B BROWN NEWSLETTER
Gerald W brown * 7202 County Road U * Danbury, WI 54830
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• SAVING THE PLANET, ONE PELLET AT A TIME
• CHINA’S STRONG HOUSING STARTS 2012–15
• POPULAR WOODSTOVE EXCHANGE PROGRAM BEING OFFERED AGAIN
• SIX SCHOOLS COULD GET WOOD BURNING BOILERS
• FOREST SERVICE CHIEF FIELDS BUDGET QUESTIONS
• BIO SUPPORTS PROPOSED BIOBASED LEGISLATION
• PELLET BOILERS NOW CLASSIFIED AS CONVENTIONAL HEATING SOURCE
• WRANGELL EXPLORES LOCAL BIOFUEL PRODUCTION
• UNITS FIGHT BLAZE AT NC WOOD PELLET PLANT
• THE BEAUTY OF BIOMASS
• HOW MONKS WITH GREEN HABITS SLASHED THEIR HEATING BILLS
• REGION 9 SCHOOL TO EXPLORE ALTERNATIVE FUELS
• REBATES HELP CITIZENS INSTALL WOOD PELLET BOILERS
• WRANGELL EXPLORES LOCAL BIOFUEL PRODUCTION
• SAVANNAH RIVER SITE STARTS UP OPERATION
• FAQ ON ARMY'S $7 BILLION DRAFT RFP FOR RENEWABLE ENERGY
• SELMA BIOMASS PLANT TO START IN 2013
• MAINE FOREST SERVICE CUTS RIBBON AT TWO PELLET BOILER PROJECTS
• PORT OF WILMINGTON SEES EXPORTS RISE; DIRECTION REMAINS MURKY
• BIOMASS POWER COMPANY EXPANDING INTO U.S. MARKET
• DRY BIOMASS MAKES A DIFFERENCE
• INDUSTRY EXPERTS DISCUSS PERFECT STORM OF WOOD PELLET GROWTH
SAVING THE PLANET, ONE PELLET AT A TIME
The U.S. Army issued the following news release:
Baumholder energy initiatives are saving the planet, one wood pellet at a time. The U.S. Army Garrison Baumholder is moving forward with initiatives to save energy and help create an environmentally friendly community. The latest effort has been to install new furnaces that produce heat by burning wood pellets, which is 30 to 40 percent more economical than using heating oil.
Baumholder currently has about 50 buildings that are not connected to the steam heating system, mostly due to their remote locations. These buildings are currently heated with oil burning furnaces.
To help reduce heating requirements, six wood pellet burning furnaces will replace the aging heating oil furnaces. Three of the new furnaces are already functional and on line. Three more will soon be operational. When the project is complete, the six new furnaces will relieve seven buildings of their heating oil dependency.
Additional funding has been allocated to provide Baumholder with two more wood pellet furnaces that will heat an additional three buildings.
Converting to wood pellet burning furnaces is in line with Installation Management Command's Line of Effort 6.0 Energy and Water Efficiency and Security. Its critical measures deal with energy reduction, water usage reduction, using renewable energy and waste recycling. It's also the culmination of long planning coming from the Garrison's Zero Footprint planning concept that means energy independence with renewable, self-produced, local energy sources.
The new furnaces have a four-fold effect on the overall energy conservation scheme, according to Sean Lambur, Plans, Analysis and Integration Office director for USAG Baumholder. "The furnaces help create environmental and financial sustainability for Baumholder. We say that wood pellets are environmentally neutral because the same amount of carbon dioxide is released burning as otherwise rotting in forests. Depending on the particular furnace size and location, the renewable wood pellets that we'll need will cost us 30 to 40 percent less than heating oil. That could be more than $30,000 in just one year already and, with only 10 of 50 buildings done, you can see there's lots more to be saved. Local wood pellet supplies give the garrison energy independence compared to imported heating oil," said Lambur.
Weaning the garrison off its heating oil dependency is an unprecedented and ambitious endeavor, but it is not the only thing Baumholder is doing to step up its energy saving program. The implementation of wood pellet burning furnaces represents just the tip of the iceberg in Baumholder's overall energy plan.
Baumholder has also received $3.4 million to install radiant heating in 11 motor pools that replaces old hot air blowers. "This initiative will save Baumholder more than $600,000 annually in energy costs," said Lambur.
The use of renewable energy has become more and more prevalent in Europe. Solar panels cover Germany's red rooftops and energy windmills dot the landscape. Some communities have converted much of their open land to "solar farms" and "wind farms" which feed the electrical energy they produce directly into Germany's national energy net.
Baumholder has seen the wisdom and installed 530 solar panels on three prominent buildings. "We plan to install more panels and direct the electricity into the German net and thereby reduce our electrical costs with those rebates," said Lambur.
Looking outside the garrison's borders, Baumholder is moving to establish a partnership between Energy of Idar-Oberstein and the state of Rheinland Pfalz.
OIE is the private heating supplier for the region. "OIE is seeking to build an additional heating plant which burns wood chips that could supply more than 80 percent of the garrison's heating requirement with renewable energy," said Lambur.
In the recycling arena, Baumholder's new trash collection contract is earning money off of metal, glass and paper. That, together with Baumholder's new recycling program, is why all the recycling islands in the housing areas have bins for trash, paper, glass and cans. USAG Baumholder leads all garrisons in Europe in recycling earnings, with more than $100,000 in fiscal year 2011.
Baumholder is also taking the initiative to educate the community about recycling. The Go Green recycling program was introduced to the workforce and the community at personnel assemblies and town hall meetings. The garrison's goal is to reach a 42 percent recycling rate. In 2011, the garrison improved from 28.5 to 32 percent in just six months, mostly due to better glass separation in the new islands throughout the housing areas. The program is also being expanded in the home as the garrison hopes to purchase recycling bin sets for all family quarters this year. Many larger recycling bin sets, known by their bright blue (paper), yellow (cans) and red (glass) colors, have been distributed to public areas where Soldiers and civilians work.
Baumholder's energy efficiency and recycling plans are closely related. Recycled materials are also cheaper to dispose of, said Lambur. Going Green, whether in energy or in trash "our goal is to cut costs wherever possible and Go Green at the same time with self-sufficiency wherever possible," said Lambur.
Taking a look at the overall picture, "USAG Baumholder enjoys unique opportunities for energy and recycling management as we operate all heating, electrical and trash systems with our in-house workforce. This control gives us operational flexibility to pursue significant improvements in many areas," said Lambur.
By Ignacio Rubalcava (USAG Baumholder)
CHINA’S STRONG HOUSING STARTS 2012–15
WOOD MARKETS • Image by Zhiqian Li
The Chinese government is attempting to orchestrate a housing-market situation in 2012 that is unheard of in the Western world: a reduction in house prices to balance out excess housing stocks in the short-term, in combination with a massive expansion of the number of “affordable” housing starts (mainly through government-financed low-cost housing) to accommodate a long-term plan to meet rapid urban population growth.
The key objective of the Chinese government’s five-year plan is to make new housing units (mainly apartments) more affordable for the average Chinese family, by increasing construction of government financed/subsidized (“affordable”) homes throughout China, while at the same time implementing new policies to reduce prices on the excessive inventories of new and existing homes
The new housing policy directives, implemented gradually during 2010 and 2011, began to have a noticeable impact in the third and fourth quarters of 2011. The question on the minds of major log and lumber exporters to China is whether a command economy like China’s can achieve what a free-market economy cannot even contemplate. With continued sluggish housing starts and soft lumber markets forecast for the U.S., and fragile lumber markets expected for Europe in 2012, any change in Chinese demand is bound to have a major impact on global log and lumber prices.
POPULAR WOODSTOVE EXCHANGE PROGRAM BEING OFFERED AGAIN
Courier-Islander February 29, 2012
Back by popular demand, Campbell River's Wood Stove Exchange Program encourages residents to upgrade older wood stoves to CSA/EPA-certified wood, pellet or gas heating appliances, with 40 rebates available from March 1 through April 30, 2012.
A total of 75 exchanges have occurred since the program began in 2009 with $250-rebates available on a first come, first served basis. The continuation of this program in 2012 is made possible through $15,000 in grant funding secured from the BC Lung Association.
"As the burning season starts to wind down, this is a good time to consider switching out old uncertified smoky appliances with a high-efficiency wood, pellet or gas heating appliance," says Councillor Larry Samson, liaison to the City's Environmental Advisory Committee. "In addition to City rebates, savings offered by participating retailers and manufacturers make upgrading a wood stove a cost-effective and an environmentally sound decision."
A summary of air quality surveys conducted in 2010 and 2011 will be available for the public in an upcoming report as part of this year's program.
