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Co-firing in Coal Power Plants and its Impact on Biomass Feedstock Availability

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Abstract

Several states have a renewable portfolio standard (RPS) and allow for biomass co-firing to meet the RPS requirements. In addition, a federal renewable fuel standard (RFS) mandates an increase in cellulosic ethanol production over the next decade. This paper quantifies the effects on local biomass supply and demand of different co-firing policies imposed on 398 existing coal-fired power plants. Our model indicates which counties are most likely to be able to sustain cellulosic ethanol plants in addition to co-firing electric utilities. The simulation incorporates the county-level biomass market of corn stover, wheat straw, switchgrass, and forest residues as well as endogenous crop prices. Our scenarios indicate that there is sufficient feedstock availability in Southern Minnesota, Iowa, and Central Illinois. Significant supply shortages are observed in Eastern Ohio, Western Pennsylvania, and the tri-state area of Illinois, Indiana, and Kentucky which are characterized by a high density of coal-fired power plants with high energy output.

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  • Dumortier, Jerome, 2015. "Co-firing in Coal Power Plants and its Impact on Biomass Feedstock Availability," IU SPEA AgEcon Papers 198706, Indiana University, IU School of Public and Environmental Affairs.
  • Handle: RePEc:ags:iuspea:198706
    DOI: 10.22004/ag.econ.198706
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    1. Burton C. English & Cameron Short & Earl O. Heady, 1981. "The Economic Feasibility of Crop Residues as Auxiliary Fuel in Coal-Fired Power Plants," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 636-644.
    2. Madhu Khanna & Xiaoguang Chen & Haixiao Huang & Hayri Onal, 2011. "Supply of Cellulosic Biofuel Feedstocks and Regional Production Pattern," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(2), pages 473-480.
    3. Mindy L. Mallory & Dermot J. Hayes & Bruce A. Babcock, 2011. "Crop-Based Biofuel Production with Acreage Competition and Uncertainty," Land Economics, University of Wisconsin Press, vol. 87(4), pages 610-627.
    4. Babcock, Bruce A. & Marette, Stéphan & Tréguer, David, 2011. "Opportunity for profitable investments in cellulosic biofuels," Energy Policy, Elsevier, vol. 39(2), pages 714-719, February.
    5. Basu, Prabir & Butler, James & Leon, Mathias A., 2011. "Biomass co-firing options on the emission reduction and electricity generation costs in coal-fired power plants," Renewable Energy, Elsevier, vol. 36(1), pages 282-288.
    6. Egbendewe-Mondzozo, Aklesso & Swinton, Scott M. & Izaurralde, R. Cesar & Manowitz, David H. & Zhang, Xuesong, 2011. "Biomass Supply from Alternative Cellulosic Crops and Crop Residues: A Spatial Bioeconomic Modeling Approach," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103435, Agricultural and Applied Economics Association.
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    1. Xian, Hui & Colson, Gregory & Mei, Bin & Wetzstein, Michael E., 2015. "Co-firing coal with wood pellets for U.S. electricity generation: A real options analysis," Energy Policy, Elsevier, vol. 81(C), pages 106-116.
    2. Suh, Dong Hee, 2016. "Interfuel substitution and biomass use in the U.S. industrial sector: A differential approach," Energy, Elsevier, vol. 102(C), pages 24-30.
    3. Jones, Clifton T., 2014. "The role of biomass in US industrial interfuel substitution," Energy Policy, Elsevier, vol. 69(C), pages 122-126.
    4. Sharp, Benjamin E. & Miller, Shelie A., 2014. "Estimating maximum land use change potential from a regional biofuel industry," Energy Policy, Elsevier, vol. 65(C), pages 261-269.
    5. Hossain, A. K. M. Nurul & Serletis, Apostolos, 2020. "Biofuel substitution in the U.S. transportation sector," The Journal of Economic Asymmetries, Elsevier, vol. 22(C).
    6. Anthony Oliver & Madhu Khanna, 2018. "The spatial distribution of welfare costs of Renewable Portfolio Standards in the United States electricity sector," Letters in Spatial and Resource Sciences, Springer, vol. 11(3), pages 269-287, October.
    7. Xu, Jiuping & Huang, Qian & Lv, Chengwei & Feng, Qing & Wang, Fengjuan, 2018. "Carbon emissions reductions oriented dynamic equilibrium strategy using biomass-coal co-firing," Energy Policy, Elsevier, vol. 123(C), pages 184-197.
    8. Jerome Dumortier & Amani Elobeid, 2020. "Assessment of Carbon Tax Policies: Implications on U.S. Agricultural Production and Farm Income," Center for Agricultural and Rural Development (CARD) Publications 20-wp606, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    9. Dumortier, Jerome, 2015. "Impact of agronomic uncertainty in biomass production and endogenous commodity prices on cellulosic biofuel feedstock composition," IU SPEA AgEcon Papers 198707, Indiana University, IU School of Public and Environmental Affairs.
    10. Dumortier, Jerome, 2014. "Impact of different bioenergy crop yield estimates on the cellulosic ethanol feedstock mix," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 171168, Agricultural and Applied Economics Association.

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    Keywords

    Environmental Economics and Policy; Land Economics/Use; Resource /Energy Economics and Policy;
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