Transcript Document

Biomass Heat as a Catalyst for
Community Development
in the Boreal Forest
NADF Forestry Expo
April 22, 2015
Project Partners
Research Team
• Confederation College Applied Research
• Lakehead University Faculty of Natural Resources Management
• Biothermic Renewable Energy Systems
•
•
•
•
Collaborators
Participating Communities
Biomass Innovation Centre
Hydro One Remote Community Services Inc.
University of Minnesota, Duluth Campus
Funders
• TD Bank Group
• Independent Electricity System Operator (IESO)
• Biomass Innovation Centre
Purpose
To determine if two communities in
Northwestern Ontario (one remote, one road
accessible (not connected to the natural gas
grid) are viable candidates for implementing
biomass district heating in their communities
What was Assessed?
• Analysis of sustainable fuel (wood) supply
• Volume and cost of fossil fuels and/or
electricity consumed to produce heat on
annual basis
• Analysis of community infrastructure to
determine best district heating option
(single district heating plant/multiple
plants/single use residential or
combination)
What was Assessed? (cont’d)
• Analysis of savings ($ & environmental) by
switching to biomass
• Wind/solar potential
• Economic impact through job creation
• Permitting/approvals required
Why Biomass Heat?
• Many Ontario communities rely on high
cost oil, propane, or electricity for heat
• High cost of heating a financial burden on
communities; can/will restrict economic
growth
• Reduce environmental concerns
• Reduce greenhouse gas emissions
• Most importantly – local employment
opportunities
Why Biomass Heat?
80% of residential energy
use is for heat and hot
water!
Figure - Residential Energy Use in Canada by activity, 2010 Source: Energy Efficiency Trends
in Canada 1990-2010, Natural Resources Canada.
http://www.nrcan.gc.ca/energy/products/categories/heating/13740
What is Biomass?
• Forest wood
• Underutilized tree
species
• Logging residue
• Salvage from:
• Fire
• Blowdown
• Insect damage
• Disease
What is Biomass Heat?
•
•
•
•
•
•
•
Biomass Innovation Centre
Renewable
Reliable
Clean
Secure
Economical
Safe
Minimal
Greenhouse
Gas
Emissions
District Heating
• Central heating plant with hot
water supply and return
underground piping to buildings
• Most efficient and cost effective
when buildings clustered
• High initial capital costs for
installation of plant, piping and
heat transfer into buildings
• Low operating costs
Biomass heat ideal for district
heating
• Bulky; requires larger handling
and combustion facilities
• Larger plants offer lower cost
per KW
Initial Results - Heat
Community A: Remote Fly-In
District heat requirement (All commercial and institutional
buildings and homes. Including Domestic Hot Water (DHW):
• 5.3mW for entire community (excluding airport complex)
• Estimated capital cost for installation and commissioning:
$18,410,400
• Estimated yearly savings of biomass fuel vs. Oil fuel: $637,000
(not including capital costs)
• Estimate of payback if 100% financed:24 Years+
• Economic benefit
• Construction jobs (if 10% of construction cost—$1,841,040)
• Plant and equipment maintenance jobs—$100,000/year
• Forest management and harvesting jobs - $225,000/year
Initial Results - Heat
Community B: Road Access
District heat requirement (including domestic hot water):
• 8.8 mW for entire community
• Estimated capital cost for installation and commissioning—
$24,059,000
• Estimated yearly savings of biomass fuel vs. electricity—
$1,014,500 (not including capital costs)
• Estimate payback if 100% financed: 24+ years
• Economic benefit
• Construction jobs (if 10% of construction cost—$2,405,900)
• Plant and equipment maintenance jobs—$150,000/year
• Forest management and harvesting jobs—$250,000/year
Other Opportunities:
District Heat for Large Heat Load Clusters
• Feasibility in district heating for
clustered large heat load buildings
• 1.5 MW heat plant meets demand of
most larger buildings
• Lower construction, piping and
maintenance costs
• Construction and commissioning costs
- $3million
• Payback on investment
- 12 years
Initial Results - Forest Inventory
Community A
• Estimate annual allowable
harvest (AAH):
• Reserve land = 3,372 m³
• Crown land = 25,128 m³
• Total AAH =
28,500 m³
• Primary species—black spruce,
trembling aspen, white birch,
jack pine
• Estimated annual volume
required for district heating:
10,000 m³
Initial Results - Forest Inventory
Community B
• Estimate annual allowable
harvest (AAH):
• Reserve land = 149,208 m³
• Crown land =
91,809 m³
• Total AAH =
241,017
m³
• Primary species are jack pine
and black spruce
• Estimated annual volume
required for district heating:
17,500 m³
Initial Results - Economic Impact (employment)
Community A
•
•
•
•
Biomass fuel harvesting/transportation/processing  5 full time
District heating plant operation & maintenance  1 FT
District heating maintenance (installation & service)  1 FT
Administration:
• Supervisor (plant operation, fuel procurement)  1 FT
• Administrative assistant (bookkeeping, billing, payroll, etc.)
 1 part time
• Forestry (planting, inventory, planning)  1-3 PT
• Total employment:
• Full Time = 7
• Part Time = 2 - 5
Initial Results -Economic Impact (employment)
Community B
•
•
•
•
Biomass fuel harvesting/transportation/processing  5 FT
District heating plant operation & maintenance  2 FT
District heating maintenance (installation & service )  1 FT
Administration:
• Supervisor (plant operation, fuel procurement)  1 FT
• Administrative assistant (bookkeeping, billing, payroll, etc.)
