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Agricultural processing residues such as rice hulls or sugarcane bagasse could also be used as fuel, although the same physiochemical and availability concerns discussed with crop residues apply to agricultural processing residues. Dedicated agricultural energy crops, primarily perennial grasses such as switchgrass or miscanthusconstituteapossiblefueloptionforthefuture. Comparedtodedicatedwoodycrops, the primary benefits af grass crops are much higher agronomic yields and the opportunityto use high-praductivitymechanizedharvestingequipment.’ However,thesefuelshaverelativelyhigh ash and alkali content, and the economics of such fuels has not yet been demonstrated under Louisiana conditions. Biofuelgenerationoperatingcostsarealsoscale-sensitive;large-scalefacilitiestypically have higher system efficiencies than smaller systems. While the cost of forest biomass fuels such as harvest slash, underbrush, or cull material is expected to include a nominal ‘cstumpage”cost (e.g., 506 to $1.00 per ton), it is far less than typical round wood stumpage prices. In fact, if for no other reason, higher stumpage costs for pulp timber or saw timber may almost certainly preclude medium-to-largediameter round wood fiom being purchased and used as biomass fuel for power generation. Other variable operating expenses include electricity and maintenance (primarily associatedwiththewoodyardequipment). Fixedoperatingcostsprimarilyincludelabor,along with other operating expenses typically associated with a power plant operation (e.g., insurance, preventative maintenance, and site upkeep). The biomass fuel supply chain is considered to encompass the greatest uncertainty for biopower generation. Key issues that must be addressed include the following considerations: 1. Long-termreliabilityofthefuelsupply,takingintoconsiderationthecontinued viability of the region’s forest products industry, potential competition for the resources, and potential disruptions in the supply chain such as hurricanes or other natural disasters.” 2. Cost of the fuel and factors affecting fuel costlprice fluctuations, the most critical being the price of diesel h e 1 for the harvesting, pre-processing and transport equipment. Almost all biomass supply contracts-whether for traditional Agronomic yield is generally considered a critical economic factor by bioenergy specialists. Perennial grasses producedincentralLouisianaareestimatedtoattainaverageyieldsof 12-18 tonsperacreperyear(drymatter basis), compared to 2-4 tonslacrelyeardmb for dedicatedwoody crops. lo Without timber production and removals by the existing forest products industry there would be no need for pre- commercial thinnings and no harvest slash generated. PD.8360793.2 4PDF Image | THE APPLICATION OF KENTUCKY POWER
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