1. Wisconsin Biomass as a Sustainable Energy Resource Green Innovations Symposium 2009 Joe Kramer

2. Increasing Sustainability Focus n Renewable Portfolio Standard n 10% renewables by 2015 n Wisconsin’s 25x25 goal n Externalities internalization n Sulfur dioxide trading n Carbon markets / Carbon tax policies n Difficulties siting new coal

3. Benefits to Utilities of Biomass Use n Renewable, carbon neutral fuel n Can directly substitute for coal n Can be handled similarly n Can be dispatched – base load power Benefits to Wisconsin n Large supply n Benefits state economy – dollars not exported n Environmental benefits of production n Supports supply industries and landholders

4. Xcel Energy Bay Front Plant n Has been substituting wood for coal for decades n Proposed gasification system to allow 100% biomass- fired generation n Add up to $20 M per year to regional economy n Benefit bottom lines of businesses and utility

5. Wood Production Timeline

6. Challenges to Biomass Use n Utilities tend to use the lowest value wood (e.g., slash and tops) n Current practice is to leave on site n Utility scale use is large n Less energy density than coal = cannot haul it very far economically

7. Challenges (continued) n Market not established and will be local/regional – location is very important n May compete with large established users and future biofuel facilities n Issues with harvest and sustainability practices n Some forests unmanaged and ownership fragmented (many small landholders) n Use of non-native species plantations limited, little-tested in Wisconsin

8. Energy Center Roles n Address supply issues n Feedstock supply studies n Market studies – availability n Explore business models for supply/ aggregation n Provide market enabling services n Resource information n Demand information

9. Market Assistance n Biomass Mapping Tool n Opportunity fuels n Facilities n Infrastructure n Urban “wastesheds”

10. Agricultural Energy Research Station n Repurpose portion of former UW Ashland Ag research station for energy crops n Reserve acreage for production trials n Advance agreement with sustainability research partners (UWSP, UW Madison) n Meet need for regional testing of energy crops while fast-tracking sustainability knowledge of planting schemes

11. Agricultural Energy Research Station (continued) n Benefits n Regional biofuel companies n Utility biomass users n Paper companies n Former dairy operations with idle lands n Grow regional economic base

12. Need for Sustainability Research n Biomass resources are limited n Supply strategies must be sustainable in the long term n Wisconsin (and Illinois) values forest resources for recreation and aesthetics n Ecosystem services must be recognized (soil, water, habitat) n Increased market for biomass should be used to: n Bring more stands into sustainable management, n Expand working forests focused on production, and n Restore native stands

13. Thank you. Joe Kramer Energy Center of Wisconsin 608-238-8276x119 jkramer@ecw.org