Transcript Slide 1
Tsilhqot’in Power Project Phase II Call CEBC 2010 JEFF PAQUIN 1 TSILHQOT’IN POWER PROJECT 34 MW OWNERSHIP Smithers Prince George Hanceville Williams Lake Kamloops Victoria Nelson Vancouver 2 50/50 Joint Venture between Tsilhqot’in National Government (TNG) & Western Biomass FIBRE SUPPLY • Very detailed, up to date fiber supply analysis complete. • Formal presentation to MOF, District and regional Managers Sept 20, 2010 Organization Chart Tsilhqot’in Power Corp. 3 Western Biomass Power Corp. Tsilhqot’in Energy Holdings Ltd. Run of River Power Inc. Tsilhqot’in National Government 78km West of Williams Lake next to TNG Sawmill. Site Control: (Block C) owned by Joint Venture. 4 5 HWY 20 TRANSMISSION Study Completed 6 PROJECT ATTRIBUTES Reforestation No more open slash burning. Fits government policy initiatives Harvesting Accelerating reforestation. Power Plant Fire Protection 130 permanent jobs (in) direct Capital Investment $140 million Research, Ecology & Forest Management 7 Project Attributes continued; Including 37 jobs in bio energy plant. 35 jobs at sawmill. 80 jobs from planning, road construction, harvesting, hauling. 5-1 FTE multiplier the Cariboo Region = 735 jobs. Development of Hwy 20. mining, Oil & Gas (Nechako Basin), green energy clusters. Improving economics for Traditional forestry industry Addressing flooding, riparian damage to salmon bearing rivers, wildlife management with blow down Much needed Annual Revenue into Northern economy Sustainable and environmentally sound 8 First Nation Consultation and Accommodation: Began with addressing serious local Issues 2006. 9 BETTER USE OF RESOURCES 10 11 Ongoing Consultation and Accommodation since 2006 Binding Resolution signed by all six TNG member Chiefs endorsing the partnership and the Project. Very detailed 68 page Shareholders Agreement includes IBA and fiber supply agreements. Series of Community presentations in both English and Chilcotin (Elders) resulted in low water use options. Community News Letters to keep members aware and up to date. Joint presentations to Industry on “How to Develop Partnerships Between First Nations and Industry”. TNG Referral Model based on this partnership. Joint presentations to Local, Regional, Provincial and Federal Governments. Joint participation in Federal and Provincial Environmental Review process Series of letters written by TNG to Government indicating there support for this project 12 Building Relationships through Social interaction 13 A model of First Nations working with Industry 14 Derivation and Rationale for TNG Fibre Demand Shifts Log Demand Lumber Recovery Planed Chips (1 or 2) (m3) (bf/m3) (Y/N) 2 300,000 265 N (m3) 114,000 River West Sawmill Chips Sold Sawdust (m3) Shavings (m3) Hog Fuel (m3) Total Residual Fibre (m3) Total Residual Fibre (ODT) Total Residual Fibre (BDU) 21,000 0 15,000 36,000 15,126 13,915 Biomass Demand (m3) Biomass Demand (ODT) Biomass Demand (BDU) 503,318 211,478 194,552 Net Required Fibre (m3) Net Required Fibre (ODT) Net Required Fibre (BDU) 467,318 196,352 180,637 Power Plant Combined Enterprise Total Sawlogs Total Forest-Based Biomass Total Forest-Based Fibre Demand (m3) (m3) (m3) 300,000 467,318 767,318 Rationale for TNG 25-year volume Given the considerations listed above, the following rationale is used to define the proposed TNG target AAC used herein: Allowance Impact on Proposed AAC Sawlogs Non-Sawlogs Total Annual Plant Requirements 300,000 467,000 768,000 10% Allowance for Roadside Residue (outside of AAC) 300,000 420,000 720,000 15% allowance for BCTS purchases 255,000 357,000 612,000 This suggests that an area-based tenure capable of supporting an annual harvest of 612,000 cubic metres, together with the utilization of roadside residue where feasible and purchase of BCTS volumes proportionate with the apportionment within the TSA will provide sufficient fibre to support the TNG mill and Bioenergy plant requirements annually. TENURES IN HAND OVERALL TSILHQOT'IN FOREST TENURES FRO annual Esdilagh Tsi Deldel Tl'etinqox Yunesit'in Tl'esqox Xeni Gwet'in Total total (5 yr) UPLIFT (40%) annual 10 yr Community Forest annual 8,000 40,000 50,000 250,000 20000 31,200 156,000 124,000 1,240,000 20000 74,000 370,000 249,000 2,490,000 20000 20,000 100,000 79,000 790,000 20000 14,200 71,000 46,000 460,000 20000 21,400 107,000 46,000 460,000 20000 168,800 844,000 594,000 5,690,000 120,000 882,800 Total Annual (m3) Total Annual with out CFA (m3) 762,800 Opportunities for First Nations in Bioenergy BC Bio Energy Strategy, Clean Energy Plan and Clean Energy Act all aimed to promote First Nation Opportunities . See Information Guide prepared by BC Bioenergy Network for complete list of Biomass Applications, funding sources great resource. Any opportunity starts with securing fiber. What are the options for First Nations to secure Fiber? Fiber access and tenures and licenses Traditional forms of Tenure for First Nations FROs (based on number of band members) Up lift Volumes (% of pine beetle accelerated harvesting volumes). -New forms of tenures - Economic Development Agreements (long term) - FN Woodland (long tern Area based vs. Volume based) - Receiving license (business to Business) - Bio Energy Tenure (s. 13.1 Forest Act) Identify the Opportunity With or without a Partner (but the right fit) or find a consultant to identify options. Undertake Fiber feasibility assessment (how much is available) Meet with Ministry. Go after it!