Biomass resources for energy in Ohio: The OH-MARKAL modeling framework

The latest reports from the Intergovernmental Panel on Climate Change have indicated that human activities are directly responsible for a significant portion of global warming trends. In response to the growing concerns regarding climate change and efforts to create a sustainable energy future, biomass energy has come to the forefront as a clean and sustainable energy resource. Biomass energy resources are environmentally clean and carbon neutral with net-zero carbon dioxide (CO2) emissions, since CO2 is absorbed or sequestered from the atmosphere during the plant growth. Hence, biomass energy mitigates greenhouse gases (GHG) emissions that would otherwise be added to the environment by conventional fossil fuels, such as coal.; The use of biomass resources for energy is even more relevant in Ohio, as the power industry is heavily based on coal, providing about 90 percent of the state's total electricity while only 50 percent of electricity comes from coal at the national level. The burning of coal for electricity generation results in substantial GHG emissions and environmental pollution, which are responsible for global warming and acid rain. Ohio is currently one of the top emitters of GHG in the nation.; This dissertation research examines the potential use of biomass resources by analyzing key economic, environmental, and policy issues related to the energy needs of Ohio over a long term future (2001-2030). Specifically, the study develops a dynamic linear programming model (OH-MARKAL) to evaluate biomass cofiring as an option in select coal power plants (both existing and new) to generate commercial electricity in Ohio. The OH-MARKAL model is based on the MARKAL (MARKet ALlocation) framework. Using extensive data on the power industry and biomass resources of Ohio, the study has developed the first comprehensive power sector model for Ohio. Hence, the model can serve as an effective tool for Ohio's energy planning, since it evaluates economic and environmental consequences of alternative energy scenarios for the future. The model can also be used to estimate the relative merits of various energy technologies.; By developing OH-MARKAL as an empirical model, this study evaluates the prospects of biomass cofiring in Ohio to generate commercial electricity. As cofiring utilizes the existing infrastructure, it is an attractive option for utilizing biomass energy resources, with the objective of replacing non-renewable fuel (coal) with renewable and cleaner fuel (biomass). It addresses two key issues: first, the importance of diversifying the fuel resource base for the power industry; and second, the need to increase the use of biomass or renewable resources in Ohio. The results of the various model scenarios developed in this study indicate that policy interventions are necessary to make biomass co-firing competitive with coal, and that about 7 percent of electricity can be generated by using biomass feedstock in Ohio.; This study recommends mandating an optimal level of a renewable portfolio standard (RPS) for Ohio to increase renewable electricity generation in the state. To set a higher goal of RPS than 7 percent level, Ohio needs to include other renewable sources such as wind, solar or hydro in its electricity generation portfolio. The results also indicate that the marginal price of electricity must increase by four fold to mitigate CO2 emissions 15 percent below the 2002 level, suggesting Ohio will also need to consider and invest in clean coal technologies and examine the option of carbon sequestration. Hence, Ohio's energy strategy should include a mix of domestic renewable energy options, energy efficiency, energy conservation, clean coal technology, and carbon sequestration options. It would seem prudent for Ohio to become proactive in reducing CO2 emissions so that it will be ready to deal with any future federal mandates, otherwise the consequences could be detrimental to the state's economy.