Biomass and the Northwest Territories. Mike Burns: Assistant Deputy Minister Public Works and Services Government of the Northwest Territories

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1 Biomass and the Northwest Territories Mike Burns: Assistant Deputy Minister Public Works and Services Government of the Northwest Territories

2 2 The spark that caught fire 1 st commercial wood pellet boiler system installed at the North Slave Correctional facility in Yellowknife, in Owned and operated privately; a supply of heat agreement with the GNWT has proven economical for both parties. Boiler system produces enough heat to displace 560,000 L of heating oil each year. Proof that biomass is economical, reliable and environmentally responsible.

3 3 Current State of Biomass in the NWT Estimated that the NWT consumes approximately 21,000 tonnes of wood pellets a year. Pellets are burned in approximately: ~80 Commercial (public and private) wood pellet boiler installations with outputs ranging from 50kW 950 kw ~1,000 residential pellet stoves Residential wood stoves? Pellets are predominately coming from Northern Alberta in bulk and 40 lb. bags Price ranges: $4.5 - $6.0/bag $300 - $540/ tonne (Bulk) Consumers are seeing 30%-50% savings in heating costs

4 4 20/11/2015 NWT Energy Cost Comparison $0.90 Energy Cost ($/kwh) $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 Yellowknife Fort Simpson Inuvik $- Heating Oil Wood Pellets Electricity Propane

5 5 20/11/2015 $0.160 $0.140 Historical Heating Costs Yellowknife Heating Oil ($/kwh) Propane ($/kwh) Energy Cost ($/kwh) $0.120 $0.100 $0.080 $0.060 $0.040 Wood Pellets ($/kwh) $0.020 $-

6 6 Advocacy for Wood Pellets In support of growing the biomass market in the NWT, the NWT Biomass Association was created. Membership consists of contractors, suppliers, NGO and government participants. The group promotes the use of biomass through: The development of Heating Pellet Guidelines for the NWT Supporting the development/adoption of National Standards for Biomass Fuel and Heating Equipment Conducts outreach and education The development and implementation a Pellet Testing Protocol for NWT Pellet Supplies Find out more at:

7 7 The GNWT supports the Growth of an Industry The GNWT s Energy Plan, released in 2007, had three primary goals: 1. Reduce the use of imported diesel fuel for energy generation 2. Reduce greenhouse gas emissions 3. Reduce the cost of living in NWT communities An updated Northwest Territories Biomass Energy Strategy, was released and included the objectives to: Increase the use of biomass fuels Achieve measurable life cycle GHG emission reductions Create lasting economic benefits and provide cost savings in energy use, and encourage employment and business opportunities in the supply and distribution of biomass products and services Ensure that increased use of biomass fuels and forest resources are sustainable, with full consideration of the long-term health of the forest landscape and the resources and values it contains

8 8 Incentives Through the Arctic Energy Alliance the following biomass initiatives are subsidized. Wood stoves : 1/3 the cost up to a maximum of $700 Wood pellet stoves: 1/3 the cost up to a maximum of $700 Wood pellet boilers (residential): 1/3 the cost up to $5,000 Wood pellet boilers (commercial): 1/3 the cost up to $15,000

9 9 Where are the Markets? Yellowknife Area Year round road access South Slave Year round road access Fort Simpson Year round road access with outage periods Norman Wells Barge delivery or winter road Inuvik Road access with outage periods

10 10 Wood Pellet Delivery Bulk pellets by B-train deliver ~43 tonnes at a time to large on site storage hoppers. Private companies own storage in Yellowknife to service customers by pneumatic truck. Many companies provide 40 lbs. bags of pellets for purchase as well as in bulk (i.e bag pallets with delivery).

11 11 Types of Installations Commercial wood pellet boilers with large storage Chief Jimmy Bruneau School, Behchoko Hay River Schools Central Biomass Boiler

12 12 Types of Installations (Cont d) Commercial wood pellet boilers with short term storage Mackenzie Mountain School, Norman Wells Yellowknife Airport Terminal Building New Office Building, Yellowknife

13 13 Types of Installations (Cont d) Small commercial/residential

14 14 Types of Installations (Cont d) Pellet Stoves

15 15 What's Working Established pellet markets in regions has created consumer confidence in pellet availability. Proven technologies are operating with ease. Local expertise and support is providing peace of mind for the average consumer. Competitive market for boiler manufacturers and installers. Competitive market for the supply of wood pellets in the North and South Slave Regions

16 16 Challenges Increased maintenance requirements Transportation and storage logistics High initial capital investments Integration of wood pellet boilers isn t always Plug and Play Being on the leading edge (Bleeding Edge) Different pellet boilers and having them approved in the NWT Learning curve for design firms Changing performance specifications i.e. mandatory cyclones, method of heat dissipation

17 17 Challenges Bleeding edge with new technologies

18 18 Challenges What designs work

19 19 Regulatory Requirements/Challenges The Northwest Territories Office of the Fire Marshal (OFM) has created a special bulletin for the installation of wood pellet appliances - Commercial Solid Fuel Fired Boiler Systems The department of Public Works Boiler Safety verifies the installation of any boiler over 30 kw. Challenges arise with the varying makes/models of boilers that are coming of from Europe that are constructed to different standards CSA B-365 is referenced for compliance and in ways in antiquated Regulatory agencies would greatly benefit from the use of a national standard to reflect the current technologies in biomass technology.

20 20 Pellet Quality GNWT requires Premium Quality Pellets for government installed biomass boilers. Poor pellets greatly affect the maintenance cleaning schedules for boilers. Deliveries of poor quality pellets have occurred and maintenance staff have noticed the difference. % fines has a large impact on smaller boiler installations. Pellet Fuel Institue (PFI) Standard Specification for Residential/ Commercial Densified Fuel

21 Emissions 21

22 22 Thank you! More