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■ table of contents

www.woodbioenergymag.com

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FROM THE EDITORS Biomass As Part Of The Solution

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CO-FIRING IN THE U.S. Can This Really Happen?

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IN THE NEWS CPA Addresses Biomass Issues

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HERE COMES TEREX Building With Biomass

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WOOD BASED BIOFUELS Learning From Failures

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PRODUCT NEWS A Flurry Of Activity

Cover Artwork: Christy Sparks

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38 4

Wood Bioenergy / August 2015

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table of contents ■

advertising index Advertiser Index is a free service for advertisers and readers.

The publisher assumes no liability for errors or omissions.

Volume 7

Number 4

22

Airoflex Equipment

9

Amandus Kahl Hamburg

7

563.264.8066 770 521 1021

Andritz Feed & Biofuel

45

800.446.8629

Arjes GmbH

44

+49 0 3695 85855-0

Astec

25

423.867.4210

BM&M

47

800.663.0323

Bandit Industries

2

800.952.0178

Biomass Engineering & Equipment

37

317.522.0864

CPM-Roskamp Champion

49

800.428.0846

Evergreen Engineering

53

888.484.4771

Hurst Boiler & Welding

11

877.774.8778

Idaho National Laboratory

51

208.526.1151

Imal S.R.L.

27

+39 059 465 500

Kice Industries

13

316.744.7151

Lundberg

41

425.283.5070

Metal Detectors

46

541.345.7454

Mid-Atlantic Logging & Biomass

33

919.271.9050

Mid-South Engineering

50

501.321.2276

Publishing Office Street Address ■ 225 Hanrick Street Montgomery, AL 36104-3317

Morbark

56

800.831.0042

Pal S.R.L.

27

+39 0422 852 300

Peterson Pacific

55

800.269.6520

Mailing Address ■ P.O. Box 2268 Montgomery, AL 36102-2268 Tel: 334.834.1170 ■ Fax: 334.834-4525

PHG Energy

14

615.471.9299

Price LogPro

10

800.286.7803

Process Barron

48

800.226.3267

Rawlings Mfg

52

866.762.9327

Rotochopper

29

320.548.3586

Tappi

43

770.446.1400

Terex Environmental Equipment

15

989.588.4295

U S Blades

52

800.862.4544

West Salem Machinery

16

800.722.3530

Williams Patent Crusher

3

314.621.3348

Wolf Material Handling Systems

50

763.576.9040

Advertising Sales

Wyssmont

51

201.947.4600

North American Sales Representative Susan Windham ■ P.O. Box 2268 Montgomery AL 36102-2268 334.834.1170 ■ Fax: 334.834.4525 E-mail: windham.susan4@gmail.com

Wood Bioenergy (ISSN 1947-5306) is published six times annually by Hatton-Brown Publishers, Inc., 225 Hanrick St., Montgomery, AL 36104. Wood Bioenergy is free to qualified readers in the United States, including owners, managers, supervisors and other key personnel. All non-qualified U.S. subscriptions are $50 per year, Canadian subscriptions are $60 and foreign subscription are $95 per year (U.S. funds).

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■ from the editors

They Got It Right

By Mistake S

everal environmental groups, such as the Sierra Club, Dogwood Alliance and Greenpeace, have collectively written a letter to the Office of Management and Budget, criticizing EPA for considering biomass as a possible compliance solution in the new Clean Power Plan.

First of all, we use the term “environmental” loosely because past actions on the part of these groups have displayed a disdain for the environment.

Remember 30 years ago when the forest products industry was thriving in the Northwest U.S.? Many of these same groups set out to destroy it. Their mission was to create so much legal chaos in the national forest planning process conducted by the U.S. Forest Service that the process would stall and force the forest products industry to get out of the business because they wouldn’t have access to the national forests for their harvests anymore.

This effort succeeded in driving out of business hundreds of small multi-generation family lumber operations and logging operations, forcing thousands of employees to roam the streets of the Northwest looking for work—many of them still are. It didn’t succeed in totally killing off the industry, mainly because people still liked lumber and plywood in their homes and buildings. It did allow the big corporates and larger private companies to take control of the industry because they had access to large corporate and private timberland holdings.

It also created huge forestland tinderboxes on government land, because when the lawsuits successfully bogged down national forest timberland management, the forests grew unwieldy, resulting in huge carbon emitting biomass explosions, otherwise known as forest fires, either brought on by a lightning strike or spontaneous combustion.

The Forest Service continues to wrestle with it today, spending all of its money on fighting fires instead of managing forests.

And so when we hear that these groups purport to have some knowledge of carbon emission and biomass, we have our doubts. Environmental groups like these typically dabble in science, but then they run

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away from it when it begins to turn on them. They resort to baseless condemnations that will encourage continued donations from their members, who don’t have time to hold their leaders accountable.

But this time they got it right, almost. Their letter states: “Even if (biomass power) emissions are reduced by regrowth later in time, or if emissions that would have occurred later in time are avoided, the offsetting reductions are significantly delayed—on the order of years, decades, or more than a century. The emission reductions typically attributed to power plants that burn biomass are therefore uncertain, speculative and dislocated, and cannot be relied upon for the purpose of CPP compliance.”

These groups have managed to endorse the very point that they’re trying to condemn. Yes, emissions are reduced by regrowth. Yes, the offsetting reduction will occur over the years, decades and centuries.

Those are the very reasons why biomass “can” be considered as part of the clean power solution. Just because the benefits can’t be wrapped up in a nice little timeline package doesn’t mean it’s without warrant. After all, the carbon emissions discussion relies on the correlation of carbion dioxide concentration and weather temperature numbers over the past 400,000 years.

Wood Bioenergy / August 2015

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■ in the news Madden Talks Fiber At CPA Meeting Composite Panel Assn., which includes producers of medium density fiberboard, particleboard and hardboard, held its annual spring meeting May 31-June 2 at the Hyatt Regency Coconut Point Resort at Bonita Springs, Fla. CPA continues to address the woody biomass chain of supply and the dynamics of the new generation of wood energy pellet and biomass power plants.

The composite panel industry has been very aggressive in challenging biomass proposals and policy that tend to distort the traditional raw material supply chain.

Biomass Carbon Neutrality was the subject of a panel discussion moderated by Kelly Shotbolt, president of Arauco North America.

Shotbolt noted that “Circumstances are getting more intense as global governments find ways to reduce the greenhouse footprint.

We’re not naive to the fact that wood will be part of the green energy solution. We’re aware of the benefits. Our products sequester carbon. As governments intervene we will advocate the expansion of biomass supply.”

The panel included Pete Madden, president/CEO of Drax Biomass; Jim Bowyer of Dovetail Partners; Dave Tenny, president/CEO of National Alliance of Forest Owners; and Laszlo Dory, outgoing chairman of the European Panel Federation.

Madden noted that the Drax power station in North Yorkshire England provides about 7-8% of UK electricity with six turbines, each generating more than 600 MW. He said the company has answered UK directives and incentive for renewable energy by converting two of those turbines from coal to biomass, and a third one is in process, which combined would enable Drax to deliver CO2 reductions of 12 million tonnes per year.

He reviewed the ongoing commissionings of the new 450,000

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ton per year wood pellet plants in Gloster, Miss. and Morehouse Parish, La., along with an industrial wood pellet port facility at Baton Rouge, all of which represent a $350 million investment.

Madden said the two pellet plants will each require 1 million tons of fiber per year, 80% of which will be forest residuals (first thinnings) and 20% harvest residuals (slash). Each plant will receive 150 inbounds trucks per day delivering 3,900 tons per day of raw feedstock. The Mississippi plant will move 50 outbound trucks per day to the port, delivering 1,250 tons. The Louisiana plant will move an 80 car unit train (Union Pacific rail) per week 235 miles delivering 7,200 tons.

Why build the plants in the U.S. South? Madden asked. He pointed to the obvious abundance of fiber and also emphasized that Drax targeted areas where there has been forest products operation closures.

He noted that closed pulp/paper and OSB facilities in the Southern U.S. represents more than 28 million green tons of reduced demand for roundwood and chips, while operating and announced (and likely to happen) wood pellet facility demand will be 26 million green tons.

Madden also pointed to the Drax commitment to sustainability, including forest operations auditing and performance standards with regard to carbon stock, life cycle greenhouse gas savings and biodiversity protection.

Madden said the size of the wood pellet market on a global scale has been overstated. “There’s not going to be hundreds of pellet mills in the South,” he said. He noted, according to forecasts, that EU demand for wood pellets may double by the end of the decade toward 25 million metric tons but then will most likely plateau.

Bowyer of Dovetail Partners spoke on the Forest Dynamics of Carbon. “Emissions of CO2 from fossil fuel combustion, with contributions from cement manufacture,

are responsible for more than 75% of the increase in atmospheric CO2 concentration since pre-industrial times,” Bowyer said.

He also said that comparable peaks in carbon dioxide concentration and temperature over the last 400,000 years means there’s a correlation. But he added, “Nobody knows for sure what the effect of increased carbon in the atmosphere is going to be,” but that it will probably be “significant and adverse.”

Oregon Gains Key FS Biomass Project Grants Oregon gained several U.S. Forest Service (FS) grants to aid in developing wood bioenergy resources, markets and infrastructure as part of the recently announced $9 million in FS Wood Innovations grants awarded to projects in 23 states. Oregon is a major player in solid wood and paper product markets and has untapped resources with great potential for biomass utilization and wood bioenergy infrastructure development. Oregon also has a relatively large wood-based home heating market. l The Central Oregon Intergovernmental Council received a grant to help create an overall regional plan to increase market-based utilization of forest restoration project byproducts, including analyzing regional opportunities and barriers to biomass utilization, plus coordinating public and private biomass programs and promoting central Oregon as a biomass utilization hub. l Family Forest of Oregon received a grant to promote production of biochar products, which includes conducting a growth trial of biochar, developing marketing and promotional materials and evaluating the carbon offset potential of biochar. l Integrated Biomass Resources received funds to design, engineer and install a system to recover heat from an existing biomass boiler to

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in the news ■

increase efficiency and dry feedstock for densified energy products. l A grant also went to regional propane and oil distributor Ed Staub & Sons to conduct a business feasibility study on expanding an existing oil and propane distribution business into bulk wood fuel distribution, including a market assessment to examine which areas within the company’s territory hold the most promising opportunities for fossil fuel customer conversions to biomass.

Enviros Claim Biomass Is Worse Than Coal A number of environmental groups has collectively signed off on a letter to the director of the Office of Management and Budget in Washington, DC, registering their objections to the use of biomass combustion for power generation as a compliance measure in the Clean Power Plan (CPP). They say biomass-based power generation should not be included in the final CPP as a compliance measure because, at least in its proposal, EPA has not identified a rational basis for considering biomass combustion as part of the “best system of emission reduction” (BSER).

Power plants burning wood and other forms of biomass emit about 3,000 lbs. of CO2 per megawatt hour, an emissions rate that is approximately 50% higher than that of a coal-fired power plant, according to the letter.

“As biomass combustion does not produce contemporaneous reductions in CO2 emissions, with any reductions in net lifecycle emissions depending on carbon offsetting that occurs offsite and in the future, it cannot be considered part of the BSER envisioned in the Clean Power Plan.”

EPA and other agencies have often treated CO2 from bioenergy differently from CO2 from fossil fuel combustion, even though CO2 from both sources has the same effect on the climate, according to the letter. “This different treatment is based on the theory that burning biomass to generate energy either results in emissions that will be recaptured as trees grow back, or avoids emissions that otherwise would have occurred if the biomass were to decompose. However, even if emissions are reduced by regrowth later in time, or if emissions that would have occurred later in time are avoided, the offsetting reductions are significantly delayed—on the order of years,

decades, or more than a century, depending on the material used as fuel. The emission reductions typically attributed to power plants that burn biomass are therefore uncertain, speculative and dislocated, and cannot be relied upon for the purpose of CPP compliance.”

