Wood Pellet Co-Firing for Electric Generation Source of Income for Forest Based Low Income Communities in Alabama

Published Date

DOI: 10.4236/ojee.2013.23016

Author(s)   

Ellene Kebede, Gbenga Ojumu, Edinam Adozsii

Affiliation(s)

Department of Agriculture and Environment Science, Tuskegee University, Tuskegee, USA.

Department of Agriculture, Nutrition & Human Ecology, Prairie View A&M University, Prairie View, USA.

Department of Agriculture and Environment Science, Tuskegee University, Tuskegee, USA.

ABSTRACT

Alabama imports coal from other states to generate electricity. This paper assessed the direct and indirect economic impacts of wood pellet production to be co-fired with coal for power generation in Alabama. Four sizes of wood pellet plants and regional input-output models were used for the analysis. The results showed that the economic impact increases with the size of the plant. Wood pellet production will have a multiplier effect on the economy especially, forest-related services, retail stores, the health service industry, and tax revenue for the government. Domestic wood pellet production can reduce the use of imported coal, allow the use of local woody biomass, and create economic activities in Alabama’s rural communities. Policies that support the production of wood pellet will serve to encourage the use of wood for power generation and support the rural economies.

Cite this paper

Kebede, E. , Ojumu, G. and Adozsii, E. (2013) Wood Pellet Co-Firing for Electric Generation Source of Income for Forest Based Low Income Communities in Alabama. Open Journal of Energy Efficiency, 2, 125-132. doi: 10.4236/ojee.2013.23016.

