WOOD PELLET NEWSLETTER
August 2009
Gerald W brown * 7202 County Road U * Danbury, WI 54830 Phone 715-866-8535
Gerald Brown is solely responsible for the content in this newsletter
• SOME OF THE FASTEST GROWING SOURCES OF RENEWABLE ENERGY IN THE WORLD ARE THE WIND, THE SUN -- AND THE LOWLY WOOD PELLET.
• GREEN ENERGY RESOURCES INKS ANOTHER WOOD PELLET CONTRACT
• MASSENA PELLET MILL LEADING "GREEN"
• Rich's Home Promotes $1,500 Tax Credit on Wood Stoves, Pellet Stoves and Fireplaces
• GOING GREEN IN SWEDEN
• EUROPEANS REDEFINE WOOD-BURNING AS RENEWABLE ENERGY SOURCE
• BONO GOES FOR A WOOD-PELLET BOILER
• PELLET BOILERS INCREASINGLY USED TO HEAT MUNICIPAL BUILDINGS
• INNOVATIVE PRODUCTS COULD SAVE FOREST INDUSTRY
• CURRAN SHIPS ITS FIRST PELLETS
• NOT ENOUGH WOOD PELLETS
• MORE INVESTMENT AS COMPANIES TURN TO WOOD PELLETS FOR ENERGY
• AIR PANEL PLANS WORKSHOPS ON TOUGHER FIREPLACE BURNING RULES
• DOE, TREASURY PROVIDE GUIDANCE ON DIRECT PAYMENTS FOR RENEWABLE PROJECTS
• PELLETS START SHIPPING FROM UPSTATE N.Y. PLANT
• $118 MILLION WOOD PELLET PLANT IN JACKSON IN LIMBO
• PLANTATION ENERGY SECURES GREEN ENERGY EXPORT CONTRACT
• ORR, MN PURSUES WOOD-PELLET MANUFACTURER
• GREEN CIRCLE BIO ENERGY REFLECTS ON ONE YEAR IN BUSINESS
• MAINE WOOD PELLET PLANT PLANNED
• WOOD STOVES -- A VIABLE HOME HEAT SOURCE?
• PELLET PLANT IN WORKS PORTLAND MAINE
• MITSUBISHI CORPORATION PARTICIPATES IN THE EUROPEAN BIO-PELLET MARKET
• NEW YORK MUSEUM INSTALLS WOOD-PELLET BIG BOILER
By RUSSELL GOLD
Some of the fastest growing sources of renewable energy in the world are the wind, the sun -- and the lowly wood pellet.
European utilities are snapping up the small combustible pellets to burn alongside coal in existing power plants. As a global marketplace emerges to feed their growing appetite for pellets, the Southeastern U.S. is becoming a major exporter, with pellet factories sprouting in Florida, Alabama and Arkansas.
Fueling Europe
View Slideshow
Jason Henry for The Wall Street Journal
A hydraulic lift thrusts a tractor-trailer into the sky to dump a load of sawdust that will be used for production of wood pellets at Green Circle.
• More photos and interactive graphics
Wood pellets -- cylinders of dried shredded wood that resemble large vitamins -- are the least expensive way to meet European renewable-energy mandates, utility executives and industry consultants say.
Made from fast-growing trees or sawdust, pellets are a pricier fuel than coal, but burning them is a less-expensive way to generate electricity than using windmills or solar panels. Burning pellets releases the carbon that the trees would emit anyway when they die and decompose, so the process is widely regarded as largely carbon neutral. In contrast, carbon is locked away in coal and is only released once the coal is dug out of the earth and burned.
The wood-pellet market is booming because the European Union has rules requiring member countries to generate 20% of their electricity from renewable sources by 2020. Europe imported €66.2 million (about $92.6 million) of pellets and other wood-based fuels in the first three months of 2009, up 62% from the same period a year earlier, according to the EU's statistical arm.
Government mandates are essential to the increasing use of pellets in power generation, and the growing global pellet trade, experts say.
"You are looking at a totally artificial market," said Christian Rakos, chief executive of Propellets, an Austria-based trade group of pellet producers. "No power plant would consider using pellets for one minute if they didn't have to do it."
Still, Europe's eagerness for more pellets has turned the U.S. into an energy exporter. Until recently, there were only about 40 pellet factories in the U.S., which produced about 900,000 tons a year, mostly for heating homes.
But in May 2008, Green Circle Bio Energy Inc. opened a pellet plant in Cottondale, Fla., that produces 500,000 tons of pellets a year; it ships them by rail to the coast and then on to Rotterdam, Netherlands. The company, owned by Swedish concern JCE Group AB, wants to build another big plant in the U.S., said Olaf Roed, chief executive of Green Circle.
Another 500,000-ton facility in Selma, Ala., owned by Dixie Pellet LLC, also opened last year. And Phoenix Renewable Energy LLC plans to break ground next month on a 250,000-ton-a-year pellet plant in Camden, Ark., along with a 20-megawatt power plant run off tree scraps that will feed heat to the pellet plant. The $100 million facility's output for five years has been contracted to go to Europe, and Phoenix is working on another five facilities.
Pellets can either be made out of sawdust left over from lumber production or from soft-wood trees such as pine. These aren't growing in wild forests, but in industrial plantations where they can be harvested easily and often.
Photo Journal
Jason Henry for The Wall Street Journal
Green Circle employees race to repair one of the pellet mill's dies that give the pellets their compacted cylindrical shape at the plant in Cottondale, Fla., July 1.
At Green Circle's Florida facility, bark is stripped off the tree and burned to generate steam used in making the pellets. The tree itself is cut up in a wood chipper, dried and hammered into a powder, which is formed into pellets under very high pressure.
It is easy for these pellet plants to find raw material. The pulp and paper industry is declining, and the housing slump has sapped the need for hardwood. Forest owners are ecstatic that pellet plants are stepping in.
"We are irrationally exuberant," said Lee Laechelt, executive vice president of the Alabama Forest Owners Association.
Australia, New Zealand, Argentina and Vietnam are also shipping pellets to Europe, as are Canada and South Africa, said Helmer Schukken, CEO of GF Energy BV, a Rotterdam-based trader.
Wood pellets are becoming the newest global commodity, with prices posted on an Amsterdam energy exchange, Mr. Schukken said. "It is becoming like trading coal."
That will make it easier for England's Drax Group PLC, which is installing equipment at its giant 4,000-megawatt coal-fired power plant in North Yorkshire to use pellets in place of coal for up to 10% of the fuel. Pellet makers say Drax is lining up contracts in the U.S. Other big buyers include Dutch power company Essent NV, which is being acquired by Germany's RWE AG, and French GDF Suez SA's Electrabel unit.
Of course, U.S. utilities may soon be as interested as their European counterparts in burning pellets instead of coal. California, which has a goal of producing 33% of its electricity from renewable sources by 2020, is looking at using wood products in coal plants.
If a federal renewable energy standard is approved, "we won't be shipping pellets overseas," said Phoenix Renewable Energy's development director, Steve Walker. "We'll be shipping them domestically."
Write to Russell Gold at russell.gold@wsj.com
Printed in The Wall Street Journal, page A4
GREEN ENERGY RESOURCES INKS ANOTHER WOOD PELLET CONTRACT
7/6/2009 4:22:51 PM GMT
NEW YORK: Green Energy Resources (Pink Sheets: GRGR) has received two separate orders totaling 20,000 tons of wood pellets valued at US$28 million dollars over 12 months. The order is expected to commence late in 2009 and extend throughout 2010. The wood pellets are used in co-firing with coal to reduce green house gas emissions.
Last month, the company signed a 10 year domestic biomass supply contract valued at over US$300 million dollars. The contract contains provisions for monthly fuel adjustments and yearly inflation increases after supply commences in 2010. The power plant requirements exceed one million tons annually to upwards of 1.5 million tons.
Green Energy Resources sources its wood from urban wood waste streams, storm damage, cities and municipalities. The company is currently engaged in exports of wood chips to power plants in Europe
MONDAY, JULY 6, 2009
Massena pellet mill leading "green"
Curran Renewables in Massena started its first test run of wood pellet production last week. The plant, owned by Pat Curran - who also owns Seaway Timber Harvesting - will make up to 100,000 tons of wood pellets a year from wood scraps from the timber business.
The business garnered a national first recently when the Rainforest Alliance gave it green certification from the Forest Stewardship Council. From the press release:
With the increasing importance of biomass as a source of energy, businesses are recognizing the risks that could result from placing increased pressure on finite forest resources to fill the demand for their production," explains Dave Bubser, SmartWood regional manager for the Rainforest Alliance. "The FSC/Rainforest Alliance certification acts as a guarantee to consumers and producers that their efforts to promote energy independence and reduce greenhouse gas emissions are not compromised by destructive impacts to forests, communities and wildlife that can result from overharvesting. Curran Renewable Energy's efforts establish FSC certification as a guide for balancing environmental and social values with the production of forest-based biofuels.
Pat Curran says he's been approached by more interested buyers since the certification was announced last week. But he's waiting to make commitments until the Massena plant goes into full production mode. He says that could happen by the end of the month.
posted by David Sommerstein @ 7/06/2009 10:04:00 AM
Rich's Home Promotes $1,500 Tax Credit on Wood Stoves, Pellet Stoves and Fireplaces
Rich's Home customers who purchase an energy-efficient wood or pellet stove, fireplace, or fireplace insert can claim a tax credit of up to $1,500 on their 2009 or 2010 federal income taxes.
Seattle, WA (PRWEB) July 9, 2009 -- Rich's Home customers who purchase an energy-efficient wood or pellet stove, fireplace, or fireplace insert can claim a tax credit of up to $1500 on their 2009 or 2010 federal income taxes.
The tax credit, part of the US government's Recovery Act, applies to 75 percent-efficient biomass burning stoves and can be used for the purchase and installation of the stove, venting, and hearthpads.
This new tax credit is a great way for consumers to save up to 30 percent on a wood stove or pellet stove purchase
This tax credit is an outstanding achievement for the biomass stove industry
We're cautiously optimistic that it will increase demand for the products.
"This new tax credit is a great way for consumers to save up to 30 percent on a wood stove or pellet stove purchase," says Jon Chapman, marketing manager for Lynnwood-based Rich's for the Home, the largest US retailer of wood stoves.
A homeowner who spends $3,000 on a stove, for instance, can claim a 30 percent tax credit - or $900 - on his or her federal income tax return, Chapman explains. The credit either increases the tax refund or decreases the tax bill, dollar-for-dollar.
The tax credit is good on all stove and fireplace brands Rich's for the Home carries, including Lopi, Hearthstone, Avalon, Morso, and Harman. People who purchase stoves will receive certification that the product qualifies for the tax credit.
"This tax credit is an outstanding achievement for the biomass stove industry," says Chapman. "We're cautiously optimistic that it will increase demand for the products."
Tax credit details:
The credit applies only to existing principle residences.
Taxpayers must retain the certificate of qualification for tax record keeping purposes, but the certification is not required to be attached to the tax return.
Prior purchases made between January 1, 2009 and June 1, 2009 are covered if the manufacturer offers a certificate of qualification for the product.
The benefits of heating with biomass:
Reduced heating costs - Wood and pellet prices fluctuate less than propane, oil, and natural gas.
Green heating - Wood and pellet fuel is a carbon-neutral, renewable resource. Today's stoves produce more heat with less wood and are clean-burning, with less ash and minimal outside air emissions. They eliminate 75 percent of the carbon emissions associated with fossil fuel burning.
For complete details about the tax credit:
IRS Notice 2009-53, Non-business Energy Property - http://www.irs.gov/pub/irs-drop/n-09-53.pdf
Hearth, Patio & Barbeque Association (HPBA) - http://www.hpba.org/government-affairs/issues-legislation/
About Rich's for the Home:
Celebrating its 30th anniversary in 2009, Rich's for the Home is the largest retailer of wood stoves, hot tubs, and outdoor furniture in the United States. The family-owned business has five Puget Sound superstores: Lynnwood, Bellevue, Southcenter, Tacoma, and Silverdale or online at www.richshome.com
GOING GREEN IN SWEDEN
by terryhallinan
Wed Jul 08, 2009 at 09:15:36 PM PDT
KALMAR, Sweden — Though a fraction of Chicago’s size, this industrial city in southeast Sweden has plenty of similarities with it, including a long, snowy winter and a football team the town’s crazy about.
One thing is dramatically different about Kalmar, however: It is on the verge of eliminating the use of fossil fuels, for good, and with minimal effect on its standard of living.
Kalmar is not the only "greenest city."
• terryhallinan's diary :: ::
•
Sweden's green role model city
The Swedish city of Växjö has reduced its emissions of carbon dioxide per inhabitant by nearly a quarter, and is aiming to go lower still. Now it has won a Sustainable Energy Europe Award for its environmental efforts.
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On May 23, 1707 Swedish scientist Carl Linnaeus was born in a village outside Växjö. Enormously influential as a botanist, he was also one of the first to preach sustainability. Today climate change and sustainable solutions are at the top of the global agenda, and Växjö is setting an example for the world to follow.
The city, set among forests and lakes in the south of Sweden, is on a mission to become totally fossil fuel-free. And it’s well on its way. Henrik Johansson, environmental controller at Växjö’s planning department, says: "More than 50 percent of the city’s total energy comes from renewable sources."
See here.
What is this green miracle in Sweden you think?
It is not solar though there is solar. It is not wind power though there are probably wind turbines. Nobody wants to freeze in the dark in Sweden with intermittent power.
It is not nukes though some think nuclear winter is a fine way to fight global warming.
It is not geothermal because Sweden is as reluctant to generate power from geothermal as Vermont.
A clue to solving the mystery can be found in a Swedish company in Florida:
Welcome to Green Circle
As the renewable energy sector is in its formative years of becoming a large scale industry, Green Circle has been established with the purpose of becoming a major player in the international market for alternative, carbon neutral energy.
Bio Green Circle does it with a plantation.
No not that kind of plantation. Rather a tree plantation. Bio Green Circle makes pine trees from its plantations into wood pellets and then ship them to Europe where they are co-fired with coal.
Hardly ideal. There is no real need for tree plantations with all the waste wood available IMO. Co-firing wood pellets with coal means you have a coal burning power plant.
But at least Europeans want to burn less coal unlike American companies that prefer the real unadulterated coal and plan to magically make it clean.
But now maybe you can see the answer to the riddle.
The Swedish green cities are burning wood.
Fancy that.
Lots of Americans seem not to have heard of such a thing. They dream of intermittent power doing it all, an updated national grid that isn't happening, massive increases in nuclear power with no Jackass Flats to store the waste forever and ever, solar satellites zapping power down to earthlings on radio beams, all manner of things.
But burning wood? Green?
You betcha.
And it's happening even in this backward land though it's an uphill struggle.
EUROPEANS REDEFINE WOOD-BURNING AS RENEWABLE ENERGY SOURCE
In a curious redefinition of renewable energy sources, European utilities are vastly increasing their imports of American-grown wood to burn in power plants in the form of wood pellets.
Renewable energy has most often been considered in the realm of wind-powered turbines and solar-paneled surfaces and in the promises of ocean tides and geo-thermal drilling operations. But European utility operators have brought forward another source - one might say a retro-source - in the combustion of wood pellets.
Wood-fired energy has been with us since the caveman days, and it is certainly curious that it is now considered to be a renewable energy source - by the most enlightened of energy-conscious societies.
The answer to this curiosity is found in the cheap production and usage associated with wood pellets.
"Wood pellets -- cylinders of dried shredded wood that resemble large vitamins -- are the least expensive way to meet European renewable-energy mandates, utility executives and industry consultants say," The Wall Street Journal reported.
Wood pellets are manufactured from fast-growing, low-value trees and from sawdust and other pulp waste.
"Burning pellets releases the carbon that the trees would emit anyway when they die and decompose, so the process is widely regarded as largely carbon neutral. In contrast, carbon is locked away in coal and is only released once the coal is dug out of the earth and burned," according to WSJ.
This is an artificial logic, but government mandates are dictating the use of wood pellets more broadly.
"You are looking at a totally artificial market," Christian Rakos, chief executive of Propellets, an Austria-based trade group of pellet producers, told WSJ. "No power plant would consider using pellets for one minute if they didn't have to do it."
But that is the way it has become with cap and trade implementation. The United States has effectively become an energy exporter through the distribution of wood products.
"We are irrationally exuberant," said Lee Laechelt, executive vice president of the Alabama Forest Owners Association, in the Wall Street Journal report.
BONO GOES FOR A WOOD-PELLET BOILER
IN THERMAL NEWS > PROJECTS
BY AER STAFF ON FRIDAY 10 JULY 2009
Wood-pellet fuel has a new high-profile supporter: U2 frontman Bono is having a wood-pellet boiler installed at his mansion in Killiney, Ireland.
The Irish Independent reports that the rock star has been granted permission by the county council to develop a 173 square-foot room below the two-story residence for the new boiler. The mansion is located in a conservation area, but the council noted that it does not have protected structure status and the below-ground installation would not disrupt the area’s residential amenity.
SOURCE: The Irish Independent
PELLET BOILERS INCREASINGLY USED TO HEAT MUNICIPAL BUILDINGS
newsfox.com - pressetext Nachrichtenagentur GmbH (pte)
2009-07-10 14:04:04 -
Pforzheim (pts/10.07.2009/13:50) - Wood pellets are increasingly the fuel of choice in new and renovated municipal buildings: According to the German Energy Pellets Association (DEPV), more and more municipalities are turning to pellet heating systems to provide heating for non-residential buildings such as schools, kindergartens or city halls. The German government's second economic stimulus package, along with further incentive programs,
provides municipalities with additional funding opportunities. "Thanks to financial incentives, the decision to replace heating systems as part of an energy efficient renovation has become much easier. The modernization of roofs, windows, façades and indeed heating systems also guarantees the economic operation of public buildings in the long term," states Horst Dufner, Interpellets 2009 Project Manager, in assessing the trend. At the Interpellets 2009 trade fair, municipal energy officers, architects and building services planners will be able to view the wide range of products, services and technical solutions currently offered by the wood pellets industry. Interpellets 2009 will take place from October 7-9 at the New Stuttgart Trade Fair Center.
Pellets present an attractive heating alternative, particularly for buildings such as civic centers, kindergartens, schools and city halls. The Gaienhofen-Horn fire department at Lake Constance, the Struwwelpeter children's day care center in Grünwald, near Munich, Bavaria, and Kempten's Cambomare leisure pool all have one thing in common: their heating requirements are provided by large wood pellet boilers. More and more municipalities now rely on this modern fuel to supply energy for their buildings. Last year the German Energy Pellets Association (DEPV) observed a trend towards larger heating systems with a thermal output of over 50 kilowatts. The majority of these are being employed in municipal and commercial projects.
Economically viable: pellets heating systems have a payback period of between five and eight years
The DEPV believes that savings in fuel costs and the ensuing short payback times are reasons to invest in pellet heating systems. In addition to the ecological arguments for using renewable energies, the use of wood pellets can also be economically advantageous: Municipalities can greatly reduce fuel costs when compared with fuel oil or natural gas, in some cases by up to 50 percent. Long-term energy costs can be more easily calculated since, unlike conventional energy sources, they are not subject to severe fluctuations in price. Moreover, expert opinion states that large pellet plants have a payback period of approximately five to eight years. "The larger the system a municipality invests in, the more economically viable it is," declares Horst Dufner. This is because boiler costs fall with each installed kilowatt of thermal output and the price advantage of the fuel is greater when large heat quantities are produced by bigger pellets heating systems.
Pellets heating systems can be adapted to suit different heating requirements in non-residential buildings
The planning of large pellets plants is complex: An efficient supply of fuel is necessary, and the removal of ashes and the pellets storage must be well thought-out. The pellets storage area should also not be too large. For practical reasons, experts recommend planning storage space for between 60 and 100 cubic meters of wood pellets. One bulk transporter carries approximately 40 cubic meters of pellets. With one and a half transporter loads the operator has sufficient time to order a new delivery once fuel supplies are running short. The user can also purchase one full transporter load and will therefore only require a smaller, more cost-effective store.
The various uses of the building are also important: Schools and kindergartens have different heating requirements to civic centers and exhibition halls for example. These heating requirements must be determined according to the relevant framework and in a clear and comprehensible manner. The wood boiler must then be designed to meet the heating requirements as closely as possible, so that it achieves the high capacity utilization required.
Large pellets heating systems enjoy state subsidies in many European countries
Large pellets heating systems enjoy state subsidies in many European countries. In Germany, biomass heating systems with an output of up to 100 kW automatically receive a subsidy under the Federal Office of Economics and Export Control (BAFA) market incentive program. Numerous regional incentive programs are also available.
Municipal energy officers as well as building services planners and architects require specialist, practical information during the decision-making and preparation phases of a renovation project. Training and current information relating to pellets technology are helpful during this process. The Interpellets 2009 international trade fair provides an overview of the range of products and services currently available in the pellets industry: it is an information platform covering all aspects of wood pellets technology. Manufacturers, dealers and suppliers from the pellets industry will meet at the New Stuttgart Trade Fair Center from October 7-9. Boilers and heaters in different performance categories will be on show at Interpellets 2009, alongside services and innovations in pellets technology. Around 500 trade experts are also expected to attend the accompanying 9th Pellets Industry Forum trade congress on October 6 and 7.
Organizers and supporters of Interpellets 2009 and the 9th Pellets Industry Forum:
The Interpellets 2009 trade fair and the 9th Pellets Industry Forum are organized by Solar Promotion GmbH, Pforzheim, Germany. Funding for the event is provided by the German Energy Pellets Association (DEPV) and the German Solar Energy Society (DGS).
