BIOENERGY IN WASHINGTON STATE

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BIOENERGY INWASHINGTON STATE
PETER MOULTON Bioenergy Coordinator 360-725-3116
petermo_at_cted.wa.gov
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What is Bioenergy?

• Biofuel, Biogas Biomass
• Same as fossil energy solar energy captured as
  organic matter, released through combustion
• Bioenergy carbon embedded in short rotation
  ecologic, atmospheric and hydrologic functions
• Fossil energy concentrated and sequestered over
  eons through geologic processes

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Direct Displacement

• Biofuels lt-gt Petroleum
• Biogas lt-gt Natural Gas
• Biomass lt-gt Coal

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Bioenergy is also

• Replacement for liquid fuels
• Baseload power
• Rural economic engine
• Waste management solution
• But, not a panacea!

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Feedstock Sources

• Farm crops
• Fields
• Forests
• Factories (generators - food processors,
  renderers, mills, feedlots)
• Facilities (aggregators wastewater treatment,
  municipal solid waste, grease haulers)
• Could include some materials from fossil fuels,
  such as plastics

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• Washington State Biomass

Bone Dry Tons per Year

Agricultural Waste
2,255,385
 
Municipal Organics
4,141,453
 
Straws
1,909,534
 
Wood Waste
8,103,686

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Manure and Food Processing Waste
Municipal Organics
Wood Waste
Straws
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BDT/year
Million kWh _at_ 30 eff
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Biomass Supply by County
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Feedstock Challenges

• Most already commodities volatile markets and
  short-term contracts
• Off-take markets challenging volatile (fuel
  pricing), inconsistent (power pricing), not
  well-established (nutraceuticals)
• Need massive amounts dense, heavy, difficult to
  handle (co-locate with feedstock, scalable or
  mobile processing)
• Difficult business models need volume and
  pricing over time, stable co-product markets

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Production Pathways

• Biochemical (ferment to biogas)
• Chemical (catalyze to biofuel)
• Thermochemical (cook for biogas, biofuel or
  biopower)

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Biodiesel

• FOG (fats, oils, greases)
• Oilseeds in Brassica family (canola, mustard,
  camelina) best option for Columbia Basin
• WSU, OSU, U of I USDA developing high-yield
  varietals, improving propagation, exploring
  coproducts
• Waste grease (yellow and brown)

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Traditional Ethanol

• Starches (corn, potato)
• Sugars (cane, beet)
• Whole grains (wheat, barley)
• Wood waste (pulp and paper mills)

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Serious Challenges

• Washington produced twice grain corn in 2007
  (130,000 ac) as 2006, processed for ethanol, 70
  MGY (2.5 of current gas use)
• New corn acres displaced existing crops,
  primarily hay, creating local spikes in feed
  costs
• Growing scientific consensus corn is poor choice
  due to a low net energy balance, increased
  irrigation, and tillage impacts on soil and
  greenhouse gas emissions.
• Grains worth too much as food

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Future Ethanol

• Field waste (fruit, potatoes)
• Woody crops (hybrid poplars)
• Native perennials (switchgrass)
• Field residues (wheat and barley stubble, corn
  stover)
• Municipal solid waste
• Plants will switch as technologies mature

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Cellulosic Ethanol

1. Break down complex lignocelluosic materials fast
   and affordably
2. Do not produce expensive and deleterious waste
   streams
3. Refining must not use fossil fuels to generate
   the required heat and power
4. Process technologies need to handle diverse
   feedstocks
5. Sugars that can be processed cost-effectively
   into a range of fuels (not just ethanol)
6. Efficient water use (significant portion reused)
7. Fuel produced should be carbon-neutral
8. Produce valuable co-products
9. Work with existing biofuels infrastructure
10. Add processes in incremental fashion to manage
    capital
11. Production cost under 1.50 per gallon
12. Available today, not 2-5 years from now

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Petroleum Usage in Washington State by Sector
(2004)
lt 1
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Parallel Tracks

• Advanced Biofuels

Electrification
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Other Options

• Transit-Oriented Development
• Transportation System Management

• Transit, Rideshare Telecommuting
• Transportation Pricing

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Biofuel Facilities Operating Proposed (2007)
Biodiesel Production
Ethanol Production
Oilseed Crushing
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Biodiesel Facilities Operating (2008)
Imperium Renewables Capacity 100
Mmgy Feedstock Primarily canola Market Local
and Export (Europe) Columbia BioEnergy Capacity
8 Mmgy Feedstock Canola Market Local Standard
Biodiesel Capacity 8 Mmgy Feedstock Waste oils
and fats Market Local Gen-X Energy
Group Capacity 5 Mmgy Feedstock Waste oils and
fats Market Local
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Biofuel Production Trends

• Brown/Trap Grease
• Estimated 25 MMgy available statewide
• Creative public-private partnerships for
  wastewater treatment
• New Oilseed Crops
• Camelina, better than Canola under marginal
  conditions
• New cropping systems provide better oilseed
  integration
• Cellulosic Feedstocks
• Primarily wood waste and municipal solid waste
• Targeting ethanol production
• Algae
• Open pond and wastewater treatment facilities
• Used for both biodiesel and ethanol

