[Federal Register Volume 65, Number 34 (Friday, February 18, 2000)]
[Notices]
[Pages 8350-8352]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-3934]


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DEPARTMENT OF ENERGY


Notice of Availability of a Financial Assistance Solicitation.

AGENCY: National Energy Technology Lab (NETL), Department of Energy 
(DOE).

ACTION: Notice of Availability of a Financial Assistance Solicitation.

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SUMMARY: Notice is hereby given of the intent to issue Financial 
Assistance Solicitation No. DE-PS26-00FT40775 entitled ``Biomass 
Cofiring Opportunities.'' The Department of Energy announces that it 
intends to conduct a competitive Program Solicitation and award 
financial assistance (cooperative agreements) to successful applicants. 
Financial assistance awards made to Universities and Colleges selected 
under Topic E will be grants. Awards will be made to a limited number 
of applicants based on evaluation of the responses. Availability of DOE 
funding will also be a factor in limiting the number of awards.

DATES: The solicitation will be available in Portable Document Format 
(PDF) on the DOE/NETL's Internet address at http://www.netl.doe.gov/business/solicit on or about February 23, 2000. The anticipated closing 
date is April 4, 2000.

FOR FURTHER INFORMATION CONTACT: Dona Sheehan, U.S. Department of 
Energy, National Energy Technology Lab, Acquisition and Assistance 
Division, P.O. Box 10940, MS 921-107, Pittsburgh, PA 15236-0940, 
Telephone: (412) 386-5918, FAX: (412) 386-6137, E-mail: 
[email protected].

SUPPLEMENTARY INFORMATION: The Office of Biopower and Hydropower 
Technologies of the Department of Energy (DOE) Office of Energy 
Efficiency and Renewable Energy (EERE) has authorized DOE's National 
Energy Technology Lab (NETL) to act on its behalf and solicit cost-
shared applications for research and

[[Page 8351]]

development that seek to develop technologies for cofiring biomass 
feedstocks with fossil fuels.
    Biomass co-firing is the practice of substituting 5%--20% biomass 
(by weight) for fossil fuels (i.e., coal or natural gas) in utility or 
industrial boilers. Cofiring biomass is one of the few viable, low-cost 
options for dramatically increasing the generation of biomass power in 
the United States. The DOE is pursuing the development of fossil fuel/
biomass co-firing energy systems for several reasons:
     Biomass cofiring is an attractive way to utilize existing 
(coal and natural gas) power plants to increase the efficiency of 
biomass use and reduce overall costs.
     The use of current fossil-fueled systems provides readily 
available access to the current electricity market.
     Biomass is an available domestic resource and can 
contribute to energy security.
     Biomass is considered CO2 neutral, cofiring 
serves to reduce greenhouse gas emissions.
     Biomass is renewable and its use promotes sustainability 
and local economic growth.
     Biomass cofiring offers the potential to reduce fossil 
SO2 and NOX emissions.
     Landfill burdens are reduced when waste biomass is 
utilized as the cofiring fuel.
    The DOE Biomass Cofiring Program, to date, has focused mainly on 
demonstrating cofiring plant-derived biomass in pulverized coal and 
cyclone boilers. Several successful test campaigns have generated data 
for some systems that could be useful in determining cofiring is 
feasible.
    Based on prior successful results, the DOE Biomass Cofiring Program 
seeks to expand the investigation of biomass cofiring with the aim of 
demonstrating the cost-effective and sustained usage of biomass.
    It is anticipated that multiple financial assistance awards, 
Cooperative Agreements, will result from this solicitation. Subject to 
availability of funds, DOE expects to provide funds totaling $18-22 
million. Project period duration and cost-sharing requirements are 
given below.
    The program seeks to sponsor both Budget Period I: Feasibility 
Studies and Small-Scale Research, with an anticipated duration of 12 
months, and Budget Period II: Limited Term Cofiring Demonstrations 
Phase, with an anticipated duration of 24-30 months, on the following 
topics:

A. Biomass Cofiring as an Emission Reduction Technique
B. Gasification-Based Cofiring Strategies
C. Closed-Loop Biomass Cofiring
D. Low Rank Coal Cofiring--Subbituminous & Lignite

    The program will only sponsor Budget Period I: Feasibility Studies 
and Small-Scale Research activities on the following topic:

E. University and Colleges Cofiring Applications

    Applicants may propose to conduct both Budget Period I and Budget 
Period II programs in sequence or may offer to forgo Budget Period I 
and proceed directly to Budget Period II based on completed 
assessments.
    All applicants will be required to submit cost sharing according to 
the level of the project. The cost-sharing for Budget Period I 
(Feasibility and Small-Scale Research) is 20%.
    These costs must be explicitly identified. Topic E is only a Budget 
Period I project and will require 20% cost-sharing.

