Councilman Dan Boeger gave an excellent presentation of explanation of Gridley's proposed Department of Energy Project at the Monday night regular City Council meeting.
Attending the alternative energy meeting in Washington DC., with Tom Sanford on March 19, 2009, Boeger explained that the project is still in the research stage. He stated that if the research continued to be successful, a community project could be built in Gridley. Biomass fuel for this plant would be from 12 truckloads per day of rice straw and other agricultural waste.
One of the concerns heard is the fact that Gridley and others have tried to generate fuel from rice straw process and failed. This project is a different, newer process than the previous BCI process. BCI used a bacteria in the F-T that was very expensive and fragile and unreliable. Red Lion uses a thermo chemical process. Hitler used early F-T process and fuels throughout WWII. Appendix A-6 compares Red Lion's to other F-T units now being tested in DOE experiments.
Benefits listed by Boeger for a Biomass to Electricity and Diesel plant being built in Gridley included:
1. Low cost electricity. The City will have 9 MW of cheap electricity from the plant with no PG&E transmission fees. Gridley will almost be self-sufficient with this power generation. Plus most of the electricity is renewable. Using the NCPA estimated 12.5 cent/kwh sale price of renewable electricity vs. the 7.2 cent/kwh cost, the plant could net Gridley $1 million or more each year. Gridley's present power cost per kwh: WAPA 4.92 cents, Geo 9.14 cents, MPP 7.94 cents and NCPA pool 7.73 cents.
2. Low cost sulfur-free diesel. In addition to the electricity, the Gridley plant will produce five million gallons of zero sulfur diesel. This is not a "biodiesel" like those of foul engines, but is a high quality, clean, diesel fuel. Dynamometer tests will soon start to further test this diesel.
3. New electrical substation. The City's 12MW present substation on Fairview Drive is nearly maxed out by summer peak loads. So if Gridley grows either with new homes, large new industries or new solar farm, Gridley will need a new, larger substation to avoid black outs. This project includes a $3 million, 25 MW, substation that will accommodate a Gridley of twice the present peak load. This substation will be paid for entirely by the owners of the plant - at zero cost to the City of Gridley and its electrical customers.
4. New Industry - New Jobs.
a. The power plant will bring, about 50 new, full time, high paying jobs in Gridley.
b. The power plant will be used as a training site for future, similar plants. These trainees will stay in Gridley motels and eat at Gridley restaurants while being trained.
c. The cheap steam generated by the power plant should attract additional industries.
d. Future expansion to this plant could use residential green waste as a low cost fuel and to help local landfills - along with creating more new jobs.
5. Help Existing Gridley Jobs.
a. This will help area farmers by giving them an extra source of income as they sell their agricultural wastes to this plant.
b. The plant's steam will lower Rio Pluma's (Stapleton's) operating costs.
c. Some of Rio Pluma's waste can be used for feedstock in the power plant, making the plant more efficient and also easing the load on Gridley's sewer plant.
d. Area farmers are in danger of having to replace all their older diesel engines because of sulfur emissions. The five million gallons of diesel out of this plant is sulfur free and would have a wholesale price of about $2 per gallon.
The most important point of the presentation is that the net cost of a DOE research project would be nothing. In the current "Gridley Project," all City costs are reimbursed by the DOE and DOD.
The costs of all the previous projects have also been reimbursed by DOE and by the State.
Boeger explained that there are no guarantees that the project will go all the way to become a commercial plant producing electricity and fuel and creating jobs. The project has had zero cost to the City for the pure research of these technologies. The developers say all the revolutionary new technologies have been proven in laboratories. It's a matter of connecting the two new technologies, and then designing and building a full size plant.
The last time that the "Gridley Project" and other DOE biomass projects were reviewed 18 months ago, the DOE suggested that Gridley join with a new Agricultural Waste into Synthesis Gas (Syngas) project being done in Toledo, Ohio and with a new Syngas into Diesel technology being done at McClellan's Industrial Park.
One common question asked of Boeger is 'how can little Gridley do what giant corporations have been trying to do?"
Boeger's answer is, "In the tradition of America, these two technologies came 'out of the garages' of the inventors in Sacramento and Toledo, Ohio and were funded initially by their own personal savings. These inventors have continued to invest their personal funds, now with DOE and other agencies matching their continuing investments. Garage inventors can do what giant corporations cannot. And DOE, DOD, and Gridley can help them do what they cannot do by themselves.
Boeger stated, "The previous group of farmers were disappointed it wasn't built before. Even if we don't build, we helped make the project a reality," at no cost to the City.
The current estimation is that the plant would produce nine megawatts of mostly renewable electricity for Gridley at about only. 7.2 cents/kwh cost. In addition to the electricity, the plant will produce about five million gallons of zero sulfur diesel at about $2 per gallon each year.
When the "Gridley Project's" research stage ends this winter or fall, if the new technologies and the economics of the projects are fully demonstrated, a commercial plant could be built.
Both Mayor Jerry Fichter and Mayor Pro-Tem Bruce Johnson thanked Boeger for a very good, informative presentation with Fichter adding, "We are meeting with the Biggs City Council on Monday, April 13, 2009 to discuss alternative energy plans for the two cities." The meeting will begin at 5:30 p.m. at Gridley City Hall.