The letter points out that EPA’s proposed CPP would not require biomass-burning facilities to ensure that emission reductions are contemporaneous, or even that such reductions will occur within a specified time period.

“The forestry industry, emboldened by the possibility that EPA will discount the CO2 emitted by biomass-burning power plants, anticipates a ‘new North American wood pellet market’ under the CPP,” the letter states. “A new market would exacerbate the rapidly growing demand for U.S.-harvested trees from power companies in Europe, where bioenergy is wrongly assumed to be ‘carbon neutral.’

“Even if bioenergy emissions are eventually offset, the process of reaching net emissions parity with coal- and natural gas-fired power plants takes decades to more than a century, depending on the feedstocks used and the combustion efficiency of the facility.

August 2015 / Wood Bioenergy

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■ in the news

As such, biomass combustion is contrary to both the policy goals and legal requirements that underpin the Clean Power Plan.”

Organizations that signed the letter included: Center for Biological Diversity, Chesapeake Climate Action Network, Clean Air Task Force, Dogwood Alliance, Earthjustice, Environmental Working Group, Friends of the Earth, Global Alliance for Incinerator Alternatives, Greenpeace, Partnership for Policy Integrity, Rainforest Action Network, Sierra Club, Southern Environmental Law Center and 350.org.

USDA Restarts BCAP For Renewable Energy U.S. Dept. of Agriculture announced that incentives are resuming this summer for farmers, ranchers and forest landowners interested in growing and harvesting biomass for renewable energy. The support comes through the Biomass Crop Assistance Program (BCAP), which was reauthorized by the 2014 Farm Bill. BCAP provides financial assistance to establish and maintain new crops of energy biomass, and for harvesting and delivering forest or agricultural residues to a qualifying energy facility.

The energy facility must be approved by USDA to accept the biomass crop. Facilities can apply for, or renew, their BCAP qualification status. $11.5 million of federal funds will be allocated to support the delivery of biomass materials through December 2015.

Last year, more than 200,000 tons of dead or diseased trees from national forests and Bureau of Land Management lands were removed and used to produce renewable energy, while reducing the risk of forest fire. Nineteen energy facilities in 10 states participated in the program.

Farmers, ranchers and forest landowners can also receive financial assistance to grow biomass crops that will be converted into energy in selected BCAP project

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areas. New BCAP project area proposals are being solicited. This fiscal year USDA’s Farm Service Agency (FSA) will allocate up to $8 million for producer enrollment to expand and enhance existing BCAP project areas.

Peel Ports Facility Has Drax In Mind A new £100m biomass terminal planned for the Port of Liverpool will handle up to 3 million tonnes of wood pellets a year as part of the decarbonization of Drax power station, according to Peel Ports.

The wood pellets—to be shipped to Liverpool from North America—will provide the Selby-based power station with a low carbon fuel source.

The new biomass terminal, which includes a new rail loading facility and storage capacity for 100,000 tonnes, will be built by Graham Construction. The new terminal is set to create 47 permanent jobs at the Port of Liverpool, while construction of the facility and the supply chain will create up to 300 jobs.

The terminal is being built as part of Peel Ports’ ambitious growth plans for the Port of Liverpool, with the company already investing £300m to create the UK’s most centrally located deep water container terminal, known as Liverpool2.

Liverpool2 will enable the port to handle the largest container ships in the global fleet while at the same time doubling the port’s container capacity by 1M TEU. Mark Whitworth, CEO of Peel Ports, comments, “Creating a deep-water container terminal in the north of England is a vitally important component of the Northern Powerhouse and will help to re-balance the economy. Currently more than 90% of deep sea containers enter the UK through Southern ports but more than 60% are delivered to or originate in the northern half of the UK.” Andy Koss, CEO, Drax Power

Wood Bioenergy / August 2015

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■ in the news

Limited, says, “The biomass terminal at the Port of Liverpool will enable us to further our ambitious decarbonization plans and ensure Drax continues to lead the charge when it comes to creating sustainable, affordable renewable power. It is important to us that we measure the carbon footprint of every step in our supply chain from harvesting to transportation. By shipping to Liverpool and transporting our biomass via rail, Peel Ports has provided us with a logistics solution which minimizes carbon emissions and helps us maintain our low-carbon manifesto.”

The terminal is set to open October 2015 and will become fully operational in July 2016.

Meanwhile Drax reports that in July it saved its 20 millionth tonne of carbon since it started burning sustainable biomass in place of coal 10 years ago. It expects to take only two and a half more years to reach the 50 million tonne mark.

Finland Biofuel Plant Moving Ahead Biofuel producer St1 Biofuels is moving ahead with its biofuel refinery at Kajaani, Finland, with a recent announcement that major enzymes supplier Novozymes will provide enzymes to the plant scheduled to start up in 2016.

Based in Helsinki, St1 Biofuels is building and operating the refinery, which is being leased to North European Oil Trade, a major regional oil and biofuel distributor and trader. The $40 million (EU) plant’s production target initially is 10 million liters (2.7 million gallons) annually.

The company currently produces ethanol from bio-waste and food industry residuals at five plants in Finland. The Kajaani plant is the first using wood-based forest residuals.

Through its exclusive Cellunolix technology, St1 Biofuels uses a

Sawmill Chips Improve Fuel Mix

Novo Star Wood Products has started up a log processing machine center at the Novo BioPower site in Snowflake, Ariz. Novo Star Wood Products, which partners Novo BioPower, Vaagen Brothers Lumber and Tri Star Logging, is processing 20-30 loads of logs daily coming from national forests. The new venture moved a used chipping/sawing machine center from the former Vaagen operation at Eagar, Ariz. The power plant was relying on a challenging combination of pre-commercial forest thinnings, pinyon-juniper thinnings and citrus orchard remnants, but the new setup generates a significant stream of high quality chips, which enhances the biomass fuel mix. (Photo by Brad Worsley)

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steam-explosion process to open the cellulosic structures in sawdust particles, followed by enzymatic hydrolysis to extract the sugars for ethanol fermentation. Novozymes enzymes speed up production by reducing fermentation time.

St1 Biofuels executives note that if the sawdust to biofuel plant is successful, it can be scaled up to construct plants producing as much as 100 million liters (27 million gallons) annually.

The plant is located in a major forest industry region in central Finland with multiple mill residual sources. Large forest products manufacturer Polkky Oy has signed on as a key raw material supplier for the project.

European Commission Gives Thumbs Up The European Commission has published the progress report on 2020 renewable energy targets, showing that the EU is on track to meet its 20% renewable energy targets. With a projected share of 15.3% of renewable energy in 2014 in the gross final energy consumption, the EU and the vast majority of Member States are advancing on schedule.

The results are published in the European Commission’s 2015 report on progress made in achieving the EU’s legally binding target for a 20% share of renewable energy, the 10% target for renewable energy use in transport, and the binding national targets by 2020.

“The report shows once again that Europe is good at renewables, and that renewables are good for Europe. We have three times more renewable power per capita in Europe than anywhere else in the rest of the world. We have more than 1 million people working in the renewable energy sector worth over 130bn euros a year. We export 35 billion euros worth of renewables every year,” says Miguel Arias Cañete, Commissioner for Climate Action and Energy.

Wood Bioenergy / August 2015

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in the news ■

With a projected share of 5.7% renewable energy in transport in 2014, achieving the 10% target is challenging but remains feasible, with good progress in some Member States.

Twenty-five Member States are expected to meet their 2013/2014 renewable energy national targets.

Since the interim targets will become more ambitious over the coming years, some Member States may need to intensify their efforts to keep on track including the possible use of cooperation mechanisms with other Member States, according to the report.

close that we won’t need shuttles.”

Swanner encourages decision makers with companies that intend to exhibit to move quickly while choice spaces are still available.

More than 75 exhibitors participated in the MALB Expo in 2013, drawing some 2,500 attendees from Atlantic coast and adjacent states

and beyond. Given the forest products industry’s current throbbing pace in the Mid-Atlantic region, Swanner expects the 2015 turnout to match or exceed the 2013 mark.

Rental spaces begin at only $700.

Contact Swanner at 828-4218444 or visit malbexpo.com.

Exhibitor List Growing For Mid-Atlantic Expo

Powerscreen Mid-Atlantic Inc., the regional dealer for Terex and CBI chippers, grinders and screens, is the latest exhibitor to sign up for a live demo slot in the upcoming Mid-Atlantic Logging & Biomass Expo, set for September 18-19 near Selma-Smithfield, NC. Other exhibitors that booked space in June included Caterpillar and Peterson dealers Gregory Poole and Carolina CAT; John Deere and Morbark dealer James River Equipment; Tigercat dealer Bullock Brothers Equipment; Cutting Systems, Inc.; Vermeer MidAtlantic; Forestry Mutual Insurance; Quadco; Alliance TirePrimex; CTR/CTRS, Inc.; Pinnacle Trailers; and Big John Trailers.

“This year’s site incorporates a timberstand and open field and is more compact and convenient for all concerned,” describes Expo Manager Jack Swanner. “Most exhibits will front the walking trail and the parking area will be so

August 2015 / Wood Bioenergy

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■ in the news Coalition Announces Biomass Campaign A coalition of forest owners, wood suppliers and manufacturers of pulp and paper goods announced the creation of Biomass101.org, a clearinghouse for scientifically sound information on

carbon-neutral bioenergy. Biomass101 is jointly produced by American Forest & Paper Assn., American Wood Council, Forest Resources Assn., and National Alliance of Forest Owners.

“With biomass becoming a more prominent part of the national renewable energy discus-

sion, Americans deserve a conversation that is honest, accurate and reliable,” says Chuck Fuqua, executive director for Strategic Communications at the American Forest & Paper Assn.

Biomass101.org will include blog posts, infographics, videos and other digital media content that corrects false or distorted information in the press. The effort will also have a robust social media presence.

“It is essential that leading publications get the basic facts on biomass right to ensure objective analysis. As the hands-on stewards throughout the life cycle of forestry and forest products, we should be a central voice in the discussion and make sure that coverage is accurate and fair-minded,” says Neil Ward, vice president of Public Affairs at the Forest Resources Assn.

Mayo Moves Forward On Biomass Plant Mayo Renewable Power Limited has closed on the finance for its 42.5 MW electricity generating station and biomass fuel processing facility to be built in Killala in County Mayo, Ireland. The project, which will be fueled by wood chip biomass, will cost €180 million and qualifies for Ireland’s Renewable Energy Feed-In Tariff (REFIT) program.

Mayo Renewable Power has received all necessary planning and permits to proceed and issued its construction commencement notice in 2014. Full construction activity will commence immediately and the plant is expected to be in commercial operation in mid 2017.

John Sisk & Son Limited is erecting the plant Meanwhile, Veolia, through its subsidiary in Ireland, Veolia Energy Services, has been awarded

by Mayo Renewable Power the EUR 450 million contract over 15 years to operate the plant. In addition to operating and maintaining the power production plant and the

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Wood Bioenergy / August 2015

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■ in the news

adjacent fuel processing plant, Veolia will supply the total biomass fuel requirement for the facility.

The plant will use similar technology to that applied at Veolia’s biomass facilities at Merritt and Fort St. James in British Columbia, Can.

Enviva’s Marine Terminal Takes Shape The $50 million export terminal being built by the Enviva family of companies at the Port of Wilmington, NC inflated the first of two 17-story domes in mid-June with the second to follow soon. The domes will store 45,000 metric tons of wood pellets once operational. The first dome took about three hours to inflate.

The Wilmington facility is the second terminal built by Enviva.

In 2011, it opened a port in Chesapeake, Virginia that includes two domes. Like Chesapeake, the Wilmington terminal will ship pellets to coal-fired electric power plants in the United Kingdom and Europe, which are converting to wood pellets as fuel to reduce their emissions of greenhouse gases and toxic chemicals. Enviva expects about 30-40 ships to call at its Wilmington port when it reaches full capacity.