Solar Promotion GmbH
Martin Pfränger / Horst Dufner
P.O.Box 100 170
75101 Pforzheim, Germany
Phone +49 (0)7231 / 58 59 8-0
Fax +49 (0)7231 / 58 59 8-28
info@interpellets.de
http://www.interpellets.de
Press contact:
Press office Interpellets 2009 and 9th Pellets Industry Forum
c/o pr.moebitz Gabriele Möbitz
Freiaustraße 58
79100 Freiburg, Germany
Phone +49 (0)761 / 881 49-84
Fax +49 (0)761 / 881 49-85
gmoebitz@pr.moebitz.de
http://pr.moebitz.de
INNOVATIVE PRODUCTS COULD SAVE FOREST INDUSTRY
By Nick Sambides Jr.
BDN Staff
BANGOR DAILY NEWS FILE PHOTO
Despite filing for bankruptcy protection in Canadian and U.S. courts on June 18, the Toronto-based Fraser Papers states that the Madawaska mill will continue operations, as will the affiliated Katahdin Paper mill in East Millinocket. Fraser’s Edmundston, New Brunswick, facility, which is across the river from the Madawaska site, suspended operations in early June. Buy Photo
Brazil’s emergence as a leading pulp manufacturer and China’s as a papermaker. The crippling impact of high electricity costs. The downturn in the newspaper and magazine industries, the home building market and the continued uptick in paperless computer usage.
And, of course, the worst economic recession since the 1930s.
To the common eye, Maine’s forest products industry has been like a battered boxer for most of the last 20 years: hammered by layoffs, declining markets and international competition. But take a minute to peel away the recession and its impacts, and what’s left?
What within Maine’s largest and proudest manufacturing industry looks likely to survive, if not flourish, over the next five to 10 years?
Lincoln Paper and Tissue LLC co-owner Keith Van Scotter, Maine Forest Products Council spokesman James Cote and University of Maine professor Habib Dagher spend most of their workweeks tackling that kind of question.
They agree that Maine’s rich forest products history, diverse mills and crops of hard and soft woods give it a foundation to create new products to dominate the post-recession world.
“This latest recession is really hitting us for a whack. Everybody has suffered through this downturn,” Van Scotter said. “That has been a fact of life, but if you look beyond it, the balanced integration of the industry will be its strong point.”
By percentage of its overall size, Maine is the state with the most land devoted to forestry and, by tonnage of trees turned into forest products, is the second-largest forest products state in the nation, Van Scotter said.
“I would not go so far as to say that the paper industry is just stringing along,” Cote said. “It was producing more paper than ever within the last couple of years.”
An investment banker he met in New York drew for Van Scotter an intriguing parallel.
“He said the paper industry today reminds him of the steel industry in 2001 — in terrible shape. Two-thirds of the industry was bankrupt,” Van Scotter said. “Then they went through an intense phase of restructuring and, from 2004 to ’07, had some tremendously good years.”
Speaking of bankruptcy, Fraser Papers began a court-supervised bankruptcy restructuring in Canada last month. The company said it lacks enough cash to meet its financial obligations. The list includes ongoing operating losses, a $25 million Canadian loan repayment due in September and $7.8 million in severance payments from the temporary shutdown of a Quebec pulp mill.
It also needs $10 million to help pay its suppliers and $7.7 million owed on municipal property taxes. Fraser blames weak lumber and pulp markets for its losses.
More generally, the recession is forcing mill managers to trim bureaucracy and old products. What remains, Van Scotter and Cote said, will sell. Those mills that survive will find new products.
UMaine scientists and engineers are working with more than 80 Maine companies to develop those products, Dagher said. An example: Louisiana Pacific invested $140 million in 2007 in its New Limerick mill to turn it into a laminated strand lumber facility making home-building products.
Laminated strand lumber is engineered wood that increases design flexibility and cuts labor costs.
“The biggest advantage with it is that you don’t need large saw timbers to produce large structural members. You can use smaller trees, low-value trees and wood wastes of just about any species,” Dagher said. “And the composite you make is two to three times stronger than the parent wood.
“This is the next generation of solid timbers for this state,” he said.
Correct Building Products LLC of Biddeford is the nation’s first manufacturer of polypropylene-based wood-plastic composites. The company’s decking boards are by weight equally sawdust and plastic. This technology should eventually replace pressure-treated wood as the home decking material of choice, Dagher said.
It’s not a new technology, but pellets are another fledgling enterprise. Maine has two large-scale pellet producers, according to the Pellet Fuels Institute, a nonprofit association that serves the industry. Corinth Wood Pellets LLC is in Corinth and Maine Woods Pellet Co. is in Athens. A third company, Northeast Pellets LLC, is in Ashland.
Van Scotter said pellet manufacturers might find New Hampshire, Vermont or New York more likely states in which to expand than Maine because they face less competition in those states for raw wood products. “They will go more towards where there is less wood usage,” he said.
RE-Gen LLC of Rockport announced plans late last month to create as many as 150 jobs in five years with a $20 million biomass furnace factory at the Huber Industrial Park in Millinocket that the company hopes to build next year. The 50,000-square-foot factory would employ welders, fabricators, service technicians and administrators to build Italian-designed, enviro-friendly biomass gasification furnaces capable of generating 700,000 to 5 million Btu.
The units would be large and efficient enough to heat schools, hospitals and office and apartment buildings for a fraction of the cost it takes to heat with No. 2 heating oil. Woodsmen would provide the very low-grade green waste wood chips (up to 80 percent moisture) that would burn in the ultra-high heat furnaces.
Another promising technology is at Old Town Fuel and Fiber, which will produce wood pulp for the papermaking industry and work closely with UMaine researchers to develop new technologies for converting pulp-processing waste into renewable biofuel.
Still on the drawing board: cellulose nanocomposites that break wood down to its nanostructure, and bioextractive technologies that use trees to produce base green chemicals that can be used in a number of applications, such as pharmaceuticals and bioresins. “The research we have done at the university is very positive,” Dagher said.
“The recession will not end tomorrow, but we don’t see the paper industry going away,” Cote said. “I think that the forest products industry continues to be resilient. If any industry can fight tough times and withstand downturns, this one can.”
The Canadian Press contributed to this report.
CURRAN SHIPS ITS FIRST PELLETS
FUEL FROM WOOD: Massena plant, working out kinks, seeks production boost
By LORI SHULL
TIMES STAFF WRITER
SUNDAY, JULY 12, 2009
ARTICLE OPTIONS
MASSENA — After months of waiting, wood pellets slowly are beginning to come out of the Curran Renewable Energy plant.
Production was scheduled to begin in January, but it took longer to get the facilities up and running than expected, according to Patrick J. Curran, owner of Curran Renewable and Seaway Timber Harvesting.
The company's first pellets came off the line last week and were shipped to Quebec to be sold. The next day, the plant had to be shut down to work out some kinks, Mr. Curran said.
"We are producing pellets," he said. "I'm actually hoping at the end of this month we'll be running. Chances are we can get this thing running pretty good."
At full capacity, the plant will be able to produce as many as 14 tons of pellets an hour. Most of the time, it will be producing well over 8 tons an hour, according to Mr. Curran.
While 500,000-ton-a-year wood pellet plants are springing up in the South to meet the demand of European utility companies, Mr. Curran said he plans to sell his pellets in North America.
"I looked into exporting to Europe before we ever began building the plant," he said. "It just doesn't make sense. We are a nation that wants to go green and it doesn't make sense to export green energy."
His pellets will be sold in the region, and local people are being put to work making them.
Curran Renewable has 10 employees. Mr. Curran said that once things are running seamlessly, there are likely to be more, although he could not estimate how many more.
Originally, Mr. Curran was supposed to receive Empire Zone benefits from the state if he created enough jobs. However, after guidelines for inclusion in the program changed last year, Curran Renewable failed to qualify in March. Mr. Curran's business would not provide enough revenue for every dollar of tax benefits from the state, nor would it create enough jobs.
The St. Lawrence County Industrial Development Agency has agreed to give the fledgling company tax benefits.
Under the agreement, the company will not pay property taxes for the first five years, then will pay only half of the taxes normally due for the next five years.
Despite losing state benefits, Mr. Curran said, he hopes to expand the business enough to be able to hire enough people to have the plant running three shifts a day.
"I'm going to hire as many people as I need," he said. "Providing the market is there, and I think it is, it'll be a pretty good opportunity for hours."
In addition to generating revenue, Mr. Curran said, the main purpose in opening the wood pellet business is to ensure that his workers at Seaway Timber Harvesting stay employed. Several, though he would not say how many, of his workers are laid off, and he wants to bring them back on the job. Seaway's staff will chop down trees to bring to the pellet-processing plant to keep that portion of the business running, he said.
As much as possible, Seaway Timber will be cutting down trees from forests that are certified by the Rainforest Alliance Program to be responsibly managed, meaning the forestry operations are in keeping with environmental and international regulations.
"We can't take every single bit of wood we harvest as (certified)," Mr. Curran said. "I'm going to purposely try to go after that fiber so our products can be sold as certified."
NOT ENOUGH WOOD PELLETS
Monday, July 13, 2009 More From The Press-Register 2009 Alabama Live LLC. All Rights Reserved.
IT'S NICE to hear that one industry in Alabama might benefit from the anti-global warming legislation pending in Congress.
An Auburn University forestry expert said last week the state's timber industry could get a shot in the arm from the "cap-and-trade" bill, which would effectively tax carbon emissions and promote so-called green energy. Larry Teeter told the state Forestry Study Committee that "bioenergy might be the quickest cure for elements of the forest-products industry."
President Obama and his allies in the environmental movement like renewable energy sources like wood pellets and other forest products. They don't like the state's primary en ergy source — coal — and they mean to slowly tax coal-fired power plants out of existence.
The problem for Alabama, aside from, perhaps, the timber industry, is that cap-and-trade will put a cap on the state's economic growth by raising energy prices and eliminating jobs. Cap-and-trade's negative impact on the state explains why an unusual coalition of business and labor officials has formed to oppose the legislation.
The business-labor group estimates the cap-and-trade bill eventually would raise utility bills for residential customers and industries by more than $800 million a year. It would take a heckuva lot of wood pellets to make up for that crushing blow to the Alabama economy.
More investment as companies turn to wood pellets for energy
Benget Besalicto Tnb. , The Jakarta Post , Jakarta | Tue, 07/14/2009 10:12 AM | Business
As more businesses adopt environmentally friendly practices, demand for wood pellets as a source of renewable fuel is on the rise, a senior government official has said.
Hadi Daryanto, the director general for development of forest production at the Forestry Ministry, said recently that demand was being propped up by the increasing number of companies engaging
in the profitable carbon trading business.
“Demand will continue to rise and that’s why the wood pellet business is very promising,” he told The Jakarta Post.
Based on data from Wood Resources Quarterly, the latest market report released by international consulting company Wood Resources International, world production of wood pellets reached almost 10 million tons last year.
The company forecasts that total production will double in the next five years as more companies adopt green business practices and fossil fuel prices increase.
Europe is currently the biggest market for the wood pellets, which are mostly supplied by Canada. But as market in the United State surges due to the greener policies adopted by the Obama administration, the US will buy more wood pellets, taking supply from Europe.
As a result, the report said, Europe will seek other Asian, African, and Latin American sources.
A number of companies have reportedly sought renewable investment opportunities in the regions, particularly in Asia.
Hadi noted that Carbon Positive, a private company from the United Kingdom, has set up a joint venture with PT Usaha Tani Lestari, pledging to invest about Rp 1.8 trillion (US$176 million) to develop the renewable energy in Indonesia.
“They plan to develop about 160,000 hectares of production forests in West Nusa Tengara, East Nusa Tenggara and Papua. Their wood production from the forests will feed their wood-processing plant that they will build later,” he said.
Other foreign investors are attracted to Indonesia’s wood pellet industry, Hadi said. On of them is Korean based PT Taiyoung Engreen, which has pledged to invest Rp 3.9 trillion to develop production forests and wood pellet plants in Gunung Mas, Central Kalimantan, pending government approval.
“I think with such appeals, we’ll see more and more companies involved in forest-related green industries,” he said.
AIR PANEL PLANS WORKSHOPS ON TOUGHER FIREPLACE BURNING RULES
By Marissa Lang The Sacramento Bee
Published: Monday, Jul. 13, 2009 - 12:00 am | Page 1B
Fireplaces and wood-burning stoves may be the last thing on most people's minds in July, but that's just what city officials want the public to start thinking about.
Come November, if you live in the area, you may be dealing with a newer, stricter set of rules when it comes to burning wood.
The Sacramento Metropolitan Air Quality Management District is proposing an overhaul to Rule 421, which limits the use of wood-burning stoves and fireplaces during the winter months on bad air days.
Starting this week, air quality officials will launch a series of five open forums where they will present the proposed changes. The air quality board wants people to weigh in with their comments and recommendations.
"With the current rule, we still have too many unhealthy days," said program supervisor Aleta Kennard.
"At these forums, we'll lay out what we've done with our analysis and what we're considering to change, and give the public an opportunity to respond."
The district wants to revamp its system, which currently allows some exceptions for burning on bad air days. It wants to create a program in which all burning would be prohibited – regardless of the type of stove or the material being burned.
Currently, Stage 1 of the "Check Before You Burn" program bans the use of fireplaces and wood-burning stoves, unless they are pellet stoves or U.S. Environmental Protection Agency-certified fireplace inserts or stoves. On Stage 2 days, burning any solid fuel, including wood, synthetic logs and pellets, is illegal.
"On a no-burn day you get a 22 percent reduction in particulate emission, while on a Stage 1 day, when you have exceptions, you only get about a 10 percent reduction," Kennard said.
Rather than a districtwide ban on all burning on those days, some retailers suggest that the district should focus on getting residents to use more environmentally friendly devices.
Mitchell Heller, owner of Custom Fireside, said the city is approaching the issue the wrong way.
He said government should crack down on open fireplaces, providing incentives for residents to use wood pellets or EPA-approved fireplace inserts or stoves.
"I'm not supporting this, because there are two options that they don't have on the table," Heller said. "One, leave the current system we have in place; or two, enact more severe restrictions and rules on open fireplaces, which will make people put in EPA or pellet stoves."
Heller said his customers are required by law to purchase EPA-certified inserts or pellet stoves. The clean-burning appliances emit from 2 to 7 grams of smoke per hour, while uncertified devices emit 60 to 80 grams of smoke per hour.
During the winter, wood smoke combined with calm weather conditions in Sacramento can make the air extremely unhealthy and potentially dangerous, said Brigette Tollstrup, the air quality district's division manager.
"When you burn, you emit particulates," Tollstrup said. "And in the wintertime, we get those calm cool nights where … the smoke gets trapped low to the ground, causing really bad air."
Officials say exposure to air laden with smoke particulates worsens existing asthma, increases the likelihood of stroke and heart attacks in postmenopausal women, causes chronic bronchitis, and poses a particular threat to children, who take in more air in relation to their size than adults do.
In addition to particulate problems, Sacramento is also ranked seventh-worst in the nation for ozone pollution, according to the American Lung Association.
The air board declares an average of 23 no-burn days per season.
Air quality officials said that if their proposal is approved, the number of complete no-burn days could increase to 31.
That, they said, would ultimately lead to more clean-air days in the future.
DOE, TREASURY PROVIDE GUIDANCE ON DIRECT PAYMENTS FOR RENEWABLE PROJECTS
DOE and the U.S. Department of Treasury issued guidance last week on the process for renewable energy project owners to receive direct federal payments in lieu of tax credits. Most large renewable energy projects are eligible to receive federal tax credits, and prior to the economic downturn, it was common for such projects to receive financing from third parties that would benefit from the tax credits. But with most companies now earning lower profits and expecting to pay lower taxes, that tax-credit financing has dried up, making it more difficult to take advantage of the tax credits. To address that issue, the American Recovery and Reinvestment Act authorized the Treasury Department to make direct payments to companies that create renewable energy facilities and place the facilities in service on or after January 1, 2009. See the February 18 article from this newsletter on this aspect of the Recovery Act.
The Treasury Department has set aside $3 billion in Recovery Act funds for the direct payments, sufficient to support an estimated 5,000 facilities using biomass energy, solar energy, wind power, and other types of renewable energy. The agency is not yet accepting applications for the direct payments, but by releasing the guidance documents now, the Treasury Department aims to give businesses ample time to prepare their applications. The agency intends to launch a Web-based application process in the coming weeks. See the DOE press release and the terms and conditions, guidance, and a sample application for the direct payments on the Treasury Department Web site.
PELLETS START SHIPPING FROM UPSTATE N.Y. PLANT
IN THERMAL NEWS > FYI
BY AER STAFF ON WEDNESDAY 15 JULY 2009
After months of delay, the Curran Renewable Energy plant in Massena, N.Y., has begun shipping its first output of wood pellets.
The Watertown Daily Times reports that production from the plant was originally scheduled to begin in January, but problems in getting the facility ready delayed operations until this month. The first wood-pellet shipments rolled out of the plant last week for a Quebec client. However, the plant had to be shut down the following day.
"We are producing pellets," says Patrick J. Curran, owner of Curran Renewable and Seaway Timber Harvesting. "I'm actually hoping that at the end of this month, we'll be running. Chances are, we can get this thing running pretty good."
SOURCE: Watertown Daily Times
Wood pellet plant on hold now
By Jim Cox Editor & Publisher
Clarke County's economic developer said the poor economy had stalled the new wood pellet plant to be built in Jackson but she told commissioners Tuesday that she is still hopeful that the facility will be built. Debra Bolen said, "The Dixie Green wood pellet plant has been put on hold.
$118 MILLION WOOD PELLET PLANT IN JACKSON IN LIMBO
Thursday, July 16, 2009
By JEFF AMY
Business Reporter
A proposed wood pellet plant in Jackson, Ala., has been indefinitely delayed, as owners have yet to raise the $118 million needed to build the 100-job project, said Debra Bolen, executive director of the Clarke County Economic Development Partnership.
"It is still in an ongoing state, it's just that construction has not begun," she said Wednesday. "It's my understanding they're still working on the financing."
Evan Bates, the chief executive of New Gas Concepts, could not be reached for comment Wednesday.
The worldwide financial crisis crippled the borrowing ability of many businesses beginning last fall. Bolen said there's no new date set for building to begin.
The plant would make 600,000 tons of pellets a year from sawdust, wood chips, branches and other leftovers from sawmills and loggers.
European power companies are burning pellets in an attempt to cut carbon dioxide emissions, and a number of pellet mills have been built or proposed in the Southeast to feed Europe's growing demand.
New Gas Concepts Inc. announced its plans in February 2008. Since then, the site has been cleared and graded using a $500,000 loan from the city of Jackson and part of a $500,000 grant from the Alabama Department of Economic and Community Affairs, said Bolen and Jeff Miller, Jackson city administrator.
Plans have been drawn for an access road and water and sewer connections to the site off Alabama 177 on Jackson's south side, Bolen said.
New Gas Concepts also led the construction of the $75 million Dixie Pellets plant in Selma. That plant was financed in part by a $70 million, 18-month loan from an arm of French bank Credit Agricole SA, according to a July 2008 statement by the bank.
Bates told the Clarke County Democrat last year that New Gas Concepts had sold its interest in the Selma mill.
Harbert Power Fund III, an investment fund managed by Harbert Management Corp. of Birmingham, owned 86 percent of the Selma plant as of Dec. 31, 2008, according to Harbert Management's annual report. Harbert could not be reached Wednesday.
New Gas Concepts had sought to lease a warehouse at the state docks in Mobile for 10 years at $480,000 a year. Alabama State Port Authority directors approved the lease in January, but New Gas Concepts never moved forward and docks spokeswoman Judith Adams said officials haven't heard from the company in four months.
PLANTATION ENERGY SECURES GREEN ENERGY EXPORT CONTRACT
17 July 2009
Plantation Energy, Australia’s largest manufacturer and exporter of wood pellets, has signed a three-year AUD 60 million (€34 million) supply agreement with Essent Trading, an international merchant energy trading company based in Switzerland.
The agreement between Plantation Energy and Essent Trading comes only days after the company announced its first export deal, with Electrabel, a subsidiary of GdF-Suez, Europe’s largest power company.
Plantation Energy manufactures and exports clean renewable energy in the form of wood pellets made from non-commercial plantation forest residues. Initial exports will be shipped from Albany, Western Australia, where the first of several planned pellet manufacturing facilities is already in operation.
Wood pellets are used extensively in Europe, where they are burned with coal in coal-fired power stations. Demand for pellets exceeded 8 million tonnes in 2008 and is expected to top 16 million tonnes by 2014.
Plantation Energy is backed by leading US-based global private equity firm Denham Capital, which in October 2008 announced an equity investment of up to US$ 80 million in the company.
Saturday, July 18, 2001909
Volume 21, Issue 29
ORR PURSUES WOOD-PELLET MANUFACTURER
By Tom Klein
Orr councilors okayed preliminary work to bring a wood pellet producer and as many as 60 jobs to Orr.
Councilors agreed Monday to contract with Short Elliott Hendrickson Inc. (SEH) for the services, which will include identifying permit requirements, developing a project schedule, evaluating potential sites for the plant and seeking funding for the project. Cost for SEH’s services will be $5,000 with additional fees if SEH proceeds on applications for funds.
The project was brought to the Orr City Council’s table by the city’s Economic Development Council, which has done some legwork already investigating the project’s viability, including a visit to the developer’s operation in Grand Rapids.
According to EDC member Bill Arthur, the developer wants to expand his operations to respond to growing demand for wood pellets. The plant would also produce animal bedding material. Orr Mayor Dale, who is also on the EDC, said an estimated 35 jobs would be created at the pellet plant and another 25 jobs would be added at a related sawmill.
