Building an Indigenous Bio-Economy. Bio-Energy Community

Transcription

1 Building an Indigenous Bio-Economy Bio-Energy Community Renewables in Remote Communities 2017 Conference Oct. 24, 2017 Whitehorse, Yukon David L Mackett & Craig Toset Whitesand First Nation 2017

2 Community Sustainability Initiative 2009 Whitesand First Nation created the Community Sustainability Initiative (CSI). Forward Thinking 5 Equally Valued Pillars of Sustainability Current Reality (external influences and internal reflection) Address Long Standing Systemic Problems Recognizes the inter-dependencies between society, culture, the environment, education, and economic development. The Economic Pillar is Whitesand s BioEnergy Project which intends to; 1. Create meaningful employment 2. Participate within Ontario s and Canada s forest based economy 3. Begin to address climate change directly at the community level 4. Reinvest in the 5 Pillars of Sustainability This presentation provides a snapshot of the many steps, barriers and accomplishments of Whitesand s Bio-Energy Project.

3 2017 The Current Reality Internal Reflection High unemployment rate with little or no chance for meaningful work. High on-reserve population is in receipt of social assistance. Many of social assistance recipients are without a grade twelve education. Poor secondary retention rates. Social despondence with many citizens experiencing drug dependency and low self-esteem. External Influences No power available for economic development Nearing Max Power Generation Future Housing or other Infrastructure Jeopardized Diesel Generated Power Hydro One Remotes Little Community Benefits Local Forest was abandoned by industry and is currently managed by the Crown. Local Forest Past Forest industry harvested trees for processing Thunder Bay. Accrual of benefits elsewhere with very little net local value.

4 Dependency on Social Assistance The mean education level is less than grade nine and the unemployment rate is high. The result is that social transfer payments account for the bulk of family income. Capacity: The ability to do, make, or accomplish something;

5 Vision & Commitment Whitesand s Vision of energy independence began in 1992 when the community and Armstrong, ON submitted a proposal for a community forest which included a bio-mass cogeneration facility. It not just about Capacity, it is also about Commitment. The proposal was turned down! Commitment to Community and to a Vision! Would have been easy to give up! Commitment by the community and successive Chief and Councils kept the Vision alive.

6 Whitesand First Nation Whitesand First Nation is located approximately 250 km north of Thunder Bay, Ontario, and is adjacent to Armstrong, near the northern tip of Lake Nipigon. Whitesand has approximately 1200 members with an on Reserve population of approximately 400.

7 5 Pillars of CSI Equal valuation of the 5 pillars requires an ethical approach to ensure that CSI has the goal of improving the livelihoods of community members any project through or initiative sustainable should benefit use of and the not local harm forest activities including another. new management practices, capacity building, innovation and green energy production. CSI is initially led forward by rebuilding the local economy through biomass energy production and independence. Society Culture Capacity Economy Ecology Community Green Energy Sustainability / Low Carbon Initiative Economy (CSI) Equally Flows valued Across and the dependent 5 Pillars of upon Sustainbility each other

8 Opening The Window In 2008 the meltdown of the Northwestern Ontario forest industry removed harvesting pressure on the Armstrong Forest and led to the abandonment of the Sustainable Forest License on the Armstrong Forest and re-designation of the Armstrong Forest as a Crown Forest. The meltdown created the Provincial Wood Supply Competition (WSC) was the trigger that opened the window for Whitesand to plan, propose and implement a New Bio-Economy. This would include a biomass fueled Combined Heat and Power Plant and a wood pellet manufacturing facility. Whitesand immediately and pro-actively positioned itself for the growing opportunity built a team (professional services) and submitted WSC proposal. In 2011 Whitesand was awarded fibre to begin the development of the project including engineering, land acquisition, environmental approvals, and the creation of biomass workforce.

9 Project Overview 5 MW cogeneration facility fueled by woody biomass. Approximately 2.1 MWe to power the pellet plant. Approximately 1.1 MWe to power Whitesand, Armstrong and Collins. Approximately 1.0 MWe other businesses and future growth Wood pellet plant Utilize steam and electricity from the cogeneration plant for various pelletizing processes. 90,000 metric tons per year of residential grade pellets. Exploring opportunity for advanced wood pellets.