Enviva’s domes have been erected by Dome Technology International of Idaho Falls, Idaho, the same firm that built the company’s domes in Chesapeake. The Wilmington domes are 175 ft. in diameter—about the same measure as their height. They are engineered to be hurricane-proof, withstanding winds of more than 300 miles an hour, and earthquakeproof, surviving shocks as high as 8 on the Richter scale. They include an array of integrated safety systems, including automated temperature controls, dust controls and fire suppression systems.

The outer shell of the dome was formed by inflating a “balloon” made of polyester roofing material. The balloons serves as a mold

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for the dome’s primary structure: a layer of steel-reinforced concrete.

Construction of the Enviva marine terminal is scheduled to be completed in February 2016.

Enviva is building a new wood pellet plant in Sampson County, NC. It’s expected to produce 500,000 metric tons of pellets annually.

Terex Continues Acquisition Growth Terex Materials Processing acquired the assets related to the Environmental Technology product lines of Neuson Ecotec GmbH (an Austrian company). This acquisition marks the further expansion of the Terex Environmental Equipment (TEE) business unit, closely following the purchase of the assets of Continental Biomass Industries (CBI) in April.

The acquisition of the Neuson Ecotec Environmental Technology products add chipping, shredding, screening and composting products that will accelerate development of a global dealer network while adding a facility in Linz, Austria that can support production requirements in continental Europe. Terex is not acquiring the Forestry Division of Neuson Ecotec GmbH. The Neuson Ecotec products that Terex is acquiring will now be part of a global portfolio that will soon be rebranded as Terex Ecotec. After combining these products with existing Terex products, products in development, and some of the products recently acquired from CBI, the Terex Ecotec line will be among the most comprehensive in the industry.

Wood Bioenergy / August 2015

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■ biofuels article

Wood-Based Biofuel Development

Needs Positive Policy

By Dan Shell

B

iofuels were in the news in late spring, when on May 29 the Environmental Protection Agency (EPA) released long-awaited renewable fuel blending requirements for 2014-2016 that sought to reconcile Congress’ original intentions for groundbreaking 2007 legislation to create a booming renewable fuels industry with the realities of fuel markets coming off the biggest U.S. economic downturn since the Great Depression.

While corn ethanol (conventional biofuel) producers have made the biggest headlines and loudest lobbying effort as EPA reduced blending targets from their original legislative levels, wood-based cellulosic biofuel developers and producers have flown under the radar for the most part as production facilities have taken longer to gain financing, build and commission.

A variety of players, from component and systems suppliers to R&D consortiums and cooperative ventures and others, are continuing to refine woody biomass-tofuel technology at each step of the process. Meanwhile, industry and interest groups are working to develop a framework of government policy and market incentives to help build and sustain a thriving biofuels industry.

At the Advanced Bioeconomy Leadership Conference held earlier this year, Advanced Biofuels Assn.

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CEO Michael McAdams noted Congress’ intent back in December 2007, when the Energy Independence and Security Act (EISA) established the first renewable fuel volume mandate in the U.S. under the Renewable Fuel Standard (RFS).

Some members of Congress were looking to increase national security through energy security; some wanted to reduce fossil fuel usage; and others were more interested in rural job opportunities, McAdams said.

Yet despite varied Congressional motives, “There was near unanimous agreement that the ultimate prize of the RFS was to foster the development of advanced and cellulosic biofuel manufacturers who would use non-food feedstocks to produce next generation fuels,” McAdams said. He noted that initial RFS projections through 2022 actually capped conventional (corn) ethanol at 15 billion gallons annually while greatly expanding cellulosic and advanced biofuel projections.

The original—and overly exuberant—mandates included in the 2007 legislation had the total volume of renewable fuel in all categories required to be blended into transportation fuel growing from 9 billion gallons in 2008 to 36 billion gallons in 2022. Yet the mandates in the legislation soon proved unworkable in the market due to undeveloped biofuel production capacity and falling gasoline demand.

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Within a year of the EISA’s passage in 2007, the U.S. entered its worst economic downturn since the Great Depression, which led in turn to reduced gasoline consumption and the realization that a “blend wall” made it impossible to meet renewable fuel blending mandates at current gasoline demand levels and approved ethanol blends (E10 at the time, now E15) for standard fuel.

According to a 2011 United States National Research Council report on the economic and environmental impacts of meeting the RFS requirements, while capacity to produce conventional biofuel (corn ethanol) was nearing the mandate, the capacity for cellulosic advanced (non-corn) biofuels was nowhere near reaching the levels required to meet blending mandates.

In November 2013, looking ahead to increasingly unreachable blending requirements as the EISA’s mandated numbers rose, the EPA sought to reduce blending requirements for 2014, leading to a firestorm of political posturing and lobbying from the corn ethanol industry and almost two years of EPA reassessment on the mandates.

After a lawsuit earlier this year forced EPA to release its blending requirements for 2014, 2015 and 2016, the agency did so on May 29.

The numbers required for conventional biofuel (corn ethanol) blending were 13.25 billion gallons in 2014, 13.4 billion gallons in 2015 and 14 billion gallons in 2016. The 2014 and 2015 “mandates” reflect actual market usage, while 2016 represents a small increase—yet all are significantly lower than what was initially projected in the 2007 EISA legislation.

For cellulosic biofuels that utilize corn stover, grasses and energy crops as well as woody-based biomass, the 2014 mandated blending number released May 29 reflecting actual production is 330,000 gallons; 2015 is 106 million gallons; 2016 is 206 million. For advanced biofuels, which include ethanol and biodiesel and meet a stronger greenhouse gas emissions threshold and can come from a variety of feedstocks such as municipal solid waste (MSW) as well as woody biomass, EPA’s recent proposal called for 2.68 billion gallons in 2014, 2.9 billion gallons in 2015 and 3.4 billion gallons in 2016.

The year 2017 is left open because according to EISA language, any fuel category that comes in more than 20% below projections in two successive years may have future projections “reset” by the EPA to lower,

more realistic levels.

“We’ve always supported using the right numbers to take the mystery out of it,” McAdams says, adding that the 3.4 billion gallons in 2016 shows confidence in continued growth and sends a signal to the financial market that (government policy) is staying behind an advancing cellulosic sector. “Particularly since the cellulosic sector has been slower to bring fuels to the market than people thought initially, but to show what we’re actually producing and carrying that forward is a positive signal,” he adds.

Advancements The cellulosic segment of the biofuels industry is growing, if partially on the back of the existing corn ethanol industry through the use of corn stover, for example. In 2014, almost 100 million gallons of new cellulosic ethanol capacity came on line in the U.S. This includes corn stover-based plants Poet in Emmetsburg, Iowa, 25 million; and Dupont in Nevada, Iowa, 29 million; Abengoa in Hugoton, Kan., 25 million gallons based on wheat straw and other ag waste; and INEOS Bio in Vero Beach, Fla., producing 8 million gallons based on citrus farm and other ag waste and MSW. Interestingly, the only wood-based cellulosic ethanol plant that started up last year was American Process Inc. in Alpena, Mich., where the company is producing 1 million gallons from hemicellulose obtained from an adjacent hardboard mill.

And despite some high profile wood-based biofuel failures in the past three years, including Range Fuels at Soperton, Ga., ZeaChem at Boardman, Ore. and Kior in Columbus, Miss., biofuel developers, plant operators and investors are still putting together wood-based biofuel projects. Among those furthest along the design to construction to startup curve are:

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l Red Rock Biofuels, Lakeview, Ore.—In fall 2014, the company was awarded a $70 million U.S. Dept. of Defense grant to help build a biorefinery that will produce jet fuel, biodiesel and naphtha. Plans are to produce up to 12 million gallons using advanced Fischer-Tropsch technology from Velocys. Organizers plan to use up to 170,000 tons of woody biomass annually that includes both chips and slash from forestry operations and sawdust and other residuals from a nearby sawmill. The facility gained some positive PR also in fall 2014 when officials announced an offtake agreement with Southwest Airlines for the jet fuel production. l LanzaTech—Salvaging the facility and site of a major biofuel flameout (Range Fuels, which blew through more than $70 million in taxpayer money without ever producing much of anything), “carbon recycling” company LanzaTech has renamed the former Range facility at Soperton, Ga. Freedom Pines and is working with different technology. Utilizing local forest residuals, the LanzaTech plant is operating a biomass gasification system from Concord Blue to produce hydrogen that will be converted to biofuel and high-value chemicals using LanzaTech’s syngas fermentation technology. l After announcing a $168 million investment in fall 2013 to eventually build three production facilities in Louisiana, Cool Planet Energy Systems is continuing construction on its first facility in Alexandria, La., which has a blue-chip investor list that includes BP, Google Ventures, ConocoPhillips and GE. The plant is using a thermo-mechanical fractionation system (pyrolyzer) to convert wood waste and energy crops into gases that are in turn converted via catalysts to high-octane, renewable gasoline blendstock, which can be used to enhance the energy content of gasoline, diesel and jet fuel. Pine chips are the feedstock source for the Cool Planet facility, and biochar is produced as a byproduct for soil enhancement.

Cool Planet received a major boost in October 2014 with a $91 million loan to help finish construction of the plant, which began in February. l A planned wood feedstock biofuel refinery at Kajaani, Finland is reportedly moving ahead, and major enzymes supplier Novozymes will provide enzymes to the plant scheduled to start up in 2016. St1 Biofuels is building and operating the refinery, which is being leased to North European Oil Trade, a major regional oil and biofuel distributor and trader. The $40 million (EU) plant’s production target initially is 10 million liters (2.7 million gallons) annually. The plant is using a proprietary steam explosion process, enzymatic hydrolysis and enzymatically enhanced fermentation for its biofuel production.

In North America, there are four other primarily woody biomass biofuel refinery projects already in place, though only one is in position right now to produce commercial quantities: Bluefire in Fulton, Miss., Frontrange Energy in Windsor, Colo., Cellefuel in Nova Scotia and Ensyn with several Ontario locations. Ensyn

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recently made news signing an agreement with a Youngstown, Oh. company to supply up to 2.5 million gallons of cellulosic biodiesel annually, with deliveries beginning fourth quarter 2015.

According to news reports and company releases, all of these facilities are scheduled to be at some level of startup or commercial production by 2017.

Technical Challenges The promise and potential that woody biomass holds as a primary renewable advanced biofuel feedstock are also its challenge: Those densely packed wood sugars are tightly locked in surrounding lignin cell structure, and efficiently freeing those sugars from the lignocellulosic “glue” that holds wood together remains the top technological challenge.

The 2013 book “Biofuel Technologies: Recent Developments” notes that when producing lignocellulosic bioethanol biochemically, pre-treatment is considered the most costly step in the process. Developing lowcost enzymes and microbes that can produce sugars at high levels is another big challenge, as is developing ethanol fermenting microorganisms that can tolerate a wide range of adverse operating conditions.

Wood’s inherent variability also presents a challenge, as the specific type of woody biomass used as a feedstock and the producer’s desired final products affect technology systems, optimization and efficiency. There are also issues of minimizing sugar loss, limiting the production of hydrolysis inhibitors when pre-treating, increasing solids concentration and reducing overall water usage.

According to Tim Rials, director of the Center for Renewable Carbon at the University of Tennessee and on the Southeast Partnership for Integrated Biomass Supply Systems’ executive team, “For most of the costeffective technologies for pre-treating woody biomass, the lignin presents the problem.”

In the Southeast in particular, Rials says, the abundant southern pine resource presents challenges because it doesn’t fit well into traditional biochemical systems due to its lignin structure. “The structure of the lignin makes the access to cellulose and sugars more limited in southern pine, and that’s why you see companies like Range, Kior and others looking at thermochemical systems,” he says.

