Re: California Considers Slashing Funds For Biomass

["Kevin Chisholm" <kchishol@fox.nstn.ca>]

Dear Brian

The $11 million Grant works out to about $15,700 per MW, or about $1.87 per
mw-hr per year, assuming 8500 operating hours. This is then $0.00187 per
kw-hr subsidy, which seems pretty small.

Can you show that the benefit to the State is GREATER than $0.00187 per
kw-hr? If so, they should support the subsidy.

Your posting refers to the large cost for fuel preparation..... is there any
way it can be reduced?

Kindest regards,

Kevin Chisholm


----- Original Message -----
From: "Pletka, Ryan J." <PletkaRJ@bv.com>
To: <bioenergy@crest.org>
Sent: Monday, January 07, 2002 3:35 PM
Subject: California Considers Slashing Funds For Biomass


> Biomass news item from Energy Info Source 1/7/02 -
>
> California Considers Slashing Funds For Biomass - Biomass plant operators
> say the
> San Joaquin Valley's already unhealthy air will suffer even more if the
> Legislature agrees
> to slash funding for a state program that helps them turn farm waste into
> electricity.
> Without $11.5 million in grants, operators of the state's more than three
> dozen biomass
> plants say they can't afford to burn as much of the millions of tons of
> prunings and
> vineyard and orchard remnants left behind by farmers every year. Farmers
> will instead
> be left to dispose of the wood cuttings themselves by burning it in open
> fields -- a much
> dirtier way to get rid of the waste, air quality officials say. Gov. Davis
> has proposed
> reducing the biomass grant program to $6 million as part of a long list of
> $2.2 billion in
> spending cuts. Lawmakers must ratify Davis' proposed cuts when they return
> next week
> to start the 2002 legislative session. The biomass industry hopes Davis
will
> take the
> grant program off the chopping block once it makes the case that air
quality
> in one of the
> nation's most polluted air basins is at stake. Biomass operators also
> contribute about
> 700 megawatts of electricity for the state's power grid by burning farm
and
> urban waste.
> Farm waste is one of the most expensive renewable fuels because of the
high
> cost of
> grinding up the wood and transporting it from dozens of fields to the
plant.
> Operators say
> they can't make enough from selling electricity alone to cover their
costs.
> Those
> concerns, as well as the air quality issues, helped bring about the
biomass
> grant
> program in 2000. The three-year, $30 million program revived several
> struggling and
> closed biomass plants and nearly all of the $10 million available in the
> first year was
> used. In September, Davis signed a bill to increase the grants from $10
> million to $11.5
> million for this fiscal year.  (Fresno Bee)
>
>
> Regards,
> Ryan
>
>
> Ryan Pletka
> Black & Veatch Energy Services Group
> 11401 Lamar /  Overland Park, KS 66211 USA
> 913-458-8222
>
>
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