Wednesday, January 18, 2012

A Tale of Two Cities


As developers propose new projects across the United States, more than just the feedstock and financial angles need to be examined. We look at two different towns and how community support can ultimately make or break a project. 

HARLEYVILLE, S.C. – Construction is beginning for a $46 million biomass plant that will burn 280,000 tons of logging debris per year and generate 15 MW of electricity. The plant is being developed by Southeast Renewable Energy, which has other facilities in the Palmetto State and will provide 20 new jobs in an area where unemployment nears 10 percent.

Locations of Southeast Renewable Energy facilities in
South Carolina. Courtesy: Biomass Magazine. 
County leaders as well as state and federal environmental regulators have embraced the project. Dorchester County is giving fee-in-lieu-of tax incentives and contracted to supply the plant with 20 tons per year of debris wood from county operations. Moncks Corner-based utility Santee Cooper plans to buy power from the plant after closing two of its smaller coal-burning plants due to new EPA air pollution regulations.

Locals in Harleyville are generally in support of the project, despite the fact that it will be within one mile of the town of approximately 2,400. Although there are still some questions about the level of carbon dioxide, many residents see it as the lesser of two evils. The project is exempt from EPA CO2 regulations due to the fact that it has been qualified as a “minor emitter” rather than a “major emitter.” The designation has raised some eyebrows, but most still prefer the new plant to coal-burning options.

MISSOULA, MONT. – University of Montana announced it was scrapping plans to build a $16 million biomass gasification boiler on campus at the end of 2011. University President Royce Engstrom cited  "deteriorating discourse” as a large reason for the decision (AP).
Plan for University of Montana biomass gasifier.
Courtesy: Biomass Magazine

The proposed plant would have used trees killed by bark beetles as its feedstock to produce heat and power for the campus. Despite the fact that it would have been the cleanest wood-fired system in the state, several prominent members of the Missoula community spoke out against the project. Concerns were raised about how the rise in emissions over the current natural gas plant would affect the community of more than 66,000 people. The new plant would emit twice as much nitrogen dioxide and three times as much particulate matter (The Missoulian, 11/18/11).

The University offered to pay for additional pollution-control testing in November after the Missoula City-County Air Pollution Control Board postponed its vote on whether to permit the project.

Better BTU Take: We liked both projects and think the location had a lot to do with the outcome. Although there would have been an increase in emissions with the change from natural gas to biomass, it would still have been extremely low. The numbers on the lefthand side of a scale can frequently make small changes look large.

Additionally, it makes more sense to seek out areas that are less densely populated, as it will reduce the risk of controversy and bad media coverage. The political and cultural environment in Missoula wasn’t right and since the town already had a natural gas facility, its conversion to biomass wasn’t deemed as pressing as in areas with coal-burning plants.

The moral of the story: Concentrate on displacing coal-fired electric generation over natural gas boilers. Begin with sparsely populated areas in the country and work your way inwards to the metropolitan areas.

For more on Southeast Renewable Energy’s project in Harleyville, check out this article from The Post and Courier, in Charleston, S.C.

For more information University of Montana’s failed project, see the article from The Missoulian from 11/18/2011 and the Associated Press write-up on KULR-8. 

Tuesday, December 13, 2011

Liquid Fuel: The Holy Grail of Biomass

Imagine a world where the conflict in the Middle East doesn’t determine the price of filling up your car in America. According to Sundrop Fuels, it could be a reality sooner than you think.

Image courtesy of Waste Management World. 
Although only in business for three years, Sundrop Fuels is already making big strides in the advancement of “green gasoline.” Based in Colorado, the company produces advanced biofuels by gasifying cellulosic feedstock. The result is a clean renewable form of fuel that can be used in combustion engines, such as automobiles. 


And now Sundrop has a site for its inaugural facility. The company announced on Nov. 22, 2011 that it has purchased 1,200 acres of land near Alexandria, La. to build its first production facility. Aiming to be running at full speed by 2014, Sundrop Fuels estimates it will be able to produce close to 50 million gallons of “green gasoline” annually.

