Biopower Industry Working Group
Kickoff Meeting
Held Feb 7 at Ecocomplex
• 55 attendees
• Agenda:
– Context (EMP, OCE programs, Rutgers study)
– SWAT breakouts
– Subcommittee working groups defined
– Subcommittee breakouts
• Key Next step: CRA input
SWAT Assessment Summary
Strengths
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Power costs
Waste (cost, per capita, density)
Refinery Industry
Government Leadership
Baseload potential
Opportunities
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Connect developers and
communities
Predetermination of sustainability
Government/higher education
collaboration
Interagency coordination
Leverage petrochemical
infrastructure
Brownfield potential
Weaknesses
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Slow legislative and permit process
Feedstock Reliability and Quality
Permitting: Time vs. Uncertainty
Securitization of REC stream
Wholesale energy rates
Threats
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REC prices too low
Credit Crisis
Competing Industries for feedstocks
NIMBY
Emissions regulations
Biopower Working Group
Subcommittee Overview
Subcommittee
Priorities
Economics & Finance
- Benchmark other state programs
- Collect P&L prototypes
- Develop incentive needs by market segment
Regulatory
- Reexamine RPS including definitions of Class I & II
- Reexamine net metering rules for grid connected
systems, including a review of time of use rates.
Feedstock
- Establishment of aggregation supply chain
- Securitization of long term contracts
- Development of Performance and Reliability
standards
Biopower Working Group
Summary Comments
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“There are very few landfills left in NJ for development. …smaller scale landfill gas and wastewater treatment
projects need about 10 to 20% buydown on costs. Wood biomass projects can need anywhere from 25 to 50%
buydown.”
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“When we produce electricity, a 15-25 MW plant costs about $.05 per Kwh. When planning, we have a choice
between outputs, and find that the $.035 wholesale rate offered by the utilities makes electricity production not
economical. “
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“A REC price in the $20 range would not be enough to incentivize generators to burn biofuel. The higher cost of
biofuel and the lower heat value would simply not make biofuel attractive to a generator that has an alternative
fuel. “
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“Currently available feedstock is not enough to produce 900 MW Bio power…New ways of production of new
biomaterials have to be implemented. .. the state must be encouraged to invest about $75 million per year for the
next four years, so that new biomass materials are produced”
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“Incentives are needed to support early stage of development cycle— siting, permitting, engineering”
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“Many (or possibly most) existing generating facilities that are currently burning oil or that are dual fuel (oil and
natural gas) can burn biofuel. Using existing facilities has two advantages which go a long way toward
meeting…this can be done in a lot less time than developing a new project.”
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“The definition of Class I resources be expanded to include gasification of municipal solid waste, tires and
construction waste as long as these resources and technologies produce power that meets the appropriate
emissions standards. …Biodiesel that is produced in NJ from NJ feedstock sources should also be a Class I
renewable. “