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CALIFORNIA BIOENERGY UPDATE

CALIFORNIA BIOENERGY UPDATE. IASC April 24, 2003 Chris Trott Covanta Energy. What’s a Bioenergy Plant Do?. Bioenergy Plants Burn Wood in Modern Boilers and Make: Steam Electricity Ash Minimal Air Emissions. CA has 34 Operating Bioenergy Plants. Range in size from 5 to 50 MW

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CALIFORNIA BIOENERGY UPDATE

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  1. CALIFORNIABIOENERGY UPDATE IASC April 24, 2003 Chris Trott Covanta Energy

  2. What’s a Bioenergy Plant Do? • Bioenergy Plants Burn Wood in Modern Boilers and Make: • Steam • Electricity • Ash • Minimal Air Emissions

  3. CA has 34 Operating Bioenergy Plants • Range in size from 5 to 50 MW • Produce 1.5% of CA’s power • Use a variety of urban, forest, and agricultural wood residues • 18 Use wildland fuels

  4. Waste Disposal Energy Production Open Burning Uncontrolled air emissions 28% Biomass Mill residuesAgricultural residuesIn-forest residuesUrban residues 8 mil. tons/year Power ProductionControlled emissionsAvoided fossil fuel use Landfill Disposal Landfill AccumulationMethane emissions 62% OR 10% Forest AccumulationIncreased fire hazardReduced water yieldDiminished forest health Renewable Benefits Worth 11.4 cents/kWh!

  5. California Biomass Power Plants in 2002 Thinned Forest Survived Fire Source: Green Power Institute 2002

  6. Spring of 2003 • 26 Plants With Long-term Utility Contracts • Negotiated 5-year fixed price deals for 5.37 cents/kWh • Utilities continue to pay back money owed over time • 3 Plants With Short-term (3-5 yr.) Contracts • Fixed energy prices: 5.3 - 7.5 cents/kWh • 5 Merchant Plants • 3 with 180-day contracts, terminate June 30 • Summer spot market?

  7. Bioenergy Support Programs • Agricultural Biomass Grant Program • $10 million/yr for 3 years (expires 6/03) • $10/ton incentive for bioenergy plants to use ag waste otherwise open-burned • Very successful 1st 2 years – decreased ag burning by 350,000 TPY • Not funded in FY 2002-03

  8. Bioenergy Support Programs • Renewable Energy Production Credit • Administered by CEC • Funded by utility ratepayers • Adds: • 0.3 cents/kWh for plants with utility contracts • 0.6 cents/kWh for merchant plants • CA Renewable Portfolio Standard • 20% all energy renewable by 2017 • Program rules being developed at CPUC • Impacts unknown

  9. Source: Green Power Institute 2002

  10. The Future? • Federal Biomass Energy Tax Credit? • Renewable Portfolio Standard? • Phaseout of Ag Burning? • Requirement for Bioenergy Plants to Use Ag Fuel? • Ag/Wildland Open Burn ERC’s?

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