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Residential Customer Agreement, Nc

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Residential Customer Agreement, Nc Powered By Docstoc
					Biopower: A Utility Perspective

          Peter Hoeflich

          October 1, 2009
Discussion



 l   Progress Energy
     w   Background
     w   Critical Success Factors

 l   Renewable Energy Drivers / Options / Challenges
 l   Biomass Challenges
     w   Fuel Sourcing and Sustained Supply
     w   Biomass Technology Choice
     w   Other Challenges

 l   Conclusions and Future Direction


                                                       2
Progress Energy Background



                         Progress Energy Carolinas
                            34,000 sq. mile service area
                            1.4M customers
                            12,600 MW capacity
                            18 plants, 83 units
                            2.2% customer growth (7-yr CGR)
                            5,000 employees
                         Progress Energy Florida
                            20,000 sq. mile service area
                            1.7M customers
                            10,100 MW capacity
                            14 plants, 63 units
                            2.2% customer growth (7-yr CGR)
                            4,000 employees




                                                               3
                                                4




Power Generation Engineering
l   Support the Non–Nuclear Generation Fleet
    (Coal, Gas, Oil, and Hydro)

l   Focus Areas
     w Fuel Flexibility
     w Generation Portfolio Optimization
     w Environmental

l   Technology/Opportunity Assessment, Test &
    Application
Renewable Energy Drivers



                                  State RPS
                           NC SB3: 3% Renewables in
                           2012 increasing to 12.5%
                                    by 2021

                            FL and SC: no state RPS
                                 Federal RPS
                             Waxman-Markey Bill:
                              20% Renewables
                                 by 2020
                               Climate Change
                             Waxman-Markey Bill:
                            17% CO2 reduction from
                              2005 levels by 2020


                                                      5
NC REPS Compliance Timeline and Cost Caps


                                                                        % of NC Retail Sales
                                                         2012                                  2015          2018        2021

 Total REPS Requirement                                   3%                                    6%           10%         12.5%

                 Set Asides                2010          2012         2013          2014       2015          2018        2021

 Solar Electric or Solar Thermal           0.02%        0.07%                                  0.14%        0.20%

 Swine Waste                                            0.07%                                  0.14%        0.20%

 Poultry Waste (MWhs)                                   170,000     700,000        900,000

 * Energy efficiency can account for 25% through 2020 and up to 40% thereafter

                                              REPS Incremental Cost Caps

                                   Years    2008-2011                  2012-2014                     2015 & thereafter

            Customer Class                                        Annual Cap per Customer Account

               Residential                    $10.00                    $12.00                            $34.00

               Commercial                     $50.00                    $150.00                          $150.00

                Industrial                   $500.00                   $1,000.00                        $1,000.00


                                                                                                                                 6
Renewable Energy Options




                       Short Term + Long Term Renewable Energy Options
                       for FL, NC & SC
                       Solar PV
                       Solar Thermal
                       Biomass Co-firing
                       Biomass Re-powering
                       +
                       Solar Thermal (Integrated / steam augmentation)
                       Off-Shore Wind
                       Ocean
                                                                     7
Renewable Energy Challenges


  Limited renewable energy potential compared with rest of US
  Renewable energy is expensive today
  MW vs. MWhrs
  Regulatory uncertainty
      Utility cost recovery
      Customer bill impact
  Solar is “in”
  Mountain top and off-shore wind are a ways off
  Is Biomass/fuel crops the answer?
  Biomass fuel sourcing and sustained supply
  Site specific concerns about biomass e.g. increased traffic,
  public perception
  Investment capital prioritization

                                                                 8
Biomass Challenges



  Fuel Sourcing and Sustained Supply
  Biomass Technology Choice
  Other Considerations
     Siting
     Permitting
     Public Perception
     Cost: Capital Investment, $/MWh, Cost Recovery
     Construction
     Operational Issues
     Site Operations



                                                      9
  Biopower: A Utility Perspective
Fuel Sourcing and Sustained Supply

            Peter Hoeflich

           October 1, 2009
                                                                                         11

NC Biomass Resources
                       NREL Biomass Potential rating for NC:
                                                               Very                 Out-
                          Low       Marginal     Good                 Excellent
                                                               Good               standing
                                                                                         12

SC Biomass Resources
                       NREL Biomass Potential rating for SC:
                                                               Very                 Out-
                          Low       Marginal      Good                Excellent
                                                               Good               standing
                                                                                         13

FL Biomass Resources   NREL Biomass Potential rating for FL:

                                                               Very                 Out-
                          Low       Marginal      Good                Excellent
                                                               Good               standing
Competition for Biomass Resources




                                    14
                                                                                              Delivered Cost, $/MBtu




                                        0.0
                                                                                    1.0
                                                                                                                2.0
                                                                                                                                                                        3.0




                               15
                                              Axe Boys Tree Service
                                              Green Thumb Tree & Shrub Service


                                                Georgio's Wood Products, Inc.