"While we are pleased to see that levels of fine particulate matter are generally very low, the preliminary results also confirm that there are a number of low-lying areas within the City that are 'hot spots' for wood smoke pollution," says Ron Neufeld, the City's general manager of operations.
The Vancouver Island Health Authority (VIHA) recognizes that fine particulate air pollution generated by older wood stoves contributes to many types of respiratory symptoms, respiratory illnesses, and decreased lung function. From a public health perspective, fine particulates are considered to have the most impact of outdoor air pollutants. With the woodstoves exchanged through the program to date, an estimated 4,650 kg of fine particulate air pollution has been reduced each season based on provincial criteria helping us all to breathe a little easier.
"Wood burning is at the heart of the Canadian identity," says Peter Woods, Chair of the City's Environmental Advisory Committee. "By exchanging old wood stoves for certified appliances, residents of Campbell River can continue this longstanding tradition, while also reducing pollution levels not just in the community, but in the greater air shed as well."
Burn It Smart, wood pile pride education and outreach events will take place throughout the Wood Stove Exchange Program. Program details will be available soon and will be posted on the City's website and in local newspapers.
The Wood Stove Exchange Program is administered by the City of Campbell River in partnership with local retailers, the BC Lung Association, the Province of BC and the Hearth, Patio and Barbecue Association of Canada. Participating retailers include Bennett Sheet Metal & Heating, Just Wood Stoves, Quality Stoves and Fireplaces Ltd and Guardian Chimney Services. Information on the Wood Stove Exchange Program and wood heating is available on the City website (www.campbellriver.ca).
For information contact Amanda Taylor at the City of Campbell River at 250-286-5721 or by email at amanda.taylor@campbellriver.ca.
SIX SCHOOLS COULD GET WOOD BURNING BOILERS
Published on Wednesday 7 March 2012 08:52
WOOD burning boilers might be installed in six Calderdale primary schools.
They are likely to cost £500,000 but are expected to earn the council more than £1.3 million by reducing carbon emissions.
The boilers are earmarked for St Mary’s Catholic Primary and Beech Hill, Halifax, Old Earth, Elland, West Vale, Ash Green, at Mixenden and St Chad’s, in Brighouse.
Installing environmentally friendly boilers would make it possible for Calderdale Council to take advantage of the Government’s new Renewable Heat Incentive Scheme, which encourages organisations to generate heat from renewable sources
Council leaders will consider the proposal when they meet on Monday.
The new boilers would burn recycled wood pellets and under the scheme, the council could expect payments for every unit of heat generated.
The renewables tariff is guaranteed for 20 years and the installation costs could be recouped within seven years. At that point, the additional payments could be shared between the council and the schools.
It is estimated that the new boilers could reduce carbon dioxide emissions by up to 400 tonnes a year.
Calderdale Council’s energy project officer, Dan Knight, said: “This is the sort of partnership approach that the council is trying to develop.
“The council and the schools will be saving money in the long term while demonstrating their commitment to the environment. A number of innovative environmental projects that we are involved in with partner organisations across a range of activities.”
The boilers at Old Earth and West Vale schools currently run on gas and the other four on heating oil.
Each school has two boilers and the proposal is to replace just one to provide the main source of heating.
FOREST SERVICE CHIEF FIELDS BUDGET QUESTIONS
Posted on March 7, 2012 by Bob Berwyn
U.S. Forest Service Chief Tom Tidwell.
Bark beetles, climate change and firefighting among the key concerns in U.S. Senate hearing
By Bob Berwyn
SUMMIT COUNTY — Intertwined concerns about overall forest health, bark beetles, climate change and wildfires took center state Tuesday at a full hearing of the U.S. Senate Energy and Natural Resources Committee, as lawmakers from both sides of the aisle questioned Forest Service Chief Tom Tidwell about his agency’s ability to meet its obligations to address the multiple challenges.
U.S. Senator Mark Udall, a Colorado Democrat, said its critical to engage the private sector and encourage the use of beetle kill products by expanding markets for forest products. That requires streamlining contracting procedures and giving incentives to companies that use beetle-killed wood for construction, as well as wood pellets and biomass for energy production.
“The private sector is key to dealing with this epidemic,” Udall said. “In a state like Colorado, where there is a large need for forest treatments but few forest-management businesses, the Forest Service should tailor timber sales and stewardship contracts to fit this industry, and work to try to move at the pace of industry as much as possible,” Udall said after the hearing. See a video of the exchange at Udall’s website.
Sen. Al Franken, a Democrat from Minnesota, used the hearing to emphasize concerns about how climate change may affect long-term forest health. He aksed Tidwell whether global warming leads to more fires, and more bark beetles surviving through the winter — and took a shot at some of his Republican colleagues who have expressed doubt about the state of climate science.
“There is a climate change denial among some of my colleagues that I find very disturbing,” Franken said.
“When it comes to fire, definitely, yes, we’re seeing much long fire seasons … as much as 60 -70 days longer, and more severe fire behavior, partly due to extended droughts,” Tidwell replied.
In general, climate change is increasing the frequency of disturbance and severe weather events that affect forests. Tidwell said the current widespread bark beetle infestation (which is waning in Colorado) is one of the best examples of climate change impacts.
The beetles are surviving at higher elevations and the infestations are continuing for longer time periods due at least in part to milder winters, Tidwell said.
South Dakota Sen. Tim Johnson asked Tidwell what his state can expect in the agency’s budget to deal with the growing pine beetle infestation in the Black Hills.
“There’s no way there will ever be enough appropriated funding to do the restoration that’s needed,” Tidwell said. “We need the forest products industry to remove the biomass.”
Other pressing needs exist in New Hampshire, where Sen. Jeanne Shaheen said that Hurricane Irene did $10 million worth of damage across 800,000 acres of national forest that sees 6 millio visitors per year.
“We do expect to be able to send some additional funding … it won’t be everything that they need,” Tidwell said.
He also answered questions about firefighting resources in what could be a long, hot summer in the central part of the country, saying the agency is short eight air tankers, but is looking to contract with private companies to ensure that there are adequate resources.
Additionally, the Forest Service will rely on partnering with the Air National Guard and using large helicopters for aerial firefighting efforts.
BIO SUPPORTS PROPOSED BIOBASED LEGISLATION
Written by BIO
Mar. 5, 2012, Washington, DC - Programs that help build a biobased economy can generate jobs and economic growth in the United States. The Biotechnology Industry Organization (BIO) today thanked Sen. Debbie Stabenow (D-Mich.) and co-sponsors Sens. Sherrod Brown (D-Ohio), Tom Carper (D-Del.), Robert Casey (D-Penn.), Chris Coons (D-Del.), Kent Conrad (D-N.D.), Amy Klobuchar (D-Minn.), and Jon Tester (D-Mont.) for introducing legislation that would allow more bio-manufacturing companies to participate in Farm Bill programs.
BIO President & CEO Jim Greenwood said, “Senator Stabenow’s proposed legislation would help bio-based manufacturers access vital capital, strengthen market opportunities for biobased products, and spur commercialization of agricultural and industrial biotech innovations. Technology neutral support for all biobased products, renewable chemicals, and biofuels will help build a robust biobased economy.
“Building a biobased economy in the United States will generate good jobs in manufacturing, agricultural production and forestry, transportation and distribution, and construction. Biomanufacturing opportunities can help revitalize traditional manufacturing regions and rural areas, creating a healthy, sustainable biobased economy. The biobased product and renewable chemical industry in 2008 employed 50,000 people in the United States, and more recent data indicates a near doubling of jobs. Continued growth of the industry and rebuilding the U.S. chemical production market can generate tens of thousands more jobs in the near future.”
BIO’s report, “Biobased Chemicals and Products: A New Driver for Green Jobs,” documents the potential for job creation through biomanufacturing and is available on the BIO.org website. According to the report, while the traditional U.S. chemicals and plastics industry has been a driver of export earnings for the United States, between 1997 and 2003 the U.S balance of trade in chemicals dropped from a $20 billion surplus to a $10 billion deficit. The United States regained some ground, but maintains an overall deficit. It has been estimated that the global sustainable chemical industry will grow to $1 trillion dollars in the next 10 years, which creates a significant opportunity for job growth and export growth. If U.S. companies can capture 19 percent of this new $1 trillion market, the report projects that the U.S. will create about 237,000 direct U.S. jobs in the sustainable chemicals sector, while shifting the balance of trade in the chemical sector to a surplus.
