INSIDE: RESEARCHERS DISCOVER NEW USE FOR CARBON DIOXIDE February 2010
It’s a Gas Biomass Gasification’s Feedstock Flexibility and Environmental Benefits Make It an Attractive Technology for Producing Power, Fuel and Chemicals
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Renewable Energy Solutions
INSIDE
FEBRUARY 2010
VOLUME 4
ISSUE 02
FEATURES ..................... 20 R&D Development to Deployment At the Gas Technology Institute, raw technology is turned into practical solutions to ensure the world has ample reasonably priced energy. By Rona Johnson
26 PROFILE Gasification Guru Heat Transfer International President David Prouty believes the U.S. is finally ready to commit to renewable energy, and expects there will be plenty of demand for the company’s starved-air/low-temperature biomass gasification systems. By Anna Austin
32 PROCESS Syngas Tasks The techniques being developed to cleanse and reform syngas are turning away from scrubbing and moving toward filters, sorbents and reforming catalysts. Researchers at the Southern Research Institute are developing syngas cleaning systems that can be deployed around the world. By Lisa Gibson
38 INNOVATION Carbon Capacity PROFILE | PAGE 26
DEPARTMENTS .....................
Columbia University researchers are studying a process that uses carbon dioxide to maximize the efficiency of existing renewable energy production processes. A New York company is working with the researchers to take the process to the next level. By Lisa Gibson
06 Editor’s Note Making Sense of Indirect Land Use? By Rona Johnson
CONTRIBUTIONS .....................
07 Advertiser Index 08 Legal Perspectives The Day after Copenhagen: What’s next for Biomass Finance? By Todd Taylor
44 INDUSTRY Colmac Energy’s Secret to Success: Reliability and Maximum Uptime California-based Colmac Energy Inc. credits its profitability to fuel and equipment suppliers that keep the 47-megawatt biomass-fueled power plant running smoothly and continuously. By Tony McNeil
09 Industry Events 10 Business Briefs 12 Industry News 53 EERC Update New Approach to Stimulate Forest Biomass/Bioenergy Projects By Bruce Folkedahl
46 INTERNATIONAL Meeting the Challenge of Conducting Biomass-Related Business in Brazil Brazil’s economic and political stability, biomass potential, ample arable land, geography and temperate climate are attracting large petrochemical companies seeking to develop green projects, and small- to mid-sized renewable energy companies looking to build new facilities or acquire existing businesses. By Felipe Tavares, Thiago Carneiro and Aldemir Marreiros
54 Marketplace
2 |2010 BIOMASS MAGAZINE 5
editor’s
NOTE Making Sense of Indirect Land Use?
D
ebate over indirect land-use change isn’t going away despite the many rational arguments that have been made to debunk it. The notion that we in the U.S. can control the loss of rainforests in Brazil is too much for me to fathom. Naturally, I don’t want to see rainforests destroyed because they are an important part of our ecosystem, I believe it’s the Brazilians responsibility to preserve and protect their own land. Instead of trying to make a rational argument for something I find absurd, I direct your attention to Mark A. Edelman, professor of economics and public policy and director of the community vitality center at Iowa State University. Edelman wrote about land-use change in the Jan. 10 AgMRC Renewable Energy Newsletter and I find his logic to be undeniable. The piece, titled “Indirect Land Use: The Folly of Overindulgent Environmentalism?” and can be found at http://www.agmrc.org/renewable_energy/climate_change/ indirect_land_use_the_folly_of_overindulgent_environmentalism.cfm. To make his point, Edelman outlines the three main approaches to reducing greenhouse gas emissions—regulatory, tax and tax credit, and cap and trade—and the logic behind indirect land use, which simply put, is that as farmers in the U.S. plant more corn to keep up with the growing demand for biofuels, thereby displacing soybeans, farmers in Brazil convert more acres of rainforest into cropland to compensate for the lost U.S. soybean acres. He then lists the top factors that influence the conversion of rainforest land in Brazil: “the investments in agricultural resources and infrastructure being made by the Brazilian government to further develop the agricultural resources and rural economy, increased spending by the Brazilian government provide incentives for expanding Brazil’s crops and livestock industries, and Brazilians who see opportunities for earning income by converting rainforests into other land uses." Is a pattern emerging here? The point he makes is that there is no guarantee that U.S. land-use change will have any impact on rainforest destruction in Brazil because there are many other factors involved. “While the U.S. biofuels industry has expanded in more recent years and may have some correlation with recent land use change events, correlation does not necessarily prove causality,” Edelman writes. Edelman goes on to say that Brazil has to regulate its own land use as it seeks to expand its agricultural industry and keep up with the growing demand for food from countries such as China. “In the final analysis, the approach of pursuing a unilateral indirect land use policy appears to run the risk of imposing extra costs on a domestic sector while having no apparent impact on rain forest preservation,” Edelman concludes. I hope policymakers and environmentalists will pay attention to Edelman's measured response before making decisions that are detrimental to our agriculture and renewable energy industries.
Rona Johnson Editor rjohnson@bbiinternational.com
6 BIOMASS MAGAZINE 2|2010
advertiser INDEX
2010 International BIOMASS Conference & Expo
52
2010 International Fuel Ethanol Workshop & Expo
48
CEO Joe Bryan jbryan@bbiinternational.com
Agra Industries
34
Agri-Systems
28
VICE PRESIDENT, CONTENT Tom Bryan tbryan@bbiinternational.com
Biodiesel Magazine
4
Biomass Magazine
37
SALES DIRECTOR Matthew Spoor mspoor@bbiinternational.com
BRUKS Rockwood
2
Buhler
31
EXECUTIVE ACCOUNT MANAGER, MEDIA & EVENTS Howard Brockhouse hbrockhouse@bbiinternational.com
Buhler Aeroglide
23
EDITORIAL
PUBLISHING & SALES
EDITOR Rona Johnson rjohnson@bbiinternational.com
CHAIRMAN Mike Bryan mbryan@bbiinternational.com
ASSOCIATE EDITORS Anna Austin aaustin@bbiinternational.com Lisa Gibson lgibson@bbiinternational.com COPY EDITOR Jan Tellmann jtellmann@bbiinternational.com
ART ART DIRECTOR Jaci Satterlund jsatterlund@bbiinternational.com GRAPHIC DESIGNERS Elizabeth Slavens bslavens@bbiinternational.com Sam Melquist smelquist@bbiinternational.com
SENIOR ACCOUNT MANAGER Jeremy Hanson jhanson@bbiinternational.com ACCOUNT MANAGERS Marty Steen msteen@bbiinternational.com Bob Brown bbrown@bbiinternational.com
46
Detroit Stoker Company
36
Hurst Boiler & Welding Co.
25
Ethanol-Jobs.com
43
Energy & Environmental Research Center
SUBSCRIPTION MANAGER Jessica Beaudry jbeaudry@bbiinternational.com
Subscriptions Subscriptions to Biomass Magazine are $24.95 per year in the U.S; $39.95 in Canada and Mexico; and $49.95 outside North America. Subscriptions can be completed online at www.BiomassMagazine. com or subscribe over the phone at (701) 746-8385.
Burns & McDonnell
Ethanol Producer Magazine
3 19
Frazier, Barnes & Associates, LLC
30
SUBSCRIBER ACQUISITION MANAGER Jason Smith jsmith@bbiinternational.com
Indeck Power Equipment Co.
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Intersystems
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Intratec Solutions
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KEITH Manufacturing Company
22
Morbark
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40
West Salem Machinery
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2 |2010 BIOMASS MAGAZINE 7
LEGAL
perspectives
The Day after Copenhagen: What’s next for Biomass Finance? By Todd Taylor Todd Taylor shareholder, Fredrikson & Byron
D
isappointed that investors and lenders aren’t knocking down your door to fund your biomass project because there was no agreement at the United Nations Climate Change Conference, held in Copenhagen in December? The prospects for a U.S. carbon cap-and-trade system currently appear doubtful at best, and even less certain for any meaningful global agreement. So what are the prospects for getting biomass projects financed now? Probably no different than your chances were before Copenhagen. Carbon credits have never been a significant factor in U.S. biomass financing because there is no well-established cost of carbon that could be used to reliably model the credits’ impact on project financials. Well-meaning efforts to duplicate the international model for carbon credit financing have generally been unsuccessful. Existing carbon credit markets such as the Chicago Carbon Exchange are not well established enough to serve as a reliable funding mechanism for large biomass projects. Financial markets dislike the regulatory uncertainty around carbon regulations and have tended to factor this in when evaluating renewable energy and biomass projects. Because the U.S. did not have a carbon regulatory regime before Copenhagen, the fact that the county still doesn’t have one after has
8 BIOMASS MAGAZINE 2|2010
not had an impact one way or another. The key however, is that the lack of a regulatory regime, or even a consensus on if or when one may be adopted, continues to be counterproductive for financial investment in biomass and other renewable technologies because potential returns, already a difficult thing to predict, are made even more unpredictable and uncertain. The situation is far from bleak, however. Federal, state and private investment in renewable energy continues to be strong, and 2010 certainly promises to be better than 2009. In addition, the public’s concern regarding climate change and energy insecurity will continue to drive demand for renewable energy projects, notwithstanding uncertainty over carbon regulation and pricing. Financing of various biomass technologies, as opposed to project financing, also has a number of positives even without a mandatory agreement coming out of Copenhagen. The majority of federal incentives related to biomass have been in the form of grant programs for advanced bioenergy and biofuels research and development and precommercial efforts. Venture capital has traditionally been more interested in technology companies than in companies developing projects. Technology investments also tend to have longer time horizons, which allow them to view the markets with an
eye to long-term trends. In addition, most venture capitalists will require that their portfolio companies be profitable without government support or incentives. The fickle nature of, and boom and bust from, incentives in the ethanol, biodiesel, wind and solar industries projects cause venture capital to be skeptical where projects require governmental support. Even without an agreement in Copenhagen regarding mandatory reductions, biomass will continue to occupy a larger market share going forward. While federal climate change legislation appears uncertain at this point, the EPA’s “endangerment finding” and decision to move forward with carbon regulation will continue to put pressure on utilities and other large energy sources to reduce carbon emissions. And states, alone or as part of a regional effort, will fill the void that they believe Congress continues to leave. Thus, even without a global or national consensus on carbon, the need to find alternatives to fossil fuels and reduce carbon emissions through development of new biomass power and transportation fuel projects will continue to grow. Todd Taylor is a shareholder in Fredrikson & Byron’s corporate, renewable energy, securities and emerging business groups. Reach him at ttaylor@fredlaw. com or (612) 492-7355.
