biomass magazine - december 2009
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DESCRIPTIONDecember 2009 Biomass Magazine
INSIDE: BIOMASS DEVELOPERS LINE UP FOR BCAP FUNDING
Woody Biomass Demand
Intensifi es Growing List of Biomass Projects
Increases the Value of Wood Chips, Saw Dust and Shavings
U.S. Pat. 496,052
U.S. Pat. 6,731,219
TouchSwitchA Safer and More Efcient Belt Alignment Monitoring Device!s3ENSORISTRIGGEREDBYTHE FORCEOFBELTCONTACTs2EQUIRESNOHEATBUILDUP SOITSSAFERANDMOREEFlCIENTs(ARDENEDSTAINLESSSTEELFACEFORLESSWEARs%XTERNALTESTKNOBAND,%$FORSENSORTESTAND SYSTEMVERIlCATION
Roto-SafeFailsafe Rotation Detection of High and Low Levels of Bulk Granular Solids in Bins, Tanks or Silos!s3INGLEPOINTROTARYLEVELINDICATORs-OTORANDGEARBOXSWITCHOFFWHEN ROTATIONISIMPEDEDs3ENSITIVITYADJUSTMENTFORLIGHTOR HEAVYMATERIALS
M800 SpeedswitchSimple, Versatile and Reliable Underspeed Protection!s0ROTECTSROTATINGEQUIPMENTFROMDANGEROUS UNDERSPEEDCONDITIONSs3OLIDSTATENONCONTACTINGWITHSIMPLE h-AGNETIC3WIPEvCALIBRATIONs0ROVIDESANDUNDERSPEEDOUTPUTS ANDDIGITALSPEEDOUTPUTS
HotBus T500 EliteContinuous Bearing Temperature and Belt Misalignment Monitoring System!s$IGITAL#OMMUNICATION 3YSTEMFORMONITORINGUPTOPOINTSs!BSOLUTEANDRELATIVETEMPERATUREALARMSs5SERFRIENDLYMENUDRIVENSETANDCALIBRATIONs3INGLETWISTEDPAIRCOMMUNICATIONSAVES COSTSINWIRINGANDINSTALLATION
Bolt N GoThe Revolutionary New Assembly Method for Drop Forged Conveyor Chains!s.OWELDINGORCIRCLIPSREQUIREDs#HAINmIGHTSAREATTACHEDUSINGABOLT ANDNUTWITHAHIGHSTRENGTHHOLLOWPINs.ONEEDTOREMOVECHAINFROMTHE CONVEYORFORINSTALLATIONs2EDUCEDSHIPPINGCOSTS
U.S. Pat. 7,080,728
CC-S: Heavy-DutyElevator BucketsThick Front Lip and a Consistent Clean Discharge!s0ATENTEDPOLYMERBUCKETs4HICKh)CEBERG%DGEvFRONTLIPDESIGNIMPROVESPERFORMANCEs-AXIMIZECAPACITYWITHIMPROVEDlLLINGANDDISCHARGEs3TACKABLEDESIGNFORREDUCEDSTORAGEANDSHIPPINGSPACE
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4 BIOMASS MAGAZINE 12|2009
12 |2009 BIOMASS MAGAZINE 5
INSIDE DECEMBER 2009 VOLUME 3 ISSUE 12
FEATURES. . . . . . . . . . . . . . . . . . . . .
24 FINANCE State RPS, Incentives Spur Development State and federal support for bioenergy, in the form of renewable portfolio standards, tax incentives and grants, is allowing more biomass projects to move on to the preconstruction phase. By Lisa Gibson
30 INTERNATIONAL Bioenergy World Leaders All eyes are on the U.K. and China as the countries strive to meet aggressive goals to generate more power from renewable sources. By Lisa Gibson
36 MARKET Energizing the Woody Biomass Market The race to produce renewable energy has led to a growing list of projects from 10-megawatt biomass-powered plants using locally produced biomass to 295-megawatt plants that will export wood chipswhich is expected to have profound impact on the woody biomass market. By Rona Johnson
42 POLICY BCAP to Boost Biomass Harvest The Biomass Crop Assistance Program has undoubtedly caught the attention of biomass suppliers, producers and processors, and it will have a positive impact on some of those sectors. The jury is still out, however, on its long-term impact.By Anna Austin
CONTRIBUTIONS. . . . . . . . . . . . . . . . . . . . .
