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â– table of contents
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FROM THE EDITORS You Say It, You Go With It
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MORBARK DEMO DAYS Chips Galore At Winn
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IN THE NEWS Latest On Wood Bioenergy Conference
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MORRIS LOGGING Bringing Chipping Into The Equation
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PELLETS OUT TO SEA International Market Developments
Cover Photography: New Drax pellet storage and loading facility at Port of Baton Rouge (courtesy of Drax)
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STOLTZE LAND & LUMBER Sawmill Adds Cogeneration Operation
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Wood Bioenergy / October 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 5
26 Co-Publisher/Adv. Sales Manager ■ David H. Ramsey Co-Publisher/Executive Editor ■ David (DK) Knight Chief Operating Officer ■ Dianne C. Sullivan Publishing Office Street Address ■ 225 Hanrick Street Montgomery, AL 36104-3317 Mailing Address ■ P.O. Box 2268 Montgomery, AL 36102-2268 Tel: 334.834.1170 ■ Fax: 334.834-4525 Editor-in-Chief ■ Rich Donnell Managing Editor ■ Dan Shell Senior Associate Editor ■ David Abbott Associate Editor ■ Jessica Johnson Associate Editor ■ Jay Donnell Art Director/Production Manager ■ Cindy Segrest Ad Production Coordinator ■ Patti Campbell Circulation Director ■ Rhonda Thomas Advertising Sales 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 International Sales Murray Brett ■ Aldea De Las Cuevas 66, Buzon 60 03759 Benedoleig (Alicante) Espana +34 96 640 4165 ■ Fax: +34 96 640 4022 E-mail: murray.brett.aba@gmail.com Classified Advertising Sales Bridget DeVane ■ Tel: 334.699.7837 ■ 800.669.5613 E-mail: bdevane7@hotmail.com A Hatton-Brown Publication Other Hatton-Brown Publications:
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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). Subscriber Inquiries and Back Issue Orders—TOLL-FREE: 800.669.5613. Fax 888.611.4525. Subscribe or renew online: www.woodbioenergymagazine.com and click on the “Subscribe” button. When requesting change of address, please specify both old and new. Periodicals postage paid at Montgomery, Ala. and at additional mailing offices. Printed in USA. Postmaster: Please send address changes to: Wood Bioenergy, P.O. Box 2419, Montgomery, AL 36102-2419 Member, Verified Audit Circulation Managed By HattonBrown Publishers, Inc.
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All advertisements for Wood Bioenergy are accepted and published by Hatton-Brown Publishers, Inc. with the understanding that the advertiser and/or advertising agency are authorized to publish the entire contents and subject matter thereof. The advertiser and/or advertising agency will defend, indemnify and hold any claims or lawsuits for libel violations or right of privacy or publicity, plagiarisms, copyright or trademark infringement and any other claims or lawsuits that may arise out of publication of such advertisement. Hatton-Brown Publishers, Inc. neither endorses nor makes any representation or guarantee as to the quality of goods and services advertised in Wood Bioenergy. Copyright ® 2015. All rights reserved. Reproduction in whole or part without written permission is prohibited. Printed in USA.
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■ from the editors
Written In Stone It’s On The Editorial Calendar
I
n the summer of each year, in planning for the next year, we editors come up with some story ideas that we put on what we call the editorial calendar, which goes into the magazine’s media and promotion package, which goes to our potential advertisers. They may find a subject planned for a particular issue for the next year and are enticed to run an accompanying advertisement. This process allows them to budget ahead. This is part of what makes the trade magazine world turn. We prefer of course for companies to run advertisements in every issue, because the constant exposure to our readership is better for them, and obviously better for us. But we appreciate all advertisements, whether a company runs one advertisement or six during the course of the year. The coming-up-with-the-story ideas is the challenging part. Our editorial subject for this issue, for example, which we decided upon more than a year ago, as it reads on the editorial calendar, is “The State of Industrial Wood Pellets.” Which is not quite as broad as “The State of the Universe,” but within the wood energy industry comes pretty close. Actually every one of our issues hits on the state of industrial wood pellets by reporting on project announcements and developments, or with a full blown article on a specific plant that has just started up and been visited by one of our editors. Heck, our last issue had a marathon-length but extremely informative article on the economics of co-firing with pellets and coal in existing U.S. coal plants. Each issue also incudes the latest equipment technologies that are introduced to the industrial wood pellet industry. But industrial wood pellets is just one piece of this magazine. We do the same for domestic heating wood pellets, biomass power generation, woody biomass procurement and harvesting. So when we sit down and decide which specific topic should be listed on the editorial calendar for each issue, we realize there’s going to be a lot more in that issue than just that one topic. But we still have to find one to lead the way so to speak. It’s just how things have always been done in our field. Then there’s the immediate challenge we confront after we list “The State of Industrial Wood Pellets.”
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Which is, what specifically are we going to write about with regard to the state of industrial wood pellets? Since we’ve listed it on the editorial calendar, it needs to have a different twist than what we normally write about as to the state of industrial wood pellets in every other issue. We decided, as you’ll read beginning on page 14, to focus on international markets for industrial wood pellets—which countries are buying in, which countries are running into infrastructure and policy roadblocks, and what the experts are saying about how much industrial wood pellet production is happening now and will happen down the road. How will that anticipated production be impacted by regulations and standards? What organizations or associations are forming abroad in response to these developments? Certainly in our own backyard the U.S. Industrial Pellet Assn. (USIPA) was quick to the task in its formation and effectiveness. Its executive director, Seth Ginther, was interviewed for our article. So you see, we have to be forecasters ourselves, when we list a subject on an editorial calendar up to a year in advance. We don’t always get it right. But frankly with “The State of Industrial Wood Pellets” we were playing it pretty safe.
Wood Bioenergy / October 2015
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■ in the news
CHIP CHIP HOORAY! rganizers of the O fourth Wood Bioenergy Conference & Expo announce that one of the themes of the event will be entitled CHIP CHIP HOORAY! and emphasize speakers and exhibits that address technologies and developments in inwoods chippers, grinders, mulchers, biomass processing accessories, and transportation to markets. “It’s a natural addition to our event,” states Rich Donnell, conference cochairman, and editor-inchief of Wood Bioenergy magazine, which is the primary media host of the In-woods chipping and transport is the theme. event. “Our previous events certainly have touched on and grinder manufacturers will exelements of in-wood technologies, hibit on the exhibitor floor along but we’ve been asked many times with manufacturers and suppliers to provide a more significant disfrom other segments of the wood cussion forum for it, and here it is.” bioenergy industry.” Donnell says numerous techniDonnell says the Wood Bioencal topics of growing importance ergy Conference & Expo will now come immediately to mind, includfully cover the wood energy secing chip size (smaller and larger), tor, from in-woods developments chipper throwing capacity, chipper to pellet manufacturing, biomass feed systems, and also urban wood power generation and domestic residue supply. and international markets. Donnell says CHIP CHIP The event will attract 400 attenHOORAY! will complement the dees, spotlight 75 exhibitors and other main themes of the Wood feature 50 speakers. Bioenergy Conference & Expo, The conference is still accepting namely wood pellets (industrial presentation proposals. Contact and heating), and biomass power Rich Donnell, e-mail: rich@hatgeneration. tonbrown.com. Wood Bioenergy Conference & For exhibitor information, conExpo will be held once again at the tact Fred Kurpiel, e-mail: fredOmni Hotel at CNN Center in Atkurpiel@aol.com. lanta, Georgia, USA, April 5-6, Visit bioenergyshow.com 2016 in the Grand Ballroom North. “If you’ve been to the event, Drax’s Madden Will you know that the Grand Ballroom Speak In Atlanta North includes three large meeting Organizers of the fourth Wood rooms which run all day with preBioenergy Conference & Expo ansentations,” Donnell says. “CHIP nounce that Drax Biomass CEO CHIP HOORAY! and its presentaPeter Madden will be one of the tions will be devoted to one of keynoters of the event to be held those rooms. Meanwhile, chipper
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April 5-6, 2016 at the Omni Hotel at CNN Center in Atlanta, Georgia, USA. Madden joined Drax earlier this year, bringing with him nearly 30 Peter Madden years of experience in the forestry industry. He oversees North America operations for Drax, including the current startup of wood pellet facilities in Gloster, Miss. and Bastrop, La., as well as a new Drax facility at the Port of Baton Rouge. Before coming to Drax, Madden was vice president of Renewable Energy and Supply Chain for Plum Creek Timber Co. Madden began his career in forestry in 1988 as a field technician with the Westvaco Corp. in South Carolina. In 1992, he joined Georgia-Pacific Corp. where he held various positions including operations manager, procurement manager and senior financial analyst. “To say that Peter’s background in wood fiber is well versed is a major understatement,” comments Rich Donnell, co-chairman of the Wood Bioenergy Conference & Expo. “His appearance in Atlanta will coincide with the boosted pellet capacity of the new Drax plants.”
