Meeting the Renewable Electricity Standard
To meet current state Renewable Portfolio Standards (RPS) or the expected federal Renewable Electricity Standard (RES), many power producers are considering biomass, a carbon-neutral feedstock.
Biomass provides a near-term, low-cost means to cut emissions, using existing infrastructure and technology. Biomass can be co-fired with coal or natural gas in existing power plants, used by large industrial facilities for onsite heat and power in existing fossil fuel boilers (i.e., repowering) or burned in dedicated biomass-fired facilities.
To encourage the use of new sources, the government also provides monetary support to biomass users and producers under the Biomass Crop Assistance Program.
In the U.S., 29 states have mandated renewable portfolio standards, and 6 states have goals.† A federal law is on the horizon. Together, theses mandates will establish a price for carbon as well as premiums for renewable power.
Market Forecasts
Energy forecasters predict that biomass will generate 4.5% of the kilowatt-hours consumed in the U.S. — more than wind and solar combined.
Europe also presents a significant opportunity for the U.S. biomass market. In recent years, European utilities have started to import hundreds of thousands of tons of biomass for co-firing at existing facilities. As renewable energy standards grow more rigorous and dedicated biomass facilities start going online, both in the U.S. and abroad, biomass demand will continue to increase.
†Source:www.dsireusa.org