Thermochemical systems such as gasification and its variants provide strong biofuel potential, but they remain new technology that’s never truly been implemented at large commercially competitive biorefineries.

And while a system may work in a lab and do well in pilot or demo operations, there’s no substitute for testing the much larger infrastructure and plant equipment, feedstock variables and other adverse operating conditions that a commercial plant may experience.

One trend emerging in the cellulosic biofuel sector is a move toward more widely distributed production

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models of smaller plants, networks that aren’t as capital and feedstock-intensive at each site.

Cool Planet is pursuing such a strategy with its first plants in Louisiana, says Wes Bolsen, Cool Planet head of Business Development & Public Affairs. In order to keep capital and feedstock costs low, Cool Planet is seeking to build smaller plants with a 30-40 mile procurement radius. “If you’re building a huge $500 million plant it better be good and work the first time, because you’re not getting another chance,” Bolsen says.

As production technology is continually improved and optimized, building a group of smaller plants makes it easier to incorporate new innovations, Bolsen notes.

“When you’re seeking to continuously improve, building a group of smaller plants makes that easier,” he adds.

The company is utilizing a thermochemical pyrolysis production process that uses pressure and heat to partially cook the woody biomass feedstock while leaving 20%-30% of its volume (as opposed to complete gasification) as a high-value byproduct.

Carbon-rich vapors pass over a series of proprietary catalysts that cool the vapor stream into liquid molecules at a variety of temperatures and pressures. This entails chemical reactions that produce liquids with desirable carbon chains.

A big part of the Cool Planet production technology is its CoolTerra soil enhancer byproduct that’s highly porous and retains water and fertilizer, improving soil health and productivity. The byproduct currently has more value than the biofuel itself, Bolsen says.

Due to the deep chemistry involved in biofuels and the variability of treatments, catalysts, enzymes and much more, non-fuel byproducts are emerging as key cash flow producers as plants seek to start production.

“We’ve certainly seen a lot of people look toward byproducts, especially when the price of crude is down,” McAdams says, though he adds that there are questions concerning the size of such markets and the effect on prices when biofuel producers seek to sell into them.

“But it’s clear a lot of our members are looking to go chemicals first to try and get a positive cash flow on which to base building a larger plant,” McAdams says.

Investment, Policy In a perfect world, “Private investors don’t want to invest in government policy,” says Ralph Cavalieri, executive director of the Northwest Advanced Renewables Alliance, which is researching ways to make each step of biofuels production feasible and cost-effective, with the ultimate goal of producing 1,000 gallons of jet fuel. Alaska Airlines has already agreed to take delivery of the fuel when the project is complete some time in late 2016 or 2017.

“Investors want to put their money in a business plan that works without subsidies,” Cavalieri says. “Uncertainty around government policy with EPA and other issues gives investors cold feet.” He adds that the initial

RFS projections in the 2007 EISA legislation—to go from zero to 22 billion gallons in 15 years—likely led to disappointment when the cellulosic and advanced biofuel sectors didn’t come close to developing capacity to meet required levels of renewable fuel blending “At the same time, there are technical obstacles and those are connected to economics,” Cavalieri says. “Do you spend an extra $10 million on this or that when you’re doing process optimization? A lot of the technology is known but it’s a matter of making it work together efficiently in specific applications—and that takes money to get there.”

Bolsen believes government should be a leader in helping develop alternative and renewable fuel industries, and there are several ways to do so.

“When government sets a policy, what we need is predictability and consistency,” he says, adding that “When you know how much and how long,” it’s much easier to get financing.

And while the RFS is an important tool for biofuels development, there are other tools, Bolsen notes, such as the investment tax credits that are available to the wind and solar industries that could help biofuel developers in their quest for financing.

On the subject of government support for biofuels, several sources noted that the government gave railroad companies 1,200+ acres per mile to build the transcontinental railroad, and pointed to the mountain of tax breaks and other subsidies available to the oil and gas industry. But what McAdams wants most is certainty that producers can take to investors and financial institutions.

Aside from the question of blending levels from 2017-22, there’s the bigger question of what comes after, McAdams says. “Does the program continue after 2022? For people trying to build their first plants, these are significant stumbling blocks.”

Such a lack of certainty makes gaining financing that much tougher, McAdams says. “I think financing has had a great deal to do with why there aren’t more of these plants up and running,” he says. “I’m less worried about the scale-up of the new technologies as much as the (EISA) statute giving an investor the confidence to put their money in a plant.”

Regardless of the technology and fiscal challenges, the promise of woody biomass as a cellulosic or advanced biofuel feedstock remains. As Rials says, there’s plenty of it. And as Bolsen notes, there’s already an efficient infrastructure in place for buying, selling and delivering it.

McAdams sees industrial transportation fuels—big rig trucks, locomotives, ships and airplanes and more representing 25% of worldwide C02 emissions—as a prime target for biofuels. “We’re trying to deliver sustainable greenhouse gas reduction fuels to the world, and we need a process that isn’t hindered on the feedstock side. Woody biomass fits that fill as good as anything on the planet.”

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Decarbonized Future e

A Co-Firing Strategy

By William Strauss

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his paper describes a ready-to-deploy strategy that What Can Work Now provides a gradual transition to a less carbon intensive power generation sector. The strategy has What is feasible and proven to work today is co-firing many benefits; not the least of which is that it provides wood pellets, refined from renewable and sustainable reliable and low-cost and lower carbon intensive power feedstock, with coal. Co-firing wood pellets with coal in to the grid using existing power plants. pulverized coal power plants is common and ordinary in The strategy provides security for future demand to Europe, the UK, South Korea, and soon China. The U.S. the producers of solid fuel for power plants (coal and is currently the world’s largest producer of sustainable pellets) while also providing significant economic and wood pellet fuel for power plants. But not one ton of the environmental benefits. At the heart of the strategy approximately 7 million tons produced in the U.S. and must be a credible and verifiable sustainability policy Canada is used in the U.S. Hundreds of shiploads per that assures that the carbon stocks of our working year leave U.S. ports heading to nations that recognize forests are not depleted. not only the carbon emissions mitigation benefits but The foundation of the strategy is to blend a low caralso the simplicity of co-firing refined wood pellet fuel in bon renewable solid fuel (wood pellets) with coal for pulverized coal power boilers. power generation. The implementation of the co-firing The U.S. and Canada have the capacity to signifistrategy would support a gradual increase in the proporcantly increase the production of renewable power plant tion of renewable solid fuel toward a goal that would fuel for co-firing for domestic use. This can be achieved result in a 30% reduction in CO2 emissions by the year 2030..Upon achieving that goal, those higher efficiency power stations that participate in the strategy would still be using about 65% coal in their power boilers.

The strategy is rational and pragmatic and recognizes that the U.S. power system, particularly in the Eastern U.S. load centers, is heavily dependent on coal generation for base load. Because of this high level of dependency on coal fired power plants, the grid cannot tolerate the sudden removal of the coal stations. The substitution of natural gas for coal seems pragmatic given low natural gas prices. But over the next 15 years it is unlikely that natural gas prices will remain low. (As LNG export grows, NG prices in the U.S. will be set by global prices not those prices based on the captive pipeline-constrained just-in-time market that currently exists.

Also as compressed natural gas (CNG) becomes more mainstream as a transportation fuel, demand for Will U.S. coal plants incorporate wood pellets?

NG within the U.S. will significantly increase. Both of those trends will push NG cost per MWh well above while remaining well within the boundaries of the esthat of coal and a mix of coal and pellets under a co-firing sential sustainability requirements that support the carscenario.) Furthermore, the same or better carbon benefits bon benefits that are derived from blending renewable wood pellets and coal. can be achieved by 2030 by following a co-firing strategy.

If U.S. policy supports a co-firing strategy there is no This gradual off-ramp to a more decarbonized power shortage of winners: sector provides security to the producers of coal and wood pellets by providing a certainty of demand to l The environmental benefits are immediate and 2030 and beyond for the solid fuel needed to power the quantifiable. To lower carbon emissions by 10% regrid. The strategy requires the use of existing power quires a ratio of pellets to coal of about 11.24% pellets plants that use pulverized coal as fuel. The strategy reand 88.76% coal (this will vary slightly based on differquires that nearly all of the existing coal supply infraent energy contents of coal and pellets). l The power generation assets that are fueled with structure remain operating. The co-firing strategy gives pulverized coal gain a significant new value as the only the coal-dependent power sector a gentle non-disruptive pathway that allows low cost renewable co-firing. At a glide path toward a less carbon intensive future. co-firing rate that results in a 10% CO2 reduction, the How to further decarbonize the power grid and mainincrease in the cost of generation is estimated to be less tain grid reliability and stability in the 2030s and bethan one penny per kilowatt-hour. yond will depend on technological progress in a broad l The coal producers have a secure long-term market span of areas that theoretically hold promise but are for their product with a certainty for demand over the today not feasible.

T

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next several decades. Co-firing is not possible with natural gas turbines. l The pellet producers have a new and gradually increasing market also with known demand. Many underutilized industrial working forests are not in optimal locations for the existing pellet export market. Those locations, and new locations released from demand by the declining pulp and paper industry, can be responsibly developed to produce renewable refined solid fuel that is 100% compatible with existing pulverized coal plant fuel systems. l And U.S. workers benefit from a carbon mitigation solution that not only maintains jobs but increases the demand for labor. Natural gas plants require very little labor in the fuel supply chain relative to coal and pellets. Wind and solar power plants require no labor for the fuel supply.

All this and no change in how power is supplied to the grid. Unlike wind and solar, thermal power stations provide the foundation of a stable and reliable power grid. For every MW of wind and solar capacity, there has to be a MW of coal, natural gas, hydro or nuclear capacity to make sure the lights stay on when the wind is not blowing and the sun in not shining.

Status Of Coal Plants The U.S. power grid was built on coal. The future of power generation will be based far less on coal than it is today. That trend is already happening. Low cost natural gas is driving utilities to build new gas turbine power stations. Tighter emissions regulations are caus-

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ing coal stations to face significant pollution control upgrades. The combination of a higher capital basis after pollution control upgrades and less competitive fuel price is driving the generation sector into natural gas.

But coal is still a major part of the system. Across the U.S., looking at generators of 250 MW or larger, coal represents 50.25% of all the megawatt-hours generated.

Natural gas generates 22.06%. At current prices, coal is still the lower cost fuel. At $55/ton for coal and $5.50/MMBTU for natural gas, the fuel cost per MWh of electricity is $23.77 for coal and $31.28 for NG (assumes 38% efficiency for coal and 60% efficiency for a combined cycle gas plant). But the lower capital cost and lower fixed and variable O&M costs for NG results in a lower total cost per MWh. That would change if natural gas prices for power plants go to $9.19/MMBTU. At $9.19/MMBTU and $55/ton, the total cost per MWh is the same for NG and coal.

Is it wise for utilities to put all of their generation into NG? We think not.

The co-firing strategy that this paper discusses shows another reason, other than the risk of having too much of the generation portfolio concentrated in NG, to maintain and operate some of the existing coal stations.

The accompanying map below shows all of the coal and natural gas power plants in the U.S. The height of the bars represents the power outputs of the plants (light gray to black represents lignite, bituminous and subbituminous coal). The larger stations are coal fueled. A few are mixed with both coal and NG. The upper Midwest and Eastern load centers are dominated by coal.

Another map shows just the coal power stations. The

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diameter of the cylinder corresponds to the size of the power plant.

Of all power plants with generation capacities of 250 megawatts or more, coal fired power plants represent 265,400 megawatts of the total of 528,100 megawatts.

Large baseload generation from steam cycle thermal plants is necessary for grid stability. Perhaps one day large grid-scale battery storage of gigawatt-hours of power will be possible. Until that day the proportion of constantly varying and intermittent wind and solar that can supply the grid is limited. Furthermore, if the wind is not blowing and the sun is not shining, conventional generation sources have to be able to fill the demand gap.

