NL funds pellet plant St. John’s, NL – The provincial government is backing a multimillion dollar proposal that will modernize a sawmill and establish a wood inventory yard and pellet facility on the Northern Peninsula. The $10-million investment in Holson Forest Products of Roddickton will sustain approximately 300 direct and indirect jobs in the region and create a new industry in manufacturing wood pellets. Under the Forest Industry Diversification Fund of the Department of Natural Resources, the company will receive a $7-million loan, to be repaid over a 15-year period, as well as a $2-million grant. The Department of Environment and Conservation will also invest $1 million under its Green Fund towards the establishment of the wood pellet facility. “This region of the province has been particularly hard hit in recent years as a result of the closure of two pulp and paper mills and the idling of a paper machine at the mill in Corner Brook,” said the Honourable Kathy Dunderdale, minister of natural resources and minister responsible for the forestry and agrifoods agency. “We have been working with industry to identify new markets to sustain the forest industry in this region and we believe Holson’s multi-phase proposal will carve a new future for the forest sector on the Northern Peninsula.” Holson will establish a regional wood inventory yard, which will allow harvesting to begin on the Northern Peninsula this season. The inventory of fibre will serve as feedstock for the proposed wood pellet facility when it starts production in the spring of 2010. The wood inventory yard will maintain direct employment in the industry for about 130 people. Sawmill modernization and the establishment of a pellet plant will create an additional 22 jobs. “I am ecstatic we have our forest industry back!” says Ted Lewis, president of Holson Forest Products. “This is a great day for the industry on the Northern Peninsula and in particular for Holson Forest Products. We see this as an opportunity to develop a long-term, independent business from a sustainable resource. Government’s commitment to this sector breathes new life into this area and is giving us an opportunity to diversify our industry for a new and exciting future.” Nipissing Biomass Inovation Centre born North Bay, ON – North Bay is about to become a destination for information on biomass renewable heating and energy as Nipissing University launches its Biomass Innovation Centre. The centre was established in spring 2009 with financial support from Ontario’s Community Go Green Fund and Nipissing University. Developed by the university’s School of Business and Economics, the Centre aims to provide informational resources, education, and technology transfer about biomass heating and energy to building professionals, engineers, and researchers. Biomass heating is already commonplace in the Netherlands and United Kingdom. Following Europe’s lead, the Biomass Innovation Centre will help develop the infrastructure for this new industry using existing resources in forestry, commerce, and trade. “We have an exciting opportunity to use a clean, renewable source of fuel in our backyards,” says project manager Pauline Rochefort, “so why not do all we can to develop an industry of our own making and help create jobs?” Rochefort estimates that wood pellet production can help stimulate at least 600 jobs in the region given the right circumstances. Rochefort adds that the real advantage of the centre is its ability to join research with practical application. At the university, Forest Bioproducts Research Chair Dr. Jeff Dech is involved in an extensive study to predict the location, quality, and quantity of biomass for viable heating and energy applications. Rochefort explains that, “Given the tremendous utility our region has for wood products, it’s evident we can develop a supply chain and work with manufacturers to bring all the necessary components of bioenergy to northern Ontario.” Research tackles biomass supply issues Vancouver – Two new research projects, largely funded by Genome BC, will help to answer questions about biomass conversion to ethanol and long-term tree production to best use the valuable energy found in British Columbia’s forests. The research will be based at the University of British Columbia (UBC). The first project will use genomics to determine the most efficient methods of releasing fermentable sugars from dead pine for cellulosic ethanol production. Dr. Jack Saddler, UBC’s dean of forestry, is leading this $1.1-million project to optimize ethanol fermentation from mountain pine beetle killed lodgepole pine. Saddler is confident that the solution found for coniferous trees will be transferable to deciduous varieties as well. “The idea is that once the dead lodgepole pine starts to run out in about 20 years, we will have had enough time to replant with a fast-growing variety to replace it,” he says. The second project will use genomics to optimize poplar breeding and selection to improve its potential as a biofuel resource. This $7.7-million project, led by Drs. Carl Douglas and Shawn Mansfield of UBC, will build on previous Genome BC research that contributed to the sequencing of the poplar genome in 2004. In addition to their quick growth, poplars produce wood that is easier to convert to fermentable sugars for ethanol production than conifers. The researchers will identify the genetic characteristics of certain wild poplars that allow the wood to be broken down more easily and with a higher yield, so that liquid biofuels can be produced more rapidly and inexpensively, with less chemical processing. “We need to be thinking about feedstock supply 10 to 15 years from now, so that we will have poplars ready to be harvested, which will allow us to keep up with industry demand,” says Mansfield. The research will ultimately create the basis for a poplar breeding program to fuel the forestry bioenergy sector. UNECE/FAO releases forest product markets review Geneva – The United Nations Economic Commission for Europe has released its annual review of forest products markets for the UNECE region comprising Europe, North America, and the Commonwealth of Independent States (CIS). According to the UNECE/FAO’s Forest Products Annual Market Review, 2008-2009, the forest products sector has suffered in the past year, but wood energy use is increasing. Total consumption of forest products in the UNECE region fell by 8.5% overall in 2008, but there were marked differences among the three subregions: consumption fell by 12.7% in North America and 5.9% in Europe, but grew by 3.2% in the CIS. This