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Bioenergy in and around BC

November 22, 2013

David Dubois - Project Coordinator Wood Waste to Rural Heat Project

Wood Waste to Rural Heat - Project Goals  Work with communities, First Nations and Not-for-Profits assisting them to understand and adopt biomass heating solutions  Previously known as the Green Heat Initiative  Independent source of Information What does Wood Waste to Rural Heat (WW2RH) do? • Free technical assistance to help determine the best biomass heating solution for the specific application based on the proponents needs. • Developing business cases to help proponents make critical decisions. • Commercial, institutional, and municipal not residential Biomass Heating - Using Wood Chips or

Pellets as Fuel Tatla Lake School Enderby District Heating System

Baldy Hughes Treatment Centre Biomass District Heat

After – Biomass Fired Before – Oil Fired Biomass Heating does not refer to…

http://planning.montcopa.org/planning/cwp/fileserver,Path,PLANNING/Admin%20- http://www.thefullwiki.org/Beehive_burner %20Publications/Renewable_Energy_Series/Hydronic_heaters_web.pdf,assetguid,63 e45ed6-2426-4548-bc6dcfb59d457833.pdf

How much do I need? Typical Biomass Consumption by Usage 500000 45000

450000 12,000 Truck Loads 40000 1,000 400000 Truck 35000 Loads 350000 30000 300000 25000 250000 20000 5,000 Truck Loads 200000 15000 150000

Tonnes of Biomass per Year Biomass of per Tonnes 10000

100000 20 5000 Truck 50000 Loads 0 0 5 MW Enderby Pellet Plant Power Plant 5MW Community EnderbyCommunity Electricity Electricity Nakusp – Current Energy Costs

Unit Fuel Type Sale Retail Price $35.00 size

Arena $30.00 kWh Electricity ¢7.4-10.1/kWh ESB $25.00 kWh ¢9.8-10.9/kWh Electricity Public Works $20.00 kWh Electricity ¢8.6-11.0/kWh

$15.00 ESB Propane Litres ¢55.3-77.7/l Cost$/GJ Public Works $10.00 Litres Propane ¢57.0-77.9/l Bone $5.00 Hog Fuel/ Dry $5-100/Tonne Wood Chips $- Tonne Pellets Tonne $190-230/tonne (Retail) Nakusp

• Current Work High 1) Building inventory review School i. Current Heating System ESB ii. Current fuel costs iii. Physical Layout 2) Preliminary review Total Distance = 700 m (currently being done) 3) Detailed Case study (early 2014) • WW2RH no cost so low risk • 250 BDT or 10 ‘B’ trains per Arena year • First Step

Business Components of a DH System Input from Forest

Heat Fuel Supply Heat Production Distribution

Output to Individual Business Components Heat Clients

Combined Business Components

Single DH Business Ownership of DH System

Private Public Ownership Ownership • Anchor Client • Sawmill • Village • Logger • Regional District • Woodlot • Province • Value added Partnership • Other • Community Forest • Not for profit • For Profit Fink District Heating System in Enderby – Technical Specs

• 540 kW wood chip fired boiler • 640 m of trench • 8,400 l heat storage tank • 50 tonne fuel storage bunker – enough for two 53’ trucks to unload • Natural gas peaking boiler • Consumes 800 tonnes/year of biomass • Biomass is from sawmills, wood manufacturing and clean construction debris • Greenfield Development

Heat Storage Tank

Fuel Storage Bunker Fink District Heating System in Enderby – Con’t Lillooet REC Centre Case Study

 Using propane to heat swimming pool, arena, library and gym  Installed 400 kW pellet boiler with 45 tonne storage silo  Also did some building and mechanical system upgrades  Full case study available at www.ruralbcgreenenergy.com Lillooet Capital Cost and Funding Capital Costs Funding

Project Management and $111,000 Gas Tax Innovation Fund $467,000 Engineering

District of Lillooet Biomass Boiler $312,000 $238,000 Reserve

Building Upgrades $207,000 TOTAL $705,000

Sub-Total $630,000

Taxes $75,000

TOTAL $705,000 Lillooet Rate of Return

Without Boiler Only Grants

Total Capital $411,000 $411,000

DoL Investment $140,000 $411,000

Savings1 $26,000 $26,000

Payback 5 Years 16 Years

NPV2 $97,000 -$21,000

IRR 17% -1%

1. Does not include avoided costs of carbon 2. 15 years and 7% Firehall Granisle Capital Cost and Funding Funding

Gas Tax Innovation Fund $34,500

OBAC $20,000

Village $6,300 Capital Costs TOTAL $60,800 Project Management and $6,200 Admin

Biomass Boiler $32,500

Container and Upgrades $22,100

TOTAL $60,800 Granisle Rate of Return BFP – Without Gas BFP – with all BFP – without Tax and OBAC grants OBAC $60,800 Total Project Cost $60,800 $60,800

$0 OBAC Grant $20,000 $0

$0 Gas Tax $34,500 $34,500

$60,800 VG Contribution $6,300 $26,300 (including In-kind)

Fuel Savings $3,900 $3,900 $3,900 Simple Payback < 2 Years 8 Years 16 Years

Net Present Value $42,300 $22,300 -$12,200 (20 years and 5%) Internal Rate of 2% 62% 14% Return Biomass to Electricity in Operation

Current Power Purchase Agreements with BC Hydro in Operation Non Pulp and Paper  Atlantic Power - Williams Lake – 68 MW  Louisiana Pacific – Golden – 8 MW  Tolko – Armstrong – 20 MW Pulp and Paper  Zelstoff Celgar – Castlegar – 78 MW  Canfor – Prince George – 60 MW  Cariboo Pulp – Quesnel – 61 MW  Paper Excellence – Skookumchuk – 51 MW  Harmac - – 55 MW  Howe Sound Pulp and Paper – Port Mellon – 112 MW  Domtar – Kamloops – 76 MW  Catalyst Paper – Powell River – 38 MW

Biomass to Electricity in

Development

• Current projects in development as with BC Hydro  West Fraser - Chetwynd - 12 MW  West Fraser – – 12 MW  Tolko – – 4.9 MW  West Fraser x 3 – Quesnel – 13.7, 14.8, 14.8 MW  Fort St. James Green Energy – Dalkia – 40 MW  Merritt Green Energy – Dalkia – 40 MW  Intercon Pulp - Canfor PG – 32 MW  Northwood Pulp – Canfor PG – 63 MW  Conifiex x 2 – Mackenzie – 36, 11.4 MW

Biomass to Electricity in

Development • Current Options 1. Standing Offer - 50 kW to 15 MW 2. Net Metering – up to 50 kW 3. Integrated Customer Solution 1 MW electric = 5000 BDT/yr. . Nechako Lumber Vanderhoof OR . 2.2 MW ORC 200 B’ trains/yr. = 4 B’ . Reduces Electricity by 1/3 trains/wk. • Current Rates $100-130 MWh? • Long process with upfront costs Contact

For more information www.woodwaste2ruralheat.ca Or Contact me David Dubois, BSChE Project Coordinator [email protected] 800-661-2293 250-457-7319