PELLET BOILERS NOW CLASSIFIED AS CONVENTIONAL HEATING SOURCE
By Anna Austin | March 06, 2012
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Wood pellet boilers are now classified as a conventional, primary heating source, according to the U.S. Department of Housing and Urban Development, and consequently will now qualify for Federal Housing Authority Funding. Secretary of Housing and Urban Development Shawn Donovan announced the news March 1.
The announcement came after a request from Sen. Susan Collins, R-Maine, for HUD to take another look at the issue, because families in Maine are facing major financial burdens from high oil prices and cut backs in fuel assistance programs. “Maine is the most heavily dependent of any state in the nation on home heating oil, and when you see the spikes in oil prices that we’ve seen this year, and the cut backs in the low income heating assistance program, it is causing tremendous hardship for so many of our families in Maine,” she said. “It’s also very difficult because Maine has the oldest housing stock in the nation, and thus, there are a lot of homes that are poorly insulated and would benefit from weatherization projects, and that’s something we ought to invest more in, as well.”
Sen. Collins also pointed out that large swings in oil prices have causes many residents to look to alternatives, and the wood pellet boiler industry is growing rapidly in the state as a result. “[Wood pellet boilers] have the potential to help out these families to convert from oil, and also to create thousands of new jobs in our state,” she said. “Wood pellet manufacturing, boiler technology and pellet delivery systems have progressed dramatically since the days when you had to scoop pellets from small bags into a small stove every couple of hours. Now, the industry has developed boilers that don’t require any human intervention during the day. There are automatic feeds for the pellets.”
She added that HUD has been slow to consider wood pellet boilers as an acceptable primary heating source, and if they were to do so, it would help families in Maine have confidence in converting to wood without losing their eligibility for FHA funding and federal housing programs.
Donovan responded by admitting that government agencies are often behind the cutting edge in terms of new technology, and announced that HUD is in the process of updating its handbooks to reflect that decision. He said the organization has notified all of its lenders that wood pellet stoves are an acceptable heating system for homes under HUD’s insurance programs, as long as they meet the qualifications that any heating system has to make.
WRANGELL EXPLORES LOCAL BIOFUEL PRODUCTION
Charlotte Duren
Image by Charlotte Duren
Johnson unloads wood pellets
WRANGELL, ALASKA (2012-03-07) Wrangell is taking a close look at its future energy needs. The Southeast Alaska Conservation Council (SEACC) held a meeting in Wrangell recently to discuss the issue and the role biofuels are playing in many Alaska communities. KSTK’s Charlotte Duren has more on some of the Southeast projects, as well as what some Wrangell residents are already doing.
As heating oil costs continue to rise, many Alaskans are looking for cheaper alternatives to meet their energy needs. One method is converting plants, paper, or wood waste into biomass to use as a renewable energy source.
“Probably about 5-years ago the fuel prices got extremely high for a period of time and I was burning about 12-hundred gallons of oil a year in my house and I knew I needed to do something different,” he says.
That’s Wrangell resident Carl Johnson. Johnson has been heating his two-story home with wood pellets for 5-years. He says it cut his heating costs dramatically.
“I went from about $4,500 a year in oil to about $1,200 in pellets. I spend about half in wood pellets than I would in oil,” he says.
He buys in bulk from a manufacturer in the Lower-48, as well as from a retailer in town. He says heating could cost even less if he could buy from a local manufacturer. At a recent meeting, SEACC Organizer Jeremy Maxand proposed just that.
“What we want to do is take a look at what the potential market penetration is for biofuels and look at the feasibility of building a manufacturing plant in Wrangell,” he says.
According to Southeast’s draft Integrated Resource Plan (IRP), a long-term generation and transmission study; there’s been a 50 percent increase in load on the hydropower system over the past 5-years. The IRP recommends the use of biofuels in homes and government buildings to help cut down on the load, as well as heating oil costs.
SEACC recently conducted a survey of residents in Wrangell and Petersburg to find out what types of energy people are using to heat their homes. It also asked whether people would be interested in using locally manufactured biofuel. Maxand, who is also Wrangell’s mayor, says 233 surveys were completed between the two communities.
“What we found in Wrangell and Petersburg, particularly in Wrangell is that 38% of respondents would be willing to purchase or use a locally manufactured product. And that is really important to know before you get too far down the road, to be able to know what the level of interest is,” he says.
Throughout Southeast Alaska, a number of successful biomass boiler projects have been developed. Sealaska Corporation’s Juneau headquarters has switched from oil to wood pellet heat. Craig and Thorne Bay heat school with waste-wood boilers.
Wrangell is considering manufacturing wood and paper briquettes that can be used in home wood stoves. Unlike pellet stoves, briquettes or “bio bricks” can be used just like regular firewood. Maxand says ultimately the conversion to biomass comes down to the needs of each individual community.
“We need to realize we are in a perfect storm right now between the Integrated Resource Plan, state funding, grant opportunities, small mills, municipal solid waste problem, you bring all these things together and you basically end up with an opportunity that can at least solve the heat side of the energy issue in Wrangell,” he says.
Last year Allen Brackley a Research Forest Supervisor for Sitka’s Wood Utilization Center visited Wrangell to speak on the town’s future forest product industry. One potential he says is the conversion of Wrangell’s small mill wood waste.
“There are a lot of renewable energy options, and I think in the short term the most viable biomass renewable energy options are some form of wood, then there’s wind power and solar power and all of those are making gain,” he says.
Brackley estimates it would take 23,000 cords of wood to replace all of the fuel oil used in homes and commercial buildings in Wrangell and Petersburg. This he says is 100% market penetration, which he believes won’t happen. He estimates that a reasonable rate of penetration over the next 10 years might be 1/3 of the market.
The local tribal government recently sent a letter of interest to Anchorage-based Alaska Village Initiatives requesting assistance in performing a feasibility study for biofuel manufacturing in Wrangell. Later this month Wrangell’s Borough Assembly will vote on a briquette pilot project that could potentially decrease the high costs of municipal waste disposal. If approved it will be passed on to the U.S. Department of Agriculture (USDA).
UNITS FIGHT BLAZE AT NC WOOD PELLET PLANT
Posted: Mar 08, 2012 9:22 AM CST Updated: Mar 08, 2012 6:17 PM CST
Nature's Earth plant (Source: WMBF News Reporter Crystal Moyer)
LAURINBURG, NC (WMBF) Just hours after firefighters put out a blaze at a wood fuel pellet plant in Laurinburg, it rekindled. But the aftermath may cause more problems for the plant.
PLANT FIRE
SLIDESHOW
Plant fire photos
Firefighters in Laurinburg are battling a blaze at a plant that creates pellets for horse bedding Thursday morning with the assistance of Laurinburg Police and the American Red Cross.
According to Melanie Laviner with the Laurinburg Fire Department, the fire began around 8:40 a.m. at the Nature's Earth Plant located at 16900 Aberdeen Rd.
The plant manager says Thursday morning, employees at the plant noticed smoke coming from the storage units, or silos.
"I knew there was a fire in place or something that wasn't right, and my immediate response was to call the fire department and evacuate the building," said plant manager Trent Locklear.
Laurinburg Fire Chief John Evans adds that the fire was located in a silos of the plant, and was contained within two hours. Seven engines, three tankers, rescue and EMS were on scene fighting the blaze.
Laviner said there were no employees at the plant at the time of the fire and no injuries have been reported.
Chief Evans said firefighters were sent to the top of the silo to pour water down onto the fire, expecting it to exit through the bottom doors, but the product soaked the water, filling the silo up.
"This sawdust that's inside the silo is like a sponge, all the water that we're pouring into it is absorbing and we just want to make sure the silos will be able to hold the pressure that's being up against it," said Evans.
The plant produces wood fuel pellets used for horse bedding, kitty litter and biofuel.
They're stored in large silo units before they are transported.
The unit that caught fire was about 71-percent filled with the product when a blaze took over inside the silo.
"Arriving units pulled up and saw heavy smoke coming out of one of the silos, as units were setting up, we had an explosion," said Evans.
The fire chief says the explosion caused the fire to spread to the converter unit, that transports the product in and out of the silo.
Firefighters climbed to the top of the container to battle the flames after the explosions.
Officials say the situation may have been worse without the explosion-proof doors built into the silos, where the fire was burning.
"It would have been a major catastrophe if they didn't have the explosion-proof doors it would have built up enough pressure that the whole silo would have exploded," said Evans.
All of the employees got out unharmed, but the plant manager says they will have to get rid of all the product exposed to the fire and water.
"We have to do what we have to do, to continue to do," said Locklear.
The investigation into how the fire started is still ongoing.
The engineer who constructed the silo is working with the plant manager to see if the structure will be able to hold the mixture and figure out a safe way to get the product out of the silo.