Strauss Will Lead Panel Discussion William Strauss, internationally renown consultant to the wood pellet and biomass power industries, will participate in the fourth Wood Bioenergy Conference & Expo, and lead a panel discussion on “Co-Firing Wood Pellets with Coal to Achieve Carbon Emissions Reductions.” The event will be held April 5-6,
Wood Bioenergy / October 2015
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2016 at the Omni Hotel at CNN Center in Atlanta, Georgia, USA. The Strauss panel of experts will discuss a low cost and reliable power William Strauss plant solid fuel solution that is job-creating and unites the economic and environmental interests of all of the key stakeholders including policymakers, the forest products industry, pellet producers, coal producers, utilities and the public. Strauss, who is the president of FutureMetrics, has been at the forefront of a growing movement in the U.S. to mix wood pellets with coal in existing coal plants. His papers on the subject have been published and presented worldwide. “Bill’s consulting and technical expertise, and his overall understanding of the developing wood pellet and power generation markets worldwide put him at the top of the field,” comments Rich Donnell, co-chairman of the Wood Bioenergy Conference & Expo. “We’re fortunate to have him in the Atlanta program.”
Highland Pellets Orders Astec Line Astec Industries, Inc. has entered into an agreement and received a related downpayment to build, deliver and install the first production line of a new turnkey wood pellet production facility for Highland Pellets, LLC at Pine Bluf, Ark. The $30 million agreement with Highland Pellets includes the option to add additional production lines, related equipment and installation services, which could bring the total order amount to $143 million. Astec expects to deliver the first production line and related equipment no later than early 2016. Commenting on the announcement, Benjamin Brock, CEO of Astec, states, “We are pleased to announce this $30 million order for the first production line of a planned multi-line wood pellet plant facility. Highland Pellets has been great to work with on this agreement and we look forward to a long-term relationship with them.” Although Astec has received an order and a downpayment on the first $30 million portion of the facility, the remaining $113 million worth of goods and services is optional.
Astec promotes its modular design and replicated parallel production lines. One of its pellet production lines has been running at Fram Renewable Fuels in Hazlehurst, Ga., with a second line in place and a third line expected to come on, which would give Fram 400,000 tons of production. One of the advantages of the parallel production lines is said to be the avoidance of a total production shutdown due to any one major equipment outage. Highland Pellets reports it has rail and truck delivery options to Port Arthur, and that its site is cleared for construction.
MGT Teesside Project Moves Forward MGT Teesside, a subsidiary of UK’s MGT Power, has selected Abengoa, an international company that applies technology solutions for sustainable development in the energy and environment sectors, and Toshiba Corp., to build the Tees Renewable Energy Plant at the Port of Teesside, Middlesbrough, United Kingdom. Abengoa reports this will be the world’s newest and largest biomass power plant with a capacity of 299 MW
October 2015 / Wood Bioenergy
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■ in the news
of electricity and steam, both for self-sufficiency and to be exported to nearby industry and users. Abengoa will be responsible for carrying out the engineering, design and construction of the plant. During the construction phase, up to 1,100 jobs are expected to be created. This project will use wood pellets and chips from certified sustainable forestry resources from the U.S. and Europe as fuel, and will be audited to ensure compliance with the strict criteria established by the UK’s incentives for renewable energy. The plant will supply renewable energy for the equivalent of at least 600,000 households in the UK. Abengoa has now been awarded the construction of two power and steam biomass plants in less than a year, the other being a 215 MW plant in Ghent, Belgium. MGT Teesside Ltd. began serious application back in 2008 to build a 295 MW plant. As recently as this past June, MGT submitted a slightly revised application to the Dept. of Energy & Climate Change, asking for an increase in permitted generating capacity by 4 MW up to 299 MW to allow for the installation of the preferred capacity CFB (circulating fluidized bed) boiler. The June application also addresses the fuel strategy, noting the use of wood pellets in combination with wood chips, and also ensuring the best design for fuel handling and storage given fire and explosion risks. It also includes a provision for the inclusion of a wood chip dryer on site.
Savannah River Site Plans Enhancement In May senior officials from the U.S. Dept. of Energy and Ameresco, Inc. gathered for a ceremonial groundbreaking to mark the start of a new project for a biomass heating plant at DOE’s Savannah River Site (SRS) in Aiken, SC. The new biomass plant represents a modification (Phase II) to DOE’s original Energy Savings Performance Contract (ESPC) executed in 2009 for construction of the 20 MW biomass cogeneration facility currently operated and maintained by Ameresco at SRS. The new plant will be located in the southeast corner of the existing 35 acre Ameresco site. The heating plant will include a new biomass fueled boiler and relocation of the existing package boiler to a new enclosed building. Ameresco also will install a new truck tipper and fuel handing system to facilitate the biomass deliveries. The steam produced from the new plant will be supplied throughout SRS’s existing distribution system. Providing steam from this new plant will allow for the existing biomass cogeneration facility to direct more steam to the turbine generator resulting in approximately 3-4 MW of additional power for SRS. During its first three years of operation the existing biomass facility has generated approximately 5.8 billion pounds of steam, more than 1,400 million pounds of steam exported in support of Site operations, and more
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than 330,000 MW of electricity. Under the ESPC modification, Ameresco will provide turnkey Operations and Maintenance (O&M) services for the new plant and equipment over the 20-year performance period of the contract. Ameresco also will purchase additional woody biomass from local and regional providers to support the new plant’s operations. Construction on the project is beginning and the plant is scheduled to be operational in spring 2016. The existing biomass cogeneration facility will continue its normal operations during construction of the new plant.
API Puts Alpena Biorefinery On Hold American Process Inc. reports that due to a low ethanol price environment, the small size of its precommercial facility, and a limited feedstock supply, it has temporarily suspended ethanol production at the Alpena Biorefinery in Alpena, Mich. The Alpena Biorefinery continues to operate the site’s waste water treatment facility. The Alpena Biorefinery was developed by API adjacent the existing Decorative Panels International (DPI) hardboard manufacturing plant. The biorefinery broke ground in the spring of 2011 and started commissioning in May 2012. API reports it is undertaking a rigorous strategic review of the Alpena asset, and exploring various options that would allow the company to restart the facility.
Largest Biomass Load Reaches Immingham Associated British Ports reports the world’s largest ever single shipment of biomass has been discharged on the quayside at it Humber International Terminal (HIT) at the Port of Immingham, with onward transit to Drax power station. Almost 60,000 tonnes of wood pellets were unloaded from the
POPI S – the first time such cargo has been carried by a Panamaxclass vessel. The ship was loaded at the Westview Terminal in Prince Rupert, British Columbia on June 2, before making the 34-day journey to Immingham. The pellets were discharged using ABP’s bespoke continuous ship unloaders, which feed the product onto a conveyor system connected to Immingham Renewable Fuels Terminal (IRFT), where it was stored in eight silos, each capable of holding 25,000 tonnes of biomass, before being loaded onto trains for the final part of its journey. The shipment forms part of ABP’s Humber-wide agreement with Drax Power Ltd.
Greenleaf Purchases Plainfield Renewable Greenleaf Power has finalized the purchase of the Plainfield Renewable Energy Plant located in Plainfield, Conn. The acquisition marks Greenleaf Power’s sixth acquisition in North America. Plainfield Renewable Energy has a net electricity generation capacity of 37.5 MW. The facility uses clean biomass as its fuel and sells its electrical output to Connecticut Light and Power under a long-term offtake agreement. Greenleaf Power’s existing facilities are located in California and Quebec, Canada. Greenleaf Power purchased the Plainfield facility from Leidos, Inc., which has owned and operated the plant since it became operational in late 2013. The project was originally under development by a subsidiary of Enova Energy Group.