industry events Developing and Commercialising Next Generation Biofuels
Biomass Trade & Power
February 9-11, 2010
Golden Tulip Rotterdam Centre Rotterdam, Netherlands This conference will explore the rise of a new biocommodity for clean power generation. Several companies will attend the event to discuss the European Union’s pending bioenergy mandates, sustainability and certification, biomass power generation growth in Europe, opportunities and barriers to developing a global biomass trade network and gaps between technologies and capital investments. +65 6346 9132/6455 7322 www.cmtevents.com/aboutevent.aspx?ev=100306&
Kingsway Hall Hotel London, England This conference will provide the latest information on technological developments and examine the prospects for bringing next-generation biofuels to market. The event will cover groundbreaking developments in cellulosic ethanol, synthetic biology, biomass to liquids, renewable diesel, algal biofuels, waste to ethanol, biomass management and advanced biofuels, including biobutanol and biogasoline. +44 (0)207 017 7499 www.agra-net.com/conferences
March 11-12, 2010
World Biofuels Markets
5th International Congress Fuel Bioethanol-2010
March 15-17, 2010
April 13-15, 2010
The RAI Exhibition and Congress Centre Amsterdam, Netherlands This event will provide leaders of the biofuels field an opportunity to meet new customers, suppliers and partners, and help drive innovation and business. More than 4,500 executives from 78 countries have attended this conference to date. +44 20 7099 0600 www.worldbiofuelsmarkets.com
Moscow World Trade Center Moscow, Russia More than 300 participants from 20 countries attended this event in 2009, making it the premier event for any organization involved in the rapidly maturing biofuels markets in the former Soviet Union. This event is hosted by the Russian Biofuels Association and presentations will include new process technologies and feedstocks, cellulosic ethanol, biobutanol and other second-generation biofuels. +7 495 585-5449 www.biofuels.ru
2010 International Biomass Conference & Expo
2010 International Fuel Ethanol Workshop & Expo
May 4-6, 2010
June 14-17, 2010
Minneapolis Convention Center Minneapolis, Minnesota This Biomass Magazine sponsored conference will unite current and future producers of biomass-derived power, fuels and chemicals with waste generators, energy crop growers, municipal leaders, utility executives, technology providers, equipment manufacturers, project developers, investors and policymakers. Future and existing biofuels and biomass power producers will be able to network with waste generators and other industry suppliers and technology providers as well as utility executives, researchers, policymakers, investors, project developers and farmers. (701) 746-8385 www.biomassconference.com
America’s Center St. Louis, Missouri The FEW provides the global ethanol industry with cutting-edge content and unparalleled networking opportunities in a dynamic business-to-business environment. It is the largest, longest-running ethanol conference in the world. The event delivers timely presentations with a strong focus on commercial-scale ethanol production, new technology and near-term research and development. (701) 746-8385 www.fuelethanolworkshop.com
2010 Farm to Fuel Summit
Gasification Technologies 2010 Conference
August 11-13, 2010
October 31-November 3, 2010
Rosen Shingle Creek Orlando, Florida This fifth annual summit is an opportunity for industry leaders and stakeholders to learn, network and strategize to advance the development of renewable energy in Florida. Florida’s Farm to Fuel Initiative was developed to promote the production and distribution of renewable energy from Florida-grown crops, agricultural wastes and other biomass. More than 500 attendees from academia, industry and government participated in last year’s summit. (850) 488-0646 www.floridafarmtofuel.com/summit_2010.htm
Marriott Wardman Park Hotel Washington, D.C. The GTC is the largest gasification event in the world, attracting speakers and participants from the Americas, Europe, China and India. The GTC provides a single venue for participants to learn what is new in the gasification industry and why it is important. Speakers address all aspects of the industry, from cutting-edge improvements in technology, through projects in development worldwide to updates on operations of plants based on coal, petroleum residues, biomass and secondary materials. (703) 276-0110 www.gasification.org
9 BIOMASS MAGAZINE 2|2010
business
BRIEFS Rentech appoints Williams to its board of directors Dyadic Netherlands joins Kluyver Centre’s Industrial Platform Netherlands-Dyadic Nederland BV, the research and development arm of Dyadic International Inc. has joined the Industrial Platform of the Kluyver Centre for Genomics of Industrial Fermentation. This platform consists of both small- to medium-enterprise companies and multinationals involved in the field of industrial fermentation. Industrial Platform members link to the Kluyver Centre and benefit from direct, confidential access to results from the Kluyver Centre’s precommercialization research activities. Membership will also enable Dyadic Netherlands to rapidly access an extended network of world class scientists. By joining the Kluyver Centre’s Industrial Platform, Dyadic Netherlands will be actively involved in the Kluyver Centre’s research program entitled, Filamentous Fungi for Proteins and Peptides, but also intends to contribute its experience in genomics of industrially relevant fungal strains to the centre. BIO
Fagen EPC contractor for Southern Power biomass project Fagen Inc. of Granite Falls, Minn., has reached an agreement with wholesale energy supplier Southern Power for engineering, procurement and construction (EPC) of the Nacogdoches Generating Facility in Sacul, Texas. The 100-megawatt facility is the largest single-boiler biomass project in the U.S. Southern Power, the subsidiary of Southern Co., which acquires, builds, manages and owns wholesale generation assets, acquired the project from American Renewables LLC in October and is moving ahead with construction. The project is expected to be completed in the summer of 2012. Zachry Engineering Corp. has been contracted by Fagen to be the design engineer. Fagen’s partner for the engineering, supply, erection and commissioning of the biomass boiler and distributed control system is Metso Power, Charlotte, N.C. Mitsubishi Power Systems Americas of Lake Mary, Fla., a subsidiary of Mitsubishi Heavy Industries, is Fagen’s partner for the steam turbine. Fagen’s partner, Wolf Material Handling Systems of Elk River, Minn., is responsible for the design, engineering, supply and commissioning of the biomass fuel handling system. BIO
10 BIOMASS MAGAZINE 2|2010
Rentech Inc. has appointed John A. Williams to the company’s board of directors. Williams has more than 40 years of business experience, principally in the real estate and banking industries. Since 2004, he has served as the CEO, president and managing member of Corporate Holdings LLC, a diversified holdings company, and since November 2004, he has served as CEO and managing member of Williams Realty Advisors LLC, a real estate firm adviser to more than $3 billion in assets. Williams also has nearly 20 years of alternative energy experience stemming from his investment in the biomass gasification company SilvaGas Corp., which was acquired by Rentech in June 2009, creating an unmatched capability to transform biomass resources into renewable low-carbon certified dropin fuels. BIO
Beijing recognizes DP CleanTech’s technological achievements DP CleanTech announced that it has been accredited as a High and New Technology Enterprise by Beijing municipal government, issued jointly by the Ministry of Science and Technology, Ministry of Finance and State Administration of Taxation. This accreditation is a reflection of the technological achievements of the company in the expansion of its proprietary intellectual property. DP CleanTech Group Ltd. was granted patents on two power equipment manufacturing technologies. The Straw Dosing Silo equipment can be applied to conventional coal-fired power stations and enables them to run successfully on a coal and straw mixed fuel. DP CleanTech also invented a way to avoid low-temperature corrosion in the air preheater. The new technology enables higher boiler efficiencies and reduced maintenance costs. The accreditation makes the company eligible for a number of preferential policies to support ongoing research and development initiatives. BIO
Edmonton launches waste-to-biofuels project Web site Enerkem Inc. announced that the city of Edmonton, Alberta, the government of Alberta, through the Alberta Energy Research Institute, and Enerkem Greenfield Alberta Biofuels have launched a Web site for their Edmonton waste-to-biofuels project. This innovative public-private sector initiative will divert more waste from the city’s landfill, reduce greenhouse gas emissions and produce a green transportation fuel. The Web site provides detailed information about the three facilities making up the project, including its status and the technology being used. Visit the Web site at www. edmontonbiofuels.ca. BIO
business
BRIEFS Mascoma makes 50 Hottest Companies in Bioenergy list Mascoma Corp. announced that it has once again made the top 10 list for 50 Hottest Companies in Bioenergy for 2009-’10. The list, published in Biofuels Digest, recognizes innovation and achievement in bioenergy development. In total, more than 1,000 companies were eligible and 311 companies received votes. Rankings were determined 50 percent on votes from a 75-member panel of international selectors, and 50 percent on votes from subscribers of Biofuels Digest. Mascoma came in No. 10. In February 2009, Mascoma announced that its pilot facility in Rome, N.Y., had begun producing cellulosic ethanol. The demonstration facility has the flexibility to run on numerous biomass feedstocks including wood chips, tall grasses, corn stover and sugarcane bagasse. The company, in collaboration with its commercialization subsidiary Frontier Renewable Resources LLC has plans to build a commercial cellulosic ethanol plant in Kinross Township, Mich., that will initially produce about 20 million gallons of liquid fuel annually. BIO
Fluid Imaging Technologies celebrates 10th anniversary Laboratory and ocean research instrumentation manufacturer Fluid Imaging Technologies of Yarmouth, Maine, hosted a 10th anniversary gala celebrating the company’s first decade in operation since introducing the FlowCAM particle imaging and analysis system, which automatically takes high-resolution, digital images of individual particles and cells in a fluid, measures dozens of parameters in real time and saves the images and data for analysis. It replaces manual, labor-intensive sampling and microscopy with a far faster approach that yields highly accurate, actionable data. The company was named the New England Region Exporter of the Year by the U.S. Small Business Administration in 2007 for its success in developing overseas markets, and CEO Kent Peterson was named the 2008 Business Leader of the Year by Mainebiz. Peterson was honored as “the leader who stands head and shoulders above his or her peers” in recognition of his global strategy. BIO
Metabolix named 2010 Technology Pioneer
River Consulting named 23rd fastest-growing firm For the third consecutive year, River Consulting is one of the top 25 fastest-growing architectural, engineering and environmental firms in the U.S. and Canada, as determined by ZweigWhite. River Consulting was ranked 23rd out of 200 Hot Firms Recipients and 50 honorable mentions. The Zweig Letter Hot Firm list is the leading annual ranking of high-growth firms in the industry. The 2008 awards recipients were ranked according to percentage and dollar growth in gross revenue from 2004 to 2007. ZweigWhite is the nation’s largest source of management consulting, information and education for the design and construction industry. BIO
Metabolix Inc., a bioscience company focused on developing sustainable solutions for the plastics, chemicals and energy industries, announced that it has been named to the 2010 Class of Technology Pioneers by the World Economic Forum. To be selected as a Technology Pioneer by the WEF, a company must be involved in the development of a life-changing technology innovation and have the potential for long-term impact on business and society. In addition, it must demonstrate visionary leadership and show all the signs of a long-standing and sustainable market leader, and its technology must be proven. The Technology Pioneers program is the WEF’s means of identifying and integrating those companies around the world that are involved in the design and development of new technologies. The forum’s objective is to identify and address future-oriented issues on the global agenda and to further its commitment to improving the state of the world. BIO
GTE hires European sales director Bandit introduces new drum chipper Bandit Industries Inc. introduced a new 12-inch drum chipper at the Tree Care Industry Expo in Baltimore in November. The Bandit Model 990XP is a compact 12-inch diameter capacity drum chipper specifically designed for municipalities, rental companies, and tree services looking for a high-performance lightweight chipper. The feed system and components on the 990XP are comparable to the popular Model 1090XP, but with a smaller 24-inch diameter drum, a unique discharge transition and a compact design. Engine options up to 86 horsepower are available from most major engine suppliers. BIO
Gas Turbine Efficiency plc hired Lee Wilkinson as sales director for the company’s European power generation market. Wilkinson will direct business development operations to expand GTE’s power generation business from its North East Lincolnshire, U.K., office. In addition to achieving strategic growth goals, Wilkinson has been tasked with increasing GTE’s customer mix and meeting the company’s new business objectives through agreements with utility operations throughout Europe. Through his development of market intelligence, GTI will secure its industry leadership in Europe as part of the company’s expansion plans. Before joining GTE, Wilkinson worked with Pratt & Whitney as European sales manager and with RWE Power International as head of its business development group. BIO 2|2010 BIOMASS MAGAZINE 11
conference
NEWS Biomass shines in the Golden State The consensus at Biomass Magazine’s Pacific Northwest Biomass Conference & Expo held Jan. 11-13 in Sacramento was that strong government support is essential for the biomass industry to reach its peak potential in the Pacific Northwest, and other regions in the U.S. Sacramento City Councilman Steve Cohn, California Energy Commission Vice Chair and Commissioner James Boyd and USDA Farm Service Agency of California Executive Director Val Dolcini kicked off the conference. “We have made sustainability a key goal here in Sacramento and California, and more importantly I think for our local area, it’s also a major source of jobs,” Cohn said, adding that green jobs in the city increased 36 percent in 2009. “That’s remarkable in the midst of the worst recession that we’ve seen since the Great Depression,” he said. “In any sector it’s impressive—and that was the highest percentage in California.” Dolcini talked about the success of the USDA-FSA’s Biomass Crop Assistance Program in California. Historically, the FSA has worked closely with the growers of food and
fiber, and is now working closely with the growers of fuel, he said. “In California, [the BCAP program is] off to a great start.” The FSA has approved 36 biomass conversion facilities in California—more than any other state—and allocated $15 Cohn million in fiscal year 2009, Dolcini said. “So far in FY10, we’re off to a great start,” he said. “We’ve allocated about $30 million, and expect to allocate almost $20 million more before the end of the year. This program has been met with real enthusiasm here in California and we anticipate that application number will continue to grow steadily.” There are currently about 360 qualified BCAP facilities across the U.S., Dolcini said, with California’s constituting about 10 percent. “Facilities are getting all the materials they can handle right now, and I think that should continue into the next year,” he said. “And this is only the first phase of this program; the second will stimulate the production of eligible
Boyd
Dolcini