Cost-Sharing:
    Budget Period I: Feasibility Studies and Small-Scale Research 20%
    Budget Period II: Limited Term Cofiring Demonstration Phase 50%
    For the purposes of this solicitation, proposals for Topics A-D 
should be of the municipal, large industrial or electric utility scale. 
A future solicitation may address smaller scale-cofiring systems. No 
preference is made for any type of boiler system as long as it 
satisfies the objectives of the solicitation.

Common Definitions for all Areas

    Biomass refers to plant materials and/or animal waste used as a 
source of fuel.
    Animal Waste refers to the manure produced and any associated 
bedding material mixed within the manure and excludes animal processing 
waste.
    Co-firing refers to the combustion of biomass and coal (or lignite) 
for power production.
    Multiple-firing refers to the combustion of biomass, coal, and one 
or more additional components that seek to compliment the combustion of 
the coal and biomass.
    Gasification-Based Cofiring Strategies refers to the ability to 
gasify the biomass and utilize the produced gas as a co-fired fuel in 
either a coal-fired or natural gas-fired boiler or other part of the 
system for fuel usage.
    Open-loop refers to operations that utilize biomass from operations 
that are not specifically set-up for biomass production for the energy 
application (i.e. sawdust from a saw-mill operation, manure from animal 
production, etc.).
    Closed-loop refers to operations that specifically plant, grow, 
harvest, use, and regrow, at the same production site, any biomass fuel 
or feedstock in a sustainable, permanent manner that is in whole or in 
part used for energy application.
    Low-Rank Coal refers to viability of cofiring biomass with lignite 
or subbituminous coal for application within the fossil-fuel industry.

    Note: Unsegregated Municipal Solid Waste (MSW), hazardous waste, 
and medical waste will not be considered as a cofiring fuel. 
Segregated MSW is an acceptable cofiring fuel for this solicitation 
and would include non-recyclable paper and non-treated wood waste. 
There is no interest in receiving applications for aerobic or 
anaerobic digesters, landfill gas, or animal gas production.

Topic Areas of Interest

A. Biomass Cofiring as Emission Reduction Technique

    This focus area attempts to capitalize on the benefits of biomass 
as an emission (i.e. SOX, NOX, and/or 
CO2) reduction fuel. Previous research projects have dealt 
with cofiring in pulverized coal and cyclone boilers in a range of 
around 5-20% by mass. Cofiring has the potential to help reduce 
emissions and increase the usage of biomass in numerous situations. 
Some of these may include for example utilizing biomass as a reburn 
fuel to control NOX (replace natural gas) thereby taking 
advantage of the volatility of the fuel, and other potentially novel 
cofiring arrangements such as the use designer fuels. This topic deals 
with emission reduction demonstrations. These demonstrations generally 
will utilize ``open-loop'' feedstock supplies and should be more than 
just demonstrating a cofiring of wood/wood-waste with coal.
    Designer fuel blends or opportunity fuel blends can be developed 
from mixtures of biomass with coal and additional components that 
complement each other as far as costs and emission reduction 
potentials. Designer fuels have the ability to make biomass cofiring 
cost effective while reducing emissions and/or address an environmental 
concern. Demonstrations of various designer fuels would increase the 
potential use of biomass. The designer fuel must contain at least coal 
and biomass as significant fractions in the mix. Demonstrations are 
sought that utilize designer fuel or opportunity fuel blends to 
increase the usage of biomass in the energy mix. Cofiring has been 
shown in many instances to reduce NOX emissions in cofiring 
in a pulverized coal, tangentially-fired, or cyclone boiler. Separated 
Overfire Air (SOFA) has also been shown to work as a NOX

[[Page 8352]]

management strategy. However, by themselves, neither strategy may 
provide the complete technique required to meet projected EPA 
regulations. Possible combinations of SOFA and cofiring of biomass at 
greater than 10% by mass has the potential to achieve the desired 0.15 
LB NOX/MMBtu emissions in T-fired boilers. Testing this 
hypothesis in a demonstration may prove the indications valid. If so, 
the demonstration would open up a very large market for biofuels in the 
cofiring arena. Further, it would provide a mechanism for coal-fired 
boilers to achieve the required NOX emissions without 
expensive capital investments in post-combustion controls. As such, it 
would maintain the economic viability of many PC boilers throughout the 
U.S. Demonstrations are sought to show significant reductions in 
NOX from a coal-fired boiler utilizing biomass. The 
reduction in NOX must be more than that found in simple fuel 
substitution of biomass for coal. The demonstration needs to optimize 
the injection method and location for the biomass and then demonstrate 
NOX management with cofiring on a long-term basis.
    The Department of Energy is interested in receiving research 
applications that develop and demonstrate systems that utilize biomass 
as an emission reduction technology. This can be accomplished with any 
one or combination of the previously described methods or with any 
other demonstration method that meets the goal of emission reduction 
and biomass utilization. Note: Any project and demonstration proposed 
must address the issue of why this project is unique and different from 
other past cofiring projects (i.e. demonstrating biomass/coal cofiring 
directly).