trend was mainly driven by the sharp decline in the construction of new houses in North America and Europe. Linked directly with demand, production fell, resulting in mill closures and job losses. In contrast, demand for renewable energy sources, including wood biomass, continues to grow steadily due to governments’ incentive policies fostering climate change mitigation efforts and energy security. Wood pellet markets grew by approximately 20% in 2008 and are expected to double by 2012. Europe is the largest consumer and producer of wood pellets, whereas Canada is the single largest exporter (mainly to Europe). Asia could also become an important consumer of wood fuel pellets, as the first large-scale industrial projects to co-fire coal with wood biomass took place in Japan in 2008. The full report is available online at: http://timber.unece.org/ index.php?id=208. Dynamotive receives order for bio-oil Vancouver – Dynamotive Energy Systems, a developer of biomass-to-biofuel technology, has received orders for its bio-oil from a U.S.-based client. The order envisages a minimum of 18 shipments of bio-oil to be delivered over a period of six months, beginning in August 2009. The order follows delivery of a number of test shipments to the client in previous months, which demonstrated Dynamotive’s capacity to meet the required bio-oil quality standards. The value of the contract is estimated at $260,000. The West Lorne, Ontario, plant is capable of processing up to 130 tonnes/day of biomass and is located within a wood flooring manufacturing facility. The plant, which has been operating on a demand basis, has reached sustained operations at 75% of nominal capacity. Corner Brook district heating project progresses St. John’s, NL – With assistance of $125,000 from the Newfoundland and Labrador Green Fund, an engineering study will bring Corner Brook another step closer to an innovative, economically efficient and environmentally friendly District Energy Systems (DES) for the city. The DES, also referred to as district heating systems, provides energy in the form of hot water, steam, or chilled water through underground pipelines to businesses and residential neighbourhoods from a common energy source. The benefits of such systems include reduced energy costs, use of an industrial waste source, reduced greenhouse gases, and improved energy efficiency. “District heating systems are renowned for reduced energy consumption and reduced greenhouse gas emissions, two very important environmental considerations,” said the Honourable Charlene Johnson, minister of environment and conservation. “A major employer in the area, the paper mill is also a potential low-cost source of thermal energy. The engineering study will focus on the design of the heating system within the context of the city layout and help this worthwhile project move one step closer to fruition. In Brief ON has new feed-in tariff regulations New regulations for renewable energy have been introduced by the Ontario government under Ontario’s Green Energy Act. These include a feed-in tariff program that will allow individuals and companies to sell renewable energy such as biomass, solar, wind, water, biogas, and landfill gas to the grid at set rates. A streamlined approvals process has been established, as well as an Ontario Renewable Energy Facilitation Office, which will help renewable energy projects get off the ground faster. ON to update forest tenure system The Ontario Ministry of Northern Development, Mines, and Forestry has released a discussion paper, Ontario’s Forests, Ontario’s Future. The paper deals with how the province should modernize forest tenure and pricing; the system it uses to determine how wood supplies are licensed, allocated, and priced; and the associated legal obligations. A series of stakeholder and public consultations on these issues was held in September and October 2009. Atikokan Renewable Fuels to make pellets Atikokan Renewable Fuels has obtained full control over the former Fibratech mill in Atikokan, Ontario. The company plans to spend $15 million renovating the plant to produce industrial wood pellets. Pellet production is estimated to begin in early 2010. Cogen-pellet plant collaboration moves forward Biomass Secure Power and the Lower Nicola Indian Band (LNIB) have signed an agreement to build a biomass-fueled cogeneration power plant and a pellet mill in British Columbia. The joint venture will be developed under the name of Shulus Power, with each party owning 50% of the project. LNIB will provide the fibre and 25 acres on which the plant will be built. Biomass Secure Power will provide the engineering expertise to design, build, and operate the plant. Construction of the plant is expected to be completed by December 2010. ON supports local renewable energy investment Toronto – The Ontario government has introduced four new programs to provide assistance to community groups and municipalities that are looking to build new renewable energy facilities. Two of these programs target First Nations and Métis communities. Under the Community Energy Partnerships Program, community groups such as co-ops, nonprofit groups, and local partnerships are eligible for one-time financial assistance of up to $200,000 for project planning costs, including environmental and engineering studies. Community-based projects are eligible to receive a graduated incentive, based on the percentage of local ownership, of up to 1 cent/kWh in addition to standard feed-in tariff rates. The Municipal Renewable Energy Program will provide support to municipalities for extra infrastructure costs associated with renewable energy projects, for example, repairs to road and drainage infrastructure and traffic management. This funding is intended to cover costs over and above those that the project developers should bear. Under the $250 million Aboriginal Loan Guarantee Program, Aboriginal communities will be eligible for loan guarantees that will allow them to take on equity participation in renewable generation and transmission projects. The program will facilitate Aboriginal ownership in energy projects by providing loan guarantees for up to 75% of an Aboriginal corporation’s equity in an eligible project. The Aboriginal Energy Partnerships Program will build capacity and participation by providing funds for community energy plans, feasibility studies, technical research, and business plan development, and creating an Aboriginal Renewable Energy Network. Aboriginal communities will also be eligible, under certain conditions, for price incentives as part of the feed-in tariff program.