crops for bioenergy conversion.” From Dolcini’s perspective, the country’s economic recovery will largely depend on the continued development of a renewable energy economy. “Biomass energy has a lot to offer right now, but will it be easy to harvest? Let me just say this, all of the low-hanging fruit has been picked,” he said. “We’re doing things across the board here that haven’t been done before so there will be some experimentation and adaptation, but we’re pretty good at that here in California. I know we can continue to light the path for the rest of the nation.” —Anna Austin
Switching from a black hat to a green hat The paradigm shift in converting a coal power plant to biomass is riddled with permitting hurdles, along with technology and logistics issues. “Going from a black hat to a green hat is hard to do,” said Mike Hawkins, president and CEO of Ohio-based Red Hawk Energy LLC, who participated in the Pacific West Biomass Conference & Expo in Sacramento. The company’s 52-megawatt coal plant is transitioning to biomass power and should be fully operational with 100 percent biomass in the second quarter of 2011, he said. In converting, economics of size matter, he said, reiterating the point made by fellow presenter Peter Flynn, a professor in the mechanical engineering department at Canada’s University of Alberta. Optimal plant size varies with biomass 12 BIOMASS MAGAZINE 2|2010
feedstock availability and processing technology, but is much larger than conventional wisdom suggests, Flynn said. Although larger plants may have longer transportation routes, efficiency in larger plants comes out on top. “Capitol efficiency trumps transportation costs,” he said. In large power plants, coal costs about $4,500 per kilowatt hour, with biomass at about $4,000, Hawkins said. Biomass for a converted coal plant, however, costs only $1,000 per kilowatt hour. Conversion is challenging and should not be underestimated, Hawkins said. Operating issues include fuel quality, erosion and corrosion, the capacity factor, operations training and fuel handling. Technology issues include a boiler study, unit de-rating, boiler and fuel feed modifications, and fuel receiving and storage. Com-
panies can opt for a basic dump truck and storage system, or take the route Red Hawk Energy took: a state-of-the-art storage facility with dust and fire suppression, Hawkins said. The plant is currently cofiring 20 percent biomass. Hawkins recommends plants considering conversion perform a detailed fuel study, and analyze the reliability of suppliers and fuel contracts. He also discussed power purchase agreements, emphasizing the importance of obtaining the terms needed. Other issues companies will face include lender issues, and development and construction costs. The entire process from start to finish probably will take about three years, Hawkins said. —Lisa Gibson
conference
NEWS Securing biomass’s position and meeting RPS goals Biomass is the No. 1 renewable energy resource for the Sacramento Municipal Utility District, holding a steady 41 percent of energy from renewables, according to Michael DeAngelis, manager of SMUD’s Advanced, Renewable & Distributed Generation Technologies Program. DeAngelis was the first speaker in the panel titled Securing the Position of Biomass in California’s Energy Portfolio at the Pacific West Biomass Conference & Expo Bischel DeAngelis Leaon Morris in Sacramento. “It’s clear that renewable energy and biomass are here to stay,” DeAngelis told attendees. “Biomass Biomass made up 22 percent of total renewable energy in Calihas become a very significant portion of our energy supply in the fornia in 2003, decreasing to 20 percent in 2008. In that time, the Sacramento region. We expect it to remain a major portion of our mandate required 43 percent renewable energy generation, but only supply.” That biomass energy supply consists primarily of wood 3.4 percent was achieved. The reason: Biomass is expensive, Morris waste cogeneration, with five landfill and wastewater gas projects, said. “But the fact is, it’s also expensive not to do it,” he said, adding along with the use of biomethane in the pipeline, which he said is that landfi ll burial and burning of waste are more costly alternathe fastest-growing of all SMUD’s renewable energy options. tives. Since 1980, 60 biomass plants have been built in California, The publicly owned utility has the most aggressive energy efonly half of which are still operational. The next steps to increasing ficiency goals—15 percent in 10 years—of any large utility in the state of California, DeAngelis said. In addition, the company ex- biomass use are continued support for existing facilities, bioenergy pects to be the only large utility to meet California’s renewable port- banding within the RPS, targeted credits for specific biomass facilities and generating credits for bioenergy, Morris said. folio standard (RPS) of 20 percent by 2010. David Bischel, president and CEO of the California Forestry Overall, the state is not on track to achieve that goal, according to Michael Leaon, supervisor of the Integrated Energy & Climate Association talked about the untapped potential for woody bioChange Unit of the California Energy Commission. Additionally, mass in California’s forestlands. One-third of California’s 100 milthe Governor’s Executive Order establishes a 33 percent RPS by lion acres is forestland. The state has more than twice as much 2020, with 20 percent from biopower, Leaon said. Statewide, 20 wood standing dead in forests as there is wood being harvested, percent of renewable energy in 2008 came from biomass, 70 per- he said. More than 10 million acres are at high or very high risk of catastrophic fire, driven by accumulated fuel loads. Climate change cent of that from plants that came on line by 2000, he added. Financial support has the potential to spur biomass develop- could make that fire threat worse, Bischel said. “The opportunities ment and help reach RPS goals, Leaon told attendees. The state for sustainable biomass utilization are immense in dealing with this offers the Existing Renewable Facilities Program, which provides issue,” he said. Reducing that fuel load also protects water quality incentive payments for energy generated from solid biomass. “This and lowers the cost of cleaning it for consumption. There are 14 million bone-dry tons of potential woody biohas been an important program for supporting solid biomass facilimass that needs to be removed from forests, Bischel said, with the ties,” he said. Gregg Morris, director of the Green Power Institute, agreed potential to produce 1,750 megawatts of electricity and 17,000 new that California’s RPS is too lofty a goal and current progress has jobs. Challenges include the cost, definition of biomass and regulanot kept up. “There’s not a chance that we will achieve that 20 per- tions. “I couldn’t agree more that California is really in a state of cent target by 2010,” he said. “We want our renewable production regulatory gridlock,” he said. But the will, motivation and resources overall in California to approximately triple compared with where on the part of landowners are what will determine how far woody biomass can go, he added. it was in 2002.” The RPS requires utilities to increase renewable energy sources —Lisa Gibson by 1 percent annually, but they have instead declined since the RPS was established in 2002, he said. “They’ve actually fallen behind every single year since it went into effect.”
2|2010 BIOMASS MAGAZINE 13
conference
NEWS Jim Stewart, chairman of the California BioEnergy Producers Association, relayed a simple message to the 400-plus attendees of the Pacific Northwest Biomass Conference & Expo: it’s time to begin confronting the real issues involved in developing a constructive statutory and regulatory environment for bioenergy production. Stewart referred to biomass as the “holy grail” of sustainability, touting production of ethanol from organic wastes as the only pathway available that can meet or exceed the greenhouse gas reduction goals established in California’s Low Carbon Fuel Standard. “Many of us here have attended conferences before where we have a chance to network, say nice things about innovative technologies we’re working on, listen to a few speeches proclaiming the need for a better environment, and go home perhaps feeling a little better about ourselves without confronting the real issues,” he said. “But the time has come for a frank discussion and coordinated action. We will never achieve our goals for renewable energy and a better environment for this nation without a cooperative effort among business, labor, government and the environmental community.” America generates 1.5 billion to 2 billion tons of carbon-based wastes annually, according to Stewart, about 500 million tons of which are readily available to convert into energy. In 2008, a recession year in which municipal solid waste (MSW) generation declined by 10 percent, California still landfilled 35.5 million tons of post-recycled material. “Just from this single source of biomass, thermal conversion technologies could coproduce 1.6 billion gallons of ethanol and about 1,250 megawatts (MW) of power, turning the state into a net exporter of ethanol,” he said. Stewart referred to a recent study by the International Energy Agency showing 14 BIOMASS MAGAZINE 2|2010
that production in the world’s oil fields is declining by 7 percent per year, and predicted that the world will need eight more Saudi Arabia’s by 2030 to make up for the decline and meet projected global oil demand. “The way to achieve this goal is not to devastate the environment to recover Stewart of the California BioEnergy Producers Association told conference oil from tar sands in attendees that it’s time for frank discussion and coordinated action in order Canada—to me that to achieve renewable energy goals. is direct and indirect land-use change of far greater impact than power from organic waste materials. AB anything that could be projected from corn 222, which addresses the issues necessary or cellulosic biomass, and yet it is just one to achieve this goal, passed in the California of the factors relating to petroleum produc- State Assembly 54-13 during the 2009 legtion that seems to be totally ignored by the islative session in Sacramento, after having been approved by a unanimous bipartisan U.S. EPA in its rulemaking,” he said. In 2009, the U.S. DOE awarded grants vote in the Assembly Utilities and Comto a wide range of emerging renewable en- merce Committee. In July 2009, it was apergy technologies including $193 million proved in the Senate Utilities, Energy and for six thermal biomass conversion projects Communications Committee, however, the supporting a total investment of $410 mil- Senate Environmental Quality Committee lion, none of which will be built in Califor- elected not to act on the bill and converted nia. “Why is this happening?” Stewart asked. it into a two-year bill, which cannot pass the “It’s happening because California has a State Senate and be signed by the Goverstatutory and regulatory environment that nor until 2010, and will not take effect until is driving biobased technology providers January 2011 at the earliest. During those and investment capital out of the state. As intervening 17 months, the state will place further evidence, the governor announced another 50 million tons of post-recycled a list of 244 renewable energy projects now municipal waste in its landfills, which theobeing proposed to help meet the renewable retically could support the annual producportfolio standard (RPS) goal of 33 percent tion of 1.6 billion gallons of ethanol and by 2022, and only three were for biomass approximately 1,250 MW of power. Stewart urged attendees to contact the Senate and conversion.” Stewart said the BEPA is sponsor- demand the legislation be passed. ing legislation to expedite the introduction —Anna Austin of new conversion technologies that will produce advanced biofuels and/or green
PHOTO: BBI INTERNATIONAL
Biomass needs regulatory, government support
industry
NEWS Ireland-based B9 Shipping Ltd. anticipates the launch of two fossil fuel-free demonstration cargo ships in 2012, powered by soft sails and biogas from anaerobic digestion (AD) of organic waste streams, food waste and landfill gas. The demonstration ships will be designed and financed in 2010 and built in 2011. One will be a dry bulk carrier, designed for cargo such as wood chips and carried to biomass power plants in the U.K., and the other will be a chemical tanker for bioethanol and biodiesel markets, according to David Surplus, B9 Shipping managing director. The company is initially concentrating on the wood chip and pellet trade between the Baltic states and the U.K., but has identified some potential on the coasts of the U.S. and Canada. The long-term goal is to deploy the vessels all around the world, especially in small island states that rely on small coastal vessels as the backbone of their economies, Surplus said. B9’s sister company, B9 Organic Energy Ltd., is a U.K. market leader in AD and will aid its shipping counterpart in securing an adequate supply of biogas through two means, Surplus said. First, the biogas (60 percent methane and
40 percent carbon dioxide) can be compressed and run through a spark ignition engine to drive the propeller; or the methane component can be liquefied to produce biomethane and run the same spark ignition engine. A 50,000-ton-peryear AD project will provide sufficient biogas to run a 1.5 megawatt engine 24/7, Surplus said. “Because the B9 ship operating plan is focused on saving biogas through optimizing the use of wind B9’s ships would be powered by soft sails and biogas power, we are projecting that four ships from anaerobic digestion. will be fuelled from each AD project,” Once the demonstration vessels have he said. “To achieve this, it is necessary for the wind speeds along the route to be as high as the proven themselves, the company has an initial commercial target to build 50 dry bulk vessels, North Sea.” “We also will provide best practice environ- which would allow the U.K. biomass industry mental performance over the life of the con- to comply with the new Renewable Energy tract, which is important if the biomass power Directive from the EU of 10 percent, Surplus plant planning permission is granted on this ba- said. “Thereafter, and as we move closer to the sis,” he said. “We will always need to identify a low-carbon economy, we foresee that the masuitable return cargo for ships and if no trades jority of the 1,800 coasters in EU waters and already exist, we have the ability to stimulate new 10,000 throughout the world will need to be trades supporting new industries. In particular, replaced with fossil fuel-free vessels,” he said. we are keen to transport recyclate for reprocess—Lisa Gibson ing because those commodities also have strong environmental performance targets.”
SOURCE: B9 SHIPPING LTD.
Ireland company prepares to launch fossil fuel-free ships
French biofuel plant will add hydrogen A pre-industrial scale second-generation biofuel plant in Bure-Saudron, France, will be the first in the world to add external hydrogen to syngas for increased conversion efficiency. The plant is expected to produce 23,000 metric tons (25,350 tons) of biofuels per year, including biodiesel, kerosene and naphta, using about 75,000 metric tons of local forestry and agricultural resources, according to the French Atomic Energy Commission (CEA). The CEA and its industrial financial partners are launching the first stage of the project, which will include a detailed study of the design, but the study is subject to a contract with partners. Construction will begin once the study is complete and is slated for June 2011, according to the CEA. The project aims to improve biomass-to-liquid mass perfor-
mance, which the CEA defines as the quantity of input material divided by the quantity of output fuel, by adding external hydrogen. The objective of the project is to demonstrate both the technical and economic feasibility of a complete chain of production of liquid biofuels from biomass in France, from harvesting to fuel synthesis, according to the CEA. The plant will be able to investigate production along a complete manufacturing line: collecting and conditioning, gasification, and conversion through the Fischer-Tropsch process. The pilot unit will be the first of its kind in France, combining the various components for manufacture of biofuels in one facility. The CEA says the fuels will be high quality, both in engine performance and pollutants emitted.
