Howard Hedstrom takes members of the Biomass Steering Committee on a tour of Hedstrom’s mill on September 12, showing the production and utilization of the wood chips, a by-product of the milling operation, as it relates to Hedstrom Lumber Company’s use of biomass. Committee members (L-R) John Bottger, Gary Atwood, Paul Nelson, George Wilkes, Tim Kennedy, Mike Garey, and Howard Hedstrom.
Study continues on the feasibility of constructing a biomass fueled district heating plant in Grand Marais. If the numbers look good, the project will continue. On September 26, the Cook County Biomass Committee and its consultants updated the public on where things stand in the process.
Biomass Coordinator Gary Atwood gave some statistics on how much wood is available within a geographic range that is economically feasible and environmentally sustainable for use in the proposed plant. The forest within this range holds the equivalent of 8,000,000 ovendried tons of wood, including limbs and branches that could be used for biomass heat. The forest could sustain a harvest of the equivalent of 185,000 ovendried tons per year. In 2010, 44,000 tons were harvested. The biomass plant under consideration would require 3,400 tons a year.
The city of Ely is looking at seven options for utilizing biomass as an energy source, ranging from providing heat and hot water for Vermillion College to generating combined heat and power for much of the city.
The overall impact of emissions from a biomass plant like the one Grand Marais is looking at would be significantly lower than those linked to fossil fuels, and the systems being considered would have emission levels “significantly below” federal thresholds, Atwood said. Particulate emissions would be almost zero.
Gregg Mast of the BioBusiness Alliance of Minnesota spoke next. He explained that his organization was established by Governor Pawlenty in 2005 with a mission of growing bioscience industries to create jobs in Minnesota. The nonprofit organization has partnered with SveBio, a Swedish nonprofit looking for new partners in the U.S. In Sweden, he said, biomass creates the highest percentage of energy of all energy sources including oil. Sixty-two percent of Sweden’s district heating plants are fueled by biomass. The size Grand Marais would need would be right in the “sweet spot” similar to the size of many of Sweden’s plants, he said.
The BioBusiness Alliance is currently working on biomass projects with Itasca Community College and Fond du Lac Reservation. The organization is hoping Grand Marais could become a model for other communities, Mast said, which could result in some funding for the project. A biomass facility already constructed at the University of Minnesota-Morris is doing well. These are super capital-intensive projects,” Mast said. While there are “huge unknowns,” he said, they are working out the kinks in these projects and making them economically worthwhile.
Mark Spurr of FVB Energy, a heating and cooling company brought in to help with Grand Marais’ project, said the systems being considered for Grand Marais are practical, “not rocket science,” “not bleeding edge,” and have been proven for years. “We want to do something that’s rock solid, and that’s the type of system we’re looking at putting in here,” he said.
Spurr said the type of system being considered for Grand Marais “would significantly reduce greenhouse gas emission.” He said it would insulate Grand Marais from the effect of greenhouse gas emission regulations he sees coming down the pike and would “easily” last 40-50 years.
Over the last 10 years, fuel oil prices have increased an average of 15 percent a year, Spurr said, and propane has increased an average of 11 percent a year. Interest rates are low right now, and now would be a good time to invest.
Howard Hedstrom of Hedstrom Lumber Company, which has its own biomass-fueled heating system, said a biomass system does require more attention than other sources of heat. Spurr said the sum of the challenge still leaves the system worth pursuing.
At this point, 21 commercial and governmental buildings in Grand Marais are being considered for inclusion in the proposed system. The 10 consumers using the most fuel oil or propane to heat their buildings and generate hot water are using 86 percent of the fuel oil and propane used by all 21 of those buildings.
The proposed biomass facility would cost an estimated $3.96 million for the plant and $3.37 million for distribution lines and hooking up to individual buildings. The systems being considered would operate at 70 percent efficiency and cost about $360,000 a year to operate, including the cost of biomass. Fuel oil would still supplement the system during periods of highest and lowest use. The consultants are looking at how many customers they would need for the project to make economic sense.
Spurr said his company is not interested in advocating for a system if it were not feasible. “Life is short,” he said. “We have plenty of other things to.” Besides, he said, “I don’t want to look stupid.” They might find that some of the buildings would not be better off hooked up to a district biomass plant.
One community member asked how much it would cost to install “the best of the best” emission control systems. Spurr estimated it would cost about $300,000 more than what they’re looking at. Another community member who had visited Sweden said he never saw smoke coming out of smokestacks when he was there.
Mast said they are working closely with the Minnesota Division of Energy Resources, the Minnesota Department of Natural Resources, the U.S. Department of Commerce, and the governor’s office. This portion of the study, expected to be done by March, will identify interested users and the costs involved in getting them hooked up.
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