THE BEAUTY OF BIOMASS
08 Mar 2012
Wood pellets need dry storage and lots of it
Green and virtuous, biomass offers some handling challenges, as Felicity Landon finds out
As power generators look to biomass as a vital ‘green’ ingredient, for co-firing with coal or firing on its own, many ports see potential big business on the horizon.
Logically, ports that have traditionally been part of the supply chain serving coal-fired power stations would be expected to take up the opportunities. But therein lies a problem, or several problems – including dust, risk of fire and/or explosion, and the need for significant areas of covered storage and specialised handling systems.
“It isn’t just a matter of using the same assumptions as when handling coal, and just using the same equipment and processes for biomass,” says Yannick Tilley, international sales and business development manager at the Geldof Metaalconstructie, the Belgian supplier of components and solutions for storage and handling of bulks.
“Biomass is a material that requires particularly careful attention. There are numerous examples out there of people not treating biomass, and especially wood pellets, with the necessary safety precautions in mind – and they can find themselves facing explosion or fire. And even if you have the most far advanced handling system on the quay, it is still important to check the material coming in. We have heard stories of ships coming in with the biomass already smouldering.”
Too many people mistakenly assume that biomass is ‘just another bulk’ and that somehow it will seamlessly follow coal from quay to power station, says Mr Tilley.
However, the differences are significant. When handling coal, dust problems can be resolved by using water sprinklers. Wood pellets, when handled, create a lot of dust – and there is already a certain percentage of dust within the material, which can potentially cause an explosion. But wood pellets must be kept dry, because if moisture levels get too high, they can disintegrate or the moisture will speed up the biological activity within the pellets which could lead to combustion.
“That has an impact, because the belt and transport systems must be covered – and that affects the design and price of the system.”
Another key factor is quantity.
“People forget that wood pellets are a lighter, more voluminous product,” says Robert van Muiden, general manager of Van Uden Bulk Logistics in Rotterdam.
“In the same ship, you might carry 50,000 tonnes of coal – but only 30,000 tonnes of wood pellets. In the same warehouse, where you normally might fit 10,000 tonnes of coal, maybe you will fit 6-7,000 tonnes of wood pellets.
“All the terminals are saying millions of tonnes of wood pellets are coming. There were 1.2m tonnes through Rotterdam last year – which sounds impressive, but is a flea bite compared with coal.”
And then there is the comparative calorific value; the calculations show that for every tonne of wood pellets versus coal, the biomass option is twice as expensive and offers half the caloric value, points out one industry expert.
In the rush to be green, he says, politicians have focused on subsidies for power stations but no one has thought about the investments required in ports or trains. Coal wagons are open; wood pellets must be carried in enclosed wagons.
Robert van Muiden says: “A supply chain includes all the costs from origin to end user. People should be aware that logistics costs can kill a project, or make it.”
Wood pellets are a clean, renewable, carbon-neutral biomass fuel, says Andrew Moffat, chief executive of the Port of Tyne.
The Tyne has led the way in the handling of wood pellets, with throughput last year of nearly 1m tonnes. This was all for the Drax power station, served by rail from the quay; the port is also in talks with other generators about potential biomass imports.
“It’s important to recognise that handling biomass isn’t like handling coal just because it is going down the same supply chain to the same end user,” says Mr Moffat. “Wood pellets are basically softwood sawdust compressed using steam. I would say there are a lot of similarities with grain. For example, there is a high moisture content – the cargo can heat up and combust, if left alone, and that is one of the challenges.”
And while combustion in coal can be dealt with by raking out the stack outside and using water sprinklers, clearly that’s not an option for pellets. They would disintegrate and become unusable. Stock rotation is important: “You have to make sure you are moving stock around and aerating it, so you don’t get heat spots and potential combustion.
“Another issue is dust. When you handle the wood pellets, you get degradation of quality, leading to further dust.”
The Port of Tyne describes its first year of handling wood pellets as “both challenging and fruitful”. It invested an initial £20m in a dredging project and the construction of a biomass handling, storage and transportation facility which it believes is the most advanced of its kind in Europe, added another £1m to make some short-term modifications, and in January this year installed two new specialist hoppers, total cost £2.2m. These are equipped with extractor fans to remove dust and return it to the cargo.
The wood pellets are unloaded on the quayside using traditional grabs, operating behind a forced air curtain to keep the dust contained. The cargo is fed through the hoppers, transported to the shed and subsequently moved by covered conveyor to a silo for automatic top-loading of trains as required.
“You could cut corners and go for a least-cost solution but if you are not careful you will get environmental issues, whether that is dust or potentially storing for too long and risking fire,” says Mr Moffat. “We are a key element of the supply chain and believe that you need to invest properly, as we have done. We handled nearly 1m tonnes last year. The potential is huge.”
Geldof has provided biomass handling solutions for logistics and utility customers throughout Europe – among recent projects, the company delivered a wood pellet handling installation for the Electrabel Gelderland power plant in the Netherlands, where barges are unloaded pneumatically at 500 tonnes/hour via a mobile unit that eliminates dust emissions. The complete circuit, from quay to boiler, uses closed conveyor belts, silos, hammer mill and buildings kept under slight pressure to avoid the escape of wood dust.
Yannick Tilley says people tend to talk about biomass as one type of cargo, when the variety is considerable in both quality and handling requirements.
“One of the biggest misconceptions is that wood pellets, wood chips and waste-wood (often processed from demolition sites) can be treated in the same way.”
It is logical that ports want to maximise flexibility and storage, he says. “And of course people on the power side also want maximum flexibility; they have no idea what long-term or medium-term contract they can secure for their supplies, and they want to keep their options open.”
But the materials are very different in their physical properties, he emphasises. Wood pellets tend to be free-flowing and need to be kept dry. Wood chips are less sensitive to moisture and do not have the same dust-related problems. But they tend to stick together, which potentially gives a lot of problems with transport. And because waste-wood often comes from old furniture and fittings, residues of paint and other coatings can be an environmental issue.
“If you just mix it all up and try to come up with a one solution fits all type of installation, it becomes very technically very hard,” says Mr Tilley.
HOW MONKS WITH GREEN HABITS SLASHED THEIR HEATING BILLS
Monastery saves £7,000 a year as Cistercians warm to eco boiler
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By Linda Stewart
Friday, 9 March 2012
Warm worshippers: Our Lady of Bethlehem Abbey in Portglenone
When you rise to pray at 3.30am, that chill morning air can be hard to bear.
But Cistercian monks in Portglenone have installed underfloor heating in the monastic church where the seven common daily prayer sessions are held — and have slashed their carbon footprint as a result.
Our Lady of Bethlehem Abbey on the banks of the River Bann is a typical 1960s building — plenty of concrete, brick and glass, though not much insulation — but the monks have managed to cut their heating costs by more than £7,000 a year by switching to a wood pellet boiler powered by wood grown in Northern Ireland.
The monastery houses 70 Cistercian monks and, as an active cultural centre, welcomes several thousand visitors a year.
The monks had been struggling with the ever-rising cost of heating the many buildings housed within the abbey.
A 350kw wood pellet boiler was installed in the monastery in March 2009 and it is now the only monastery in Ireland to use pellets, known as brites. The boiler provides all the heating and hot water requirements including the underfloor heating in the monastic church — where, at 3.30am every day, the community of monks comes for the first of their seven daily prayer times.
Father Aelred Magee, who led the monastery in the move to renewable energy, said: “Having made the move, I would not look back as we are benefiting from substantial savings on our energy bills. I would certainly recommend a wood pellet boiler and brites to anyone who is considering an alternative way of having their heating and hot water supplied.”
Paula Keelagher, the market development manager for brites, said: “We are delighted that brites are working well for the monks and helping them to reduce their carbon footprint by offsetting 38 tonnes of carbon and 141 tonnes of CO2 in just the last year alone.”
Read more: http://www.belfasttelegraph.co.uk/news/local-national/northern-ireland/how-monks-with-green-habits-slashed-their-heating-bills-16128254.html#ixzz1od7PEgoc
REGION 9 SCHOOL TO EXPLORE ALTERNATIVE FUELS
By Eileen M. Adams, Staff Writer
Published on Saturday, Mar 10, 2012 at 12:12 am | Last updated on Saturday, Mar 10, 2012 at 12:12 am
MAINE— The Vocational Region 9 board plans to look into the possibility of switching from heating oil to some other form of energy.
Region 9 Director Brenda Gammon said so far this year, the school has used $6,000 more than the budgeted $34,000 for fuel oil, and the heating season isn't over.
“We'll look into wood pellets or chips and look for grants that could be used for alternative heating,” she said.
The board is placing $45,000 into the heating oil account for the 2012-13 school year.
