Biomass North Development Centre
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1 The Northern Ontario Bioeconomy Strategy Bioheat Project 100km Heat Diet Mayors Meeting January 8, 2018
2 Mandate: Support the development of a robust and sustainable bioeconomy in northern Ontario 2Biomass North Development Centre
3 Represent and advocate for entire supply chain Drive policy & regulatory reform Enhance technology transfer & drive innovation Develop domestic & export markets for bioproducts One voice for municipalities, First Nations, industry Partnerships with colleges, universities, NGO s 3Biomass North Development Centre
4 Services Bioeconomy Development Market & Technical Research 4Biomass North Development Centre Seminars & Workshops Tours & Trade Missions
5 Biomass Biological material derived from living or recently living organisms Organic matter renewable over time (human lifespan) Forestry Crops & Residues Algae Agri Crops & Residues Industrial Wastes 5Biomass North Development Centre Municipal Solid Waste Sewage Animal Residues
6 Sustainability 6Biomass North Development Centre
7 Number of Jobs in Ontario Harvest Volume (m3) Forestry Downturn Impacts ,000 30,000, , ,000 80,000 60,000 40,000 20, ,892 4,150 28,533 38,650 4,850 21,567 7,842 2, ,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Forestry and logging Pulp and paper product manufacturing Support activities for forestry Wood product manufacturing Harvest volume (cubic meters) 7Biomass North Development Centre Figure - Economic Impacts of Forestry Downturn Source: Natural Resources Canada Statistical Data,
8 Heat Need > Electricity Need 19% 8% Commercial Energy Use 2014 Ontario 11% 62% Space Heating Water Heating Auxiliary Equip Lighting 20% Residential Energy Use 2014 Ontario 9% 2%2% 67% Space Heating Water Heating Appliances Lighting Space Cooling 8Biomass North Development Centre
9 Bioheat Conversion - Residential Number of homes Metric tons pellets required Jobs created pellet production 100% oil 344, , % propane 57, , % electric 444,750 1,543,314 1,543 50% natural gas 1,837,300 10,837,666 10,838 and each mill job = 4 jobs in the forest! 9Biomass North Development Centre
10 Wood Energy = Cheaper Energy $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 $16.93 NG - 95% EFF PELLETS- 75% BOILER Cost Per Million BTU's North Bay 2017 $20.20 $25.11 $26.22 LNG - 95% EFF *** PROPANE - 95% EFF $36.30 OIL - 85% EFF $67.41 ELECTRIC - BASEBOARD Fuel Cost Comparison Spreadsheet: Energy Information Agency, US Government. 10
11 kilograms Biomass North Development Centre Reduce GHG s Annual total CO2 emissions to heat a typical house (20,000 kwh/yr) Oil Natural Gas Wood Pellets Wood Chips 11 Figure - GHG Emissions from different heating fuel types Source: Biomass Energy Centre
12 Northern Ontario Bioeconomy Strategy Sustainable Supply Bioenergy & Biofuels Biocomposites & Biochemicals Medicines & Foods Skills & Training Strategy 12 Policy & Regulatory Reform
13 Project Drill-down Community Forest Co-op Regional Aggregator Harvesting Modernization Export pellet mill 100 km Heat Diet 1) Northeast Superior Region (Wahkohtowin) 2) Manitoulin Island (Wikwemikong FN) District Heating - Marathon Combined Heat & Power (Cogen) Commercial/MUSH conversion (in discussion) Bioenergy & Biofuels Biocomposites & Biochemicals Medicines & Foods CLT/EW project Light manufacturing bioproduct park Traditional food/medicines to market Biomass-heated greenhouses (in discussion) 13
14 Context & Background: Qualifying Projects Scorecard Exercise NO-BS Scorecard Exercise: Capacity, Will & Support Existing Bioeconomy Focus Regional Impact Available Source of Supply Existing Energy Focus 14
15 Context & Background: NE Superior Regional Energy Strategy Strategic Actions: 1: Building Regional Capacity Through a Regional Energy Centre 2: Seizing and Leveraging Energy Funding Opportunities 3: Ensuring Transmission Capacity is Not a Limiting Factor 4: Develop Energy Generation Opportunities 5: Support Conversation 6: Pursue Carbon Credit Projects km Heat Diet!
16 100 KM Heat Diet Deep fuel switching Think of how residential oil or propane distribution works now Wood pellets instead of oil or propane 16
17 100km Heat Diet 100 kms 5000 kms 17
18 Real World Examples 18
19 Existing Projects 19
20 Northern Forest Center 20
21 21
22 22
23 Project Scope & Deliverables Deliverables: Identify demonstration projects locations/champions Establish project working groups accountability, ownership Research and develop high level technical design Assess technical and financial feasibility Research business model options Research funding options Develop demonstration project schedule, communications plan, bus. case Package project kit for project to move to implementation phase Create How-To guides for subsequent iterations 23
24 Biomass North Funding TOTAL NO-BS Funding: $216,000 from NOHFC and FedNor (over 2.5 years) Funds & Resources for 100km Heat Diet Project: 12.5 days labour Dawn Lambe 12.5 days labour Francis Gallo $1200 travel budget $230 print and communications budget Pre- Implementation 24
25 Project Process & Schedule MOU Signed: July 2017 Project Kick-off meeting: November 2, 2017 Working Group Meeting 1: Dec 19, 2017 Mayor s Meeting: Jan 8, 2018 Draft Reporting: end of January 2018 Final Report (following review): early-mid Feb 2018 Presentation to RES steering committee: mid-end Feb
26 100km Heat Diet - Outcomes Lower heating costs (up to 60%) Increase local jobs mill, forest, distribution Reduce greenhouse gases Attract investment Create new businesses Community Kits for replication 26
27 100km Heat Diet Recipe for Success homes in Phase 1 cluster Support existing businesses, not displace them Locally-sourced pellets Project champion (Wahkohtowin Development GP Inc.) Leader community & community leader Biomass North Development Centre 27
28 Biomass North Development Centre Dawn Lambe Executive Director (705) Francis Gallo Project Director (705) facebook.com/biomassnorth Biomass North Development Centre 28
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