The total power generated from all sources in the U.S. is 1,164,000 MWs. The accompanying table on page 28 shows the breakdown of primary generation sources in selected Eastern states. In 2013 those states consumed 576,000,000 tons of coal.

Perhaps in several decades the decarbonization of the power system will be based on nuclear, wind, solar and other sources such as tidal and wave power. But today, in most states that do not have hydroelectric resources, fossil fuels dominate the generation mix.

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This strategy of co-firing a renewing and sustainable low-carbon solid fuel with coal is a ready-to-deploy method of beginning the transition to a decarbonized grid while maintaining the reliable and necessary generation sources that currently are a significant part of the world’s most reliable electricity grid.

Benefits Of Co-Firing Wood pellets are carbon neutral in combustion if produced from feedstock that is procured from sustainable sources. A necessary condition is that the procurement of the feedstock cannot diminish the stock of carbon held in woody biomass. If wood pellets are to be cofired in power plants for the purpose of reducing carbon emissions, then a certification and auditing system will have to be used to make sure that the fuel is indeed from 100% sustainable and renewing sources.

The carbon benefits of co-firing are well accepted in a number of other countries. Those countries, most of who are major importers of U.S. and Canadian industrial wood pellets, have policies in place that compensate the generator for the higher cost fuel. Part of that

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Primary Generation Sources Coal

Natural Gas

Nuclear

Solar

Wind

Other or Mixed Fuels

West Virginia

86.4%

7.1%

0.0%

0.0%

3.4%

3.2%

Kentucky

71.3%

24.6%

0.0%

0.0%

0.0%

4.1%

Indiana

65.2%

21.9%

0.0%

0.2%

5.0%

7.7%

Ohio

56.8%

30.7%

6.3%

0.1%

1.3%

4.8%

Missouri

54.9%

27.7%

5.2%

0.0%

1.9%

10.3%

Michigan

36.7%

36.4%

12.9%

0.0%

3.5%

10.6%

Alabama

35.1%

38.0%

15.0%

0.0%

0.0%

12.0%

Illinois

34.0%

32.4%

24.4%

0.1%

7.0%

2.2%

North Carolina

33.7%

39.0%

16.6%

1.0%

0.0%

9.7%

Arkansas

33.5%

44.5%

11.3%

0.0%

0.0%

10.6%

Georgia

32.7%

43.5%

9.8%

0.1%

0.0%

13.9%

Pennsylvania

30.8%

28.1%

21.7%

0.1%

2.8%

16.5%

South Carolina

25.2%

26.0%

27.6%

0.0%

0.0%

21.2%

Virginia

22.3%

34.7%

13.8%

0.0%

0.0%

29.3%

Texas

21.3%

62.3%

4.3%

0.1%

10.3%

1.6%

Florida

16.5%

61.8%

5.6%

0.1%

0.0%

16.0%

Mississippi

16.5%

72.2%

8.2%

0.0%

0.0%

3.1%

Louisiana

12.4%

73.1%

7.3%

0.0%

0.0%

7.2%

New Jersey

10.3%

58.0%

20.1%

1.6%

0.0%

10.1%

6.1%

48.8%

13.2%

0.1%

4.0%

27.9%

New York

cost is the cost to ship from North America to Europe.

U.S. states and power plants embracing a co-firing strategy will not incur those shipping costs. The delivered price of the refined pellet fuel will be lower and the increased cost of generation much lower than for importers of U.S. and Canadian pellet fuel. As is discussed below, achieving one-third of the CPP’s 30% CO2 reduction will cost less than one penny per kilowatt-hour.

Canadian wood pellets produced in British Columbia, where most of the Canadian industrial pellets are produced, have to pass through the Panama Canal to get from Western Canada to the UK and the other Western EU countries that have carbon mitigation policies. Shipping costs per metric tonne to ARA (Amsterdam-Rotterdam-Antwerp) range from $16.40 from Savannah, Ga. to $30.50 from Vancouver, BC (May 13, Argus

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Biomass Markets report; prices also vary by vessel size). That cost would be avoided for a U.S. market for industrial wood pellets. The carbon footprint that is acquired in the supply chain would also be reduced as the carbon emissions from shipping are the largest component of CO2 in the supply chain.

Current spot prices for exported pellets are about $150/metric tonne FOB from the Southeast U.S. and about $139/metric tonne FOB southwest Canada (May 2015). In short tons that is $136 and $126, respectively.

Assuming $15/short ton mill-to-port and port storage and ship loading costs, the “gate price” would be $121/short ton ($133 per metric tonne) at a U.S. Southeast pellet plant. Current spot prices for export into the EU or UK are historically low primarily due to the strong dollar.

With some assumptions that are not dissimilar to actual

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values on transportation costs and on power plant efficiency and operating costs, we can calculate the added cost to the generator for co-firing refined renewable wood pellets with coal. At low co-firing rates almost no modification to the power plant is required. Wood pellets can be co-milled in the same pulverizers and the blended pellet/coal powder can be blown into the same burners. A slightly higher volume of blended pulverized fuel has to be sent to the burners to produce the same power output (there is no de-rating of the boilers).

At higher co-firing rates some modifications are required. We assume that the modifications specific to wood pellets are $500 per kW of nameplate capacity at a 100% co-firing (100% conversion from coal to wood pellets) (this includes the costs of dry storage infrastructure and minor modifications to burners and possible increase in pulverizer capacity). A full conversion to pellets is unlikely under this co-firing scenario. For a 10% co-firing rate, the cost per kW is 10% of $500. As cofiring rates go up, the marginal differences in cost will be added to the total capital cost.

We also assume that the costs of complying with EPA emissions rules and other pollution control for coal plants is incurred at a rate of $330/kW of nameplate capacity.

We assume that the coal has a heating value of 12,500 BTU/pound and costs $55/ton delivered ($2.20/MMBTU).

If we assume a “gate price” of $140/short ton ($154/metric tonne) and assume that the pellets are being trucked 100 miles at a cost of $0.16 per ton-mile, we have a logistics cost of $16.00/ton. The delivered cost is therefore $156/ton ($172/metric tonne). This is below current CIF (cost, insurance and freight) rates in ARA. We assume the pellets have a heating value of 17.5 gigajoules per metric tonne or 7415 BTU/pound.

The power plant is assumed to have a heat rate of 9,750

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BTU/kWh which equates to an efficiency of 35%.

Putting all those values into a model in which the plant generates a small proportion of its MWh’s from pellets and gains a 10% reduction in CO2, a 400 MW boiler line will use about 972,000 tons/year of coal and about 123,000 tons per year of pellets (11.24% pellets and 88.76% coal). The increase in the cost of generation is only $0.0079/kWh (about 3/4 of a penny/kWh) or $7.924/MWh. The 89/11 blend of coal and pellets results in a 10.0% reduction in CO2 emissions. The CO2 reduction calculation includes the supply chain CO2 for both the wood pellets and the coal which is accumulated from mining or harvesting, transport, refining, etc. All of the CO2 released in the combustion of the pellets is absorbed contemporaneously under the sustainability criteria requiring that the carbon stocks of the working forests are not diminished.

Forest Feedstock The U.S. and Canadian forest products industry already provide most of the world’s industrial wood pellets for use in power plants. Assuming that the U.S. and Canadian industrial pellet plants can operate at 80% capacity factor, by early 2016 North American will have the capacity to produce about 12 million metric tonnes per year of industrial wood pellets. This includes about 2.5 million tonnes per year of new capacity that is being built or is in early commissioning stages. The accompanying chart illustrates this capacity. All of the pellets sold to European and UK power plants for co-firing or full-firing are certified as having been produced from sustainable feedstock.

The current industrial pellet production plants are located in the prime wood baskets of the Southeast. Key

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inputs to the determination of the locations are based on an adequate supply of sustainable feedstock and on the ability of the operations to get the pellets to a port at a reasonable cost with a minimal carbon footprint.

The need to have relatively low cost mill-to-port logistics means that many underutilized working forests that are not well located for the export markets are ex-

cluded from the current industrial pellet plant site selection criteria.

The above map shows the location of current industrial pellet plants as well as those reported to be under construction. The map also shows the locations of pulverized coal plants with capacities greater than 250 MW.

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The industrial pellet plants are concentrated in locations that are near shipping ports and have high concentrations of sustainable fiber. In many of the locations the traditional users of the same wood fiber that is used in pellet production, pulp and paper mills, have closed.

The map at the bottom of page 31 shows the Eastern working forest inventory (data from U.S. Dept. or Agriculture). Darker coloring shows higher concentrations of wood fiber. The analysis excludes forests that are not open for management for the production of fiber for the forest products industry.

In some locations the traditional forest products users such as pulp mills, sawmills and OSB mills continue to use the wood that has been grown for generations to supply those industries. In many states, those industries have significantly declined. Forests planted 20-40 years ago that were expected to be used in those industries will be stranded.

If there were co-firing in those states, those otherwise stranded assets would regain their value and the jobs that come with managing and harvesting and transporting would be renewed and sustained.

Some of the darker areas in the map are in those states. Some are already being used by the industrial pellet producers at those locations that are favorable for transport from the mill to the ports. But there are large

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areas in the upper Midwest, the mid and upper Mid-Atlantic, parts of the Southeast, and the Northeast that would be optimal for providing fuel to the coal power stations in those regions or by rail to other areas.

The Off-Ramp Requires Coal We do not know how much of the coal power generation fleet will be replaced by natural gas between now and 2030. As with any critical input, it is never wise to rely fully on one source. If natural gas prices rise modestly, NG will no longer be the lowest cost fossil fuel.

Even with low NG prices, coal plants should continue to be used because they are an important part of the transition from today to a less carbon intensive future for the power sector.

The off-ramp to a more decarbonized future must include coal fired plants.

The chart below shows the estimated off-ramp to a 30% reduction in CO2 for those coal plants that participate in the co-firing strategy. The coal consumption values assume that 30% of the pulverized coal plants in the Eastern states will adopt a co-firing strategy.

This analysis assumes that without co-firing, and therefore without a fundamental reason to use coal stations, that there will be an 8% to 10% reduction in coal

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â– co-firing article

demand per year from now until 2030 as natural gas generation grows (following current trends). If the cofiring strategy is implemented and those coal plants are required to continue to use coal, then those coal stations in states that adopt a co-firing strategy continue to use coal. The co-firing strategy should be preferred by the coal industry.

It is surprising to see a strategy that yields significant carbon benefits be a strategy that the coal producing sector should embrace. But it is true. Both coal and wood pellets are a solid fuel that is ready to use in hundreds of coal power plants. Blending the low carbon fuel with the high carbon fuel yields a compromise that achieves the goals of the Clean Power Plan.

Based on a gradual increase in the co-firing rate with the goal of lowering CO2 in coal plants by 30% by 2030, the co-firing of pellets with coal would require about 3.0 million tons per year of pellets in the starting year.

Carbon Stocks In the chart on page 32 the assumption is that 30% of the coal stations in the states shown in the table on page 28 co-fire. By 2030 those stations would demand about 50 million tons per year of wood pellets or about 2.5

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times more than the estimated 2016 total pellet production capacity of the U.S. and Canada.

Can the U.S. and Canadian working forests support the supply of the fiber needed to produce 50 million tons/year? Based on U.S. and Canadian estimates of annual allowable harvest rates that would not deplete the forests and would sustain the carbon stock, the answer is yes. If the North American pulp and paper industry, which uses hundreds of millions of tons per year, continues to decline then there is more room to spare.

The limits to the co-firing strategy are the sustainability criteria that must assure that the forest carbon stock does not diminish. If that constraint is met, then every ton of carbon emitted from the pellet portion of the power plant fuel supply is absorbed contemporaneously.

