Thermal Renewable Energy in New Hampshire: Issues and Opportunities

1. Thermal Renewable Energy in New Hampshire: Issues and Opportunities Charlie Niebling, Genl Mgr, New England Wood Pellet EESE Board May 8, 2009

2. Thermal Energy about one-third of total energy consumption in U.S. By Fuel Type By Use Thermal/Other PrimaryBy Segment Petroleum Coal Gas Nuclear Renewable Trans. Elec. Thermal/Other Primary Renewable Energy Consumption Source: Energy Information Administration

3. What is Thermal Renewable Energy “the control of heating or cooling through a system which uses energy from a sustainable source whose supplies are regenerative or essentially inexhaustible” NHOEP Thermal Renewable Energy Report

4. Examples Air: Using a heat exchanger, the thermal energy stored in air is extracted to control a conditioned space. Biodiesel: Transesterification of alcohol and animal/plant fats. Biomass: Combustion of forest/agricultural resources. Geothermal: The ambient temperature of the ground is used to heat or cool a system. Methane gas: Produced by decomposing waste, is collected, filtered and processed before being burned to make heat. Solar (Thermal): Liquid-filled tubes heated by sun. Heat collected in the liquid is pumped to a heat exchanger. Solar (Passive): The collection of heat obtained through non-mechanical means.

5. How Does NH Heat? Source: US Census Bureau, 2006

6. Source: U.S. Census Bureau

7. Pellet Stoves <85,000 BTU 30-50 lbs/day during winter Thermostatically controlled 200,000+ in New England alone 1 million+ in U.S.

8. 2. Sufficient Storage • 1-3 deliveries a year • Attractive and/or unobtrusive • 4. Easy Installation/Service • Simple venting • Simple, once-a-year maintenance includes ash removal The Future…..not that far off • 1. Home or Business Delivery of Pellets in Bulk • - Much like oil, gas, or propane • Convenient - you don’t need to be there • 3. Fully Automated Central Heating System • Boilers and furnaces support existing distribution system • Automated feed system • Self-ignition and self-cleaning • Safety that is superior to propane or gas

9. Bulk delivery

10. ProPell Energy (www.propellenergy.com) • Import, sell & service commercial boiler systems • 100-1,000 kW (340KBTU – 3.4 MMBTU) • Swedish and Austrian technology; very clean, 90%+ efficient • Bulk fuel delivery • Energy services • Office buildings, schools, prisons, public works garages, apartment complexes, hospitals, shopping malls etc.

13. Industrial combustion, district heating, combined heat and power…..HUGE potential in northeast

14. Public Policy Basis for Renewable Energy Incentives • Reduce reliance on foreign fossil energy; enhance national & regional energy security • Conserve energy through increased efficiency • Reduce air emissions (e.g. PM, SO2, Hg) • Reduce carbon emissions • Local sustainableeconomic development; JOBS

15. EFFICIENCY: Energy loss of different conversion technologies for woody biomass 90 80 70 60 Minimum 50 Energy loss ( % ) Maximum 40 30 20 10 0 Biopellet Thermal Biomass Electricity 2nd Gen. Biofuels (CE) Thanks to ProPellet Austria

16. RGGI, RPS Support Thermal Renewables • RSA 125-O:23 (II) Such programs may include, but not be limited to, improving the electrical and thermal energy efficiency of New Hampshire’s residential housing and commercial building stock • RSA 125-O:23 (VII-a) Reduce greenhouse gas emissions from all fuels used to provide electricity, heating, and cooling in New Hampshire; • RSA 362-F:10 (I) The moneys paid into the fund ….. shall be used by the commission to support thermal and electrical renewable energy initiatives. 

17. Thermal Renewable Study II.(a) The office of energy and planning …….shall study, evaluate, and make recommendations including potential legislation on: (1) A thermal renewable portfolio standard and other incentives or mechanisms that will promote the use of high efficiency low emission thermal renewable energy technology and fuels in residential, commercial, and industrial applications; (2) Regulatory, technological, or other impediments to the rapid deployment of thermal renewable energy systems; and (3) Recommendations to the state and local governments on programs and actions that can be implemented to encourage residential, commercial, and industrial use of thermal renewable energy.

18. Challenges with Thermal RPS • Oil, propane unregulated – difficult to track • No “grid” to monitor and verify energy inputs and outputs • No platform for tradable credits – No ISO-NE to manage and regulate • Who pays?

19. One possible alternative • Thermal “System Benefits Charge” coupled with statutory goal (e.g. 25% reduction in fossil energy for heating by 2025) • AKA a “carbon tax” on non-renewable fossil energy used for heat • Apply to oil, natural gas, propane, coal, kerosene based on CO2 emissions per unit energy output – tie to climate policy • Proceeds support - incentives, education, technology conversion, infrastructure • Tax reduced/eliminated if achieving mandate faster than projected

20. Examples of the Possible • SWEDEN – 40% of R/C/I space heat now provided by biomass, geothermal and solar thermal (SOURCE: SVEBIO 2008) • UPPER AUSTRIA – 90% of new residential construction now biomass thermal (SOURCE: ProPellets Austria 2008) • DENMARK – District heating provides 50% of all R/C/I heating; renewables are 20% of this, much of it from cogeneration (SOURCE: Univ. of Rochester, 2007)

21. Thank You www.pelletheat.com www.propellenergy.com cniebling@pelletheat.com 603-532-0122