NOTES OF THE BIO ENERGY STRATEGY CONFERENCE HELD ON DECEMBER 14, 2006 IN PRINCE GEORGE.

Transcription

1 FILE: NOTES OF THE BIO ENERGY STRATEGY CONFERENCE HELD ON DECEMBER 14, 2006 Janine Nrth, Executive Directr: Intrductins. Mayr Clin Kinsley, City f Prince Gerge: Prvided a welcming address. Cmpanies Present: Premium Pellet Pacific Bi-Energy Alternative Energy Canfr Wd Pellet Assciatin DuPnt BC Hydr. Bruce Sutherland: Prvided welcming remarks t all delegates attending. Janice Larsn, Directr Ministry f Energy, Mines and Petrleum: Prvince bi-energy develped in the last few mnths and what prmpted the Gvernment t examine the pine beetle infestatin. The Prvince s ecnmic dependence relies heavily n frestry and agriculture. Our cncern is the enrmus glut in the pine beetle infestatin and hw we can take this infestatin and turn it int an pprtunity. BC strng ecnmy requires mre demand fr the need f energy and electricity. Bimass prducts may be the pprtunity t create bi electricity and energy. Bi-energy strategy develpment in cnjunctin with Ministry f Frest, industry and BC Hydr. Gals, bjectives, and visin pprtunities: a) hme grwn energy; b) jb pprtunity; c) 50% f British Clumbia s energy is created by bi-mass energy and bi-mass residue management; d) develp remte First Natins energy resurces with bi-energy; e) wrk with ther Prvinces (like Alberta); and f) wrk with ther cuntries like Sweden and Finland.

2 Page 2 Janice Larsn, Directr Ministry f Energy, Mines and Petrleum Cntinued: Benefits: a) reduce energy frm resurce by using bi-energy; b) create 1,500 well paying jbs; c) reduce green huse gas by using wd energy; d) imprve crp develpment by grwing wdy trees t feed bi-mass industry such as wd pellet energy; e) frestry sectr creates 4,000 grwth wd fired electricity 1,300 GWH n cntract with BC Hydr; f) agri-green bi-diesel in Fernie. Research and develpment: a) University f British Clumbia wd science and chemical engineering; b) ethanl BC; c) bi-prducts BC; d) Bi cap; e) links t ther jurisdictins Sweden; f) creating synthetic gas and bi-diesels; g) wd ethanl; and h) bi-mass can create heat. Hydrgen, electricity, liquid fuels, wd pellets, cgeneratin, and bi refining. Supprted Plicies: a) value added agriculture; b) 2010 Olympics; c) cmmunity energy planning; d) climate change plan; and e) Federal and Internatinal energy imperatives. BC has prven itself that bi-energy wrks. Jim Scuras, Prject Manager (Majr Pwer Cells) BC Hydr: Acquisitin effrts by BC Hydr. The purchase f firm energy. One gigawatt hur (GWH) is gd fr a hundred hmes. Generate 43,000 t 54,000 GWH hurs annually. Open prvince wide call fr pwer thrugh the tendering prcess: Like all types f energy, especially clean energy. Need 2,500 GWH f firm energy. Tw separate calls fr pwer thrugh the tender prcess (large and small): 25 year cmmitment frm Independent Pwer Prducers (IPP) and the cntract term is set fr that duratin. Cmpetitin and transparency. Ranges frm 1 t 200 megawatt (MW). 81 registered fr the tender with 53 tenders received. 38 cntracts were awarded fr firm energy. Plant Gate Price clsest pint t BC Hydr grid; $74 per MW hur and $88 per MW hur in the Lwer Mainland. $3 t 4 billin in direct investment. 96 IPP cntracts t prduce 16,000 GWH annually (38 n line and 58 still being wrked n). Half hydr, 17% natural gas; 13% bi-mass/wind.

3 Page 3 Jim Scuras, Prject Manager (Majr Pwer Cells) BC Hydr cntinued: Prince Rupert t the Alberta brder IPP includes: Wind prjects Chetwynd/Dawsn Creek. Cal bi-mass Tumbler Ridge. Lad resurce fr firm energy calls. We will be lking fr new supplies in the future. In 2007, we will call fr 2,000 GWH t meet the gap fr electricity up frm 54,000 GWH. This prpsal is presently befre the Utilities Cmmissin. We have t address the market needs fr electricity n an annual basis. IPP s can mve frward t accmmdate the needs fr capital prjects. Bi-energy can help address the muntain pine beetle infestatin by using the wd fibre and bark t create energy. T cntinue t wrk with Industry, First Natins, Lcal Gvernments, and IPP t generate prjects t create electrical bi-energy. A lt f acquisitins and tender calls can be fund n ur website. One thing t keep in mind with IPP is the ability t cnnect t the pwer grid and t be able t dispense pwer thereafter. First Natins are als significant stakehlders in the pwer acquisitin prcess. Municipalities are als lking fr avenues t create pwer in their cmmunities and t be able t use their wn pwer. BC Hydr is wrking with municipalities t try t make this happen. Jhn Swaan, Executive Directr, Wd Pellet Assciatin f Canada: Hw we deal with what we have in ur resurces that was created by the beetle wd. Cmbined heat and pwer plant (CHP). Pwer pellets- ethanl direct heat. CHP ecnmics peratins and challenges. CHP cal fired plants cnverted t wd pellets in Helsingbrg, Sweden. Pssibility t create small business plants frm ne MW pwer t 10 MW pwer fr small cmmunities. CHP plants t run sawmill peratins and light industry peratins. Use lg residue, sawdust residue, and use the steam t cndense t create ht il and create energy. Operatinal requirements: based n 5/10 MW hur electric 25 t 30 MW hurs thermal times 8,000 hurs.