Arthur said the project had reached a point where expert analysis was required.
SEH economic development specialist Mike Larson, who spent more than 25 years with the Iron Range Resources agency, said the work performed by SEH would help prepare Orr for the project if it proceeds, but also provide valuable information that could be utilized for other development projects should this not move forward.
Both Brian Bruns and Doran Klakoski urged the council to proceed, noting that a delay could lose an opportunity for Orr.
Although councilors initially discussed proceeding only with the first phase of project planning at a cost of $1,000, Arthur urged the council to approve all three stages, noting that there would be an overlap of tasks and it would position the city to respond more quickly if the project moves forward. He added that if any red flags emerged during the process, the work could be stopped.
“We’ve got a nice tailwind on this project,” said Arthur, in urging the council to act.
Councilors approved the contract with SEH on a 3-0 vote with councilors Bruce Black and Ericka Cote absent. Councilor Jon Long requested that SEH provide monthly updates on its work, which Larson agreed to do.
In the meantime, the EDC will continue its investigation of the project’s viability with assistance from the Iron Range Resources agency. The IRR may also be able to provide some funds to assist with the city’s preliminary work on the project.
GREEN CIRCLE BIO ENERGY REFLECTS ON ONE YEAR IN BUSINESS
July 19, 2009 10:15:00 AM
By DANIEL CARSON / News Herald Writer
The News Herald - Panama City,FL,USA
STEELE CITY — Greg Martin has worked in the pulp and paper industry for almost 30 years, and he said that any new plant goes through tweaks and refininements of its production processes as it gets up to speed.
It has been a little more than a year since Green Circle Bio Energy opened its 225-acre wood pellet plant, touted as the world’s largest, in Jackson County.
After working through some early kinks, the plant is steadily moving toward full capacity, said Martin, who has worked as the plant manager at Green Circle’s Steele City facility since January.
"We’re kind of settling in for the long haul," he added.
Reaching full capacity
Olaf Roed, Green Circle President and CEO, said the plant currently produces pellets at a rate of 400,000 metric tons per year.
"We are on track to reach full capacity by the end of the year." Roed said.
Full capacity for the plant is 500,000 metric wood pellet tons.
A view from the plant’s peak, at 200 feet one of the highest points in Jackson County, reveals row after row of harvested trees, towering piles of bark and wood chips, and room for possible expansion inside Green Circle’s expansive site.
As the world’s largest wood pellet production plant, the Green Circle plant takes in 150 truck loads of wood a day to keep the pellets flowing to Port Panama City and, ultimately, to Europe.
Martin said the Green Circle plant has a core group of 8 to 10 wood suppliers, with the majority of its wood coming from a 50-mile radius.
He said that a tall stick of wood enters the Steele City facility on the back of a truck and it takes about 10 days to debark, chip, dry and pulverize a single tree into wood pellets.
The company, a subsidiary of Swedish corporation JCE Group AB, chose Jackson County as the site for its production plant in February 2007.
After preliminary testing, the plant started production in April 2008, with the 225-acre facility being touted as a new green industry for the region and an economic development boost for Jackson County.
Jackson County Administrator Ted Lakey said that, overall, the plant had exceeded the county’s expectations.
Lakey said he was sure the plant had also helped local logging and timber companies.
"It’s created a market for their trees," Lakey said.
Jackson County Development Council executive director Bill Stanton estimated that the plant’s opening had created about 150-to-200 new jobs in the region, with support industries like timber and trucking gaining the most from Green Circle’s operation.
‘A nice percentage’
Stanton noted that Jackson County is not the only Northwest Florida county reaping the benefits from Green Circle’s plant.
"Panama City and Bay County are getting a nice percentage of it," Stanton said.
Green Circle and Port Panama City officials reached an agreement in 2006 where the port agreed to build a multi-million dollar, 80,000-square-foot storage warehouse for the pellets.
The company initially guaranteed it would ship at least 350,000 pellet tons annually, although Green Circle and the port amended their contract in October 2008 and agreed to calculate their wood pellet volumes on a May 1 to April 30 annual timetable.
Port executive director Wayne Stubbs estimated that the wood pellet trade had generated $1.75 million in revenues for the port during the first contract year.
The pellet-related revenue has come in handy, Stubbs said, as the port faces a general cargo slowdown created by the recessionary global economy.
Stubbs said that the port’s general cargo numbers, which included copper, paper, containers and steel, were down 20 percent from the same time period in 2008.
Money generated from the wood pellet traffic produced about 15 percent of the port’s revenues from May 2008 to May 2009, Stubbs said.
"I think it’s worked out. It’s had some challenges," Stubbs said, adding, "We’re really happy to be where we are in this new trade."
Since the port opened its pellet warehouse, its main challenge has involved controlling dust created by the wood, Stubbs said.
Inquiries about the warehouse have come from businesses interested in exporting wood and peanut shell pellets to Europe, Stubbs said, as well as from other ports and terminal operators exploring the feasibility of building their own storage warehouses.
"It seems our facility is considered a state-of-the-art facility for wood pellets at this point," Stubbs said.
Martin said the Steele City plant has generated its fair share of international media interest, with visits to the facility ranging from a Korean television documentary crew to the Wall Street Journal.
Stanton said the plant’s arrival in Jackson County had also raised the county’s profile with various business interests.
"I can’t begin to tell you how much activity we’ve developed as a direct result of that project," Stanton said.
MAINE WOOD PELLET PLANT PLANNED
July 20, 2009 05:45 EDT
2009, Sinclair Broadcasting Group, Inc.
PORTLAND, Maine (AP) -- Gov. John Baldacci will attend the announcement of plans for a wood pellet manufacturing plant to be built in Burnham.
International WoodFuels of Portland says its plant will create up to 35 new jobs and produce up to 100,000 tons of premium pellets annually. The company says it wants to help to reduce the consumption of imported fossil fuels for large facilities throughout New England through renewable energy.
The announcement of plans for the wood pellet plant will be Tuesday in Portland.
WOOD STOVES -- A VIABLE HOME HEAT SOURCE?
Thank you Ms Linda Limback for this story: Research Coordinator State Energy Office MN Office of Energy Security
ScienceDaily (July 16, 2009) — The stress of rising natural gas prices is leading many consumers to rethink how they heat their homes. For some this means moving towards modern alternative energy options, while others have been turning to a more traditional method for a solution to these rising costs. In Canada and the United States, wood burning stoves have been reevaluated as a potentially viable option for home heating.
________________________________________
The case for modern woodstoves has developed with the improvement of the products on the market, as wood heating technology has substantially advanced in recent years. With the advanced secondary combustion systems on Environmental Protection Agency certified woodstoves, they are now 95% more efficient than their predecessors.
Dr. Paul Grogan, a plant and ecosystem ecologist and Canadian Research Chair (II) at Queen's University in Kingston, Ontario conducted a case study on the benefits of woodstoves with the help of final-year undergraduate and first year graduate students. He determined that adding a woodstove to the home can help both consumers heating costs as well as the environment. The results were published in the latest edition of the Journal of Natural Resources and Life Sciences Education.
The environmental sustainability of woodstove use is dependent upon the consumption of wood from sustainably managed woodlots, as the carbon released is reused as the next generation of trees grows. Annual gross CO2 emissions did in fact increase from 12,610 kg (i.e., ~2.5 metric tons CO2/person per year) to 17,330 kg after the installation of the wood stove. But while this gross amount did increase, the net carbon released by the combustion is negligible, the only surplus coming from the harvest and transport. Based on an average growing time of 130 years before harvest for local Ontario tree species, a woodlot or forest 3.5 hectares in size would provide an indefinite supply of wood heat for a household without a net increase in carbon emissions.
In the case study, adding a woodstove to the ground floor of a 3200ft2 home reduced the mean annual gas cost by 60%; from $2260 to $880. The annual cost of the wood fuel for the woodstove amounted to $1330 for 5 full cords (a cord is 8 feet long by 4 feet high by 4 feet wide - 128ft3 ). This was a yearly savings of $50 at market fossil fuel prices of 2005-2007 without taking into account rising fossil fuel prices or the impending carbon tax. Should these variables come into play Dr. Grogan estimated that the domestic heating costs would be reduced by 25%. This translates into a potential savings of $920 in the first 3 years.
________________________________________
Adapted from materials provided by American Society of Agronomy, via EurekAlert!, a service of AAAS.
PELLET PLANT IN WORKS PORTLAND MAINE
BY TUX TURKEL
Portland Press Herald 07/21/2009
A Portland company will discuss its plans this morning to build a $20 million wood pellet manufacturing plant that will help keep the world's largest wooden golf tee factory operating in Maine.
International WoodFuels LLC expects to break ground in September for a 100,000-ton-per-year pellet plant next to Pride Manufacturing Co. LLC in Burnham, south of Pittsfield.
Further details are expected at a news conference to be held at the Ocean Gateway building in Portland.
The partnership will have multiple benefits. It will help save 145 existing jobs at a wood-products firm that has operated in the state since 1956. It also will create 35 new jobs in the renewable energy field, producing a home-grown fuel aimed at loosening the state's dependence on imported oil. Additional jobs are likely to be created in logging and trucking.
The wood pellets are expected to be sold locally to meet growing demand, according to Steven Mueller, the president of International WoodFuels.
"There's not a single pellet made in my plant that will leave the state of Maine," Mueller said.
The plant's start-up is scheduled for next June. It will be the fifth wood pellet plant built in Maine. Wood will be harvested in a sustainable manner and trucked from within a two-hour drive of Burnham. The company will need 200,000 tons a year of whole logs to operate the pellet mill at full capacity.
That tonnage is roughly five times greater than what's now coming into Pride Manufacturing. The added volume, and the sharing of a log yard, for instance, will help Pride save money on wood purchasing. The savings are important, according to Randy Dicker, senior director of manufacturing at Pride, because the company's profitability has been undermined in recent years by a flood of imported golf tees from China.
"The synergies this opportunity creates will allow us to remain in central Maine for years to come," Dicker said.
Pride moved from Florida to Maine in 1956, first making wooden cigar tips. The tips are still part of the business, but the dominant product is golf tees made from white birch and white maple -- hundreds of millions a year.
"This is going to strengthen a business that has a long history in Maine," Dicker said.
International WoodFuels and Pride were brought together by Maine & Co., the private corporation that helps companies that want to grow or locate in the state.
"It seemed that there was an opportunity for someone who could use the scrap wood that Pride was providing," said Matt Jacobson, Maine & Co.'s president.
Jacobson, who is running for governor in 2010, said co-locating companies that can help each other save money is an important business strategy that can be duplicated elsewhere.
"If people can keep their jobs and be more efficient, that's how Maine is going to go forward and be more competitive," he said.
Some of the pellets from the plant eventually will be used to help heat space and water at the high school in MSAD 61, which includes Naples, Bridgton, Casco and Sebago.
In a broad sense, the construction of a fifth pellet plant in Maine will diversify supply and offer a broader selection, said William Strauss, an economist and member of the Maine Pellet Fuels Association. The plant also will help supply what Strauss sees as a growing market for wood pellets.
"I believe there's plenty of demand," he said.
MITSUBISHI CORPORATION PARTICIPATES IN THE EUROPEAN BIO-PELLET MARKET
By admin on Thng By 20, 2009
Tokyo, Sept 24, 2008 (JCN Newswire) Mitsubishi Corporation (MC) has acquired 45% of Vis Nova Trading GmbH (VNT), a German company and major player in the bio-pellet business. With this acquisition, MC hasmade a strong commitment to the European bio- pellets market, which is expected to growrapidly in the near future.
Bio-pellets are a kind of carbon neutral fuel, made from unused biomass, such as woodchips. The biomass is compressed and molded into small, cylindrical pellets. Co-firing with bio-pellets and thermal coal has proved effective in reducing CO2 emissions at coal-fired power stations. With an aim to combat global warming, the EU has committed to raising the proportion of power generated by renewable energies to 20% by 2020 (for thewhole of the EU). At present, each country generates around 5-15% of its power throughrenewable energy. The bio-pellet market has seen annual growth of around 20% over thelast few years. In 2020, the demand for bio-pellets is expected to increase from its currentsix million tons, to over 40 million tons.
VNT owns and operates a manufacturing facility that produces some 120,000 tons of the pellets per year, as well as several distribution bases in Germany. Each year VNT supplies about 180,000 tons of the pellets, mainly to electric power companies in the EU. VNT plans to build a few other factories, aiming to reach 500,000 tons in sales and establish a production system in Germany by 2010.
MC invested 5.625 million euros (equivalent to 45% of VNT shares) and intends to be
actively involved in the companys management. MC will contribute to VNT as a partner and cooperate on the planning, financing, and marketing to expand the bio-pellet business. In the future, MC hopes to see VNT develop into a benchmark supplier of bio pellets within the European market.
In addition, MC foresees potential pellet demand in Japan, and has established Forest Energy HITA Co, Ltd., and Forest Energy Kadogawa Co, Ltd., pellet manufacturers in Ooita and Miyazaki respectively, each with an yearly output of 25,000 tons. In this fashion, MC is promoting the bio-pellet business in Japan and placing VNT at the core of this business in Europe. Anticipating significant global growth in this renewable energy field, MC also plans to set up bio-pellet manufacturing plants in North America, South America, and Asia, creating a truly worldwide supply network. The companys aggressive push should prove a very positive effort to stem global warming.
Outline of the company
Company name: VIS NOVA Trading GmbH
Head office: Bremen, Germany
Share ratio: VIS NOVA GmbH 55%Mitsubishi Corporation 45%
Business: trading and manufacturing for wood pellet
Sales: 180,000 tons p.a.
Subsidiary: Holzkontor und Pelletierwerk Schwedt GmbH(HPS)
About Mitsubishi Corporation
Mitsubishi Corporation (TSE: 8058; ADR: MSBHY) is Japans largest general trading company (sogo shosha) with over 200 bases of operations in approximately 80 countries worldwide. Together with its over 500 group companies, Mitsubishi Corporation employs a multinational workforce approximately 55,000 people. The Group has long been engaged in business with customers around the world in virtually every industry, including energy, metals, machinery, chemicals, food and general merchandise. Mitsubishi Corporations commitment to social responsibility is embodied in its corporate philosophy and demonstrated through its extensive programme of cultural, environmental and educational projects worldwide. For more information, please visit www.mitsubishicorp.com .
NEW YORK MUSEUM INSTALLS WOOD-PELLET BIG BOILER
IN THERMAL NEWS > PROJECTS
BY AER STAFF ON FRIDAY 24 JULY 2009
The Wild Center, a museum located in Tupper Lake, N.Y., has announced that it will install a wood-pellet boiler integrated with a solar tube hot water system that will supply much of the hot water required to heat its 54,000 square-foot facility.
According to the museum, the new boiler system will represent the first commercial-sized, gasification wood-pellet boiler of its kind and size manufactured and installed in New York state. The 1.7 million Btu boiler unit will be in The Wild Center's basement boiler room, next to its existing propane boiler. The pellets will be stored in an outdoor container next to the administration wing of the museum.
"This innovative renewable heating and hot water system dovetails perfectly with The Wild Center's Silver LEED certification," says Chris Rdzanek, manager of museum facilities. "From the museum's inception, green building practices have been at the forefront of every decision that we make."
SOURCE: The Wild Center
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Saturday, July 25, 2009
Monday, July 6, 2009
Iowa, Minnesota and Michigan get funding today! July 06-09
Obama Administration Delivers More than $288 Million for Weatherization Programs in Seven States
July 06, 2009
U.S. Department of Energy Secretary Steven Chu today announced that the DOE is providing more than $288 million in Recovery Act funding to expand weatherization assistance programs in Arkansas, Iowa, Kentucky, Massachusetts, Michigan, Minnesota, and New Hampshire. These funds, along with additional funds to be disbursed after the states meet certain Recovery Act milestones, will help these states achieve their goal of weatherizing more than 91,000 homes, lowering energy costs for low-income families that need it, reducing greenhouse gas emissions, and creating green jobs across the country.
Arkansas, Iowa, Kentucky, Massachusetts, Michigan, Minnesota, and New Hampshire will receive 40% of their total weatherization funding authorized under the American Recovery and Reinvestment Act today. This installment adds to the initial 10% of the states' funding allocations that were awarded previously for training and ramp-up activities. Under the Recovery Act, the states may spend up to 20% of the funds to hire and train workers.
"These awards demonstrate the Obama Administration's strong commitment to moving quickly as part of the country's economic recovery—creating jobs and doing important work for the American people—while ensuring that taxpayer dollars are spent responsibly," said Secretary Chu. "Today's investments will save money for hard working families, reduce pollution, strengthen local economies, and help move America toward a clean energy future."
DOE's Weatherization Assistance Program will be available to families making up to 200% of the federal poverty level—or about $44,000 a year for a family of four. Weatherization projects allow low-income families to save money by making their homes more energy efficient, which results in average savings of 32% for heating bills and savings of hundreds of dollars per year on overall energy bills. States will spend an average of $6,500 to weatherize each home.
The funding allocations for the Weatherization Assistance Program follow a stage-gate process: on March 12 funding allocations by state were announced and the initial 10% of total funding was available to states and territories to support planning and ramp-up activities; comprehensive state applications were due on May 12; following a DOE reviews for each state, 40% allocations are awarded; and the remaining 50% of funds will be released when states meet reporting, oversight, and accountability milestones required by the Recovery Act.
The Recovery Act includes a strong commitment to oversight and accountability, while emphasizing the necessity of rapidly awarding funds to help create new jobs and stimulate local economies.
The seven states receiving funds today submitted aggressive and innovative plans to expand their weatherization programs:
ARKANSAS – $19. 2 Million Awarded Today
Arkansas will use its Recovery Act funding to weatherize more than 6,000 homes over the next three years. The Arkansas Office of Community Services (OCS) will administer the program with 15 local organizations to provide weatherization assistance to all 75 counties across the state. These organizations, consisting of community action groups, development councils and other nonprofits, will also conduct energy audits and re-weatherization services for 500 additional housing units. This program will help to reduce energy consumption and energy bills for low-income households, while creating jobs within the state.
The Recovery Act funding will also provide training and technical assistance to the community organizations. Through the state's training and technical assistance program, these organizations will be kept abreast of new weatherization techniques and methods.
After demonstrating successful implementation of its plan, the state will receive over $24 million in additional funding, for a total of more than $48 million.
IOWA – $32.3 Million Awarded Today
Iowa will use its Recovery Act funds to weatherize more than 7,200 homes over the next three years. Approximately 18 agencies are involved in carrying out the weatherization work, including the Hawkeye Area Community Action Program, Mid-Iowa Community Action, and the Polk County Board of Supervisors. The community action agencies will submit monthly reports to ensure transparency and accountability. In order to increase public awareness of the weatherization program and the savings that go with reduced energy use, Clean Energy Education Savings Guides developed by the Iowa Weatherization Program will be distributed to clients' homes.
After demonstrating successful implementation of its plan, the state will receive an additional $40 million, for a total of more than $80 million.
KENTUCKY – $28.3 Million Awarded Today
Kentucky will use its Recovery Act funds to weatherize more than 8,900 homes over the next three years. The state will give priority to households with children under six years of age, and those homes where the housing conditions are substandard and the children are at a risk of being removed from the family. The state will also prioritize homes with elderly and disabled family members and low-income households that spend a disproportionate amount of their income on energy costs, along with those households that use the highest cost fuels for the amount of energy provided. The program will also analyze the primary fuel type used in the household, with homes heated with electricity receiving a higher priority than those that use coal.
After demonstrating successful implementation of its plan, the state will receive an additional $35 million, for a total of more than $70 million.
MASSACHUSETTS – $48.8 Million Awarded Today
Massachusetts will use its Recovery Act funds to weatherize more than 16,900 homes over the next three years, while ramping up a Clean Energy Center to train and support a growing energy-efficiency workforce in the state. Under the program, Massachusetts is increasing the number of auditors and other professionals that will be needed to meet the increased demand for weatherization activities. More than 25 additional auditors have already been hired, along with new private-sector employees that will work with local organizations responsible for weatherization work.
After demonstrating successful implementation of its plan, the state will receive an additional $61 million, for a total of more than $122 million.
MICHIGAN –$97.3 Million Awarded Today
Michigan will use funding from the Recovery Act to provide weatherization assistance to more than 33,000 homes over the next three years. The Michigan weatherization program, administered by the Department of Human Services, will provide home energy audits and weatherization activities that will lower energy consumption and utility bills in low-income homes across the state. Each home will receive a unique audit to determine which activities are the most cost effective. Some of the most common weatherization procedures include the repair, insulation, and sealing of ducts and the installation of insulation in walls and attics. Weatherization funds can also be used to install energy efficient compact fluorescent light bulbs and replace energy consuming refrigerators and water heaters.
After demonstrating successful implementation of its plan, the state will receive over $121 million in additional funding, for a total of more than $243 million.
MINNESOTA – $52.7 Million Awarded Today
Minnesota will use its Recovery Act funding to weatherize more than 16,800 households over the next three years. Weatherization is a strong tool to minimize the effects of the state's climate for residents, who face harsh polar air and extreme temperatures throughout the year. The state's Department of Commerce will administer the program and over 30 community action groups throughout the state will provide weatherization services in local areas with the largest groups located in Minneapolis and in Ramsey and Washington Counties. All organizations that implement the work are provided training and technical assistance workshops and conferences focused on maximizing energy savings and minimizing program costs. The funding will also be used to support the state's energy crisis plan that assists low-income households with weatherization services in the event of a disaster.
