Renewable Energy from Residual Low-Grade Wood Gabriel Vincelette Business Development Manager New England Wood Pellet Schuyler Facility Wood Pellet 101 Wood Source + Bio Refining = Efficiency (Renewable + Heating Fuel) Manufacturing Process, Short { { { { Clean paper grade sawdust and chips (no bark or dirt) All woods can be used. Wood must be “brewed” correctly it’s a form of art Processed by hammering, drying, compressing, bagging and delivered Sold to consumers through a independent retailer to be used for heat. Why Pelletize? A usable bio-fuel - you can control - easily transport - warehouse - safe and available Wood Pellets is Fuel { { { Heating with a pellet stove at home Commercial and bulk systems for complete structure heating Co/Generation Power and Heat combination projects taking place with proven technology and available today, not in 5-15 years Renewable, carbon-neutral and proven alternative fuel. Simple, proven, and available . . . still not sexy enough to get in the main stream renewable club in the US. Advantages of Wood Pellets { { { { { { Reduces are dependence on imported fossil energy Low emission: can install in areas with wood burning restrictions Efficient: cleanest burn of any solid fuel. Near total combustion (around 98.5%) – no creosote allows installation of a pellet stove by direct vent. Sustainable, renewable, and indigenous source of fuel: wood purchases stay in local economy. Low ash: ½ pound of ash in every 100 pounds or .5% Environmentally superior source of heat: CO2 “neutral” both in combustion and storage. Net Energy Balance { NEG = EnergyConsumable − EnergyExpended z The amount of energy used to create a energy product from harvest to use (combustion) z WOOD PELLETS = ALL AVG. ETHANOL = Geothermal = z z Source: NET ENERGY STUDY by University of Wisconsin Green Bay, Dr. John F. Katers .78 .48 .49 Wood Pellets, a Promising Part of the Solution { Refined product of biomass { Made from waste and low-grade wood z Safe, clean, and inexpensive a simple process z Consistent size, shape, and weight Energy dense to save space Useful z { z Easily stored, distributed, and consumed Ideal for heating and combined heat and power Priced competitively vs. alternatives You can feel good about using them z { { z Renewable z Effectively carbon neutral z Locally produced New England Wood Pellet Facilities Jaffrey Plant and Biofuel Energy Systems Schuyler Wood Pellet LLC Palmer Packaging and Reload Center Jaffrey, NH Facility Palmer, MA Facility Schuyler, NY Facility Schuyler, NY Facility Schuyler, NY Facility Schuyler Wood Pellets Stats { { { { { { 100,000 tons per year production – energy equivalent of 12 million gallons of oil – enough to heat 35,000 homes 200,000 plus tons per year of wood procurement $10 million +/- per year in wood and materials puchases, circulating in local economy 20 full-time production employees; other jobs created in wood supply, pellet distribution, retail sales 45 +/- trucks per day – all through local contract hauling for wood, packaging, and delivery of finished products through NYS Still accepting new retail relationships Wood Procurement & Raw Materials Where do we get our material from? Does this really affect my local economy? Regional Procurement Sourcing raw materials in a 100 mile radius procurement zone Primary Wood Using Sources etc. { { { { sawmills (hardwood/softwood) used pallet grinding facilities in-woods chipping operations Roundwood producers Secondary Wood Using Sources { { { { furniture manufacturing facilities flooring manufacturing facilities moulding manufacturing facilities other minor wood using facilities Manufacturing in Brief Heating with Pellet Fuels: Emerging Heating Technology and Bulk Fuel Distribution Options Traditional way to use pellets { { { { $1,500-$3,000, <85,000 BTU 30-50 lbs/day during winter Thermostatically controlled Great choice for ambience & basic home heat Harman Pellet Boiler Attached to radiant floor heat at Schuyler NY Facility Heats up to 3,000 SQFT Output at 100,000 BTU Harman Pellet Furnace Can be attached to existing air ducts in a house. Using pellet technology to heat and save money. Bulk Delivery and Storage The next phase in convince and industrial usage for North America. ESFA Central Bulk Heating Systems { Public Buildings z z z { Municipal Building Court Houses Public Safety Schools z z z { Business z z z { High Schools Colleges and University Sports Complexes Multi-family z z z { Warehouses Malls Development Apartments Co-Op Green Developments ETC. The New York State Market { { { NYS is the largest consumer of #2 heating oil for heat in the US. NEWP is dedicated to provide commercial and retail consumers a dedicated, high quality consistent fuel through Wood Pellets. A secure market being created for entrepreneurs in Upstate NY to design and implement innovative heating solutions Key Concepts Understanding key concepts which will shape our Bio-Mass Model in CNY. Wood Chips as a Feed Source { Residue Chips z { Produced as a byproduct of primary activity (traditional logging operations) Primary Fuel Chips z Produced solely for the use as a fuel Residue Chips (The past years) { { { { Decrease in availability Decrease in the lumber market stock availability Logging for primary pulp markets Logger are just holding on { Sources z z z Furniture Factories Traditional Logging Wood Product Manufacturing Primary Fuel Chips (In the next years) { { { { { { Tradditional loggers who have cash New Bio-mass logging Municipality wood lots { A increase in demand Larger logging operations Specialized crews Side operations as pulp plant operations begin to decline The Market Equilibrium { { Higher prices paid for wood fuel chips will stimulate market investment The transportation infrastructure depends on loggers who are barley hanging to survive Bio-mass projects can stimulate the market however it will take time to build a stable market. Feed Stock and the Region { { { { { Foresters Land Owners Lumber Operations Local Municipalities Round Log Chippers { All must work together to understand manage and decrease the unused bio-mass which can now be used to create a strong renewable market. Conclusion, Wood Pellets { Wood Pellets are a part of the Renewable Thermal Energy Solution z z z z { Supporting Regional Economies Carbon Neutral Practical and Proven Priced Competitively to Fossil Fuel The ability to keep jobs, energy dollars, and clean technologies local Progressing the Market Forward { { { Realize there is opportunity, but effective solid solutions must take place Tax incentives for consumers when buying a pellet burning appliance The pillars of pellet success z z z z z Community Awareness Available Wood Source Clear Government Support Sustainable Market Large Scale Commercial Projects For more information New England Wood Pellet LLC www.pelletheat.com Direct E-mail: gabe@pelletheat.com