Unlike similar projects in the liquid fuel experiment, Sundrop Fuels hasn’t received federal loans to subsidize its project. The state is allowing the sale of tax-exempt private activity bonds and will offer standard performance-based incentives for the 150 new jobs the plant will bring to Alexandria, but both of these initiatives involve no risk to the taxpayer. This comes as a relief to many who are familiar with the $156 million loans the now-defunct Range Fuels received for its failed project in Mississippi.

So where is the money coming from for this $450-500 million facility? Chesapeake Energy Company became a 50 percent stakeholder in the company in July with a $155 million investment. Oak Investment Partners and Kleiner Perkins Caufield & Byers have also made $20 million investments and hold spots on the company’s Board of Directors.

While the forward motion on the project is exciting, many experts in the industry feel we are still at least a decade out from seeing any measurable results. The recent announcement of Range Fuel’s bankruptcy also serves as a reminder that we are still in the pioneering stages of this industry.

Better BTU Take: Big bets by big guys makes this a project worth following. 

Tuesday, December 6, 2011

Waste Conversion Congress on the West Coast

The Better BTU boarded a plane headed west on Monday, headed for San Jose, Calif. and the Waste Conversion Congress. Taking place at the Convention Plaza Hotel and billed as a "thought leadership conference and an unbiased forum" we are excited to hear from experts in our rapidly growing field.

But don't miss us too much! We're tweeting live from the conference and will be posting reports and our thoughts on what we're learning twice a day on a blog we set up specifically for the occasion!

Follow us on Twitter @BetterBTU and sign up for our blog updates to be sent straight to your email at http://thebetterbtu.blogspot.com.

Thursday, December 1, 2011

Taylor Made

Jim Taylor (left) with Sen. Charles Schumer D-N.Y.
 on Dec. 6, 2010. Courtesy: MIDHUDSONEWS.CO
The construction on Taylor Biomass Energy’s 20-megawatt  biomass gasification plant in Montgomery, N.Y. is a project that has been over a decade in the making for company president and CEO Jim Taylor.

Taylor, who owns and operates Taylor Recycling, has been looking for a way to expand its capabilities. Running a gasification plant next door allows Taylor to process wood waste, C&D waste and MSW – enough to power approximately 27,000 homes in New York.

With the help of a $100 million loan guarantee from the U.S. DOE, pending due diligence, and the ability to utilize a 30 percent federal grant (Recovery Act, 1603), Taylor and his team were able to break ground on their vision on Dec. 6, 2010.

Biomass Magazine reports that start-up and commissioning of the facility is slated for the last quarter of 2012. Although an article from The Times Herald-Democrat written in late 2005 discusses Taylor’s plan to build gasifiers on 20 different locations, there is currently no information on the gasification system on the Taylor Biomass Energy website (www. taylorrecycling.com).

Building the first on his own site solves the problem of “who wants to go first.” With a $50 million price tag, investors want to see results before they lay out the funds.

“The pressure’s on to get one of these up and running,” Taylor is quoted in the Times Herald-Democrat article originally published on Oct. 2, 2005. “It’ll be a huge success when we get this first one operating.”

Taylor, who has been a large player in the movement to dispose of all the debris that was left over from the 9/11 attack, has been in communication with influential members of the New Orleans community about building a gasification plant down South to help expedite the Hurricane Katrina cleanup.

But of course, it all depends on getting the first one up and operating. Better BTU is interested, and will continue to bring you updates.

Sunday, November 20, 2011

S4 Energy uses InEnTec for Waste Destruction at Veolia Plant in Port Arthur Texas

 
S4 Energy is a joint venture between Waste Management and InEnTec.   As a plasma waste destruction, it is expensive (> $ 5,000 per installed kw) however energy production is a secondary mission, it's business model is based on waste destruction.

They have a plant up and running at Veolia's Port Arthur facility.  The Better BTU is tracking this and other "waste destruction" centric projects.  These projects are profitable when the tip fee is high (> $ 80 per ton) and may serve to advance commercial adoption of gasification.

The emissions profile is wonderful. Because Plasma breaks down the molecular structure, it is capable of near total destruction.  Plasma is tough to make work for waste-to-energy because of the cost, but projects like the Port Arthur project advance the underlying technology and pricing may come down with scale.

The Better BTU says Plasma is environmentally elegant but expensive except for niche waste destruction applications.