NEW HAMPSHIRE - $9.3 Million Awarded Today
New Hampshire will utilize Recovery Act funding to help create new job opportunities and workforce development through the implementation of its weatherization assistance program and increased demand for weatherization professionals. The New Hampshire program will provide weatherization assistance to over 2,600 low-income households over the next three years. The New Hampshire Office of Energy and Planning will administer the program, and subcontract to six community action agencies that will deliver weatherization services at the local level.
After demonstrating successful implementation of its plan, the state will receive over $11.5 million in additional funding,
July 06, 2009
U.S. Department of Energy Secretary Steven Chu today announced that the DOE is providing more than $288 million in Recovery Act funding to expand weatherization assistance programs in Arkansas, Iowa, Kentucky, Massachusetts, Michigan, Minnesota, and New Hampshire. These funds, along with additional funds to be disbursed after the states meet certain Recovery Act milestones, will help these states achieve their goal of weatherizing more than 91,000 homes, lowering energy costs for low-income families that need it, reducing greenhouse gas emissions, and creating green jobs across the country.
Arkansas, Iowa, Kentucky, Massachusetts, Michigan, Minnesota, and New Hampshire will receive 40% of their total weatherization funding authorized under the American Recovery and Reinvestment Act today. This installment adds to the initial 10% of the states' funding allocations that were awarded previously for training and ramp-up activities. Under the Recovery Act, the states may spend up to 20% of the funds to hire and train workers.
"These awards demonstrate the Obama Administration's strong commitment to moving quickly as part of the country's economic recovery—creating jobs and doing important work for the American people—while ensuring that taxpayer dollars are spent responsibly," said Secretary Chu. "Today's investments will save money for hard working families, reduce pollution, strengthen local economies, and help move America toward a clean energy future."
DOE's Weatherization Assistance Program will be available to families making up to 200% of the federal poverty level—or about $44,000 a year for a family of four. Weatherization projects allow low-income families to save money by making their homes more energy efficient, which results in average savings of 32% for heating bills and savings of hundreds of dollars per year on overall energy bills. States will spend an average of $6,500 to weatherize each home.
The funding allocations for the Weatherization Assistance Program follow a stage-gate process: on March 12 funding allocations by state were announced and the initial 10% of total funding was available to states and territories to support planning and ramp-up activities; comprehensive state applications were due on May 12; following a DOE reviews for each state, 40% allocations are awarded; and the remaining 50% of funds will be released when states meet reporting, oversight, and accountability milestones required by the Recovery Act.
The Recovery Act includes a strong commitment to oversight and accountability, while emphasizing the necessity of rapidly awarding funds to help create new jobs and stimulate local economies.
The seven states receiving funds today submitted aggressive and innovative plans to expand their weatherization programs:
ARKANSAS – $19. 2 Million Awarded Today
Arkansas will use its Recovery Act funding to weatherize more than 6,000 homes over the next three years. The Arkansas Office of Community Services (OCS) will administer the program with 15 local organizations to provide weatherization assistance to all 75 counties across the state. These organizations, consisting of community action groups, development councils and other nonprofits, will also conduct energy audits and re-weatherization services for 500 additional housing units. This program will help to reduce energy consumption and energy bills for low-income households, while creating jobs within the state.
The Recovery Act funding will also provide training and technical assistance to the community organizations. Through the state's training and technical assistance program, these organizations will be kept abreast of new weatherization techniques and methods.
After demonstrating successful implementation of its plan, the state will receive over $24 million in additional funding, for a total of more than $48 million.
IOWA – $32.3 Million Awarded Today
Iowa will use its Recovery Act funds to weatherize more than 7,200 homes over the next three years. Approximately 18 agencies are involved in carrying out the weatherization work, including the Hawkeye Area Community Action Program, Mid-Iowa Community Action, and the Polk County Board of Supervisors. The community action agencies will submit monthly reports to ensure transparency and accountability. In order to increase public awareness of the weatherization program and the savings that go with reduced energy use, Clean Energy Education Savings Guides developed by the Iowa Weatherization Program will be distributed to clients' homes.
After demonstrating successful implementation of its plan, the state will receive an additional $40 million, for a total of more than $80 million.
KENTUCKY – $28.3 Million Awarded Today
Kentucky will use its Recovery Act funds to weatherize more than 8,900 homes over the next three years. The state will give priority to households with children under six years of age, and those homes where the housing conditions are substandard and the children are at a risk of being removed from the family. The state will also prioritize homes with elderly and disabled family members and low-income households that spend a disproportionate amount of their income on energy costs, along with those households that use the highest cost fuels for the amount of energy provided. The program will also analyze the primary fuel type used in the household, with homes heated with electricity receiving a higher priority than those that use coal.
After demonstrating successful implementation of its plan, the state will receive an additional $35 million, for a total of more than $70 million.
MASSACHUSETTS – $48.8 Million Awarded Today
Massachusetts will use its Recovery Act funds to weatherize more than 16,900 homes over the next three years, while ramping up a Clean Energy Center to train and support a growing energy-efficiency workforce in the state. Under the program, Massachusetts is increasing the number of auditors and other professionals that will be needed to meet the increased demand for weatherization activities. More than 25 additional auditors have already been hired, along with new private-sector employees that will work with local organizations responsible for weatherization work.
After demonstrating successful implementation of its plan, the state will receive an additional $61 million, for a total of more than $122 million.
MICHIGAN –$97.3 Million Awarded Today
Michigan will use funding from the Recovery Act to provide weatherization assistance to more than 33,000 homes over the next three years. The Michigan weatherization program, administered by the Department of Human Services, will provide home energy audits and weatherization activities that will lower energy consumption and utility bills in low-income homes across the state. Each home will receive a unique audit to determine which activities are the most cost effective. Some of the most common weatherization procedures include the repair, insulation, and sealing of ducts and the installation of insulation in walls and attics. Weatherization funds can also be used to install energy efficient compact fluorescent light bulbs and replace energy consuming refrigerators and water heaters.
After demonstrating successful implementation of its plan, the state will receive over $121 million in additional funding, for a total of more than $243 million.
MINNESOTA – $52.7 Million Awarded Today
Minnesota will use its Recovery Act funding to weatherize more than 16,800 households over the next three years. Weatherization is a strong tool to minimize the effects of the state's climate for residents, who face harsh polar air and extreme temperatures throughout the year. The state's Department of Commerce will administer the program and over 30 community action groups throughout the state will provide weatherization services in local areas with the largest groups located in Minneapolis and in Ramsey and Washington Counties. All organizations that implement the work are provided training and technical assistance workshops and conferences focused on maximizing energy savings and minimizing program costs. The funding will also be used to support the state's energy crisis plan that assists low-income households with weatherization services in the event of a disaster.
NEW HAMPSHIRE - $9.3 Million Awarded Today
New Hampshire will utilize Recovery Act funding to help create new job opportunities and workforce development through the implementation of its weatherization assistance program and increased demand for weatherization professionals. The New Hampshire program will provide weatherization assistance to over 2,600 low-income households over the next three years. The New Hampshire Office of Energy and Planning will administer the program, and subcontract to six community action agencies that will deliver weatherization services at the local level.
After demonstrating successful implementation of its plan, the state will receive over $11.5 million in additional funding,
Sunday, July 5, 2009
News Letter for July 2009
WOOD PELLET NEWSLETTER
July 2009
Gerald W brown * 7202 County Road U * Danbury, WI 54830 Phone 715-866-8535
Gerald Brown is solely responsible for the content in this newsletter
· WOOD PELLETS - WHERE HAS THE WOOD COME FROM?
·MACLEANS LEADS WAY IN SCHOOL HEATING NZ
·NEW INDUSTRY FIRES UP HEATING FUEL PLANT IN STONE COUNTY
·WOOD FIBRE COSTS RISE FOR PELLET MANUFACTURE
·WOOD FIBER COSTS ARE RISING FOR WOOD PELLETS MANUFACTURERS IN EUROPE.
WOOD PELLET PLANT APPLICATION LODGED
·WOOD FOR HEATING IN AUSTRALIA
·WOOD PELLETS SUGGESTED AS EXPORT INDUSTRY
Sea 2 Sky Corp.
THE FIRST SHIPMENTS OF WOOD PELLETS AND AGGREGATES WERE EXPORTED FROM WEST COAST PORT
· WOOD FIBER COSTS ARE RISING FOR WOOD PELLETS MANUFACTURERS IN EUROPE
· US HAS ALMOST 100-YEAR SUPPLY OF NATURAL GAS
· SEA 2 SKY SECURES $757 MILLION WOOD FIBER SUPPLY CONTRACT IN NEW ZEALAND
·VERMONT SCHOOL DISTRICT SHIFTS TO WOOD PELLETS
·PINE BEETLE INFESTED WOOD BENEFICIAL TO BIOMASS INDUSTRY
· OTTEN TO ANNOUNCE MONDAY ON RUN FOR GOVERNOR OF MAINE
· FEDERAL BILL LARGELY IGNORES IMPORTANCE OF WOOD BIOMASS
· THE KALAMALKA RESEARCH STATION IS GOING GREEN
Wood Pellets - where has the wood come from
June 1, 2009
Implications
Wood Pellets - Next Gold Rush?? Bio-Mass - Long term deal? How much capacity?
Analysis
The wood pellet industry is undergoing a major transformation, as major Buyer, Power Companies and Traders position themselves to secure Wood Pellet supply for the long term.Contracts are being drawn up, Power Stations are being commissioned, Green Energy is the new buzz word, and Wood Pellets are the next Gold Rush.The forecasted increase in consumption in the wood pellets will increase, in the UK alone a need of 10 million mt pa, which is over Euro 1 billion sales.This is a new growth area and now the market is moving from a domestic / regional development to a Major Global player.However all is not rosy in the garden - is there enough supply of wood pellets being made - NO - there is generally a shortage, especially in Winter months, and this will become a major disaster , if no new capacity is brought on stream.China, Russia, South America - all these countries are claiming new factories are coming on stream - vast quantities are being promised and yet is the reality.Are Wood Pellets the right way forward - will it be sustainable - prices , are they correct?
What are the restrictions for Pellets:
6 or 8mm, Domestic or Industrial Grade - How do you handle the Ash ?
How do you transport them - Bulk, Bags, etc
Many answers remain open for the Wood Pellets
Resource: Gerson Lehrman Group, Inc. 850 Third Avenue, 9th Floor New York, NY 10022 +1 212 984 8500 main +1 212 984 8538 fax
Macleans leads way in school heating NZ
4:00AM Monday Jun 01, 2009By Eloise Gibson
Peter Langdale with Macleans College's converted coal-fired burner. Photo / Richard Robinson
School is out for polluting coal-fired boilers.
The old heating systems have made way for cleaner-burning, wood-fuelled boilers at 31 schools where students' chilly fingers will be warmed with heat from small pellets of dust and shavings left over from saw mills.
Between them the converted boilers are expected to produce 3300 fewer tonnes of CO2 a year than their coal-fired predecessors - the equivalent of taking more than 1000 cars off the road.
Simon Peek, deputy principal of Macleans College in Bucklands Beach, said the old school boiler had been given a new lease of life.
His school is the first in Auckland to convert to wood pellets.
"As well as a cleaner fuel we wanted a low-carbon, renewable option and we liked the idea that we didn't have to buy a new gas boiler or a large number of heat pumps," he said.
The Government-funded Energy Efficiency and Conservation Authority provided grants towards converting boilers at the 31 schools and will offer funding to more schools if the pilot goes well.
Pine pellets - which cannot be burned efficiently in an ordinary fire-place - are shovelled in and sparked into action by an electric element.
The combustion chamber is designed to produce only minimal smog compared with coal. The pellets are popular in Europe but just starting to catch on in New Zealand, where five plants produce them.
Minimal ash means the new burners require less frequent cleaning and the wood ash can be used as a fertiliser supplement on school gardens.
Source: New Zealand Herald - New Zealand
Posted: June 2, 2009 04:44 PM CDT
Updated: June 2, 2009 04:58 PM CDT
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New industry fires up heating fuel plant in Stone County
By Trang Pham-Bui
WIGGINS, MS (WLOX) - With a push of a button, the director of the Mississippi Development Authority started the bagging machine. Gray Swoope and hundreds of invited guests gathered Tuesday to celebrate the first official day of production at Piney Woods Pellets in Wiggins.
"This is Mississippi's future," said Swoope.
The vision for the 12,000 square foot plant began just days after Katrina, when Osmond Crosby saw for himself how the storm devastated the timber industry in Stone County.
"We made the decision to create a project that would be involved in post-hurricane recovery," said Crosby. "We've been land owners down here in Mississippi and timber producers a long, long time."
The Crosby family invested more than $10.5 million in the facility on old Highway 49 and hired 27 employees. The plant uses wood by-products, like sawdust, pulp plant peelings, and pine trees. The raw materials are broken up into small pieces, then go through several processes before they turn into tiny pellets.
"About 20 percent of our initial year's production will be used for stall bedding. The other 80 percent go into the bags, and those are fuel pellets. Those fuel pellets are burned in pellet stoves," Crosby said.
Crosby said the pellet stoves produce plenty of heat, are energy-efficient, and they don't emit smoke.
"You have a pellet stove going and you think you have natural gas burning. So all you have is hot air coming out," said Crosby.
"As far as getting away from dependence on foreign oil, you see for every bag of these wood pellets that's used, 1.72 gallons of foreign oil will not be used if you use this product to heat a home," Swoope said.
The plant can produce more than 50,000 tons of wood pellets every year.
"I feel proud," Crosby said. "I feel like we're at a point of accomplishment and what I'm ready to do now is make pellets, sell pellets, convince people to use pellets."
Crosby said there is technology being developed with heat pumps that would use the wood pellets to cool houses.
All content © Copyright 2000 - 2009 WorldNow and WLOX, a Raycom Media Station.
Wood fibre costs rise for pellet manufacture
2 June, 2009
European wood pellet manufacturers are finding that, due to the rapid expansion of the industry, wood fibre costs are rising, according to Wood Resource Quarterly.
The supply of lower cost sawdust is no longer sufficient to meet the industry’s raw material needs and they are increasingly turning to pulpwood and wood chips. In so doing, they are now competing with both wood-based panel manufacturers and pulpmills for raw material.
Predictions are that, due to this increased competition from the biomass sector, panel manufacturers and the pulp industry will continue to face higher costs, even in weak markets for forest products.
Progressive House,Maidstone Road,Sidcup,DA14 5HZ,United KingdomE-mail: mjeffree@ttjonline.comWebsite: http://www.ttjonline.com/Fax: +44 (0)20 8269 7844
Wood Fiber Costs are Rising for Wood Pellets Manufacturers in Europe Because the Industry is Expanding Rapidly, Reports the Wood
By " href="http://www.woodprices.com/" >Hakan Ekstrom on June 2, 2009
The expanding wood pellet industry in Europe is increasingly relying on pulpwood and wood chips for its raw-material needs, as the supply of lower-cost sawdust cannot meet the fast rise in demand for wood fiber. The biomass sector is now competing with both the wood-based panel manufacturers and pulpmills for wood residues and logs, reports the Wood Resource Quarterly.
Seattle, USA, June 01, 2009 — The competition for wood raw-material in Europe has been intensifying the past few years as sawmills, wood-panel manufacturers, pulpmills and bio-energy facilities expanded capacity during 2006 and 2007 and therefore increased the usage of roundwood and wood residues. Lately, the pulp market has weakened resulting in lower demand and prices for pulpwood in all countries in Europe. However, the decline has been less pronounced in markets where the pellet industry has a strong presence.
The increased demand for biomass from the energy sector has not only had an impact on prices of residual chips from sawmills (wood chips, sawdust and shavings) but also of small-diameter logs, which have increasingly been utilized for energy generation. These developments have been particularly prominent in Germany and Sweden the past year. In Germany, prices for sawdust, wood chips and hardwood logs have converged during 2008 and 2009, and were in the first quarter practically the same (measured in dry tons), as reported in the Wood Resource Quarterly.
In Sweden, small logs that would typically go to pulpmills have in recent months been sold to energy plants. With the demand and prices for pulpwood being in decline and the consumption of “energy wood” steadily rising, competition for smaller logs has intensified and it is expected that volumes of wood chips and logs bound for energy facilities will increase, thus potentially decreasing that going to pulpmills in the future. The rise in demand for forest biomass, including branches, stumps and tops will encourage more intensive management schemes with higher utilization of the forest resources not only in Sweden but in the rest of Europe as well.
With the energy sector emerging as a new and aggressive market player, floor prices for wood chips and pulplogs are not expected to ever return to the low levels of the late 1990’s again. The increased competition for raw-material between the biomass sector, the composite board manufacturers and the pulp industry will result in relatively high fiber costs even in weak markets for forest products in the future. The recent evolution of the wood raw-material market in Europe is not unique to this continent but can be expected to take place in North America as well in the coming years.
Global timber market reporting is included in the 50-page publication Wood Resource Quarterly. The report, established in 1988 and with readers in over 25 countries, tracks wood chips and pulpwood prices in most regions around the world and also includes regular updates of the latest developments in international timber, pulp, lumber and biomass markets.
Contact:Hakan EkstromWood Resources International LLCP.O. Box 1891Bothell, WA 980411-425-402-8809info@wri-ltd.comhttp://www.woodprices.com
Wood pellet plant application lodged
Posted on June 4, 2009, 12:12pm
Plantation Energy Australia has lodged a development application with Grant District Council to build a $25m wood pellet processing plant at Wandilo.
The plant, which will export environmentally friendly wood pellets to the European domestic market, is expected to create 15 full-time jobs, along with spin-off employment for the region’s transport and service industries.
It is also expected to create a $40m per year new industry for the Mount Gambier district.
The carbon neutral pellets will be made from residue from the region’s pine and bluegum forest estates.
According to the application, the processing plant was expected to manufacture 250,000 tonnes of Densified Biomass Fuel (DBF) pellets per year, which would be exported through the Port of Portland.
The processing plant will be built on 6.1ha, on the northern end of Wandilo Road.
Council planning and development director Leith McEvoy said the application would be classified as category three because the use was non complying in a primary industry zone.
But he said the application was forestry related and there was really no other location for such a processing plant.
Mr McEvoy said council would shortly call for public submissions on the proposal.
The application will be determined by council’s Development Assessment Panel, possibly in August.
Wood for heating
Thursday, 04 June 2009
By AMANDA KING
A TREND towards using cleaner fuel for heating has seen a local school become the first in Auckland to adopt an environmentally friendly approach by championing the return to wood.
Macleans College has fuelled its boiler with coal for the past 29 years, so its recent conversion to timber pellets made from pine is an about-face back to the basics of heating.
The college is one of 17 schools in New Zealand to make the shift and it’s expected another 40 across Auckland will follow.
George Estcourt, an engineer for Scion, a Crown Research Institute, has been researching boiler conversion for the past four years.
He was the project manager of Macleans’ conversion and says there has been a great deal of interest from other schools.
“We have had more than six Auckland schools investigating converting to wood pellets,” says Mr Estcourt.
The pine pellets are produced using untreated sawdust and shavings from local sawmills.
Duncan Mackenzie is energy projects manager for Solid Energy, the company responsible for creating the wood pellets.
He says ways of burning wood have improved dramatically over time.
“It’s a resource that New Zealand is rich in. We are rediscovering what we probably should have been doing a long time ago.”
Sea 2 Sky Targets $97 Billion Institutional and Industrial Market for Wood Pellets
FERNDALE, WASHINGTON -- 06/03/09 -- Sea 2 Sky Corporation (OTCBB: SSKY), a leading edge Renewable Bio-Energy Company focused on delivering alternative energy solutions to Fortune 1000 companies, Governmental agencies and Countries around the globe, announced today that it has entered into a comprehensive joint venture agreement with Gateway Associates LLC, a Company controlled by Mr. Henry James of the Lummi Nation. This agreement brings together distinctive market access rights to manufacture and distribute Wood Pellets to Institutional and Industrial Markets for Sea 2 Sky Corp. in a manner that has never been achieved to date. As part of this agreement, Gateway's network will facilitate access to the Institutional and Industrial markets based on its and others Special Category Businesses Rights designations and its status in the Foreign Trade Zones Act of 1934. Institutional access to markets includes cumulative mandates set by the United States of America Federal Government guidelines that amounts to 23% of the total US Federal budget. Industrial market access often requires similar percentages as the Institutional market guidelines to be eligible for continued contracting with the US Government. Both Sea 2 Sky and Gateway have determined that a substantial opportunity exists in the Wood Pellet market and are jointly co-operating to satisfy the unmet market demand. Based on current market evaluations, up to 17 percent of the US Federal procurement budget ($425 Billion approx.) is yet open to be met by Special Category Business businesses like those contained in Gateway's network. The Industrial market of unmet market demand is of similar size.
Wood pellets suggested as export industry
Updated at 12:55pm on 10 June 2009
A visiting overseas forestry expert says wood pellets could provide New Zealand with a whole new export business.
United States forestry consultant Don Peterson is one of the keynote speakers at a two-day conference called "Residues to Revenues" which started on Wednesday in Rotorua.
Mr Peterson has been instrumental in helping forestry businesses in the US shift into production of the pellets for central heating in homes, schools and industrial plants.
The pellets are created by compressing wood waste such as sawdust and shavings and more recently by using the large amount of material cut off during timber harvesting and normally left to rot on the forest floor.
Mr Peterson says the industry is growing very quickly across the world and it is time New Zealand became more involved.
He says it costs about $12 million to establish a 100,000-tonne wood pellet factory, so it requires a significant initial investment.
Mr Peterson says the plants have to be built near the regional wood source and would be a significant income stream in areas hit hard by the recession.