Bure-Saudron, in northeastern France, was chosen partly because it allowed research laboratories to dispose of nuclear waste in deep geological formations, according to the CEA. Members of the nuclear industry made a commitment in 2006 to support the economic development of areas that allowed such disposal. Project partners include contracting group CNIM, France-based air gas producer Air Liquide group, German-based gasification company Choren, Canada-based engineering and construction firm SNC Lavlin, contractor and equipment supplier Foster Wheeler France and MSW Energies, according to the CEA. —Lisa Gibson
2|2010 BIOMASS MAGAZINE 15
industry
NEWS Swedish AB Volvo subsidiary Terracastus Technologies and waste management firm Nordvastra Skanes Renhallningsbolag plan to jointly construct a liquid biogas plant in southern Sweden for the production of vehicle fuel. In December, the two companies signed a letter of intent to begin a joint company for upgrading biogas to liquefied biogas. The first project will be located outside of Helsingborg, at the site of NSR’s landfill. Tobias Elmquist of Terracastus said half of the biogas produced will be generated by an anaerobic digester. About 140,000 metric tons (154,320 tons) of waste will be required at the plant annually, to produce the equivalent of 15 million liters (4 million gallons) of diesel per year. Terracastus currently employs 10 people who are engaged in project development. The company is based in Gothenburg, Sweden, and has a New York City location as well. Wholly owned within the Volvo Group, Terracastus was established in 2007 to manage the commercial development of CO2 Wash, a system that transforms raw biogas into high-quality liquid biomethane, Elmquist said. Elmquist said Terracastus technology is unique in using the CO2 in the raw biogas as a cleaning agent for removal of contaminants such as volatile organic compounds, sulfur and siloxanes. “Prior to establishing Terracastus, Volvo helped manage extensive testing and development of CO2 Wash including the construction of a successful pilot plant (cofunded by the U.S. DOE) at the Burlington County Landfill in Columbus, N.J.,” he said. “The project at Burlington County became the first to accomplish a long sought goal of the landfill industry—continuous conversion of landfill gas-to-liquid methane truck fuel used in regularly
PHOTO: TERRACASTUS
Swedish companies plan liquid biogas plant
Refueling a truck with liquid methane
scheduled commercial refuse collection.” During the project, sample trucks accumulated more than 600 hours of operation using the fuel, and post analysis showed no degradation of engines. The Gothenburg project is the one of the larger, if not the largest, facilities for production of liquid biogas in the world, according to Elmquist. Construction is slated to begin the second half of 2010; completion in the third quarter of 2011. —Anna Austin
Covanta launches $302 million expansion project As a result of service agreement amendments with the city and county of Honolulu, Covanta Energy Corp. will expand its wasteto-energy facility to increase its current capacity by approximately 40 percent. Covanta Energy operates more than 40 waste-to-energy facilities across the globe. These plants collectively convert 20 million tons—or more than 5 percent—of the nation’s waste into renewable energy each year. The $302 million expansion project, will be designed, built and operated by Covanta, but funded and owned by the city and county of Honolulu. Covanta Honolulu Resource Recovery Venture, or “H-Power,” currently produces about 2,160 tons of refuse per day. It will be increased by 900 tons per day, or the equivalent of handling the municipal solid waste (MSW) produced by 850,000 residents and 6 million visitors annually. The overall waste processing capacity of the facility will reach 900,000 tons when complete. The agreement also includes an extension of Covanta’s tenure
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as the facility’s operator for 20 years from initial start-up of the expansion, which the company estimated to occur within 24 to 34 months. H-Power will have the potential to generate 84 megawatts, which will be sold to Hawaiian Electric Co. Covanta has operated the H-Power facility, which is located on 28 acres in Campbell Industries Park, Kapolei, Hawaii, for more than 15 years after it acquired the facility in 1993 from Combustion Engineering. In early January, Covanta Spokeswoman Vera Carley said construction of the expansion will begin within the next 30 days. “We’re waiting for the final permits to get started,” she said. The renovation will consist of a new boiler building and tip floor, which will be half of the size of the boiler building and tip floor building in the existing plant, according to Carley. —Anna Austin
industry
NEWS LSU to establish Louisiana Institute for Biofuels and Bioprocessing
The Louisiana State University Agricultural Center has permission from the board of regents to establish the Louisiana Institute for Biofuels and Bioprocessing, a research, education and outreach initiative within the AgCenter. The institute will not occupy its own facility, but will be a “virtual center” that will provide the roadmap needed to support new biofuels and bioprocessing endeavors in the state and prioritize pathways for integration of those industries into the mainstream, according to John Russin, AgCenter associate vice chancellor and institute director. The center is expected to link Louisiana’s agricultural base with emerging bioenergy initiatives, which will expand the state’s role in developing renewable energy sources, while increasing the economic base for crop producers in the state, according to the proposal submitted to the board of regents. The regents’ approval is conditional for one year, in which time the AgCenter will work on several first-year initiatives, including soliciting ongoing federal support; assembling an external advisory board; developing an annual conference with speakers from the industry and academia; facilitating effective information exchange among public and private partners; and developing electronic and print materials to educate stakeholders and policymakers about industry opportunities in Louisiana, according to the proposal. Initially, the institute will encompass all ongoing research projects
within the AgCenter, including those involving the conversion of bagasse, sweet sorghum, switchgrass and algae to biofuels, polymers and specialty chemicals. “As the external advisory board develops and corporate partners emerge, we hope to expand the breadth and depth of our programs,” Russin said. Louisiana has a strong and diverse agricultural base and is well-positioned to produce Russin energy crops, the proposal states. Objectives of the institute should complement those of the Clean Power & Energy Research Consortium, which supports programs from seven campuses of higher education in Louisiana. A unique attribute of the institute will be its ability to address all aspects of industrial development for new bioproducts from Louisiana crops, according to the proposal. That encompasses areas from biofuel crop development and production to optimum harvesting, handling and storage; from processing to optimization for biofuel specialty chemical production; and from product conceptualization through development to economic analysis and marketability, according to the proposal. —Lisa Gibson
A wood-drying system that has been used in Japan for the past five years will be available in the U.S. market in early 2010. Greenstone Holdings Inc.’s Green-Dri system was developed from a biotechnological concept based on Toshio Ito’s Nobel Prize-winning Bound Water Transfer Theory, according to the company. Ito, a professor at John’s Hopkins University School of Medicine, discovered channels that regulate and facilitate water molecule transport through cell membranes. Wood and its cells survive and function as a living organism after being cut and the Green-Dri system uses that natural characteristic to “sweat out” water through the channels without damaging the cells, according to the company. The system allows for lower temperatures and less energy than conventional kilns, while shortening the drying time. The sauna-like structures have double-layer walls, ceilings and floors made out of wood. The wood construction is a key element to the process and because of a constant temperature setting, no scheduling is necessary and mixtures of different species and sizes of wood can be dried at the same time. Systems can range in size from 5 feet long, 5 feet wide and 5 feet tall, to 100 feet long, 20 feet wide and 20 feet tall, according to Sal Miwa, Greenstone CEO. Costs can be anywhere from $3,000 to more than $200,000, he added. The operating cost, however, is about 10 percent that of conventional drying kilns. “Our test unit, which has 2,000-board-feet capacity, cost only $17 for electricity cost for one month,” he said. “A major part of saw mill cost and energy consumption is the drying process, so we would be saving lots of energy.” The kilns come with sliding or swinging doors and feature a small
PHOTO: GREENSTONE HOLDINGS INC.
Wood-drying system available soon in US
The Green-Dri system will soon be available in the U.S.
entry for inspections. A protective housing is available for use in colder regions and the system can be fit for loading via forklift or rail track. The target markets for the product are saw mills, lumber yards, and manufacturers of sporting equipment, musical instruments, furniture, cabinets and others, Miwa said. More than 30 units have been sold in Japan so far. Japan’s Imperial Housing Agency approved specified usage of wood dried by Green-Dri for the new earthquake-proof Central Cultural Center at Todaiji Temple in Nara, Miwa said. The wooden Buddhist temple, also the largest wooden building in the world, dates back to 782. —Lisa Gibson
2|2010 BIOMASS MAGAZINE 17
industry
NEWS ‘Biomass reaction’ combusts fuel from within Biomass reaction, a patented technology by Iowa-based Kimberlin Inc., combusts biowaste for heating or cooling in commercial spaces, and is being further developed to produce electricity. The process combusts biomass, typically animal and poultry wastes, wood fuels and agricultural materials, from within the fuel mass, with what the company calls a tornado of fire. Instead of external energy collection, the process uses the energy created from inside the burn. “Nobody’s ever done this before,” says owner John Kimberlin. “It burns within itself.” Heat output varies with the size of the furnace, but can range from 175,000 Btu per hour to 750,000. “Our piece of equipment will be the basic heat source for your building,” Kimberlin said. The technology is used in two Kimberlin products currently: Nature’s Furnace, which is a hot air combustor that can produce up to 500,000 Btu; and the Bio-Power boiler, which is a fluid unit that can produce up to 750,000 Btu, according to Kimberlin. Four Nature’s Furnaces have been sold in Europe, with 20 to 30 pending, according to the company. Prices range from $150,000 to $500,000, depending on energy output and selected options. Texas A&M is also working on a prototype that will use the biomass reaction to produce up to 15 kilowatts of electricity. The system bypasses steam production by using super-heated oil to
change Freon to gas, instead of changing steam to gas, Kimberlin said. “We stay away from all the problems that come with steam,” he said, adding that using steam would require the company and its clients to adhere to stricter standards. Kimberlin expects the system to be finished and available around the middle or end of this year. Nature’s Furnace units are built to run 24/7 and are made up of 11 moving parts. They are computer controlled and optional monitoring systems are available, Kimberlin said. “We can see what a machine is doing in Europe,” he said. Kimberlin’s target market includes horse race tracks and casinos, stud farms, breeding facilities, boarding stables, dairies, poultry producers, farms, ranches, tree services, landfills, recycling plants and seed stock facilities. “We’re just starting to market,” Kimberlin said. “We’ve been working on the technology for decades.” Prospective clients include a race track looking into purchasing six units. “Each one will keep up with about 100 stalled horses,” he said. More target markets will be identified, as many waste streams exist and the system can use most biomass feedstocks. “Just about anything you can see out your window [can be used] for fuel,” Kimberlin said. —Lisa Gibson
Midwest Biogas plant to use ethanol byproducts, animal waste Minnesota-based Midwest Biogas LLC plans to construct a biogas plant in northern Iowa, a project that will mark the company’s renewable energy debut. Plans are to break ground at the Albert City, Iowa, location in early 2010, said Midwest Biogas President Nick Nelson. Buena Vista BioEnergy will be located near and utilize byproducts from an ethanol plant, as well as waste materials from a nearby egg producer, to produce biomethane, electricity and fertilizer. “In essence we will be getting three types of renewable energy—ethanol, biomethane and electricity—from one crop of corn, and we are able to return most of the nutrients back to the farm for the next crop,” Nelson said. Nelson told Biomass Magazine that because of the size of the project, which is currently estimated to be about $120 million, it will be completed in phases. The first phase is anticipated to begin operations in early 2011 and the entire project will be on line some time in 2012. According to Nelson, when complete these plants will produce about three times as much biomethane as the largest plant in the world in Gustrow, Germany, which Nelson said he toured in November during a due diligence study of the company’s biogas upgrading technology.
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The site for Buena Vista BioEnergy was chosen because of its close proximity to feedstock sources. Midwest Biogas will be responsible for the transportation of the feedstocks to its plants to ensure that it’s done safely and cleanly. “When you’re handling materials like swine manure, you want to make sure that these are transported in sealed tanks and that they are stored properly on site for the shortest period of time possible,” he explained. Midwest Biogas will employ a truck washing mechanism to clean every transport as it is exiting the plant to prevent the spread of any diseases. According to Nelson, Midwest has plans to build several similar plants across the Corn Belt. He added that it’s also important to get the first plant on line to show how well Midwest Biogas’s business model works, and that it can be successfully implemented in the U.S. “Midwest has a very dedicated team that is focused on doing this right, and we’re looking forward to having many successful plants with the first two being Buena Vista BioEnergy and Welcome BioEnergy in Welcome, Minn.,” he said. —Anna Austin
R&D
Development to Deployment
For 68 years, the Gas Technology Institute has been advancing new technologies to ensure the world has access to an abundant, affordable energy supply. By Rona Johnson
GTI’s Advanced Gasification Test Facility PHOTO: GTI
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R&D
2|20010 BIOMASS MAGAZINE 21
R&D
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PHOTO: GTI
T
he Gas Technology Institute was created to address the needs of the natural gas industry, but its work has evolved as the world’s energy requirements have changed. The nonprofit conducts research and development for the purpose of developing technologies that can be applied in the marketplace. “Our mission is to turn raw technology into practical solutions for the market’s energy needs,” says Vann Bush, managing director for the gasification and gas processing group at GTI. “We have created solutions that include our own gasification technologies but we’re also a technology development partner for industry.” To do this, GTI contracts with private companies, works with state and federal government agencies and regulators, and provides investment opportunities within the energy sector and other industries. GTI is involved in gasification of fossil and renewable fuels, natural gas exploration—mostly from unconventional sources including shale, tight gas sands and coal beds—distribution and pipeline technology, and new technology development, deployment and commercialization. Although the institute’s headquarters are in Des Plaines, Ill., it also has a group working on biomass gasification and other areas of biomass conversion in Birmingham, Ala., a research and development facility in Oklahoma and offices in Washington, D.C., and on the East and West Coast, Bush says.
