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EPA Combined Heat and Power Partnership Biomass CHP Catalog • Alternative uses of the resource that could affect future availability or price • Range of fuel quality (i.e., contaminants that could affect power generation equipment) • Weather-related issues • For agricultural residues: percentage of farmers contracted to sell residues An introduction to the typical characteristics and regional availability of a variety of rural and urban feedstocks is included in Chapter 3. It is important to be as accurate as possible when making fuel availability assumptions because miscalculations can greatly impact the successful operation of biomass power projects. When fuel availability is known to be an issue in the planning stage, a power generation technology that can handle varying degrees of moisture content and particle size can be selected. Technologies that can handle several fuels in a broad category, such as agricultural residues, provide security in operation without adversely affecting combustion efficiency, operations and maintenance costs, emissions levels, and reliability. Information on fuel flexibility is included in the technology characterizations in Chapter 5 of this report. 2.2 Cost Considerations Collection Method The amount of a biomass resource that can be collected at a given time depends on a variety of factors. For agricultural residues and energy crops, these considerations include the type and sequence of collection operations, the efficiency of collection equipment, tillage and crop management practices, and environmental restrictions, such as the need to control erosion, maintain soil productivity, and maintain soil carbon levels.6 The collection mechanism used for agricultural residues and switchgrass is similar to what is currently used to collect hay. Different systems have varying collection efficiencies, driving the cost of collection to approximately 20 to 25 percent of total delivered cost, typically $5 to $7/ton. For wood resources, the cost of collection is one of the largest costs of delivered wood fuel. Forest residues can be collected easily by equipment that is already in the forest collecting timber, whereas forest thinnings can be more difficult to harvest due to site accessibility issues. For gaseous biomass fuels, such as LFG and wastewater treatment gas, regulatory requirements might have already mandated the collection of methane generated by these applications. Therefore the collection cost does not factor into a power generation project because it is a sunk cost that would be present regardless. However, as outlined in Table 4-3, collection costs for an LFG energy project can be significant (close to $1 million per 500 cubic feet per minute [cfm]) and should be factored into the economic evaluation of a potential project that is not required due to regulations. Resource Cost Some biomass resources do not involve compensating an owner for removal. However, payment (a “farmer premium”) may have to be made to a farmer for agricultural residues and some energy crops, like switchgrass, if collected from an individual’s land. The amount of the payment varies, but is designed to compensate the farmer for the value of the removed nutrients and compensate for potential soil compaction and decreased surface organic matter. Structuring payment based on distance from the plant is common, with farmer premiums of up to $15/ton for haul distances within 15 miles or $7/ton or less for distances around 50 miles. 6 Perlack and Turhollow, 2002. 2. Basic First Steps and Considerations 8PDF Image | Biomass Combined Heat and Power Catalog of Technologies
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