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THE APPLICATION OF KENTUCKY POWER

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THE APPLICATION OF KENTUCKY POWER ( the-application-kentucky-power )

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According to data compiled from the U.S. Forest Service, over 5.4 million tons of harvest slash and rough/cull timber material is generated within 100 road miles of Cleco Power’s Madison Unit 3 facility each year; this figure does not include pre-commercial thinnings or underbrush.6 Based on research fkom the 1J. S. Department of Agriculture and the I.J.S. Department of Energy, and validated by land grant universities in the southern U.S., the rule-of-thumb maximum ecologically sustainable removal rate of harvest slash is 65% of the material generated fkomtimberharvestingandleftinthewoods. Engagingfuelsupplycontractorsthatunderstand forest biomass sustainability considerations and will abide by Best Management Practices and other guidelines as deemed appropriate for central Louisiana conditions by the Louisiana Departrnent of Agriculture and Forestry, the U.S. Forest Service, and/or other qualified entities is critical to maintaining a sustainable supply of forest biomass. Woody residues from forest products manufacturing facilities are typified by sawdust and off-cuts. Whiletheseproductscouldbeusedasfuelatbiomassgenerationfacilities,itisnot expected that such materials will be targeted as feedstocks, because most such materials are already being used as industrial fuel for on-site cogeneration at existing forest products manufacturingfacilitiesandforotherpurposes. AccordingtotheU.S.ForestService,ofthe322 millioncubicfeetofprimarymillresidue roducedinLouisianain2005,“lessthan1percentof theresidueswerenotusedforaproduct”? However,itisanticipatedthat,fromthetotime, some woody processing residues may be delivered to biomass generation facilities without having disruptive effects on existing markets for such materials. Dedicated woody crops are trees grown specifically for use as fuel. As of January 2013, Cleco Power is unaware of any known commercial tracts of dedicated woody energy crops in the central Louisiana region, although several stands have been considered. The primary benefit of dedicated woody energy crops will be the increased assurance of h t u r e fuel supplies, although the economics of such crops have not yet been demonstrated. Other Biomass Resources Agricultural crop residues such as corn stover or rice stubble could be harvested and used assupplementalfuel.’ However,mostcropresidueshaverelativelyhighashandalkalicontent, whichisproblematicformanyboilers. Inaddition,suppliesareseasonal,andthereiscurrently nosignificantinfrastructurefortheharvestingandstorageofcropresiduesintheregion. Based on the foregoing,the suitability and availabilityof crop residues as fuel for biomass generation facilities is currently considered low, relative to forest biomass. ‘IJdess otherwise noted, all references to quantities of woody biomass will be based on an assumed average moisturecontentof50%wetbasis;thus, 1milliongreentonsequatesto0.5milliontonsonadrymatterbasis. ’ “Louisiana’sTimber Industry..-AnAssessment of Timber Product Output and TJse, 2005”; SRS-130; US Forest Service;March2008. h~:ff~,srs.fs.~da.~ovlvub~srrbslf3r0b.pdf “BiomassEnergy ResourcesinLouisiana”;LSUAg Center;November2006. 3 PD.8360793.2

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