48 ANAEROBIC DIGESTION Who Gets the Upstream Methane Credits?Anaerobic digestion project developers need to clearly defi ne who gets the methane credits when negotiating power purchase agreements. By Joe R. Thompson and William H. Holmes
50 SUPPLY The Minneapolis Biomass Exchange: The Biomass MarketplaceNew trading platform facilitates biomass exchange and improves opportunities for biomass buyers and sellers. By Katie Hagen
FINANCE | PAGE 24
DEPARTMENTS. . . . . . . . . . . . . . . . . . . . .
06 Editors NoteLooking Forward to 2010By Rona Johnson
07 Advertiser Index
09 Legal Perspectives 11 Industry Events
12 Business Briefs
14 Industry News
53 BPA UpdatePitfalls of One-Size-Fits-All Approach to Biomass EmissionsBy Bob Cleaves
55 EERC UpdateBiomass Utilization, Rain Forests, and Their Effect on the U.S. Carbon FootprintBy Bruce Folkedahl
6 BIOMASS MAGAZINE 12|2009
Looking Forward to 2010
ts the end of the year and the list of proposed biomass pow-er facilities continues to grow, permits are being awarded and I expect construction to be buzzing along quite briskly by mid-2010.
Looking back, I think 2009 was a good year for bio-mass. In fact, it was quite good in terms of the government support for biomass production and project fi nance. Instead of using this issue to look back at 2009, however, the editors at Biomass Magazine were more interested in the current situation and in looking ahead. Thus, it was only fi tting for us to devote the last issue of the year on the woody biomass market, fi nanc-ing opportunities, the Biomass Crop Assistance Program and the worlds leading producers of bioenergy.
I see the fi rst part of 2010 as being much the same as 2009, mainly because there are still questions about what certain bio-mass resources are worth and the cost and logistics of harvesting, transporting and storing those feedstocks. Once these proposed plants start to come on line, those issues will be solved if only by necessity in order for the industry to move on. It would be nice if everything came together in a nicely wrapped package tied with a crisp bow, but at this point, I think its going to be more of a trial-and-error-type situation.
We know that industries arent built in a day, and that when things dont turn out as we expected there is always plan B. For example, Im not a big fan of the government-run health care option, but, Im not going to freak out if it passes because I trust that the powers that be will tweak it if it doesnt work as they had envisioned. Although that may sound easy, it is not. Its hard to come up with what you consider a good idea and watch it fail. Sometimes people get so fi xated on their great idea that they don't see failure as an option. It takes a smart person to be able to accept failure and move on.
Thats actually going to be one of my New Years resolutions: to be smart enough to recog-nize when my ideas dont work and to fi nd another solution.
I also have goals for 2010. One of them is to further develop our biopower and biogas maps and another is to develop monthly market reports for the different types of biomass. I envision a section in the magazine with a chart and some commentary about the woody biomass market. I would like to include municipal solid waste, crop residues and other biomass resources. If you have any information on how I can accomplish these goals, please shoot me an e-mail at email@example.com or call me at (701) 738-4940. And, let me know if you see something that should be changed as these goals develop. Thats when youll know if Im keeping my New Years resolution of being smart enough to see the error of my ways in 2010.
In the meantime, I hope your holidays are joyous. See you next year.
12 |2009 BIOMASS MAGAZINE 7
2010 International BIOMASS 60Conference & Expo
2010 International Fuel 54Ethanol Workshop & Expo
2010 Renewable Energy Technology 59 Conference & Exhibition
4B Components, Ltd. 2
Agra Industries 44
Biodiesel Magazine 57
BRUKS Rockwood 45
Christianson & Associates PLLP 29
Continental Biomass Industries, Inc. 4
CW Mill Equipment Co., Inc. 34
Detroit Stoker Company 46
Ethanol Producer Magazine 52
Energy & Environmental Research Center 8
Envergent Technologies 10
Factory Sales and Engineering Inc. 33
Geomembrane Technologies Inc. 35
Indeck Power Equipment Co. 38
Jeffery Rader Corporation 39
Kroger Air 23
Laidig Systems Inc. 32
McHale & Associates, Inc. 27
Roskamp Champion 28
The Teaford Co. Inc. 26
West Salem Machinery 40
Wolf Material Handling Systems 47
EDITOR Rona Johnson firstname.lastname@example.org
ASSOCIATE EDITORSAnna Austin email@example.comLisa Gibson firstname.lastname@example.org
COPY EDITOR Jan Tellmann email@example.com
ART DIRECTOR Jaci Satterlund firstname.lastname@example.org
GRAPHIC DESIGNERSElizabeth Slavens email@example.comSam Melquist firstname.lastname@example.org
PUBLISHING & SALES