WEST FRASER AND EPCOR JOIN FORCES IN HOUSTON Vancouver, BC – In what will likely become a familiar trend of forestry and energy companies partnering on biomass projects, West Fraser and EPCOR are working together to explore the potential of a biomass-fuelled 50- to 70 megawatt power generation facility near Houston, BC. The project is only in the pre-feasibility phase, but if it proceeds it will be developed as part of BC Hydro’s Phase II bioenergy Request for Proposal process. Home to some of the world’s largest sawmills, Houston has its share of sawmill waste. The project would use this as well as forest residuals from harvesting activities such as slash and limbs, and low-grade beetle kill wood. In fact, West Fraser has already run slash recovery tests using the John Deere 1490D fi bre bundler in the Houston area to get a handle on costs of this side of the equation. A decision to go ahead with the project will not be made until late 2008, and will be subject to West Fraser and EPCOR confi rming the economic viability of the project and being successful bidders in the BC Hydro process. Vancouver-based West Fraser runs sawmills and holds timber tenures in the area, while Edmonton-based EPCOR builds, owns, and operates power plants, electrical transmission and distribution networks, water and wastewater treatment plants and infrastructure in Canada and the US. It owns one of North America’s largest biomass power plants in Williams Lake, BC. PELLETS THE ANSWER St. Anne de Bellevue, QC – BioCap Canada and Resource Effi cient Agricultural Production Canada have released a report that identifi es solid biomass pellets as the best option for Ontario to reduce its greenhouse gas (GHG) emissions. Analyzing Ontario Bio-fuel Options shows that an incentive program for large-scale production and use of solid bio-fuels for commercial and industrial applications would be an effective and sustainable way to both grow the provincial economy and reduce dependence on coal and associated GHGs. It would also create new market outlets for the forest sector. In large-scale use, solid bio-fuels would be much more cost effective than ethanol and bio-diesel, and even more cost effective than wind power at avoiding carbon dioxide emissions. The full report can be found at www.reap-canada.com. CANADA INVADES SWEDEN Jönköping, Sweden – According to World Bioenergy, the largest delegation to visit the conference, tour, and trade show in late May was from Canada, as forest industry members and community leaders look for Scandinavian expertise for what is still a young fi eld in Canada. “The Swedes and Finns are ahead of the rest of the world in bioenergy development, largely because of a lack of oil and gas. Canadian industry has lagged behind because we have oil and gas,” explains Douglas Bradley, president of the Canadian Bioenergy Association and host of its own delegation of over 60 Canadians. “In particular we’re looking for the forest residual harvest equipment and knowledge, so we can use our forest biomass that is currently being burned or left to rot. That means everything from gathering branches and tops to transporting them in a cost-effective way. Still, both Bradley and the conference organizers acknowledge that much of the technology will have to be adapted to manage such particular Canadian challenges as varied harvesting systems, longer distances, and a lack of district heat infrastructure. Bois BSL buys Granby’s Ecolog Mont-Joli, QC – The Groupe Bois BSL, specialists in hardwood flooring based in Mont-Joli, QC, acquired Ecolog of Granby, QC in late May for $1.7 million. Ecolog makes energy logs, and will be added to Bois BSL’s energy division Bois BSL Énergie. “We are very pleased to add Ecolog energy logs to our line of products, known under the SmartLog and Qualiflamme brand names,” explains Stéphane Héroux, R&D director with Bois BSL. These logs are made from hardwood shavings and chips from the company’s flooring operations. The operations will be moved to an existing Bois BSL plant in Matane, part of Quebec’s Gaspé region. Overall, the company makes 18 million logs per year. BIOMASS EN MASSE Gatineau, QC – According to a paper presented by Francois Fortin of Quebec’s MNR at the well-attended Value from Biomass workshop held in Gatineau at the end of April, Quebec has a lot more forest biomass available than many had thought. Adding together Crown and private land, Fortin estimates there is up to 15 million m3/yr available to the emerging biomass sector in Quebec alone. He converts this to some 6.5 million tons of both hardwood and softwood (roughly 33% and 67% respectively). Www. Quebecwoodexport.com/biomasse. WBA SETS THE WORLD ON FIRE Jönköping, Sweden – The World Bioenergy Association (WBA) was formed this past May during World Bioenergy, held here in southern Sweden. Douglas Bradley, president of the Canadian Bioenergy Association (CANBIO) was appointed to represent Canada as a board member in the newly formed association. “Finding the best paths for sustainable biomass use is a global challenge, requiring global solutions,” Bradley said immediately after the announcement. “The bioenergy industry is fragmented compared to other renewables such as wind and solar power; biomass ranges from animal waste to leftover wood, and end uses range from heat and power to renewable products that can replace synthetic chemicals and plastics. But for bioenergy to take off, we need to speak with one voice. That’s what the World Bioenergy Association is all about.” The WBA aims to be a global voice for bioenergy, and to promote the use of biomass in a sustainable and economically effi cient way. The organization will also promote the trade of biofuels and biomass, the standardization of fuels, technical development and research. It also plans to develop certifi cation systems to ensure that bioenergy is produced in an environmentally friendly way, and under