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Biomass Energy and its future in Wisconsin

Biomass Energy and its future in Wisconsin. David Donovan Manager, Regulatory Policy.

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Biomass Energy and its future in Wisconsin

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  1. Biomass Energy and its future in Wisconsin David Donovan Manager, Regulatory Policy

  2. “When I look ahead to the future of my industry, I see electric production that will be highly efficient, harness diverse resources, and be nearly emission-free. I believe this future is possible. But we need to support both smart policy and new technology today to make it happen tomorrow.” Dick Kelly Xcel Energy President and CEO November 2006

  3. Northern States Power Company- Minnesota Northern States Power Company- Wisconsin Public Service Company of Colorado Xcel EnergyElectric Customers 3.3 million Gas Customers 1.8 million Southwestern Public Service NSP-Wisconsin Electric Customers 245,000 Gas Customers 104,000

  4. A Leader in Renewables • #1 Wind Power Provider in U.S. • #5 Solar Power Provider in U.S. • #1 Renewables Provider in Wisconsin

  5. A Leader in Renewables • 14% renewables (2008) • 19 hydroelectric plants • 2 biomass plants • Large amounts of purchased wind

  6. Bay Front History • Constructed in 1916 by Ashland Light & Power and Street Railway Company • Improvements increased to five boilers and six turbines for a capacity of 92 MW • In 1979, first investor-owned, electric utility plant in the nation to burn waste wood • In 1986, began $15 million life extension resulting in current configuration of three boilers and turbines with capacity of 74 MW

  7. Bay Front Operations • 35 full-time employees • Wood purchases of  $5.0 million in 2008 • $20 million+ local economic impact • Generates an average of 325,000 MWh/year • Helps meet Wisconsin’s RPS • Beneficial use of fly ash to construct “pad sites” to aid local farmers, ranchers, others

  8. Fuels at Bay Front • Waste wood • Natural gas • Coal • Shredded tires

  9. Bay Front Operations • Installed nitrous oxide (NOx) reduction system to meet Clean Air Interstate Rules • Reissuance of Clean Air Mercury Rule

  10. Bay Front Gasification Project • Need for long-term plan for Bay Front • Financial and environmental considerations • Convert remaining coal-fired boiler to use biomass gasification technology • Project allows plant to use 100% biomass • Approx. $58 million • Adds 200,00-250,000 tons of biomass per year

  11. Biomass Gasification Process

  12. Major Environmental Improvements • NOx: 60% • SO2: 80% • Particulate Matter: 80% • Avoids 100,000 tons coal per year • Avoids 200,000 tons CO2 emissionsper year • Reduction in mercury emissions

  13. Regulatory Process • Feb. 2009 – Filed Application with PSCW • Certificate of Authority vs. CPCN • March-April 2009 – MPUC, NDPSC applications • Spring - Summer 2009 – Environmental Assessment • Fall 2009 – Public hearings • Fall or Winter 2009 – PSCW decision

  14. Review Process • Impact on electric rates • Emissions reductions • Construction schedule • Regulatory approval process • Fuel availability • WNDR sustainable biomass harvest guidelines • Biomass fuel flexibility, energy plantations, grower cooperatives

  15. Customer and Community Impacts • Eco-municipality goals of Chequamegon Bay • Retain fuel costs in Wisconsin • Support local economic development • Achieve carbon management goals • Meet renewable portfolio standards • Support local agricultural industry

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