Frecker

Vice President, Energy & Industrial ServicesESS Group, Inc.Wellesley, MA781.489.1146

[email protected]

OVERVIEW

●Project Concepts

●Motivators & Incentives

●Licensing Requirements

●Project Developments & Operating Concerns

●Existing & Proposed Projects

PROJECT CONCEPTS

●PROJECT SIZE: Typically 15 – 40 MW

• Balance revenue, fuel “risk”, technology and impact considerations.

15 – 30 acres• Power island, fuel receiving and storage, water

treatment, ash handling, administration

●FUEL REQUIREMENTS 20 MW Plant => ~600 TPD (~200,000 TPY) “Clean”/”unadulterated” wood? Limits on C&D Wood fraction?

PROJECT CPROJECT PPPROJECT CONCEPTS

http://www.energyproducts.com/fluidized_bed_boilers.htm

FLUIDIZED BED

COMBUSTOR

PROJECT CONCEPTS

• IMPACT MITIGATION Enclosed wood storage and conveyors Pollution Control Train

• SNCR (SCR?) for NOx Control• ESP, Fabric Filter (Baghouse) for PM Control• Scrubbers (?) for acid gas control• Carbon Injection (?) for metals control

Enclosed ash handling Enclosed wood grinding Dry Cooling? Zero Liquid Discharge? Rail Access? LOCATION, LOCATION, LOCATION

MOTIVATORS & INCENTIVES

●MassDEP Waste Ban Increased wood supply?

●Renewable Energy Requirements Programs in place in MA, CT and NY Provide added revenue stream

●Lower Cost Fuel Supply Increasing costs of oil and gas Opportunity for C&D wood tipping fee?


●Climate Change/Greenhouse Gas Initiatives Biomass combustion considered “carbon

neutral” Opportunity for offsets?

●Production Tax Credits Open-Loop Biomass approved ($0.015/kW-hr)


●Fuel Diversity Increased reliance on natural gas Concerns with gas supply and oil costs

●Energy Demand ISO-NE forecasted potential shortfalls in ’07

and beyond Motivate financial markets Ability to feed load pockets?

LICENSING REQUIREMENTS

●Environmental Impact Assessment (e.g. MEPA) Potential triggers:

• Energy facility > 25 MW (ENF, EIR if required by Secretary)• Major Source of Air Emissions (ENF, EIR if required by Secretary)• Solid waste processing, combustion, etc. > 150 TPD (ENF & EIR)• Land Alteration> 25 acres• Rare species, hist/arch, ACEC – things to watch out for

Other agencies cannot issue permits until MEPA is complete May take 6-12 months depending on Sectary’s requirements

and availability of information.

●Solid Waste Site Assignment/Permitting Not required if:

• No processing• Valid air permit• BUD

LICENSING REQUIREMENTS

●Air Permitting Major CPA & Nonattainment Review (MassDEP) PSD Review (EPA in MA and NY) BACT, LAER, Emissions Offsets Up to 190 day application review period Air Toxics Impacts Boiler MACT

●Local Land Use & Zoning Stacks (height, visual impacts, visible plumes) Odors? Traffic (30-40 trucks per day @ 20 MW + employees,

other)

●Water Supply & Discharge 500-800K GPD Consumption (wet cooling)

OTHER ENVIRONMENTAL CONCERNS

●Is it “Incineration”? Moratorium New Source Performance Standards (Sub CCCC - CISWI)

●Is it Solid Waste? Mass – probably no, other states – probably yes

●Is it Hazardous Waste?

●Qualified Renewable or Legislated Illegal?

●Is the wood “clean” (enough)?

DEVELOPMENT CONCERNS

●Securing Land

●Time for Permitting

●Purchase Power Agreements

●Long Term REC Agreements Supply and price uncertainty Regulatory uncertainty

●Securing the fuel supply

●Financing! ($40-80 MM)

OPERATIONAL CONCERNS

●Maintaining Fuel Quality Boiler fouling Emissions Ash Quality

●Dispatch Order Frequency of startup and shutdown

●Wood pile management

EXISTING FACILITIES

●BioEnergy, Hopkinton, NH 12.5 MW plant Granted permit for C&D in 1984 Significant local opposition, but demonstrated compliance No Advisory Ruling or SOQ

●Boralex, Stratton Energy Energy, ME 45 MW plant Re-tooling Advisory Ruling June, 2004 25% C&D

●Greenville Steam Company, ME Re-tooling (BFB) with Advisory Ruling & SOQ

PROPOSED FACILITIES

●GenPower – Hinsdale, NH & Uxbridge, MA Two different Advisory Rulings Emissions not specified Projects announced with some opposition

●Russel Biomass, Massachusetts 50 MW BFB “Clean wood waste e.g. construction & demolition wood

waste” Emissions not specified

●EcoPower, Massachusetts 20 MW plant Advisory Ruling including emissions

Documents

essgroup