Biomass Feasibility Project Final Report - Xcel Energy

CHAPTER I : INTRODUCTION
Bio-power – electricity and heat generated from biomass fuels -- has played a long but minor
role in U.S. electric generation. But its profile is rising. Concerns about the effects of imported
fossil fuels on the country’s environment and energy security have brought new attention to
biomass power. Increasingly, bio-power is being discussed as a potential contributor to
America’s energy independence.
It will take a substantial increase in bio-power development to realize that potential. In 2003, U.S.
bio-power provided 6,370 MW of net summer capacity and over 41 million MWh. In Minnesota,
bio-power accounted for 275 MW and 760,570 MWh (EIA, 2005). As Figure I-1 shows, over the
past decade those outputs haven’t changed much. In its most recent Annual Energy Outlook,
however, the Energy Information Administration (EIA) projects that energy from biomass will grow
to more than 61 million MWh by 2010, 72 million MWh by 2020, and 81 million MWh by 2025. EIA
further projects that nearly 5,400 MW of new bio-power capacity will come on line by 2025.
MWs
11,000
10,500
10,000
9,500
9,000
8,500
8,000
7,500
70,000,000
65,000,000
60,000,000
55,000,000
50,000,000
45,000,000
40,000,000
35,000,000
MWhs
7,000
1989 1994 1999 2004
Year
Capacity (MWs)
Generation (MWhs)
30,000,000
(compiled from EIA, 2001, 2002, 2005b) 1
Figure I-1: Total Annual U.S. Electricity Generated from Biomass
Given the recent surge in interest in bio-power potential, this project was conceived. The goal is
to summarize the current state of the bio-power industry, act as a resource when evaluating
diverse bio-power projects, and make recommendations for future research areas and policy
changes that would result in higher implementation of bio-power projects.
1 2004 data is preliminary.
Identifying Effective Biomass Strategies: Page 1
Quantifying Minnesota’s Resources and Evaluating Future Opportunities