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Biodiesel Retail Availability
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E85 Retail Availability
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• Romantic Vision
• Rural Economic Development
• Reduced Dependence on Imports
• Lower Fuel Prices
• Cleaner Air
• Lower GHG Emissions

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• Reality Check
• Volatile Commodity Pricing
• Net Exports of Biodiesel
• Ethanol Distribution Challenges
• Land Use Impacts on GHG Emissions

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Public Debate

• Food vs Fuel
• Net Energy Balance
• Loss of Biodiversity

• Soil Forest Health
• Designer Crops
• Water Demands

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• What Were Doing in Washington State
• WSU studies on feedstock viability market
  incentives for feedstocks and production that
  incorporate environmental and economic concerns
  coproducts to enhance economic viability of
  bioenergy RD on cropping systems and GHG
  emissions (crop diversity and direct seed, high
  residue systems)
• UW study on barriers to woody biomass utilization
• Start to decouple from petroleum economy by using
  waste feedstocks (mills, field and processing
  waste, MSW, woody material)
• Attracting advanced process technologies
  (including carbon sequestration)
• Better understanding of carbon, nitrogen, joules
  and dollars
• Public/private partnerships to bring new
  opportunities to fruition (pilot/commercial
  scales)
• Eye towards economic sustainability
  (community-scale, retention of values)
• Sustainability criteria

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• Future Vision
• Sustainable Feedstocks
• Efficient Water Energy Use
• Carbon Neutrality
• Scalable Mobile
• Retain Value at Local Level
• Community Energy Security

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• Why are Food Prices Increasing?
• Growing middle class in Latin America Asia
• Low worldwide wheat stocks
• Natural causes
• Increased labor costs
• Rising fuel costs
• Dollar decline
• Corporate profits
• Government policies
• Conversion of agricultural lands
• Market speculation
• 5 Domestic Food Price Increase in 2007
• 0.2-0.3 Ethanol use of corn
• 0.8-1 Fuel price increases
• 3.5-4 Other causes
• Family of 4 spending 500/month on food saw
  25/month increase
• 95 due to factors other than biofuels
• Biofuel estimated impact 1.25/month

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80 of the retail grocery cost is added after
the food leaves the farm
39 cents labor costs in processing and marketing
19 cents farmers share (gross)
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• Log commodity prices (blue), agricultural raw
  materials (red), energy (green) and food (black)
• (Source IMF International Financial Statistics,
  5/18/08)

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Grays Harbor Paper Wood-Fired Turbine

• 6,000,000 Energy Freedom Grant
• Public Partner
• Grays Harbor PUD
• Private Partner
• Grays Harbor Paper
• Project Components
• Wood-fired steam turbine helps to power
  papermaking at Hoquiam mill
• PUD purchases excess power from reliable source
  at stable prices in region prone to storm-related
  grid outages
• Power purchase helps mill offset swings in paper
  market.
• 25 new jobs created, total of 45 once fully
  operational, support for 225 jobs at the mill
• Use of woody biomass benefits forest product
  processors, loggers, truck drivers and other
  positions in timber industry

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Quillayute Valley Schools Biomass Energy

• 1,000,000 Energy Freedom Grant
• Public Partners
• Quillayute Valley School District
• Clallam Economic Development Council
• City of Forks
• Port of Port Angeles
• Private Partners
• Engineering bid currently open
• Project Components
• Replace heating oil boilers with wood-fired
  boilers to generate steam for area heating at
  Forks Middle School
• Exploring microturbine applications
• Local team assessed biomass economics CTED
  funded technical feasibility study
• Support for 130 local jobs at 13 mills
• Need additional funds (Congress, USFS)

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Snohomish County Farm-Grown Fuel

• 500,000 Energy Freedom Grant
• Public Partners
• Snohomish County
• Private Partners
• Whole Energy Fuels (crusher, processing)
• Wolfkill Feed Fertilizer (dryer, meal)
• Sno/Sky Agricultural Alliance
• NW Cooperative Development Center
• Project Components
• Grant for oilseed crusher for biodiesel
  production facility at Cathcart Landfill
• County, WSU and growers working with oilseed test
  plots since 2005
• Using landfill gas for seed drier
• Additional funds provided by USDA, US DOE and
  county solid waste program
• By 2012, 1200 acres to provide B40 blend for
  entire county diesel fleet

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Skagit County Farm Power Digester

• 500,000 Building Construction Grant
• Public Partner
• Skagit County
• Private Partners
• Farm Power Northwest
• Puget Sound Energy
• Skagitonians to Preserve Farmland
• Northwest Agriculture Business Center
• Project Components
• 6,500 tons of carbon from 1,500 cows
• 750 kW of electricity for 500 homes
• Bedding for cows and more environmentally benign
  effluent
• Proponents for property tax exemption
• Awarded USDA 9006 grant/loan
• Considering Small Company offering to provide for
  community investment

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Four major agroclimatic regions
Region 4
Region 2
Western WA
Eastern WA low to int. rainfall
Region 1
Region3
Eastern WA rainfed
Central WA Irrigated
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