Overview of Biomass Utilization Options and Processing Challenges

1. Overview of Biomass Utilization Options and Processing Challenges Woody Biomass Utilization Forum Redway, California September 24, 2003 John R. Shelly University of California Cooperative Extension www.ucfpl.ucop.edu Partial Support – USDA Forest Service, State and Private Forestry

2. Challenges for Manufacturing Biomass-Based Products • Insure a Long-Term Supply of Biomass Raw Material • Overcome Material Property Limitations (biomass is a low quality raw material) • Reduce the High Handling and Production Costs • Improve Processing Knowledge • Develop New Markets • Encourage Research Funding and Investment Capital

3. Potential Products for Biomass • Soil Additives/Amendments • Firewood/Fuelwood, Combustion Fuel Chips • Pulp Chips • Solid Wood Products • Composite Panels • Fiber/Plastic Composites • Organic Chemicals

4. Potential Products for Biomass • Soil Additives/Amendments • Mulch – minimal equipment needs • Compost – require large volume, permits, turning equipment • Decorative/landscape soil covers Markets are very competitive, current demand being met, pathogen concerns

5. Potential Products for Biomass • Soil Additives/Amendments • Firewood/Fuelwood, Combustion Fuel Chips • Firewood – market effected by residential burning regulations • Hog Fuel (furnace, boilers) • Limited market • Densified fuels (pellets, fire logs) • Improve fuel density, MC uniformity, and ease of handling

6. Tub Grinder

7. Low value logs sorted for firewood or landscape materials mulch processed with tub grinder

8. Combustion of Woody Biomass to produce electricity California has biomass power plants that consume large quantities of woody biomass

9. Total Production: 275,793 GWh Biomass & Waste: 5,663 GWh Source: California 1999 Gross System Electricity Production, California Energy Commission

10. 20 MW Biomass Powerplant

11. Typical CA Biomass Powerplant • 20 MW plant produces about 130 GW/yr • New plant construction cost = $65 million + • Processes 140 - 200 thousand tons/yr (1BDT/MW/hour) • Biomass transported up to 50 miles • Delivered Biomass valued at $15 - 25 per ton • Average production cost = $0.05/kWh • Market value for power = $0.025/kWh -- ???

12. Use about 9 to 10 million tons of green biomass per year (4-5 BDT/yr) • 75% forest base • 15% Urban woody • 15% Ag residue

13. CA Biomass-Based Power Plants Last one Built in 1997 Source: Biomass Energy Facilities, California Air Resources Board, April 25, 2001.

14. Costs for Chipping Operation $ per bone dry ton DBH (inch) Source: Hartsough, 2002

15. Environmental Impact Slide provided by Wilson, Oregon State Univ.

16. Life Cycle Assessment of Wood Processing Air Emissions NOX, SOX, CO2, … CO2 SUN Log Products Carbon Storage Recycle CO2, Methane,… Disposal/Landfill Slide modified from original provided by Wilson, Oregon State Univ.

17. Densified Fuels • Pros • Higher fuel density than biomass chips • Consistent size/shape good for automated feed • Cons • Saturated market at present • Difficult to use green biomass in processors

18. Densified Fuel

19. Gasification Converts biomass to a gaseous fuel that can be burned cleaner than direct combustion of the biomass

20. Gasification Process o (In excess of 600 C) Producer gas Micro - turbines Biomass Pyrolysis or Combustion Char & Ash Char Producer gas Conversion Char Heat & Ash Ash & Exhaust Gases Combustion SO ~ 0.15 lbs per million BTU 2 NO ~ 0.05 lbs per million BTU x Heat CO ~ 0.05 lbs per million BTU Particulates ~ 0.025 lbs per mill ion BTU *producer gas - a mixture of carbon monoxide, carbon dioxide, hydrogen, and water.

21. Community Power Gasifier: 12.5 KW

22. Chiptec Gasifier and Combustion/Boiler Unit

24. The Future of Biomass Power Plants Depends on … • Deregulation policies • Relative price of natural gas and electricity • Implementation air quality regulations • CO2 • Particulate size • Carbon Sequestration -- does biomass CO2 have a zero emission impact? • Societal value on biomass disposal/use

25. Potential Products for Biomass • Soil Additives/Amendments • Firewood/Fuelwood, Combustion Fuel Chips • Pulp Chips • Volatile markets – off shore or out of state • Limits to chips from small diameter (juvenile wood) • Old pulp mills closing, new pulp plants in Western US unlikely