                                                                                                                                                     Waste
                                                  If I Could I Wood Products




                               2,291
                                                                                                                                                     Urban Wood




                                                                                                             Energy Crops
                                                    Matthew's Lumber and Sawmill




                                                                                                             Secondary Wood
                                                                                                                                                     Forestry Residue

                                                                                                                                  Sawmill Residues

                                                                                                             Products Residues
                                                    This Land is Your Landfill

                                                     King County Forestry Residues
                                                         Block County Forestry Residues
                                                         Pile-it-on Pallet
                                                           Larry's Wood Products




                               4,568
                                                            Kieth County Forestry Residues
                                                            Pabst Millworks
                                                                    Jackson County Forestry Residues
                                                                     Craftsman Lumber



                                                                                      Not in Your Backyard Landfill




                               6,844
                                                                                                                                                                              Plant Biomass Cofire = 5280 MBtu/day




                                                                                          Queen County Forestry Residues

                                                                                          Ryan County Forestry Residues




Quantity Available, MBtu/day
                                                                                          Chi-Chi's Lumber Mill




                               9,120
                                                                                           Johnson County Forestry Residues
                                                                                                Pro County Forestry Residues

                                                                                                   What a Waste Service

                                                                                                        Pal's Pallet Service
                                                                                                                       Boyd's Pallet
                                                                                                                       Uncle Ed's Sawmill
                               11,397




                                                                                                                                                       A Big Guy's Sawmill
                                                                                                                                                                              2x Plant Biomass Cofire = 10560 MBtu/day




                               13,673
                                                       Cumulative Price Trendline




                                                                                                                                                         Valley Lumber
                                                                                                                                                                                                                         Sample Bio-Mass Fuel supply curves




                                                                                                                                             Grinding Resources
                                                                                                                                 Hidden Valley Ranch Energy Crops
                                                                                                                                                                                                                                                              15
                                                                              16

Biomass Fuel Sourcing & Supply SWOT Analysis


Strengths                              Opportunities
  GOOD biomass potential in NC,          Long-term agreement with
  SC, FL                                 biomass fuel aggregator
  Existing sourcing & supply             Energy crops
  industry through sawmill and pulp      Low capital cost options:
  & paper industry                           Torrified wood / biomass
                                             Wood / biomass pellets




Weaknesses                             Threats
  Limit on biomass resources             Biomass price affected by sawmill,
  Biomass fuel has low energy            pulp & paper industry and other
  density: high transportation costs     industry (emerging)
  relative to coal                       Competition for biomass
                                         resources: Europe, US Utilities,
                                         biopower industry
Biopower: A Utility Perspective
 Biomass Technology Choice

          Peter Hoeflich

          October 1, 2009
Pulverized Coal System




     Pulverized fuel
       powder-like




                          Pneumatically
                       conveyed to burners
                                                                                              19




    Co-Firing of Bio-mass
                                                                             Steam
                                                          Existing Boiler
Co-firing: use existing
pulverized coal unit (fuel
blending, co-milling, separate     Biomass                                            Turbine
injection)
                                            Existing
   Optimized for coal not        Coal       Mills
    biomass
   Lowest biomass cost option
   Lowest risk: unit can still
    operate on 100% coal
                                                                            Steam
   Minor modification to                                 Existing Boiler
    existing site permits: within
    PSD air/water threshold
                                               Biomass                              Turbine
   Greater CO2 benefit:          Biomass       Sizing
    displaces coal, unit more
                                               Existing
    efficient than dedicated         Coal       Mills
    biomass unit
Example Co-firing Candidate Plant
   2 units total output approx 350MW – Co-firing @ 10% = 35MW
                                                                 21




Re-Power
    Re-power: replace pulverized coal boiler with boiler
    optimized for biomass


 Optimized for primary fuel
 Significant capital investment
 Significant planning, design, construction and commissioning
 Project Duration = 36-48 months
                               4 Choices:                                             22
                                PC Coal Co-firing


