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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?