Bioenergy for Northern Applications: MLTC Biomass, Wood Pellets, District Heating and Power Generation Presentation to Northern Food Security Workshop – Nov 7th, 2012 Ben Voss, P.Eng President & CEO MLTC Resource Development LP MLTC & Bioenergy • MLTC RDI is 100% owner of NorSask Forest Products, Saskatchewan’s largest sawmill • MLTC RDI is one of Saskatchewan’s most successful tribal council corporate groups with a significant track record in business • Bioenergy is a viable future industry for Northern Saskatchewan and MLTC RDI is leading several projects which demonstrate the potential MEADOW LAKE BIOENERGY CENTER MLTC Resource Development LP (“MLTC RDI”) is leading the development of a biomass power generaBon project in Saskatchewan. MLTC RDI has executed a 36 MW power purchase agreement (25yr) with SaskPower. MLTC RDI, as project owner, provides development funding, fuel, site, licensing and permiOng. MLTC RDI has, or will partner with experienced and credit worthy EPC / O&M counterparBes MLTC RDI’s strong presence in forestry will provide iniBal working capital funding for fuel inventory. In addiBon, the power project triggers major new business plans for the MLTC group of companies to de‐risk the Power project: ‐ Expansion of Norsask ‐ Expansion of trucking & forestry division ‐ Growth and diversificaBon of the forest fibre procurement operaBons 3 MLTC / NorSask Wood Pellets • MLTC has constructed Saskatchewan’s first wood pellet plant (pilot / demonstration) • Can produce up to 15 tonnes/day • 40 lb Bags (pallet of 50), wholesale bulk or minibulk bags • Is currently supplying local markets on a trial basis • Also provides the supply for 5 district heating demonstrations MLTC Wood Pellet Plant Shipment of bagged pellets for Beauval Bulk storage of pellets Softwood (Spruce-Pine) wood pellets MLTC District Heating • 5 demonstration projects are using large boilers to burn our wood pellets to heat in various applications – – – – – Island Lake School Canoe Lake Housing Sub division (4 houses) West Wind Aviation Hanger MLTC Northern Trucking Shops NorSask Sawmill Plant West Wind Aviation Installation Canoe Lake Installation Economics of Wood Pellets in Northern Sites • Wood Pellets are the lowest cost heating fuel • Best environmental footprint (zero GHG) • Most sustainable fuel supply • Highly reliable and immune to long term energy cost fluctuations (stable cost) *Natural Gas is not available North of Meadow Lake or LaRonge Conclusions • Bioenergy is viable in Northern Saskatchewan for electricity generation, heating or co-generation applications • Cost of fossil fuels is very high compared to wood pellets • Wood pellets are a safe, reliable and stable long term option for heating facilities such as greenhouses Acknowledgements • Go Green Fund • Western Diversification Canada • NRCan