She and the board have already looked at Oxford Hills Comprehensive High School in Paris and other schools that use wood pellets for heating.
The Facilities Committee will begin its investigation at a meeting later this month. Once the budget is developed in May, Gammon said a special committee may be appointed to conduct a more in-depth exploration.
She will also consider inviting representatives from alternative heating companies to meet with the board.
“We want to see what's available out there that could reduce costs,” she said. “We are a school of technology.”
REBATES HELP CITIZENS INSTALL WOOD PELLET BOILERS
March 5, 2012
Heating oil is more popular for warming homes in New England than in any other part of the country, but this winter has given many homeowners a reason to reconsider the traditional choice of fuels.
With oil prices at a long-term high and federal heating aid slashed to a shadow of last year's offering, needy residents across the region are shopping for new fuels for their heating equipment, according to New Hampshire Public Radio.
State rebates have helped to cut the cost of wood pellet heating for both stoves and boilers. Peter Canning of Berlin, New Hampshire was able to afford a wood-pellet boiler in his home when he joined the state's Model Neighborhood Project and received a $13,000 write-off for his Austrian-made $18,000 boiler.
The initial investment may sound impressive, but the machine is automated for easy use, feeding itself fresh pellets when the fire gets low and even collecting its own ash in a bin for easy cleaning.
People who choose to try wood pellets can save money compared to heating oil bills and also help to foster the forestry economy that is such an important segment of the Northeast business foundation, the news source says.
WRANGELL EXPLORES LOCAL BIOFUEL PRODUCTION
By Charlotte Duren - KSTK News • Image by Ishmeriev
WRANGELL, ALASKA — Wrangell is taking a close look at its future energy needs. The Southeast Alaska Conservation Council (SEACC) held a meeting in Wrangell recently to discuss the issue and the role biofuels are playing in many Alaska communities. KSTK’s Charlotte Duren has more on some of the Southeast projects, as well as what some Wrangell residents are already doing.
As heating oil costs continue to rise, many Alaskans are looking for cheaper alternatives to meet their energy needs. One method is converting plants, paper, or wood waste into biomass to use as a renewable energy source.
“Probably about 5-years ago the fuel prices got extremely high for a period of time and I was burning about 12-hundred gallons of oil a year in my house and I knew I needed to do something different,” he says.
Image by Charlotte Duren
Johnson unloads wood pellets
WRANGELL, ALASKA (2012-03-07) Wrangell is taking a close look at its future energy needs. The Southeast Alaska Conservation Council (SEACC) held a meeting in Wrangell recently to discuss the issue and the role biofuels are playing in many Alaska communities. KSTK’s Charlotte Duren has more on some of the Southeast projects, as well as what some Wrangell residents are already doing.
As heating oil costs continue to rise, many Alaskans are looking for cheaper alternatives to meet their energy needs. One method is converting plants, paper, or wood waste into biomass to use as a renewable energy source.
“Probably about 5-years ago the fuel prices got extremely high for a period of time and I was burning about 12-hundred gallons of oil a year in my house and I knew I needed to do something different,” he says.
That’s Wrangell resident Carl Johnson. Johnson has been heating his two-story home with wood pellets for 5-years. He says it cut his heating costs dramatically.
“I went from about $4,500 a year in oil to about $1,200 in pellets. I spend about half in wood pellets than I would in oil,” he says.
He buys in bulk from a manufacturer in the Lower-48, as well as from a retailer in town. He says heating could cost even less if he could buy from a local manufacturer. At a recent meeting, SEACC Organizer Jeremy Maxand proposed just that.
“What we want to do is take a look at what the potential market penetration is for biofuels and look at the feasibility of building a manufacturing plant in Wrangell,” he says.
According to Southeast’s draft Integrated Resource Plan (IRP), a long-term generation and transmission study; there’s been a 50 percent increase in load on the hydropower system over the past 5-years. The IRP recommends the use of biofuels in homes and government buildings to help cut down on the load, as well as heating oil costs.
SEACC recently conducted a survey of residents in Wrangell and Petersburg to find out what types of energy people are using to heat their homes. It also asked whether people would be interested in using locally manufactured biofuel. Maxand, who is also Wrangell’s mayor, says 233 surveys were completed between the two communities.
“What we found in Wrangell and Petersburg, particularly in Wrangell is that 38% of respondents would be willing to purchase or use a locally manufactured product. And that is really important to know before you get too far down the road, to be able to know what the level of interest is,” he says.
Throughout Southeast Alaska, a number of successful biomass boiler projects have been developed. Sealaska Corporation’s Juneau headquarters has switched from oil to wood pellet heat. Craig and Thorne Bay heat school with waste-wood boilers.
Wrangell is considering manufacturing wood and paper briquettes that can be used in home wood stoves. Unlike pellet stoves, briquettes or “bio bricks” can be used just like regular firewood. Maxand says ultimately the conversion to biomass comes down to the needs of each individual community.
“We need to realize we are in a perfect storm right now between the Integrated Resource Plan, state funding, grant opportunities, small mills, municipal solid waste problem, you bring all these things together and you basically end up with an opportunity that can at least solve the heat side of the energy issue in Wrangell,” he says.
Last year Allen Brackley a Research Forest Supervisor for Sitka’s Wood Utilization Center visited Wrangell to speak on the town’s future forest product industry. One potential he says is the conversion of Wrangell’s small mill wood waste.
“There are a lot of renewable energy options, and I think in the short term the most viable biomass renewable energy options are some form of wood, then there’s wind power and solar power and all of those are making gain,” he says.
Brackley estimates it would take 23,000 cords of wood to replace all of the fuel oil used in homes and commercial buildings in Wrangell and Petersburg. This he says is 100% market penetration, which he believes won’t happen. He estimates that a reasonable rate of penetration over the next 10 years might be 1/3 of the market.
The local tribal government recently sent a letter of interest to Anchorage-based Alaska Village Initiatives requesting assistance in performing a feasibility study for biofuel manufacturing in Wrangell. Later this month Wrangell’s Borough Assembly will vote on a briquette pilot project that could potentially decrease the high costs of municipal waste disposal. If approved it will be passed on to the U.S. Department of Agriculture (USDA).
SAVANNAH RIVER SITE STARTS UP OPERATION
Written by Business Wire
Mar. 13, 2012, Aiken, SC - Under Secretary of Energy Thomas D'Agostino joined U.S. Representative Joe Wilson (R-SC) and other senior officials from the Department of Energy (DOE) and Ameresco, Inc., a leading energy efficiency and renewable energy company, to mark the successful operational startup of a new $795M renewable energy fueled facility at the Savannah River Site (SRS).
The 34-acre SRS Biomass Cogeneration Facility is the culmination of 30-months and more than 600,000 hours of labor. This project is also the single largest renewable Energy Savings Performance Contract (ESPC) in the Nation's history. The project sustained and created an estimated 800 jobs, spanning the mechanical, construction, engineering, and supplier sectors. Fully operational, the plant will employ 25 fulltime jobs onsite and support the local logging community.
"Developing clean, renewable sources is an important part of President Obama's all-of-the-above approach to American energy," said Under Secretary D'Agostino in addressing an audience of approximately 150 stakeholders and employees during the ribbon cutting ceremony at SRS. "Projects like the SRS biomass facility are helping to deliver energy efficiency savings that benefit both taxpayers and the environment. Hundreds of people were put to work building this new facility that will save money, dramatically reduce emissions at the Savannah River Site, and help the Department to achieve our energy saving goals."
"I would like to congratulate DOE and Ameresco on their joint investment in a new clean energy source," Congressman Wilson shared with ceremony attendees. "Discovering new innovative energy sources is critically important in today's current economic recession. I am very proud of this private sector investor, as it works to reduce energy costs at Savannah River Site at no additional cost to the taxpayer and creates jobs which will spur economic development."
Acting Assistant Secretary for Environmental Management David Huizenga, DOE Savannah River Manager Dave Moody, and George Sakellaris, Ameresco President & Chief Executive Officer, joined Under Secretary D'Agostino and Rep. Wilson for the ceremonial ribbon cutting.
The SRS Biomass Cogeneration Facility replaced a deteriorating and inefficient 1950s-era coal powerhouse and oil-fired boilers, and will generate an estimated $944 million in savings in energy, operation and maintenance costs over the duration of the contract.
Clean biomass, consisting of local forest residue and wood chips, and bio-derived fuels will be the primary fuel source for the high-tech renewable energy facility, which has the capacity to combust 385,000 tons of forest residue into 20-megawatts of clean power annually.
