BECK Projects
Cogeneration / Wood Pellets
In the forest products industry, Cogeneration typically means that a manufacturing facility (a sawmill for example) burns its waste material, such as bark and sawdust, to produced steam, which is then used to dry lumber and to generate electricity. Since wood wastes are viewed as carbon neutral and renewable, biomass-fired Cogeneration is a small but growing component in the process of supplying “renewable” electricity to meet society’s needs. One factor causing this growth includes the intense focus on “green or renewable” energy production. In fact, due to changes in public policy, “renewable” power projects are being offered a myriad of state and federal financial benefits and tax incentives which can help make the economics of cogeneration more profitable than ever.
Beck has completed several cogeneration studies, including a fuel supply and demand analysis, a feasibility assessment, and representing a client in negotiations with a utility regarding a power purchase agreement. Our past projects on this topic have been located throughout the U.S. and typically involve the analysis of the following factors:
Determine state and federal financial incentive programs
for a woody biomass electrical generation project
Fiber Supply – regional assessment of available
residuals from woods to industrial sources, as well as
the current and future cost of residuals in the market
Size and location of power plant
Estimate the capital cost of converting current
direct-fired dry kiln(s) to steam (installation and
equipment cost)
Assess the logistics necessary to maintain kiln
operation during the transition
Negotiate power purchase agreements with utilities,
as well as oversee the physical interfacing of the
power supply to the utility’s grid
Determine permitting, regulatory or environmental
issues with the site and ensure compliance
Wood pellets are manufactured from woody biomass fuel made from compressed wood waste – usually sawdust or shavings. The moisture content is around 6-8% and no resin is used as lignin is the binder. In today’s economy, where oil prices are at historic highs and global energy consumption is at a peak, consumers are looking for renewable energy to heat their homes, and wood pellets have begun to fill that need in earnest. Currently, demand for wood pellets is far surpassing supply.
Beck has performed several feasibility studies for the production of wood pellets from mill residuals to chipping roundwood. The analysis covers the following factors:
Raw material supply analysis
Pellet market assessment
Technical assessment of pellet plant, including
operating cost assumptions and other
production-related issues
Financial analysis and assessment of economic impact
of proposed plant