Xcel Energy Inc. · NASDAQ:XEL
Xcel Energy — Bepex International — Technical Presentation (2011)
24 slides from Xcel Energy's technical presentation, Dec 9, 2011
Slide 1: Biocoal for Renewable Biomass Power Generation
RD3 4 RD3-4 Biocoal for Renewable Biomass Power Generation Copyright – Bepex International – 2011 – All Rights Reserved
Slide 2: Acknowledgement
Acknowledgement Project funding provided by customers of Xcel Energy through a grant from the Renewable Development Fund. Fund Copyright – Bepex International – 2011 – All Rights Reserved
Slide 3: Why Biocoal?
Why Biocoal? • Coal is the largest source of energy for electricity – $340B Global Market • Coal use is expected to continue to grow for many years • Coal use is the second largest greenhouse gas source • Regulatory mandates to increase renewable energy and curb greenhouse gas emissions • Large exis
Slide 4: Raw Biomass: Challenges
Raw Biomass: Challenges • Pulverized coal power plant modifications required • Transportation and storage modifications required • Poor Hardgrove g Grindabilityy Index (HGI) • Propensity of raw biomass to rot • Pellets fall apart p when exposed p to moist environments • Relatively low bulk and energ
Slide 5: Opportunity
Opportunity Opportunity for an industrial scale process technology that produces a product from raw biomass that is p compatible with existingg coal infrastructure and supply pp y chains: Torrefaction 3 Copyright – Bepex International – 2011 – All Rights Reserved
Slide 6: Biocoal
Biocoal • Torrefaction mild pyrolysis: 200 – 320° C without oxygen • Upgrades raw biomass into a coal-like substance or “biocoal” • Increased energy (30%) and bulk density • Increased grindability (HGI 2.5X) over raw biomass • Less biologically active – easier import / export • More hydrophobic h d
Slide 7: Project Scope
Project Scope • Develop,p optimize p and demonstrate a torrefaction and densification (“biocoal”) process to improve storage capabilities, handling, usability and uniformity for the production d off renewable bl baseload b l d electricity, l h heat, or syngas. • Develop D l a fundamental f d l under
Slide 8: Fall 2008 Biomass Collection
Fall 2008 Biomass Collection 6 Copyright – Bepex International – 2011 – All Rights Reserved
Slide 9: Pilot Scale (10 MT/Day) Mass Balance
Pilot Scale (10 MT/Day) Mass Balance BIOMASS: 641 KGS/HOUR WATER: 641 KGS/HOUR WATER: 641 KGS/HOUR HEAT RECOVERY GAS DRYING BIOMASS: 641 KGS/HOUR INERT GAS TORREFIER OFF GAS TORREFACTION HEAT RECOVERY VOLATILES: 224 KGS/HOUR TORREFIED BIOMASS 417 KGS/HOUR DENSIFICATION TORREFIED BIOMASS 417 KGS/HR C
Slide 10: Biocoal: Similar to Coal
Biocoal: Similar to Coal Biocoal Sub-Bituminous (Corn Stover) Coal Caloric Value (btu/lb.) 8701 8313 Fixed Carbon (%) 26.8% 34.6% V l il (%) Volatiles 64 6% 64.6% 28 7% 28.7% Ash (%) 7.6% 8.2% Sulfur (%) 0.1% 0.7% Moisture (%) 1.1% 28.5% Bulk Density (lbs/ft3) >45 >45 Hardgrove Grindability Index >3
Slide 11: Pilot Scale Pulverized Coal Co-Firing Trial
Pilot Scale Pulverized Coal Co Co-Firing Firing Trial • Successfully completed in August 2009 • Tested torrefied and densifed corn stover • Co-firing at 10% & 30% with sub-bituminous coal • Flue gas composition (O2, CO2, CO, SO2, NOx) • Foulinggppotential through g the use of foulingg p probes • Hea
Slide 12: Emissions Reduction vs. Baseline (100% Coal)
Emissions Reduction vs. vs Baseline (100% Coal) SO2 NOx (lb/ (lb/mmbtu) b ) (lb/ (lb/mmbtu) b ) 10% Biocoal Bi l (Corn (C S Stover) ) 17 0% 17.0% 15 6% 15.6% 30% Biocoal (Corn Stover) 30.0% 28.3% 10 Copyright – Bepex International – 2011 – All Rights Reserved
