Analysis outlines economic benefits of biomass thermal incentives

By Staff | August 20, 2013

A white paper published by FutureMetrics investigates the positive economic impacts that Biomass Thermal Utilization Act of 2013 could lead to, should it become law. The bill was introduced in the U.S. Senate in May and the U.S. House of Representatives in July. The report was prepared by William Strauss, chief economist of the Biomass Thermal Energy Council.

The bill aims to provide tax incentives to support the installation of commercial and industrial biomass heating systems.

According to the white paper, the substitution of biomass fuels for heating oil and propane systems will have a “dramatic positive effect on the economies of thermal energy dependent states.” The report specifies that when used in modern high-efficiency boilers, biomass fuels can lower the cost of heat by 40 to 60 percent when compared to heating oil.

The bill would help ensure money that would have been spent on heating oil or propane stays in the local economy and reduces heating bills, leading to additional disposable income being spent locally. The measure would also support the biomass supply chain, creating new jobs. The sale and installation of new heating systems would also generate jobs, and lead to sales tax revenues and income tax revenues.


6 Responses

  1. ANON



    Why not use HM3 processes to make HM3 Black Pellets for use in Pellet stoves. These sorts of torrification processes such as HM3 improve the amounts of energy output by over 20% and reduce pollution. Also, another company has a similar product which they're exporting to Europe for Co-firing with coal power plants because it reduces pollution over 30% refer to - personally, I would like to see torrification or conversion to Black pellets process to be included in the straw/hay/grass feedstock conversion to HM3 pellets as an addition to Large Turn-Key Systems then used at Blue Grass Army Depot in Richmond, KY and other large land area military bases to show others in America the value of these processes and HM3, Black Pellets (Bio-Coal), and Black Carbon (Bio-Char) and to defry the cost of heating via use of Bio Coal in Pellet Boiler Heaters. And eventual expansion to include making cleaner burning Diesel and Hydrogen fuels for on-demand hydrogen fuel systems on Diesel Trucks. If President Obama would make this happen at a dozen US Military bases then there would be rapid adaptation to renewable and lower carbon emission fuels.

  2. ANON



    Does anyone have a small Turn-Key Plant such as Pelletizing line with one granulators KOTLSP1800 (1000 kg / hr) which includes torrefaction of feed stocks or conversion of pellets to black pellets or Bio-coal? Also, I found another Turn-key Operation STAK Properties, LLC. at and Pelheat which includes conversion of biomass or pellets to electricity enough for a small town or factory. However, why are these processes not including torrification process to improve pelletization processes and 20% improvement in pellet energy, reduction in transport costs of terrified feed stocks, waterproofs pellets for better longer lasting strorage, better co-firing with coal power plants, and virtually carbon neutral (less pollution). Furthermore, both coal and wood can be combimed and converted into a sawdust mix to make pellets.

  3. ANON



    The torrefaction of biomass acts as a binder for the pelletization process so that coal dust can be added to these pellets and co-fired. Personally, I think this is idea because these pellets would be less polluting, waterproof, higher energy, cheaper to transport in coal hoppers, and cleaner gasification to power electrical generators for factories or small towns. Or can be used in home heating or converted into cleaner burning hydrogen gas for mixing into natural gas lines or hydrogen on demand diesel fuel trucks to improve diesel gas mileage by 20-30%. Also, these mixed biofuel pellets can be converted into cleaner burning bio-deisel fuel. refer to pelletizing processes or and Torrefaction Equipment $15,000 and Making Wood pellets via gasifier into H2 & C2 then Catalyst into Gasoline and H2 and CO Generation Plant from Coal (Coal to Hydrogen)

  4. ANON



    Here's an excerpt of a Power Engineering Magazine Article which is the most important discovery of the century for Biomass.... "Chemical Looping is an innovative chemical process that converts carbon-based fuels such as coal, biomass, syngas and natural gas to electricity, liquid fuels and/or hydrogen with low to negative net carbon emissions. The process is a series of reduction-oxidation reactions where initially a carbon-based fuel is reacted with metal oxide at high temperatures. The carbon reacts with the oxygen from the metal oxides to form carbon dioxide and steam. By producing only carbon dioxide and steam gases, the carbon dioxide can be easily separated and captured by condensing the steam. Then using air, the reduced metal particles are re-oxidized back to metal oxides that can be circulated and used again in the chemical looping process." And here's a good price on a Turn-Key Bio Diesel Plant.... Also, Alibaba.Com has good deals on HHO Generators for Diesel Trucks which will save over 40% on fuel costs - check it out. It would be a big win for clean air and renewables if all Diesel Trucks were given govt rebates and tax incentives to purchase and install HHO Generators for use with Bio-Diesel and or clean burning diesel from coal for fuels.

  5. Eva



    Here's new processes (Bio-Diesel & Hydrogen) which the Federal Government should build a dozen pilot plants for America's future in order to become energy self sufficient and reduce dependency on imported oil. Also, everything in America has to be trucked and these expensive diesel process are passed onto the consumer so whatever our Government subsidizes on construction of Bio Diesel Production Plants would indirectly go back into the hands of every American via cheaper products and cheaper food. I would like to propose $100 billion of direct funding subsidises for construction of Bio Diesel Fuel Production and for installing HHO Generators into every diesel truck and car in America and Coal Conversion to cleaner burning HHO. Cars could extend gas via Propane type tanks filled with Hydrogen for auto/truck hydrogen on demand systems in conventional gas & diesel vehicles. New process for production is same cost (Optinol achieves ethanol energy cost parity feasibility for butan) Coal to Hydrogen then to Diesel TO REDUCE POLLUTION There's simple solution: 1) convert Coal into Hydrogen: and CO Generation Plant from Coal (Coal to Hydrogen) 2) then use which is an ultra clean Fischer-Tropsch technology and then hold back a portion of the hydrogen for use in hydrogen injection on demand systems on heavy trucks - there are inexpensive conversion kits which will improve gas mileage by 10-40% while reducing pollutions from burning diesel fuels so the net effect of pollutions from making hydrogen and diesel fuel from coal and subsequently burning the lesser polluting diesel is much less than making diesel fuels from crude oil. Good Explanation of Biobutanol use as Biodiesel gasoline – can be blended with Diesel above 10-15% and burned in conventional engines without any problems and be piped without rust problems since it doesn’t retain water (bio-butanol is hydrophobic)

  6. Jon Allie



    SIR/MS: Sierra Club adherents and Biomass Supporters need to solicit our Senators and Congress to alter the new "Biomass Thermal Utilization Act (BTU ACT) to include large tax credits ($1.00 per gallon) for gas stations to sell Butanol Gas Blends (24%), Hydrogen Gas, Bio Deisel, CNG (Propane & Natural Gas) and installation of related kits for both Cars and Trucks. And tax credits for individuals whom get engine conversions to burn Bio Diesels and other alternate energy fuels. Likewise, and local state EPA supported coal to liquids or gas conversion plants should be Federally EPA approved automatically. And the largest Ethanol Plants (production over 20 million gallons per year) should be given Federal Funding to convert to Butanol Production (Cost is $15 Million each). This is needed to make the United States energy self sufficient and to give every American some relief from high Fuel & Energy costs and costs associated with transportation of goods via truck.


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