10 Low Carbon Economy Minister of Environment Climate Change Discussion Paper goal of new economic growth that result from moving to a low carbon economy. Although this project provides minor reduction of GHGs compared to a large emitter, on a per capita basis Whitesand FN s Bio-Energy Centre will reduce GHG emissions by metric tonnes per person by 2020 compared to Ontario s reduction target metric tonnes per person. 10

11 Many Complex Steps Renewable Energy Approval Sept 2013 The Project was required to complete a Renewable Energy Approval (REA), subject to the provisions of the Environmental Protection Act and Ontario Regulation 359/09. The REA process entailed consideration of environmental aspects, natural heritage features and water bodies as well as heritage and archaeological resources. In addition, the REA process included, public, agency and First Nation consultations. Dec 2015

12 Many Complex Steps Engineering Complete Class 30 Feasibility Study 2012 The initial study for this project was used to establish whether or not, at a high level, the project makes sense at the location and specific site that was identified. The basic configuration and size of the Pellet Plant and Cogeneration Power Plant (Cogen) and the interdependence between the plants was established. Class 20 Appropriation Grade Study 2013 The next phase of project development was a Class 20 (+/- 20% accuracy) that would provide more detail for 60,000 tonne per year Pellets Plant and Cogen. Additional detail in community power demand and pellet plant power demand required the Cogen increase in size to 3.3 MW. In the Class 20 study, additional detail in the Design Basis Memorandum, Process Flow Diagrams, Heat and Mass Balances and fibre, thermal and electrical energy for the Pellet plant was developed.

13 Many Complex Steps Engineering Complete Class 10 Bankable Study 2014 The final phase of project development was a Class 10 (+/- 10% accuracy) that would provide for 60,000 tonne per year Pellets Plant and now 3.6 MWe Cogen. At this time more accurate equipment costing from specific vendors was obtained to establish the Class 10 opinion of cost. Class 10 update 2016 Due to the significant change in the value of the Canadian dollar and results of the latest Proforma it was decided to update the Class 10 Bankable study including a Wood Merchandizing Yard (WMY) and an increase in Pellet Plant capacity to 90,000 tonnes per year. The Cogen has increased in output to 5 MW with the three inch minus hog fuel coming from the WMY. Electrical Load Modeling 2016 To assisting the Power Purchase Agreement negotiations with the IESO, a Four Year Electrical Demand and Thermal Energy Demand model was created using hourly Community Power demand, hourly ambient temperature weather data and projected pellet plant operation data.

14 Many Complex Steps Power Purchase Agreement After nearly 2 years of work, negotiations, and struggles a Minister of Energy Directive was issued on December 14th, Directed IESO to complete a 20 year renewable Power Purchase Agreement. The Directive is based on set of principles and instructions to assist the project towards construction. The directive states Once developed, the project will support Ontario s goal of encouraging Aboriginal community participation in the energy sector. The project will also have a number of benefits including local job creation and reduced diesel use leading to reduced green house gas emissions. Began PPA contractual negotiations January 18 th 2016 and received draft contract December 23, Pleased to announce the Power Purchase Agreement negotiations have successfully concluded with signing date anticipated in November.

15 Wood Merchandising Yard Original design was to chip in the forest. With the merchandising yard we will bring in tree length and chip as part of the pellet plant processing.

16 Bio-Economy Centre With the addition of the merchandising yard Whitesand completed the purchase of the land from the Crown and renamed the property the Bio- Economy Centre. We have obtained all the required funding to begin site preparation which will commence in the next couple of weeks. Site will be a serviced industrial park (35.5 hectares) which as been split into two parcels 1 for the CHP and Pellet Plant and 1 for the merchandising yard. The site development which includes clearing, site lighting, site roads, fire pond, and site lighting.

17 Current Status The Bio-Economy Centre will lease parcels to tenants, namely the related and integrated (all owned by Whitesand First Nation): wood yard (Sagatay Merchandizing Yard) biomass power generation (CHP) facility (Sagatay Co generation) wood pellet facility (Sagatay Wood Pellets).

18 How Did We Get this Far? Project Dynamics Community Needs & Issues Government Mandates, Priorities and Action Plans Community Champions Progressive Project Development Drivers Vision & Commitment Internal Power System Monitor Steps Seek Partners with Common Vision First Nation, Federal Provincial and Industry Provides Support and Creates Momentum Builds Capacity Partnerships Achievement Celebrate Success Encouragement to Continue. Ontario Sustainable Energy Association Project Developer of the Year Biomass North, Community Project of the Year

19 How Did We Get this Far? Partners Our project has benefited from strong support between Whitesand First Nation and the Federal and Provincial governments. Natural Resources Canada Employment and Social Development Canada FedNor Indigenous and Northern Affairs Canada Northern Ontario Heritage Fund Ministry of Aboriginal Affairs

20 Natural Resources Canada and Ministry of Natural Resources & Forests Working closely with NrCan (CFS) and MNRF departments on a variety issues and opportunities to address project needs. Both NrCan and MNRF have and are providing technical assistance, community capacity building, helping to identify and solve issues, and connecting to other provincial and federal programs. land use permits, fibre supply, forest tenure and modernization, forest management planning, Facilitating discussions with other provincial and federal agencies, technical support.