BE&E Announces Personnel Moves Biomass Engineering and Equipment has promoted Tony Nguyen to Director of Engineering where he will guide further growth of personnel and development of skills. Alan Koers has joined the engineering team to fill the position of controls
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in the news ■
and robotics engineer. Company President Dane Floyd states, “Though Tony is a relatively recent addition to the company, he clearly and quickly earned this promotion. It is wonderful to see a person work so hard and with such focus to achieve his goals. “We have been searching for the right person to fill the new robotics position, passing over many candidates. Alan brings just the right balance of diverse background, skills and drive to run with this position. Our customers will soon see great things from this fellow!”
Rentech Reorganizes Leadership Rentech, Inc. announced organizational changes designed to improve the operations and execution capabilities of its fiber operations. Steve Roberts, managing director of Canada, who has led the team responsible for establishing and maintaining customer and commercial relationships for Rentech’s industrial wood pellet business, will now also lead growth initiatives for this segment of the fiber business. Roberts has an extensive background in the forest industry with experience in operations
management, biomass supply chain management and business development. Sean Ebnet is no longer serving as the senior vice president of wood fiber. Dennis Corn, vice president of projects, is responsible for overseeing the completion of the Wawa and Atikokan (Ontario) wood pellet plant projects to full production capacity. Corn is working with Rentech teams on the ground in Ontario and a newly engaged independent engineering firm to identify and resolve the issues limiting full production of the Canadian projects. Kevin Cain will now serve as vice president of the wood chipping business with focus on improving operating and financial performance at all 26 U.S. Fulghum Fibres mills, along with growing Fulghum’s wood chipping business in North America. Mark Wilson, CEO of New England Wood Pellet (NEWP), will continue to manage NEWP’s four operating facilities and grow NEWP through acquisitions of wood pellet facilities in the commercial heating market. Roberts, Corn, Cain and Wilson report to Keith Forman, president and CEO of Rentech. Forman
states, “These changes mark the beginnings of reorganizing Rentech. With the pending sale of our largest fertilizer asset, we are transitioning to a simpler, more cost-efficient organization model.” Forman adds, “We are appreciative of Sean’s efforts in launching our diversified fiber strategy.” In early August Rentech provided updates on its Atikokan and Wawa projects. The Atikokan facility has completed commissioning and is in the ramp-up phase. It experienced a transformer failure and was using a temporary transformer. In the third quarter Renteck intends to install a larger permanent transformer that will allow Atikokan to operate at full rates. In spite of the temporary transformer with lower capacity and some material handling equipment issues, the company reports that the ramp-up phase at Atikokan has been proceeding better than its forecasts. During ramp-up, Rentech identified the need to replace or repair the truck dump conveyor and hopper at the facility, and the need to modify some of the conveyors at the plant. Atikokan may still reach full capacity in February 2016; however, the timing could shift by several months depending on the de- ➤ 35
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■ international markets
Industrial Pellet Growth:
Europe Leads Markets By Dan Shell
W
ood fuel pellets are coming into their own as a global energy product, but while building opportunities and long-term potential characterize markets in North America and Asia, for example, Europe remains the market for current solid growth and expansion, with governments throughout the region committing to policies to reduce greenhouse gas emissions and fossil fuel usage. Looking at world pellet consumption through 2013 shows Europe taking an overwhelming share of global pellet output, consuming 19 million tons out of 24 million tons overall. According to a January 2015 working paper from the U.S. International Trade Commission (ITC) by Alberto Goetzl, the UK is the world’s largest pellet importer. At least five major UK power producers have developed plans to incorporate and expand the utilization of wood fuel pellets for electricity production. After passing Canada in 2012, the U.S. is now the world’s largest exporter. A U.S. Energy Information Administration paper from April 2015 notes that U.S. wood fuel pellet exports increased 40% from 2013 to 2014, from 3.2 million tons to 4.4 million tons. Of that amount, almost three-quarters (73%) of volume went to the UK for power generation. As these and other pellet markets have expanded, production has risen to meet demand: According to
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Hawkins Wright, global pellet production has risen 637% in the past 10 years, from 4 million MT in 2004 to 25.5 million MT in 2014.
Europe Expansion European markets are expected to remain the top driver of global wood pellet demand, with a widely reported analysis from Poyry’s Silvio Mergner projecting European demand to grow from 25 million MT in 2015 to 35 million MT in 2020 and up to 38 million MT in 2025—a 52% increase in the coming decade. According to U.S. Industrial Pellet Assn. Executive Director Seth Ginther, wood pellets remain attractive because “Biomass is the cheapest renewable technology” and fits the current power generation infrastructure better than other technologies, he says. “Pellets are a baseload fuel that’s easily used in existing infrastructure, and affordability is a case we’ve made strongly in the UK,” Ginther says, adding that “It’s probably a disservice to talk about a ‘gold rush’ in terms of market growth, but pellets are here to stay as a global energy source with a good ROI.” Looking ahead, Ginther sees steady growth in European markets during the next few years and notes that the Netherlands has approved green power programs that become available in 2016 that support renewable fuel utilization and should boost demand there by 3.5
Wood Bioenergy / October 2015
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New Drax facility at Port of Baton Rouge (photo courtesy of Drax)
million tons for power production co-firing, plus another 2.5 million tons applied toward steam production. Noting the flurry of export-oriented U.S. pellet mill announcements and startups during the past five years that seems to have slowed as of late, Ginther says that’s the nature of the power industry and baseload fuel production. “We may now be seeing a bit of a plateau, but we still see additional incremental growth that’s steady. “Investors won’t build a plant without a long-term agreement in hand,” Ginther continues. “The business sort of follows the market, so you have to have a customer in place to support a business plan.” Eventually, a good chunk of industrial pellet demand could come from domestic markets, though the future remains uncertain concerning U.S. reduction of CO2 emissions in power production, Ginther says. The recently released EPA Clean Power Plan, which seeks to reduce CO2 power plant emissions by more than 30% from 2005 levels by 2030, is likely to get hit with a slew of legal challenges. Regardless of how or if the plan or parts of it survive, Ginther sees wood fuel pellets as playing a key role in any future U.S. CO2 emissions reduction efforts. “We see a role for pellets to be used to help elongate the life of the current coal power infrastructure,” Ginther says, adding that co-firing with wood pellets helps both coal companies and power companies preserve existing capital investments. Opposite page: Enviva’s new facility at Port of Wilmington (photo courtesy of Enviva)
Asia Asia, with its huge populations and increasing energy demands, is seen as a potentially strong fuel pellet market. But commitments to expanding renewable fuel usage in the region vary widely: Japan officials have talked of utilizing more renewable energy sources in the wake of the Fukushima nuclear plant disaster but have made no formal plans or proposals aside from a feed-in tariff (FIT) program that went into effect in 2012. Meanwhile, South Korea is the first major Asian power consumer to develop its own RPS framework and goal to increase its consumption of sustainable fuel. The South Korean market is attractive: The country is the world’s 10th largest energy consumer, fifth largest oil importer, second largest coal importer and 64% of electricity is produced from fossil fuels. South Korean coal consumption—currently 122 million tons per year—is accelerating. Introduced in 2012, the South Korean Renewable Portfolio Standard requires power generators larger than 500 MW to produce an increasing percentage of electricity from new and renewable energy sources. Initially targeted to achieve 10% use of renewable sources by 2022, last year the Korean government moved the target date back to 2024 due to slow progress toward the goal and producer complaints. Under the South Korean RPS, for each MW of elec-
October 2015 / Wood Bioenergy
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■ international markets
Zilkha black pellets at Port of Mobile (photo courtesy of Zilkha Biomass Energy)
tricity generated by a designated renewable source, the producer earns one Renewable Energy Certificate (REC) as proof of compliance. Generators can invest in renewable energy projects, contract with third parties to buy RECs produced by other projects or pay a fine. According to a spring 2015 report by John Cleaves, energy specialist with Intralink Korea, the RPS has had a mixed record: An average 409 MW of co-firing capacity has been added each year since 2012, but issues remain. State-run generating companies complain there are not enough RECs on the market, but the government has been lessening the burden by selling RECs at below market cost. This has helped to mitigate the financial cost of the RPS in the short term, Cleave notes, but by doing so the government is hindering the signaling function of the market since high REC prices mean more renewable energy projects become viable. Meanwhile, Japan is just now ramping up its renewable energy program, with the Trade Ministry approving projects totaling roughly 1.5 GW in biomass power generation since the FIT program began three years ago. Japan could see as many as 33 biomass power plants start up in 2016. In addition, major manufacturer Nippon Steel and Sumitomo Metal has begun operation of
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a 330 MW co-fired power plant at its Oita steelworks and also plans to upgrade another 149 MW unit for cofiring at its Kamaishi plant in Iwate.
