West Biofuels Making the Leap to Commercial Plants

West Biofuels Making the Leap to Commercial Plants

After more than 15 years of R&D, West Biofuels (WBF) in Woodland is building its first two commercial scale plants to convert agricultural and forestry residues into electricity.  It has plans to develop many more as these first two prove their commercial viability and as they widen the number of valuable products they could produce.  We recently sat down with COO Dr. Matt Summers to get the details on what has been happening.  

WBF has been getting increased attention because of its focus on conversion of forestry thinnings to valuable energy products. California wildfires of the last half-decade have made the need to manage forest by thinning the underbrush and deal with the damaged timber much more urgent.  WBF began with some research and development to build a “process development unit” that would allow them to study various configurations and approaches to deal with a variety of urban, orchard, ag and forest biomass available in California.  The original idea was to convert these underutilized resources efficiently into a bio-syngas containing a mixture of hydrogen, carbon monoxide, carbon dioxide, and methane that could fuel a reciprocating engine-generator to make electricity.  While that looked simple and achievable on paper, West Biofuels had to adjust their approach due to costs and the marketplace.  The prices utilities were willing to pay for power from renewable sources were falling and, as many have encountered, feeding an engine with bio-syngas was hard on the engine requiring high maintenance costs.  

Then, two things changed that put WBF on the road to a commercial unit.  First, they switched to using a different technology for power production.  They now use an indirect-fired power generator—an organic Rankine cycle (ORC) system.  In an ORC system, heat generated from the biomass is used to expand an organic working fluid through a turbine and is recondensed to continue the cycle.  It is a closed loop system without any waste streams.  It can be slightly less efficient than feeding bio-syngas to an internal combustion engine, but the savings in maintenance more than justify the switch.

Second, in a moment of foresight the California Legislature passed the Bioenergy Market Adjusting Tariff (BioMAT) law requiring utilities to pay a very favorable fixed price for electricity derived from biomass in small generators less than 3 MW in size up to an aggregate of 250 MW (Public Utilities Code § 399.20).  For the Investor-Owned Utility companies (IOUs), this Feed-In Tariff (FIT) allows a project to enter a fixed contract to become part of the IOU renewable energy portfolio. Electricity generated as part of the BioMAT program counts towards the utilities’ renewable and resource adequacy targets.  Small-scale bioenergy projects can be procured in three categories with allocations and prices set by the CPUC:

Table 1. BioMAT Allocation Summary in 2021 as reported in Annual RPS Report by CPUC

BioMAT Category

BioMAT MW Allocation MW Contracted MW Remaining Contract Price ($/MWh)

Biogas from waste

110 10 100 $127.72

Dairy and agricultural biomass

90 26.5 63.5

Dairy: $187.72

Other Ag: $183.72

Forest biomass 50 11 39 $199.72
Total 250 47.5 202.5

 

These fixed prices are higher than what power from solar and wind farms receive through their current incentives.  BioMAT is a is an opportunity to boost these favored forms of biomass-to-energy in California to help establish a more mature marketplace similar to solar and wind.

With these two changes, WBF has moved to market a 3 MW scale biomass-to-electricity within California with a plan to drive down costs over time, add more technology, and open up a wider market.  WBF has signed contracts with two entities to build these plants.  One is finishing construction in Williams and will use rice hulls as a feedstock.  Another is near Burney in Shasta County, with forestry residue feedstock), and is starting construction this spring.  The Burney plant also has the option of  producing as much as 6,000 tons/year of biochar, used for filtration, as a soil amendment or an asphalt additive  as an additional source of revenue.  Now WBF is seeking financing and investment to support another half-dozen similar plants while there is still headroom under the 250 MW cap on BioMAT projects. 

Knowing that the California BioMAT program will sunset in 2026, WBF is continuing to see what would widen its customer appeal.  The  research continues and the process development unit has gotten much bigger.  The technology push now is to feed the synthesis gas to a catalyst bed to create liquid chemicals and fuels.  These products generally have a higher value than electricity outside of the BioMAT market, improving the economics of the process.  WBF is looking at two catalyst paths.  The first pathway generates an output on mixed alcohols and methane.  WBF has found that it can make a product stream that has half the energy in the mixed alcohols and half in the methane product.The alcohols include butanol, n-propanol , and ethanol.  All three have good commercial markets, especially the n-propanol which is used as a solvent for inks as in ink-jet printers.  The methane product is sent to the utility pipelines as renewable natural gas to be used by industrial, residential and transportation customers in place of fossil natural gas..  

