Wood Heat Technology Options for Residential and Light Commercial Applications. John Arsenault, Eng. MBA WPAC Director Market Access & Promotion

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1 Wood Heat Technology Options for Residential and Light Commercial Applications John Arsenault, Eng. MBA WPAC Director Market Access & Promotion

2 WPAC Wood heating options Cost comparisons Certification Quality Sustainability Wood Pellet Association of Canada 2

3 Advocate on behalf of Canadian wood pellet industry >65 members: pellet producers, ports, stevedoring companies, traders, equipment manufacturers, engineers and consultants, insurance industry & universities. Producers are export oriented (>85%) European industrial (coal) US and Italian heat markets Wood Pellet Association of Canada 3

4 Biomass conferences nationwide Industry representation at all levels of Government Technical support: ISO Committee, handbook publications etc. NRCan fuel testing Certification seminars Quality CANplus Sustainability SBP Wood Pellet Association of Canada 4

5 44 pellet plants in Canada Export focused, therefore concentrated near both coasts 4 million tonnes annual production capacity Wood Pellet Association of Canada 5

6 Exports Canada tonnes 2017 exports: 2.2 million tonnes 2016 exports: 2.4 million tonnes exports: 1.6 million tonnes ROW Holland Danemark South Korea Italy Belgium USA Japan UK Wood Pellet Association of Canada 6

7 Italy USA Canada Wood Pellet Association of Canada 7

8 Wood Pellet Association of Canada 8

9 Wood Pellet Association of Canada 9

10 Wood Pellet Association of Canada 10

11 1- Cordwood 2- Wood Pellets 3- Other biomass equipment Wood Pellet Association of Canada 11

12 Wood Pellet Association of Canada 12

13 Wood Pellet Association of Canada 13

14 Wood Pellet Association of Canada 14

15 Wood Pellet Association of Canada 15

16 Wood Pellet Association of Canada 16

17 Wood Pellet Association of Canada 17

18 Wood Pellet Association of Canada 18

19 Wood Pellet Association of Canada 19

20 Wood Pellet Association of Canada 20

21 Wood Pellet Association of Canada 21

22 Wood Pellet Association of Canada 22

23 Cordwood Low density: Large storage required local supply (water test) Green: hardwood best Low cost, Medium service required: ash, debris etc. Manual operation Good heat content if seasoned Can be stored outside, best covered Runs without electricity Pellets High density, efficient, low volume of storage, long distance friendly Greener: because of higher efficiency all wood about the same Higher cost, Low maintenance: ash, bags.. Etc. Automatic available at several levels High heat content (dry) Must be protected from water Needs auxiliary power (battery) in blackouts Wood Pellet Association of Canada 23

24 Heating oil 1$ per litre ($3,25/usg), 85% efficiency Natural gas 27 cents per cubic metre ($7,7/MMbtu), 85% efficiency Wood pellets - $300 per ton, 85% efficiency Electricity 15.4 cents per kwh, 100% efficiency Logs: $300/cord (4') wood 75% efficiency Source: Enbridge website Wood Pellet Association of Canada 24

25 $45,00 $42,78 $40,00 $35,00 $30,00 $/GJ, adjusted for efficiency $32,03 $25,00 $20,00 $20,76 $15,00 $14,58 $10,00 $8,52 $10,72 $5,00 $0,00 Gas Hardwood Softwood Wood pellets Heating Oil Electricity Sources: Enbridge, National Energy Board, WPAC research Wood Pellet Association of Canada 25

26 1,5 4' cord of softwood = 1000 litres heating oil 1,1 4' cord of hardwood = 1000 litres heating oil 2 tonnes of pellets = 1000 litres Heating oil 2 kg pellets = 1 litre heating oil. Bagged pellets sold by the short ton (50 bags) 1 tonne = 55 bags (18,1 kg) Wood Pellet Association of Canada 26

27 WPAC national Licenser for Enplus since 2013 ENplus is labelled CANplus in Canada Currently two Canadian certified producers Request for info from several others WPAC Hosts training seminars on a regular basis: + 25 participants in March Wood Pellet Association of Canada 27

28 Property Unit PFI Premium Diameter mm NSPS 5.85 diameter 7.23 CANplus A1 CANplus A2 CANplus B 5.85 diameter 7 Length mm 1 % greater than 1.5" (38.1) < L ) Moisture w-% 2) Ash w-% 3) Mechanical Durability w-% 2) ) ) Fines (< 3.15 mm) w-% 2) 0.5 (3.18 mm) ) ( 0.5 7) ) ( 3.15 mm) Temperature of pellets C 40 8) Net Calorific Value kwh/kg 2) 4.6 9) Bulk Density kg/m 3 2) kg/m BD 750 Additives w-% 2) 2 10) Wood Pellet Association of Canada 28

29 Canada recently mirrored ISO solid fuel standards into CSA standards ISO documents distributed by Natural Ressouces Canada (NRCan) recently Wood Pellet Association of Canada 29

30 350 million ha, 92% publicly owned Canada is recognized as a global leader in sustainable forest management, meeting the environmental, social and economic needs of current and future generations. Canada is a leader in third party certified forests with more than any other country. Wood Pellet Association of Canada 30

31 Wood Pellet Association of Canada 31

32 WPAC has participated in the Sustainable Biomass Programme (SBP) since day one Did V.0 testing in 2015 Currently member of its stakeholder committee Twelve Canadian Certificates to date, WPAC offering promotion and support to producers for certification Wood Pellet Association of Canada 32

33 For more information: Contact John Arsenault (819) Wood Pellet Association of Canada 33