Copyright © 2009 Radio New Zealand
Sea 2 Sky Corp.(OTCBB: SSKY)View ProfileEnergy, in particular renewable Energy is on the top of the list of needs in many Countries around the World. There are constant discussions about Peak Oil, Global Warming and many political issues affecting secure supply of affordable and environmentally responsible energy for the future. World events like the dispute over Natural Gas between Russia and the Ukraine, as well as the continuing uncertainty in the Middle East have alerted us in the West to the fragility of our supply for energy, while the need to devastate vast areas of the Arctic in order to extract oil from the earth have highlighted the environmental toll the continued reliance on fossil fuels The world is desperate for alternatives, and Biomass is providing a big part of the solution. It will take a combination of renewable Energy options to reduce our dependence on fossil fuel, and Biomass represents the most readily available, most costeffective one. The ability to market our products internationally provides an exceptional opportunity for success that makes Sea 2 Sky a financially sound alternative energy Company.--------------------------------------------------------------------------------OverviewBUSINESS SUMMARY Sea 2 Sky Corp. (OTCBB: SSKY) is a leading edge Renewable Bio-Energy Company headquartered in a HUB Zone in Ferndale, Washington. The Company`s primary focus is to deliver alternative energy solutions to Fortune 1000 companies, Government agencies and Countries around the globe. Currently, Sea 2 Sky is engaged in the manufacturing and fulfillment process of Wood Pellets to Countries in Europe as a fuel and energy alternative. The Company is securing one of the largest concentration of biomass material in North America and is backed by "Special Category Minority Business" which enables it to compete effectively in a growing market.KEY INVESTMENT CONSIDERATIONS ? Contracts for long term supply of Pellet biomass allow Sea 2 Sky to provide market security and standards to various markets. Markets in Europe seek supply security, which we can provide. With the advent of global warming awareness the Company can also access Carbon Credits and has the ability to market and present new biomass products into the US market to assist Americans in obtaining energy independence.? Based on current supply contacts and existing markets, Sea 2 Sky is poised to become one of the major players in the Wood Pellet Business, and will be active in North, Central and South America, as well as South East Asia in a market that has unmet demand potential of over $500,000,000 annually.? Their management team was cultivated from the ground up to bring the international market a secure long-term supply of Biomass pellets. Their vision and sensitivity to the supply and demand of the marketplace cohesively balances along with the operational expertise to harvest and deliver Biomass to the industry.? The technical management experience creates financial strength and enables them to deliver a energy efficient, environmentally sound Biomass solution in a cost effective and secure manner.OUTLOOK / OPPORTUNITY Energy, in particular renewable Energy is on the top of the list of needs in many Countries around the World. There are constant discussions about Peak Oil, Global Warming and many political issues affecting secure supply of affordable and environmentally responsible energy for the future. World events like the dispute over Natural Gas between Russia and the Ukraine, as well as the continuing uncertainty in the Middle East have alerted us in the West to the fragility of our supply for energy, while the need to devastate vast areas of the Arctic in order to extract oil from the earth have highlighted the environmental toll the continued reliance on fossil fuels The world is desperate for alternatives, and Biomass is providing a big part of the solution. It will take a combination of renewable Energy options to reduce our dependence on fossil fuel, and Biomass represents the most readily available, most costeffective one. The ability to market our products internationally provides an exceptional opportunity for success that makes Sea 2 Sky a financially sound alternative energy Company.Contact Information--------------------------------------------------------------------------------Sea 2 Sky Corp.2287 Slater Road,Bellingham, WA USA 98227Telephone: (877) Sea‐2skyWeb Site: www.sea2skyenergy.com/Email: info@sea2skyenergy.comOFFICERSDavid Siebenga - President & CEOErik Odeen - CFOHenry James - ChairmanDoug Robertson - COO
The first shipments of wood pellets and aggregates were exported from west coast port
Belledune - The joint provincial-federal funding announcement that preceded the Belledune Port Authority's annual general meeting was not the only good news received last Friday afternoon.
Claude Doucet
After hearing that the provincial and federal governments will provide a combined $46.8 million towards a $61.2 million project for renovation and expansion of infrastructure at the port, attendees at the AGM received the welcome news that in 2008 the port had achieved its fourth consecutive year of profitability.
Net income for 2008 was $2,454,761, up from $1,931,082 in 2007, a rise of 27 per cent. This was assisted by a 10 per cent increase in revenue. The Port's business saw a 30 per cent increase in tonnage handled and a 33 per cent increase in vessels calling on the port, according to Claude Doucet, Chairman of the Board of Directors of the Belledune Port Authority.
Doucet noted that in 2008 the M. D. Young Terminal celebrated its tenth anniversary. In partnership with The Shaw Group Inc. and Envirem Technologies Inc. the first shipments of wood pellets and aggregates were exported. One of the two warehouses completed last year is now used for the storage of wood pellets. The aggregate is stockpiled directly before it is shipped.
In addition to the warehouses, the pipeline was extended. In total, $5 million of infrastructure work was completed last year.
WOOD FIBER COSTS ARE RISING FOR WOOD PELLETS MANUFACTURERS IN EUROPE
BECAUSE THE Industry Is Expanding Rapidly, Reports The Wood Resource QuarterlySat Jun 6, 3:01 am ETThe expanding wood pellet industry in Europe is increasingly relying on pulpwood and wood chips for its raw-material needs, as the supply of lower-cost sawdust cannot meet the fast rise in demand for wood fiber. The biomass sector is now competing with both the wood-based panel manufacturers and pulpmills for wood residues and logs, reports the Wood Resource Quarterly.Seattle, USA (PRWEB) June 6, 2009 -- The competition for wood raw-material in Europe has been intensifying the past few years as sawmills, wood-panel manufacturers, pulpmills and bio-energy facilities expanded capacity during 2006 and 2007 and therefore increased the usage of roundwood and wood residues. Lately, the pulp market has weakened resulting in lower demand and prices for pulpwood in all countries in Europe. However, the decline has been less pronounced in markets where the pellet industry has a strong presence.. The increased demand for biomass from the energy sector has not only had an impact on prices of residual chips from sawmills (wood chips, sawdust and shavings) but also of small-diameter logs, which have increasingly been utilized for energy generation. These developments have been particularly prominent in Germany and Sweden the past year. In Germany, prices for sawdust, wood chips and hardwood logs have converged during 2008 and 2009, and were in the first quarter practically the same (measured in dry tons), as reported in the Wood Resource Quarterly. In Sweden, small logs that would typically go to pulpmills have in recent months been sold to energy plants. With the demand and prices for pulpwood being in decline and the consumption of "energy wood" steadily rising, competition for smaller logs has intensified and it is expected that volumes of wood chips and logs bound for energy facilities will increase, thus potentially decreasing that going to pulpmills in the future. The rise in demand for forest biomass, including branches, stumps and tops will encourage more intensive management schemes with higher utilization of the forest resources not only in Sweden but in the rest of Europe as well. With the energy sector emerging as a new and aggressive market player, floor prices for wood chips and pulplogs are not expected to ever return to the low levels of the late 1990`s again. The increased competition for raw-material between the biomass sector, the composite board manufacturers and the pulp industry will result in relatively high fiber costs even in weak markets for forest products in the future. The recent evolution of the wood raw-material market in Europe is not unique to this continent but can be expected to take place in North America as well in the coming years. Global timber market reporting is included in the 50-page publication Wood Resource Quarterly. The report, established in 1988 and with readers in over 25 countries, tracks wood chips and pulpwood prices in most regions around the world and also includes regular updates of the latest developments in international timber, pulp, lumber and biomass markets. Contact Information Wood Resources International LLCHakan Ekstrom--------------------------------------------------------------------------------
MISSOULA COMPANY WORKING ON INNOVATIVE PROJECT
Posted: June 5, 2009 08:14 AM MDT A Missoula-based wood pellet company is well on its way to leading the nation in product innovation and environmental cutback, and is now trying to place a patent on its creation.Wood pellets are an all-natural, recycled, bio-mass fuel made from clean wood waste. It's a clean energy, and Eureka Pellet Mills makes it available for Montana, but now they are hoping to deliver their services and products straight to your door. Eureka Pellet Mill Business Development Director Christine Johnson gets excited talking about their newest invention a bulk wood pellet silo. "I have a pellet stove in out house and I get so excited I never have to deal with plastic bags again, you have no idea, its going to be fabulous."Instead of customers buying bags of pellets, they can buy a tote bag filled to the brim with pellets, saving them on plastic bags and then have it delivered straight to their door."This year we invented a bulk pellet delivery silo" Johnson explained. "It allows a forklift driver to put a tote on it and pull it off, so there is no need for a blower truck."Johnson says it took several proto-type silos to get the design just right, and so far no one in the country has thought of the idea, but in Europe, that's not the case."Over in Europe their doing this all over the place and it's pretty insane that we're so far behind in the United States" Johnson said. "I have a proto type in our house and it's come a long way."It's also come a long way for a Montana business with two mills, one in Superior and another in Eureka, and now a new take on wood pellet delivery. Eureka Pellet Mills is waiting to hear if they received a grant worth $250,000 to help jump start the bulk wood pellet silo invention and they hope to find out about the money sometime next week.
· Web Site: http://www.kpax.com/Global/story.asp?S=10484278
The Wall Street Journal wrote:
US HAS ALMOST 100-YEAR SUPPLY OF NATURAL GAS
The amount of natural gas available for production in the United States has soared 58% in the past four years, driven by a drilling boom and the discovery of huge new gas fields in Texas, Louisiana and Pennsylvania, a new study says....the Potential Gas Committee's study was prepared by industry geologists who analyzed individual gas fields using seismic imagery and production data provided by gas producers. The surge in gas resources is the result of a five-year-long drilling boom spurred by high natural-gas prices, easy credit and new technologies that allowed companies to produce gas from a dense kind of rock known as shale. The first big shale formation to be discovered, the Barnett Shale near Fort Worth, Texas, is now the country's top-producing gas field, and companies have made other huge discoveries in Arkansas, Louisiana and Pennsylvania. Together, the shale fields account for roughly a third of U.S. gas resources, according to the Potential Gas Committee.
Pickens had this to say:T. Boone Pickens Statement on Surge in Estimated Natural Gas Reserves
Today’s report substantiates what I’ve been saying for years: there’s plenty of natural gas in the U.S. I launched the Pickens Plan a year ago to help reduce our dangerous dependence on foreign oil, and using our abundant supply of natural gas as a transition fuel for fleet vehicles and heavy-duty trucks is a key element of that plan. On the same day this report is going out, diesel prices are again on the rise, squeezing the trucking industry. Now more than ever we need to take action to enact energy reform that will immediately reduce oil imports.The 2,074 trillion cubic feet of domestic natural gas reserves cited in the study is the equivalent of nearly 350 billion barrels of oil, about the same as Saudi Arabia’s oil reserves.
A number of people have rightly pointed out that a 100-year implies usage at current rates. But it got me to thinking about how much natural gas it would take to displace all U.S. gasoline consumption. So in the spirit of my previous essay Replacing Gasoline with Solar Power, I will do the same calculation for replacing gasoline with natural gas. The big difference between this calculation and the earlier one is that solar power still has some technical issues to resolve (e.g., storage) and electric vehicles are not yet ready for prime time. On the other hand we are perfectly capable, today, of displacing large numbers of gasoline-fueled vehicles with natural gas.How Much Do We Need?The U.S. currently consumes 390 million gallons of gasoline per day. (Source: EIA). A gallon of gasoline contains about 115,000 BTUs. (Source: EPA). The energy content of this much gasoline is equivalent to 45 trillion BTUs per day. The energy content of natural gas is about 1,000 BTUs per standard cubic foot (scf). Therefore, to replace all gasoline consumption would require 45 billion scf per day, or 16.4 trillion scf per year. Current U.S. natural gas consumption is 23 trillion scf per year (Source: EIA). Therefore, replacing all gasoline consumption with natural gas would require 39.4 trillion scf per year, an increase in natural gas consumption of 71% over present usage. Assuming for the sake of argument that the 2,074 trillion standard cubic feet cited in the study is accurate, and that the gas is economically recoverable, that is enough gas for 53 years of combined current natural gas consumption and gasoline consumption.We can also calculate in terms of oil imports. Right now the U.S. imports about 13 million barrels per day of all petroleum products. A barrel of oil contains around 5.8 million BTUs, but oil only makes up 10 million of the 13 million barrel per day figure. Other imports include things like gasoline (4.8 million BTUs/bbl) and ethanol (3.2 million BTUs/bbl). Scanning the list of imports, I probably won't be too far off the mark to presume that the average BTU value of those 13 million bpd of imports is about 5.4 million BTUs/bbl. On an annual basis, this amounts to 25.6 trillion scf, an increase over current natural gas usage of 111%. Going back to the 2,074 trillion scf from the study, this would be enough to displace imports of all petroleum products (again, at current usage rates and not factoring in declining U.S. oil production) for 43 years.What's the Cost?Natural gas is presently trading at about $4 per million (MM) BTU (although December 2009 is trading at almost $6). Oil is presently trading at $71/bbl, which equates to $12.24/MMBTU. Gasoline is presently trading at over $17/MMBTU. Thus, natural gas is a bargain relative to oil or gasoline. Incidentally, I just checked on seasoned wood and wood pellets, and they range from $8-$12/MMBTUs. So it is cheaper to heat your house with gas than with wood. I am not sure I would have guessed that.
press release
Jun 23, 2009, 4:18 p.m. EST
SEA 2 SKY SECURES $757 MILLION WOOD FIBER SUPPLY CONTRACT IN NEW ZEALAND
Des Wilson Forestry Ltd. to Provide 15 Year Wood Supply to Sea 2 Sky Corporation
FERNDALE, WASHINGTON, Jun 23, 2009 (MARKETWIRE via COMTEX) -- Sea 2 Sky Corporation, /quotes/comstock/11k!ssky (SSKY 0.39, +0.11, +39.29%) a leading edge Renewable Bio-Energy Company, is pleased to announce that it has obtained a $757 Million multi-year Wood Fiber Supply Agreement with Des Wilson Forestry Ltd. of New Zealand. Sea 2 Sky has secured this large "Fiber Basket" worth $757 Million in revenues to Sea 2 Sky over 15 years and is formalizing the operating agreement including the finance and construction of a wood pellet production mill. This Wood Fiber Supply Agreement provides Sea 2 Sky with 250,000 tons of wood fiber in the first two years and increasing it to 500,000 tons/annually for the remaining 13 years of the 15 year agreement. This agreement enables Sea 2 Sky to service the International wood pellet market on a long-term basis with Europe and Asia having substantial multi-Billion dollar product requirements. Sea 2 Sky will provide its managerial expertise in the manufacturing, international marketing and sales with the Des Wilson Forestry Ltd.'s fiber supply for 15 years with projected sales to Sea 2 Sky of $757 million based on the current market price of $233/dry ton.
David Siebenga, President and CEO of Sea 2 Sky Corporation, commented, "With this agreement now in place, we have achieved a historic milestone of opening up new markets in the forest industry by harnessing strong international sources of supply in stable democratic states that we can now market to our International network of Companies and Governments."
Sea 2 Sky has rapidly expanded its presence in the International wood pellet market with this agreement. The wood pellet market is swiftly becoming a precious commodity in a emerging low carbon emissions world. Wood pellets have many uses in both industrial and residential use and are considered to be carbon neutral when burned. Companies such as Novus Energy GmbH http://www.novusenergy.eu/ and RWE AG http://www.rwe.com/ (FRANKFURT: RWEG) of Germany are prime examples of companies substituting biomass for coal in Europe. The Largest coal burning company in the USA, American Electric Power Inc. of Ohio /quotes/comstock/13*!aep/quotes/nls/aep (AEP 28.80, +0.55, +1.94%) , is also switching some of its coal fired plants to co-fire with biomass. This biomass phenomenon is known as Torrefaction and is rapidly taking hold by using the existing coal mill infrastructure and co-firing the torrefied biomass with it to obtain greater efficiency and reducing carbon output.
About Sea 2 Sky Corporation
Headquartered in a HUB zone in Ferndale, WA, Sea 2 Sky Corporation, is a leading edge Renewable Bio-Energy Company focused on delivering alternative energy solutions to Fortune 1000 companies, Governmental agencies and Countries around the globe. The Company is currently securing the largest concentration of biomass material in North America and Abroad and is backed by a "Special Category Minority Business" which enables it to compete effectively in a substantially growing market. Sea 2 Sky is creating strategic relationships with suppliers of alternative energy sources such as biomass wood pellets to secure long-term supply contracts and to develop these products to a consistent specification that the target markets require to fulfill their energy needs with environmentally smart manufacturing facilities. More information about the Company may be found at http://www.sea2skyenergy.com/.
About Special Category Businesses and HUB Zones
The US government has created various incentive programs for certain demographic and minority based businesses in the Institutional Marketplace to compete with mandates of up to 23% of the US Federal Procurement Budget of $425 Billion for a total market window of $97 Billion. Within these mandates, requirements have been established to provide a strategic plan to have 3% mandated purchase requirements for Service-Disabled Veteran Owned Small Business (SDVOSB) from the Federal US Budget. Businesses located on a HUB Zone are eligible for Federal contracting preferences with the government having a further 3% for contract set-asides to HUB Zone-certified companies. Furthermore, small business are eligible for Federal contracting preferences with the government having up to a further 13% for contract set-asides to small business companies. Businesses owned and operated by Native Americans are eligible for Federal contracting preferences with the government having a further 5% for contract set-asides.
Notice regarding forward-looking statements
This press release contains forward-looking statements that may be subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and may include statements regarding our future financial performance or results of operations, including expected revenue growth. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise after the date of this press release. Additional information concerning risks and uncertainties that would cause actual results to differ materially from those projected or suggested in the forward-looking statements can be found in the reports that we have filed with the Securities and Exchange Commission.
Contacts:
Sea 2 Sky Corporation
877-732-2759
info@sea2skyenergy.com
Sea 2 Sky Corporation
Investor Relations
425-296-7695
ir@sea2skyenergy.com
http://www.sea2skyenergy.com/
June 24, 2009
Vermont School District Shifts to Wood Pellets
Vermont, United States [RenewableEnergyWorld.com]
The Windsor School District in Windsor, Vermont will become one of the first public school systems in the state to heat its building entirely with locally sourced wood pellets. The district has contracted with International WoodFuels LLC to provide a metered thermal heating solution that includes a high-efficiency pellet boiler, pellet storage silo, pellet delivery and monitoring and maintenance of the system with no capital cost investment by Windsor Schools.
"The fact that WoodFuels connects its boiler directly to our existing system minimized the effects the installation will have on the school's daily operation."-- Scott Coffran, Facilities Director, Windsor School District
Windsor will not purchase pellets, but rather, pay only for the heat as consumed and metered, similar to the way the electric utility delivers its power. The district will use the WoodFuels Green Energy System as its primary heat source for the duration of the contract and will receive guaranteed savings over the annual price of its current fossil fuel sources. The system will displace the use of 40,000 gallons of heating oil per school year.The company will own all of the equipment and will manage all project aspects of the installation, as well as operation and maintenance of the boilers, all at no cost to the school. The system is scheduled to be completed for the 2009-10 heating season. The Windsor School District had looked at both wood pellet and wood chip systems prior to signing the agreement with WoodFuels, but decided on the wood pellet system due to the efficiency with which pellets combust.“We looked at a number of locations for either a wood pellet or chip system on school grounds, and in the end, the pellet boiler and storage silo were much more compact. The fact that WoodFuels connects its boiler directly to our existing system minimized the effects the installation will have on the school’s daily operation. And of course, the no capital cost and clean efficiency were also great talking points,” said Scott Coffran, Facilities Director for the school district.
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PINE BEETLE INFESTED WOOD BENEFICIAL TO BIOMASS INDUSTRY
By Anna Austin
Posted June 24, 2009, at 2:28 p.m. CST The millions of acres of dead, downed and diseased timber infected by pine beetles in Colorado and the Western U.S. could be put to beneficial use by the biomass industry, and also help with forest fire mitigation and suppression, according to Mark Mathis, Pellet Fuels Institute Government Affairs and Commercial Fuel Committee member. Last week, Mathis, a number of congressmen from western states, representatives of the U.S. departments of agriculture and the interior, state and local officials, and business owners testified before the U.S. House of Representatives Committee on Natural Resources, Subcommittee on Water and Power and Subcommittee on National Parks, Forests and Public Lands. All stressed how important it is for the biomass industry to gain access the pine-beetle-damaged wood, and to help Congress formulate a strategic plan to manage the materials. Mathis is also president of Confluence Energy LLC, which currently is removing affected timber in Colorado and using it to produce wood pellets. The company operates a manufacturing facility in Kremmling, Colo., 70 miles northwest of Denver. “The utilization of this material from U.S. forests and parks will put value on the material, which is currently considered a substantial liability to U.S. taxpayers,” Mathis said. “Confluence Energy has viewed documents created by U.S. Forest Service personnel that suggest that the cost to treat some of the existing area in USFS Region 2 would exceed $220 million over the next three years. Confluence Energy suggests that by lowering some of the existing hurdles in accessing the dead and dying trees, private industry can add value to the material and dramatically reduce the cost to the taxpayers.” Mathis said the company estimated the possible savings at about $75 million over five years.