This dynamic is illustrated in the above chart. In the illustration, the forest is harvested annually and after each harvest the forest is replanted. In this stylized example the landowner harvests one plot per year; the 40year-old mature plot. The carbon sequestration rate is 10,000 tons per year the first year. There are 40 separate plots at 40 stages of growth from seedling to mature, and each plot sequesters carbon every year at a declining rate as the tree farm matures. The entire forest sequesters 152,640 tons per year. The accumulated carbon

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in the mature 40-year-old stand exactly equals the carbon accumulated every year by all the younger stands.

So although 152,640 tons of carbon are released by the fiber in the 40-year-old plot when used as pellets for cofiring, 152,640 tons of carbon are sequestered in the same year by each of the other plots including the replanted plot on the site of the most recent harvest. (Actual growth rates and sequestration rates vary with the age of the trees. But in the aggregate, as long at what is absorbed every year is equal to or greater than what is removed, then the carbon stock is maintained. Harvests leave behind parts of the trees so the carbon released is always less than the carbon sequestered. Sustainability criteria and the auditing that certifies the forest fiber as sustainable assures this.)

The graph shows a harvest once per year. But demand for forest product are continuous: Harvesting, regrowth,and replanting happens every day. So the carbon released by the continuous use of pellets consumed daily for power generation is sequestered immediately by the continuous regrowth that occurs in balance with the harvest. The working forests can renew forever if they are managed properly.

Opponents of harvesting working forests for fuel often cite the loss of the carbon sink. As forests age, the rate of carbon capture slows. At some point all forests

reach a carbon stock equilibrium at which the growth rate and mortality rates equalize. The carbon sink ceases to exist in older forests. The chart above shows how a forest landscape with 65 plots planted one year apart sequesters very little new carbon in the plots 45 to 65 compared to the younger plots.

A co-firing strategy that is predicated upon lowering carbon emissions must include criteria and auditing protocols to assure that the working forests and their carbon stocks are preserved forever.

Clean Power Blending low carbon wood pellets with coal under a well-crafted policy can provide a non-disruptive pathway toward achieving the goals of the Clean Power Plan. The strategy does not burden the generators nor the ratepayers with high costs. The carbon benefits can be accrued for a fraction of the total cost of wind or solar power. (The levelized cost of generation includes not just the cost of the fuel but also the amortized cost of constructing the power plant and the fixed and variable operations and maintenance costs. The low capacity factors of wind and solar mean that for a given nameplate capacity, only 20% to 35% of that nameplate is generated on average. Each MWh has to carry a high

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burden of non-fuel costs. Just the capital cost per MWh generated for wind and solar is significantly higher than the fuel cost for coal and coal/pellet co-firing. ) Unlike wind and solar and natural gas, the fuel supply for cofiring power plants sustains and grows jobs in the coal and wood growing regions of the U.S. To discuss using coal as part of a carbon mitigation strategy is remarkable. If the coal generating parts of the power grid could be rapidly, responsibly and cost effectively replaced in a very short time, this paper would not have been written. But those essential parts of our power grid cannot just be switched off.

What is needed is a pragmatic and rational solution to lowering CO2 emissions. This paper has presented just that. Over several decades, in a non-disruptive way, the grid can achieve the goals of the Clean Power Plan.

The environmental benefits are real and quantifiable.

CO2 emissions can be lowered to 30% or more below the

benchmark with a policy that unites the states with the power plants, the coal producers, and the pellet producers.

The economic benefits are real and quantifiable. Jobs will be created not destroyed, and power rates will remain low in every state that adopts this policy as part of the CPP compliance strategy. The certainty that the strategy will bring to the generators and to the producers of solid fuel will allow investment into both sectors.

The new pellet plants needed to support the co-firing levels described above will require more than $11 billion in capital costs for new construction.

The time is now to begin the development of policies that will lead to an outcome that has no shortage of winners.

William Strauss is the principal of FutureMetrics LLC, Bethel, Maine. For additional information, sourcing, clarification, etc. pertaining to this article, e-mail: WilliamStrauss@FutureMetrics.com.

DONG Energy Avedore Power Station in Denmark has co-firing capabilities.

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■ company profile

Recipe For Success

Terex Mixes In CBI NEWTON, NH hen Terex Materials Processing (MP) purchased the assets of Continental Biomass Industries (CBI) in April, many around the industry wondered what kind of direction was in store for CBI, a company that had thrived in the wood, biomass and recycling markets since 1988. Nearly three months since the acquisition, the dust has settled and it’s becoming clear how well CBI fits into the plans of Terex MP, a business segment of Terex Corp.

For years, Terex MP was active in the wood processing industry by selling trommels and screens but it was not until 2011 when it finally entered the wood chipper

W

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market. Terex MP purchased Woodsman that year, thus launching what is now called Terex Environmental Equipment (TEE). Acquiring the Michigan-based wood chipper manufacturer was a significant step in TEE’s development but it would take a company of CBI’s caliber to give TEE a mobile product line that could compete worldwide. Otherwise, it would take years to design and manufacture the machines in-house.

CBI defined the biomass processing industry with world-class machinery and equipment designed around customer preferences. CBI’s equipment is designed and purpose-built to handle the demanding materials and various applications within the markets of forestry, construc-

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company profile ■

tion and demolition debris, municipal solid waste, biofuel, pulp and paper, sawmill, mulch and green waste.

“Over the last few years, Terex has looked at a lot of potential acquisitions and one of the main attractions of CBI was its product and brand reputation,” says TEE Business Line Director Tony Devlin. “The throughput and reliability of CBI products is legendary and we really wanted to buy a company that has the best products. The team at CBI is a passionate bunch and that really impressed us. They are very tightly engaged with customers and understanding of their requirements.”

“Terex is the perfect partner to take the CBI brand to the next level,” adds CBI Managing Director Anders Ragnarsson. “When you put together Terex’s global talent and established distribution channels with CBI’s strong product development, service and custom design capabilities, I can see very good results for the near future.”

Founded by Ragnarsson in 1988, CBI has spearheaded the advancements of grinding, chipping and shredding to make material recovery and recycling profitable for machine owners. For past and current customers accustomed to CBI’s bright yellow machines, Ragnarsson reassures that the colors may change on a few machines but that the company’s commitment to quality will never be compromised.

“The level of quality we put into our machines will never change,” Ragnarsson says. “Whether it’s the design phase, structuring the frame or applying the last coat of paint, we will never compromise quality. That’s the way we’ve always done it and that’s the way we’ll continue to do so.”

Under the TEE division, CBI is joined by the Ecotec Range and the Tree Care Range. A wide selection of CBI machines will be available to the North American market under the Ecotec Range, which includes industrial grinders such as the CBI Magnum Force 5400B (Terex Biomass Grinder TBG 635), 5800B (TBG 650), 6400B (TBG 660) and 6800B (TBG 680). The TBG 635, TBG 635T and TBG 650 are each powered by the Caterpillar C18, 765 HP diesel engine, while the TBG 660 and TBG 680 are powered by the Caterpillar C27, 1,050 HP diesel engine.

As for the chipper line, the CBI Magnum Force 484B (TBC 435) will also be available. The machine models come standard with a Caterpillar C18, 765 HP diesel engine.

Each of the grinders and chippers mentioned will be painted in Terex gray and white and manufactured out of CBI’s Newton, NH headquarters.

“One of the main reasons that TEE has been formed is that the biomass and recycling market is large and growing,” Devlin says. “As the world wants to move away from its dependency for fossil fuels and natural resources become more precious, this will mean that developed and developing countries will exploit the potential of biomass energy.”

“We’re in the process of establishing a Terex Ecotec Opposite page, left to right, Anders Ragnarsson, managing director of CBI; Tony Devlin, TEE global business line director; Kieran Hegarty, president, Terex Materials Processing

dealer network in North America and the addition of CBI machines to the product offering has generated a significant amount of interest,” says Art Murphy, the North American sales director for Terex Ecotec. “At the time CBI was acquired by Terex, we had three machines just coming off the production line and all those machines have been sold into the dealer network.”

Emerald Equipment based out of New York and Powerscreen of Texas each purchased a TBG 680 grinder and a TBC 435 chipper was sold through the factory dealership servicing New England. “We’re ramping up production to meet additional dealer inventory demands and we’re well on our way to having dealer coverage throughout North America,” Murphy adds.

As for the CBI division, grinders such as the Magnum Force 8800 and the Regrind Pro XL 406 will be continued as well as the grinder/chipper combinations of the 5400 Multiflex and 8400. New models such as the CBI 7544 Flail & Disc chipper and the AirMax material separator will be available as well. CBI will meet the high-capacity, full-feature needs of recycling, wood processing and biomass customers, including custom-engineered solutions, where appropriate. CBI products will be represented by a direct sales force, which will work in collaboration with TEE and other Terex distribution to maximize market potential.

Major changes are expected for CBI’s facility in Newton as well. As it stands now, the facility operates at 64,000 sq. ft. with 32,000 sq. ft. designated for machine production. CBI Shop Foreman Paul Crinklaw, a 23-year CBI employee, is actively involved in discussions focused on upgrading the facility. There are hopes to begin the construction later this year.

“I’ve seen this company steadily develop since I first came on board,” Crinklaw says. “There’s been talks about building a new weld shop that would also be conjoined by a new paint shop. Together, those shops would make for a 32,000 sq. ft. facility. Also, we’d be converting space within the existing production shop into two new manufacturing bays for increased productivity.

“Our labor force would increase because of that,” he continues. “It’s funny because I remember when this place wasn’t much more than a few pickup trucks. I never thought I’d get to see CBI get to where it is today and I’m glad I can be a part of it. We’re excited about meeting the Terex standard.”

Terex, which has invested approximately $4 billion in more than 40 strategic acquisitions since 1994, carries more than 18,000 employees across the globe. The lifting and material handling solutions company operates in five separate business segments including aerial work platforms, construction, cranes, material handling and port solutions and materials processing. Industries that Terex’s business segments cater to are construction, infrastructure, manufacturing, shipping, transportation, refining, energy, utility, quarrying and mining.

Article submitted by Terex.

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Morbark Serves Wood Pellet Market The world’s largest exporter of wood pellets since 2012, the United States, has seen wood pellet exports grow from 1.6 million short tons in 2012 to 3.2 million in 2013 and 4.4 million in 2014, according to the U.S. Energy Information Administration. Worldwide demand for wood fuel exported to Europe is expected to double over the next 10 years.

Morbark is uniquely positioned to help its customers meet that demand.

“There’s a reason Morbark has always been the industry leader in whole tree chippers,” says Michael Stanton, Morbark regional sales manager. “The exclusive Advantage 3 drum gives biomass fuel contractors the flexibility to meet various

market requirements and produces a far superior and consisMorbark’s versatile 40/36 MicroChipper tent end product. Our dealer network is also a differentiatchip accelerator and a hydrauliing factor. We are in the business of cally operated chip deflect with setting end users up for success.” vertical and horizontal adjustment The Advantage 3 drum is availto fully load vans. able on Morbark’s four models of Recent improvements to the industrial drum chippers—the drum chipper line include a sloped Beever M20R Forestry, 30/36, live floor and an internal drive feed 40/36, and 50/48B—and can be system with fewer moving parts. configured to produce “microMorbark’s Integrated Control Syschips.” Field data from Morbark tem (MICS) provides the ultimate customers has shown up to 70% or diagnostic monitoring system. more accepts at 1⁄4 in. minus and up “We’re committed to continuous improvement at Morbark to help to 98% or more 1⁄2 in. minus during in-woods applications. our customers be successful,” says Morbark’s MicroChipper conJohn Foote, Morbark vice president figuration also features an operaof Sales and Marketing. “The voltor-friendly slide-in forestry grate ume we manufacture attests to not system to further reduce oversized only the continued growth in the chips, and a straight discharge market, but also the confidence our chute with a mechanically driven customers have in our equipment.”

