Canadian Biomass • March-April 2017 • Industry News

The Alberta government is giving 31 bioenergy companies shortterm funding while a new policy is drafted to support the growing industry.

According to a government news release, a third-party adviser and other stakeholders are advising government on new policy options to build on the expired Bioenergy Producers Credit Program. A report was expected by the end of March. The grants have been given to producers of biofuels, electricity, heat or wood pellets, and are based on how much bioenergy each company generates. Three of the recipients getting funding have projects under construction, representing $200 million in new investment for the province.

“We are excited to hear that bioenergy’s role in the fight against climate change is recognized,” stated Stefan Michalski, director of operations, Lethbridge Biogas LP. “This money is important to support biogas facilities like ours and to keep Albertans working as we build a self-sustainable, lower-carbon future.”

“Bioenergy producers are job creators and technology innovators. The Alberta government is committed to supporting them, their employees and local economies as we diversify our energy sector, boost our economy and reduce emissions in Alberta,” said Government of Alberta Minister of Environment and Parks Shannon Phillips.

Alberta’s bioenergy industry powers the equivalent of 200,000 homes and contributes about $800 million to Alberta’s economy.

Equipment and operational issues as well as an uncertain market for wood pellets are behind Rentech’s decision to idle its pellet plant in Wawa, Ont.

The Wawa facility replaced problematic conveyors last fall but continued to experience equipment and operating challenges, the company recently stated. Idling the plant will allow Rentech to conserve liquidity as it formally explores “strategic alternatives for the plant including ongoing discussions with third parties.”

“While we believe that the issues we have been experiencing at the facility can be resolved with additional capital investments, we have concluded that it is not economical to pursue those investments or to continue to operate the facility at this time,” the company stated in a recent news release.

Rentech expected the idling period to be completed in early March, during which time a small group of employees will maintain the plant to keep it in working order for potential buyers.

Rentech’s Atikokan wood pellet facility is reducing its production to a level of 45,000 tonnes per year, which meets the company’s contract with Ontario Power Generation. The facility will stop shipping pellets to the Port of Quebec.

“We expect the Atikokan facility to generate cash flow in the range of break-even to slightly positive in 2017 under this revised operating plan,” the company said. Sales at the company’s New England Wood Pellet were negatively impacted by the warm winter and low cost of heating oil and propane, but the company believes the issues are temporary and expects business to return to historical levels of profitability.

Pinnacle Renewable Energy Group, a major pellet producer in B.C., is responsible for the majority of the Port of Prince Rupert’s success in 2016, according to port representatives.

Michael Gurney, manager of corporate communications for Port of Prince Rupert, told The Northern View that the port’s Westview Wood Pellet Terminal moved 896,257 tonnes of cargo last year, an increase of 22 per cent from 2015 numbers, and the most volumes the terminal has ever moved.

“[It’s] such a great made-in-B. C. success story, with Pinnacle Renewable Energy Group producing the wood pellets from essentially waste products,” Gurney said.

Pinnacle Renewable Energy Group owns and operates seven pellet plants across British Columbia.

Harbour City Solutions (HCS) consortium has been selected as the preferred proponent to build the Hamilton Biosolids Management project in Hamilton, Ont.

The announcement was made by Maple Reinders Group Ltd., which has a 50 per cent interest for design, construction and capital works of HCS.

The project is being delivered through a public-private partnership (PPP) using the design-build-financeoperate- maintain model, with a 30-year contract operations term.

The Hamilton Biosolids facility will treat all of the city’s biosolids processed by their wastewater treatment system using an advanced thermal drying process, the first of its level of quality and reliability in the province.

The new facility will produce ‘Class A’ pellets which will be sold to the agricultural community as a slow release organic fertilizer, or to coal burning industrial facilities as a renewable fuel replacement for coal.

This technology will also greatly reduce the number of transport trucks required to remove solids from the plant on a daily basis, greatly improving air quality in the area.

“A large number of the civil projects that Maple Reinders has constructed in our 50-year history have been in the water and wastewater sector,” said Reuben Scholtens, Maple Reinders’ director of infrastructure development. “As an established leader in the design, construction and commissioning of these types of treatment facilities, we welcome the growing popularity of the PPP model to deliver projects in this sector. The City of Hamilton’s leaders and their advisors were able to transfer risk from the municipality, while retaining cost certainty and maintaining ownership. They should be commended for making this project a reality for their citizens.”

The Hamilton Biosolids project is the third municipal biosolids-focused public-private partnership project in Canada and the second to secure federal funding from PPP Canada.

HCS plans to reach financial close in March of this year and immediately upon notification thereof will commence with design and construction.

Cascades and the Quebec government are investing $11.3 million in two residual forest biomass boilers at the Cascades Containerboard Packaging Cabano plant in Témiscouata-sur-le-Lac, Que.

The projects involve modifying two residual forest biomass boilers. One boiler will be upgraded with automated controls. The second, more ambitious project involves installing a new combustion chamber and combustion air preheater to the other boiler. These projects will allow the plant to improve boiler operating time and efficiency while limiting the use of another boiler that consumes heavy-fuel oil.

The Quebec government will contribute financial aid in the amount of $5.2 million for the two projects, while Cascades will invest $6.1 million.

“Projects like the ones announced today are part of a long list of environmental initiatives that have made Cascades a leader in sustainable development,” said Mario Plourde, president and CEO of Cascades.

Airex Energy officially inaugurated its biomass torrefaction plant, located in the La Prade industrial park in Bécancour, Que. In late February.

The industrial-size demonstration plant, which required around $10 million in public and private investments for its design, construction, and start-up, showcases biomass torrefaction technology CarbonFX. This technology, designed by Airex Energy, significantly reduces greenhouse gas emissions for many industries still using coal or coal by-products.

Airex Energy’s torrefaction process transforms biomass residues into biocoal pellets, a clean and renewable fuel that can replace coal and oil.

Biocoal’s unique properties allows it to easily disintegrate, so it can be ground up and combined with bituminous coal in thermal power stations producing electricity, without major changes to existing systems for handling, storing, and grinding coal.

The CarbonFX system also produces biochar, a product with a high carbon content used for soil remediation, liquid filtration and metal reduction. Biochar, when mixed with compost or peat moss, promotes plant growth. Biochar also helps reduce metals and enables rehabilitation of former mining sites.

Airex Energy’s business model is to export its CarbonFX systems worldwide. The entire forest industry, including sawmills, pulp and paper, and wood pellet producers, is Airex’s primary market for the CarbonFX systems.

The processing of wood residues into value-added products can allow companies in the sector to increase their profitability while diversifying their sources of income. And because of its simple design and small footprint, the CarbonFX technology is cost-competitive.

Since December 2015, Airex Energy has conducted a gradual commissioning of the plant’s equipment and performed several tests to optimize the process. The company started commercial biocoal and biochar production with the goal of producing 15,000 tonnes annually from residual biomass such as forest residues, sawdust, bark, and recycled wood for current and future clients in Canada and the U.S.

Canadian Biomass recently published a full-length feature on Airex Energy’s biomass torrefaction plant titled, “Airex Energy poised to scale up biochar technology.”

To read the full-length feature online at www.canadianbiomass.ca or check out the January/February digital edition.