A decision needs to be made quickly, however, as the dead and dying trees have a limited shelf life, Mathis said. “It is estimated that once the trees die and turn red they have eight to 15 years before they blow over,” he said. “When trees blow over, they rot dramatically faster and any value from the wood is removed. Every minute we talk and do not act, not only are we are losing value, but we are reducing the time private industry has to get a return on their money to justify investing in these types of projects.” Mathis presented a plan that would require $10 million in grant funding and an additional $20 million in USDA-backed loans. He suggested Confluence Energy build an 8 MMgy to 10 MMgy ethanol plant and said the company has a partnership with a large U.S. fossil fuel company that is interested in a joint venture. The plan also includes the construction of a 5-megawatt power generation system to satisfy the facility’s and Kremmling’s energy needs; the retrofit and remodel of the company’s existing facility to manufacture high-value wood products; the renovation of an existing rail loading facility to transport finished products to market, and the expansion of Confluence Energy’s pellet facility to maximize potential output. Rep. John Salazar, D-Colo., in his testimony, said the amount of diseased trees in Colorado is more than 2 million acres and growing. “We have over 633 miles of electrical transmission lines just in Colorado that are in areas of dead or dying trees,” Salazar said. “We also have over 1,300 miles of electrical distribution lines at risk from falling trees or fire. A large fire could destroy many of these lines, causing power outages for months. While a wildfire is just a matter of when, falling trees are occurring now on trails, rancher’s fences, camp grounds and power lines.” Seth Voyles, PFI manager of government affairs, said the main thing on the agenda was to evaluate strategies to address the pine beetle wood problem. “For us, the pellet industry is part the solution,” he said. Aside from pellets, Voyles said there are many other possible uses for the wood. “When these trees die, they get a blue tinge to them, so there is blue furniture being made out of them as well,” he said. “There are a lot of things that can be done—in Mexico they’re allowing people to go in and cut wood for home heating, and they’re not charging for the permit to cut it as long as they use beetle kill trees.” As far as covering the cost of retrieving the wood, Voyles said that varies, depending on whether the damaged wood is on federal, state or private land. Jennifer Hedrick, manager of PFI, said one of the major hang-ups right now is the release of the land by the government and allow access for people to retrieve the materials. “There are some barriers,” Voyles agreed. “Especially on federal lands out West, there’s always some bureaucratic red tape to go through. There’s sensitivity about going into these lands, and sometimes there are no roads to get to them; some roads have limited access and you can’t get logging trucks in there; sometimes you’ll have timber sales approved by the government and the purchaser and suddenly someone files a lawsuit against it and it stops. There’s a whole mess of things that could prevent going in and getting the stuff out—even though everyone’s pretty gung-ho about doing it.”
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OTTEN TO ANNOUNCE MONDAY ON RUN FOR GOVERNOR OF MAINE
By Michael Daniels/A.P.
Les Otten of Greenwood confirmed for The Citizen Wednesday that he will announce Monday if he is to be a candidate for governor in the 2010 election. Otten was the founder and CEO of the Newry-based American Skiing Co., and went on to own a share of the Boston Red Sox. Since leaving the ski business and the Red Sox, he has turned to other ventures, including starting a new company, Maine Energy Systems, in 2008. MESys, which is based in Bethel, promotes the sales and distribution of wood pellets and pellet-fired boilers. Otten also serves as chairman of the Governor's Wood to Energy Task Force and is chairman of the Jeremiah Cromwell Disabilities Center in Portland. Asked why he was running, Otten noted Wednesday that 70 percent of Maine’s employment comes from small business, “and one of my considerations in devoting myself to public service comes from a keen sensibility and awareness of how difficult it is to do business in Maine.” And, he said, he has “a deep belief that government is here to support business, and business wasn’t created to support government — and I think we’ve got it a little bit wrong.” Political party TBA Otten will spell out his plans at a breakfast meeting with supporters Monday in South Portland. He then will hold a news conference, at which he is expected to announce the creation of a gubernatorial exploratory committee. Otten has declined to comment on whether he would run as a Republican, Democrat or independent. He said he’ll announce his political affiliation at the news conference.
FEDERAL BILL LARGELY IGNORES IMPORTANCE OF WOOD BIOMASS
By DeAnna StephensDate Posted: 7/1/2009
Although we’re still far from a paper-free society, the economic recession has hastened the decline of demand for paper. Increasingly, publishers are going digital only at a time when businesses are reducing paper clutter and print communications. Emails and intranets have replaced inner-office memos and newsletters.
Abitibi-Bowater filed for bankruptcy protection recently, as did packaging maker Smurfit-Stone Container in January. According to the American Forest & Paper Association (AF&PA), 18 U.S. paper mills closed permanently in 2008 and several more were idled indefinitely.
Pulp and paper mills have always been important for hardwood lumber producers. They not only serve as outlet for chips and other by-products, but help keep loggers in business by providing an outlet for pulpwood. Total fiber consumption at U.S. paper and paperboard mills fell 3.8% to 89.4 million tons in 2008, according to AF&PA. While AF&PA predicts increased fiber consumption between 2009-2011, a larger percentage of it will be recycled. Recovered fiber use increased from 26.6% of total fiber in 1990 to 36.5% in 2008. Production of paper is growing in overseas markets, but shipping costs and locally available resources have reduced exporting of pulpwood or by-products.
Large declines in sawmill production over the past two years have kept chip markets from collapsing, and at times even created tightness in markets. However, new markets for biomass energy have begun to take over as major outlets for by-products and promise to replace, if not exceed, demand from slowing paper activities. The question vital to hardwood sawmills and wood product manufacturers is what will happen to demand for pulpwood? Will biomass energy systems become viable soon enough to keep loggers working?
Electricity from Wood is Growing
There has been a shift in the social consciousness and wood is now considered a potential solution to environmental problems, rather than the cause. With the current focus on green technology, the time to create new industries that help improve the profitability of forest products companies is now.
European shifts toward energy production with wood pellets and the growth of pellet stoves for home heating in the U.S. and Canada have created new demand for clean chips and sawdust. According to the U.S. Department of Energy (DOE), there were 346 generators running on wood and wood derived fuels in the United States in 2007 with the combined capacity to produce 7,510 megawatts annually. The DOE says that biomass is now the leading producer of renewable energy in the United States, having recently passed hydroelectric power.
Hardwood industry companies have taken advantage of wood-fired boilers for years, but now that “green” has become a marketing concept, companies from other industries are seeking recognition for their environmental stewardship and are also recognizing the potential for cost savings from burning wood. An example is the new biomass plant at Lockheed Martin’s Owego, N.Y., location, which has supposedly reduced the facility’s carbon footprint by 25%. The biomass plant is generating steam from wood chips to heat, cool and generate supplemental electricity for the company’s production facility and offices.
The energy sector is also getting onboard. In 2008-2009, six new wood-fired power generation stations were scheduled to come on line. At least eight more will be ready to begin generation by 2012. One example is Peregrine Energy Corporation’s plans to construct a 50-megawatt generation facility in Hartsville, SC. Many other new co-generation plants and even conversions of coal-fired plants are being discussed. Passage of looming cap-and-trade carbon emissions legislation would only further push companies to develop more “carbon-neutral” energy.
Growth of Small Chip Mills
Connecticut based Hull Forest Products started looking at biomass as an alternative to selling chips to paper companies back in the 1980s. The paper industry was moving away from New England and freight costs deeply eroded profitability from selling to northern pulp mills. The company converted its own operations to a wood-fired boiler. About ten years ago, when some area schools began converting to biomass, Hull started selling to that market, which has continued to grow. “We’re getting several calls a week from people wanting to talk about plans to build,” said Sam Hull. “Right now, with the lumber industry struggling, chips and biomass are the light at the end of the tunnel.”
Hull Forest Products initially sold chips from its sawmill, but demand eventually surpassed supply. The company began supplementing production by running pulpwood through a debarker and chipper. The debarker was necessary because most operations need clean, bark-free chips which burn cleaner and produce less ash.
Used debarkers and chippers start at $20,000 to $50,000 dollars each. That’s an unlikely cash outlay for many loggers these days, yet, there appears to be interest. “If you talk to the loggers, they are all out there looking at buying a chipper,” said Hull. Not all loggers will need to secure that kind of capital to benefit from growing biomass demand. Many sawmill companies now have excess equipment that they may be able to reconfigure into a chip mill. Some may consider giving up the lumber side of the business altogether, but Hull suggests that model may be difficult financially. “It would be very hard for us to do this without the sawmill.”
Whether more sawmills build small chip mills or loggers invest in them, wood-fired energy plants promise to bring more financial stability to loggers. At existing price levels of up to $60/ton for clean chips, wood fired energy is cheaper than most alternatives.
Impact of Government
Legislators and government policy makers have to make decisions on a number of biomass related issues which will have a significant impact on how large biomass markets become. A narrow federal definition of “sustainable” woody-biomass has been used in past legislation and is included in several new bills. The current Renewable Electricity Standard’s (RES) definition of biomass restricts the definition of biomass so that it cannot be harvested from “old growth” or “mature” forests (without defining them), plantations planted after the act is passed, or any federal land unless it is near a campground or structure. That definition was widely criticized at a recent hearing before the U.S. House Subcommittee on Energy and Environment.
“If cellulosic forms of biomass are important, current definitions of renewable biomass in major energy policy legislation take a large portion of the land base out of consideration for use in renewable fuels,” testified Mary Wagner, a regional forester with the U.S. Forest Service. “We need to ensure that restrictive definitions of ‘biomass’ don’t restrict our ability to remove these materials from our forests,” said Tom Partin, president of American Forest Resource Council. (See article on page 28 covering biomass restrictions in current clean energy legislation.)
Still, former Vice President Al Gore testified in front of the U.S. House Energy and Commerce Committee recently that biomass from federal forests should remain off-limits because he is concerned that using it will encourage clear-cutting. While this debate won’t stop energy production from woody biomass, it will significantly limit wood availability from federal lands and may push energy companies toward other fuel stocks such as switchgrass.
Part of the RES could also push more use of woody biomass. The bill would require all power plants to generate 25% of their energy by 2025 from renewable energy sources. “If we see that bill enacted, which we think we’ll see something, that could be very positive—not necessarily today—but clearly a positive for large owners of wood fiber,” said Rick Holley, president and CEO of Plum Creek Timber.
Many coal-fired power plants could meet that standard by mixing woody biomass with coal. Co-firing power plants reduces sulphur and carbon emissions and, according to the DOE, mixing biomass with coal may require only minor plant modifications. Some energy generators may not stop at co-firing. Ontario Power Generation is considering transitioning all four of its coal-fired plants to biomass in 2014.
The Future Looks Promising
Swift declines in the paper industry are likely to reduce overall demand for chips and pulpwood during the next couple of years, but then biomass energy generation will begin pushing demand upward again. Numerous government agencies, colleges and manufacturers are building or considering installing woody biomass plants.
Given the current political and social climate, the rate of growth in woody biomass-generated electricity should continue to accelerate for several years. Healthy markets for pulpwood and by-products will go a long way toward keeping loggers in business and maintaining a steady flow of logs for sawmills.
THE KALAMALKA RESEARCH STATION IS GOING GREEN
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By Graeme Corbett - Vernon Morning StarThe Kalamalka Research Station is going green, and it is using a fairly familiar natural resource to do it.Back in January, B.C.s Ministry of Forests replaced the research stations natural gas heating system with a wood pellet boiler/solar panel combination, and Mark Griffin, the ministrys manager of research stations, says the results have been inspiring.Griffin estimates the research station previously consumed $16,000 annually in natural gas to heat the facility. He believes the biomass boiler could reduce that figure by up to $10,000, depending on how well the solar panels function in winter.The big random element is solar power, and how much energy were going to get from the solar panels, said Griffin, whose background is greenhouse horticulture.So far, the stations $1,300 monthly gas bill has been reduced to a paltry $175. That figure is offset by the consumption of $3,000 in pellets since the boiler came online in January, which is still a significant savings.The idea for all this came about when the ministry held a contest challenging its employees to devise alternative energy programs that would reduce greenhouse gas emissions.More than 400 ideas were submitted, with Ted Traer, a woodlot forester in the Quesnel district, winning with his Energy Cabin proposal. His design comprised a heating system powered by both solar panels and a wood pellet boiler.After looking at the ministrys potential facilities, it was decided the Kalamalka Research Station would be an ideal candidate.As a research station, were continually used as a proving ground for new ideas. Were happy to oblige, grinned Griffin.After a request for proposals was tendered, Enderbys Burkhard Fink, owner of Fink Machine Inc., was awarded the contract.The Austrian-born Fink, a machinist by trade, has been involved in the bio-energy field for 10 years. He says timber-rich B.C. is ideally situated to begin replacing gas- and oil-powered furnaces with high-efficiency wood boilers.I refused to consume gas when we have so much wood around, said Fink, of when he first began operating in B.C. It was an economic-driven decision back then... but the environmental aspects are being heard more in the public now.We also keep the wealth locally. We use local labour to harvest the local fuel instead of importing fuel. Its creating jobs all around.The Kal research station had to look no further than Armstrongs Pinnacle Pellets for a steady fuel source for its wood boiler. The solar panels were supplied by Swiss Solar Tech in Kelowna.We are proud of the fact that we were able to use a B.C.-based support system, said Griffin. Its a real plus for us.We see it as a way of supporting our emerging bio-energy field.Fink, who has five employees in Enderby, noted that while bio-energy projects have yet to catch on in the Okanagan, there will likely be more on the way as governments look to tighten greenhouse gas regulations and reduce fossil fuel consumption.The environmental impact is a lot lower and gentler with clean burning wood boilers than with fossil fuel equipment, said Fink, adding that modern wood boilers are just as efficient as natural gas furnaces.The perception is out there that wood burning equipment is dirty and not environmentally friendly. That can be true if its old technology, but new technology thats in Europe... is so clean burning you cannot visibly see the emissions.As an example, a school in P.E.I. that consumed 100,000 litres of natural gas annually converted to one of Finks wood boilers. Greenhouse gas emissions were reduced by 296 tons annually, which equals the amount produced by 54 passenger vehicles.The research stations wood pellet boiler has already consumed an estimated 30 metric tons of fuel, yet Griffin says they have ended up with just one wheel barrel full of ash as a by-product.Once he (Fink) got the machine tricked out, we were seeing very efficient combustion, said Griffin. This boiler is extremely efficient. It was impressive to see how little ash was produced.While the wood boiler and solar panels currently arent much use in summer, Griffin says there is potential to run the facilitys hot water off the panels.In summer, the challenge is to radiate all that heat the panels collect. Were still in the incipient stages of this.Griffin explains future alternative energy projects could include the ministrys fire bases. With no gas lines to these remote locations, diesel and propane need to be hauled in to keep them running. Griffin says a wood boiler/solar panel combination could be an ideal solution.
Additional Information
· Web Site: http://www.bclocalnews.com/
· Category: Forestry>Biomass Energy
· Region: BC - Canada
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July 2009
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Gerald Brown is solely responsible for the content in this newsletter
· WOOD PELLETS - WHERE HAS THE WOOD COME FROM?
·MACLEANS LEADS WAY IN SCHOOL HEATING NZ
·NEW INDUSTRY FIRES UP HEATING FUEL PLANT IN STONE COUNTY
·WOOD FIBRE COSTS RISE FOR PELLET MANUFACTURE
·WOOD FIBER COSTS ARE RISING FOR WOOD PELLETS MANUFACTURERS IN EUROPE.
WOOD PELLET PLANT APPLICATION LODGED
·WOOD FOR HEATING IN AUSTRALIA
·WOOD PELLETS SUGGESTED AS EXPORT INDUSTRY
Sea 2 Sky Corp.
THE FIRST SHIPMENTS OF WOOD PELLETS AND AGGREGATES WERE EXPORTED FROM WEST COAST PORT
· WOOD FIBER COSTS ARE RISING FOR WOOD PELLETS MANUFACTURERS IN EUROPE
· US HAS ALMOST 100-YEAR SUPPLY OF NATURAL GAS
· SEA 2 SKY SECURES $757 MILLION WOOD FIBER SUPPLY CONTRACT IN NEW ZEALAND
·VERMONT SCHOOL DISTRICT SHIFTS TO WOOD PELLETS
·PINE BEETLE INFESTED WOOD BENEFICIAL TO BIOMASS INDUSTRY
· OTTEN TO ANNOUNCE MONDAY ON RUN FOR GOVERNOR OF MAINE
· FEDERAL BILL LARGELY IGNORES IMPORTANCE OF WOOD BIOMASS
· THE KALAMALKA RESEARCH STATION IS GOING GREEN
Wood Pellets - where has the wood come from
June 1, 2009
Implications
Wood Pellets - Next Gold Rush?? Bio-Mass - Long term deal? How much capacity?
Analysis
The wood pellet industry is undergoing a major transformation, as major Buyer, Power Companies and Traders position themselves to secure Wood Pellet supply for the long term.Contracts are being drawn up, Power Stations are being commissioned, Green Energy is the new buzz word, and Wood Pellets are the next Gold Rush.The forecasted increase in consumption in the wood pellets will increase, in the UK alone a need of 10 million mt pa, which is over Euro 1 billion sales.This is a new growth area and now the market is moving from a domestic / regional development to a Major Global player.However all is not rosy in the garden - is there enough supply of wood pellets being made - NO - there is generally a shortage, especially in Winter months, and this will become a major disaster , if no new capacity is brought on stream.China, Russia, South America - all these countries are claiming new factories are coming on stream - vast quantities are being promised and yet is the reality.Are Wood Pellets the right way forward - will it be sustainable - prices , are they correct?
What are the restrictions for Pellets:
6 or 8mm, Domestic or Industrial Grade - How do you handle the Ash ?
How do you transport them - Bulk, Bags, etc
Many answers remain open for the Wood Pellets
Resource: Gerson Lehrman Group, Inc. 850 Third Avenue, 9th Floor New York, NY 10022 +1 212 984 8500 main +1 212 984 8538 fax
Macleans leads way in school heating NZ
4:00AM Monday Jun 01, 2009By Eloise Gibson
Peter Langdale with Macleans College's converted coal-fired burner. Photo / Richard Robinson
School is out for polluting coal-fired boilers.
The old heating systems have made way for cleaner-burning, wood-fuelled boilers at 31 schools where students' chilly fingers will be warmed with heat from small pellets of dust and shavings left over from saw mills.
Between them the converted boilers are expected to produce 3300 fewer tonnes of CO2 a year than their coal-fired predecessors - the equivalent of taking more than 1000 cars off the road.
Simon Peek, deputy principal of Macleans College in Bucklands Beach, said the old school boiler had been given a new lease of life.
His school is the first in Auckland to convert to wood pellets.
"As well as a cleaner fuel we wanted a low-carbon, renewable option and we liked the idea that we didn't have to buy a new gas boiler or a large number of heat pumps," he said.
The Government-funded Energy Efficiency and Conservation Authority provided grants towards converting boilers at the 31 schools and will offer funding to more schools if the pilot goes well.
Pine pellets - which cannot be burned efficiently in an ordinary fire-place - are shovelled in and sparked into action by an electric element.
The combustion chamber is designed to produce only minimal smog compared with coal. The pellets are popular in Europe but just starting to catch on in New Zealand, where five plants produce them.
Minimal ash means the new burners require less frequent cleaning and the wood ash can be used as a fertiliser supplement on school gardens.
Source: New Zealand Herald - New Zealand
Posted: June 2, 2009 04:44 PM CDT
Updated: June 2, 2009 04:58 PM CDT
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New industry fires up heating fuel plant in Stone County
By Trang Pham-Bui
WIGGINS, MS (WLOX) - With a push of a button, the director of the Mississippi Development Authority started the bagging machine. Gray Swoope and hundreds of invited guests gathered Tuesday to celebrate the first official day of production at Piney Woods Pellets in Wiggins.
"This is Mississippi's future," said Swoope.
The vision for the 12,000 square foot plant began just days after Katrina, when Osmond Crosby saw for himself how the storm devastated the timber industry in Stone County.
"We made the decision to create a project that would be involved in post-hurricane recovery," said Crosby. "We've been land owners down here in Mississippi and timber producers a long, long time."
The Crosby family invested more than $10.5 million in the facility on old Highway 49 and hired 27 employees. The plant uses wood by-products, like sawdust, pulp plant peelings, and pine trees. The raw materials are broken up into small pieces, then go through several processes before they turn into tiny pellets.
"About 20 percent of our initial year's production will be used for stall bedding. The other 80 percent go into the bags, and those are fuel pellets. Those fuel pellets are burned in pellet stoves," Crosby said.
Crosby said the pellet stoves produce plenty of heat, are energy-efficient, and they don't emit smoke.
"You have a pellet stove going and you think you have natural gas burning. So all you have is hot air coming out," said Crosby.
"As far as getting away from dependence on foreign oil, you see for every bag of these wood pellets that's used, 1.72 gallons of foreign oil will not be used if you use this product to heat a home," Swoope said.
The plant can produce more than 50,000 tons of wood pellets every year.
"I feel proud," Crosby said. "I feel like we're at a point of accomplishment and what I'm ready to do now is make pellets, sell pellets, convince people to use pellets."
Crosby said there is technology being developed with heat pumps that would use the wood pellets to cool houses.
All content © Copyright 2000 - 2009 WorldNow and WLOX, a Raycom Media Station.
Wood fibre costs rise for pellet manufacture
2 June, 2009
European wood pellet manufacturers are finding that, due to the rapid expansion of the industry, wood fibre costs are rising, according to Wood Resource Quarterly.
The supply of lower cost sawdust is no longer sufficient to meet the industry’s raw material needs and they are increasingly turning to pulpwood and wood chips. In so doing, they are now competing with both wood-based panel manufacturers and pulpmills for raw material.
Predictions are that, due to this increased competition from the biomass sector, panel manufacturers and the pulp industry will continue to face higher costs, even in weak markets for forest products.
