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Woody Biomass Feedstock Yard Business Development Guide a Resource and Business Guide to Developing a Woody Biomass Collection Yard

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Woody Biomass Feedstock Yard Business Development Guide a Resource and Business Guide to Developing a Woody Biomass Collection Yard Woody Biomass Feedstock Yard Business Development Guide A resource and business guide to developing a woody biomass collection yard Prepared by: The Federal Woody Biomass Utilization Working Group Chartered under the Biomass Research and Development Board Abstract This Guide provides an overview of the challenges and opportunities to establish a woody biomass feedstock yard in the United States. It includes information on biomass sourcing; facility site selection and equipment; biomass sort yards; biomass collection, concentration, and distribution; biomass handling, sorting, and economic considerations; business planning; marketing and distribution; financial feasibility analysis; and sources of technical assistance and funding. Additional references and resources are included. KEYWORDS: woody biomass; biomass feedstock yard; biomass sort yard; biomass collection yard; biomass concentration yard; biomass distribution yard; biomass handling, sorting, storage, and inventory; weight scaling. COVER PHOTOGRAPHS: (Upper Left) Wheelabrator biomass yard, Anderson, CA. This large feedstock yard supports a 54 MW power plant in northern Sacramento Valley. Forest residues from a variety of forest thinning operations create a colorful mix of feedstocks; mixing of the fuel reduces any inconsistencies in quality and moisture content. Date unknown. Source: Steve Jolley, former Wheelabrator employee. (Upper Right) Small mill residue loading station. Source USDA Forest Service. (Lower Left) Screening chipped woody biomass. Source USDA Forest Service. (Lower Right) Conveyor belt system and chip pile at Mt. Lassen Power plant, Westwood, CA. The truck driver operated hydraulic chip truck unloaders are at the far left of the photo. September 18, 2002. John Stewart. AVAILABILITY: This publication is also available online at: http://www.forestsandrangelands.gov/Woody_Biomass/documents/feedstock_yard_guide.pdf DISCLAIMERS: The use of trade or firm names is for information only and does not imply endorsement by the Federal Woody Biomass Utilization Group of any product or service. ACKNOWLEDGMENTS: The publication was made possible by efforts of Federal agencies and cooperators supporting the Federal Woody Biomass Utilization Working Group (Woody BUG). We especially recognize technical editors Fred Deneke, URS Corporation, John Stewart , URS Corp., and John ―Rusty‖ Dramm, Technology Marketing Unit located at the USDA Forest Service, Forest Products Laboratory. Technical contributors are recognized and include Dr. Ted Bilek, USFS Forest Products Laboratory, Dean Graham, URS Corp., Edd Bills, URS Corp., Michael Mungal, URS Corp., Craig Hustwit, DOE National Energy Technology Lab, Shawn Grushecky, West Virginia University, Curt Hassler, West Virginia University, Henry Bastian, US Department of the Interior, Bryce Stokes, Navarro Research and Engineering, Inc. in support of DOE Golden Field Office, Edmund Gee, US Forest Service Chief’s Office, John Ferrell, US Department of Energy, Scott Bell, US Forest Service Intermountain Region, Faline Haven, US Forest Service Chief’s Office, Steve Yaddof, US Forest Service Forest Products Laboratory, Lew McCreery, US Forest Service Northeastern Area, Craig Rawlings, Montana Community Development Corporation, and Dusty Moller, University of Nevada, Reno. We also thank several individuals, companies, and organizations who contributed their insights into biomass feedstock yard operations. We are most grateful for contributions and technical reviews from the following individuals and organizations: Susan Ford, USFS Rocky Mountain Region, Susan LeVan, USFS Forest Products Laboratory, Marcia Patton-Mallory, USFS Chief’s Office, Rick Tholen, BLM National Interagency Fire Center, Craig Jones, Colorado State Forest Service, Tad Mason, TSS Consultants, Bill Carlson, Carlson Small Power Consultants and Rob Davis, Forest Energy Corporation. CONTACT: Comments, suggestions, corrections or questions about this document should be directed through the Chair of the Federal Woody Biomass Utilization Working Group; for contact information, please see: http://www.forestsandrangelands.gov/Woody_Biomass/contact.shtml Table of Contents Introduction and Overview .................................................................................................................... 1 Chapter 1. What is a Woody Biomass Feedstock Yard? ..................................................................... 5 Chapter 2. Woody Biomass Basics ...................................................................................................... 7 Chapter 3. Critical Factors for Feedstock Yard Success .................................................................... 12 Chapter 4. Sourcing Woody Biomass ................................................................................................ 17 Chapter 5. Assessment and Procurement of Feedstock Sources ....................................................... 30 Chapter 6. Planned Programming Approach for Developing a Biomass Feedstock Yard ................ 35 Chapter 7. Developing a Marketing Plan ........................................................................................... 38 Chapter 8. Developing a Business Plan ............................................................................................. 46 Chapter 9. Preliminary Financial Feasibility Analysis ...................................................................... 49 Chapter 10. Biomass Feedstock Yard Site Selection .......................................................................... 53 Chapter 11. Biomass Feedstock Yard Operations .............................................................................. 63 Chapter 12. Financing a Feedstock Yard ............................................................................................ 70 Chapter 13. Enlisting Community Support ......................................................................................... 77 Chapter 14. Sources of Financial Assistance ...................................................................................... 83 Chapter 15. Sources of Technical Assistance ..................................................................................... 89 Chapter 16. A Feedstock Yard Project Checklist ............................................................................... 93 Appendix 1. Additional Resources ..................................................................................................... 96 Appendix 2. References Cited ............................................................................................................ 98 Appendix 3. Success Stories ............................................................................................................. 100 Foreword A woody biomass "feedstock yard‖ is a collection point or location for collecting and concentrating biomass from various sources. Biomass is collected, sorted, consolidated, processed and distributed to a variety of markets and uses. It provides an alternative in the biomass supply chain that could have benefits over traditional woods-to-processor delivery scenarios. This guide has been designed for those interested in developing a business to supply woody biomass for forest products, wood energy and other uses. The guide provides information about the development, operation and management of a woody biomass feedstock yard. For example, a woody biomass feedstock yard could be developed to help solve a disposal problem, recover and utilize a natural resource, contribute to the local economy and the environment, or as a way to be a better steward for taxpayers. A woody biomass feedstock yard could help guide a ―woods wise‖ person to own and operate a small business enterprise. Woody biomass is an abundant and renewable feedstock for energy and other uses and may present an opportunity for those willing to make investments. This guide provides information and guidance on the establishment of a business and ways to improve the operation of an existing business. Investors looking at renewable energy may see opportunities for tapping into the potential of woody biomass, but may be uncertain how to make the connection between the available biomass resource and opportunities associated with emerging biofuels and bioenergy markets. This guide helps provide a way to make that connection to the biomass supply chain and to evaluate woody biomass opportunities. This guide is only one of several resources. It is only a guide – one instrument in the creation of a new business in the area of renewable energy. All those contemplating the development of a biomass feedstock yard are urged to carefully study this guide and consider the resources available in evaluating opportunities. Success is based on objective planned programming approach to business development as described in chapters 3, 4, 9, 10 and 11. As always, individual and collective creativity, resourcefulness, and flexibility will also help determine any resulting success. Introduction and Overview The emerging importance of reliable domestic sources of renewable energy has brought renewed emphasis on utilizing wood and woody biomass as a source of thermal heat, electrical generation, combined heat and power, transportation fuels, and a wide range of biobased products that are currently produced from fossil fuels. These potential uses, combined with the need to address forest health issues nationwide, present unique new economic opportunities for those who are well prepared to
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