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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– 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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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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CONSIDER FOSSIL HEATING FUELS & BIOMASS Natural Gas

Fuel Oil

Propane

Electricity

Biomass---

-----Chips, Pellets f/Automated Feeding

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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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NATURAL GAS PRICE PREDICTION

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MIDWEST RESIDENTIAL HEATING OIL PRICES: PAST AND CURRENT HEATING SEASONS SOURCE: E.I.A.

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DISTILLATE STOCKS (DIESEL AND FUEL OIL): (MILLIONS OF BARRELS)

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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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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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PROPANE EXPORTS

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MIDWEST PROPANE SUPPLY

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PROPANE PRICES SINCE 1990

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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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2013-14 PROPANE HEATING SEASON WAS WILD!

http:/ /www.eia.gov/petroleum/heatingoilpropane/

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MIDWEST PROPANE PRICES: BACK TO NORMAL

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PROPANE’S SEASONAL STORAGE & DEMAND

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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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DOMESTIC DEMAND FOR PROPANE

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PROPANE INVENTORIES

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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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$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

Jan

07, 2

008

May

07,

200

8

Sep

07, 2

008

Jan

07, 2

009

May

07,

200

9

Sep

07, 2

009

Jan

07, 2

010

May

07,

201

0

Sep

07, 2

010

Jan

07, 2

011

May

07,

201

1

Sep

07, 2

011

Jan

07, 2

012

May

07,

201

2

Sep

07, 2

012

Jan

07, 2

013

May

07,

201

3

Sep

07, 2

013

Jan

07, 2

014

May

07,

201

4

Sep

07, 2

014

Do

llars

per

Mill

ion

BTU

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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$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

Jan

07, 2

008

May

07,

200

8

Sep

07, 2

008

Jan

07, 2

009

May

07,

200

9

Sep

07, 2

009

Jan

07, 2

010

May

07,

201

0

Sep

07, 2

010

Jan

07, 2

011

May

07,

201

1

Sep

07, 2

011

Jan

07, 2

012

May

07,

201

2

Sep

07, 2

012

Jan

07, 2

013

May

07,

201

3

Sep

07, 2

013

Jan

07, 2

014

May

07,

201

4

Sep

07, 2

014

Do

llars

per

Mill

ion

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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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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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.

[email protected]

612-625-6715

App & Background Material:

http://woodenergy.umn.edu/

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THANK YOU!

Image by : WWW.VIKINGPELLET.COM

mailto:[email protected]




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