acceptable working conditions. Chaired by Kent Nyström, president of the Swedish Biomass Association, intended members include Canada, the US, Japan, Australia, India, Brazil, Sweden, and other EU countries. CO-FIRING MOVES TO PHASE 2 AT ONTARIO POWER GEN Nanticoke, ON – The Canadian News Wire reported in early June that Ontario Power Generation (OPG) has launched Phase 2 of its biomass testing at the massive coal-fi red Nanticoke Generating Station in this small community 30 minutes from Hamilton. OPG is currently testing the use of biomass as a renewable energy source for Ontario. Biomass used in OPG’s program consists primarily of wood pellets and agricultural byproducts such as grain screenings and milling spoils that can be burned to generate electricity. OPG does not use food crops in its biomass program, but has created a pilot project infeed system to mix some biomass with coal to partially fi re in one of its generators, a trial Canadian Biomass visited back in November 2007. “We continue to look for opportunities to reduce the impact of our station on the environment,” said Nanticoke GS plant manager Frank Chiarotto. “Co-fi ring coal with biomass could provide us with an option to reduce our environmental footprint. The Phase 2 test program is a signifi cant milestone as it will involve longer duration test burns”. To date, the station has successfully co-fi red milling byproducts with coal to produce over 1.3 million kilowatt-hours of electricity; enough power to meet the energy needs of 1,300 Ontario homes for one month. SOME HOT CHANCES Washington, DC – A new report from World Resources Institute, an environmental think-tank that counts Al Gore among its directors, sees a raft of opportunities for traditional forest products players in the new world of climate change, bioenergy, biomass harvesting and processing, and carbon sequestration. The key will be imagination, a sustainable base of forest operations, and making the right decisions over the next few years. In brief, this brave new world is ours to lose. “The particular consequences for each forest products company will likely differ widely, with new winners and losers emerging based on strategic decisions by both investors and corporate leaders over the near and medium term. Companies with experience in sustainable forest management > And supply chains may be better positioned to capitalize on new climate change regulations and market forces.” That last sentence should apply to just about any forest or wood products operation in Canada, giving us a clear advantage if we play our cards right. Many Canadian operations are integrated as well, allowing decisions to be controlled and optimized according to emerging markets right from the stump to the client, if we so choose. The 71-page report also discusses the growing demands on global forest resources, including increased protection of tropical and sub-tropical forests, as well as competition in fast-growing areas from bio-fuel crops. WOODY BIOMASS TRADE DOUBLES Seattle, WA – According to Wood Resources Quarterly (WRQ), the global trade of woody biomass has doubled in fi ve years, with the global trade in wood pellets alone reaching a record three million tons in 2007 (world production is in the neighbourhood of 10 million tons, with Canada making at least 1.5 million tons). Much of this increased trade is due to policies implemented by European governments to generate more energy based on renewable resources instead of fossil fuels. Sawmill residuals have been the most common fi bre supply for energy generation, but with the growing demand and increased price of fossil fuels, it is becoming increasingly possible to use higher-cost forest waste, such as tops, branches, and previously unmerchantable trees. WRQ reports that global woody biomass trade was over 11 million tons in 2007, up from 5.6 million tons in 2003. The major trade routes have been within the European continent, and from Canada to Western Europe. The largest exporter of biomass in 2007 was Germany, which shipped 1.4 million tons to Austria, Belgium, the Netherlands, and Italy. Next came Canada, which shipped 1. 3 million tons, of which an estimated 600,000 tons were wood pellets. Most of the overseas volume was from BC to Belgium, the Netherlands, and Sweden, despite the seemingly costly 15,000-km voyage from > The BC Interior to Europe. WRQ concludes that the rapid expansion in global trade of biomass is likely to continue over at least the next three to fi ve years as more countries favour renewable energy, and local supplies of biomass are reaching their limits. Yet just how long this can last given climbing shipping costs and the paradox of using fossil fuels to send green energy to Europe is the big question WRQ asks. And that is why many local pellet producers are keen to develop a domestic market. Www. Woodprices.com. COMBUSTION EXPERT OFFERS NEW VERSATILE BIOMASS SYSTEM Trois-Rivières, QC – Combustion Expert Inc. has a new biomass burning system that is both compact and effi cient, the Quebecbased supplier says. Its ST Series can be installed on boilers up to 800 hp, and offers a host of advantages, including: • Quick manufacturing time • Possibility to convert existing boilers (water or fi re tubes) • Compact, space saving design • Possibility to assemble in a mobile unit • Remote monitoring and parameter control • Low initial investment compared to a conventional system • Anti-backfi re security • Automatic ash exhaust. The feeding process consists of a shaftless screw conveyor and a hopper bin to ensure constant fuel supply. The system operates with sawdust, bark, rip, or wood residues not exceeding three inches in diameter. It is also versatile, burning biomass up to 60% MC, with the resulting energy available for heating or for production processes. Overall, this new system looks more like a burner than traditional combustion chamber. Rather than