Progressive House,Maidstone Road,Sidcup,DA14 5HZ,United KingdomE-mail: mjeffree@ttjonline.comWebsite: http://www.ttjonline.com/Fax: +44 (0)20 8269 7844
Wood Fiber Costs are Rising for Wood Pellets Manufacturers in Europe Because the Industry is Expanding Rapidly, Reports the Wood
By " href="http://www.woodprices.com/" >Hakan Ekstrom on June 2, 2009
The expanding wood pellet industry in Europe is increasingly relying on pulpwood and wood chips for its raw-material needs, as the supply of lower-cost sawdust cannot meet the fast rise in demand for wood fiber. The biomass sector is now competing with both the wood-based panel manufacturers and pulpmills for wood residues and logs, reports the Wood Resource Quarterly.
Seattle, USA, June 01, 2009 — The competition for wood raw-material in Europe has been intensifying the past few years as sawmills, wood-panel manufacturers, pulpmills and bio-energy facilities expanded capacity during 2006 and 2007 and therefore increased the usage of roundwood and wood residues. Lately, the pulp market has weakened resulting in lower demand and prices for pulpwood in all countries in Europe. However, the decline has been less pronounced in markets where the pellet industry has a strong presence.
The increased demand for biomass from the energy sector has not only had an impact on prices of residual chips from sawmills (wood chips, sawdust and shavings) but also of small-diameter logs, which have increasingly been utilized for energy generation. These developments have been particularly prominent in Germany and Sweden the past year. In Germany, prices for sawdust, wood chips and hardwood logs have converged during 2008 and 2009, and were in the first quarter practically the same (measured in dry tons), as reported in the Wood Resource Quarterly.
In Sweden, small logs that would typically go to pulpmills have in recent months been sold to energy plants. With the demand and prices for pulpwood being in decline and the consumption of “energy wood” steadily rising, competition for smaller logs has intensified and it is expected that volumes of wood chips and logs bound for energy facilities will increase, thus potentially decreasing that going to pulpmills in the future. The rise in demand for forest biomass, including branches, stumps and tops will encourage more intensive management schemes with higher utilization of the forest resources not only in Sweden but in the rest of Europe as well.
With the energy sector emerging as a new and aggressive market player, floor prices for wood chips and pulplogs are not expected to ever return to the low levels of the late 1990’s again. The increased competition for raw-material between the biomass sector, the composite board manufacturers and the pulp industry will result in relatively high fiber costs even in weak markets for forest products in the future. The recent evolution of the wood raw-material market in Europe is not unique to this continent but can be expected to take place in North America as well in the coming years.
Global timber market reporting is included in the 50-page publication Wood Resource Quarterly. The report, established in 1988 and with readers in over 25 countries, tracks wood chips and pulpwood prices in most regions around the world and also includes regular updates of the latest developments in international timber, pulp, lumber and biomass markets.
Contact:Hakan EkstromWood Resources International LLCP.O. Box 1891Bothell, WA 980411-425-402-8809info@wri-ltd.comhttp://www.woodprices.com
Wood pellet plant application lodged
Posted on June 4, 2009, 12:12pm
Plantation Energy Australia has lodged a development application with Grant District Council to build a $25m wood pellet processing plant at Wandilo.
The plant, which will export environmentally friendly wood pellets to the European domestic market, is expected to create 15 full-time jobs, along with spin-off employment for the region’s transport and service industries.
It is also expected to create a $40m per year new industry for the Mount Gambier district.
The carbon neutral pellets will be made from residue from the region’s pine and bluegum forest estates.
According to the application, the processing plant was expected to manufacture 250,000 tonnes of Densified Biomass Fuel (DBF) pellets per year, which would be exported through the Port of Portland.
The processing plant will be built on 6.1ha, on the northern end of Wandilo Road.
Council planning and development director Leith McEvoy said the application would be classified as category three because the use was non complying in a primary industry zone.
But he said the application was forestry related and there was really no other location for such a processing plant.
Mr McEvoy said council would shortly call for public submissions on the proposal.
The application will be determined by council’s Development Assessment Panel, possibly in August.
Wood for heating
Thursday, 04 June 2009
By AMANDA KING
A TREND towards using cleaner fuel for heating has seen a local school become the first in Auckland to adopt an environmentally friendly approach by championing the return to wood.
Macleans College has fuelled its boiler with coal for the past 29 years, so its recent conversion to timber pellets made from pine is an about-face back to the basics of heating.
The college is one of 17 schools in New Zealand to make the shift and it’s expected another 40 across Auckland will follow.
George Estcourt, an engineer for Scion, a Crown Research Institute, has been researching boiler conversion for the past four years.
He was the project manager of Macleans’ conversion and says there has been a great deal of interest from other schools.
“We have had more than six Auckland schools investigating converting to wood pellets,” says Mr Estcourt.
The pine pellets are produced using untreated sawdust and shavings from local sawmills.
Duncan Mackenzie is energy projects manager for Solid Energy, the company responsible for creating the wood pellets.
He says ways of burning wood have improved dramatically over time.
“It’s a resource that New Zealand is rich in. We are rediscovering what we probably should have been doing a long time ago.”
Sea 2 Sky Targets $97 Billion Institutional and Industrial Market for Wood Pellets
FERNDALE, WASHINGTON -- 06/03/09 -- Sea 2 Sky Corporation (OTCBB: SSKY), a leading edge Renewable Bio-Energy Company focused on delivering alternative energy solutions to Fortune 1000 companies, Governmental agencies and Countries around the globe, announced today that it has entered into a comprehensive joint venture agreement with Gateway Associates LLC, a Company controlled by Mr. Henry James of the Lummi Nation. This agreement brings together distinctive market access rights to manufacture and distribute Wood Pellets to Institutional and Industrial Markets for Sea 2 Sky Corp. in a manner that has never been achieved to date. As part of this agreement, Gateway's network will facilitate access to the Institutional and Industrial markets based on its and others Special Category Businesses Rights designations and its status in the Foreign Trade Zones Act of 1934. Institutional access to markets includes cumulative mandates set by the United States of America Federal Government guidelines that amounts to 23% of the total US Federal budget. Industrial market access often requires similar percentages as the Institutional market guidelines to be eligible for continued contracting with the US Government. Both Sea 2 Sky and Gateway have determined that a substantial opportunity exists in the Wood Pellet market and are jointly co-operating to satisfy the unmet market demand. Based on current market evaluations, up to 17 percent of the US Federal procurement budget ($425 Billion approx.) is yet open to be met by Special Category Business businesses like those contained in Gateway's network. The Industrial market of unmet market demand is of similar size.
Wood pellets suggested as export industry
Updated at 12:55pm on 10 June 2009
A visiting overseas forestry expert says wood pellets could provide New Zealand with a whole new export business.
United States forestry consultant Don Peterson is one of the keynote speakers at a two-day conference called "Residues to Revenues" which started on Wednesday in Rotorua.
Mr Peterson has been instrumental in helping forestry businesses in the US shift into production of the pellets for central heating in homes, schools and industrial plants.
The pellets are created by compressing wood waste such as sawdust and shavings and more recently by using the large amount of material cut off during timber harvesting and normally left to rot on the forest floor.
Mr Peterson says the industry is growing very quickly across the world and it is time New Zealand became more involved.
He says it costs about $12 million to establish a 100,000-tonne wood pellet factory, so it requires a significant initial investment.
Mr Peterson says the plants have to be built near the regional wood source and would be a significant income stream in areas hit hard by the recession.
Copyright © 2009 Radio New Zealand
Sea 2 Sky Corp.(OTCBB: SSKY)View ProfileEnergy, in particular renewable Energy is on the top of the list of needs in many Countries around the World. There are constant discussions about Peak Oil, Global Warming and many political issues affecting secure supply of affordable and environmentally responsible energy for the future. World events like the dispute over Natural Gas between Russia and the Ukraine, as well as the continuing uncertainty in the Middle East have alerted us in the West to the fragility of our supply for energy, while the need to devastate vast areas of the Arctic in order to extract oil from the earth have highlighted the environmental toll the continued reliance on fossil fuels The world is desperate for alternatives, and Biomass is providing a big part of the solution. It will take a combination of renewable Energy options to reduce our dependence on fossil fuel, and Biomass represents the most readily available, most costeffective one. The ability to market our products internationally provides an exceptional opportunity for success that makes Sea 2 Sky a financially sound alternative energy Company.--------------------------------------------------------------------------------OverviewBUSINESS SUMMARY Sea 2 Sky Corp. (OTCBB: SSKY) is a leading edge Renewable Bio-Energy Company headquartered in a HUB Zone in Ferndale, Washington. The Company`s primary focus is to deliver alternative energy solutions to Fortune 1000 companies, Government agencies and Countries around the globe. Currently, Sea 2 Sky is engaged in the manufacturing and fulfillment process of Wood Pellets to Countries in Europe as a fuel and energy alternative. The Company is securing one of the largest concentration of biomass material in North America and is backed by "Special Category Minority Business" which enables it to compete effectively in a growing market.KEY INVESTMENT CONSIDERATIONS ? Contracts for long term supply of Pellet biomass allow Sea 2 Sky to provide market security and standards to various markets. Markets in Europe seek supply security, which we can provide. With the advent of global warming awareness the Company can also access Carbon Credits and has the ability to market and present new biomass products into the US market to assist Americans in obtaining energy independence.? Based on current supply contacts and existing markets, Sea 2 Sky is poised to become one of the major players in the Wood Pellet Business, and will be active in North, Central and South America, as well as South East Asia in a market that has unmet demand potential of over $500,000,000 annually.? Their management team was cultivated from the ground up to bring the international market a secure long-term supply of Biomass pellets. Their vision and sensitivity to the supply and demand of the marketplace cohesively balances along with the operational expertise to harvest and deliver Biomass to the industry.? The technical management experience creates financial strength and enables them to deliver a energy efficient, environmentally sound Biomass solution in a cost effective and secure manner.OUTLOOK / OPPORTUNITY Energy, in particular renewable Energy is on the top of the list of needs in many Countries around the World. There are constant discussions about Peak Oil, Global Warming and many political issues affecting secure supply of affordable and environmentally responsible energy for the future. World events like the dispute over Natural Gas between Russia and the Ukraine, as well as the continuing uncertainty in the Middle East have alerted us in the West to the fragility of our supply for energy, while the need to devastate vast areas of the Arctic in order to extract oil from the earth have highlighted the environmental toll the continued reliance on fossil fuels The world is desperate for alternatives, and Biomass is providing a big part of the solution. It will take a combination of renewable Energy options to reduce our dependence on fossil fuel, and Biomass represents the most readily available, most costeffective one. The ability to market our products internationally provides an exceptional opportunity for success that makes Sea 2 Sky a financially sound alternative energy Company.Contact Information--------------------------------------------------------------------------------Sea 2 Sky Corp.2287 Slater Road,Bellingham, WA USA 98227Telephone: (877) Sea‐2skyWeb Site: www.sea2skyenergy.com/Email: info@sea2skyenergy.comOFFICERSDavid Siebenga - President & CEOErik Odeen - CFOHenry James - ChairmanDoug Robertson - COO
The first shipments of wood pellets and aggregates were exported from west coast port
Belledune - The joint provincial-federal funding announcement that preceded the Belledune Port Authority's annual general meeting was not the only good news received last Friday afternoon.
Claude Doucet
After hearing that the provincial and federal governments will provide a combined $46.8 million towards a $61.2 million project for renovation and expansion of infrastructure at the port, attendees at the AGM received the welcome news that in 2008 the port had achieved its fourth consecutive year of profitability.
Net income for 2008 was $2,454,761, up from $1,931,082 in 2007, a rise of 27 per cent. This was assisted by a 10 per cent increase in revenue. The Port's business saw a 30 per cent increase in tonnage handled and a 33 per cent increase in vessels calling on the port, according to Claude Doucet, Chairman of the Board of Directors of the Belledune Port Authority.
Doucet noted that in 2008 the M. D. Young Terminal celebrated its tenth anniversary. In partnership with The Shaw Group Inc. and Envirem Technologies Inc. the first shipments of wood pellets and aggregates were exported. One of the two warehouses completed last year is now used for the storage of wood pellets. The aggregate is stockpiled directly before it is shipped.
In addition to the warehouses, the pipeline was extended. In total, $5 million of infrastructure work was completed last year.
WOOD FIBER COSTS ARE RISING FOR WOOD PELLETS MANUFACTURERS IN EUROPE
BECAUSE THE Industry Is Expanding Rapidly, Reports The Wood Resource QuarterlySat Jun 6, 3:01 am ETThe expanding wood pellet industry in Europe is increasingly relying on pulpwood and wood chips for its raw-material needs, as the supply of lower-cost sawdust cannot meet the fast rise in demand for wood fiber. The biomass sector is now competing with both the wood-based panel manufacturers and pulpmills for wood residues and logs, reports the Wood Resource Quarterly.Seattle, USA (PRWEB) June 6, 2009 -- The competition for wood raw-material in Europe has been intensifying the past few years as sawmills, wood-panel manufacturers, pulpmills and bio-energy facilities expanded capacity during 2006 and 2007 and therefore increased the usage of roundwood and wood residues. Lately, the pulp market has weakened resulting in lower demand and prices for pulpwood in all countries in Europe. However, the decline has been less pronounced in markets where the pellet industry has a strong presence.. The increased demand for biomass from the energy sector has not only had an impact on prices of residual chips from sawmills (wood chips, sawdust and shavings) but also of small-diameter logs, which have increasingly been utilized for energy generation. These developments have been particularly prominent in Germany and Sweden the past year. In Germany, prices for sawdust, wood chips and hardwood logs have converged during 2008 and 2009, and were in the first quarter practically the same (measured in dry tons), as reported in the Wood Resource Quarterly. In Sweden, small logs that would typically go to pulpmills have in recent months been sold to energy plants. With the demand and prices for pulpwood being in decline and the consumption of "energy wood" steadily rising, competition for smaller logs has intensified and it is expected that volumes of wood chips and logs bound for energy facilities will increase, thus potentially decreasing that going to pulpmills in the future. The rise in demand for forest biomass, including branches, stumps and tops will encourage more intensive management schemes with higher utilization of the forest resources not only in Sweden but in the rest of Europe as well. With the energy sector emerging as a new and aggressive market player, floor prices for wood chips and pulplogs are not expected to ever return to the low levels of the late 1990`s again. The increased competition for raw-material between the biomass sector, the composite board manufacturers and the pulp industry will result in relatively high fiber costs even in weak markets for forest products in the future. The recent evolution of the wood raw-material market in Europe is not unique to this continent but can be expected to take place in North America as well in the coming years. Global timber market reporting is included in the 50-page publication Wood Resource Quarterly. The report, established in 1988 and with readers in over 25 countries, tracks wood chips and pulpwood prices in most regions around the world and also includes regular updates of the latest developments in international timber, pulp, lumber and biomass markets. Contact Information Wood Resources International LLCHakan Ekstrom--------------------------------------------------------------------------------
MISSOULA COMPANY WORKING ON INNOVATIVE PROJECT
Posted: June 5, 2009 08:14 AM MDT A Missoula-based wood pellet company is well on its way to leading the nation in product innovation and environmental cutback, and is now trying to place a patent on its creation.Wood pellets are an all-natural, recycled, bio-mass fuel made from clean wood waste. It's a clean energy, and Eureka Pellet Mills makes it available for Montana, but now they are hoping to deliver their services and products straight to your door. Eureka Pellet Mill Business Development Director Christine Johnson gets excited talking about their newest invention a bulk wood pellet silo. "I have a pellet stove in out house and I get so excited I never have to deal with plastic bags again, you have no idea, its going to be fabulous."Instead of customers buying bags of pellets, they can buy a tote bag filled to the brim with pellets, saving them on plastic bags and then have it delivered straight to their door."This year we invented a bulk pellet delivery silo" Johnson explained. "It allows a forklift driver to put a tote on it and pull it off, so there is no need for a blower truck."Johnson says it took several proto-type silos to get the design just right, and so far no one in the country has thought of the idea, but in Europe, that's not the case."Over in Europe their doing this all over the place and it's pretty insane that we're so far behind in the United States" Johnson said. "I have a proto type in our house and it's come a long way."It's also come a long way for a Montana business with two mills, one in Superior and another in Eureka, and now a new take on wood pellet delivery. Eureka Pellet Mills is waiting to hear if they received a grant worth $250,000 to help jump start the bulk wood pellet silo invention and they hope to find out about the money sometime next week.
· Web Site: http://www.kpax.com/Global/story.asp?S=10484278
The Wall Street Journal wrote:
US HAS ALMOST 100-YEAR SUPPLY OF NATURAL GAS
The amount of natural gas available for production in the United States has soared 58% in the past four years, driven by a drilling boom and the discovery of huge new gas fields in Texas, Louisiana and Pennsylvania, a new study says....the Potential Gas Committee's study was prepared by industry geologists who analyzed individual gas fields using seismic imagery and production data provided by gas producers. The surge in gas resources is the result of a five-year-long drilling boom spurred by high natural-gas prices, easy credit and new technologies that allowed companies to produce gas from a dense kind of rock known as shale. The first big shale formation to be discovered, the Barnett Shale near Fort Worth, Texas, is now the country's top-producing gas field, and companies have made other huge discoveries in Arkansas, Louisiana and Pennsylvania. Together, the shale fields account for roughly a third of U.S. gas resources, according to the Potential Gas Committee.
Pickens had this to say:T. Boone Pickens Statement on Surge in Estimated Natural Gas Reserves
Today’s report substantiates what I’ve been saying for years: there’s plenty of natural gas in the U.S. I launched the Pickens Plan a year ago to help reduce our dangerous dependence on foreign oil, and using our abundant supply of natural gas as a transition fuel for fleet vehicles and heavy-duty trucks is a key element of that plan. On the same day this report is going out, diesel prices are again on the rise, squeezing the trucking industry. Now more than ever we need to take action to enact energy reform that will immediately reduce oil imports.The 2,074 trillion cubic feet of domestic natural gas reserves cited in the study is the equivalent of nearly 350 billion barrels of oil, about the same as Saudi Arabia’s oil reserves.
A number of people have rightly pointed out that a 100-year implies usage at current rates. But it got me to thinking about how much natural gas it would take to displace all U.S. gasoline consumption. So in the spirit of my previous essay Replacing Gasoline with Solar Power, I will do the same calculation for replacing gasoline with natural gas. The big difference between this calculation and the earlier one is that solar power still has some technical issues to resolve (e.g., storage) and electric vehicles are not yet ready for prime time. On the other hand we are perfectly capable, today, of displacing large numbers of gasoline-fueled vehicles with natural gas.How Much Do We Need?The U.S. currently consumes 390 million gallons of gasoline per day. (Source: EIA). A gallon of gasoline contains about 115,000 BTUs. (Source: EPA). The energy content of this much gasoline is equivalent to 45 trillion BTUs per day. The energy content of natural gas is about 1,000 BTUs per standard cubic foot (scf). Therefore, to replace all gasoline consumption would require 45 billion scf per day, or 16.4 trillion scf per year. Current U.S. natural gas consumption is 23 trillion scf per year (Source: EIA). Therefore, replacing all gasoline consumption with natural gas would require 39.4 trillion scf per year, an increase in natural gas consumption of 71% over present usage. Assuming for the sake of argument that the 2,074 trillion standard cubic feet cited in the study is accurate, and that the gas is economically recoverable, that is enough gas for 53 years of combined current natural gas consumption and gasoline consumption.We can also calculate in terms of oil imports. Right now the U.S. imports about 13 million barrels per day of all petroleum products. A barrel of oil contains around 5.8 million BTUs, but oil only makes up 10 million of the 13 million barrel per day figure. Other imports include things like gasoline (4.8 million BTUs/bbl) and ethanol (3.2 million BTUs/bbl). Scanning the list of imports, I probably won't be too far off the mark to presume that the average BTU value of those 13 million bpd of imports is about 5.4 million BTUs/bbl. On an annual basis, this amounts to 25.6 trillion scf, an increase over current natural gas usage of 111%. Going back to the 2,074 trillion scf from the study, this would be enough to displace imports of all petroleum products (again, at current usage rates and not factoring in declining U.S. oil production) for 43 years.What's the Cost?Natural gas is presently trading at about $4 per million (MM) BTU (although December 2009 is trading at almost $6). Oil is presently trading at $71/bbl, which equates to $12.24/MMBTU. Gasoline is presently trading at over $17/MMBTU. Thus, natural gas is a bargain relative to oil or gasoline. Incidentally, I just checked on seasoned wood and wood pellets, and they range from $8-$12/MMBTUs. So it is cheaper to heat your house with gas than with wood. I am not sure I would have guessed that.
press release
Jun 23, 2009, 4:18 p.m. EST
SEA 2 SKY SECURES $757 MILLION WOOD FIBER SUPPLY CONTRACT IN NEW ZEALAND
Des Wilson Forestry Ltd. to Provide 15 Year Wood Supply to Sea 2 Sky Corporation
FERNDALE, WASHINGTON, Jun 23, 2009 (MARKETWIRE via COMTEX) -- Sea 2 Sky Corporation, /quotes/comstock/11k!ssky (SSKY 0.39, +0.11, +39.29%) a leading edge Renewable Bio-Energy Company, is pleased to announce that it has obtained a $757 Million multi-year Wood Fiber Supply Agreement with Des Wilson Forestry Ltd. of New Zealand. Sea 2 Sky has secured this large "Fiber Basket" worth $757 Million in revenues to Sea 2 Sky over 15 years and is formalizing the operating agreement including the finance and construction of a wood pellet production mill. This Wood Fiber Supply Agreement provides Sea 2 Sky with 250,000 tons of wood fiber in the first two years and increasing it to 500,000 tons/annually for the remaining 13 years of the 15 year agreement. This agreement enables Sea 2 Sky to service the International wood pellet market on a long-term basis with Europe and Asia having substantial multi-Billion dollar product requirements. Sea 2 Sky will provide its managerial expertise in the manufacturing, international marketing and sales with the Des Wilson Forestry Ltd.'s fiber supply for 15 years with projected sales to Sea 2 Sky of $757 million based on the current market price of $233/dry ton.