21 BioEnergy Workforce Led Through BioEnergy Meaningful Employment Shawn Shapwaykeesic Power Engineering Program Jermaine Nodin Forest Ecosystem Technician Program Co-Gen Plant Pellet Plant Harvestin g Bush Haul Details Employees Includes co-gen operators, trades and shared admin/wood yard services 17 Includes pellet plant operators and shared admin/wood yard services 22 Sub-Total Facilities/ On-Site 39 (2) 3-man crews 6 Mechanic 1 Supervisor 0.5 Trucks (Drivers) Required: Based on 157,000 m 40 m 3 /load with 3,925 loads/240 days per year; 4 hours / load = 2 8 loads / shift / truck Loaders 1 Supervisor 0.5 Sub-Total Forestry/Contracted Services 17 Total Direct Employment 56 Life Changing Opportunity Gabriel Nodin Environmental Technician Program Burk Doni Welding and Fabrication

22 Workforce Development Workforce Development Identify and acquire training, skills development and focused training packages that match with employment positions. Continue to seek partnerships and supporting programs Main Build All trades required ( 100 man camp) Skills transferrable into biomass plant operations

23 Workforce Development New Partnership / Capacity Building Approach Newly formed workforce development partnership between the Ontario Workforce Innovation Centre, Ryerson University and Whitesand First Nation. Map out and develop multi-pronged training programs coinciding with the site preparation, construction, and preparing for operational workforce needs. 3 new positions starting October A Workforce Development Coordinator; evaluating training needs prepare, facilitate, monitor, evaluate and document training needs and activities. 2. A Human Resources Specialist; development of human resources policy, services and programs, implement strategic objectives and operational plans. 3. Community Workforce Liaison; to support the above two positions, coordinate and document community participation, workshops, career fairs, meetings, etc.

24 Benefits Community Owned project that will be the first to replace primary use diesel generators. Revenue from a first of its kind biomass power purchase agreement. Reduce air emissions from the diesel generators and home heating that currently use approximately 1,400,000 litres of fuel annually. Create approximately 60 full time and 60 seasonal jobs generating approximately $ 3.5 million in wages. Better forest utilization and timber optimization, maintaining sustainable and health forest ecosystems. Creating B2B opportunities with Industry.

25 MUCH MORE Means much more to Whitesand Pride of Ownership Empowerment Energy Independence CSI Reinvestment into the 5 Pillars Society Economy Capacity Culture Ecology

26 Next Steps Continue community training to raise employability skills and build local biomass workforce. Commence with feasibility study to replace current home heating fuel (approximately 300,000 litres annually) with pellet boilers/stoves. Proposal submitted to convert 100 homes from diesel and install a new district heating system for new 50 home subdivsion. Study potential for a greenhouse which would utilize waste heat from the facilities. Create more employment and supply fresh vegetables to community. In discussion with another First Nation on an Indigenous Bio-Energy Certification standard that accounts for the economic, social and environmental benefits of our respective operations. Indigenous Pellet Supply Chain! Northern Communities!

27 Status of Poverty in Ontario Poverty Line (LIM-AT- 2011) [1] Annual Income 2011 Single Adult $19,930 $621 x 12 = $7,452 [2] Lone parent with one child (under 6 yr) Basic Needs $227 Max Shelter $372 GST rebate $22 $28,185 $1, x 12 = $17, [3] Basic Needs $347 Max Shelter $584 Ontario Child Benefit $91.66 Universal Child Care Benefit $100 Canada Child Tax Benefit $ National Child Benefit Supplement $ GST rebate $34 Ontario Works (OW) Basic Income Gap Q. What role can Bio-Energy signify for social growth and responsibility? $12,478 (37% of LIM-AT) A. In forest communities such as Whitesand with similar characteristics (diesel, unemployment, geography, etc) Bio-Energy can demonstrate first hand how; $10,723 (62% of LIM-AT) Carbon Reduction can transform into Poverty Reduction Act as a catalyst towards economic prosperity and environmental responsibility

28 New subdivision = 50 new housing units connected to District Heating System Maximize community benefits from the forest; while ensuring the return back to the land creates a healthy sustainable forest. Society A BALANCE Capacity Log Homes sourced From Local Forest Domestic & International Market District Heating / Housing Retrofits Solar Economy Whitesand, Armstrong, Collins Smart Grid Value Added Waste Heat Power & Steam Economic Development Power Wood Pellets CHP Economic Development Power Green House Return to Environment Merchandising yard Local Forest Culture Forest Management and Environmental Services Indigenous and Western Knowledge Community Sustainability Initiative Ecology

29 Closing In the end, the Community Sustainability Initiative is about the longterm responsibility and accountability for Whitesand s economic, cultural, social, and environmental future which is led by a New Bio-Energy Economy. Ownership for that future can only rest with the Whitesand itself; however, Whitesand has sought and continues to seek expertise and partners to help us accomplish this vision. Thank you

30 Thank you For more information on the Community Sustainability Initiative please contact: Craig Toset Business Development Whitesand First Nation David L Mackett Community Sustainability Initiative Whitesand First Nation david.mackett@whitesandfirstnation.com