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Biomass Feasibility Project Final Report - Xcel Energy

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of plants that make profits in other ways, co-generation plants don’t have to carry the full<br />

financial load of their enterprises.<br />

Capital costs are lower, too, because co-generation takes advantage of existing infrastructures,<br />

like:<br />

• An existing site.<br />

• Management and workforce.<br />

• Electrical substations and transmission lines.<br />

• Roads and transportation.<br />

• Supply chains, like loggers or farmers.<br />

• Ability to buy additional biomass fuels, like timber slash, thinnings, wheat straw, or corn<br />

stover, from those same suppliers.<br />

• Water and sewer connections and back-up or start-up fuels.<br />

• A large internal power customer.<br />

Sources of Renewable <strong>Energy</strong> and Fuels for <strong>Biomass</strong><br />

Because so many U.S. timber and crop processors co-generate power from organic wastes,<br />

biomass ranks second only to hydro among renewable fuels for power.<br />

Table VI-2: United States Renewable <strong>Energy</strong> Generating Capacity<br />

Renewable<br />

Resources<br />

Hydro<br />

<strong>Biomass</strong><br />

Wind<br />

Geothermal<br />

Solar thermal<br />

Photovoltaic<br />

Total, 2002<br />

(NREL, 2006)<br />

Generating Capacity<br />

(MW)<br />

93,445 MW<br />

11,869 MW<br />

5,078 MW<br />

2,079 MW<br />

354 MW<br />

58 MW<br />

112,883 MW<br />

Among biomass fuels, timber residues predominate.<br />

Table VI-3: MW of Generating Capacity from U.S. <strong>Biomass</strong> Resources<br />

<strong>Biomass</strong><br />

Resources<br />

Timber residues<br />

Municipal solid waste<br />

Biogas<br />

Agricultural residues<br />

Landfill gas<br />

Total 2002 U.S. biomass capacity<br />

(NREL, 2006)<br />

Generating<br />

Capacity (MW)<br />

7,497 MW<br />

2,970 MW<br />

880 MW<br />

373 MW<br />

150 MW<br />

11,870 MW<br />

Underlying the figures above are several important points. The first is that existing biomass power<br />

generation is overwhelmingly a byproduct of manufacturing. Of those 7,497 MWs of capacity<br />

for timber residues, only 245 belong to utilities owned by the federal government, cooperatives,<br />

municipalities, or investors or public authorities. The remaining 7,252 MWs are tied to<br />

manufacturing plants, mostly pulp and paper mills. Since virtually all plants burning timber<br />

Page 72<br />

Identifying Effective <strong>Biomass</strong> Strategies:<br />

Quantifying Minnesota’s Resources and Evaluating Future Opportunities

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