Biomass Gasification: A New Standard of Small Scale Heat and Power BC Chamber of Commerce Energy Sum

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Biomass Gasification A New Standard of Small
Scale Heat and PowerBC Chamber of Commerce
Energy SummitJonathan RhonePresident and
CEO Nexterra Energy Corp. February 26, 2008
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Nexterra - A Brief Introduction

• Small-scale biomass gasification
• Technology converts biomass to synthetic gas
  substitute for NG
• Enables customers to self-generate heat and power
  from biomass
• Simple and commercially proven
• Clean, low emissions versatile
• 34 employees

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• University of South Carolina - JCI
• Converts wood waste to heat/power
• Supplies 80 of campus energy
• Lower fuel costs by 2 - 3 MM/yr
• Reduces GHGs by 22,000 tpy

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Markets

• 1. Industrial
• Forest products
• Mining/mineral processing
• Ethanol and food processing

• 2. Public Institutions
• Universities and colleges
• State, provincial federal facilities
• Hospitals

• 3. Power Generation
• Distributed lt10 MWe
• Independent power producers
• Utilities

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Market Drivers

• Higher prices for natural gas and oil
• Demand for renewable power
• Mandated reductions in CO2
• Energy security

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Bark Spread Powers Economics
Bark Spread 4-7/GJ
Historical Wood Price
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Green Power Pricing
Selected Prices for Renewable

Power /MWhr Ontario 120
Maine 125 Mass 125 Minnesota 110 New
York 100 SoCal Edison 110 NoCal PGE 112
Includes additional on-peak operating rate
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Biomass Resource

• Wood biomass in an abundant, renewable low cost
  substitute
• Sources include urban waste, mill residuals,
  roadside debris
• Prices variable wood fuel is widely distributed
  
• Energy potential from wood biomass
• BC 1,000 2,000 MWe
• US 15,000 20,000 MWe
• Future fuels include standing beetle kill and
  crop residuals

Over time, biomass will tend to trade on the
basis of its energy equivalency CIBC World
Markets
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• Why Gasification?

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What is Gasification?

• Converts carbon containing fuel into synthetic
  gas
• Syngas used to produce heat, power, synthetic
  fuels chemicals
• Widespread in 1800s in town gas operations
• Modern coal gasifiers (Texaco, Shell, etc.)
  refinery-scale operations
• Small-scale biomass gasifiers emerging standard
  vs. combustion

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Nexterras Gasification Technology

• Fixed-bed updraft gasifier
• Coverts wood to syngas
• Syngas HHV 100 300 btu/ft3
• Advantages
• Simple, proven, reliable
• Clean, low emissions
• Versatile fuel flexible
• User friendly, fully automated
• Low capital operating cost

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Product Roadmap
2010
2003
2008
Thermal Steam/Hot Water
Steam Cogen Power
Direct-Fire Boilers Lime Kilns
Direct Fire IC Engines
Synthetic Fuels Chemicals
Wood - Mill Residue Wet and Dry Bark
Biosolids
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RD Test Plant
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• Projects

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• Tolko Industries Plywood Mill
• Displaces 40 of mills natural gas
• Destroys VOC emissions
• Lower fuel costs by 1.5 MM/yr
• Reduces GHGs by 13,000 tpy

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Dockside Green Neighbourhood Biomass Energy
Utility

• Dockside Green Development
• Heating Hot Water
• Urban Wood Waste
• Avoided GHGs 2,500 tpy

The Secret Sauce
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Power Generation

• Pristine Power BC Bioenergy Network
• Network of up to 15 biomass power plants
• Each plant is net 10 MWe to the grid
• Nexterra supplies gasification technology
• Fuel from sawmills roadside debris
• Up to 600 MM total capital

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Direct-Firing Boilers and Kilns

• Kraft Pulp Mill Lime Kilns
• Gas displacement in a lime kiln
• Annual Savings 5 10 MM/yr
• CO2e Reduction 25 50,000 tpy

• Pulp and Paper Mill Boilers
• Gas displacement in boilers
• Annual Savings C 2 4 MM/yr
• CO2e Reduction 22,000 tpy

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Next Generation of Biomass PowerGasification
IC Engine
700 800F Syngas
10 60 MC Bark
10 20 MC Bark
Bark Dryer
Gas Cleanup
Recip Engine
Gasifier
Fuel Bin

• Advantages vs. Conventional Steam Plant
• Higher Efficiency (40 vs. 20)
• Economic at lt10 MW Scale
• Lower Operating Cost (no steam)
• Lower PM Emissions (NG equivalent)

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BC Potential

• Replication will help BC meet its energy and
  environment goals
• Green power and energy self-sufficiency
• GHG reduction potential 300,000 tpy CO2e within
  5 years
• RD investment will advance BC bioenergy
  leadership
• Nexterra and partners to invest 30 50 MM RD
  demos
• Global RD network supported by NRCan, NRC, SDTC
  and Ethanol BC
• Growth will fuel job creation and economic
  development
• Job creation high paying engineering and
  technical jobs
• Local manufacturing potential 40 50 MM/year in
  5 years

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Thank YouFor more information see our website
at www.nexterra.ca