Russia According to a July 2015 annual Russian biofuels report from the USDA’s Foreign Agricultural Service Global Agricultural Information Network, Russia is the third-largest wood fuel pellet exporter to the EU after the U.S. and Canada, and some experts say Russia has as much as 18% of the EU’s total pellet import market. Top export markets for Russian pellets are Denmark (382,000 MT), Sweden (218,000 MT) and Italy (57,000 MT) Yet while growing, the wood pellet industry in Russia remains one of largely untapped potential due to raw material supply issues and ongoing consolidation. The country boast’s Europe’s largest wood pellet producer in the Vyborgskaya Forest Corp. (VFC) that has capacity of 1 million MT annually, but it has trouble running at more than 50% capacity due to raw material supply issues, the report says. Meanwhile, four new plants starting up in 2015 in the Irkutsk oblast region in East Russia have a combined estimated capacity of only 500,000 MT. The report says total annual Russian wood fuel pel-
Wood Bioenergy / October 2015
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international markets ■
let production is 3 million MT, and according to the Russian Federal Statistical Service (Rosstat), 2014 production was 878,000 MT. (The VFG plant was down much of the year due to legal issues and raw material supply interruptions.) Yet at the same time the report says the Rosstat production numbers are likely inaccurate since many medium- and small-size pellet production plants operating as part of larger forest products facilities simply do not report their production numbers Though Russian pellet production is increasing, the overall number of pellet plants is shrinking—roughly 30% fewer facilities now than in 2010, the report states. The trend toward fewer but larger facilities, especially for export production, is expected to continue. In addition to increased demand from the EU, Russia’s wood pellet industry is also expected to benefit from domestic demand that’s projected to grow at least 10% annually in the next few years. According to Rosstat, domestic consumption for 2015 is projected around 270,000 MT. Taking full advantage of such opportunities will require serious investment in facilities and infrastructure to boost new, lower-cost production capacity, the report states. Key obstacles include lack of domestic pellet standards, lack of warehousing capacity and poor transport infrastructure.
European Issues One big change coming to the world’s largest pellet market is the UK dropping its Renewable Obligation (RO) program that has driven pellet demand in the country since it was introduced in 2002. The program has promoted the utilization of renewable energy sources, currently providing support for renewable electricity power generation, CHP applications and co-firing. CHP projects receive the most support, followed by power generation and co-firing. The RO program is being replaced by a Contract for Difference (CFD) system that sets a “strike price” for power generated from renewable sources, and the buyer pays the difference between the current market price and the “strike” price. The strike prices set by the government will favor new dedicated biomass power generators and CHP projects primarily. Though the system is a big change and a different form of green energy subsidy, “We believe the (CFD program) gives both power generators and the government more certainty, and should allow generators to get better financing terms to move projects forward,” says Ginther of USIPA. Though the RO program is closing to new projects in 2017, existing RO installations will continue to be issued Renewable Obligation Certificates through 2037. European policies at the EU and state level are critical to wood pellet utilization growth, and sustainability issues are at the forefront.
The European Biomass Assn. has organized a consortium of biomass groups to develop industrial pellet technical standards, and several major European utilities have formed the Sustainable Biomass Partnership to draft sustainability standards for wood fuel pellet buyers. Maintaining biomass-based incentives among various programs and credit systems is huge: Note that some countries have moved to give more regulatory support to wind and solar installations than to biomass. Also, there are ongoing issues with environmental groups concerning air quality, alleged deforestation and sustainable forestry practices. The EU lacks a formal biomass policy but has issued guidelines for types of biomass allowed/not allowed as well as methodologies for calculating GHG emissions for various types of woody biomass and residual feedstocks. According to Goetzl’s ITA working paper on global wood pellet trade, several EU member states have adopted third-party sustainability certification programs and/or added their own qualifying conditions. The European Biomass Assn. has organized a consortium of biomass groups to develop industrial pellet technical standards, and several major European utilities have formed the Sustainable Biomass Partnership to draft sustainability standards for wood fuel pellet buyers. Continuing to meet any future sustainability requirements is critical to maintaining markets and growth and could prove more burdensome for U.S. pellet producers who rely on smaller non-industrial private landowners (NIPLs) for a significant portion of feedstock volume. Many NIPLs are not members of sustainability certification groups. According to Goetzl, one potential factor in potential European sustainability requirements is whether any such criteria are consistent with World Trade Organization (WTO) free trade commitments. The WTO generally disallows countries from imposing requirements that favor one country or group of countries over others, but does allow exceptions for certain measures that are “necessary to protect human, animal or plant life or health.” While many environmental groups, for example, would want such a provision interpreted broadly to encompass climate change and GHG emissions concerns as being “necessary” exceptions, sustainability requirements for natural resources in the context of WTO rules have yet to be tested.
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■ cogen plant
Stoltze’s New Cogen Plant
A Win-Win Situation By David Abbott
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Wood Bioenergy / October 2015
Left, power plant manager Bryan O’Connor; right, Stoltze VP and general manager Chuck Roady
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cogen plant ■
COLUMBIA FALLS, Mont. H. Stoltze Land and Lumber has operated a sawmill here since 1923, and continues to defy the odds by maintaining its business despite ongoing timber availability issues on federal timberlands. The sawmill produces up to 75 million board feet annually of 1 in. boards, machine stress rated (MSR) and dimension lumber. That production comes mostly from Douglas fir, western larch, spruce and lodgepole pine. Finding that raw material, however, is the greatest challenge. Not that there’s any shortage of timber; it’s just that much of it is on federal lands and is offlimits to timber harvesting operations. Stoltze currently procures about 25% of its logs from USFS land. The other 50-55% comes from privately owned timberlands—Stoltze companyToyo Denki generator rates 3.75 MW but Stoltze keeps it at 2.5, the owned land (39,000 acres) as well as other tree limit of its power purchase agreement with Flathead Electric Co-op. farmers and tribal lands. way for the completion of the new conveyor system for Confident it would keep the long-running sawmill the cogen. The turbine was commissioned August 9, folgoing even longer, after several years of studies and lowed by two more months of further testing and tweakanalysis Stoltze management decided to build a cogeneraing. Commercial power generation started on October 1, tion plant in 2011. There were two main reasons that 2013, in accordance with the power purchase agreement. drove this decision. First, the boilers used to produce “The sweet spot is in the 20-25 MW range, in terms of steam for the dry kilns needed to be replaced. (The old ROI on the cost per megawatt to build a wood biomass riveted outdated boilers, built in 1909, continued in use power plant, but we simply couldn’t sell the power,” until the cogeneration project was completed in 2013.) Roady says. The basic infrastructure necessary, he exSecond, the mill needed an outlet for its residual products. plains, is largely the same whether it’s 2 MW or 22 MW. “This would kill two birds with one stone,” says Stoltze ultimately opted to generate less power than it Chuck Roady, vice president and general manager. could have easily produced from available fuel sources. “Adding a power turbine gave us a way to generate “In Montana, we have very limited transmission capaccash flow and a payback on the system.” The primary ity,” he says. “We could have sold the power outside the use for the system is to heat the dry kilns; second, to state, but we couldn’t get it there. heat the facility buildings durWe ended up selling a much ing winters; and third, to turn smaller amount of power to a the turbine. local cooperative system (FlatBy December 2011, Stoltze head Electric Cooperative) and had signed contracts with the have become very good partners. Flathead Electric Cooperative In the end we simply had to tone and Bonneville Power Adminisour project (the power generation tration for a 20-year power purand boilers) way down.” chase agreement. The mill also Stoltze initially approached contracted Wellons, Inc. to build the Flathead Co-Op with an offer a turnkey boiler power plant with to generate a much higher nummachine centers. Stoltze and ber, but the power company said other subcontractors built the it couldn’t take that much power fuel conveyor systems outside at the price Stoltze would need. the cogen footprint to connect it There was some back and forth to the planer and sawmill. negotiation, and ultimately the parties settled on an amount the Project Startup Co-Op could take at a price The project broke ground in Stoltze could accept. The purJune 2012. The system began chase agreement is for an annual making steam in May 2013, and average 2.5 MW/hr. for 8,400 took over providing steam to the hours or 350 days a year. “That kilns from the old boilers, which The mill uses bark and planer shavings to fire the still met our needs as far as the boiler; other residuals are sold to local plants. were then demolished to make size of the boiler to make steam
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Wellons did a turnkey boiler project for Stoltze; the previous boilers had been in operation since 1909.