GTI’s Flex-Fuel Test Facility and Advanced Gasification Test Facility
R&D “My business unit is one of the four R&D sectors here at GTI,” says Bush, who works at the GTI campus in Des Plaines, where there are 28 specialized laboratories and facilities. “My focus is on the conversion of hydrocarbon materials into products whether they be fuels—liquid or gaseous fuels—chemicals or power. In my area, our business revolves around thermochemical processes and we have a group that’s devoted to gas conditioning and treatment technologies as well as a generation of gases and liquids from solid feedstocks. About half of our business is biomass related at present and about half is coal and natural gas related.” The number of biomass and coal projects fluctuates from year to year but historically there is a good balance between the two, Bush says. “There is a lot of interest right now in the renewables area, of course, because of the carbon management issues, and we’re seeing changes in the kind of products that people are looking for from biomass,” he says. “The past couple of years, the focus has been on liquid fuels/transportation fuels so there is a lot of activity in our shop and around the world dealing with the conversion of biomass material into replacement transportation fuels.” Prior to that there was more interest in power and combined-heat-and-power applications from renewable resources, he adds.
GTI developed a fluidized bed gasification solution for coal applications and a fluidized bed solution for biomass applications and both have been licensed. “Those technologies are now commercial offerings,” Bush says. “We continue to provide technology support for those partners and at the same time we will work with other folks’ technologies from the venture-funded type organizations like Great Point Energy, who brought their technology to GTI for development, or Pratt & Whitney Rocket-
dyne, who brought their technology to GTI for pilot development.” GTI worked with Finnish companies UPM-Kymmene Corp. and Carbona/Andritz to help them develop technology to make biodiesel from wood waste. UPM, a global forestry company, and Andritz Carbona, a gasification technology provider, are cooperating on a biomass-toliquid plant that would convert wood waste to biodiesel. The process involves gasifying biomass, purifying the gas and processing
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GTI in Action GTI’s participation in projects can take on several forms, depending on the client’s needs. “Industry often comes to us with a technology that they need to pass through the development cycle and we partner with them to carry their technology through the stages of development and work alongside them,” Bush says. “Some of the technologies that have sort of a GTI imprint on them are developed by our own staff and some of the technologies with which we are associated are the development of our industrial partners and we assist, doing testing or developmental work in cooperation with them.”
The solution behind the solution.
2|2010 BIOMASS MAGAZINE 23
R&D it in a Fischer-Tropsch liquefaction plant. The plant would combine carbon monoxide and hydrogen in a catalytic reaction and convert them into liquid hydrocarbons. “We were looking for a gasifier with significant size, capable of gasifying biomass with oxygen under pressure, and there are not that many pilot plants available,” says Petri Kukkonen, director of biofuel at UMP. Andritz/Carbona secured access to GTI’s pilot gasification facility for the project, which saved the companies $7
million to $10 million and about two years time, says Jim Patel, president of Carbona Corp., which is a majority owned subsidiary of Andritz Oy. “GTI saved us a lot of money and time because they have existing equipment that we could use and add on to,” Patel says. “We used GTI’s equipment and modified it and then we added a gas cleaning system of our own design.” Andritz/Carbona uses the fluidized bed gasification technology that it licensed from GTI about 30 years ago as the basis
From Grinder to Chipper in Record Time!
for its own technology. “We built a plant in Finland and developed the technology on our own, to the level where it could be commercialized and built into an actual plant,” Patel says. For the current project, Andritz/Carbona and UPM are using GTI’s test plant to do the testing of the technology for the new project. UPM has a demonstration plant in Chicago and plans to build a commercial plant in Europe near one of its pulp and paper mills. “We have an environmental impact assessment complete for two plants in Finland, but we are looking at our mills in central Europe as well,” Kukkonen says “We have 16 plants in Europe.” GTI also obtained the permits to build the demonstration plant in Chicago, Kukkonen says. “In the beginning we had some problems getting permits to build the plant because it’s located close to the Chicago O’Hare Airport and building that kind of facility near an airport after Sept. 11 has been a struggle.” The permit issue delayed the project, but once the permits were in place the project went smoothly. “GTI got the construction permit and upgrading we needed for the downstream syngas cleaning equipment and also for some modifications for the existing gasifier.”
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BUILDING EQUIPMENT THAT CREATES OPPORTUNITIES
24 BIOMASS MAGAZINE 2|2010
To keep up with changing energy demands and the needs of its clients, GTI is constantly looking to the future. “We put together what are we going to look like, what are we going to be in three years, what sort of business mix we foresee and then what are some of the things beyond that that we want to keep our eyes on,” Bush says. That three-year forecast is updated every year during an off-site strategic planning workshop with the institute’s board of directors and the management team. Although GTI’s business units have distinct areas of expertise, lately carbon management has been the common thread that materializes in the annual planning sessions. While research and development are the main focus, the institute also has to be aware of and prepare for outside influences that impact their work. “We also want to
R&D look at what are the factors that are institutional or that are regulatory or policy factors that are going to overlay the technology issues that we are working on, and it’s important that we have our board here to go through that,” Bush says. “It’s a way to keep ourselves in tune with what we perceive to be the real needs out there in the market. Of course, industry is going to give us a good idea about that in what they are willing to support. We want to offer the technology solutions that are going to be relevant to them so we have to really be apprised of it.” Because it is a nonprofit, GTI shares results of its studies with the industries it works with through technical reports, presentations at conferences, peer review journals and other means, and works closely with organizations such as the American Gas Association and pipeline networks. “We do have to be circumspect and careful if we are working for a specific industrial partner where there are proprietary or intellectual property issues, but general findings and work that we do collaboratively in the delivery sector those kinds of results get populated to the user market pretty quickly,” Bush says. In September 2009, the institute organized the tcbiomass2009 conference in Chicago with 250 participants from 22 countries and 130 organizations. The conference focused on new research in thermochemical biomass conversion including gasification, pyrolysis and upgrading of pyrolysis oil. GTI also holds workshops for industry groups and conducts twice yearly meetings of its public interest advisory committee, which is comprised of members of the regulatory community and consumer advocacy groups. “We share things that are relevant and current things, that are our distillation of what the market pressures are and where technology might be going,” Bush says. GTI is typically funded through three different revenue streams: federal and state funds, the gas industry and industry partners. “The particular business unit that I have in gasification, we’ve been more about private sector work for the past four or five years than government work; we’ve been
over 80 percent funded by the private sector,” Bush says. “But there is a swell of funding from the federal government as they readjust their priorities, so our distribution of funding from private to government might shift a little bit in the coming year.” To receive money from these groups, the researchers at GTI write proposals that address specific technical issues, and compete against other institutions and companies for projects. Bush says he’s encouraged that the fed-
eral government is putting a lot of emphasis on technology development to solve the nation’s energy needs. “Whether it’s to supply fuels, power from sustainable sources or for the mitigation of environmental issues, it’s good to see that there’s recognition that technology is going to provide us valuable ways of addressing those needs and hopefully the resources will back that up.” BIO Rona Johnson is the editor of Biomass Magazine. Reach her at rjohnson@bbiinternational. com or (701) 738-4940.
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2|2010 BIOMASS MAGAZINE 25
PROFILE
Gasification Guru
26 BIOMASS MAGAZINE 2|2010
PROFILE
Touting feedstock flexibility as the key to a lucrative biomass gasification operation, Heat Transfer International predicts 2010 will be an extraordinary year for business and the industry in general. By Anna Austin
2|2010 BIOMASS MAGAZINE 27
PROFILE
W
hen Heat Transfer Interna- with Graham’s work, he decided the third design rights, HTI emerged. The company tional President David Prouty time just might be the charm. “Come 2003, moved Graham and his wife to Kentwood, met gasification veteran Rob- I asked myself if the world would once Mich, where HTI is based. At 78, senior application engineer Graert Graham, he recognized a again shy away from alternative energy and great, but also somewhat risky, opportunity. gasification and turn back to fossil fuels, or ham still comes into the office every day, Historically, the development of a renew- if interest would stick this time,” he says. Prouty says, and his 50 years of experience able energy industry in the U.S. had not been Prouty went with his gut feeling, which was in the field has been invaluable to HTI’s consistent. Hot streaks of interest erupted indicating to him that this time the world growth. briefly, but generally faded away as quickly, was finally ready to forge ahead with alterSALT System Benefits Prouty tells Biomass Magazine. “In the ’70s, native energy. HTI is a designer and manufacturer Graham had spent the bulk of his capeople began to care about energy after the oil embargo and they spent some time in reer working in the field of waste gasifi- of starved-air/low-temperature (SALT) alternative energy, but interest was lost af- cation and high-temperature combustion retorts, which are biomass gasification syster awhile,” he explains. “So they went back equipment, dealing with materials such as tems that convert biomass, through a thermal process, into synthesis gas. precious metals and to doing what they did. In 1979 By properly controlling the army munitions—things to ’81, people became interested air injection arrangement the which Prouty says noagain. At that time, Bob’s work refeedstock pile temperature is kept body else in the world volved around improving gasifiers below the sublimation, vaporizwould touch—to develfor the destruction of waste. No ing or melting temperatures of op the means to destroy one cared about the extra energy the noncombustible solids, and the products or capture so they threw away a great deal of at the same time vaporizes the anything usable in the energy, but interest in those areas Robert Graham volatiles using the energy from ash. Soon after Prouty David Prouty soon died down again.” scientist, president, partial combustion of the wastes. purchased Graham’s inWhen Prouty became ac- chief HTI HTI The resulting syngas is sent to tellectual property and quainted and familiarized himself
a chamber, or “low NOx (nitrogen oxide) oxidizer,” where it is combusted much like natural gas or propane and is then used to make heat, which can be converted into steam, power or hot water. Prouty says the key benefit of the SALT system is that a hot air turbine is used instead of water for power generation. The company has a partnership with Walled Lake, Mich.-based turbine manufacturer Williams International, and has spent the past three years working with Williams to optimize a biomass turbine. The companies’ collaborative work was showcased in the fall of 2009 with the commissioning of a project at Sietsema Farm Feeds in Howard City, Mich., which now hosts the state’s first gasification plant and the world’s first hot air turbine powered by biomass.
Projects, Partners and Progress Sietsema Farms Feeds owner, Harley Sietsema’s goal is to completely remove his operation from the power grid, with a 90 percent reduction in energy costs
The Sietsema project utilizes about 70,000 pounds (two semi-truckloads) of turkey litter a day as the fuel source. Uniquely, electricity and steam are produced at the Sietsema plant, but none of the steam is used to generate electricity—instead, 100 percent is used to soften grain that is used in the feed mill to make turkey and hog feed. HTI also has a partnership with Morbark Inc., a manufacturer of size-reduction equipment for organic materials, to provide chipper/grinder/shredder equipment for feedstock material preparation and handling, a logistic which Prouty describes as the “Achilles’ heel” of gasification. “Feedstocks like industrial sludges, sewer sludges and municipal solid waste are complex because there is a wide variety of chemicals in them, typically a high ash content, and they are often not uniform in size, so you need to have a way to deal with those issues,” he says. For further testing, HTI is constructing a $3.5 million biomass development center, which Prouty says will house four differ-
PHOTO: HTI
PROFILE
HTI commissioned a project at Sietsema Farms Feeds in Howard City, Mich., which is the state’s first gasification plant.
PROFILE ent styles of gasifiers and different forms of power generation. The machines will be larger than pilot scale—big enough to prove formulas for a smooth transition to fullsized machines. “What we want to be able to do is, when a customer brings in a material, we can prove out exactly what the right recipe of waste should be, and determine which full-scale gasifier will work best with it,” Prouty says. “We’ll prove the process and the air emissions, so that as they move
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into their permitting and design phases they know exactly how the material will perform in the gasifier.” HTI has offered the center to Michigan State University, which will provide researchers to work on new gasification concepts and prove out any operational characteristics HTI may encounter. While the center is being built, Prouty says, interest in gasification projects continues to mount.
