Woody Biomass for Bioenergy in

Australia
Liz Hamilton, Senior Bioenergy Industry Officer

Bioenergy
* Renewable energy from organic matter, (biomass).
* Stored energy in biomass - natures solar batteries.

* Includes food processing waste, manures, crops,

woody residues, weeds and sewage which are then
converted into heat, electricity or liquid biofuels.
* Woody biomass refers to plant derived biomass that
is composed of cellulose, hemicellulose and lignin lignocellulosics. Focus of this talk

Woody biomass can be used to produce

Liquid biofuels
e.g. 2nd generation lignocellulosic ethanol
or
Stationary Bioenergy:
e.g. electricity, heating & cooling

Share of bioenergy in the world

primary bioenergy mix in 2007

10% of the worlds primary energy comes from biomass = ~ 50 Exajoules = 1018 joules

Source: IEA 2006 & IPCC 2007

Bioenergy
generation by
country - 2007

Source: IEA Bioenergy/

Geoscience Australia, 2007)

CO

Photosynthesis

Processing

Biofuels

CO

Slide courtesy: Steve schuck, Bioenergy Australia

GHG Emissions from various fuel types

Bioenergy reduces greenhouse gas emissions.

Constructed using data from the National Greenhouse and Energy Reporting System 2007
TABLE: Courtesy of the Clean Energy Council Bioenergy Roadmap

Life Cycle Emissions of Various Renewable Technologies

g/kWh
Black Coal
Gas CCGT
Bioenergy
Straw - steam cycle
Forestry residues steam cycle
Forestry residues gasification
Poultry litter gasification
Animal slurries anaerobic dig.
Landfill gas
Sewage gas
MSW incineration
Other renewables
Decentralised PV new homes
Wind on shore
Hydro existing large
Source: IEA/DTI UK report via Bioenergy Australia

CO2
955
446

SO2
11.8
0.0

NOx
4.3
0.5

13
29
24
8
31
49
4
364

0.88
0.11
0.06
1.67
1.12
0.34
1.13
2.54

1.55
1.95
0.57
2.68
2.38
2.60
2.01
3.30

178
9
32

2.03
0.06
0.04

0.70
0.02
0.02

Generated Renewable Energy in Victoria

Installed renewable energy
capacity technology in Victoria,
2010

Actual Generated Renewable

Energy in Victoria, 2008

Table:. Source: Clean Energy Council Renewable Energy Database, ABARE, 2010
Chart: Source: Parliamentary Inquiry into Approvals Process for Renewable Energy, 2010

Delta Energy NSW Mallee sp. co firing project

* DE - Australias largest power generator undertook analysis
comparing costs of meeting their 20% RET requirements using
various renewables.
* Investigating potential for mallee production for biomass.
* Trialling Crucible Carbon pyrolyser at Vale Power Station

Typical $A Capital Costs of Projects

Option

Base/$KW

Capacity factor

Factored cost/KW

Coal

$2600

.85

$3050

Biomass

$4400

.75

$5850

Geothermal

$5200

.80

$6500

Wind

$2400

.30

$8000

Solar

$5600

.40(?)

$14000

Opportunities for woody biomass to bioenergy

CEC Bioenergy Roadmap states bioenergy could
provide 4% by 2020 & between 19.8 30.7% of
Australias electricity needs by 2050.
Federal government mandated 20% renewable
energy by 2020; New SRES and LRET breakdown will
help bring REC prices up to encourage large
bioenergy project developments.
Increasing electricity prices & grid upgrades, landfill
price increases and tightening of EPA regulations will
help increase the viability of bioenergy.
Regional employment opportunities.

Full time equivalent ren. energy industry jobs

Source: Clean Energy Council Report, Clean Energy Australia, 2010, from SKMMMA, 2010

Barriers to Bioenergy - Clean Energy Council Report

Specific barriers to the bioenergy sector are:

* The lack of an adequate carbon price signal.
* Low price for RECs: disincentive for new projects.
* Regulatory gaps affecting eligibility & accreditation
* The high cost of arranging connection to the grid.
* The lack of general information on the value of embedded
generation to the network makes it costly to screen projects for
viable options and to optimise project location.
* Community support for local bioenergy projects.