Energy savings result from replacing the inefficient D Area Powerhouse with the biomass facility, switching from coal to biomass fuel, and improving the efficiency of the operations with new equipment that better matches SRS's load requirements. Surrounding communities also receive added health and environmental benefits tied to air emission reductions, including avoiding 100,000 tons of greenhouse gas emissions per year.
Renewable Recipient of the 2012 Renewable Energy World Excellence in Renewable Energy Award for Biomass Project of the Year, the Biomass Cogeneration Facility also advances Enterprise.SRS (E.SRS) strategic initiatives. It will help utilize SRS's assets, knowledge and expertise to achieve clean energy goals that yield compelling public health and environmental benefits with real energy and cost savings.
"This is a day for celebrating teamwork and progress. The DOE/Ameresco Project Team did a tremendous job seeing this project through construction to operational startup," said DOE-SR Manager Moody. "The SRS Biomass Cogeneration facility is the pinnacle of success in the Site's contributions to support the Department's energy efficiency goals. Startup of this renewable energy facility is proof in motion that we are committed to E.SRS initiatives geared toward utilizing SRS' assets and the knowledge and expertise of our workforce to secure a high-impact future for SRS and to meet national challenges in strategic areas like clean energy."
DOE signed onto an ESPC with Ameresco in 2009 to finance, design, construct, operate, maintain, and fuel the new biomass facility under a 20-year fixed price contract valued at $795 million.
"Today is the capstone on what has been a tremendous endeavor for our partnership. Together with the Department of Energy, the Savannah River Site, the State of South Carolina and our local and regional partners, we've built an award-winning, large-scale sustainable power resource," said Ameresco's President & CEO Sakellaris. "This SRS Biomass Cogeneration Facility, funded by our ESPC is a shining example of how public-private partnerships can create transformative energy infrastructure for the 21st Century."
ESPCs are contracts in which private companies finance, install, and maintain new energy- and water efficient equipment at federal facilities. The government pays no up-front costs, saving taxpayer dollars, and the company's investment is repaid over time by the agency from the cost savings generated by the new equipment. This allows the government to use the private sector to purchase more energy-efficient systems and improve the energy performance of their facilities at no extra cost to the agency or taxpayers.
DOE's Office of Environmental Management brokered the ESPC agreement that supports President Obama's aggressive goal of reducing energy waste across the federal government and increasing the use of renewable energy resources As laid out in the President's Executive Order on Federal Sustainability, the U.S. government can lead by example, by working to reduce greenhouse gas emissions 28 percent by 2020, reduce the energy intensity of our facilities by 30 percent by 2015, and significantly expand the amount of electricity we get from renewable energy resources.
About Ameresco Inc.
Founded in 2000, Ameresco, Inc. is a leading independent provider of comprehensive services, energy efficiency, infrastructure upgrades, and renewable energy solutions for facilities throughout North America. With its corporate headquarters in Framingham, MA, Ameresco's workforce of more than 900 employees provides local expertise through its 62 offices in 34 states and five Canadian provinces. For more information, visit www.ameresco.com .
FAQ ON ARMY'S $7 BILLION DRAFT RFP FOR RENEWABLE ENERGY
3/14/2012
On February 24, 2012, the U.S. Army Engineering & Support Center issued a draft request for proposals for renewable and alternative energy (the "Draft RFP"). Since posting our initial blog and Energy Law Alert, we have received a number of inquiries about the details of the solicitation. Below are answers to some of the most frequently asked questions.
Q1: Is this the actual RFP?
A1: No. It is only a draft. The Draft RFP can be found here. The Army is accepting comments until March 21, 2012. Comments can be submitted via the ProjNet website here.
Q2: When will the Army issue the final RFP and what form will it take?
A2: The Draft RFP does not set a date for release of the final RFP, which will take the form of a Multi-Award Task Order Contract (the "MATOC/Final RFP"). For those unfamiliar with the MATOC process, it is very important to understand four fundamental things: (1) the MATOC will not likely offer the opportunity to bid on any specific project (i.e., a "seed project") because the Draft RFP covers multiple technologies, (2) the Army will grant multiple awards under the MATOC, (3) awards granted under the MATOC give awardees the right to bid on individual Task Order contracts issued by specific facilities for specific projects (e.g., a Task Order for a 10 MW solar PV project at Joint Base Lewis-McChord in Washington), (4) parties that are not awardees in the MATOC process may not bid on these Task Orders. Thus, a developer must be an awardee under the MATOC/Final RFP in order to have the right to bid on individual project development opportunities. Before issuing the MATOC/Final RFP, the Army will need to complete its review of all of the comments that it receives by the March 21 deadline. At some point after the MATOC/Final RFP is published, the Army will host a pre-proposal conference in Huntsville, Alabama where participants will hear presentations regarding the program, the scope of work, contractual considerations, and small-business considerations.
Q3: Is the Department of Defense really mandated to procure 25% of its electricity from renewable resources by 2025?
A3: No. Section 2852 of the National Defense Authorization Act of 2007 (Pub. L. No. 109-364) codifies the Department of Defense's ("DoD") voluntary goal to produce or procure 25% of its total electricity consumption from renewable energy sources by 2025. This is not a Congressional mandate; however, the DoD is taking the goal very seriously. On August 10, 2011, the office of the Assistant Secretary of the Army for Installations, Energy & Environment ("ASA IE&E") issued an information paper announcing the formation of the Energy Initiatives Office Task Force ("EITF"). The job of the EITF would be (and now is) to serve as the central managing office for large-scale Army renewable energy projects. In that information paper, the Army estimated that an investment of up to $7.1 billion over the next 10 years would be required to procure 2.1 million megawatt-hours ("MWh") annually to meet Army goals and federal mandates, and to provide enhanced energy security. The Draft RFP is the next step in meeting those objectives.
Q4: What quantities of generating capacity, in installed megawatts ("MW"), is the Army looking to procure through power purchase agreements ("PPA") or equivalent contracts in each of the four categories (wind, solar, biomass, geothermal)?
A4: The Draft RFP sets out specific quantities of power, in total kilowatt-hours ("kWh") that the Army intends to procure through each of four types of contracts: (1) Solar PPA, (2) Wind PPA, (3) Biomass PPA, and (4) Geothermal PPA. The Draft RFP also states that applicants are to assume the period of performance of those contracts is 30 years. If the proposed procurement quantities are to be delivered over 30 years, and assuming a range of capacity factors for each technology type, we anticipate that the total installed MW of each to fall somewhere in the following ranges:
Technology Porposed
Procurement
(kWh) Assumed Capacity
Factor Projected Total
Installed Capacity
(MW)
Solar 1,500,000,000 12-18% 31.7 - 47.6
Wind 9,000,000,000 20-40% 85.6 - 171.2
Biomass 19,000,000,000 40-50% 144.6 - 180.8
Geothermal 8,000,000,000 60-70% 43.5 - 50.7
We note that the total procurement quantity (37.5 million MWh), if delivered in equal amounts over 30 years, would yield an annual procurement of 1.25 million MWh. This number is slightly more than half of the annual procurement that the ASA IE&E, in its August 10, 2011 information paper, estimated would be required to meet the Army's renewable energy needs.
Q5: Is there a minimum or maximum project size?
A5: The Draft RFP does not specify project sizes, only the aggregate procurement quantity for each technology type. The MATOC/Final RFP, when released, will result in multiple indefinite delivery/indefinite quantity ("ID/IQ") contracts with a portion of the awards reserved for small businesses (for details on what size projects are reserved for small businesses, see our February 28, 2012 blog or February 29, 2012 Energy Law Alert). The capacity within these ID/IQ contracts (e.g., the 1.5 million MWh capacity proposed for solar) will be shared using the fair opportunity process (a procedure under federal acquisition law) subject to a few restrictions. Specific project sizes, specific site requirements, and government-specific facility requirements will be specified by individual facilities in their Task Order requests for proposals that will be issued against the MATOC.
Q6: Where can a project be located?
A6: Projects may be located on "any federal property located within the Continental United States including Alaska, Hawaii, territories, provinces or other property under the control of the United States Government" for the period of the contract, or "on any properties available for use by the [developer] that are in the proximity of the . . . federal property" to which the electricity will be delivered. Although this response sounds like "anywhere," individual facility Task Orders may set out specific site requirements and Government-specific facility requirements that could impact the facility's location.
Q7: Does the Army want to buy renewable energy facilities that developers build for it?
A7: No. The Army wants to enter into long-term PPAs or equivalent contracts only. Developers will be responsible for all aspects of operating and maintaining the facilities.
Q8: Can a developer sell the energy to the Army and keep the renewable energy credits ("RECs")?
