Transcript Document
Biomass Energy and its future in Wisconsin David Donovan Manager, Regulatory Policy “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 2 Northern States Power CompanyMinnesota Northern States Power CompanyWisconsin Public Service Company of Colorado Southwestern Public Service Xcel Energy Electric Customers Gas Customers 3.3 million 1.8 million NSP-Wisconsin Electric Customers Gas Customers 245,000 104,000 3 A Leader in Renewables #1 Wind Power Provider in U.S. #5 Solar Power Provider in U.S. #1 Renewables Provider in Wisconsin 4 A Leader in Renewables 14% renewables (2008) 19 hydroelectric plants 2 biomass plants Large amounts of purchased wind 5 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 6 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 7 Fuels at Bay Front Waste wood Natural gas Coal Shredded tires 8 Bay Front Operations Installed nitrous oxide (NOx) reduction system to meet Clean Air Interstate Rules Reissuance of Clean Air Mercury Rule 9 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 10 Biomass Gasification Process 11 Major Environmental Improvements NOx: 60% SO2: 80% Particulate Matter: 80% Avoids 100,000 tons coal per year Avoids 200,000 tons CO2 emissions per year Reduction in mercury emissions 12 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 13 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 14 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 15