5,000 gallon Ecodyne water tank is fed by two sources, a deep water well and a creek on the property.
for the kilns,” Roady says. “We’ve been very pleased, but DC plates to remove particulate matter before the exit takes a lot longer to pay it back.” haust exits the stack. “That’s why our (DEQ—Montana The Flathead Electric Co-Op utilizes about 170 MW Department of Environmental Quality) air permit went of power in its distribution system, according to Power through so easily; they knew the system we have Plant Manager Bryan O’Connor. “So we are a small slice works.” Roady adds that the entire permitting process of their total portfolio, but our power is good PR for went smoothly. “The state of Montana worked with us them. They get to use locally generated green renewable from start to finish. Quite frankly, they wanted one of energy. It’s a mutually beneficial arrangement.” these facilities to be built in Montana too.” After researching the options, Stoltze opted to go with The environmental impact is seen as a net positive. In a single cell Wellons boiler, Dresser-Rand extraction turfact, O’Connor says, not only the state government but bine with a nameplate rating of 2.5 MW, and a Toyo the public supported the installation of the plant. “When Denki Power Systems generator with a maximum capawe built it we had zero opposition from the public. We bility rating of 3.75 MW. are on the border of Columbia Falls and Whitefish; both “It’s been quite an experience, especially for a comcities were extremely supportive. We had no public outpany our size and in an area where there hadn’t been any cry at public comment meetings.” of these built in conjunction with a sawmill facility,” Roady says that the local people get it and underRoady reflects. “It was quite a learning curve. Everything stand the value of the timber resource. “They know we we did was new, not only for Stoltze, but to the consultneed to manage the forest. We are good stewards of our ants, engineers and everybody else involved in the plancompany and state owned timberlands, but very much ning and construction.” need the federal lands to be actively managed also. The Of course, it was never going to be as simple as just general public would much rather see us burn wood installing a new boiler. “When you build anything like waste in a high tech energy plant than seeing and this, your grandfathering for permits and technology breathing the smoke in the air from wildfires.” goes out the window,” Roady notes. “You have to buy O’Connor adds, “In our cogen plant we are burning the best available technology to meet all current stanmaterial that, if it burns in the woods, 100% of that dards.” The old boiler sysresidual goes out into the air, tem, built over a century and there is no emission conago, had no emissions control in a forest fire. Here at trols that would have met our facility the emissions are today’s specifications. next to nothing.” Being located near GlaThe public support is cier National Park, Stoltze is earned; Stoltze maintains an in a very strict air quality open door policy on its timzone, so a high tech air berlands, and regularly hosts emission system was necestours of its facilities for visisary. “When the machinery tors. “We have a very good is all operating properly, relationship with the com99.9% of all particulate is munity and are continually trapped,” O’Connor says. working on our public outThe plant uses a dry ESP reach here,” O’Connor says. (electrostatic precipitator) “Paul McKenzie, our rewith a series of 60,000 volts Turbine controls feature TPDs to protect from surges. source manager, and our
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Wood Bioenergy / October 2015
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■ cogen plant
In 2013, Stoltze upgraded its boilers to better heat kilns, and added a cogen plant as part of the project.
F.H. Stoltze Lumber Co. has been operating at this location since 1923.
forestry department are very active in the community and spend a lot of time educating the public about what we do and proper forestry practices.”
Stoltze utilizes all its bark, and in the winter mixes in a portion of its planer shavings. “That helps with moisture content,” O’Connor explains. “We have wet bark in the spring and fall, so we like to use those planer shavings to get our aggregate moisture content down to where we can burn more efficiently.” They buy the balance of fuel from several local sources—small post/pole and pulp companies, among others. The mill has also developed a trade relationship
Environmental As far as fuel supply, Stoltze generates 60-70% of its needs from its own sawmill residuals. The plant has two fuel silos: one for planer shavings and one for hog fuel.
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Wood Bioenergy / October 2015
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■ cogen plant
with the local county landfill. Stoltze receives hog fuel ground up from brush, trees and stumps brought in from residential and municipal properties and in exchange the county takes the ash from the Stoltze boiler to utilize as a cover agent in their landfill. “They like our ash because they spread it on the landfill to help break down the trash and garbage, then they extract methane gas off the bottom of the landfill.” The landfill in turn burns that methane in a small gas turbine to generate
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electricity that also feeds the local electric grid. “The key is that you cannot haul fuel very far,” Roady says, adding that most residual byproducts—chips, sawdust and shavings—all have a higher value if sold in other forms than burned in a boiler. Stoltze sells its sawdust and chips to Plum Creek’s MDF facility in Columbia Falls and its shavings to Roseburg Forest Products in Missoula. One of the requirements for the power plant is a series of trip protection devices (TPD). If there is a problem internally at Stoltze or from outside their system—such as a lightning storm or a power outage—then the Flathead Co-op can externally trip the Stoltze generator. It also protects Stoltze internally. “Those TPDs were huge cost factors in building our plant that we were not aware were coming,” Roady says. “It was an eye opener, because these TPDs all have to have fiber optic communication that can send signals in a fraction of a second, faster than the blink of an eye, and it is very expensive technology.” One of the worst events for a boiler is to run out of water, so the cogen plant has a primary and a secondary source of water feeding a 5,000 gallon makeup tank. The mill received DNRC (MT Dept. of Natural Resources and Conservation) permits for a deepwater well, plus the creek that runs through their property, which is the cogen plant’s primary and secondary sources of water. The well is much deeper than most domestic systems. The plant can also use water from Trumbull Creek as a backup water source if there is a problem with the well or a loss of power. A reverse osmosis and softener system treats up to 13 million gallons of water per year to supply the boiler. Multimedia filters can treat up to 46 million gallons of water per year to supply the cooling tower and other plant load needs. The plant employs several water recycle and reuse methods to conserve on consumption and wastewater production. It will be a few years before the $20+ million investment will be paid off. Though the cogen would have paid for itself faster if they could have sold more megawatts from a larger system, Roady says the management team is very pleased with how it all turned out. “It makes our kilns and our lumber drying process super efficient, so the end result was a win-win for Stoltze.”
Wood Bioenergy / October 2015
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Demo Days
Morbark Steps Up Again By Jay Donnell At top, Morbark Chairman Lon Morey, left, and President Jim Shoemaker, Jr. were feeling good about Demo Days.
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Morbark representatives fielded all questions.
