Biomass Feasibility Project Final Report - Xcel Energy

$9.00
$0.06
$8.00
$7.00
$3.16
$ per MMBtu
$6.00
$5.00
$4.00
$1.02
$0.38
$0.06
$0.59
$3.07
$3.00
$2.00
$4.80
$0.58
$4.30
$2.60
$1.08
$1.00
$1.30
$0.00
Switchgrass Logging Residues Hybrid Poplar Rnage for Minnesota
Delivered Coal
Costs at the Source Transportation to Storage Facility Costs at the Storage Facility Costs at the Power Plant
Figure III-14: Comparisons of Typical Delivered Fuel Costs
SUMMARY
In summary, biomass can be used as a source of energy using a variety of technologies, and in
a wide variety of applications. Many of the more advanced technologies available for
converting biomass to energy are in a period of rapid technological advance and commercial
deployment. Through their ability to improve the efficiency of biomass utilization and their ability
to transform biomass into higher value products, such as liquid fuels and chemical feedstocks,
these advanced technologies have the potential to revolutionize the economics of using
biomass as an energy source.
The challenge for policy makers in designing policies to advance the use of biomass as an
energy source is to arrive at policies that will encourage the use of biomass while allowing
market forces to sort out the combination of applications and technologies that will provide the
greatest economic benefit. The combination of policies that will most effectively meet that
challenge will depend, in part, upon the specific goal that policy makers wish to achieve. If the
goal is to increase the use of biomass as an energy source a different set of policies would be
used than if the goal is to increase the use of biomass to generate electricity.
Identifying Effective Biomass Strategies: Page 39
Quantifying Minnesota’s Resources and Evaluating Future Opportunities