PHOTO: SIERRA PACIFIC INDUSTRIES
FEEDSTOCK¦
Stockpiling: A conveyor is used to move woody biomass.
sufficient and expensive fuel supplies coupled with a decrease in rates paid for its electricity by utility NV Energy. The plant was powering and getting feedstock from SPI’s nearby sawmill until it shut down in 2001, requiring SPI to develop fuel supply contracts with other organizations to keep the 16 MW power plant running and supplying the grid. “Then it’s a scramble to find the wood,” says Mark Pawlicki, director of corporate affairs and sustainability for SPI. “We don’t have a ready supply like we did when we had a sawmill.” SPI quickly developed fuel supply contracts with landfills, the forest service and others but transportation was costly and the forest service reduced its timber offerings. Even so, the operation was doable until the power rate decrease. “The combination of the high fuel costs due to the reduced availability of timber and a simultaneous reduction in rates made it uneconomical,” Pawlicki says. SPI is exploring options for opportunities to reopen the plant in the future, he adds. “There’s obviously a relationship there between what you’re paying and what you’re selling the power for,” says Tom DePonty, director of public affairs at Adage. After having secured the first fuel supply agreement for its Shelton plant, Adage is now marketing its output to utilities in Washington and Oregon. The company signed a lease agreement for the land in August and is currently in the middle of the permitting process. Adage has not yet applied for funding opportunities, but the fuel contract is a great first step, DePonty says, adding that it’s crucial to have in place at the time of funding application.