having a latent fi re in the boiler, fi re is controlled and spread across the surface area of the boiler to ensure optimal use. Patent pending 61/022183. MAKING PELLETS THE MAINE HEAT Bethel, ME – Total domestic pellet consumption in the US is already high at nearly one million tons, but on a per capita basis is quite low compared to many European countries. Pellet entrepreneurs and heating oil companies in Maine are starting to work together to change that. For one, Maine Energy Systems of Bethel, ME, is investing $10 million to launch a company with the lofty goal of introducing pellet-based heating systems to thousands of homes in the US northeast, helping them convert from outrageously priced oil to pellets. Its goal according to the Portland Press Herald is to convert 44,000 homes in Maine alone, and to work in Vermont, New Hampshire, New York and Massachusetts as well. The company says although twice the price of an oil boiler, a pellet heating system will save the average northeast home over $1,000 per year, paying for itself inside of seven years at the current price differential. Maine Energy Systems (MESys) is a growing company formed by local businessmen trying to keep jobs and money in Maine. They are winding up for the 2008-2009 heating season by offering totally automated pellet burning and boiler systems to Maine residents, along with attractive fi nancing in cooperation with a local bank. The European systems come from Bosch and Janfi re AB, and allow bulk delivery using pneumatic oil-style trucks and outdoor hopper storage systems. Bulk pellet contracts can be arranged for as little as $235/ton, pricing that MESys says will save a typical homeowner around $1,000 per year, even after the fi nanced annual cost of conversion is included. Add to that the green angle heavily played up in the news and on the company’s website, and you have an attractive package that the company expects will see demand exceed supply at the outset. MESys claims a carbon footprint reduction of 16 tons/yr per homeowner. With a delivery network that includes much of central and southern Maine, this quiet state may already be the future of our industry. Prince George a hit with bioenergy crowd Prince George, BC – Organizers of the Third International Bioenergy Conference and Exhibition in Prince George, BC say the event was by all accounts a great success. Sitting in a local bar at the time with energy traders from all over Europe and Canadian forest sector participants, I’d have to agree that interest was high. The conference saw 400 delegates from 20 countries, 50 exhibitors and 35 speakers, at what is fast becoming a must attend on the bioenergy conference circuit. BioEnergy 2010 takes place from June 1 - 3, 2010 in Prince George. Check www.bioenergyconference.org for the latest news on the Fourth International BioEnergy Conference and Exhibition. TWO NEW PELLET PLANTS FIRE UP Prince George, BC – New pellets plant in both eastern and western Canada recently launched into production. In early June, Shaw Resources of Nova Scotia unveiled its $9-million wood pellet plant in Belledune, NB, the dynamic company’s second pellet plant. Surrounded by eight sawmills within 150 km, the 75,000 ton/year plant is also minutes from Belledune’s seaport along the scenic Baie de Chaleurs. The pellets will go to European clients, with the fi rst ship sailing on June 20. General manager Gordon Dickie adds that the plant has been designed to allow Shaw to double the capacity if the fi bre supply or markets allow. Move 5,000 km northwest to Prince George, and Pinnacle Pellet launched its new wood pellet plant in July. The plant is perched next to Dunkley Lumber’s state-of-the-art sawmill just south of Prince George, and will use a mix of sawdust (80%) and beetle-kill timber (20%). The company has several licences to beetle kill timber, and will use that to trade with sawmills for sawdust, as well as for its own roundwood supply. PWC SEES GOLD IN SLASH Vancouver, BC – According to a recent PricewaterhouseCoopers (PwC) report on forest products sector mergers, acquisitions, and deals, wood biomass is emerging as an important renewable energy source, creating competition on already strained fi bre sourcing. Yet the global consulting fi rm sees substantial opportunities for forest products companies, spanning from supplying or aggregating forest biomass, to producing woodbased energy (heat and power) or producing wood-based transport fuels and value added chemicals and other materials. Forestry players may need to partner with oil and gas companies to leverage the expertise of both parties. Still, deals in the bio-energy area have started to pick up, with most transactions to date involve co-ventures and start ups. In 2007, global bio-energy deals increased around sevenfold to nearly $7 billion, with deals concentrated in North America, followed by Asia-Pacifi c and Latin America. There will be more deals in the future, and the forest products industry will feature in these PwC says. “The development of wood biomass as a renewable energy source is more complicated than many other renewable sources, not only because many of the various technologies are still in the research stage, but also because of the inherent competition with established product value chains,” says Bruce McIntyre, global sustainability leader for PwC’s Forest, Paper & Packaging practice. “The potential for wood-based energy and other new biomass-sourced products to signifi cantly transform traditional fi bre supply/value chains, and hence the current forest products industry, looks to be substantial. Companies cannot afford to be complacent about their chances of competing in this emerging scenario, since the most promising positions will likely rest with those controlling signifi cant volumes of forest biomass.” Given some imagination and energy, that should put the forest sector in the catbird’s seat.