Sealaska Wood Pellet Boiler Conversion Signature Project Presented to the Denali Commission September 28, 2009 Emerging Energy Technology Grant $843,160
Project Summary • “Signature” energy project – Green Saves 35,000 gal diesel consumption – Renewable Reduces 900 tons GHGs – Sustainable • Create the demand for Southeast Alaska wood residue and fiber • Demonstrate feasibility, effectiveness and savings of wood heat for large commercial and municipal buildings
Viessmann/KOB Pyrot 220 Widely used in Europe for Green energy
Sealaska Plaza Signature Project
Wood Pellet Distribution System
Sealaska Plaza Pellet Delivery Design
Replicability
How to grow an Industry • Create the demand to encourage a production facility? OR • Build a production facility to encourage demand? • Both must occur • Very difficult to do simultaneously • This project creates commercial demand • Demonstrates feasibility – for other building conversions – new construction
Total pellet demand in Alaska 2359 Tons City % of Statewide Demand 4,718,000 lbs # Stores Tons sold in past year # of 40lb bags/yr = 117,950 Avg. price/bag * incomplete data Insufficient demand Fairbanks 62% 5 Delta Junction currently in Southeast 1465 13% $7.12 1 to support production 300 $5.00 facility Wasilla Anchorage Glennallen 6% 9% ?% 2 8 1 40* 143* (declined) $7.81 $7.74 Haines <1% 1 0.4 Kenai $13.55 1% Valdez 1 <1% Juneau 25 1 6% $6.99 11 3 $8.25 140 Seward $6.81 1% Hoonah 1 <1% 12 1 $8.20 2 $8.99 Sitka 1% 1 Kodiak 14.6 1% $6.99 2 14.2* $8.50 Sept 2009 Ketchikan 1% 2 Sealaska Mater Engineering 31.5 $5.99
BC Pellet growth not from residences Metric Tonnes Good supply of pellets from British Columbia to allow us to establish demand to encourage construction of production facility
Wood Pellets: Savings over diesel fuel 1/3 rd price Local product of diesel Stable price
Demonstrates sufficient Southeast commercial demand
Demonstrates sufficient Southeast commercial demand
Biomass Supply for Production Facility After Demand is created
Readily Available Biomass Nice sized small pellet mill (production economics
Viking Lumber/Sealaska L.O.I. • Three prong approach: • 1) Feedstock Sourcing Analysis • 2) Manufacturing process of material • 3) Customer Base
Others Agree!! The Beck Group and TNC conclusions: • Lower cost sawmill residues available • Bioenergy can work in Southeast Alaska
Additional Biomass Material 430,000 acres clearcut on Tongass National Forest • 270,000 acres not managed • Creates an opportunity to manage – Commercial thinning – Biomass harvest • Additional 43,000 bdt per year (Terra Verde Consultants)
Biomass Crop
Benefits of creating this industry • Creates alternate green energy from renewable and sustainable wood residues • Helps to – converts unmanaged forests to managed forests – Makes uneconomic timber sales economic • Helps to stabilize Southeast’s timber industry – Loss of contractors – Loss of capacity and markets – Work force jobs and contracting – Community infrastructure to support logging – Loss of contractor contributed capital (barges, equipment, tugs, shipping, etc.)
Perspective 280 tons of pellets per year for Sealaska Plaza equals – 16 log truck loads of timber – One day of timber harvest – 35,000 gallons of diesel per year – 900 tons of greenhouse gas emissions
Conclusions • Will improve use of our forests • Create: – renewable demand for unused resource – sustainable alternate energy fuel • There is a demand for alternative energy heating systems • Our Signature Project saves $ money $ and energy
Howa’a (Haida) End of Gunalchéesh (Tlingit) Presentation Thank you Photo of Nutkwa Lagoon Reversing Falls
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