wood pellets the other north american energy...
TRANSCRIPT
Wood Pellets – The OTHER North American Energy Revolution
Presentation for: American Association of Port AuthoritiesMaritime Economic Development Energy Projects SeminarPensacola, FL – February 2015
Derik Andreoli, Mercator International --- [email protected]
Wood Pellets Consumption Growth Rates Eclipse Fossil Fuel Growth Rates
2/27/2015 DRAFT 2
Wood PelletsCAGR = 24.5%
Coal (4.1%)Natural Gas (2.6%)Oil (1.2%)
Wood Pellet Demand is Largely Driven by Rapidly Growing European Consumption
2/27/2015 DRAFT 3
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2009 2010 2011 2012 2013
EU Imports of Wood PelletsMillion Metric Tonnes
18.779%
3.917%
1.0, 4%
Sources of Wood Pellet Demand (2013)Metric Tonnes (millions) and Share of Total
Europe North America Asia (incl. Russia)
EU ImportsCAGR = 35.7%
6X Growth
U.K.3.7
U.K. Electricity Generation by Fuel Type
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201345%18%
202012% Coal41% Renewables
200849%
9%
Competitive Advantage of Wood Pellets for Power Generation
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Comparison of Alternative Sources of Power Generation
Baseload Power Renewable Low Carbon Price/kWh
Hydro $4.10
Coal $14.89
Natural Gas (Combined Cycle) $21.84
Wood Pellet Conversion $24.03
Nuclear $65.76
Onshore Wind $75.36
Offshore Wind $95.46
Solar PV $125.31
$4.10 $14.89
$21.84 $24.03
$65.76 $75.36
$95.46
$125.31
$0
$20
$40
$60
$80
$100
$120
$140
Hydro Coal Natural Gas Wood PelletConversion
Nuclear OnshoreWind
OffshoreWind
Solar PV
$/kWh
HighCapacityFactors
LowCapacityFactors
North American Exports of Wood Pellets
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0.0
1.0
2.0
3.0
4.0
5.0
2009 2010 2011 2012 2013
North American Exports of Wood PelletsMillion Metric Tonnes
U.S. Canada
98% fromSoutheast
80% fromBritish Columbia
VolumesDouble
VolumesDouble
Map of Existing and Proposed Wood Pellet Plants
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Tennessee River System
New pellet plant locationsare guided by inland shippingcosts and economies of scale
Wood Pellet Export Supply Chain
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Low Grade/Burnt Feedstock
Sawmill/Logging Residues
Pellet Plant
Rail
Barge
Export Terminal
Rules of Thumb
Each 500 MW power unit produces approximately 4 TWH per year when operating at a capacity factor of 90%
0.5 million MTPY (metric tonnes per year) are required to generate 1 TWH
2.0 million MTPY are required for each 500 MW power unit
Supplying 2.0 million MTPY is efficiently handled via a weekly call of a 50,000 DWT vessel (large handymax/small supramax)
This requires a conveyor system capable of handling 1,000 MT per hour, and
Approximately 10 unit trains per week
Supplying one 500 MW power unit generates approximately domestic 3,500 jobs
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Overview of Wood Pellet Export Terminal Characteristics
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Three 1,400foot tracks& Covered
Offload Facility
Two 25,000 MTStorage Domes
Handymax/Supramax
Vessel~50,000 DWT
Covered Conveyor
System(1,000 MT/h)
Georgia Biomass Export TerminalSubsidiary of RWE InnogySavannah, GA
Estimation of Potential Incremental European Wood Pellet Demand
Power Plant
Nameplate
Capacity
Capacity at
80% Utilization
Total Energy
Generation
Total Wood
Pellet Demand
MW MW TWH/Y MTPY
DRAX 1* 650 585 5.12 2.6
DRAX 2* 650 520 4.56 2.3
DRAX 3 650 520 4.56 2.3
DRAX 4** 650 520 4.56 2.3
Lynemouth 350 280 2.45 1.2
Tees 295 236 2.07 1.0
Tilbury* 750 600 5.26 2.6
EON Langerlo 500 400 3.50 1.8
Netherlands 875 700 6.13 3.1
Total Incremental Demand 9.4
* DRAX 1 and DRAX 2 are already online at end of 2014
** DRAX 4 may or may not be converted
*** Tilbury may or may not be brought back online
European Power Producer Wood Pellet Demand Outlook
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DRAX POWER STATION – U.K.- Six 660 Megawatt Units- Supplies 7% of UK electricity
CASE STUDY
Asia Demand
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Note on Potential Technological Developments
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White Pellets:FragileHydrophilicLower Energy Density
Black Pellets:SturdyHydrophobicHigher Energy Density
Stages of Value Added ProcessingSteam Explosion and Torrefaction