References

[1]	B. Antizar-Ladislao and J. L. Turrion-Gomez, “Second-Generation Biofuels and LocalBioenergy Systems,” Biofuels Bioproducts and Biorefining, Vol. 2, No. 5, 2008, pp. 455-469. doi:10.1002/bbb.97
[2]	USDA, “A Regional Roadmap to Meeting the Biofuels Goals of the Renewable Fuel Standard by 2022,” USDA Biofuels Strategic Production Report, 2012. http://www.usda.gov/documents/USDA_Biofuels_Report_6232010
[3]	K. S. Cory and B. G. Swezey, “Renewable Portfolio Standards in the States: Balancing Goals and Implementation Strategies,” National Renewable Energy Laboratory, Technical ReportNREL/TP-670-41409, 2007.
[4]	European Commission, “Energy 2020, a Strategy for Competitive, Sustainable and Secure Energy,” Publications Office of the European Union, European Union Luxembourg, 2011.
[5]	Renewable Energy World, “World’s Largest Wood Pellet Plant to Feed REW Europe Power Plants,” 2012. http://www.renewableenergyworld.com
[6]	Westervelt Company, “Aliceville Selected for Fuel Pellet Production Facility,” 2012. http://westervelt.com/westervelt-newsroom/pressreleases
[7]	R. C. Brown, “Biorenewable Resources: Engineering New Products from Agriculture,” Blackwell Publishing, Iowa State Press, Ames, 2003.
[8]	A. P. C. Faaij and J. Domac, “Emerging International Bio-Energy Markets and Opportunities for Socio-Economic Development,” Energy for Sustainable Development, Vol. 1, No. X, 2006, pp. 7-19. doi:10.1016/S0973-0826(08)60503-7
[9]	B. Jackson, R. Schroeder and S. Ashton, “Pre-Processing and Drying Woody Biomass. Sustainable Forestry for Bioenergy and Bio-Based Products,” Fact Sheet 2007, pp. 141-144.
[10]	R. Jannasch, R. Samson, A. de Maio, T. Adams and C. H. Lem, “Changing the Energy Climate: Clean and Green Heat from Grass Biofuel Pellets,” Energy Probe, 2001. www.energyprobe.org
[11]	H. Spelter and D. Toth, “North America’s Wood Pellet Sector, “United States Department of Agriculture, Forest Service,” Forest Products Laboratory Research Paper FPL-RP-656, 2009, pp. 5-23.
[12]	W. B. Smith, P. D. Miles, C. H. Perry and S. A. Pugh, “Forest Resource of the United States, 2007,” General Technical Report-WO-78, United States Department of Agriculture Forest Service, 2012.
[13]	R. D. Perlack, L. L. Wright, A. F. Turhollow, R. L. Graham, B. J. Stokes and D. C. Erbach, “Biomass as Feedstock For a Bioenergy and BioproductsIndustry: The Technical Feasibility of a Billion-Ton Annual Supply,” US Department of Agriculture, DOE/GO-102005-2135, ORNL/TM, 2012.
[14]	E. M. White, “Woody Biomass for Bioenergy and Biofuels in the United States,” United States Department of Agriculture, Forest Service, Technical Report PNWGTR-825, 2012.
[15]	B. L. Polagye, K. T. Hodgsonb and P. C. Maltea, “An Economic Analysis of Bio-Energy Options Using Thinning from Overstocked Forests,” Biomass and Energy Biomass, Vol. 31, No. 2-3, 2007, pp. 105-125. doi:10.1016/j.biombioe.2006.02.005
[16]	G. Comatas and J. Shumaker, Cross Reference Wear et al. 2007, 2009.
[17]	S. Nienow, K. McNamara, A.Gillespie and A. Preckel, “A Model for the Economic Evaluation of Plantation Biomass Production for Co-Firing with Coal in Electricity Production,” Agricultural and Resource Economics Review, Vol. 1, No. 28, 1999, pp. 106-118.
[18]	Energy Information Administration, “Alabama, Overview and Analysis 2009,” 2012. http://www.eia.gov/state/state-energy-profiles.cfmsid=AL
[19]	Southern Company, “Southern Company and Renewable Energy, Overview 2007,” 2012. http://southerncompany.com/planetpower/pdfs/renewable_energy.pdf
[20]	Alabama Power, “Power Generating Plants,” 2012. http://www.alabamapower.com/about/plants.asp
[21]	D. Boylan, K. Roberts, B. Zemo and T. Johnson, “Phase 2 Co-Firing Testing of Wood Chips at Alabama Power’s Plant Gadsden 2008,” 2012. www.cawaco.org/biomass/Phase2report.pdf
[22]	University of Alabama, “Total Woodland Areas by County 2007,” 2012. http://alabamamaps.ua.edu/
[23]	B. W. Smith, P. D. M. Patrick, J. S. Vissage and S. A. Pugh, “Forest Resources of the United States, 2002,” A Technical Document Supporting the USDA Forest Service an Update of the RPA Assessment, North Central Research Station, Forest Service—US Department of Agriculture, 2004.
[24]	C. Bailey, J. F. Conner, J. F. Dyer and L. Teeter, “Assessing the Rural Development Potential of Lignocellulosic Biofuels in Alabama,” Biomass and Bioenergy, Vol. 35, No. 4, 2011, pp. 1407-1417. doi:10.1016/j.biombioe.2010.11.033
