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The Prospects for an Electrical Generation & Transmission Cooperative
Fueled by Straw Produced in Eastern Washington* |
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By
Ken Duft and Judson Pray** |
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Printable document
in pdf format of the complete
Extension Bulletin 1946E: (EB1946E). |
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Abstract |
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The
objective of this study was to determine the economic prospects of
operating a cooperatively-owned electrical generating and transmission
facility fueled by straw produced in eastern Washington. Beyond the
generally-understood parameters of a cooperatively-owned enterprise,
this study attempts to address several related economic feasibility
issues. For example, the total availability of straw first had to
be determined. Second, the total cost of producing, harvesting, transporting
and storing fuel (straw) was estimated. Next, we sought to determine
the most cost-effective means (from amongst those available) for harvesting,
transporting, and storing the straw. Fourth, we attempted to determine
the costs to construct, operate, own, and manage a straw-fired electrical
power generating facility. Next, an assessment is made as to the profitability
and competitive performance of such a facility within electrical rate
schedules currently in place throughout the region. Finally, we sought
to entertain additional secondary benefits which might contribute
to, or accrue from, such a prospective project.
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Our
research findings suggested that not all wheat, barley, and grass
seed straw is economically available for harvesting. Where yields
are low and distances are great, the cost of harvesting, storing and
transporting eastern Washington straw may be excessive. From amongst
our annual production of "eligible" straw, however, supplies
are more than sufficient to fuel not just one, but a multiple of 30
MW electric co-generating facilities. The most cost-effective location
of such a facility (or facilities) would be Whitman County, due mostly
to its central location and its inherent density of straw production.
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Photo: Wheat Stubble
Burning taken by Larry Schwarm; used with his permission |
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Electricity
could be produced from straw burning at an estimated total cost of
$0.08 kwh, compared to current retail rates of around $0.04 kwh. As
such, straw does not currently appear to be an attractive alternative
fuel compared to those we traditionally rely on. This alone, however,
does not render the straw burning option to be uninteresting. Should
the regional demand for electricity continue to grow, and should traditional
sources of fuel prove fixed in magnitude, other alternative (and more
expensive) sources of fuel will need to be explored. In addition,
straw burned in the process of producing electricity incorporates
several externally-generated benefits not normally accruing to non-renewable
fuels. |
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*
Research on this project was conducted with support provided by the
Bonneville Power Administration, the Northwest Cooperation Development
Center, the Washington State Council of Farm Cooperatives, and Washington
State University. |
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**
Professor and Research Assistant, Dept. of Agricultural & Resource
Economics, Washington State University, Pullman, WA 99164-6210. |
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