The second approach is to produce jet fuel and diesel through a Fischer-Tropsch-type catalyst system.  These types of catalysts convert syngas into straight chained hydrocarbons of various densities from light gasses to heavy waxes.  For WBF,  a portion of the feedstock energy  (20-30%) converts directly into jet fuel and diesel.  There is a substantial quantity of waxes as well, plus light gases that would go to generate power for the process.  The objective of the current WBF research  is to figure out how to increase the yield of the jet fuel/diesel fraction and to explore how the waxes could be used in a standard oil refinery to increase the renewable content of motor fuels or lube oils, possibly by using spare Fluidized-bed Catalytic Cracking (FCC) capacity.  Adding a renewable feedstock to the refinery would help lower the carbon footprint of the fuel it produces to meet California’s Low Carbon Fuel Standard targets.   The vision is for these advanced WBF plants making chemicals and renewable fuel products to be economical beyond  the expiration of the BioMAT program.

Matt has always wanted to get to the point where they were building dozens of plants and making a real impact.  With these first two plants, he is excited to see that dream starting to become real even though it took fifteen years.  Meanwhile, the research and development continues to make the next generation of biomass technologies.

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStart’s Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

CleanStart Sponsors

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Moss AdamsPowerSoft.biz, Greenberg Traurig, Momentum,

College of Engineering & Computer Science at Sacramento State

CleanStart Perspectives with Christoph Lienemann of PEM Motion

CleanStart Perspectives with Christoph Lienemann of PEM Motion

Join us as we chat with Christoph Lienemann of PEM Motion about future mobility battery projects.
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Christoph Lienemann is responsible for the North American operations of PEM Motion, a consulting and engineering company focused on future mobility solutions and their industrialization. He manages their teams in Canada, Mexico, and the USA. PEM Motion helped establish the California Mobility Center, a Sacramento-based public-private innovation hub and industry-sized tech shop enabling the future of mobility.

CleanStart Perspectives are short online conversations to connect the greater Sacramento clean tech entrepreneurship community and share insights, experiences, and outlooks. Join us as we welcome our featured guests to share their perspective on what entrepreneurs and innovators can do to thrive and grow.

Register and we’ll send you the Zoom login information prior to the meeting time.

CleanStart Perspectives are recorded through Zoom.

CleanStart Perspectives with Ken Hayes of the Cleantech Open

CleanStart Perspectives with Ken Hayes of the Cleantech Open

Join us as we chat with Ken Hayes about the 2022 Cleantech Open application process and the accelerator program.
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Cleantech Open is the world’s largest cleantech accelerator, providing entrepreneurs and corporate innovators the resources they need to launch and grow successful cleantech businesses. We’ll be joined by Ken Hayes, the Executive Director for National and Global activities for the Cleantech Open, who will discuss the 2022 application process and the accelerator program.

CleanStart Perspectives are short online conversations to connect the greater Sacramento clean tech entrepreneurship community and share insights, experiences, and outlooks. Join us as we welcome our featured guests to share their perspective on what entrepreneurs and innovators can do to thrive and grow.

Register and we’ll send you the Zoom login information prior to the meeting time.

CleanStart Perspectives are recorded through Zoom.

Yo Quiero Charging Ahora

Yo Quiero Charging Ahora

One of the biggest questions facing the EV transition is how to find convenient charging. The CEC has highlighted how much we need, the practical question is “Where?” Will we charge at home? What about multi-unit dwellings? How about at work? How about charging at Taco Bell? ChargeNet, a California startup, just raised $6.2 million to put solar-powered charging stations at Taco Bells. The first one in San Francisco.

This is an exciting development of shared charging as a convenience service, being able to charge while you are getting other things done. Early on, I have advocated that existing businesses should see charging as an opportunity. I switched my shopping from Safeway to Raley’s based on the availability of EVgo’s fast charging. Charging at retail businesses mitigates the problem of “hogging” the charger at work or at an apartment building.  People naturally come and go while shopping. Most don’t linger long.

Common attacks on the availability of charging focus on its incompatibility with consumer habits and the adding the time needed to get a charge. We have written about the new technologies to cut the time needed to get a charge. These are expensive. But if you in effect spend no incremental time if you get a charge while you are doing other shopping, that avoids the issue. If businesses like Taco Bell and Raley’s see this as an opportunity to attract customers, then we will be able to charge at so many places availability is not an issue. It costs businesses something to do this, but maybe it’s more like a marketing expense.  

In an interview with Will Barrett of ClipperCreek, he clearly summarized the value of on-site charging. “It is the cost of buying a cup of coffee… would you buy a cup of coffee to get a customer?” I assume the answer is yes, and in this case, would you buy them a Cheesy Gordita Crunch?

Thomas Hall

ABOUT THE AUTHOR

Thomas is the Executive Director of CleanStart. Thomas has a strong background in supporting small businesses, leadership, financial management and is proficient in working with nonprofits. He has a BS in Finance and a BA in Economics from California State University, Chico. Thomas has a passion for sustainability and a commitment to supporting non-profits in the region.

