« Pellet News Case study: Blue Mountain Hospital in John Day, Ore. Building area
50,000 square feet
Project type
Retrofit
Biomass percentage of building heat
90%
Fuel composition
Ponderosa Pine wood pellets
Cost per ton delivered
$165
Annual consumpton
260 tons
Annual biomass fuel cost
$42,900
Annual heating cost savings (vs.crude oil)
$84,000
Project total cost
$450,000
Payback period
5.4 years
SOURCE: "FINANCING WOODY BIOMASS CLUSTERS: BARRIERS, OPPORTUNITIES AND POTENTIAL MODELS FOR THE WESTERN U.S."
Report investigates ways to overcome development barriers The U.S. Endowment for Forestry & Communities Inc. has released a report that identifies factors that have contributed to the success or failure of biomass energy projects, with the goal of understanding how bioenergy can be more widely adapted in the U.S. The report, titled “Financing Wood Biomass Clusters: Barriers, Opportunities, and Potential Models for the Western U.S.,” is part of a series produced by the Endowment in collaboration with the U.S. Forestry Service. The analysis utilizes survey data collected from 73 bioenergy plants and eight producers and distributors of biomass fuel. Of the 73 facilities, five are com-
bined-heat-and-power plants, three produce electricity only and the rest produce only thermal energy. Barriers to the development of bioenergy facilities identified by the analysis include high upfront capital costs, a lack of profitability among fuel producers and the seasonality of heat demand. Additional barriers include feedstock transportation costs, unreliable biomass fuel sources, insufficient policy incentives and risk aversion. In addition to describing several actions to overcome these obstacles, the report also includes case studies that investigate the economic benefits of switching from fossil fuel to pellet heat.
Colorado producer doubles capacity Kremmling, Colo.-based Confluence Energy has acquired certain assets of Walden, Colo.-based Rocky Mountain Pellet. The transaction has nearly doubled the company’s original 100,000-ton-pellet production capacity. The facilities, located 60 miles apart, both began production in 2008. Both plants have also sourced pine beetle-killed wood as feedstock. Late last year, the U.S. Forest Service awarded Confluence Energy a 10-year
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feedstock materials contract for beetle-killed trees. The acquisition includes one building and approximately 90 acres of land. The transaction also includes all fixed and mobile assets on the site. With the completion of the deal, Confluence Energy gains facilities housing four pellet presses with a combined annual production capacity of 120,000 tons. The acquired facility is expected to be fully operational by midyear.