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■ product news Price LogPro Upgrades Drum Shells Price LogPro has developed a number of new products due to the ever-increasing desire to better utilize small wood diameters for energy, lumber, pulp and engineered wood products with the focus lately on energy. In response to these new applications Price LogPro has engineered a family of efficient drum systems featuring new technology. The two most significant upgrades enhance the design of the debarking shell in the form of Price LogPro’s “Enviro” drum shells and “Versa” drum shells.

The “Enviro” line of drum shells utilizes smaller segmented lifters resulting in greatly reduced fiber damage and white wood losses in softwood species that have a density of less than 70 lbs. per cubic foot. Another feature of the enviro drum shell is the angled, narrow bark slots that allow for overall greater bark slot area throughout the length of the drum while reducing white fiber losses to the bark system located directly below the drum. This arrangement allows for transfer of small diameter fiber and logging waste to be successfully delivered to the chipper or grinder system.

The “Versa” drum shells are engineered to work with segmented lifter segments much like the Enviro shell, however the segmented lifters are bolt-in rather than fix welded to the shell. Price has built drums for more than 20 years running bolt-in rubber lifters; the Versa drum shell is just an adaptation of that design.

This Versa flexibility in lifter selection allows for proper fiber agitation based on species being processed and allows the drum to perform better during frozen wood processing. Clients processing wood in climate areas that are split with semi-equal frozen to non-frozen fiber processing months will have the ability to interchange the aggres-

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Price LogPro wood yard applications at Southern U.S. pellet mill.

sive lifter segments for winter applications and then change back to standard non-aggressive lifters to reduce breakage and white wood losses during the nonfrozen fiber months. Versa drum shells can also be outfitted with specially designed lifters with

cutting attachments to help process Eucalyptus.

“Enviro” & “Versa” drum shells are available in all drum sizes and configurations including the Urban and Trailer mounted mobile drum systems. Price LogPro has the experience as well as the innovation

IMAL-PAL SHOWCASES PELLET PRESS

The 2015 edition of the international Ligna show in Hannover, Germany ended on a very successful note for the IMAL-PAL group, the company reports. The 600 m² plus exhibition area attracted a large number of visitors. More than 50 of the group’s Sales & Technical managers spent all five days of the show engaged in meetings with customers to discuss ongoing and new projects, sealing at the same time some major sales contracts. IMAL-PAL presented the “Dynapellet press” to the pellet industry during Ligna. The DP1200 model, which is able to process up to 12 t/h of hardwood, attracted the attention of large-scale producers seeking large throughputs. This heavy-duty press is also able to accommodate the latest market trends for pellets, being capable of handling the most demanding work processes such as that for torrefied pellets.

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■ product news

to help clients process their fiber at the highest possible recovery at the lowest possible cost per ton.

Familiar Name Wins Peterson Pacific Award Peterson Pacific Corp., a Eugene, Ore. based manufacturer of horizontal grinders, drum and disc chippers, blower trucks, and screens, has named Barry Equipment, Co. of Webster, Mass. as its 2014 Dealer of the Year. This is the third year in a row that Barry Equipment has won the award.

“Barry Equipment Co. has achieved this award three times in a row due to their assembly of a world class sales and product support team. Their support after the sale is unsurpassed within our industry and Barry’s dedication, focus and vision to the Peterson

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Gray’s comments.

“Barry Equipment winning the 2014 Peterson Dealer of the Year award for the third year in a row underlines the unparalleled service they provide.

The customers in the New England and New York region expect the Tom Barry of Barry Equipment proudly accepts the Pehighest standards terson 2014 Dealer of the Year award. Left to right, from their Peterson Randy Earle, Mike Conway, Charlie Bagnall (Peterson), dealer and Barry Tom Barry, Trish Barry, Joseph Barry, Bryan Morris Equipment delivers product line, and the markets we that every time.” serve, make them a tremendous Barry Equipment Co., Inc. was partner and raises the bar for established in 1985 and is a family dealer performance,” says Brian owned and operated equipment Gray, Eastern Sales Manager. dealership located on Interstate 395 in Webster, servicing New Charlie Bagnall, Peterson’s England and New York State.

Northeastern sales rep, echoed

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product news ■ Viking Streamlines Rail Tie Processing Thomas Vine, plant manager of the Michigan biomass energy plant, Viking Energy of McBain, LLC, has big plans for his facility’s recently acquired Sennebogen 825 M material handler.

“With the completion of a rail spur to our plant, our Sennebogen 825 M will be put to work offloading used rail ties from open hopper rail cars on site,” Vine says. “This will increase our processing capabilities significantly.”

The McBain facility, a subsidiary of GDF Suez, one of the world’s largest independent power producers, is a busy place that puts a premium on productivity and uptime. With a workforce of 21, the McBain plant processes about 500 tons of material daily with a blend of waste wood, creosote treated wood (mostly railroad ties), and used rubber tires. It generates roughly 143,000 MWH of power annually enough for about 14,000 homes.

The McBain plant is unique in that it processes whole railroad ties. “Many biomass plants buy their fuel already prepared usually in the form of chips they can run into their systems. McBain does the chipping operation itself using a low speed grinder feeding into a high speed hammermill,” says Vine.

Sennebogen 825 M feeds two grinders.

McBain’s Sennebogen 825 M feeds the plant’s two grinders and assists in their scheduled maintenance, including lifting equipment belts off the conveyors. “Our green machine has been operating about seven hours daily for about four months, with operators switching off every three and a half to four hours,” says Vine. “Its 43 ft. reach and ability to handle a larger grapple has made it much easier for us to handle the used ties. Our operators love the machine’s sensitivity and control it offers.”

McBain has been off-loading used rail ties from rail cars onto logging trucks at a freight yard about 10 miles from the plant.

“The real value of the Sennebogen 825 M handler will become obvious when we begin off-loading the ties onsite once the rail spur is complete,” says Vine.

Vine says due diligence resulted in the acquisition of the Sennebogen 825 M handler. “We did a review of specifications and capabilities, and spoke to a lot of people before reaching our decision,” says Vine. “The 825 M material handler’s ability to raise its cab to 19 ft. allows the operator to see into open rail car hoppers. For its size, it’s the highest in the industry. This was a major deciding factor for us.”

The 825 M’s load capacity enables operators to pick up eight to 10 railroad ties at a time. It also offers the kind of mobility the McBain plant requires.

“Ours is a relatively level site consisting of compacted material and the Sennebogen machine’s solid rubber tires are ideal,” Vine says.

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â– product news Venture Will Produce Briquettes, Natural Oil

Pallmann wood squeezer

Pallmann Group is joining forces with Standard Bio to develop technology and process that will convert biomass into solid briquettes for energy generation, as well as natural oil. At its

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heart is a patented high-pressure wood press and drying machine developed by Pallmann and Standard Bio, capable of producing 500 m3 of compressed wood per day, along with 50 160-L barrels of natural oil. Pallmann will develop and build various key pieces of equipment to reduce the dried wood to particulate sizes that can then be converted into the briquettes.

Briquettes will be produced either by mixing dried wood chips with a small amount of tree oil and then compacting it to form bio-briquettes (also known as HerbBalls) or by pyrolysing the sawdust and then forming charcoal briquettes.

Some of the output can also be combined with other natural re-

sources rich in nitrogen to produce fertilizer and animal feed.

The two companies have signed a technical and sales cooperation agreement under which they first plan to set up a demonstration plant in an area of forest 100 km southwest of Oslo, Norway. This plant should be operational later this year.

Standard Bio already operates a pilot press that can squeeze water and natural oils out of wood before they are reduced to chips. This eliminates the need to expend energy on drying wet chips, and also provides a valuable resource in the form of tree oil that can be used as a feedstock in various other processes, according to the companies.

Standard Bio was set up in 2014 as a spin-off from AgroPlas AS in Oslo, Norway.

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product news ■ New Chains, Sprockets Geared To Biomass

strength of the chain by 30%, allowing a lighter, more energy-efficient specification to be used.

FB Chain has launched a range FB Chain has also developed its of conveyor chains, sprockets and own self-cleaning sprockets with scrapers designed and developed induction-hardened teeth made in Sweden and Finland to address from the same corrosion-resistant the specific challenges of the steel. The grooves around the edge growing biomass sector. of each sprocket prevent fuel or ash from becoming trapped between the teeth, reducing maintenance requirements and increasing the life of the sprocket.

In addition to clogged sprockets, deformed scrapers are another major cause of chain conveyor downtime in the biomass sector. When conveying fuel to the burner, steel scrapers may Cutting-edge designs keep biomass moving. buckle under heavy “Ash from biomass fuel— loads and even snap off, causing whether forestry waste, grain costly damage to surrounding husks or poultry litter—can be chains, sprockets and even the highly corrosive, causing excesburner itself. “In many cases sive wear to all moving parts it we’ve seen jammed steel parts touches. Standard conveyors, espebeing conveyed into the burners cially belt conveyors, just won’t and re-emerging on the ash recut it,” says Graham Barber, conmoval conveyor, where they veyor specialist at FB Chain. cause more unsalvageable damChain conveyor components age,” Barber says. manufactured from carbon steel FB Chain has created a new will, if untreated, quickly rust, he type of scraper attachment, using adds. This not only shortens the technology previously found in service life of the conveyor but Formula One skid pads and tercan contaminate the ash, which ror-proof cladding for buildings. could otherwise be sold at a profit FB Chain’s Inno scrapers are as fertilizer or a liming agent. made from multi-laminated Careful handling and removal of beech, which, when processed the ash is also critical for health and assembled using thermosetand safety reasons. tings, weigh one-tenth as much as FB Chain reports it has resolved traditional steel scrapers but are these issues for the biomass sector equally as durable. by manufacturing its conveyor By using this tough yet lightchains from martensitic stainless weight material, the company is steel, which offers greater resistable to reduce the stress exerted ance than carbon steel, together on the conveyor drives and limit with hardened and tempered pins damage in case of overloading. and bushes. Furthermore the pins Instead of buckling like tradiand bushes are welded to the inner tional steel scrapers, the Inno and outer plates, which helps keep scrapers simply snap without the corrosive ash away from the damaging the conveyor chain or areas where chain wear most fresprockets and can be quickly and quently occurs—and increases the easily replaced. Furthermore,

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■ product news

being made of wood, they can be disposed of in the furnace.

“Our unique approach to conveyor design, using a combination of high-performing components manufactured from alternative materials, offers a practical and costeffective solution to the challenge of operating a conveyor in harsh environments,” Barber says. Visit fbchain.com.

Wood Waste Supports New Gasification Plant Wood waste from local industry will be a major driver in providing positive financials for a municipal gasification plant now under construction by PHG Energy (PHGE) in Lebanon, Tenn., and the project will keep thousands of tons of that waste from being dumped into area landfills each year.

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The plant will deploy the world’s largest commercial downdraft gasifier, according to PHGE Vice President of Engineering Chris Koczaja, with the capacity to convert up to 64 tons per day of biomass into electricity. A blend of mostly New Lebanon, Tenn. plant will be similar to existing facility industrial wood in Covington, Tenn. waste, sludge from the city’s wastewater treatlocal manufacturing plants and ment plant, and shredded used distribution centers that had previtires will provide the feedstock for ously paid retail hauling and tipthe gasifier. ping fees to dispose of the wood Wood waste to fuel the gasificapallets, casing and packing matetion facility will be secured from rial. By participating in the city-

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product news ■

sponsored waste-to-energy project, they will realize considerable savings and the city will receive income to help operate the plant.

“One of the great things about the project is the cooperation between the local industries and the City of Lebanon,” Koczaja says.

“This system creates a win-win situation economically, and provides 300 KW of sustainable electric power for use at the wastewater treatment plant.” The electricity is produced utilizing an Organic Rankin Cycle (ORC) generator.

