Biomass Feasibility Project Final Report - Xcel Energy
Biomass Feasibility Project Final Report - Xcel Energy
Biomass Feasibility Project Final Report - Xcel Energy
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Most promising categories. The bar graph below narrows our focus to the categories we have<br />
identified as economically feasible for bio-power applications. The gap between technical and<br />
economic limitations varies by feedstock type. Technical limitations account for most of the<br />
difference between the total energy and bio-power potential energy of hays, straws and stalks.<br />
For woody biomass, most of the difference between total energy content and bio-power<br />
potential is due to economic limitations. For manures each limitation plays a roughly equal role.<br />
500,000<br />
450,000<br />
Total<br />
Total<br />
400,000<br />
Technical<br />
350,000<br />
300,000<br />
Billion Btu<br />
250,000<br />
200,000<br />
Technical<br />
Economic<br />
150,000<br />
100,000<br />
50,000<br />
Economic<br />
Total<br />
Technical<br />
Economic<br />
0<br />
Agricultural Residues Wood Manures<br />
Figure III-13: Theoretical, Technical, and Economic Potential of<br />
Crop Residues, Wood, and Manures<br />
Comparing Costs of <strong>Biomass</strong> and Fossil Fuels<br />
Hays, straws, and stalks and woody residues are the most abundant sources for biomass power<br />
feedstocks, but currently tend to be more expensive than coal. Figure III-14 illustrates the cost<br />
components of baled switchgrass, logging residues, and hybrid poplars in comparison to<br />
delivered coal. It is important to note that, as with other products, the per unit price of coal may<br />
decrease with higher volumes. Large scale coal-fired power plants (hundreds of MWs) operated<br />
under long-term utility contracts may pay around $1.08/MMBtu while smaller facilities (hundreds<br />
of kWs to tens of MWs) will pay higher amounts around $2.60/MMBtu (Lindquist, 2007). When<br />
comparing fuels for smaller plants, a higher cost of coal estimate would be more appropriate.<br />
This of course does not include any added environmental taxes that may be implemented at a<br />
later date (something to consider with such long-term operation schedules). Much discussion<br />
surrounds the idea of establishing carbon taxes to combat global warming. If such taxes were<br />
instituted, the price of coal could increase dramatically.<br />
Page 38<br />
Identifying Effective <strong>Biomass</strong> Strategies:<br />
Quantifying Minnesota’s Resources and Evaluating Future Opportunities