A GUIDE TO THE DEVELOPMENT OF A

BIOMASS PROJECT

CRIS SAGAR, BIOMASS MANAGER

All Energy, Aberdeen
23rd May 2013
INTRODUCTION
WHAT WE DO

Natural Power is a leading independent renewable consultancy and products provider, employing
over 250 renewable energy experts across Europe, North America and South America.

We offer proactive and integrated consultancy, construction management, project management

and due diligence services across these sectors:

Onshore Wind
Offshore Wind
Wave & Tidal
Bioenergy
Feasibility study, conceptual/detailed design, fuel resource assessment, technical
specifications, tendering, due diligence, owners engineer, etc.
In-depth technical and engineering knowledge of biomass boiler systems, power plants
and biogas
Experience in bioenergy projects ranging from 50kWth to 50MWe

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PROJECT DEVELOPMENT LIFECYCLE

1. Pre-feasibility assessment
Decision to proceed to feasibility study
1A. Fuel
Fuel resource secured
2. Detailed feasibility study
Decision to invest in equipment
3. Further development
Consents and preliminary accreditation for incentives granted
4. Pre-construction
Financial close
5. Construction
Commissioning and handover

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1. PRE-FEASIBILITY ASSESSMENT
1. What are your motivations?
2. Is there a place where a biomass plant could be built?
3. What is the local demand profile? For power and heat?
4. Where is the nearest grid connection and what is the capacity?
5. Can planning permission be obtained? What barriers are perceived?
6. Can capital finance be raised?
7. Can development funding be raised?
8. Who will own and operate the plant?
9. What is the timescale for implementation?

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1A. FUEL
1. How much is available and where from?
Quality fuel within recognised specifications
Non-premium fuel /waste/own fuel
Moisture content, particle size distribution, propensity for slagging and
corrosion
Match to operating parameters for the equipment to be used
Impact on plant performance and availability
Carry out laboratory analysis and/or combustion trials
2. Site inventory versus available space & alternative demands on that space, and costs
3. Practicalities of delivering fuel - limit transfer distances
4. Engage with potential fuel suppliers / detailed fuel resource assessment
5. Assess lifecycle emissions of fuel
6. Secure contracts or Heads of Terms

Decision to undertake detailed feasibility assessment

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ASSESS OWN CAPABILITY AND SEEK EXPERTISE
Assess internal capability and resource
Some level of expertise will be required
Planning and permitting
In-depth technical & engineering knowledge of biomass combustion systems
Fuel resourcing
Raising finance
Electricity generating industry
Legal contract development and negotiation, chiefly plant, power & heat offtake,
O&M, procurement and others.
Owners engineer
Etc.

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3. DETAILED FEASIBILITY STUDY
1. Analyse demand profiles, power/heat/CHP
2. Grid connection feasibility
3. Local heat users assessment
4. Site constraints development space, vehicle access, regulations
5. Plant concept and sizing
6. Outline design of generation system, fuel store sizing, fuel feed system, interfaces
7. Requirement for back up
8. Review incentives against expected delivery programme
9. Assess staffing requirements
10. Consult local planning dept. and environment regulator
11. Engage with potential heat customers
12. Financial appraisal based on full project lifetime
13. Indicative delivery programme

Decision to invest in plant capital

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6MW BIOMASS BOILER DEVELOPMENT,
FOOD MANUFACTURER, SCOTLAND

Technical advisor to food manufacturer for the development of a 6 MW woodchip steam

boiler
Supporting project from feasibility to construction.
Our services to date include:
Feasibility study
System design development
Development of technical specification for biomass, civil and M&E contracts
Management of tendering process including evaluation of tenders
Fuel resourcing advice
Contracting advice
Planning and permitting
CDM-Coordinator

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6MW BIOMASS BOILER DEVELOPMENT CONTD

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6MW BIOMASS BOILER DEVELOPMENT CONTD
Electrical load: 1.8MWe; heat load: 7MWth
Woodchip system

CAPEX, Payback, Net electrical Heat output, Electrical Thermal

Rank Plant concept H:P Ratio
K years output, MWe MWth efficiency efficiency

1 Heat only boiler 3,430 5 0 6.5 0% 83% -

2 Backpressure turbine 9,100 7 1.1 6.5 11% 63% 5.9:1

Condensing turbine
3 13,860 14 1.7 6.5 10% 39% 3.8:1
with pass out

Condensing turbine
4 9,860 N/A 1.7 1.6 14% 14% 0.9:1
with reduced pass out

Condensing turbine
5 8,540 N/A 1.7 0 16% 0% -
with no pass out

6 Organic rankine cycle 5,940 N/A 1.0 0 20% 0% -

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3. FURTHER DEVELOPMENT
1. Concept & detailed system design
2. Appoint CDM-C
3. Planning and environmental consents application
4. Environmental Impact Assessment
5. Grid connection application
6. Prepare plant and fuel specifications
7. Establish preferred contract types and prepare agreements
8. PQQ & invitation to tender packages to contracting parties
9. Funding application / equity partnering
10. Value-engineering
11. Revise financial model
12. Revise delivery programme

Plant successfully consented

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4. PRE-CONSTRUCTION
1. Discharge conditions of consents
2. Contract negotiation
3. Apply for preliminary accreditation for incentives
4. Appoint owners engineer
5. Funders due diligence
6. Detailed financial model

Financial close

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5. CONSTRUCTION
1. Review and sign off milestone payments and variations
2. Construction site monitoring
3. Dispute management
4. Project management
5. Snagging list
6. Witness performance testing
7. Commissioning
8. Snagging
9. Handover

Operation

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COMMON PITFALLS
Demand profiles inaccurate or atypical or not future-proofed
Insufficient heat demand
Planning & consents inadequate consideration of impacts, lack of public consultation
Grid connection application too late
Over-optimistic financial appraisal
Contracts and LDs negotiated too late leading to delays
Inadequate metering arrangements for RHI

And many more!

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CONCLUSION
Biomass is profitable, creates jobs and can be a means of greatly reducing CO2 emissions.
However, like most forms of renewable energy, it is complicated to implement.
Secure fuel supply as early as possible
Seek independent experts with experience of the whole project lifecycle
Monitor risks throughout and value-engineer
No hard and fast rules
Plan ahead to avoid unnecessary pain

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THANK YOU

Cris Sagar, Biomass Manager

Email criss@naturalpower.com
Tel. 07825795428
www.naturalpower.com

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