Environmental and socio-economic implications of woody biomass co-firing at coal-fired power plants

We apply a detailed power sector model to explore the near-term role of woody biomass co-firing at existing coal facilities in the Eastern US in the decarbonization of US electricity generation. We evaluate five public policy interventions: a biomass co-firing subsidy, two carbon emissions fees, and two clean energy standards. Treating woody biomass as a carbon neutral feedstock, we find co-firing weakly supports decarbonization. However, policies subsidizing co-firing can delay retirement of coal facilities and reduce generation from nuclear, natural gas, wind and solar. Consequently, corresponding sector-wide emissions of CO2 and SO2 may increase (slightly) due to greater utilization of coal plants including relatively inefficient facilities. We assume NOx emissions increase due to generation efficiency losses, but this remains uncertain. Due to higher emissions, a biomass subsidy for co-firing yields small (near zero) economic welfare losses, while in contrast other policies advance decarbonization and yield significant welfare gains. We find justification for biomass use from a local perspective based on first-order impacts on employment and economy activity, but less so air quality. (C) 2022 Elsevier B.V. All rights reserved.

Automated summary

This study applies a detailed power sector model to assess the impact of woody biomass co-firing at existing coal facilities in the Eastern US on the decarbonization of US electricity generation. The findings suggest that co-firing weakly supports decarbonization, but policies subsidizing co-firing can hinder the retirement of coal facilities and reduce clean energy generation. As a result, CO2 and SO2 emissions may increase due to greater utilization of coal plants, including less efficient facilities.