Slide 13: Stoker Grate Co-firing Trials: District Energy
Stoker Grate Co Co-firing firing Trials: District Energy • 10% trial successfully completed in March 2010 • 30% triall successfully f ll completed l d in July J l 2010 • Torrefied and densifed corn stover biocoal tested • Co firing at 10 & 30% ratio with high rank eastern sub- Co-firing sub bitumino
Slide 14: Emissions Reduction vs. Baseline (100% Coal)
Emissions Reduction vs. vs Baseline (100% Coal) SO2 NOx (lb/ (lb/mmbtu) b ) (lb/ (lb/mmbtu) b ) 10% Corn C S Stover Bi Biocoal l 11 7% 11.7% 34 3% 34.3% 30% Corn Stover Biocoal 23.81% 41.30% 12 Copyright – Bepex International – 2011 – All Rights Reserved
Slide 15: Commercialization Economics
Commercialization Economics • Production costs: $17.85 USD / ton • Feedstock costs: $132.83 USD / ton • Price of biocoal: $151.27 USD / ton (FOB Plant) • Estimated E i d commercial i l scale l plant l construction i cost – $31.28 M USD (Year 2011) turn-key – without CHP system – 150,000 150 000 ton
Slide 16: Biocoal Production Costs
Biocoal Production Costs % USD / Ton $ Raw Feedstock 32.6% $ 5.75 Utilities 25 5% 25.5% $ 4.50 4 50 Salaries & Benefits 5.7% $ 1.00 General & Admin. 18.1% $ 3.20 Main. Expense 18.1% $ 3.20 Depreciation 100.0% $ 17.65 Costs $ 1 02 mmbtu 1.02 14 Copyright – Bepex International – 2011 – All Rights Rese
Slide 17: Co-Firing Economic Sensitivity Analysis
Co-Firing Co Firing Economic Sensitivity Analysis Negative Baseline Positive -20% -10% 0% +10% +20% Biomass Price ($/ton) (1) $57.90 $65.14 $72.38 $79.62 $86.86 Biomass Moisture (%) (2) 13.6% 15.3% 17.0% 18.7% 20.4% Natural Gas ($/mmbtu) (3) $3.50 $3.94 $4.38 $4.82 $5.26 Coal Delivered ($/mmbtu) (4)
Slide 18: Sensitivity Analysis: 10% Co-Firing
Sensitivity Analysis: 10% Co Co-Firing Firing Chaange in Price oof Electricity ((¢/kwh) 0.050 0.040 0.030 0.020 0.010 -20% 0.000 -10% 0% 10% 20% Economic Model Input Variables 16 Copyright – Bepex International – 2011 – All Rights Reserved
Slide 19: Est Yearly Emission Reductions: Sherco Unit #1
Est Yearly Emission Reductions: Sherco Unit #1 Est. 10% Co-Firing 30% Co-Firing 480,464 1,441,391 ((tons)) CO2 10.3% 30.8% (%) 1,074 1,937 ((tons)) SO2 15.8% 28.4% (%) 668 1,181 (tons) NOx 17.0% 30.0% (%) 9 28 (lb ) (lbs.) Hg 5.2% 15.6% (%) 17 Copyright – Bepex International – 2011 – All Rights Rese
Slide 20: Estimated Economic Impact: 30%
Estimated Economic Impact: 30% • Investments: $156.4 million – debt and equity • Annual Payments to Minnesota Biomass Suppliers: $103.2 million • Direct Full-Time Jobs Created: 75+ • Indirect JJobs Created: 75+ ((Harvesting, g Storage g & Transport) p ) • Annual CO2 Emissions Avoided: 1,441,391 tons
Slide 21: Project Results
Project Results: • Proved technical feasiblity of collecting corn stover biomass • Proved technical feasibily of continuous biomass torrefaction and densification to produce biocoal • P Provedd biocoal bi l finished fi i h d product d specifications ifi i meet known k minimum requirements for use in
Slide 22: Project Conclusions
Project Conclusions: • Biocoal (corn stover), while some technical questions remain, for the generation of renewable, near carbon neutral baseload electric power in existing pulverized coal electricity power generation facilities appears to be economically and technically feasible at lower inclusion
Slide 23: Questions?
Questions? Copyright – Bepex International – 2011 – All Rights Reserved
Slide 24: Contact Information
Contact Information: Kevin P. Grotheim, BSME, MBA Bepex International, LLC 333 Taft Street NE Minneapolis, MN 55413 +1 612 627 1430 [email protected] Copyright – Bepex International – 2011 – All Rights Reserved