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Evolution of the Grid and Renewables Policy in California

Evolution of the Grid and Renewables Policy in California

Nick Pappas, founder of NP Energy and our Perspectives presenter on January 27, is something like a midwife.  He found that his best skill was in helping clients ease the transition to a renewable energy system by explaining the pains involved, how to deal with them, how to avoid some of them, and keeping the benefits of the end point in mind.  In doing so, he is very good at highlighting upcoming opportunities and at warning of where risks need to be avoided.  It is not a good idea to ignore his insights.

He is passionate about smoothing this transition and demonstrating how it can be successfully adopted elsewhere.  As he says, he wants to make good, workable climate policy “California’s #1 Export” and building the blueprint for others to follow so that there is maximum contribution to avoiding serious climate change.  California’s big deregulation move in the 1990s was not done well and led to the extreme price swings and rolling blackouts of the early 2000s.  California became the big negative example.  Nick wants to see there is not a repeat of that.

We covered a lot of ground in our 30 minutes with him.  Here are some of the highlights we got out of his talk (with apologies to Nick for embellishing some of this points).

  • Reliability of the grid is a complex challenge, and our understanding of grid reliability and planning is evolving over time. How do we successfully orchestrate the transition to clean energy?
  • There is a “storage revolution” coming.  For the first time in the coming summer and the next, there will be enough big storage projects on line (over 2000 MW of grid-level storage in 2022 and 5000 MW in 2023) to test how Cal ISO will be able to integrate storage into the dispatch and how the pricing of the energy from it will work out.  We will probably be surprised.
  • At the same time, there will be a lot of retirements of conventional generation in the next three years, especially of the 2.2 GW at the Diablo Canyon nuclear units.  Managing a retirement of that scale could pose a lot of operational issues, and we need to get ahead of that problem before it becomes a blot on the transition.  
  • Overbuilding solar and wind resources can make a serious dent in electric sector emissions, but overbuilding alone will not be sufficientto fully decarbonize the grid. We need creativity and innovation on our pathway to 2045.
  • There is much more opportunity in “flexing” loads to match demand to supply than is being exploited.  It may be much cheaper to do that than to attempt to solve renewable integration solely throughthe 15,000+ MW of storage now contemplated in the latest CPUC view of what investments in power sources are needed in the next 10 years. Demand flexibility will supplement that storage and provide more operational flexibility.   However, human behavior remains a major barrier to load flex capability that is being tried now.  In the future, consumers may not be able to override the flex signals from the utility as they do now.  In any case, it may deserve a more intensive effort to utilize than it is getting now. How will the “flex” be done in a way consumers won’t care and is better than calls for voluntary shut offs?  
  • The growth in the number of EV chargers and electric heat pumps (as a part of replacing gas appliances with electric alternatives) could provide the best option for creating a critical mass of flexible load, unless we miss that opportunity.  How do we make the addition of the flex feature easy and worthwhile?
  • The additions of more renewable sources and more storage can help drive down the cost of these resources through innovation and economies of scale. We should expect prices to continue to fall, especially, for storage, though supply chain, resources, and development have significant potential to increase costs and cause delays.
  • The storage being added will resolve the daily mismatch between demand and supply, but the seasonal gap—the need to move excess generation from Spring to Fall—is much harder to address.  Building big, high capital cost battery storage to be used at a very low capacity factor may not be an acceptable solution.  Innovative ways to use chemical storage, such as hydrogen, to decarbonize the existing combustion fleet may help address these rare peak events.
  • Decarbonizing electricity is important, but we should not forget the opportunity cost of much lower-hanging fruit in the transportation, building, and industrial sectors where there may be better bang for the buck, more CO2 reductions per dollar, than continuing to work only on the electricity sector.  It is a bit harder to see how incentives or limitations could be applied in these other sectors, but it is worthwhile to figure it out and to innovate approaches that work in a competitive economy.
  • The value of rooftop solar to the building owner is likely to decline.  Even if the CPUC’s proposed decision on net metering is further moderated this time, it will not be the end of this debate, but the trend will be for compensation to be more closely aligned with value. Ensuring these systems provide value – particularly how storage is dispatched on the grid – may mitigate this risk.

It was a lively session and you can watch the entire recording of it below.  Nick had so much to say we are going to invite him back to continue this discussion. 

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStart’s Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

CleanStart Sponsors

Weintraub | TobinBlueTech Valley, Revrnt, 

Moss AdamsPowerSoft.biz, Greenberg Traurig, Momentum,

College of Engineering & Computer Science at Sacramento State