WINN, Mich. he 2015 Morbark Demo Days was held on August 20-21 and attracted several hundred customers and dealers from throughout the world. Morbark demonstrated eight machines and hosted an extensive tour of its sprawling factory. Attendees were treated to an excellent breakfast on the first morning at Morbark, Inc. headquarters in Winn, Mich. as Chairman Lon Morey and President Jim Shoemaker, Jr. updated everyone on the state of Morbark before leading guests on a tour of the impressive office complex. Attendees were then taken on a tour of the 1.1 million sq. ft. factory and had the opportunity to observe station-by-station manufacturing of various equipment lines and the detailed processes and materials involved. John Foote, vice president of sales and marketing, and who played a vital role in the Demo Days events, commented, “Morbark is the industry leader for several reasons. We have an extensive dealer network across the United States and contractors come to us because they know they’re going to make money with our equipment. It lasts longer than any other equipment in the field.” After the factory tour customers and dealers went out to the Morbark proving rounds, just a few miles away from headquarters, and had the chance to walk around eight different machines and ask questions to the Morbark representatives stationed at each piece of equipment. President Shoemaker noted that Demo Days isn’t ex-
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Morbark’s John Foote set the pace.
Close to 350 came to Demo Days.
clusive to existing customers but as importantly is open to potential customers. “About half of the customers here don’t run our equipment,” he said. “It gives us the opportunity to listen to them and it also gives them an opportunity to see what the differences are and we’re confident in our ability to shine in an environment like this and quite frankly we have.” On Friday, attendees enjoyed a Pancake Breakfast at Morbark headquarters and then it was off to the proving grounds to watch Morbark’s equipment take center stage with live demonstrations. Close to 350 people were in attendance. Active equipment included: the HT1042 slow-speed shredder, Beever M20R Forestry, 30/36 NCL track whole tree drum chipper, 40/36 NCL whole tree drum chipper, rebuilt 50/48 NCL whole tree drum chipper (2004 model), 3200 Wood Hog horizontal grinder, 6600 track Wood Hog horizontal grinder and the 1300B Tub Grinder. Several new developments were in the product mix on display. The HT1042 slow-speed shredder demonstrated at Demo Days was the first production machine with a more aggressive 30 hammer pattern and the product itself is just now available for sale. The 30/36 drum WTC track machine is based on a standard product, but this unit was the first track machine to incorporate the design changes (sloped infeed, bottom feed roller, larger top roller, t4 engine) from the wheeled 30/36s. Morbark’s Advantage 3 Drum produces more consistent chips, while the heat-treated AR400 steel drum skin provides longer wear life for lower
Wood Hog 3200 has lighter touch.
October 2015 / Wood Bioenergy
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On the proving grounds
One of numerous presses in the factory
replacement costs and less downtime. The 40/36 micro chipper has been in production for about two years now, but the machine demonstrated was the first one with 800 HP. The chipper is known for its efficient feed system due to a staggered knife configuration and contains fewer moving parts, reducing maintenance. The Beever M20R features the Advantage 3 Drum and electronic flow control to control feed speed from the remote. It’s the perfect option for those looking to enter the biomass market with low startup costs. The 3200 Wood Hog is a smaller, lighter and more affordable unit with all the benefits of some of the larger grinders. The 3200 will handle green waste, regrind, sawmill residue, pallets, and logs up to 14 in. in diameter. The 6600 track Wood Hog horizontal grinder features a flexible, easily adjustable torque limiter which helps protect the driveline and hammermill from damage. The 6600 Wood Hog’s 66 in. x 50 in. infeed opening processes large material with ease. The 1300B tub grinder includes the Morbark integrated control system, which allows the monitoring of critical machine parameters. Replaceable one-piece anvil and tub floor wear plates make maintenance easy and reduces downtime.
Morbark also allowed guests to operate its Boxer line of compact utility loaders. The day concluded with a Texas Style Barbecue at the site of the demonstration. Thomas Prince of Forestry Resources, a large mulch production operation with locations in southern Florda, was pleased with the event. “I think the Morbark team has done a really good job and we’ve been treated really well,” he said. “You get to meet a lot of people, that’s the best thing about it.” Prince says his operation runs a Morbark grinder. “It’s been excellent,” he added. Demo Days is a longstanding tradition at Morbark and the Morbark team continues to make it better every year. “Our company is absolutely committed to continuous improvement,” Shoemaker said. “Every year our shops looks just a little different and the team is always looking for ways to improve. It’s the same with Demo Days.” Shoemaker was impressed with the variety of attendees from throughout the world, especially the Southern Hemisphere. “We’re learning a lot from our customers,” he said. “It’s always great to talk to the people who actually run the equipment and make a living doing it. We’ve been able to unveil some new products very successfully. It all bodes well for Morbark.”
Tour provided opportunity to examine every detail.
Unit bound for Lutke Forest Products
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Wood Bioenergy / October 2015
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â– chipping job
New Opportunities
Maine Logger To Expand By Jessica Johnson
Since adding a Petersen chipper to his operation, logger Sherbey Morris says his income has gone up 35%.
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chipping job ■
FORT KENT, Me. ased at the U.S.-Canadian border, and doing business as Morris Logging, Inc., Sherbey Morris has been logging for more than 30 years. While logging has changed across that span, his attitude has not. From a humble beginning (an old Franklin skidder and two chain saws), Morris Logging has expanded and diversified as a business and Morris has advanced as a sound businessman. In addition to conventional logging, Morris does in-woods chipping as part of a contract with ReEnergy Holdings, delivering to ReEnergy’s three northern Maine biomass power facilities: Ashland, Fort Fairfield and Stratton. This accounts for a third of Morris’ total hauled volume, about 1,000 tons of chips per week. Morris used to operate a processor in- A third of Morris Logging’s total hauled volume goes to ReEnergy plants. stead of a chipper to diversify his conventional logging setup. Falling victim to many a logcause of the larger motor with more horsepower. We’ve ger’s conundrum, the tendency was to cut too much saved on fuel, loaded the wood faster and increased wood, causing breakdowns and stress about the maproduction,” Morris emphasizes. chine’s payments compared to its performance. Ultimately, Morris decided to move away from the Business Management processor, given the expense of the machine and the Jumping into chipping has turned out to be very proffact that it produced an unusable trash pile. He emitable for Morris, though it’s added to the ongoing effort braced chipping thanks to a contract from the Boralex to keep business finances aligned and a good crew intact. Industries facility in Ashland. Initially Boralex financed Morris Logging has more than $5 million invested in him a smaller Morbark chipper to help get the chipping equipment alone. “Your name is your reputation. When side off the ground. As the chipping side grew, Morris you shake hands with someone…to my loss I will keep noticed that he could not keep up with demand: His my word.” This conviction and his management skills chipper was too small. have paid off in a sterling reputation and good credit. When the facility changed hands to ReEnergy HoldHe’s not quick to make a purchase. “You have to know ings and increased demand even more, Morris needed a your costs, every bit of your costs. There are other things bigger machine. He went with a Petersen chipper and involved besides a payment,” he asserts. accompanying larger Doosan excavator, purchased “People always look at loggers like we can’t be from Barry Equipment in Webster, Mass.—a nearly $1 doing anything else,” Morris adds. “That’s just not true. million investment to this segment of his business. We are people of principle; we’re all educated; we’re The excavator is a zero tailswing machine, a big sellsmart people.” ing point for Morris. With the His detailed knowledge of costs Doosan/Petersen combination, John enable him to very aggressively go Ouellette, the former processor opafter private timber sales. Morris is erator who now operates the chipable to approach landowners, per, can generate 10 loads a day using spreadsheets on every facet with two trucks. In the winter, with of his operation, and predict, for northern Maine’s fairly extreme example, what a landowner can conditions, Ouellette makes wise expect to make, within a couple of use of cleats. He welds them onto thousand dollars, on a given tract. the tracks of the excavator to help Morris likes to work on private keep it from skidding into the chipwoodlots, which he calls his bread per or a van, and onto the chipper and butter, and usually travels no infeed to help thwart any accumulamore than 50 miles from Fort tion of harmful snow and ice. Kent. Mainly working in select-cut “Income has gone up 35% with Sherbey Morris mode, he prefers these types of the addition of the Petersen be-
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jobs to industrial landowners. Morris estimates that out of his total annual production of about 60,000 cords of treelength and 20,000 cords of chips, 20,000 cords is linked to industrial landowners.