 1 PT
• Forestry (planting, inventory, planning)  1-3 PT
• Total employment:
• Full Time = 8
• Part Time = 2 - 5
Initial Results - Solar Potential
Community A
•
•
•
•
Airport measured 4.49 hrs avg. daily sun
School measured 4.37 hrs avg. daily sun
Anything >4 hrs good
30kW array has potential to save
$3200/yr. at $0.086 kW/h; $32,700/yr. at
Std. “A” $0.88 kW/h at airport
• 240 kW array has potential to save
$25,600/yr. at $0.086 kWh; $261,700/yr.
at $0.88 kW/h at airport
• Estimate only—higher installation and
transportation costs will reduce savings
but potential high
Initial Results - Wind Potential
Community A
• Actual average wind speed of
5.27m/s (19 km/h) from Canadian
Wind Atlas considered on border
of marginal and acceptable for
viable wind project
• Higher wind speeds are common
locally at lake shorelines
• Measuring wind speeds over a
year will produce better result
(Could be part of
college/university project)
Initial Results - Solar Potential
Community B
• Water treatment plant
measured 4.49 hrs. avg. daily
sun annually with 10 other
sites >4 hrs. daily sun
• 24 kW array would save
$2600/yr. at $0.086 kW/h;
$4300/yr. at $0.14 kW/h
• If project qualifies for Feed-InTariff program, savings would
be much higher
Initial Results - Wind Potential
Community B
• Average wind speed of 4.91m/s
(17.5 km/h) (Canadian Wind Atlas)
• On border of marginal and
acceptable for viable wind project
• Higher wind speeds common
locally at lake shorelines
• Measuring wind speeds over a year
may produce better results (Could
be part of college/university
project)
Policy—Current Forestry Regulations
Community A
• Remote—winter road, fly-in
• Outside Area of Undertaking (AOU)—Far North Act
• Reserve land—federal Indian Act & Canadian Environmental
Assessment Act (CEAA)—20,126 ha
• Traditional territory covers provincial Crown
• Signatory to Treaty #9 (Ontario & Canada)
• No provincial policy for low volume harvest on Crown land
for community energy use
Policy—Current Forestry Regulations
Community B
•
•
•
•
•
•
Within AOU—Crown Forest Sustainability Act (CFSA)
Reserve land—federal Indian Act & CEAA—26,800 ha
Traditional territory covers provincial Crown land
Signatory to Treaty #3
Holds forest license on FMU
Access to biomass fibre from Crown land from logging
operations
Policy Requirements for Reserve Lands
Community A
• Federal regulations exist for harvest on reserve lands
reserve—Indian Act, Indian Timber Regulations (ITR)
• Permit required to harvest on reserve land reserve—
Indian Act, Indian Timber Regulations (ITR)
• Free of charge if used for personal or band (ITR)
• If wood is sold, permission needed from Band Council
(ITR)
Policy—Personal/Community Use
on Reserve Land
“A person acting on the behalf of a band may, without
a licence, cut timber on behalf of that council of the
band on any reserve lands”…”if the timber and any
product made from timber is intended for use on First
Nation lands of the band” (ITR)
Will larger volumes for community energy use will fall
under this regulation?
Policy—Provincial Crown Land
Community A
• Community-Based Land Use Plan (C-BLUP) under Far
North Act
• No clear guidance from province on harvesting for
personal use on Crown land (implications of
Supreme Court of Canada decisions Sappier & Gray
2007)
• Permitting decisions by District Manager
Policy—Provincial Crown Land
Community B
• Licensing, revenue collection, allocation of resources,
scaling, auditing, forest management planning (CFSA)
• Class EA for Forest Management (MNR-71) implemented
through Forest Management Planning Manual
• Update and incorporate biomass into wood supply chain
• Fuelwood permit for personal use only
Policy & Regulations—
BDHP Construction & Operation
• Projects proposed on Reserve lands subject to CEAA, 2012
• Ensure no significant adverse environmental effects before
beginning
• Aboriginal Affairs and Northern Development Canada
(AANDC) has Environmental Review Process (ERP) to assess
proposed projects on Reserves
• If potential to directly or indirectly impact natural
environment off Reserve, Environmental Protection Act (EPA)
or Ontario Water Resources Act (OWRA), both administered
by Ontario Ministry of the Environment and Climate Change
(MOECC), will have jurisdiction
Recommendations to Address Policy
Requirements
Community A:
• Develop interim licensing for community harvests while
appropriate and reasonable FMP is developed
• Re-evaluate requirements for C-BLUP (shorten timelines,
simplified requirements)
• Develop fund for communities to assist in developing FMPs,
business plans, etc.
• Develop a network which can provide technical expertise and
guidance
Community B:
• Update existing FMP to allow for harvesting residuals from
cutting operations or road clearances
• Agreements with other FMU’s and industry to source
biomass
Related Opportunities
• Small sawmill for utility
construction material: larger
material from biomass harvest to
be utilized potentially providing 1
additional FT employment
opportunity
• Greenhouse (still under study) to
produce vegetables and possibly
fruit year round; also produce
tree seedlings for reforestation
• Potential to provide an additional
1 FT and 2 PT employment
opportunities
We wish to thank the two
communities for their
participation in this study
and the hospitality shown
to the research team
Biomass Heat as a Catalyst for
Community Development
In the Boreal Forest
(visit us at booth 11)
Brian Kurikka: [email protected]
Vince Rutter: [email protected]
Mike Hosszu: [email protected]
Stephanie Seymour: [email protected]
Paul Robitaille: [email protected]
Questions?