Feedstock Flexibility Gasification may not be the right solution for every operation and several questions need to be addressed before making a decision, the first being whether an interested party has control over its waste stream. “You need to know if you’ll have control over it for the next 10 to 20 years,” Prouty says. “Do you have a need for power that you can use on the farm or at a nearby facility? If you don’t, does your state have renewable portfolio laws that will allow you to distribute that power to the grid? Do you have or can you get financing? There are a lot of people who want to do things, who don’t have access to capital.” The amount of waste is a factor too. SALT systems are designed for mediumsized operations. “At some point, if you’re on the smaller side, you have to determine if it’s economical,” Prouty says. “If it’s smaller, it’s tougher to make the economics—and as you get larger it also gets tougher. We operate right in the middle from a half of a megawatt (MW) of power up to about 20 MW. If someone wanted to produce 300 MW, that wouldn’t be for us. If someone said they wanted to build a gasifier for their shed in the back of their house, that wouldn’t be us either.” Feedstock flexibility can’t be overlooked when planning a project, Prouty says. “Guys who have built 40, 50, or 100 MW wood incinerator power plants, in watching and dealing with them over the past five years, all of them have told us that when they built those plants in the 1980s and ’90s, they quickly discovered that the biomass they started out with initially always changed. As we work with customers, we also ask if they are certain they have a long-term feedstock, and what could happen if it goes away.” A gasifier must be robust enough to be able to handle different feedstocks. “History says it’s probably going to change— and you should be capable of adapting to that new fuel because it’s a very significant financial investment,” Prouty says. “It wouldn’t be good if five years down the road the only thing your gasifier can handle is woody biomass and your wood
PROFILE source goes away. That’s incredibly important for the end customer to understand.” The feedstock issue is especially important as competition from new wood-fired power plants and cellulosic ethanol producers heats up, he adds. “As those guys get things rolling ... we need to understand that there’s going to be competition and we’ll need fuel sources with low costs. If you’re using kiln-dried wood chips costing $80 per ton, you’re plant isn’t economically viable.”
“I think we’re going to have to say no to a lot of people because there’s more opportunity and people who want to do things than we’ll be able to handle,” Prouty says. This interest isn’t just beneficial to HTI, but also to the biomass gasification industry in general. “We’ll find some projects that suit HTI well, and there’ll be other gasification systems that fit better with other projects. We don’t typically see all these other folks as competitors because we think, as we go
forward over the next 15 to 20 years, there will be so much more than we or any one company could even begin to handle. We just all need to find our niches.” BIO Anna Austin is a Biomass Magazine associate editor. Reach her at aaustin@ bbiinternational.com or (701) 738-4968.
Global Interest The breadth of the types of projects HTI is receiving inquires about is vast, according to Goutam Shahani, HTI chief revenue officer. “Different industrial segments have different needs and priorities for gasification utilization,” he points out. “Some people want to destroy undesirable materials, some want to create energy, others want to become self-sufficient. Certainly, the driving force is different in Europe or Asia than it is in America, just because the economics are very different,” Shahani says. Though HTI is primarily focused on projects within the U.S., Shahani says the company has entertained enquiries from many different countries including Peru, China and India, and will soon engage in its first overseas project in Italy. He points out that there are strong environmental forces at play, not just energy needs or economics. “Right now, there is a very strong push to remove nutrients from waterways,” he says. “There’s extensive damage being caused in the Chesapeake Bay. Nitrogen and phosphorous are prevalent in manure and turkey litter that gets into waterways, and water contamination is a concern.” “This year is going to be a wonderful year as the economy rebounds and capital becomes a little more available,” Shahani says. “Projects in gestation will be able to come to the forefront—many of which have been stalled because of the economic crisis. We’re beginning to see the light at the end of the tunnel, and quite frankly, the biggest challenge for us as a smaller company is managing growth.”
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The solution behind the solution.
2|2010 BIOMASS MAGAZINE 31
PROCESS
Syngas Tasks Sufficiently cleansing and efficiently reforming syngas are complicated elements of gasification for biofuels production and continued research seeks to optimize both. By Lisa Gibson
32 BIOMASS MAGAZINE 2|2010
PROCESS
2|2010 BIOMASS MAGAZINE 33
PROCESS
R
esearchers around the world are on a quest to develop optimal and economic processes for syngas cleansing, many leaning away from traditional scrubbing and more toward filters, sorbents and reforming catalysts. Contaminants in syngas from biomass can harm reforming catalysts and deactivate conversion catalysts, rendering them useless. Gas-to-liquid conversion catalysts are fussy and the concentration levels of toxins, including hydrogen sulfide, sulfur, trace metals, ammonia and organic molecules such as tars in syngas need to be low. Limitations for Fischer-Tropsch systems can depend on the manufacturer’s specifications, but typically sulfur should be at or below 50 parts per billion, and metals and hydrogen cyanide should be at about 10 parts per billion, according to Thomas Gale, manager of Power Systems Research at the Southern Research Institute in Birmingham, Ala. “But even at 50 parts per billion, you’re still going to damage your catalyst,” he says. The contaminants react with the catalytic sites on the surface, forming a new product that is no longer a catalyst for the desired process. Different processes and catalysts demand different concentration levels, but all are strict. Any level of contaminants in syngas will damage a catalyst, but lower levels will allow it to function longer without needing a replacement. Typical cleansing techniques include sorbents, scrubbers, filters and reforming catalysts that crack tars into smaller molecules, or more syngas, along with guard columns that can be used to scrub syngas prior to reforming. Tars may be the most difficult contaminant to handle, as they will gum up the conversion process. Sorbents—material substrates that absorb and contain other substances—capture halides, trace metals and sulfur, and also help crack tars. Their application depends on the type of gasifier and the other methods of cleanup being deployed. Gale has conducted a considerable amount of research using sorbents to capture trace metals before they go through syngas filters, which are also studied at Southern Research, specifically candle filters. The filters consist of
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a solid ceramic or metal material that covers a cage and forms a tube-like structure. The ceramic or metal has small pores that capture the char from the syngas before it continues up the tube, emerging clean on the other side. “Ultimately, we’d like to just have carbon monoxide and hydrogen in our syngas,” Gale says. Several stages of syngas cleaning using sorbents and other materials that crack tars before the filter, along with tar-cracking catalysts after the filter, could be the most effective cleaning system, and Gale’s team has made progress in developing that process.
Applying It All Southern Research, which operates in Alabama, North Carolina and Maryland, has filed a full submission for a patent on its Multi-Component Syngas Treatment system, Gale says. “The concept is to apply all of the available syngas cleanup techniques that we have into a compact unit that can be used to connect distributed biomass gasification systems with the end component,” he says. Because Southern Research is a nonprofit organization, development of the system has been slow. The organization is working on a laboratory-scale pressurized gasifier, but has only had the funding thus far to purchase the main reactor, Gale says. It will continue to work on building the structural supports and a thermal oxidizer, along with all the other associated equipment. Once that system is up, the first priority will be to start testing MCST configurations for different potential uses and gasifying systems, he says. “Eventually, we’d like to have a small Fischer-Tropsch system hooked up to it.” The type and extent of cleaning depend on the desired end product and type of gasifier the MCST is attached to. Additional catalysts could be incorporated after the filters to shift the syngas composition more toward hydrogen. “If we’re good at doing our cracking, we’ll have carbon monoxide and hydrogen, but typically many applications wish to have more hydrogen than you might otherwise produce,” Gale says. The system will also include catalytic candle filters. “So inside the filter, there will
PROCESS be catalysts,” he says. “That’s an important component we’re implementing.” The MCST will be designed to be cheaper, more efficient and more environmentally friendly than other cleansing processes. Scrubbing, for example is an expensive form of cleanup. “We hope that we’ll be able to remove some of the metals upstream of the candle filter, so scrubbing will not be required,” Gale says, adding that it’s very possible the MCST will include scrubbers for certain applications. Ideally, Southern Research will develop and optimize the MCST for commercial use all over the world. Because of funding hurdles, however, a timeline for that goal has not been established. The catch in the scenario is that sometimes it takes significant investment and development, with the presentation of technical findings, before commercial interest is piqued. Still, the system will address what Gale says is the biggest challenge in syngas cleanup: integrating everything into a compact unit.
Research Priorities Engineering the cost-effective integration of the gasifier, cleansing technologies and FT system is key, according to Stephen Piccot, director of advanced energy and transportation technologies for Southern Research in North Carolina. Piccot’s team has developed an integrated 4-ton-per-day pilot-scale biorefinery that cleans syngas using a “biosolvent” and scrubber system, he says. The system is attached to an FT system, converting the syngas to diesel fuel and FT wax. “It has a conventional syngas cleaning system that we’re commissioning and trying to optimize at the moment,” Piccot says. “It’s gotten to the point where it looks pretty clean and it’s working well.” Piccot and his team haven’t analyzed the wax yet, but it looks “stark white,” he says, and any impurities would probably show. “We’ll integrate a more advanced system this year,” he says. Also in North Carolina, Southern Research and its partners are using U.S. DOE funding to develop another system quite similar to the MCST that would bypass scrubbers, instead using injection of advanced sorbents, a candle filter for solids
removal and a tar cracking catalyst to finish the job, according to Piccot. “Dealing with tars is tough to do and the only way to do it now is with these scrubbing approaches, but everyone is trying to move away from them,” he says. The process will keep the syngas hot and avoid using liquids, thereby avoiding liquid waste. As in Alabama, the project’s progress has been slow, but Piccot expects to have the system built and ready for experimenting this year. The North Carolina location has a bit more funding than Alabama, Piccot says, so the system might be up and running there first. Along with syngas cleansing, several projects are underway to optimize the biomass feeder system. According to Piccot, feeders and syngas cleanup are the two biggest issues facing the industry. “And we’re wrestling with both of them here,” he says, adding that the organization is looking to create a win-win situation in syngas cleanup: avoiding the generation of liquids, and turning the tar into something useful. “If we can crack these long-chain tars down to syngas, we just made our system more efficient,” he says. “We can produce more fuel now.” Bob Dahlin of Southern Research has studied rare earth metals and found that they function well as low-temperature catalysts for cracking tars, Gale says. That process needs further research, however, to determine the best composition of the metals, how much is needed, optimal temperature range, the lowest level of toxin concentration they can achieve, and what will deactivate them, among other questions, Gale adds. “There are a lot of details on the development of those low-temperature catalysts that still need to be addressed,” he says. Other cleaning processes are in the works, too, such as passing the syngas through plasma, effectively killing everything but the gas. A lot of work has already been done on high-temperature catalysts and it’s been determined that a nickel-based dolomite substrate might be the best because it is resistant to sulfur deactivation. Its nickel composition, however, makes it costly. “You definitely need to protect it if you’re going to use that type of catalyst because it is very expensive,” Gale says. 2|2010 BIOMASS MAGAZINE 35
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PROCESS In addition, Emery Energy Co. is working with partners to develop a proprietary means to mitigate tars and oils in biomass syngas, joining several other companies conducting research projects in the field. Numerous projects in the U.S. dealing with catalyst research have received federal funding. U.S. DOE Secretary Steven Chu appropriated a portion of the $1.2 billion for science from the American Recovery and Reinvestment Act to catalysis for energy research at Energy Frontier Research Centers, according to the DOE.
An Uncommon Practice While gasification with subsequent cleansing and conversion to liquid is the subject of plenty of research, the practice is not all that common on a commercial scale, Gale says. A South African plant that gasifies coal, cleans the syngas and uses it for fuels is the only current commercial project both Piccot and Gale can identify. But even that system does not clean the syngas to levels ideal for Southern Research’s processes. While several companies are poised to develop commercial tar-cracking catalysts the market does not yet exist, Gale says. “There’s not too much in the way of commercial catalysts at this time,” he adds. But research into tar-cracking catalysts is common among those developing syngas cleanup systems. Peter Flynn, a University of Alberta professor and biomass expert, agrees that gasification and post-processing are rare and says oxygen gasification has been used only a few times in history—including at the South African plant—to produce syngas. “I don’t think it makes sense, personally,” he says of gasification. Flynn was a corresponding author on a study conducted in 2006-’07 by Erin Searcy, who was then a student of his, on the end uses for corn stover and straw, finding that gasification and FT processes were significantly less economical than other processes. “If you want electricity, burn [biomass], if you want biofuel, do lignocellulosic fermentation,” he says, adding that air gasification is much less economical for electricity production than simply burning the biomass. Flynn says he and Searcy expect the results would be similar using woody biomass. The study has not yet been published. The problem with FT conversion is that it’s expensive, Flynn says. “The catalyst works; you can make this work,” he says. “It’s just much more expensive than other things you can do with biomass.” Even so, Flynn and Piccot agree that FT conversion catalysts are well-developed and established. “I wouldn’t list that as a big area of uncertainty and research need,” Piccot says, adding that there is much to do in the area of cleaning and reforming. “The general trend is to ditch the scrubbers,” he says. “They’re just a big and inefficient mess.” BIO Lisa Gibson is a Biomass Magazine associate editor. Reach her at lgibson@bbiinternational.com or (701) 738-4952.