A8: No. Army policy currently requires that RECs "resulting from the renewable energy generated on-site to remain with the Government." What constitutes "on-site" is unclear, however. Projects may be located on "any federal property" or "on any properties available for use by the [developer] that are in the proximity of the . . . federal property." Because the Draft RFP specifically states that it is the government's intent to use the RECs to meet its renewable energy procurement target, we expect that all individual contracts will require that the government receive the RECs. However, prospective bidders may wish to seek confirmation of this point in comments submitted to the Army.
Q9: What types of facility qualify as "biomass"?
A9: "[A]ll technologies that utilize organic material to generate a fuel or energy such as, but not limited to, Biomass-to-Power, Waste to Energy, Refuse Derived Fuels, bio-fuels, etc." Due to the variability in available waste streams and the type of system required to convert the material to a usable form of energy, the technology-specific requirements will be provided in each individual Task Order request for proposals.
Q10: Can technologies other than solar, wind, biomass, and geothermal be bid in?
A10: The Draft RFP is unclear on this point. The draft sets out specific procurement quantities only for solar, wind, biomass, and geothermal technologies. However, Section C.4.h. defines "[a]lternative energy technologies" to mean "all other future renewable and current and future alternative technologies . . . [which] may include such items as fuel cells, ground source heat pumps, thermal recovery systems, ocean oscillation power generation systems, energy storage, batteries, micro-grids, etc." The draft RFP also has a very broad definition of "renewable energy," and it explicitly contemplates the possibility that combined heat and power or "alternative fuels" may be implemented. We recommend that developers of technologies that do not fit into one of the four prescribed procurement buckets file comments with the Army by the March 21 deadline asking whether the procurement will be strictly limited to the four technologies for which it has established kWh targets.
Q11: Could a bidder propose a cutting-edge technology?
A11: Probably not. The Draft RFP refers to "Commercial Technology," which "typically means a technology in general use in the commercial marketplace in the United States at the time the Task Order RFP is issued." The Draft RFP goes on to describe technologies "in general use" as those that have been used in three or more commercial projects in the United States in the same general application as in the proposed project, and each of those projects has been in commercial operation for at least five years. If a bidder has any doubt about whether the Army would view a given technology as commercial, the question may be a good one to raise in the bidder's comments.
Q12: What type of facilities is the Army targeting? Existing facilities? Greenfield development?
A12: Again, the Draft RFP is unclear on this point. While the document does not explicitly prohibit bids from existing renewable energy plants, the assumption appears to be that bids will come from facilities yet to be constructed.
Q13: What about National Environmental Policy Act ("NEPA") compliance?
A13: To reduce as much risk as possible to developers, the government intends to complete the requirements for NEPA compliance, to the extent practicable, before the issuance of a Task Order request for proposals for a particular facility. The government also intends to do the following before the issuance of a Task Order: (1) collect and share site data; (2) consult with the local utility company and utility regulatory authorities to ascertain and share constraints, procedures, and costs associated with grid interconnection; and (3) obtain necessary federal, state, and local agency approvals where possible.
Please contact any of the attorneys listed below if you have questions regarding the military's involvement in renewable energy development:
Energy Development:
William H. Holmes at (503) 294-9207 or whholmes@stoel.com
David L. Benson at (206) 386-7584 or dlbenson@stoel.com
David P. Hattery at (206) 386-7528 or dphattery@stoel.com
David T. Quinby at (612) 373-8825 or dtquinby@stoel.com
Chad T. Marriott at (503) 294-9339 or ctmarriott@stoel.com
Government/Military Contracting:
S. Lane Tucker at (907) 263-8411 or sltucker@stoel.com
Thomas A. Ellison at (801) 578-6957 or taellison@stoel.com
SELMA BIOMASS PLANT TO START IN 2013
Written by Argus Media
Mar. 13, 2012, London, UK - US biomass producer Zilkha Biomass expects its first large-scale commercial pellet plant to be operational by late 2013, the company has told Argus.
Zilkha acquired a 500,000 t/yr regular “white” pellet plant in Selma, Alabama, two years ago when the previous owners failed to make the business viable. Zilkha will adapt the plant to produce 275,000 t/yr of “Zilkha Black” pellets.
“We have about a year's worth of work once the offtake agreements for the plant have been finalised,” Zilkha vice-president for business development Larry Weick told Argus. “So we are looking at a late-2013 start-up. The previous plant was not successful due to several factors, but Zilkha is confident that operating the plant at 275,000 t/yr, well below the original design capacity of 500,000 t/yr, will be economically viable.”
The company is looking to establish several plants, including projects which would export through Mobile, Alabama, and also projects in British Columbia, Canada.
“It makes more sense to have multiple plants that are shipping through the same ports,” Weick said. “Although we cannot confirm how many more plants we are looking at constructing, our Selma plant is the first in a series of 200,000-400,000 t/yr plants that we will construct in the future.”
Zilkha Black pellets are not torrefied, according to Weick, but are pre-processed according to a technology acquired by the company a few years ago.
“Although both routes can theoretically produce a dense, waterproof pellet, there is a pretty clear difference between Zilkha Black pellets and torrefied pellets,” Weick said. “Essentially torrefaction drives the process conditions so hard and so far that the final material is really charcoal, whereas we use a completely different approach and avoid that more destructive route. As a result, we can make a good, hard, low dust pellet that is waterproof without incorporating any additives in the pellet.”
Zilkha believes that pre-processed biomass either as Zilkha Black pellets or perhaps torrefied material will be the preferred biomass product once it is readily available, due to its reduced capital costs for conversion, its coal-like properties, the safety benefits due to less dust and the fact that it can be stored outside — despite the higher purchase price of the fuel, Weick said.
“Our first cargo was loaded in the rain, and the fuel was absolutely fine,” he said. “Black pellets are around 10pc cheaper all-in, even though the purchase price is higher."
MAINE FOREST SERVICE CUTS RIBBON AT TWO PELLET BOILER PROJECTS
By Luke Geiver | March 16, 2012
•
Waterville, Maine, High School students will now have the opportunity to study wood pellet heat in person. Through the Maine Forest Service’s Wood-to-Energy Public Building Program, the school and city hall in Gardiner officially cut the ribbon on wood pellet boiler installation projects.
Each boiler will provide more than $105,000 per year in energy savings and create 23 new jobs. Earlier this week, the MFS held separate ribbon cutting ceremonies to announce the completion of the installation projects.
The Maine Forest Service used part of the $11.4 million it received through the American Recovery and Reinvestment Act in 2009 to fund the boiler installation projects. To date, the Wood-to-Energy Public Building Program has funded 22 biomass boiler projects in municipalities, schools, colleges, universities and a hospital.
At the Gardiner project site, two Maine Energy Systems OkoFen wood pellet boilers in a modular energy box structure were installed at the City Hall by Heutz Premium Pellets of Lewiston. Over the next 25 years, the $122,000 project will generate $195,000 in energy savings. The building also received a $61,000 ARRA grant. The municipality was the first in the state to install a modular wood pellet boiler system.
The $2 million Waterville High School project included a biomass boiler and the installation of fuel storage and handling areas. According to the school, the project will reduce heating costs by 40 percent. In addition to the funding provided through the MFS, the school also received $750,000 through an ARRA grant.
Bill Beardsley, commissioner for the Maine Department of Conservation, said he was pleased that both organizations had the foresight to make such significant infrastructure investments. “Local officials not only are supporting their own residents and taxpayers, but they also are making an important contribution to Maine’s forest-product industry and our energy independence,” he said.
PORT OF WILMINGTON SEES EXPORTS RISE; DIRECTION REMAINS MURKY
________________________________________
March 22, 2012By Alison Lee Satake
A growing demand overseas for North Carolina natural products led to an increase in container volume at the Port of Wilmington in 2011, reported ports officials on Thursday. Southern yellow pine is one such product; demand for it contributed to an 11.2 percent increase in container volume in 2011.
“Revenues are up and expenses are down,” said Jeff Strader, interim CEO for the North Carolina State Ports Authority. “That means a bottom-line profit for the authority to date this fiscal year, putting us in our strongest financial position since 2008.”
Of the 11.2 percent increase in container movement, exports rose 9.6 percent and imports rose 4.3 percent. Wood fiber and wood chips are being exported in bulk for lumber to feed the recovering housing market in European countries such as Turkey. The U.K. markets are demanding wood pellets from North Carolina that are compressed and used as a coal substitute to fuel power plants.
Revenue is up by about $3 million so far this fiscal year over the same period last fiscal year, said Strader, who presented at the Cape Fear Chapter of the N.C. World Trade Association event on Thursday.