On Site Setup The operational scheme has the crew working in two phases. First, all logs on a given tract are cut and skidded. Then the skidder sets up a concentration yard with two main piles: treelength logs and brush/tops for conversion to biomass chips. Trucks are loaded with the treeThe crew makes use of concentration yards to sort treelength logs from brush. length logs while the delimber is at work. Then the chipper, excavator and vans are brought crew keep the work area a little tidier. in to process and take away the biomass. The crew normally cuts about five species: poplar, Morris believes his setup is efficient and provides for cedar, spruce, birch and fir. Markets include consumers total utilization. “Bunches of 12-15 trees come to the of both fuelwood and pulpwood chips, grade logs, and OSB logs. yard and we strip them, treelength logs going to one Morris Logging operates an eight man crew, in addiside, brush on the other, nothing left on the trails.” This method also cuts down on confusion and helps Morris’ tion to four subcontract haul trucks and a full subcontract
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Wood Bioenergy / October 2015
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■ chipping job
harvesting crew of eight men. The company uses a mix of Caterpillar and Tigercat harvesting equipment, the Petersen chipper and Doosan excavator, and Caterpillar road building equipment. While he relies on a contract trucking outfit for much of his transportation needs, Morris owns three trucks, Western Stars, the brand he prefers since they are made with massive transmissions and other rugged features and can handle the conditions of northern Maine. Chip vans are by Peerless and Manac.
People Power
Service Aspect Morris Logging operates a 50x100 ft. shop, with an attached shed that has been converted to a fuel room. All routine maintenance, as well as more involved maintenance during the mud season, is performed there. Daily maintenance is performed on-site. The chipper receives regularly scheduled maintenance every 1000 hours, including checking knives and adjusting anvils. In the winter, when the snow mixes with the wood to make a large amount of dust, the chipper is blown out daily. Morris demands a tight service schedule, as well as pristine daily upkeep. “I don’t let the men destroy my
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stuff,” Morris says sternly, “I don’t want oil on the ground; I don’t want dents in the machines. This stuff cost a lot of money and they should take care of it like it’s their own.” Morris uses factory parts on his forestry equipment but says he isn’t always pleased with availability and quality. For example, he remembers once last spring when a machine blew a starter and caused two days of downtime for the whole operation and a lot of headaches.
Most on Morris’ crew are older, long-term employees and he’s proud of the company’s retention. The father of five and strong man of the Catholic faith says that logging isn’t the most important thing in his life, and he doesn’t force his men to treat it that way either. “We live on weekends with our families. This is the way we make a living. We need to have good equipment to work with. We need to be able to do it. But this is not our whole life.” He notes that his crew is loyal, and he not only appreciates that but also realizes the weight of it. “Do not expect anyone to do something you aren’t willing to do,” he says.
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in the news ■
13 ➤ gree of modifications needed to correct the material handling equipment issues and any other possible issues that may arise. Most of the equipment at the Wawa facility has been commissioned and the plant is producing a limited quantity of wood pellets. However, Rentech reports it will need to modify the front end system of the facility that handles logs and feeds them into the chipper, and modify or replace a significant portion of the conveyors that handle chips and pellets. These issues are preventing Rentech from ramping up the plant to expected production levels, according to Rentech. Rentech says correcting these problems will increase total expected project spending for the Canadian pellet plants to approximately $145 million. Taking into account the time required to correct the log infeed equipment and conveyance systems, Rentech now expects the Wawa facility to operate at full capacity in the second half of 2016. Due to the expected delays in production at the Wawa facility, Rentech again amended its delivery commitments under its contract with Drax. In August, Rentech canceled all 240,000 tonnes of wood pellet deliveries in 2015 that it had agreed to in February. The August amendment provided for a comprehensive settlement amount of approximately $2.6 million to compensate Drax for all canceled deliveries.
ReEnergy Adds Rising As Health-Safety Mgr. ReEnergy Holdings named Mark Rising as health and safety manager. Rising has more than 30 years of experience in industrial health and safety management. Before joining ReEnergy, he worked as a safety specialist at PSEG Bethlehem Energy Center. Prior to that, he was a program safety manager supporting Antarctica mission locations for the 109th Airlift Wing of
the Air National Guard, based at the Stratton Air National Guard Base in Scotia, NY. He also worked at General Electric, Foster Wheeler, and Plug Power. He began his career in the U.S. Navy in the Navy Nuclear Propulsion program. Rising will implement health and safety policies, procedures and training activities for employees and contractors. ReEnergy’s health and safety program includes regular health and safety inspections; risk assessment and mitigation processes; a job safety analysis program; a behavioral-based safety program; quarterly safety improvement projects; and facility safety committees.
Hurst Boiler Founder Gene Hurst Dies Clifton Eugene (Gene) Hurst, founder of the Hurst Boiler & Welding Company, Coolidge, Ga., died peacefully on July 22. He was 79. Gene Hurst An entrepreneur, skilled engineer, and devoted family man, Hurst is remembered for his kindness, dedication, vision and inexhaustible will. Not only did he grow Hurst Boiler into one of the world’s leading boiler companies, but he helped to transform the boiler industry through innovation. “We lost one of the greatest men to ever live, a man adored by many, a man of true character, a man that meant so much to so many...my hero, best friend and my grandfather,” says Chad Fletcher, Hurst’s grandson and Hurst Boiler’s Director of Aftermarket Parts and Sales. Hurst started his family business in 1967 with his wife Edna in a shop behind their home in Thomasville, Ga. He moved the business to its present location in Coolidge in 1970, where the company today successfully manufac-
tures a full line of solid waste, wood, gas, coal and oil fired steam and hot water boilers and related equipment in a 314,000 sq. ft. manufacturing facility on 17 acres. Forty-eight years later, the business Hurst began remains in the family, currently under the direction of the Hurst children: Tommy, Hayward, Teri and Jeff. It is the largest employer in the area, maintaining more than 350 employees at full production capacity. Hurst attributed his success to his faith, his family’s support, and the dedication of the Hurst Boiler team and customers. “Anyone who knew him, in whatever capacity, would certainly agree he was a kind, humble and inspiring individual who cared deeply for his family and the people who worked for him,” says Jeff Hurst, Gene’s youngest son and Hurst Boiler’s Director of Marketing. In 2007 he was awarded the Thomasville-Thomas County Chamber of Commerce Lifetime Achievement Award for his dedication to his community.
Van Horn Joins Baxley/Price LogPro Tom Van Horn has accepted the position of Capital Sales Account Manager for Baxley Holdings. Van Horn has worked in the sawmill industry for more than 23 years, starting with HEMCO as a field service technician in 1992. He moved to Hi-Tech Engineering as field service technician and PLC programmer. In 2004 he went to work for well known southern pine lumber producer, Jordan Lumber Company. At Jordan he filled many key roles ranging from technology manager, capital projects manager and operations manager during his 11 years there. Van Horn’s extensive background in PLCs and real world mill experience is a huge asset and will help Baxley Equipment/Price LogPro communicate with their customers.
October 2015 / Wood Bioenergy
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■ product news Vermeer Spotlights Tractor-Mulchers Vermeer held its 2015 media summit on July 8-9 in Pella, Ia. and emphasized its FT300 and FT100 forestry tractors with mulcher
heads. Mike Byram, vice president of environmental solutions for Vermeer, welcomed media members during an opening dinner. On July 9, editors traveled to the Vermeer headquarters and heard presentations from Byram and Vermeer’s Ted Dirkx presents the FT300 track forestry tractor with mulcher head.
Jason Andringa, president and COO of Vermeer. Andringa will become president and CEO later this year. He represents the third generation of family leadership at Vermeer. Jeff Bradley, recycling and forestry product manager, and Jon Heinen, pipeline corporate accounts manager, gave overviews of the forestry and pipeline markets, respectively. Bradley talked about cutting trends in land clearing, now two-thirds selective and onethird clear-cut, he said, and noted new markets for residue going to wood pellets facilities in the Southeast. He also pointed to the importance of new housing starts as a driver for continued growth in the land clearing industry. Editors then toured the Vermeer factory and were able to view fabrication and assembly of various Vermeer products such as mulchers, brush chippers and grinders. Editors traveled to the demo site at Elk Rock State Park where Vermeer applications specialist, Ted Dirkx, gave a detailed presentation of the new FT300 track forestry tractor with mulcher head. The FT300 features a 300 HP Cummins QSL9 diesel engine that meets Tier 4 Final emissions standards. It includes a horsepower “bulge” that allows an increase to 320 HP when the engine drops from 2,200 rpm to 2,000 rpm under load, helping to increase performance and productivity. Applications specialist Ryan Marshall presented the FT100 with above ground mulcher attachment. The FT100 comes with a 111 HP Perkins E3TA Tier 4i engine. “This machine is one of the
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fastest in its class and it goes up to 10 MPH in high gear and 4 MPH in low gear,” Marshall said. “If you have a long way to track to get to where you’re going, that’s going to increase your production at the end of the day.”
