September 15, 2008
Contrarian View of Biomass in Michigan
Analysis of:
Biomass energy could become thriving Michigan industry | www.mlive.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: Biomass is now very expensive, has a low energy density, and biomass for energy would compete for food.
Analysis: 1 . Biomass costs in the WI and MI area have jumped recently to $100 per ton (>$8/Mbtu) which is nearly as expensive as NG.
2. Pettetizing biomass would add at least $10/ton
3. Transporting biomass is expensive because the biomass has half the energy density of coal, and would be shipped by truck and thus is very sensitive to the price of diesel fuel.
4. Converting biomass to heat is not as efficient process as converting natural gas to heat.
5. Not sure customers want to hassle with handling biomass pellets unless there is significant economic benefit.
6. Natural gas heating will have lower environmental impacts on air quality than biomass and have no ash disposal issues.
Analysis: 1 . Biomass costs in the WI and MI area have jumped recently to $100 per ton (>$8/Mbtu) which is nearly as expensive as NG.
2. Pettetizing biomass would add at least $10/ton
3. Transporting biomass is expensive because the biomass has half the energy density of coal, and would be shipped by truck and thus is very sensitive to the price of diesel fuel.
4. Converting biomass to heat is not as efficient process as converting natural gas to heat.
5. Not sure customers want to hassle with handling biomass pellets unless there is significant economic benefit.
6. Natural gas heating will have lower environmental impacts on air quality than biomass and have no ash disposal issues.
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