Only Vic. has a feed-in tariff for bioenergy for

generating up to 100 kW from wind, solar, hydro &
biomass sources. Also, no rebates like solar hot water.

Nevertheless.
Considerable activity around Australia in the area of
woody biomass to bioenergy projects.
Most development where large thermal energy needs
& cheap, free or problematic waste biomass streams.
Opportunities for exporting biomass e.g. pellets to
Asia and Europe, and for building up local biomassusing industries e.g. in hospitals and other public
institutions, new housing developments and to
encourage group pellet heater buy ups.

Operating Woody Biomass to Bioenergy Projects

in Victoria
Note: this is just an example of some of the operating
woody biomass to bioenergy projects the list is by no means complete!

Australian Paper, Maryvale - Black Liquor to Power

* Black liquor- by product of pulp & paper making industry

* The Maryvale power station is the largest industrial

producer of renewable energy in Victoria.
* Generates ~ 200,000 MWh/year or 23 MWe average + over
2 million tonnes/year of process steam or about 1.5 million
MWh of thermal energy for their processes.
* In 2007, 69.5 % of Maryvale Mills
energy input was produced from
waste black liquor.
* Also potential to convert
black liquor into bio-oil or
gasified into transport fuel.

Thermal bioenergy production in Victoria

Reid Bros. Sawmill Yarra Junction
1MW(thermal) bioenergy
plant at their sawmill.
Burning 70-80 tonnes of
wood milling waste /week to
run their kilns.
Cost $350,000 to install in
2004, (nowadays maybe
$500,000).
Saving $300k/annum
compared to LPG they used
to use.
Photo and information: David Coote

Thermal energy production

Carter Holt Harvey Pine mill Morwell
Producing nearly 20MWth from one large boiler
Runs 24/7
Used to produce steam for their kilns.
Most larger Vic sawmills use their waste wood to produce
heat & steam for their kilns
65% of their mills energy is from renewable sources

Bioenergy Projects In Australia under

development
Focus on woody biomass to energy projects under
development mostly Victorian.
Again, this list is by no means complete, and;
Apologies to anyone who is developing woody
biomass to energy projects I have omitted.

Visy Paper recycling & RCR Energy: Campbellfield

Currently installing a Bubbling Fluidised Bed boiler
with 30.8MWth & 3.0 MWe capacity.
Will use up to 11.3 tonnes/hr of fuel ~ 50%
unrecycleable short paper/cardboard fibres, ~ 50%
plastics (not PVCs). Will also use urban wood waste

Norske Skog Biomass/Gas Cogeneration, Albury

Currently produces ~ 270,000 t/yr of newsprint 24/7 from
recycled paper & pine which are both processed onsite.
NS is in final study phase of a biomass/gas cogeneration
proposal to supply process steam and electrical power.
Boiler to be fuelled by mill & local regional waste steams:
* Hog Fuel from the debarking and processing of pine
* Recycled Paper Deinking & Water Treatment Sludges
* Local Council construction timber waste
* Forest residues

8 MW generated on-site:

5 new jobs in biomass supply chain +

up to 100 construction jobs.
75% reduction in natural gas use.

Plantation Energy Australia

PEA is Australias only industrial scale Densified Biomass Fuel
(DBF) pellet manufacturer using plantation residues.
Currently, one DBF plant in Albany 250,000 tonnes/yr; one
plant planned for Heywood & one in Mt. Gambier.
New 4 yr supply deal with Mitsui company worth > $70 million.
Brings them one step closer to developing these new plants.

New Royal Childrens Hospital - Melbourne

Aim to be Australias greenest hospital & reduce GHGs by 45%.
Various energy efficiency measures include a recently installed
600 kW, 90% efficient, wood boiler to help heat ~ 10% of hospital.
Capital cost of around $700K to install.
Will use 10,040 t/yr pellets, initially from PEA, Albany.

