A Utility Perspective on
Renewables and Biomass
Doug Boylan – Southern Company
Traditional Utility
• Goals
– Low cost, reliable energy provider
• Selected technologies
– Hydro, nuclear, coal, natural gas
Drivers Toward Renewables
• Green house gas mitigation
• Market demand for Green
Power
• Government mandated
Renewable Portfolio
Standards (RPS)
• Seeking lowest cost
renewable energy options
Seeking Low Cost Large Scale
Options for RPS
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(Southeast US)
Solar - $$$
Wind – Good, but limited in resource
Landfill gas – Good, but limited resource
Small hydro – Good, but limited resource
Biomass – Good?
Purchase Credits – Sets renewable cost cap
Biomass Options
Co-firing
• Uses existing plant
• Displaces coal directly
• Reduced capital costs
• Application limited by ash and
operational considerations
• Co-Mill – limited percentage (3-5%)
• Direct Injection – Higher
percentage (10 - 20%), higher cost
Biomass Options
Gasification
• Higher capital cost
• Higher efficiency
• Displaces a higher
cost fuel
• Greater potential to
meet large RPS
generation needs
Contrast Wood and Grass as Fuels
Grass
Wood
Fuel Cost ($/MMBtu)
3–4
2 – 3.5
Moisture
10-15%
20-60%
Metals
Low
Low
Sulfur
Low
Low
NOx
Moderate N
Low N
Slagging and Fouling
High K
Moderate K
Catalyst effect
High?
Moderate?
Ash sales
? Non-spec
Low Non-spec
Co-fire ¢/kWh (Est.)
2.6 – 3.0
0 – 2.6
Gasification ¢/kWh (Est.)
?
1.0 – 3.0
Biomass - Closed and
Open Loop
• Biomass will probably need
tax or other incentives to
compete
• Tax incentives have tended
to favor Closed Loop
• Grass probably has the
best opportunity to be
Closed Loop
Conclusions
From the Utility perspective:
• Biomass has potential to supply
RPS requirements
• Grasses and wood each have
advantages and disadvantages
• Utility desire is to keep funds in
our service area
• Biomass will probably need tax
credits or other support to be
viable for renewable energy
Questions?
Costs of Co-Fire
0.040
Sulfur benefit
0.035
NOx benefit
milling energy cost
Labor cost
Cost Differential ($/kwh)
0.030
Capital cost
fuel diff cost
0.025
0.020
0.015
0.010
0.005
0.000
grass
-0.005
benefits
co-mill
benefits
dir inj
benefits