Sealaska Wood Pellet Boiler Conversion Signature Project Presented - - PowerPoint PPT Presentation

Sealaska Wood Pellet Boiler Conversion Signature Project

Presented to the Denali Commission September 28, 2009 Emerging Energy Technology Grant $843,160

Project Summary

• “Signature” energy project

– Green – Renewable – Sustainable

• Create the demand for Southeast Alaska

wood residue and fiber

• Demonstrate feasibility, effectiveness and

savings of wood heat for large commercial and municipal buildings

Saves 35,000 gal diesel consumption Reduces 900 tons GHGs

Viessmann/KOB Pyrot 220

Widely used in Europe for Green energy

Sealaska Plaza Signature Project

Wood Pellet Distribution System

Sealaska Plaza Pellet Delivery Design

Replicability

How to grow an Industry

• Create the demand to encourage a

production facility? OR

• Build a production facility to encourage

demand?

• Both must occur
• Very difficult to do simultaneously
• This project creates commercial demand
• Demonstrates feasibility

– for other building conversions – new construction

Fairbanks 62% 5 1465 $7.12 Delta Junction 13% 1 300 $5.00 Wasilla 6% 2 40* $7.81 Anchorage 9% 8 143* $7.74 Kenai 1% 1 25 $6.99 Seward 1% 1 12 $8.20 Kodiak 1% 2 14.2* $8.50 Valdez <1% 1 11 $8.25 Haines <1% 1 0.4 $13.55 Hoonah <1% 1 2 $8.99 Juneau 6% 3 140 $6.81 Sitka 1% 1 14.6 $6.99 Ketchikan 1% 2 31.5 $5.99 Glennallen ?% 1 (declined)

City % of Statewide Demand # Stores Tons sold in past year

• Avg. price/bag

* incomplete data

Sept 2009 Sealaska Mater Engineering Total pellet demand in Alaska 2359 Tons 4,718,000 lbs # of 40lb bags/yr = 117,950 Insufficient demand currently in Southeast to support production facility

BC Pellet growth not from residences

Metric Tonnes Good supply of pellets from British Columbia to allow us to establish demand to encourage construction of production facility

Wood Pellets:

Savings over diesel fuel Local product Stable price

1/3rd price

• f diesel

Demonstrates sufficient Southeast commercial demand

Demonstrates sufficient Southeast commercial demand

Biomass Supply for Production Facility After Demand is created

Readily Available Biomass

Nice sized small pellet mill (production economics

Viking Lumber/Sealaska L.O.I.

• Three prong approach:
• 1) Feedstock Sourcing Analysis
• 2) Manufacturing process of material
• 3) Customer Base

Others Agree!!

The Beck Group and TNC conclusions:

• Lower cost sawmill residues available
• Bioenergy can work in Southeast

Alaska

Additional Biomass Material

430,000 acres clearcut on Tongass National Forest

• 270,000 acres not managed
• Creates an opportunity to manage

– Commercial thinning – Biomass harvest

• Additional 43,000 bdt per year (Terra Verde Consultants)

Biomass Crop

Benefits of creating this industry

• Creates alternate green energy from renewable

and sustainable wood residues

• Helps to

– converts unmanaged forests to managed forests – Makes uneconomic timber sales economic

• Helps to stabilize Southeast’s timber industry

– Loss of contractors – Loss of capacity and markets – Work force jobs and contracting – Community infrastructure to support logging – Loss of contractor contributed capital (barges, equipment, tugs, shipping, etc.)

Perspective

280 tons of pellets per year for Sealaska Plaza equals

– 16 log truck loads of timber – One day of timber harvest – 35,000 gallons of diesel per year – 900 tons of greenhouse gas emissions

Conclusions

• Will improve use of our forests
• Create:

– renewable demand for unused resource – sustainable alternate energy fuel

• There is a demand for alternative energy

heating systems

• Our Signature Project saves $ money $

and energy

End

• f

Presentation Howa’a (Haida) Gunalchéesh (Tlingit) Thank you

Photo of Nutkwa Lagoon Reversing Falls