D&R Henderson, Benalla, Particle Board Plant

Plan to install downdraft, fluidised bed gasifier(s) to generate
heat & syngas to dry chips for particle board manufacturing.
Up to 18,000t/yr particle board sander dust & wood waste.
Reduced energy costs and avoids cost of sending 6,000t/yr of
sander dust to landfill (flammable, hazardous product).
Project cost - $1,950,000, RDV Support - $877,500
Reducing GHG emissions by up to 10,310 t/yr (not including
avoided landfill emissions same for all projects outlined).
Staged project, achieving energy savings of up to 200,000
gigajoules of natural gas/yr & net savings of > $200,000/yr.
Creating up to 6 new FTE positions through implementation

Real Power Systems Gasifiers & Wannon Water

Five projects have approval in principle in Victoria.
First gasifier recently commissioned near Hamilton, Vic. to
maintain heat in anaerobic sludge digester of Wannon Waters
recycled water processing facility partially heated with LPG.
Using dried sewerage sludge & wood chip for heat & biochar.
Gas flow rate aim was 300m3/hr but system producing 700m3/hr
Est. power available -+ 400kWe or 1320kWth

Ararat Shire gasification project for local pool

Looking to purchase a 60kW Ankur gasifier to help supplement
> half of the gas heating of the YMCA pool from wood waste.
Around 50kg of fuel/hr to generate 622 MJ heat/hr.
~ 400 tonne per annum operating 8,000 hours per year.
Currently pool heating costs ~ $40,000/year on natural gas.
Total capital cost: gasifier, new syngas suitable boiler,
automated feed in system and storage ~ $100,000.
Expected pay back period of ~ 5 years

Hancock Victorian Plantations

Trialing a Bruks Mobile Chipper in post harvest plantation slash.
Currently contracted in the NE in 20 yr old fire damaged pine.
Carter Holt Harvey using chip in their boiler at Myrtleford mill.
Interest from other industries to use the chip including particle
board manufacturer.

Second Generation, Lignocellulosic, Biofuels

Utilizing wood and crop residues unlike 1st gen. biofuels

More than 150 second gen. projects worldwide.
Two main technologies for making 2nd gen. ethanol
- Biochemical: conversion via hydrolysis to release sugars & fermentation to
alcohol fuels - difficult process cf. 1st gen. biofuel production.
- Thermochemical: gasification to syngas and synthesis to fuels.

Coskata Inc. Plasma Gasification to Ethanol Project

Vic. govt facilitating a $400 million, ethanol prod. facility to
produce 225 million litres of ethanol/yr for blending with petrol.
High temp. plasma gasification of biomass to syngas.
Can be based on any MSW or biomass waste streams.
Bio-fermentation of syngas with proprietary micro-organisms.
Recent $250 million US loan guarantee for 250,000 tonne/yr
pulplog based plant.

Bioenergy Activity in Victoria

Victorian Bioenergy Network - (DPI and SV) email network,
regular Bioenergy Business Breakfasts , other events
Various grants and incentives - eg.
* DPIs ETIS doubling of grant $ to $82 million in 2011.
* Federal govt $1.4 billion Regional Development Aust. Fund
Vic. Timber Industry Strategy - lifts the ban on the sale of
renewable energy generated by burning native forest waste.
DPI Biofuel Crop Potential in Victoria Project potential for 33
biofuel crops in Victoria now and in 2050.
Feasability for Biochar Production in Victoria: Sensitivity
Analysis undertaken by DPI in 2009.

Victorian Biomass Audit (TBC mid 2011)

Victorian Biomass Audit

Funded & managed by Regional Development Victoria.
Detailed mapping of available biomass to better inform
investors of scale & scope for resource recovery initiatives.
Drivers include:
* Incomplete data sets and lack of source specifics
* Increasing landfill levies
* Renewed EPA vigilance
* Pre-emptive assessment to identify industry and community
sustainability issues/options e.g. susceptibility of regional
industries to impending waste management bottlenecks.
Provide the basis for considered, prioritised industry and
energy facilitation.
Timber industry component of Audit completed late 2010.

Victorian Bioenergy Website

Thank you
Liz.hamilton@dpi.vic.gov.au

Senior Bioenergy Industry Officer

Department of Primary Industries, Victoria