26. Potential Products for Biomass • Soil Additives/Amendments • Firewood/Fuelwood, Combustion Fuel Chips • Pulp Chips • Solid Wood Products • Landscape posts, poles, fencing • Structural roundwood • Lumber and derivative wood products

27. Round Wood Products • Pros • No saw kerf waste • Mechanical strength advantage • Dimensional stability is high • Cons • Limited markets

28. Pole Peeler

29. Small-Log, Pole Construction Slide provided by USDA Forest Service, Forest Products Lab

30. Small-log Roof System Slide provided by USDA Forest Service, Forest Products Lab

31. Connections are Difficult Slide provided by USDA Forest Service, Forest Products Lab

32. Lumber Products • Pros • Commodity markets well established • Processing equipment readily available • Cons • Small wood processors can’t compete with commodity producers (high processing costs) • Dimensional stability low

33. Small Sawmills for Small logs?

34. Small Log Processor Slide provided by USDA Forest Service, Forest Products Lab

35. Dimension Lumber ? – Warp is a problem Slide provided by USDA Forest Service, Forest Products Lab

36. Treatments Twist (mm) Restraint No restraint

37. Costs for Sawlog Operation $ / MBF DBH (inch) Source: Hartsough, 2002

38. Potential Products for Biomass • Soil Additives/Amendments • Firewood/Fuelwood, Combustion Fuel Chips • Pulp Chips • Solid Wood Products • Composite Panels – OSB, MDF • Unlikely, few plants in CA, raw material quality requirements are high.

39. Oriented Strandboard Sheathing

40. Potential Products for Biomass • Soil Additives/Amendments • Firewood/Fuelwood, Combustion Fuel Chips • Pulp Chips • Solid Wood Products • Composite Panels • Fiber/Plastic Composites • few plants in CA, raw material quality requirements are high.

41. Plastic Composite Lumber

42. Potential Products for Biomass • Soil Additives/Amendments • Firewood/Fuelwood, Combustion Fuel Chips • Pulp Chips • Solid Wood Products • Composite Panels • Fiber/Plastic Composites • Organic Chemicals

43. Organic Chemicals from BiomassMany Valuable Chemicals can be Made from Wood • Ethanol -- Hydrolysis/Fermentation • Charcoal, phenolic oils, methanol --Pyrolysis • Bio-Gases (low BTU, high CO) -- Gasification • Levulinic and Lactic acid (“building blocks”)– • Hydrolysis/Conversion • Pharmaceuticals -- Extraction • Fragrances -- Extraction

44. Biomass-to-Ethanol Technology Hydrolysis Fermentation Concentrated acid Gasoline or Yeast/other organisms E E E E E Dilute acid or Enzyme/acid 25% Lignin (young clean coal) SGSG SGSG EEEE EEEE 50% Cellulose G-G-G-G-G Distillation 25% Hemicellulose S-S-S-S-S Lignin Lignin Lignin Biomass G = Glucose (a type of sugar) S = Other sugars E = Ethanol Low-grade steam Power Plant Electricity Modified from source slide supplied by USDOE NREL

45. The MTBE/Ethanol Issue • MTBE was Oxygenate of Choice in CA • MTBE leakage from storage tanks has contaminated ground water • Governor mandated the removal of MTBE in the states gasoline by January 2004. • EPA recently denied CA request to reformulate gasoline without oxygenates

47. Gridley Project Dilute sulfuric acid/Enzymatic Rice straw + other biomass 20 million gal/yr 300,000 BDT per year (1/3 rice straw) Online—2004? Collins Pine Project Dilute sulfuric Acid Forest thinnings and mill residue 20 million gal/year 250,000 BDT per year Online—2005?? Proposed CA Ethanol Plants Estimated Cost Per Plant = $ 60+ Million

48. Marketing • Focus on Local and/or Niche Markets • Need Survey of Local Wood Users • Raw Material Requirements • Directory of Primary and Secondary Manufacturers • Emphasize the “Public Good” Angle

49. Biomass Uses that make the most sense to me • Large-scale powerplants • Perhaps small-scale (<1MW) in certain situations but need to look carefully at long-term economics • Roundwood products (poles and posts) • Composite (non-panel) products • Wood/plastic, wood/cement, etc. • Ethanol ? • Local Market Opportunities

50. Summary • Many woody biomass utilization challenges • Raw material quality, economics, markets • Slim Profit Margins – little room for mistakes • Small-Scale can’t compete in commodity markets • CA needs diversity in powerplants • CA needs gasoline oxygenates & alternative fuels • Focus on niche and environmental markets • Political and market issues are strong “drivers” • Important to understand the true cost of “doing nothing”