Power, Fuels and Chemicals. Biomass Magazine is a trade journal serving companies that use or produce power, fuels and chemical feedstocks derived from biomass. Collectively, these biomass utilization industries are positioned to replace nearly every product made from fossil fuels with those derived from plant or waste material. The publication covers a wide array of issues on the leading edge of biomass utilization technologies including: • biorefining • dedicated energy crops • cellulosic ethanol • decentralized power • anaerobic digestion and gasification The magazine's online counterpart, BiomassMagazine.com, holds the world's most extensive archive of news and feature articles about biomass-derived power, fuels and chemicals. Whether you're looking for today's latest news or last year's biggest story, BiomassMagazine.com is your one-stop shop for biomass industry insight and market intelligence. For additional information please contact us at (701) 746-8385 or at service@bbiinternational.com
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INNOVATION
Carbon Capacity A New York company com ompany is building on the resultss of a study by Columbia University researchers to optimize solid fuel-to-energy conversions, with a new and surprising reactive medium in biomass gasification: carbon dioxide. By Lisa Gibson
38 BIOMASS MAGAZINE 2|2010
INNOVATION
P
lenty of work is being done to further the progress in capturing and sequestering carbon dioxide, along with avoiding its production altogether. But what about using CO2 to maximize the efficiency of existing renewable energy processes? This is a question Marco Castaldi, assistant professor of earth and environmental engineering at Columbia University, posed several years ago when contemplating innovative uses for waste streams in conversion processes, particularly in gasification. Conventional gasification uses steam, but this creates two issues: it uses water, and the entire reaction is endothermic, meaning it absorbs heat and requires energy input, Castaldi says. Using carbon dioxide in the process is less energy intensive, as it is already a gas and does not require the heating of water to produce steam. “The big energy savings come because I’m not using water,” he says. “Any process that uses less water is better.” The concept became the focus of a study by Castaldi and post-doctoral researcher Heidi Butterman called “CO2 as a Carbon-Neutral Source via Enhanced Biomass Gasification,” featured on the Web site of the Journal of Environmental Science and Technology. Energy efficiency is not the only benefit of using the common greenhouse gas during biomass gasification. “To my surprise, when I did the experiments, not only did it need less energy, but it also more efficiently converts the solid fuel,” he says, adding that using steam leaves behind residual that has some carbon left. “With carbon dioxide, the only thing left is the nongasifiable minerals that are in that biomass,” he explains. The use of oxygen instead of water/steam is an option, but it is highly reactive and can combust the biomass instead of gasifying it, he explains. “[Carbon dioxide] is more reactive than steam, but not as reactive as oxygen, and that’s important,” he says.
The How and Why Castaldi and Butterman used a range of carbon dioxide (0 percent to 100 percent) and steam mixtures on about 50 different kinds of biomass, finding that between 25 percent and 40 percent carbon dioxide seemed optimal, depending on the process and desired end product. “Adding much more than 40 percent carbon dioxide in that process is only adding a diluent,” he says. Feedstocks such as beach grass, pine needles, poplar wood and municipal solid waste, along with coal, were gasified at temperatures of 25 to 1,000 degrees Celsius (77 to 1,832 degrees Fahrenheit) at rates of 1 to 100 degrees Celsius per minute in the range of carbon dioxide/steam mixtures, according to the study.
2|2010 BIOMASS MAGAZINE 39
INNOVATION The increased efficiency occurs for two reasons. The first is because of carbon dioxide’s reactivity. “If it’s not reactive enough, like the steam, you form a residual that is very, very low in surface area, that’s nonporous,” Castaldi says. “And what happens is, as it reacts, it becomes more and more difficult to react.” He compares the reaction to a sponge, saying it’s crucial to absorb the reactive medium all the way through, not just on the surface. Steam reacts mostly on the surface, densifying the biomass and preventing it from absorbing more steam. But the carbon dioxide reacts at the right amount to not only continuously react with the biomass, but to keep pores open or even open them further, he says. The carbon dioxide enables the biomass to keep its sponge-like quality, or porosity, while steam collapses those pores, he says. Another reason that carbon dioxide increases biomass gasification efficiency is the increased occurrence of the water-gas shift reaction: water and carbon monoxide reacting to form hydrogen and carbon dioxide. It works like this: as the mixture of steam and carbon dioxide goes over the biomass and gasifies it, the carbon dioxide reacts more than the steam, which means there is steam present that is not reacting with solid biomass, Castaldi explains. It’s left in the gas phase and as the carbon dioxide gasifies the biomass and makes carbon monoxide, that carbon monoxide goes into the gas phase and reacts with water via the water-gas shift reaction. The reaction is exothermic, meaning it releases heat, and the steam the carbon dioxide leaves behind increases that heat release, thereby increasing occurrence of the entire reaction, he says. “A system using carbon dioxide needs less energy because there’s an exothermic reaction that’s a little more engaged,” he says. The process does not use all carbon dioxide, Castaldi says, but about 30 percent. “It turns out that the energy needed to create syngas from steam and biomass is nearly equal to making syngas using all carbon dioxide and biomass,” he says
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of the reaction. But the difference is in the heat release. In addition, some of the carbon dioxide input—between 20 percent and 50 percent of that 30 percent—is actually converted into carbon monoxide, Castaldi says. “So now I’m introducing a sufficient quantity of carbon dioxide that causes the process to actually utilize a good portion of it,” he says. In this process, the input of carbon dioxide determines the ratio of hydrogen to carbon monoxide in the syngas. With more carbon dioxide, the ratio goes down, increasing carbon monoxide and decreasing hydrogen. Tweaking input can make desirable syngas compositions for different processes, such as turbine combustion, special chemicals production, Fischer-Tropsch for diesel fuels, and others, Castaldi says.
Applications and Implications Applied globally, this process could recycle tens of hundreds of megatons of carbon dioxide per year, Castaldi and Butterman say. The use of the greenhouse gas in the low-temperature gasification of beach grass on a global scale could create a beneficial use for 437 million metric tons (482 million tons) of carbon dioxide, based on estimated transportation needs in 2008, according to the study. That’s the equivalent of taking about 308 million typical vehicles, producing 6 metric tons of carbon dioxide per year, off the road. Using carbon dioxide for gasification in large power plants can increase efficiency by 3 percent to 4 percent, Castaldi says. He recognizes that it may seem small, but when hundreds of megawatts are being produced, that percentage adds up. “That’s huge,” he emphasizes. “That’s a lot of power.” Companies want greater efficiency to boost economic benefits. They also want to be environmentally conscious, but efficiency will increase profit and all businesses strive for that, he says.
INNOVATION Castaldi and Butterman studied bench-scale applications, but Castaldi has set up a larger process at Columbia and says the data and information match and still look promising. Even so, more work remains to be done. “I still need to understand the reactions that are going on and need to find if there’s a better biomass to use or if there’s a better coal to use,” he says. “How does this work in terms of municipal solid waste?” More research in the optimal percentage of carbon dioxide in the mixture is warranted, also, he adds, as the bench-scale study was not exhaustive in that regard. “Do I think this could be deployed on a wide scale?” he asks. “Absolutely. You could employ this technology today in existing coal-fired power plants. It really depends on how serious people are in terms of using waste streams.” Streams with a wide range of carbon dioxide percentages can be used, the study showed, but the big question is where to get it. “There’s definitely potential,” he says. “The data is there. It’s just an engineering solution.” That solution may come from the New York division of ATK, a Minnesota-based aerospace and defense company. ATK’s Center for Energy and Aerospace Innovation and Columbia University have been working together on various alternative energy processes for years. “This was an idea that professor Castaldi had approached our organization with and we’ve been working with him and his group on developing a subscale prototype,” says Dean Modroukas, ATK director for advanced programs. ATK has a small 2.5-kilowatt operational system using torrefied waste biomass and coal, and now is working on the funding for scaleup. The emphasis thus far has been on the gasification process and preprocessing upstream. “Right now, the focus of the activity has been on the heart of the system,” Modroukas says. The next step will be using a solid oxide fuel cell to convert the syngas to electricity.
“Our goal is to work with professor Castaldi and his team to take it to the next level and bring it to light from the product perspective,” he says. “We’re hopeful that as the process goes on and as we continue to make the successes we’ve been making, that with all the partners involved, we’ll be able to make this a product offering.” Target markets would be military depots where equipment is located and hardware is built, Modroukas says. “Those types of facilities generate a lot of waste,” he says, including wood, cardboard, crates and paper products. “All of that just normally gets shipped away.” The system also could be used for distributed power generation for the commercial space. Modroukas declined to delve into details about the ongoing project, as more research and work is being done and no timeline has been established. While ATK is accustomed to defense and aerospace projects, the company has found a new interest in renewable and clean energy solutions, Modroukas says. “When you look at us, you may see all the bullets and all the rockets, but a lot of the technology that goes into developing a gasifier and putting together systems that can actually work in long term and have the reliability that’s necessary is perfectly suited for a defense company,” he says. “It’s an exciting time and we’re very excited about the process. It’s going quite well and it’s been quite successful.” The process illuminates the capabilities and opportunities of using the gas for something, and on a broader scale, of using waste for something and gaining value. “It’s not just about sequestering the carbon dioxide,” Castaldi says. “It’s not just about capturing it and burying it.” Any good engineer would look at a system and question how the waste can be used for another process, he adds. BIO Lisa Gibson is a Biomass Magazine associate editor. Reach her at lgibson@bbiinernational.com or (701) 738-4952.
2|2010 BIOMASS MAGAZINE 41
INDUSTRY By Tony McNeil
PHOTO: COLMAC ENERGY INC.
CONTRIBUTION
The Colmac Energy plant in California uses wood waste and agricultural residues to produce power.
Colmac Energy’s Secret to Success: Reliability and Maximum Uptime Maximizing uptime and throughput are key factors enabling the country’s largest biomass power plant to consistently turn a profit.
T
he key ingredients of success for Colmac Energy Inc., operator of a 47 megawatt (MW) net biomass-fueled facility in the Coachella Valley of Riverside County, Calif., are the constant supply of quality landfill-diverted wood waste and the highest quality processing equipment. The plant, which has been in continuous operation since 1992, consumes approximately 325,000 tons per year of wood waste, landscape and right-ofway tree trimmings, broken pallets and used boxes. The com-
pany will accept construction waste, but no treated wood or painted materials. About 12 percent of the plant’s fuel (40,000 tons per year) consists of locally collected agricultural residues that would otherwise have been disposed of by burning in open fields. And because of Colmac’s plant, Riverside and San Bernardino counties are able to meet their state mandated recycling standard (AB939). Unlike companies that convert trash into power, Colmac processes only biomass material. Sixty to 80 trucks arrive at the facility each day coming in from
The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of Biomass Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).
42 BIOMASS MAGAZINE 2|2010
a 200- to 250-mile radius, from east of Phoenix to south of Los Angeles. The trucks discharge up to 25 tons of biomass every five minutes. Upon arrival, the biomass material passes through separators that take out any ferrous materials, after which it is deposited into the first holding cell of a two-cell system. From that holding cell, it is transferred to an operating cell, from which it is broken down by grinding equipment prior to being fed into the boilers. No biomass fuel stays on site for more that 30 days at a time. Though Colmac takes care to make sure that the biomass provided by its suppliers is of
high quality and is cut into small pieces so as to limit stress on the material handling machinery, the internal biomass feed system still sees considerable wear. “Biomass is among the hardest fuel sources on equipment,” says Graeme Donaldson, Colmac’s vice president and plant operations manager. Critical path transfer components must be selected and maintained with care to avoid failures that can shut down the whole line. In this area, maintaining close working relationships with equipment suppliers pays off. The Colmac site has been using screws and valves supplied by Precision Machine and
INDUSTRY By Tony McNeil
The Colmac plant contains two boiler systems manufactured by ABB-CE. This diagram shows the equipment involved in transporting combustible biomass materials into one of the boilers. Precision Machine supplies the screws and rotary valves used in the plant. The plant has the option of using petroleum coke as a supplemental fuel. The limestone is fluidized using a lean phase blowing system, it is conveyed into the lower combustor to neutralize the sulfur dioxide (SO2). SOURCE: COLMAC ENERGY
Manufacturing Inc. of Eugene, Ore., since the current generating plant came on line in 1992. The plant now employs two sets of 12 metering bin screws (that feed the boilers), two sets of transfer screws, and two rotary valves per boiler, all provided by Precision Machine. Donaldson regularly consults with the company on things that Precision Machine can do to improve the reliability of the plant. “Precision Machine’s valves last longer because they are built to tighter tolerances and the metallurgy has been designed to match the chemistry of our fuel,” says Donaldson, who is an ex-marine materials engineer.