Some 500 tons per year of used tires will also be converted to fuel gas for power generation during the process. “Our gasifier can accept those shredded tires without the need to remove wires or steel belts,” Koczaja says.

“There is neither smoke nor odor from our thermo-chemical conversion process, so this is a terrific solution to the county’s tire problem.”

The Lebanon plant will be completed in mid-2016. A $250,000 matching funds grant has been awarded to Lebanon to assist with construction of the facility. The funding comes from the Clean Tennessee Energy Grant program administered by the Tennessee Dept. of Environment and Conservation (TDEC).

Funding for the Clean Tennessee Energy Grant program originated from a federal court settlement with the Tennessee Valley Authority (TVA) under the Clean Air Act that resulted in TVA providing the state $26.4 million over a period of years to fund designated environmental mitigation and energy projects carried out by municipal, county and other government agencies.

TDEC was chosen to manage the selection process.

Once completed, the project will mark the 14th gasifier installation for PHGE. The company’s first municipal installation was commissioned in Covington, Tenn. in 2013.

MDI Enhances Under Conveyor System

New developments from MDI

With 50 years of experience, Metal Detectors, Inc. has established itself as a proven leader in advanced industrial metal detection systems and remains committed to continually improving its technology to meet the needs of a demanding industry. Instead of customers having to wait for a new product line down the road, MDI will often upgrade its existing technology immediately. This ensures that its customers are always getting the very best product.

MDI announces its latest improvement to the popular XR3000 Under Conveyor System, the new XR-9 Digital Electronic Function Block. This advancement in CB radio filtering and AC noise interference gives customers greater stability, less false tripping and better maximum sensitivity. Ensuring consistent protection against both ferrous and non-ferrous tramp metals, the XR-9 provides better protection for all applications where an XR3000 metal detector is installed. “With all of the environmental electrical noise in today’s mills, you need a system that can handle the interference. Keep your metal detector one step ahead by upgrading to our new XR-9 digital technology today,” the company states.

MDI takes pride in its experienced and well trained Service Dept. With thousands of successful installations worldwide, MDI has the knowledge, experience and technology to help with any metal contaminate needs.

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â– product news BFNUF Solves Feedstock Challenges

Specialists in biomass feedstock process

Biomass Feedstock National User Facility specializes in bioenergy solutions, developing feedstocks to user specifications for process design, scale-up and validation of feed handling and conversion.

Expertise includes: l Hammermill grinding

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Rotary drying Pelleting l Cubing l Multiple packaging options l Feedstock from woody biomass, grass and agricultural residues They can provide: l An integrated system with a 5 tons-per-hour capacity l Sourcing for common and unique feedstocks l Process development, testing and design l Feedstocks processed to partner specifications l Feedstock characterization l Packaging and shipping for partner testing Biomass Feedstock National User Facility solves feedstock challenges for sustainable energy solutions.

Visit inl.gov/bfnuf. l l

Rotochopper Launches Slow Speed Shredders To help customers capitalize on growing opportunities in recycling markets, Rotochopper is launching a new line of industrial slow-speed shredders. The first model in the new line, the HTS-2, is an aggressive dual shaft shredder designed to pre-process stumps, commingled C & D, railroad ties, and other forms of mixed or contaminated waste.

The HTS-2 shredder minimizes the costs of turning challenging feedstocks into end products like compost, landscape mulch and boiler fuel. By reducing maintenance costs and increasing total uptime percentage, the HTS-2 shredder maximizes the value of raw materials that pose problems for high-speed grinders.

Vince Hundt, Rotochopper co-

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Rotochopper HTS-2 shredder

founder and International sales manager, comments, “The introduction of the HTS-2 is the completion of a long-term Rotochopper plan and promise to provide our customers with a

complete line of grinders from hammermill to hi-torque.”

The HTS-2 open shredding table allows dirt, stones and other abrasives to easily pass, reducing wear rates. Grease points and other routine maintenance areas are easily accessible.

An aggressive tooth design efficiently pulls in raw material for continuous throughput without a feed ram. The teeth and counter teeth ensure active shredding in both directions. Weld-on shredding teeth stand up to contaminants.

Designed for extreme duty applications, the radial piston drive motors deliver over 1,000,000 in.lbs. of torque to each shaft in both directions. These radial piston drive motors offer better reliability and parts availability.

The HTS-2 shredder is available with diesel or electric power units

from 400 to 630 HP, in stationary, portable, or track-mounted configurations.

Hundt adds, “The HTS-2 coupled with a Rotochopper horizontal grinder and hammermill can turn contaminated C&D into whatever product the local market wants.”

The HTS-2 shredder integrates with Rotochopper horizontal grinders. With a Rotochopper multistage fiber sizing system, raw waste goes in and a finished product comes out. The shredder outputs a steady stream of material that is optimized for metal removal and grinding. An in-line Rotochopper grinder then efficiently refines the shredded material to finished specifications for landscape mulch, compost, biomass fuel, or other materials. With the addition of an in-line Rotochopper hammermill, a Rotochopper multi-stage system can

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■ product news

even produce fine texture fiber for animal bedding, fuel pellets, and other short fiber applications.

Like every machine in the Rotochopper lineup, the HTS-2 is backed by factory-direct customer support from service technicians that specialize exclusively in Rotochopper equipment. “Our unprecedented customer

loyalty will continue to grow because of our over-thetop service,” Hundt states. “We have a reputation to honor: We love our customers and we love building grinders!”

Hurst Boiler Launches CAD Download Solution Hurst Boiler announces the launch of its userfriendly online CAD download solution, featuring its latest boiler models and plan view configurations.

Featuring an extensive range of Hurst boilers available as BIM-compatible 2D and 3D CAD/Revit objects, Hurst’s Integrated CAD solution gives users the option to either download the object in the desired file type or directly import the object into their design/specification software. The application supports most popular file types and CAD software programs.

The Hurst comprehensive CAD portfolio provides a workflow advantage by streamlining planning and design to deliver higher quality projects. Offering an industry solution that gets the right information to the right people at the right time enables Hurst, as well as its customers, to innovate and compete. Visit hurstboilier.com.

Three Fairs Merge Into Wood Biorefining Week Adforum and Elmia have agreed to combine their fairs as part of International Wood Biorefining Week, May 24-26 in Stockholm, Sweden.

The three events included in International Wood Biorefining Week are International Pulp & Paper Week, World Bioenergy and Bioeconomy Innovation Forum.

International Pulp & Paper Week continues the tradition of fairs for the pulp and paper industry that have been organized by Adforum since 1968.

World Bioenergy has been organised by Elmia and its partner Svebio, since 2004. “Thanks to Sweden’s leading position in the bioenergy field, it has been possible to develop World Bioenergy into a global event with participants from 80 countries,” comments Torbjörn Johnsen, business manager Forestry at Elmia. “When we launched World Bioenergy, the growth area was byproducts from tree harvesting and the sawmill industry. Today we have a totally new situation with a pulp and paper industry that is investing heavily to create an integrated process industry in which bioenergy is becoming an ever more important part of the product mix.”

Bioeconomy Innovation Forum is a new event for new and innovative products from the forest industry. The focus is on

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KAHL DISPLAYS PELLET MILLS AT LIGNA bioplastics, textile fibers, nanocellulose, carbon fiber, packaging, biochemicals and wooden structures. Exhibitors at this event will encounter not only visitors from the forest industry but also from other industries with an interest in biobased products.

In 2016 the three fairs will be held concurrently in the same hall at Stockholmsmässan and the conferences will also be integrated with the fairs.

New Technology Detects Forest Fires Insight Robotics, an international technology company speAt the recent Ligna show in Hannover, Germany, Amandus Kahl showcializing in data visualization and cased its flat die pellet mill type 60-1500 for capacities up to 8 t/h of biorisk management over large areas mass and a medium type 38-600 for capacity of 2-3 t/h. Kahl officials of land, has developed a new sysreport a steady crowd and that the international prospects were of high tem capable of detecting fires the quality, with some interesting projects that could be generated. instant they break out, saving both lives and property. the U.S. alone, nearly half of the The Insight Robotics Wildfire entire Forest Service budge.

Detection System is the only sysThe system is composed of a tem capable of detecting a single network of automated InsightFD1 tree on fire up to five kilometers robots, all connected to a central away, allowing fires to be extincontrol room. The robots combine guished before they can spread out a thermal sensor with geospatial of control, according to the comintelligence to scan for fire and repany. Currently deployed to protect port its location while minimizing more than 250,000 hectares false alarms. The robots also pro(600,000 acres) of territory, the sysvide a real-time video feed of the tem has a detection track record of fire area and micro-weather data, 100%, catching every fire that has for response coordination. broken out within a coverage zone.

Less visibly but no less imporIn Jinan City, China (home to 3 tantly, biomass fires account for million people and covering an area nearly one-fifth of all man-made eight times the size of New York carbon emissions. E-mail info@inCity), the system detected 100% of sightrobotics.com; 888-658-4183. the fires that occurred in 2014, allowing each outbreak to be suppressed by a single fire truck.

Specifically designed for cost-efficiency, durability and reliability, the system can protect an area for as little as $2 dollars per hectare (2 acres) per year, safeguarding assets and reducing the cost of fire suppression.

These savings can be substantial—the annual cost of combating wildfires averages more than $3 billion in Insight Robotics fire detection system

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■ product news Whole Log Biomass Power Plant Offered

burner to generate up to 110kWe of electricity. Through the ORC process, hot water heats a working fluid into pressurized vapor. As the vapor expands, it drives ElectraTherm’s patented twin screw power block, which spins an electric generator and produces power.

The Power+ Generator utilizes waste heat on various applications beyond biomass, such as internal combustion engines, geothermal/co-produced fluids PGFireBox has immediate access to biomass sites. and solar thermal. Visit ElectraTherm has partnered pgfire.box.com. with Air Burners to develop a whole-log wood waste burner utiWest Salem Introduces lizing ElectraTherm’s Organic BioPrep Organics Rankine Cycle (ORC) power genWith the growing need for high erating technology. The product, volume processing of organics (incalled the PGFireBox, eliminates cluding green waste and food large amounts of wood waste withwaste) for compost and AD conout any pre-processing, converting version, WSM introduces the the woody biomass to electricity WSM BioPrep Organics Processwhile providing a significant iming System—a complete high caprovement in environmental impacity system to convert green pact by eliminating the production waste, food waste and mixed orof methane as the wood decomganics into high quality feedstock poses in a landfill or forest. for compost and AD conversion Air Burners utilizes patented systems. technology to dispose of vegetative WSM’s BioPrep Organics Syswaste without costly pre-processing requirements. The self-contained unit generates electricity from vegetative waste (6-8 tons per hour/30 cubic yards per hour).

The PGFireBox is portable and can be deployed close to the location where the woody biomass is collected, applicable at sites such as landfills, forest maintenance, fire prevention, and natural disaster cleanup.

ElectraTherm’s Power+ GeneraWest Salem Machine 863 Titan Trommel tor feeds off the heat from the

tem is a complete and integrated system that includes bulk receiving and metering infeed, shredding, conveying, metal removal and/or detection, light fraction separation, screening, sorting and grinding— the full set of tools to allow effective processing of incoming materials at rates up to 100 TPH. By utilizing WSM’s high capacity Titan Trommel Screen (8 ft. diameter by 35-63 ft. long) and WSM’s Titan Horizontal or Vertical Feed Grinder (150-800 HP), this stationary electric system delivers substantial customer benefits including reduced handling, labor and energy costs for reduced “per ton” processing costs; full system integration with a system that is fully engineered and designed for ease of maintenance and low cost installation and operation; and WSM’s ongoing technical training and support to ensure a productive system.

If you are looking for a way to improve your processing of organic materials, check out WSM’s new BioPrep Organics System— field proven in high capacity organics, green waste and food waste processing. Visit westsalem.com/bioprep-organics; email sales@westsalem.com, or call 800-722-3530.

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