4 Page 4 Bi-mass: 300,000 green/tnne P/A pellets; 55 t 110,000 G/T P/A CHP. $1.4 millin tnnes f pellets prduced annually: apprximately 200,000 tnnes cnsumed in Canada and apprximately 700,000 tnnes cnsumed in Eurpe. Wd pellet specificatins need t be cnsidered. Misture and density, ash, grss C-V (5.6 MW hur, 20.5 GW, 8,900 BTU), net C-V (5.01 MW hur, 18.5 GW). Bi-energy can be very efficient peratin fr yur hme. This is wrking well in Eurpe. BC is prducing 900,000 tnnes f wd pellets per year. Anticipated prducing 100 millin tnnes f wd pellets in the future with the amunt f bi-mass that is available thrugh the beetle wd infestatin. Our challenges are getting access t the fibre and the radside debris. Maximize ur bi-energy resurces cmplementing ur need fr energy. Dr. Geff Battersby, Creating a Successful Bi-energy Plant t Heat Revelstke s Dwntwn Cre: See Handut Appendix A. Chris Ball, VP, Crpfinance Internatinal Ltd. - Lessns frm financing independent pwer P3 s in cmmunities acrss Canada: Pwer prductin is a capital intensive industry. Lng term pwer purchase agreements (PPA s) are required t supprt lng term financing. Lng term PPA allw IPP t seek cmpetitive financing as they benefit frm ff take cntracts frm Prvincially wned utilities. Varius Prvincial Gvernments are encuraging IPP s. Gvernment utilities are psitive, as pwer is priced relatively lw. Stakehlders are ften cncerned with lw cst firm pwer is nt always cnstant with clean green energy pwer and is nt always reliable. What d lenders need? Reasnable cmfrt in the debt. Price f pwer by IPP s. Engineered capital cnstructin. Pwer utput frecast studies t substantiate revenues and perating. Life insurance fr the cmpany and its assets. Lnger amrtizatin fr debt.

5 Page 5 Chris Ball, VP, Crpfinance Internatinal Ltd. - Lessns frm financing independent pwer P3 s in cmmunities acrss Canada cntinued: Credit supprt t minimize risk. Bnding r letters f credit. Sme level f guarantee t insure develpment f the prject. Security issues n the prject, always a cncern fr lenders. Other cnsideratins: Site prfiles. Finer language in PPA s. Third party agreements. Cnstructin cntracts. Input supply and cst management. Hw certain is the cmpany. Examine/cmplete feasibility study. PPA s is the agreement reasnable and a cnsumer price index (CPI) escalatr shuld be incrprated. Prjects need t satisfy all stakehlders, which take mre time fr apprval prcess. Address Abriginal issues t minimize failure prblems. Reginal/municipal input. Recreatinal input and surrunding areas. Maintenance plans. Owner/peratr experience. Alternatively a third party peratins management agreement. Cnstructin cntract and develpment t ensure the prject is develped n time. Unfreseen incidentals. Letters f credit/bnd fr cnstructin. Harvey Vwels, Manager, Business Develpment DuPnt Canada Bi-mass t Energy and Higher Value Prducts: Thanked the Nrthern Develpment Initiative fr putting n this sessin n bi-energy. We are a chemical cmpany primarily and we wuld like t start mving int the bienergy field and ecnmy.

6 Page 6 Our rle in Canada is t mve frward twards a new visin in energy. Harvey Vwels, Manager, Business Develpment DuPnt Canada Bi-mass t Energy and Higher Value Prducts cntinued: DuPnt emplys 1,100 peple in Canada. We are an internatinal cmpany and are wrld knwn. We have been a technlgy cmpany fr 205 years: Safety and prtectin. Electrnics and cmmunicatins. Catings and clurs paints. Perfrmance materials plymers. Agriculture/nutritin Bitechnlgy. Bi-based materials renewable energy pineer seed. $308 millin (Canadian dllars) sales annually. DuPnt by 2015 t have and develp bi-feed stcks and technlgy fr the future. Bi-mass feed stck t be cnverted t end prducts frm electricity, gas, t plastics and plymers. Srna plymer develped frm crn and sugar t plymer prducts t stain resistant clthing. This tk ten years t develp. T create bi-fuels thrugh agricultural prducts. Creating bi-butanl fr hybrid ethanl type vehicles. In this case the feedstck may be sugar beets and crn. DuPnt prducts may include varius plymers, cmpsites, plastics, electrnics, autmtive, and cnstructin frm bi-mass prducts. DuPnt is well aware f the vlumes f feedstck in Canada and therefre, we wuld like t lk at agriculture and residence bi-fuels, bi-butanl, bi-diesel, pulp mill birefineries, tritticale pulp mills, wheat/rye bi-cmpsites fr autmtive cnstructin. Value Prpsitin: We wuld capture values in heat and energy and then t transprtatin fuels and ultimately t chemicals. Use technlgy t cnvert residue int higher end prducts. We want t invest in British Clumbia with DuPnt science in fd, feed, and energy. Need t examine British Clumbia t develp a business strategy. There may be sme challenges that we need t address in British Clumbia. We need t have cmpetitive feed stck delivered t ur dr. Need t address the regulatins f British Clumbia.

7 Page 7 Harvey Vwels, Manager, Business Develpment DuPnt Canada Bi-mass t Energy and Higher Value Prducts cntinued: DuPnt wants t target rural cmmunities and have n interest in being a public utility. Where it makes ecnmic sense, we will invest in that cmmunity. n:\wrdpr\min\min 2006 ther\ntes bi energy - dec 14.dc