Laidig CleanSweep Enhances Production Laidig Systems, Inc. has engineered and developed fully automated storage and reclaim systems for companies that produce and transport biomass material. For example, during the wood pellet production process, the pellets are
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transported and stored in storage facilities such as domes or silos. Transporting the pellets from the production facility to the storage facility and then from the storage facility to load-out onto trucks or ships is where Laidig’s technology and experience is a huge asset. One of the systems designed by
Laidig that is specific to the storage and reclaim of biomass materials is the Model 2010 CleanSweep Reclaimer. The CleanSweep Reclaimer automates the final cleanout process of biomass reclaim in the storage facility, and eliminates the need to manually unload the material, which is more time consuming, requires additional labor, and the expense associated with purchasing heavy machinery. Designed specifically for freeflowing materials like biomass, the CleanSweep allows for more frequent inventory turnover, eliminating dead zones and minimizing waste. High-volume material discharge is achieved by combining free-flow through draw-downs with consistent, high delivery from the reclaim auger. The CleanSweep’s automatic, push-button clean-out operation helps to reduce labor costs while increasing net profits. Safety is also a high priority for
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companies storing materials in silos and domes, and one of the challenges is to ensure that plant personnel have safe and easy access into the structure. The Laidig CleanSweep provides the highest level of operator safety. Its zero-entry cleanout operation eliminates employee exposure to dust, chemicals and the risk of material engulfment. The CleanSweep is confined-space friendly, with minimal maintenance required, and with serviceable components in easily accessible locations. Visit laidig.com.
Andritz Promotes Largest Pellet Mill Intensive efforts by many countries to increase the share of renewable fuels in energy generation to meet the political regulations in support of reduced CO2 emissions are driving the strong market growth for industrial production of wood pellets. Resulting from this development, equipment which can cost-efficiently produce renewable energy pellets in large quantities, meeting the demands of the energy companies has long been on the
New Andritz BioMax pellet mill
wish list of many large scale plant investors. To meet these demands, Andritz, a leading supplier of pelleting technologies for decades, introduces its BioMax pellet mill. The BioMax has double the throughput of one single pellet mill. The higher capacity per pellet mill unit means less machinery in the pellet plant, thus reducing footprint and reducing number of ductworks, bins, conditioning systems, steam pipes as well as electrical wire rings etc. to half. Less equipment also means fewer operators and less maintenance costs. Besides the very durable design, the BioMax pellet mill features individual feeding systems to each of the three press rolls. External roller adjustment with built-in press roll shock-load protection and other new
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technical features provides stability, operation-friendly high capacity production, and easy maintenance. Visit andritz-sprout.com.
SonicAire Reveals Dust Control Fan Combustible dust is dangerous: In just minutes, wood processing and bioenergy plants have been destroyed by explosions from combustible dust. OSHA takes this risk seriously and has levied heavy fines for those plants in noncompliance. Essentially, it is a zero tolerance for any buildup of combustible dust. SonicAire 2.0, manufactured by IES, is the industry’s engineered solution that proactively keeps wood processing and bioenergy plants continuously clean. It works using the innovative BarrierAire technology, which directs and controls air flow, creating an air barrier that shields overhead structures so fugitive dust does not accumulate. It is a high-performance fan with a 2 HP motor. The SonicAire 2.0 has more than 2.5 times the cleaning area as the original Sonic-Aire 1.0. This increased range means a
SonicAire 2.0
dramatic decrease in the cost of installation; since fewer fans are needed, the initial cost drops 50%. Other major engineering innovations in the fan include: l iDrive - with fixed setting and completely enclosed drive system l Sickle Fan Blade - for highest efficiency and sound level below 80 dBA at 20 ft. l Sleek, extended fan shroud increases cleaning distance The variety of mounting and
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control options assures that the fans can be customized to fit any plant. As a one-time investment, it can pay for itself in one year. Contact Jordan Newton, jtnewton@iesclean.com.
Bandit WTC Geared For Micro Chips Bandit Industries’ proportional drive infeed option on its larger drum-style whole tree chippers is the ticket item for microchip appli-
Bandit Industries 3590 microchipper
cations. With a proportional drive option, the feed system automatically slows as the engine lugs, decreasing the rate material is fed into the drum. This action tends to produce smaller chips, and keeps a
constant flow of material into the drum housing, which is perfect for microchip operations. Microchips from a Bandit are the most preferred by the pellet mills – nearly all are 3⁄8 in.-minus and most are 1⁄4 in.-minus. Bandit’s Card Breaker system reduces oversized material and is easy to install and remove. Bandit’s new proportional drive provides a continuous flow of material through the chipper and adds to the quality of the microchip. And if markets change, it is simple to convert a Bandit Microchipper to producea 3⁄4 in. fuelwood chip. Bandit’s new patent-pending Clean Feed System increases production because of the system’s superior pulling and crushing power, and it nearly eliminates the discharge of chips under the feed system, increasing yield by as much as 5%. “It’s like giving yourself a 5% raise. Plus you eliminate the mess.” Visit banditchippers.com.
Mid-South Caters To Wood Energy
Mid-South Engineering provides a broad range of professional engineering services centered on
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the forest products and energy industries, with offices in Hot Springs, Ark.; Cary, NC; and Millinocket, Maine. Whether the need is a small renovation or a complete integrated facility, Mid-South can provide a knowledgeable team capable of working with its clients for the best personalized solution to any unique situation. Its multi-disciplined staff includes: agricultural, industrial, me-
chanical, electrical, structural and civil engineers and designers with extensive wood product backgrounds. Mid-South offers professional services to manufacturing facilities producing pellets (white, torrified, steam exploded), biofuels, lumber, engineered wood products or any other product using wood as its resource. Mid-South Engineering has provided its services in a variety of locations in more than 40 U.S. states and in Canada. Internationally, it has worked in 19 countries including Australia, New Zealand, Brazil, Mexico, South Africa, Russia and the United Kingdom. “Our goal is to partner with companies and individuals to prove to them the value of our deep industry experience which is unique to Mid-South,” the company states. Visit mseco.com.
West Salem Provides Milling Islands West Salem Machinery (WSM) green milling islands combine screening and green milling machinery, like WSM’s Super Shredder, with an array of infeed and outfeed machinery to deliver a complete high capacity green milling island, including metering feeders, screening/cleaning centers, and gravity or air-assist discharge. Because each component is of the same mill-duty construction, the green milling island will operate with 24/7 reliability and durability. WSM dry milling islands include WSM’s 4400 series hammermills with ancillary machinery, including conveyors, feeders and screening/cleaning equipment.
This provides a complete high capacity dry screening and milling island for efficient production of fine-grind fiber. WSM’s complete hog fuel screening and grinding systems feature bulk feeders for metered feeding, magnetics, pre-screening and cleaning for reduced grinder wear and increased throughput, and grinding of oversized material to a consistent fuel size. Material transfer conveyors, support structures, and access platforms provide a fully integrated fuel preparation package. Visit westsalem.com.
DuraTech Tub Grinder Is Heavy Duty
DuraTech 3010 industrial tub grinder
The DuraTech 3010 industrial tub grinder is built for extreme wear and tear. It can handle stumps, logs, branches, pallets and green waste, turning them into mulch and compost in no time. Powered by a Cat C15 475 HP or 540 HP Tier III diesel engine and outfitted with a 30 in wide oscillating stacking conveyor, this machine can take on the toughest of jobs. Thanks to remote controls and a microprocessor controlled wet clutch, it’s easier than ever to operate. Plus, the self-cleaning air intake system helps protect the engine, reduce engine noise and extend the life of the machine. Visit duratechindustries.net.
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