Using Biomass to Control Heating Costs at Schools · 16/01/2015 · Effective Heating Costs of...
Transcript of Using Biomass to Control Heating Costs at Schools · 16/01/2015 · Effective Heating Costs of...
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© 2012 Regents of the University of Minnesota. All rights reserved.
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MSBA LEADERSHIP CONFERENCE January 16, 2015
Douglas G. Tiffany
Assistant Extension Professor
Using Biomass to Control Heating Costs at Schools
Photo Credit: Dave Atkins
USFS Fuels for Schools (Darby MT)
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© 2012 Regents of the University of Minnesota. All rights reserved.
– Douglas G. Tiffany
U of M Extension
Renewable Energy Economics
– Shelly Sauter
Chief Building Engineer
St. Louis County Schools
– Dr. Dennis Becker,
– U of M Associate Professor
Forest Resources
Heating Fuels Markets
Experience with Wood
Heating at Cherry School
Co-Developer of Biomass
Heating App at:
http://woodenergy.umn.edu/
A TAG TEAM PRESENTATION
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© 2012 Regents of the University of Minnesota. All rights reserved.
OUR GOALS Discuss Recent Price History of Heating Fuels
Inform School Boards & Staff of Opportunities to Utilize
Biomass for Heating, Especially
-Districts in Counties Lacking Natural Gas
-Districts in Counties with Plentiful Wood Supplies
Help Local Districts Find a “Good Fit”
Share Experience of a Minnesota District
Demonstrate a Decision Tool to Evaluate Opportunities
with Good Project Economics
Answer Your Questions, Establish Dialogue
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© 2012 Regents of the University of Minnesota. All rights reserved.
CONSIDER FOSSIL HEATING FUELS & BIOMASS Natural Gas
Fuel Oil
Propane
Electricity
Biomass---
-----Chips, Pellets f/Automated Feeding
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© 2012 Regents of the University of Minnesota. All rights reserved.
TRENDS IN U.S. HOME HEATING FUELS
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NATURAL GAS PRICING-MN
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NATURAL GAS-SPOT PRICE
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© 2012 Regents of the University of Minnesota. All rights reserved.
NATURAL GAS PRICE PREDICTION
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© 2012 Regents of the University of Minnesota. All rights reserved.
MIDWEST RESIDENTIAL HEATING OIL PRICES: PAST AND CURRENT HEATING SEASONS SOURCE: E.I.A.
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© 2012 Regents of the University of Minnesota. All rights reserved.
DISTILLATE STOCKS (DIESEL AND FUEL OIL): (MILLIONS OF BARRELS)
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© 2012 Regents of the University of Minnesota. All rights reserved.
PROPANE: BY-PRODUCT OF PETROLEUM REFINING AND NATURAL GAS CLEAN-UP
55% from Natural Gas
(U.S.)
45% from U .S. Petroleum
Refining
12% of U.S. Supply is
Imported
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© 2012 Regents of the University of Minnesota. All rights reserved.
PROPANE PRODUCTION
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Uses of Propane in U.S.
Petrochemical
Industry
38% Seasonal and
Regional
Residential and
Commercial
45% Seasonal and
Regional
Farm Use 7% Seasonal and
Regional
Industrial Use 7% Regional
Transportation 3%
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© 2012 Regents of the University of Minnesota. All rights reserved.
PROPANE EXPORTS
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© 2012 Regents of the University of Minnesota. All rights reserved.
MIDWEST PROPANE SUPPLY
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© 2012 Regents of the University of Minnesota. All rights reserved.
PROPANE PRICES SINCE 1990
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© 2012 Regents of the University of Minnesota. All rights reserved.
PROPANE SUPPLY-DEMAND 2013-2014
Stocks of Propane were down 12% for the
U.S. from October of 2012.
Stocks of Midwest Propane were down
17% from October of 2012.
Price for Residential propane was up 9%
from last year in October
Then Wet Fall, Increase Crop Drying
Colder Weather, Longer Winter
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© 2012 Regents of the University of Minnesota. All rights reserved.
2013-14 PROPANE HEATING SEASON WAS WILD!
http:/ /www.eia.gov/petroleum/heatingoilpropane/
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© 2012 Regents of the University of Minnesota. All rights reserved.
MIDWEST PROPANE PRICES: BACK TO NORMAL
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© 2012 Regents of the University of Minnesota. All rights reserved.
PROPANE’S SEASONAL STORAGE & DEMAND
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© 2012 Regents of the University of Minnesota. All rights reserved.
STORAGE FOR PROPANE OCCURS AT Primary Storage Mont Belvieu, TX and
Conway, KS 13.7 million barrels ,
nationally
Secondary Storage (At Retailers)
9.15 million barrels, nationally
Tertiary Storage---- Consumers
111.3 million barrels, nationally
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© 2012 Regents of the University of Minnesota. All rights reserved.
DOMESTIC DEMAND FOR PROPANE
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© 2012 Regents of the University of Minnesota. All rights reserved.
PROPANE INVENTORIES
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© 2012 Regents of the University of Minnesota. All rights reserved.
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© 2012 Regents of the University of Minnesota. All rights reserved.
DETERMINATION OF COSTS OF COMPETING HEATING FUELS
Collected Residential Prices for MN
Adjusted Prices per Million BTUs
Adjusted Costs of MM BTU based on
typical conversion efficiency
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© 2012 Regents of the University of Minnesota. All rights reserved.
$-
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Effective Heating Costs of Propane, #2 Fuel Oil, Natural Gas and Electricity, Assuming Conversion Efficiencies in Dollars per Million BTU of Heat from Jan. 2008 - Oct 2014
Source: EIA residential price series for Minnesota
Propane ($/MMBTU)
No.2 Heating Oil ($/MMBTU)
Natural Gas ($/MMBTU)
Electricity ($/MMBTU)
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© 2012 Regents of the University of Minnesota. All rights reserved.
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
Jan
07, 2
008
May
07,
200
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Sep
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Jan
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009
May
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Do
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Mill
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BTU
Effective Heating Costs of Propane, No. 2 Heating Oil, Natural Gas, Electricity, Wood Chips and Wood Pellets, Assuming Conversion Efficiency and Prices from 2008 to Oct 2014
Sources: EIA, Minnesota Price Series and Sanford and Liebl, Wood Heating Appliean
Propane ($/MMBTU)
No.2 Heating Oil ($/MMBTU)
Natural Gas ($/MMBTU)
Electricity ($/MMBTU)
Wood Chips ($/MMBTU)
Wood Pellets ($/MMBTU)
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© 2012 Regents of the University of Minnesota. All rights reserved.
Conclusions Cheap Natural Gas, Fuel Oil, and Propane Will Not Last
Expect More Volatility in Fossil Fuels Supplies & Prices
Excellent Biomass Boilers Are Available
Local Biomass Supplies Offer Sustainable and Stable
Operating Costs With Local Revenues and Employment
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© 2012 Regents of the University of Minnesota. All rights reserved.
The University of Minnesota is an equal opportunity educator and employer. In accordance with the Americans with Disabilities
Act, this PowerPoint is available in alternative formats upon request. Direct requests to the Extension Store at 800-876-8636.
612-625-6715
App & Background Material:
http://woodenergy.umn.edu/
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THANK YOU!
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