Biomass Technology              CFB: Circulating Fluidized bed
                                BFB: Bubbling Fluidized bed
                                Stoker


                               Key Challenge: Choose for fuel available now and also
                               fuel available in the future




                            BFB                       Stoker
                                                         construction
                     high moisture                          debris,
                         fuels                            municipal
                                                          waste, high
                                                          alkali fuels
                                        TDF, bark,
                                         wood,
                                       agricultural
                              sludge      waste




                                       Coal, Pet
                                        Coke


                                          CFB                 TDF=Tire Derived Fuel
Biomass Fuel Comparison: Heat Content

                        16,000
                                            Heat Content of Various Biomass Fuels Compared to Coal            14,000
                        14,000
                                                                                                     12,500
                                                                                            12,000
                        12,000
Heat Content (Btu/lb)




                        10,000                                                      9,500
                                                                           8,800

                         8,000                            7,200    7,500
                                                 6,500
                         6,000           5,500
                                 4,500
                         4,000

                         2,000

                            0
Issues - Fouling and Corrosion
                        Fouling   Corrosion
   Woody Fuels
   Agricultural Fuels




                        Low          Low
Wood Yard– Sample Layout

                              Outdoor
                              Pile




                  Covered   Truck
                  Biomass   Dump
                  Storage
                                               Day
                                               Silo
                                                              New Biomass Truck
                                                              Delivery Road


 Optional Barge
 Unloading
                                                Units 1 & 2
                                                Day Bins




                                      Units
                                      1&2



                                    Unit 3




                                             Unit 3
                                             Day
                                             Silo
Biopower: A Utility Perspective
      Other Challenges

          Peter Hoeflich

          October 1, 2009
Utility Scale Biomass: Fatal Flaw Analysis


   Selection Criteria                    Co-fire                                 Re-power
                                    1.0 tons per MWh                         1.5 tons per MWh
    Fuel Availability                350k for 50 MW                           525k for 50 MW
                                        Competition                              Competition

                            Blend / co-mill / separate injection             Stoker / BFB / CFB
Technical Considerations          HR = 10,000 Btu/kWh                       HR = 14,200 Btu/kWh
         Siting                      Transmission etc.                        Transmission etc.

   Public Perception                         ?                                        ?

                                           Air                                      Air
      Permitting                          Water                                    Water

Cap Investment ($/kW)                     50-500                                 3150-4000

     Cost ($/MWh)                          3- 37                                   65- 113
                                 Required operation date                  Required operation date
     Construction                    18-24 months                              36-48 months
                                    Cash Flow: 40/60                      Cash Flow: 10/20/40/30
    Unit Operation         By-product re-use / storage / disposal   By-product re-use / storage / disposal

    Site Operations             42 trucks / day per 50 MW                63 trucks / day per 50 MW



                                                                                                             27
Conclusions



  Biomass Fuel Supply
    Progress Energy has good to very good biomass resources in service
    territories. NREL Scale: low, marginal, good, very good, excellent, outstanding
    Potential increased competition from new biomass power generation
    facilities, wood pellet plants and bio-fuel plants

  Biomass Options for Progress Energy
    Biomass Purchase Power Agreements
    Co-fire at existing PC units
    Re-power existing PC units with dedicated biomass boiler




                                                                                      28
Future Direction


Biomass Focus
  EPRI
     Member of EPRI Renewables Executive Committee
     Member of EPRI Biomass Interest Group (BIG)
     EPRI Renewable Generation Program (P84)

  Development Work / Testing
     Develop co-firing and re-powering potential sites / projects
     EPRI Torrefied Wood (TW) co-firing study at Southern Research Institute (SRI),
     Birmingham, AL. Currently in progress.
     Planning TW test at Cape Fear in 2009/2010; after SRI test.

  Continue to track bio-energy and bio-fuel industry developments
  Participate in SE USA biomass resource and bio-energy industry development /
  policy meetings e.g.
     Member of Southern Forest Resource Assessment Consortium (SOFAC)
     NC Environmental Management Commission Renewable Energy Committee Technical
     Advisory Group
     Heinz Center / Pinchot Institute SE Biofuels Policy Forum
     EPRI / Oglethorpe Power / Southern Company Biomass Summit

                                                                                      29
Biopower: A Utility Perspective
        Questions?

          Peter Hoeflich

          October 1, 2009

				
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