Avoiding Downtime This attention to detail is critical because if a boiler were to go down for any reason, including the interruption of the biomass transport line, the cost to Colmac in terms of lost productivity would be substantial. Donaldson estimates it at $5,000 per hour per boiler. When a plant is shut down, the adverse impact goes beyond lost power output. “You can’t shut down the fuel flow when a plant goes down,” Donaldson says. “If you send the fuel away, it gets used someplace else and it’s hard to acquire again.” “We continue to push the envelope on the reliability of
our system,” he says. “We used to change our rotary valves every three months. Now, because of Precision Machine’s experience with advanced metallurgy and quality control, we do so only once per year, and we’re looking at ways to improve the reliability beyond that. The payoff is in lower costs and increased efficiency.” The Colmac plant runs an efficiency of 92 percent to 95 percent whereas other plants run between 82 percent and 85 percent. Using equipment with longer operating lifetimes also helps Donaldson keep the cost of maintaining spare parts inventories under control.
“We can’t increase our plant’s output,” Donaldson adds. “We’re limited by the original boiler design to 47 MW. The only way that we can improve the financial returns from our process is to increase the system’s reliability, which translates to more continuous uptime. And when it comes to maximizing, Precision Machine engineers it into every one of their products.” BIO Tony McNeil is the sales manager for Precision Machine and Manufacturing Inc. Reach him at tonym@premach.com or (541) 484-9841.
2|2010 BIOMASS MAGAZINE 43
INTERNATIONALByFelipeTavares,ThiagoCarneiroandAldemirMarreiros
CONTRIBUTION
Meeting the Challenge of Conducting Biomass-Related Business in Brazil Starting up a business in a foreign country such as Brazil can be quite challenging and some setbacks can arise. That shouldn’t discourage investment from foreign companies and start-up ventures, however, for a simple reason: Brazil offers remarkable advantages.
M
ajor changes are taking place in the international distribution of the petrochemical industry, mainly driven by availability and cost of raw materials. Amid this trend, the Middle East has been in the spotlight with plentiful supplies of feedstock and a growing petrochemical industry. In alternative feedstocks, however, Brazil is at the forefront, leading the way in the biomass-based industry, and its
competitive advantages have attracted several start-up companies and world-class players looking for ways to boost their “green” businesses. A proper entry strategy is imperative for decision makers aiming to jump on the Brazil bandwagon. In the contemporary corporate realm, if one were to make any business decision without gaining substantial knowledge about the outcome it could result in an economic catastrophe. Therefore prudence dictates that prospec-
The claims and statements made in this article belong exclusively to the author(s) and do not necessarily reflect the views of Biomass Magazine or its advertisers. All questions pertaining to this article should be directed to the author(s).
44 BIOMASS MAGAZINE 2|2010
tive investors must devise suitable due diligence processes to obtain as much information about the Brazilian assets as possible to be able to make good business decisions.
Brazil’s Competitive Advantages Articles about Brazil’s promising future have been popping up in the media lately. Recently, The Economist published an article titled “Brazil Takes Off,” highlighting the country’s robust economy
and political stability, and stated that “Forecasts vary, but sometime in the decade after 2014 Brazil is likely to become the world’s fifth-largest economy, overtaking Britain and France.” A recent article in the Financial Times, “Dancing Through the Economic Crisis,” pointed out that Brazil “is catching the world’s attention—and sucking in foreign direct investment, while many rivals go without.” Brazil also presents a unique set of advantages over
INTERNATIONALByFelipeTavares,ThiagoCarneiroandAldemirMarreiros
Figure 1: Brazil Area Distribution
SOURCE: EMBRAPA
other countries in terms of its geography, tropical/temperate climate, plenty of arable land and absence of large natural catastrophes. The country has an area of more than 850 million hectares (2.1 billion acres), with forests, agriculture and pastures representing almost 90 percent of it (see figure 1). When performing a comparison with other countries, Brazil’s potential is prominently greater (see figure 2 on page 46).
The Race has Begun: The Moment is Now After decades of research and commitment to a technology based on sugarcane ethanol, Brazil is the leading and most efficient sugarcane producer in the world. The country has more than 350 sugarcane mills producing more than 20 billion liters (5.5 billion gallons) of sugarcane ethanol per year, and has the
potential to produce much more—sugarcane production occupies less than 1 percent of the country’s arable land. More than a cost-effective way of manufacturing biofuels, the country has proven to have projects that are environmentally sustainable and potentially capable of changing the way we manufacture several chemical products, formerly made from petroleum. Such facts have encouraged large petrochemical companies to embark on sizeable green plastics projects in Brazil. Giants such as Dow Chemical, Solvay and Braskem are already planning to produce ethylene from Brazilian ethanol and use it as raw material in the manufacture of renewable polyethylene and polyvinylchloride (PVC). Dow announced plans to build a facility Santa Vitoria in (Southeast Brazil) to produce 350,000 metric tons
(770 million pounds) per year of polyethylene. The $1 billion facility, expected to start production in 2011, would be the first integrated facility in the world (sugarcane plantation, ethanol mill and plastics manufacturing) to produce bioplastics. Solvay-Indupa, Brazil’s arm of the chemical major Solvay, is investing $135 million to produce “green” PVC also in Southeast Brazil. Solvay-Indupa’s plan is to use its existing assets to make PVC from an additional 60,000 metric tons (130 million pounds) of green ethylene per year, starting in 2011. Braskem, the thirdlargest resins producer in the Americas, is building a $300 million plant at the company’s Triunfo (South Brazil) site with the capacity to produce 200,000 metric tons (450 million pounds) of green plastic per year. The facility, expected
to come on line in the next year, will be the first of its kind to enter commercial operation. Small- and medium-sized companies, such as the American Amyris Biotechnologies Inc. and the local Raudi Industria e Comercio Ltda., are also seeking to capitalize on the competitive advantages offered by Brazil. Amyris Brasil Pesquisa e Desenvolvimento Ltda., a wholly owned subsidiary of Amyris, started its demonstration facility in Campinas (Southeast Brazil), which was the final step before full commercial production of Amyris products. The facility is designed to convert Brazilian sugarcane into a range of high-value renewable fuels and chemicals using a proprietary synthetic biology technology. Brazilian company Raudi is also attracting the attention of foreign investors with its pioneer technology. The company makes “green” sodium bicarbonate using the carbon dioxide byproduct of alcohol production as feedstock. The company has an operating plant and plans to expand its capacity. All opportunities are being carefully analyzed by the international community and big players are investing heavily in Brazil to either build new ethanol mills or acquire existing assets run by local and less structured groups. Recently, the Brazilian unit of the French commodities group Louis Dreyfus agreed to take over the Brazil-
2|2010 BIOMASS MAGAZINE 45
INTERNATIONALByFelipeTavares,ThiagoCarneiroandAldemirMarreiros
ian firm Santelisa Vale. Dreyfus will hold a 60 percent stake of the new venture, called LDC-SEV, which will control 13 sugar and ethanol plants and have annual cane crushing capacity of 88 billion pounds (40 million metric tons), being the world’s second-largest sugarcane processor, only after Brazil’s Cosan. At least 10 major foreign groups are already getting their pieces of the Brazilian pie, including some of the biggest commodities companies such as Cargill Inc., Bunge Ltd., Tereos, Adecoagro, Noble Group and even the oil giant BP. From 2000 to September 2009, Brazilian ethanol companies were faced with 99 mergers and acquisitions. It’s important to mention that
Figure 2: Land Availability in Brazil
SOURCE: FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS; INTRATEC ANALYSIS
Way Beyond Don’t just let the chips fall where they may. Bring us on board for your next biomass project. All fuels. All technologies. All industries. All services. Together we will find your solution. Go to www.burnsmcd.com/bmcdbiomass to learn more.
Lindsay Blohn 816-333-9400 lblohn@burnsmcd.com
Engineering, Architecture, Construction, Environmental and Consulting Solutions
46 BIOMASS MAGAZINE 2|2010
INTERNATIONALByFelipeTavares,ThiagoCarneiroandAldemirMarreiros
45 of them occurred in the past three years, and 22 out of those 45 ventures involved foreign companies acquiring existing assets. The dilemma here would probably be the classic one of entering a new market: There’s still plenty of uncertainty in the young biomass-based industry. Would it be too risky to bet on a specific business now and lose competitiveness in the near future? It’s no secret that if the business environment changes considerably, future entrants will be favored. Indeed, in the commodities sector, often the latest entrants were the winners, wielding the most efficient technologies and producing on a larger scale. However, the trick is that
land and other vital resources should soon be at a premium (some already are) and waiting is likely to be a costly choice. In addition, newcomers will need partners, and the best ones may soon be taken. On the whole, companies aiming to compete really must devise entry strategies now.
Imperative Steps to Joining the Brazilian Green Wave If either a world-class or start-up company is planning to benefit from Brazil’s competitive advantages, through joint ventures, acquisitions or investing, a proper auditing process (due diligence) approaching Brazil’s company in focus, its agents and commercial partners is imperative. In the due diligence pro-
cess some vital steps must be considered, such as gathering data, reviewing documents, researching and interviewing current (and former) employees, business partners and related government entities. The goal of this initial approach is to establish precisely the expertise, competence and reputation of the company, understanding its business model and culture. Another big challenge that cannot be taken for granted is obtaining reliable data in Brazil. Unlike the U.S., where several agencies often publish compiled data that supports entrepreneurs and executives in the complex decision-making process, in Brazil gathering, and many times even discovering such information may be
a tough task. Usually and unfortunately, the source and the nature of the information provided are the main bottlenecks for auditing accuracy. Effective due diligence relies on a set of planned interviews that must be focused on relevant industry information, its processes and procedures; they must be able to disclose incomplete information and enable the understanding of companies’ performance, financial status and internal controls.BIO Felipe Tavares is president and CEO of Intratec Solutions LLC. Reach him at felipe.tavares@intratec.us or (713) 821-1745. Thiago Carneiro and Aldemir Marreiros are technical managers at Intratec Solutions. Reach them at thiago.carneiro@intratec.us and aldemir.marreiros@intratec.us.
2|2010 BIOMASS MAGAZINE 47
EERC
UPDATE New Approach to Stimulate Forest Biomass/Bioenergy Projects A recent exchange of e-mails between the Energy & Environmental Research Center and a county economic developer in a Pacific Northwest state highlights a recurring challenge in the U.S. wood biomass industry—how do we develop biomass energy projects in low-population regions that have huge resources but lack the financial backing and market interest to overcome that initial inertia of putting in a power plant or biorefinery? Current bioenergy business models tend to be based on low-cost or negative-cost biomass feedstock acquisition, such as having a healthy local lumber or pulp and paper mill industry to supply low-cost wood residues. However, to achieve more widespread utilization of biomass to significantly offset fossil fuel utilization, new aggressive approaches need to be developed. What works in one situation will not necessarily work elsewhere because of varied geographic, economic, environmental and sociological conditions. As an example, for more than 20 years, Minnesota Power, a utility based in northern Minnesota, has been taking advantage of low-cost wood biomass in the northeast Arrowhead section of Minnesota by using it to generate one-fifth of its electrical generation needs. A viable logging industry is still in place in this region to help with the infrastructure needs of consistent wood residue acquisition and delivery. Although this same model is used by other entities throughout the U.S., to reach the next level of significant biomass utilization, a much more integrated approach is required: one that includes more local buy-in and investment. The agricultural sector may provide a blueprint for an integrated approach in the form of cooperatives. The early ethanol industry used cooperatives to promote corn supply, ethanol pro-
duction, and distribution of ethanol and byproducts in the plains states. Even the newly proposed U.S. health care bill advocates the use of cooperatives in health care to offset rising costs and better utilize what is available. Perhaps the cooperative model Bruce Folkedahl may prove useful in forested senior research manager, EERC regions to help bring capital to projects not in the mainstream limelight and provide more payback and profitability for local stakeholders. In forested areas, such cooperatives could thrive and provide much-needed employment and local wealth. Side benefits would include reduction of wildfire hazards and enhancement of wildlife habitat. These cooperatives would need to bring all parties involved to the table to develop sustainable collaborative relationships: even entities that typically may be opposed to each other such as local environmental organizations, loggers, and processing industries in addition to local, state and federal officials. In addition to sustaining the current industries through frequent and persistent dialogue, these cooperatives could provide the necessary architecture needed to support nascent bioproduct technologies that require a consistent supply of feedstock as well as a support structure to help them attain success. It is the high-value-added bioproducts that will help to support these lowmargin industries in the future while providing the U.S. with a more sustainable future. BIO Bruce Folkedahl is a senior research manager at the EERC. Reach him at bfolkedahl@undeerc.org or (701) 777-5243.
2|2010 BIOMASS MAGAZINE 49
BIOMASS MAGAZINE
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