B. Gasification-Based Cofiring Strategies

    This method is an indirect way of utilizing the biomass for 
cofiring versus the direct utilization of feeding the biomass into the 
furnace. Likewise, the direct application of cofiring is not amenable 
to gas-fired systems. Gasification-based strategies can overcome this 
obstacle as well as being more biomass fuel flexible than a direct 
cofiring system. Gasification of the biomass and then utilization of 
the gas produced and possibly any residues from the gasification 
process in a cofiring application permits a greater range of usage of 
biomass. This method will also keep the resultant coal and biomass ash 
from being commingled and thus permit ongoing coal ash sales if 
currently being conducted.
    Applications are sought which address this issue from distinct 
phases of engineering feasibility to demonstration of the technology. 
Impacts on the complete system cycle and efficiency must be taken into 
account.

C. Closed-Looped Biomass Co-Firing

    Applications are sought that develop and validate co-firing 
technology using a ``closed-loop'' feedstock supply. Respondents are 
encouraged to form appropriate consortia or other business arrangements 
with the agricultural community, industry, power producers, or other 
applicable organizations for the conduct of this venture. This 
arrangement will demonstrate and foster the efforts required for a 
sustained, economically beneficial, biomass cofiring power generation. 
The applicant should demonstrate an approach to the integration and 
successful application of a ``closed-loop'' feedstock supply system and 
a technically viable co-firing boiler system for power production.

D. Low Rank Coal Cofiring--Subbituminous & Lignite

    The DOE has, in the past, cooperated with power producers in 
testing and analyzing biomass cofiring in coal-fired boilers that use 
bituminous and some subbituminous coals. However, the program has not 
tested co-firing biomass in a lignite-fired boiler or extensively 
demonstrated subbituminous coals. Through this subtopic, the Biomass 
Cofiring Program intends to add lignite and subbituminous coals to the 
fossil fuels being demonstrated in other projects. The U.S. has a 
significant resource base of these fuels. Cofiring of lignite with 
biomass can be significantly different than cofiring subbituminous or 
bituminous coals due to the ash chemistry and moisture and other 
factors. A potentially attractive feature of cofiring biomass with 
lignite is that the boilers are designed for a fuel with low heat and 
high moisture content that is consistent with the properties of 
biomass. As such, DOE is seeking, through this solicitation, to 
demonstrate the viability of cofiring biomass with lignite or 
subbituminous coal for application within the fossil-fuel industry.

E. University and Colleges Cofiring Applications

    Cofiring in utility boilers can consume large amounts of biomass 
and produce power from this fuel source; however, this is also a 
detriment due to the large-scale nature of the utility. Biomass can 
become more expensive than the coal that is fired in the boiler if it 
has to be transported long distances. Due to these economics, it makes 
cofiring at some electric utilities unfeasible. Comparing fuel costs 
and quantities of biomass required to cofire, another major market can 
be identified, that is, the market that has smaller-scale boilers that 
pay more for their fuel than a large scale utility. These markets would 
include stokers (paying upwards of twice the cost of coal than that 
paid at a large utility) and fluidized bed combustors at the heating 
plants of our nation's colleges and universities. The size of the unit 
may permit the usage of biomass due to its location within a reasonable 
transportation distance along with the cost of the current boiler fuel, 
thus allowing more to be spent on obtaining and transporting the 
biomass. Fuels may include, but are not limited to, agricultural 
residues, dedicated crops, animal manures, and segregated MSW from 
university systems. Many universities and colleges have complimentary 
departments, such as engineering and agricultural departments, that 
could collaborate on this issue. Applications are sought from 
Universities and Colleges that will perform feasibility and small-scale 
R&D studies in utilizing biomass cofiring in their heating plant. Based 
on the results of the feasibility studies, subject to congressional 
appropriations, it is DOE's intent to issue a future open solicitation 
for cost-shared demonstrations in this area if funding is available. 
Prospective applicants who would like to be notified as soon as the 
solicitation is available should register at http://www.netl.doe.gov/business. Provide your E-mail address and click on the heading ``Energy 
Efficiency and Renewable Energy.'' Once you subscribe, you will receive 
an announcement by E-mail that the solicitation has been released to 
the public. Telephone requests, written requests, E-mail requests, or 
facsimile requests for a copy of the solicitation package will not be 
accepted and/or honored. Applications must be prepared and submitted in 
accordance with the instructions and forms contained in the 
solicitation. The actual solicitation document will allow for requests 
for explanation and/or interpretation.

    Issued in Pittsburgh, PA on February 3, 2000.
Dale A. Siciliano,
Deputy Director, Acquisition and Assistance Division.
[FR Doc. 00-3934 Filed 2-17-00; 8:45 am]
BILLING CODE 6450-01-P