In comparison, Wilmington’s neighboring competitor ports posted more modest growth in volume. Norfolk, Va. and Charleston, S.C. reported a 1.2 percent increase while Savannah, Ga. reported a 3.5 percent increase last year.
Strader said the N.C. State Ports Authority expects to see further growth in its bulk cargo, especially of agricultural products such as fertilizer and grain. Liquid fertilizer, UAN, is one such new commodity in Wilmington added in 2011.
Meanwhile, a statewide Maritime Strategy Study will be released at the end of April, which will inform the future direction of the ports.
“NCIT (North Carolina International Terminal) remains on hold,” Strader said. “The market has to drive the opportunity.”
He said the ports authority has studied the projected loss in business for the local ports with the expansion of the Panama Canal in 2014.
“That’s a question we’ve struggled with and it doesn’t have an absolute answer,” he said, because carriers are dealing with ever-changing global variables.
“Our focus is on the existing facilities,” he said. Improvements to the Wilmington Harbor will allow smaller class vessels.
“Federal funding has been allocated to the Wilmington Harbor Navigation Improvement Study that would improve safety along the navigation channel and help us better support businesses using the Port of Wilmington,” he said.
The state ports authority has transitioned from being under the state commerce department to the N.C. Department of Transportation, Strader said. But, he said the ports authority wants to maintain a relationship with the commerce department and has a staff person who acts a liaison with it to do so.
And he also said the state ports authority board of directors and the N.C. Secretary of Transportation Gene Conti will determine if and when a new CEO will be hired.
BIOMASS POWER COMPANY EXPANDING INTO U.S. MARKET
Mar 19, 2012
Imperative Energy Ltd., a provider of biomass heat and power solutions in the UK and Ireland, said it is expanding its presence in the U.S. market with the announcement of two corporate milestones.
The first is a partnership with Northline Energy, a Lynnwood, Wash.-based provider of biomass combustion systems. The collaboration blends Imperative's project finance and project development expertise with Northline's U.S.-based technical team to offer fully financed biomass solutions to users under long-term Energy Supply Agreements. A project pipeline with a capital expenditure of over $100 million in the next few years is already planned.
The second development is a proposed Bio-Park in Taunton, Mass. The park is modeled on a similar campus in Ireland designed by Imperative and partner, J.P. Prendergast. The Bio-Park will incorporate a biomass-fired CHP plant, wood pellet production facility and biopharma facility. A planning application for the Irish campus was recently submitted, while a detailed feasibility study has already been initiated for a $10+ million Taunton, Mass. project.
DRY BIOMASS MAKES A DIFFERENCE
February 10, 2012
By: Brett Hanson
Dry biomass makes a difference. Paying suppliers a price based on energy content rather than weight would improve boiler efficiency and the overall efficiency of the supply chain according to researchers.
It may sound obvious but the moisture content in biomass can greatly affect the efficiency of a boiler yet little is done in this country to dry the material before it is used.
Often, there is no incentive for suppliers to dry biomass prior to delivery; in fact, dry biomass may penalize a supplier if they are paid on a green tonne basis. FP Innovations is trying to change this by advocating a change from price based on green weight to price based on energy content and they have developed a tool to help.
Sylvain Volpé, a researcher with FPInnovations explains their research into the advantages of drying biomass.
“The energy available in the biomass and the efficiency of boilers is directly related to moisture content. Moisture is a concern because we’re delivering energy to the plant and the more water there is in the biomass, the less energy is available. Also, by transporting less energy in every truck load, we basically pay to deliver water to the plant, making the energy more expensive.”
Sylvain Volpé
Volpé says that depending on the season there are several simple strategies for drying and thereby increasing the every content in biomass. In the summer months simply storing the material at roadside where it is exposed to ample air flow and sunlight for three to four months can reduce moisture content significantly.
In the fall and winter when there is more precipitation, tarping the material at roadside is also highly effective. He recommends narrow piles be made to expose as much surface area to sunlight as possible.
“In the summer months, uncovered biomass piles can lose up to 10 to 25 % of its moisture. If those piles are not covered before fall and winter precipitations, moisture content can go up by 10 to 15 %. A reduction of 5% usually represents the breakeven point of the covering operation,” Volpé said. “But even if the breakeven point isn’t reached by the drying strategy, a reduction of moisture content can still help meet boiler requirements, which in the end can justify the operation.”
When the price of biomass is determined by the weight of material delivered only the user of the biomass benefits from dry material. However to determine a price based on energy content one needs to first determine the moisture level of the material and then calculate the amount of energy. That’s where FPJoule comes in.
“FPJoule is a tool that was developed with two main objectives in mind; first, increase awareness among biomass users that feedstock quality, mainly moisture content, has a considerable impact on the financial feasibility of an energy project; and second, that biomass is a financially viable alternative to replace fossil fuels to generate heat, especially in the case of fuel oil” Volpé said.
“FPJoule calculates the amount of energy available in the forest biomass according to three parameters; first, the species group (softwood, hardwood or mixed species), the part of the tree that is used (stem, bark, whole tree) and the moisture content. Then, using the traditional method of payment for biomass, either dollars per tonne or metres square and calculates the monetary equivalent in dollars per gigajoule or megawatt hour.”
FPJoule also calculates the annual amount of biomass required to replace the quantity of fossil fuel currently used and the annual potential savings.
Volpé says that FPInnovations is working on developing a fast and accurate way of determining the moisture content of biomass. The current method involves taking a sample from every truckload and drying it at 105 degrees for 24 hours or until it stops losing weight. From there the exact moisture content can be determined.
“You don’t have an instant result, what we are looking at right now is trying to find a proper tool that could quickly and as accurately as possible give you a reading of moisture content of biomass. The quick reading tools out there right now are not very accurate; they will give a reading plus or minus 5% in 65% of the cases. In a lot of cases you are quite far from accurate,” Volpé said.
“In Europe this method of payment for energy is being used but to my knowledge it is not used anywhere in North America,” Volpé said. “There is no reason why we shouldn’t pay for biomass based on its energy content rather than on a weight basis as we are doing right now.” ◊
INDUSTRY EXPERTS DISCUSS PERFECT STORM OF WOOD PELLET GROWTH
By Luke Geiver | March 23, 2012
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William Strauss, founder of Maine Energy Systems and president and CEO of FutureMetrics, demonstrated the operation of a fuel calculator to the crowd at the Northeast Biomass Heating Expo in Saratoga Springs, N.Y., March 21-23. His team developed the tool to illustrate the cost savings that come along with installing and using a wood pellet boiler.
Strauss used the calculator to explain that with a long-term, low-interest loan, a wood pellet boiler can be close to free. And that’s what MES wants for its customers. “We have a great argument that [installing a wood pellet boiler] will cut your heating costs in half,” he said. “But the hurdle is the initial capital costs.”
Laura Richardson, coordinator for the New Hampshire Office of Energy and Planning, detailed a program that helped homeowners deal with those initial capital costs. The rebate program provides 30 percent of the system and labor costs associated with purchasing and installing a new boiler for the end user, and assisted with 67 boiler installations in one year. “”We are stuck in New Hampshire with fuel costs,” she said. “We see the possibility for the bulk pellet industry to take off in New Hampshire. It is a perfect storm.”
That perfect storm Richardson referred to, was evident in her data that showed the fuel price disparity in February, when the price per million Btu of wood pellets in the state was roughly $15 and the price for the same volume of heating oil was nearly $30. The success of the rebate program has already helped Richardson see firsthand the growth of the wood pellet industry in her state. “We are excited about the leverage we are getting out of this,” she said. “The consumers are inspiring the industry to put up their own capital to expand in the region.” And her department continues to field inquiries from entrepreneurs interested in the pellet delivery and pellet manufacturing business, she said.
“Many people ask, ‘Won’t pellets get more expensive as time goes by?’” Strauss said. They won’t, he assured the audience. As the price of heating oil goes up, he said, the gap in price between it and wood pellets will only get bigger. That is, in part, because diesel fuel costs go hand in hand with heating oil costs, Strauss said.
Although both Richardson and Strauss were able to show examples of how a wood pellet boiler can be installed economically, Strauss did point out that if the perfect storm Richardson was alluding to grows even more, the wood pellet industry in the U.S. could take a step back. “By 2014, winter supply and demand will be different,” he said. “Demand will outpace supply and that will be bad for industry.”
His teams at MES and FutureMetrics already believe wood pellet boiler use is hitting or has potentially hit critical mass, as many people have a wood pellet boiler, or know someone who does.
“Consumers won’t switch (from oil heat to wood pellets) if they don’t see infrastructure there,” Richardson said.
For more information on the Northeast Heating Expo, visit www.nebiomassheat.com.
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