Utility's Interest in Using Wood for Power Production

Evan Hughes, Electric Power Research Institute, Palo Alto, CA

[Transcribed from tape of presentation]

Abstract

Short Rotation Woody Crops are a way to capture solar energy, especially in places where water is abundant. There is much enthusiasm for using short rotation woody crops as a way to get a very high yield at low cost and have a competitive solar energy resource.

When looking at wood as a potential major source of energy, biomass energy today is mostly wood residues. Although it is an important source of energy, it can’t grow to be a very major part of electricity supply. To get a major electricity supply from biomass we have to use land that would otherwise be idle farm land to specifically grow trees for energy.

The major objectives of our studies are to increase the yield in order to reduce costs, develop methods to irrigate at low cost to eliminate the dependency on a natural water supply, improve chipping operations, and drastically reduce the cost of harvesting. To reduce harvesting costs, specialized methods for crops that are uniform in size and shape should be incorporated instead of using methods utilized in natural forests.

There are possibilities for R & D to reduce costs, especially through collaboration. Since there are common interests among forest companies, collaboration is very important. In addition, it is important to prioritize and see where the biggest payoff will come.

There is also the area of collaboration or competition in the commercial arena. The price and value for pulp is so much higher than the value for fuel. With that kind of price differential it would appear that any woody crop would have a much higher likelihood of being used within the pulp industry. To cut the cost from both perspectives, a crop should be grown until its reached its most profitable potential, either for pulp or a higher value product. By moving to short rotation woody crops, this source of fuel would be much less costly.

Three important keywords to consider are residue, co-products, and co-firing. Using residues might be a basis for collaboration. With co-products, the value of one product, such as wood or pulp, subsidizes the price of fuel. Electric utilities are looking at co-firing, where a small amount of wood is burned along with coal using their existing equipment. The field price payed is very low, so there is a low incentive for growing a crop unless there is a breakthrough on the cost. Three factors that could result in a cost breakthrough would be high yield, low cost harvesting, and taking advantage of a subsidiary through a co-product or through the agriculture subsidiary that exists.

File posted on March 17, 1998; Date Modified: February 21, 1999