David Siebenga, President and CEO of Sea 2 Sky Corporation, commented, "With this agreement now in place, we have achieved a historic milestone of opening up new markets in the forest industry by harnessing strong international sources of supply in stable democratic states that we can now market to our International network of Companies and Governments."
Sea 2 Sky has rapidly expanded its presence in the International wood pellet market with this agreement. The wood pellet market is swiftly becoming a precious commodity in a emerging low carbon emissions world. Wood pellets have many uses in both industrial and residential use and are considered to be carbon neutral when burned. Companies such as Novus Energy GmbH http://www.novusenergy.eu/ and RWE AG http://www.rwe.com/ (FRANKFURT: RWEG) of Germany are prime examples of companies substituting biomass for coal in Europe. The Largest coal burning company in the USA, American Electric Power Inc. of Ohio /quotes/comstock/13*!aep/quotes/nls/aep (AEP 28.80, +0.55, +1.94%) , is also switching some of its coal fired plants to co-fire with biomass. This biomass phenomenon is known as Torrefaction and is rapidly taking hold by using the existing coal mill infrastructure and co-firing the torrefied biomass with it to obtain greater efficiency and reducing carbon output.
About Sea 2 Sky Corporation
Headquartered in a HUB zone in Ferndale, WA, Sea 2 Sky Corporation, is a leading edge Renewable Bio-Energy Company focused on delivering alternative energy solutions to Fortune 1000 companies, Governmental agencies and Countries around the globe. The Company is currently securing the largest concentration of biomass material in North America and Abroad and is backed by a "Special Category Minority Business" which enables it to compete effectively in a substantially growing market. Sea 2 Sky is creating strategic relationships with suppliers of alternative energy sources such as biomass wood pellets to secure long-term supply contracts and to develop these products to a consistent specification that the target markets require to fulfill their energy needs with environmentally smart manufacturing facilities. More information about the Company may be found at http://www.sea2skyenergy.com/.
About Special Category Businesses and HUB Zones
The US government has created various incentive programs for certain demographic and minority based businesses in the Institutional Marketplace to compete with mandates of up to 23% of the US Federal Procurement Budget of $425 Billion for a total market window of $97 Billion. Within these mandates, requirements have been established to provide a strategic plan to have 3% mandated purchase requirements for Service-Disabled Veteran Owned Small Business (SDVOSB) from the Federal US Budget. Businesses located on a HUB Zone are eligible for Federal contracting preferences with the government having a further 3% for contract set-asides to HUB Zone-certified companies. Furthermore, small business are eligible for Federal contracting preferences with the government having up to a further 13% for contract set-asides to small business companies. Businesses owned and operated by Native Americans are eligible for Federal contracting preferences with the government having a further 5% for contract set-asides.
Notice regarding forward-looking statements
This press release contains forward-looking statements that may be subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and may include statements regarding our future financial performance or results of operations, including expected revenue growth. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise after the date of this press release. Additional information concerning risks and uncertainties that would cause actual results to differ materially from those projected or suggested in the forward-looking statements can be found in the reports that we have filed with the Securities and Exchange Commission.
Contacts:
Sea 2 Sky Corporation
877-732-2759
info@sea2skyenergy.com
Sea 2 Sky Corporation
Investor Relations
425-296-7695
ir@sea2skyenergy.com
http://www.sea2skyenergy.com/
June 24, 2009
Vermont School District Shifts to Wood Pellets
Vermont, United States [RenewableEnergyWorld.com]
The Windsor School District in Windsor, Vermont will become one of the first public school systems in the state to heat its building entirely with locally sourced wood pellets. The district has contracted with International WoodFuels LLC to provide a metered thermal heating solution that includes a high-efficiency pellet boiler, pellet storage silo, pellet delivery and monitoring and maintenance of the system with no capital cost investment by Windsor Schools.
"The fact that WoodFuels connects its boiler directly to our existing system minimized the effects the installation will have on the school's daily operation."-- Scott Coffran, Facilities Director, Windsor School District
Windsor will not purchase pellets, but rather, pay only for the heat as consumed and metered, similar to the way the electric utility delivers its power. The district will use the WoodFuels Green Energy System as its primary heat source for the duration of the contract and will receive guaranteed savings over the annual price of its current fossil fuel sources. The system will displace the use of 40,000 gallons of heating oil per school year.The company will own all of the equipment and will manage all project aspects of the installation, as well as operation and maintenance of the boilers, all at no cost to the school. The system is scheduled to be completed for the 2009-10 heating season. The Windsor School District had looked at both wood pellet and wood chip systems prior to signing the agreement with WoodFuels, but decided on the wood pellet system due to the efficiency with which pellets combust.“We looked at a number of locations for either a wood pellet or chip system on school grounds, and in the end, the pellet boiler and storage silo were much more compact. The fact that WoodFuels connects its boiler directly to our existing system minimized the effects the installation will have on the school’s daily operation. And of course, the no capital cost and clean efficiency were also great talking points,” said Scott Coffran, Facilities Director for the school district.
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PINE BEETLE INFESTED WOOD BENEFICIAL TO BIOMASS INDUSTRY
By Anna Austin
Posted June 24, 2009, at 2:28 p.m. CST The millions of acres of dead, downed and diseased timber infected by pine beetles in Colorado and the Western U.S. could be put to beneficial use by the biomass industry, and also help with forest fire mitigation and suppression, according to Mark Mathis, Pellet Fuels Institute Government Affairs and Commercial Fuel Committee member. Last week, Mathis, a number of congressmen from western states, representatives of the U.S. departments of agriculture and the interior, state and local officials, and business owners testified before the U.S. House of Representatives Committee on Natural Resources, Subcommittee on Water and Power and Subcommittee on National Parks, Forests and Public Lands. All stressed how important it is for the biomass industry to gain access the pine-beetle-damaged wood, and to help Congress formulate a strategic plan to manage the materials. Mathis is also president of Confluence Energy LLC, which currently is removing affected timber in Colorado and using it to produce wood pellets. The company operates a manufacturing facility in Kremmling, Colo., 70 miles northwest of Denver. “The utilization of this material from U.S. forests and parks will put value on the material, which is currently considered a substantial liability to U.S. taxpayers,” Mathis said. “Confluence Energy has viewed documents created by U.S. Forest Service personnel that suggest that the cost to treat some of the existing area in USFS Region 2 would exceed $220 million over the next three years. Confluence Energy suggests that by lowering some of the existing hurdles in accessing the dead and dying trees, private industry can add value to the material and dramatically reduce the cost to the taxpayers.” Mathis said the company estimated the possible savings at about $75 million over five years.
A decision needs to be made quickly, however, as the dead and dying trees have a limited shelf life, Mathis said. “It is estimated that once the trees die and turn red they have eight to 15 years before they blow over,” he said. “When trees blow over, they rot dramatically faster and any value from the wood is removed. Every minute we talk and do not act, not only are we are losing value, but we are reducing the time private industry has to get a return on their money to justify investing in these types of projects.” Mathis presented a plan that would require $10 million in grant funding and an additional $20 million in USDA-backed loans. He suggested Confluence Energy build an 8 MMgy to 10 MMgy ethanol plant and said the company has a partnership with a large U.S. fossil fuel company that is interested in a joint venture. The plan also includes the construction of a 5-megawatt power generation system to satisfy the facility’s and Kremmling’s energy needs; the retrofit and remodel of the company’s existing facility to manufacture high-value wood products; the renovation of an existing rail loading facility to transport finished products to market, and the expansion of Confluence Energy’s pellet facility to maximize potential output. Rep. John Salazar, D-Colo., in his testimony, said the amount of diseased trees in Colorado is more than 2 million acres and growing. “We have over 633 miles of electrical transmission lines just in Colorado that are in areas of dead or dying trees,” Salazar said. “We also have over 1,300 miles of electrical distribution lines at risk from falling trees or fire. A large fire could destroy many of these lines, causing power outages for months. While a wildfire is just a matter of when, falling trees are occurring now on trails, rancher’s fences, camp grounds and power lines.” Seth Voyles, PFI manager of government affairs, said the main thing on the agenda was to evaluate strategies to address the pine beetle wood problem. “For us, the pellet industry is part the solution,” he said. Aside from pellets, Voyles said there are many other possible uses for the wood. “When these trees die, they get a blue tinge to them, so there is blue furniture being made out of them as well,” he said. “There are a lot of things that can be done—in Mexico they’re allowing people to go in and cut wood for home heating, and they’re not charging for the permit to cut it as long as they use beetle kill trees.” As far as covering the cost of retrieving the wood, Voyles said that varies, depending on whether the damaged wood is on federal, state or private land. Jennifer Hedrick, manager of PFI, said one of the major hang-ups right now is the release of the land by the government and allow access for people to retrieve the materials. “There are some barriers,” Voyles agreed. “Especially on federal lands out West, there’s always some bureaucratic red tape to go through. There’s sensitivity about going into these lands, and sometimes there are no roads to get to them; some roads have limited access and you can’t get logging trucks in there; sometimes you’ll have timber sales approved by the government and the purchaser and suddenly someone files a lawsuit against it and it stops. There’s a whole mess of things that could prevent going in and getting the stuff out—even though everyone’s pretty gung-ho about doing it.”
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OTTEN TO ANNOUNCE MONDAY ON RUN FOR GOVERNOR OF MAINE
By Michael Daniels/A.P.
Les Otten of Greenwood confirmed for The Citizen Wednesday that he will announce Monday if he is to be a candidate for governor in the 2010 election. Otten was the founder and CEO of the Newry-based American Skiing Co., and went on to own a share of the Boston Red Sox. Since leaving the ski business and the Red Sox, he has turned to other ventures, including starting a new company, Maine Energy Systems, in 2008. MESys, which is based in Bethel, promotes the sales and distribution of wood pellets and pellet-fired boilers. Otten also serves as chairman of the Governor's Wood to Energy Task Force and is chairman of the Jeremiah Cromwell Disabilities Center in Portland. Asked why he was running, Otten noted Wednesday that 70 percent of Maine’s employment comes from small business, “and one of my considerations in devoting myself to public service comes from a keen sensibility and awareness of how difficult it is to do business in Maine.” And, he said, he has “a deep belief that government is here to support business, and business wasn’t created to support government — and I think we’ve got it a little bit wrong.” Political party TBA Otten will spell out his plans at a breakfast meeting with supporters Monday in South Portland. He then will hold a news conference, at which he is expected to announce the creation of a gubernatorial exploratory committee. Otten has declined to comment on whether he would run as a Republican, Democrat or independent. He said he’ll announce his political affiliation at the news conference.
FEDERAL BILL LARGELY IGNORES IMPORTANCE OF WOOD BIOMASS
By DeAnna StephensDate Posted: 7/1/2009
Although we’re still far from a paper-free society, the economic recession has hastened the decline of demand for paper. Increasingly, publishers are going digital only at a time when businesses are reducing paper clutter and print communications. Emails and intranets have replaced inner-office memos and newsletters.
Abitibi-Bowater filed for bankruptcy protection recently, as did packaging maker Smurfit-Stone Container in January. According to the American Forest & Paper Association (AF&PA), 18 U.S. paper mills closed permanently in 2008 and several more were idled indefinitely.
Pulp and paper mills have always been important for hardwood lumber producers. They not only serve as outlet for chips and other by-products, but help keep loggers in business by providing an outlet for pulpwood. Total fiber consumption at U.S. paper and paperboard mills fell 3.8% to 89.4 million tons in 2008, according to AF&PA. While AF&PA predicts increased fiber consumption between 2009-2011, a larger percentage of it will be recycled. Recovered fiber use increased from 26.6% of total fiber in 1990 to 36.5% in 2008. Production of paper is growing in overseas markets, but shipping costs and locally available resources have reduced exporting of pulpwood or by-products.
Large declines in sawmill production over the past two years have kept chip markets from collapsing, and at times even created tightness in markets. However, new markets for biomass energy have begun to take over as major outlets for by-products and promise to replace, if not exceed, demand from slowing paper activities. The question vital to hardwood sawmills and wood product manufacturers is what will happen to demand for pulpwood? Will biomass energy systems become viable soon enough to keep loggers working?
Electricity from Wood is Growing
There has been a shift in the social consciousness and wood is now considered a potential solution to environmental problems, rather than the cause. With the current focus on green technology, the time to create new industries that help improve the profitability of forest products companies is now.
European shifts toward energy production with wood pellets and the growth of pellet stoves for home heating in the U.S. and Canada have created new demand for clean chips and sawdust. According to the U.S. Department of Energy (DOE), there were 346 generators running on wood and wood derived fuels in the United States in 2007 with the combined capacity to produce 7,510 megawatts annually. The DOE says that biomass is now the leading producer of renewable energy in the United States, having recently passed hydroelectric power.
Hardwood industry companies have taken advantage of wood-fired boilers for years, but now that “green” has become a marketing concept, companies from other industries are seeking recognition for their environmental stewardship and are also recognizing the potential for cost savings from burning wood. An example is the new biomass plant at Lockheed Martin’s Owego, N.Y., location, which has supposedly reduced the facility’s carbon footprint by 25%. The biomass plant is generating steam from wood chips to heat, cool and generate supplemental electricity for the company’s production facility and offices.
The energy sector is also getting onboard. In 2008-2009, six new wood-fired power generation stations were scheduled to come on line. At least eight more will be ready to begin generation by 2012. One example is Peregrine Energy Corporation’s plans to construct a 50-megawatt generation facility in Hartsville, SC. Many other new co-generation plants and even conversions of coal-fired plants are being discussed. Passage of looming cap-and-trade carbon emissions legislation would only further push companies to develop more “carbon-neutral” energy.
Growth of Small Chip Mills
Connecticut based Hull Forest Products started looking at biomass as an alternative to selling chips to paper companies back in the 1980s. The paper industry was moving away from New England and freight costs deeply eroded profitability from selling to northern pulp mills. The company converted its own operations to a wood-fired boiler. About ten years ago, when some area schools began converting to biomass, Hull started selling to that market, which has continued to grow. “We’re getting several calls a week from people wanting to talk about plans to build,” said Sam Hull. “Right now, with the lumber industry struggling, chips and biomass are the light at the end of the tunnel.”
Hull Forest Products initially sold chips from its sawmill, but demand eventually surpassed supply. The company began supplementing production by running pulpwood through a debarker and chipper. The debarker was necessary because most operations need clean, bark-free chips which burn cleaner and produce less ash.
Used debarkers and chippers start at $20,000 to $50,000 dollars each. That’s an unlikely cash outlay for many loggers these days, yet, there appears to be interest. “If you talk to the loggers, they are all out there looking at buying a chipper,” said Hull. Not all loggers will need to secure that kind of capital to benefit from growing biomass demand. Many sawmill companies now have excess equipment that they may be able to reconfigure into a chip mill. Some may consider giving up the lumber side of the business altogether, but Hull suggests that model may be difficult financially. “It would be very hard for us to do this without the sawmill.”
Whether more sawmills build small chip mills or loggers invest in them, wood-fired energy plants promise to bring more financial stability to loggers. At existing price levels of up to $60/ton for clean chips, wood fired energy is cheaper than most alternatives.
Impact of Government
Legislators and government policy makers have to make decisions on a number of biomass related issues which will have a significant impact on how large biomass markets become. A narrow federal definition of “sustainable” woody-biomass has been used in past legislation and is included in several new bills. The current Renewable Electricity Standard’s (RES) definition of biomass restricts the definition of biomass so that it cannot be harvested from “old growth” or “mature” forests (without defining them), plantations planted after the act is passed, or any federal land unless it is near a campground or structure. That definition was widely criticized at a recent hearing before the U.S. House Subcommittee on Energy and Environment.
“If cellulosic forms of biomass are important, current definitions of renewable biomass in major energy policy legislation take a large portion of the land base out of consideration for use in renewable fuels,” testified Mary Wagner, a regional forester with the U.S. Forest Service. “We need to ensure that restrictive definitions of ‘biomass’ don’t restrict our ability to remove these materials from our forests,” said Tom Partin, president of American Forest Resource Council. (See article on page 28 covering biomass restrictions in current clean energy legislation.)
Still, former Vice President Al Gore testified in front of the U.S. House Energy and Commerce Committee recently that biomass from federal forests should remain off-limits because he is concerned that using it will encourage clear-cutting. While this debate won’t stop energy production from woody biomass, it will significantly limit wood availability from federal lands and may push energy companies toward other fuel stocks such as switchgrass.
Part of the RES could also push more use of woody biomass. The bill would require all power plants to generate 25% of their energy by 2025 from renewable energy sources. “If we see that bill enacted, which we think we’ll see something, that could be very positive—not necessarily today—but clearly a positive for large owners of wood fiber,” said Rick Holley, president and CEO of Plum Creek Timber.
Many coal-fired power plants could meet that standard by mixing woody biomass with coal. Co-firing power plants reduces sulphur and carbon emissions and, according to the DOE, mixing biomass with coal may require only minor plant modifications. Some energy generators may not stop at co-firing. Ontario Power Generation is considering transitioning all four of its coal-fired plants to biomass in 2014.
The Future Looks Promising
Swift declines in the paper industry are likely to reduce overall demand for chips and pulpwood during the next couple of years, but then biomass energy generation will begin pushing demand upward again. Numerous government agencies, colleges and manufacturers are building or considering installing woody biomass plants.
Given the current political and social climate, the rate of growth in woody biomass-generated electricity should continue to accelerate for several years. Healthy markets for pulpwood and by-products will go a long way toward keeping loggers in business and maintaining a steady flow of logs for sawmills.
THE KALAMALKA RESEARCH STATION IS GOING GREEN
boiler/solar panel combinationWeb Site: http://www.bclocalnews.com/
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By Graeme Corbett - Vernon Morning StarThe Kalamalka Research Station is going green, and it is using a fairly familiar natural resource to do it.Back in January, B.C.s Ministry of Forests replaced the research stations natural gas heating system with a wood pellet boiler/solar panel combination, and Mark Griffin, the ministrys manager of research stations, says the results have been inspiring.Griffin estimates the research station previously consumed $16,000 annually in natural gas to heat the facility. He believes the biomass boiler could reduce that figure by up to $10,000, depending on how well the solar panels function in winter.The big random element is solar power, and how much energy were going to get from the solar panels, said Griffin, whose background is greenhouse horticulture.So far, the stations $1,300 monthly gas bill has been reduced to a paltry $175. That figure is offset by the consumption of $3,000 in pellets since the boiler came online in January, which is still a significant savings.The idea for all this came about when the ministry held a contest challenging its employees to devise alternative energy programs that would reduce greenhouse gas emissions.More than 400 ideas were submitted, with Ted Traer, a woodlot forester in the Quesnel district, winning with his Energy Cabin proposal. His design comprised a heating system powered by both solar panels and a wood pellet boiler.After looking at the ministrys potential facilities, it was decided the Kalamalka Research Station would be an ideal candidate.As a research station, were continually used as a proving ground for new ideas. Were happy to oblige, grinned Griffin.After a request for proposals was tendered, Enderbys Burkhard Fink, owner of Fink Machine Inc., was awarded the contract.The Austrian-born Fink, a machinist by trade, has been involved in the bio-energy field for 10 years. He says timber-rich B.C. is ideally situated to begin replacing gas- and oil-powered furnaces with high-efficiency wood boilers.I refused to consume gas when we have so much wood around, said Fink, of when he first began operating in B.C. It was an economic-driven decision back then... but the environmental aspects are being heard more in the public now.We also keep the wealth locally. We use local labour to harvest the local fuel instead of importing fuel. Its creating jobs all around.The Kal research station had to look no further than Armstrongs Pinnacle Pellets for a steady fuel source for its wood boiler. The solar panels were supplied by Swiss Solar Tech in Kelowna.We are proud of the fact that we were able to use a B.C.-based support system, said Griffin. Its a real plus for us.We see it as a way of supporting our emerging bio-energy field.Fink, who has five employees in Enderby, noted that while bio-energy projects have yet to catch on in the Okanagan, there will likely be more on the way as governments look to tighten greenhouse gas regulations and reduce fossil fuel consumption.The environmental impact is a lot lower and gentler with clean burning wood boilers than with fossil fuel equipment, said Fink, adding that modern wood boilers are just as efficient as natural gas furnaces.The perception is out there that wood burning equipment is dirty and not environmentally friendly. That can be true if its old technology, but new technology thats in Europe... is so clean burning you cannot visibly see the emissions.As an example, a school in P.E.I. that consumed 100,000 litres of natural gas annually converted to one of Finks wood boilers. Greenhouse gas emissions were reduced by 296 tons annually, which equals the amount produced by 54 passenger vehicles.The research stations wood pellet boiler has already consumed an estimated 30 metric tons of fuel, yet Griffin says they have ended up with just one wheel barrel full of ash as a by-product.Once he (Fink) got the machine tricked out, we were seeing very efficient combustion, said Griffin. This boiler is extremely efficient. It was impressive to see how little ash was produced.While the wood boiler and solar panels currently arent much use in summer, Griffin says there is potential to run the facilitys hot water off the panels.In summer, the challenge is to radiate all that heat the panels collect. Were still in the incipient stages of this.Griffin explains future alternative energy projects could include the ministrys fire bases. With no gas lines to these remote locations, diesel and propane need to be hauled in to keep them running. Griffin says a wood boiler/solar panel combination could be an ideal solution.
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