Biomass Feasibility Project Final Report - Xcel Energy

FOREWORD
This report was funded by a grant from Xcel Energy’s Renewable Development Fund (RDF). The purpose of
the RDF is to promote the use of renewable fuels to generate electricity.
The Prairie Island agreement also ordered Xcel Energy (Northern States Power at the time) to create
specific amounts of electric power from renewable fuels like wind and biomass. Since then, the RDF has
funded a number of one-off biomass projects, but biomass power has not grown as quickly and surely as
wind power. (For a history of biomass projects, see Chapter VII.) The biomass mandate of 1994 was not
fulfilled until 2007 and has never met its original terms.
The reason for biomass’s long gestation period seems to be that, while wind technology is well developed
and understood, biomass projects are to some degree experimental. Biomass power is far more
complicated and contingent than wind power. Neither the developers of biomass power projects or the
regulators, policy makers, communities, and funders who must assess them have had enough information
to make a confident evaluation.
This study attempts to provide an objective evaluation of Minnesota’s biomass resources, not to argue for
or against particular bio-power projects or initiatives. Because bio-power responds to emerging state and
federal energy policies, bio-power projects almost certainly will be designed and built. The question is how
best to accomplish that within the limitations of natural and financial resources, including the pocketbooks
of electric ratepayers. Although its focus is electric generation, much of the study will also be useful to
developers of other projects, like biofuels plants.
That is not to say that our study pretends to be the last word. It is just the first step toward any specific
biomass project. Because of biomass’s complexity and contingency, the developer of a specific project
will need go into far more detail at the local level than this study could possibly provide.
A number of expert specialists have contributed to this project:
Kristen Funk (CEE)
Dr. Jerry Fruin (Consultant)
Dentley Haugesag (Consultant)
Rod Jeter (CEE)
Kyle MacLaury (CEE)
John Madole (John Christopher Madole
Associates, Inc.)
Nick Mark (CEE)
Kevin Nall (John Christopher Madole
Associates, Inc.)
Carl Nelson (Green Institute)
Mike Pease (Consultant)
Tom Spielman (CEE)
Richard Szydlowski (CEE)
Dr. Steven J. Taff (Consultant)
Douglas Tiffany (Consultant)
The following people unselfishly contributed their time in reviewing this final report. Their participation
should not be construed as approval of or agreement with the project. The Center for Energy and
Environment (CEE) is solely responsible for the content of this report.
Al Doering (Agricultural Utilization Research Institute)
Shalini Gupta (Izaak Walton League of America)
Mark Lindquist (Minnesota Department of Natural Resources)
Heather MacGee-Hill (Minnesota Pollution Control Agency)
Dan O’Neill (Northland Securities)
Mark Ritter (Xcel Energy)
LEGAL NOTICE
This report was prepared as a result of work sponsored by NSP. It does not necessarily represent the views of NSP, its
employees, or the renewable development fund board. NSP, its employees, contractors, and subcontractors make no
warranty, express or implied, and assume no legal liability for the information in this report; nor does any party represent
that the use of this information will not infringe upon privately owned rights. This report has not been approved or
disapproved by NSP nor has NSP passed upon the accuracy or adequacy of the information in this report.