[25]	J. Gan and C. T. Smith, “A Comparative Analysis of Woody Biomass and Coal for Electricity Generation under Various CO2 Emission Reductions and Taxes,” Biomass and Bioenergy, Vol. 30, No. 4, 2006, pp. 296-303.
[26]	D. N. Wear, D. R. Carter and J. Prestemon, “The US South’s Timber Sector in 2005. A Prospective Analysis of Recent Change,” USDA Forest Service Southern Research Station, Asheville, 2007.
[27]	K. E. Skog and R. J. Barbour, “Estimating Woody Biomass Supply from Thinning Treatments to Reduce Fire Hazard in the US West,” Proceedings RMRS-P-41, USDA Forest Service, 2006, pp. 657-672.
[28]	D. G. Neary and E. J. Z. Elaine, “Forest Bioenergy System to Reduce the Hazard of Wildfires: White Mountains, Arizona,” Biomass and Bioenergy, Vol. 31, No. 9, 2007, pp. 638-645. doi:10.1016/j.biombioe.2007.06.028
[29]	A. Millbrandt, “A Geographic Perspective on the Current Biomass Resource Availability in the United States,” National Renewable Energy Laboratory, Technical Report NREL/TP-560-39181, 2005, pp. 18-27.
[30]	M. Gronowska, S. Joshi. and H. L. MacLean, “A Review of US and Canadian Biomass Supply Studies,” Bio-Resources, Vol. 4, No.1, 2009, pp. 341-369.
[31]	J. Bliss and C. Bailey, “Pulp, Paper, and Poverty: Forest-Based Rural Developmentin Alabama, 1950-2000,” In: R. Lee and D. Field, Eds., Communities and Forests: Where People Meet the Land, Oregon State University Press, Corvallis, 2005, pp. 138-158.
[32]	J. Domac, J. Richard and S. Risovic, “Socio-Economic Drivers in Implementing Bioenergy Projects,” Biomass and Bioenergy, Vol. 28, No. 2, 2005, pp. 97-106. doi:10.1016/j.biombioe.2004.08.002
[33]	D. G. De La Torre Ugarte, B. C. English and K. Jensen, “Sixty Billion Gallons by 2030: Economic and Agricultural Imparts of Ethanol and Biodiesel Expansion,” American Journal of Agricultural Economics, Vol. 89, No. 5, 2007, pp. 1290-1295. doi:10.1111/j.1467-8276.2007.01099.x
[34]	A. W. Hodges, J. S. Thomas and M. Rahmani, “Economic Impacts of Expanded Woody Biomass Utilization on the Bioenergy and Forest Products Industries in Florida,” Institute of Food and Agricultural Sciences Food, Gainesville, 2012. www.fred.ifas.ufl.edu/economic-impact-analysis/pdf/Woody-Biomass-Utilization.pdf
[35]	J. B. Gan and T. C. Smith, “Co-Benefits of Utilizing Logging Residues for Bioenergy Production: The Case for East Texas, USA,” Biomass and Bioenergy, Vol. 31, No. 9, 2007, pp. 623-630. doi:10.1016/j.biombioe.2007.06.027
[36]	R. E. Miller and P. D. Blair, “Input-Output Analysis Foundation and Extension,” Prentice Hall, Inc., Upper Saddle River, 1985.
[37]	J. D. G. Hewing, “Regional Input-Output Analysis,” SAGE Publications, Beverly Hills, 1985.
[38]	Bureau of Economic Analysis, “Personal Income and Earning by Industry,” 2012. http://www.bea.gov/regional/index.htm
[39]	University of Alabama, “Income Poverty and Employment,” 2012. http://cber.cba.ua.edu/
[40]	Alabama Department of Industrial Relations, “Unemployment Statistics,” 2012. http://www2.dir.state.al.us/LAUS/default.aspx
[41]	Minnesota IMPLAN Group Inc., “Alabama Economic Data,” Hudson, 2009.
[42]	University of Alabama, “Assessment of Wood-Based Syngas Potential for Use in Combined Cycle Power Plants in Alabama,” Draft Prepared by University Center for Economic Development, University of Alabama, Tuscaloosa, 2012.
[43]	M. D. Gibson, “Moisture Content and Specific Gravity of the Four Major Southern Pines under the Same Age and Site Conditions,” Wood and Fiber Science, Vol. 18, No. 3, 1986, pp. 428-435.
[44]	T. Mart-South, “A Quarterly Report of the Market Conditions for Timber Products of the US South,” 2012. http://www.timbermart-south.com/pdf/2Q2011news.pdf
[45]	A. Wolf, A. Vidlund and E. Andersson, “Energy-Efficient Pellet Production in the ForestIndustry—A Study of Obstacles and Success Factors,” Biomass and Bioenergy, Vol. 30, No. 1, 2006, pp. 38-45. doi:10.1016/j.biombioe.2005.09.003
[46]	S. Mani, S. Bi, X. Sokhansanj and A. Turhollow, “Economics of Producing Fuel Pellets from Biomass,” Applied Engineering in Agriculture, Vol. 22, No. 3, 2006, pp. 421-426.
[47]	P. Porter, J. Barry, R. Samson and M. Doudlah, “Growing Wisconsin Energy: A Native Grass Pellet Bio-Heat Roadmap for Wisconsin,” Agrecol, 2012. http://datcp.wi.gov/uploads/Business/pdf/22061Agrecol.pdf

For further details log on website :
http://www.scirp.org/journal/PaperInformation.aspx?PaperID=35448