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Forest Biomass Heating and Electricity in Ely, MN Community Meeting February 9, 2012 Dovetail Partners University of Min

Forest Biomass Heating and Electricity in Ely, MN Community Meeting February 9, 2012 Dovetail Partners University of Minnesota USDA Forest Service. Dovetail Partners, Inc. Gloria Erickson, Local Coordinator Cheryl Miller, Project Manager Kathryn Fernholz, Executive Director

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Forest Biomass Heating and Electricity in Ely, MN Community Meeting February 9, 2012 Dovetail Partners University of Min

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  1. Forest Biomass Heating and Electricity in Ely, MN • Community Meeting • February 9, 2012 • Dovetail Partners • University of Minnesota • USDA Forest Service

  2. Dovetail Partners, Inc. Gloria Erickson, Local Coordinator Cheryl Miller, Project Manager Kathryn Fernholz, Executive Director Dr. Steve Bratkovich Dr. Jim Bowyer University of Minnesota Dr. Dennis Becker, Forest Resources Dr. Steven Taff, Applied Economics David Wilson Ann O’Neill Study Teams and Steering Committee USDA Forest Service Lew McCreery, NE Area State & Private Forestry Dan &Tom Wilson, Wilson Engineering Services Ely AETF Steering Committee Roger Skraba, Mayor Harold Langowski, City Engineer Dave Olsen, Retired Engineer Rebecca Spengler, Business Owner

  3. Community-Driven Sustainable Bioenergy • Funded by the Environment and Natural Resources Trust Fundas recommended by the Legislative-Citizen Commission on Environmental Resources (LCCMR) • Provide objective information on the conversion of forest biomass to energy in Ely and Cook County. • Provide model for local and state decision-makers for use in considering biomass energy options.

  4. Project Overview Objective: Assess feasibility and impacts of community biomass energy systems in Ely and Cook County, MN Tasks: Technical / engineering assessment of biomass district heating and electricity Economic analysis of options over the life of equipment Assessment of current and projected biomass supply Environmental / lifecycle impacts of biomass energy Social assessment of supply chain issues (via community dialogue): forestry, transportation, processing, energy production, and distribution

  5. Timeline

  6. Study Approach Step 1: Estimate forest biomass feedstock availability and cost by species and location Step 2: Assess technology options for different sized heating and/or electricity systems Step 3: Evaluate the financial performance of biomass energy systems vs. existing fossil fuel systems

  7. Forest Biomass Availability • Step 1: Estimate forest biomass feedstock availability and costs • Annual Biomass Availability (within 60-miles of Ely; all species) • 1One cord is equivalent to 1.2 dry tons. Source: personal communication with each agency; USDA FIA 2Residual biomass includes tops, limbs, branches and needles as defined by the USDA Forest Service FIA biomass attributes. Assumes 50% retention on-site. • 3Fuels reduction removals from the Superior National Forest based upon an estimated 12,599 cu. yards of slash generated in 2010. St Louis County estimates based upon amount of slash processed into mulch at seven local transfer sites. • 4Includes non-industrial private woodlands, corporate, non-governmental conservation/natural resources organizations, unincorporated local partnerships/associations/clubs, and tribal timberlands.

  8. Biomass Supply Area by Distance Traveled

  9. Forest Biomass Availability • Step 1: Estimate forest biomass feedstock availability and costs Delivered Cost Stumpage Cost Harvest Costs Transport Costs In-woods Processing + + + =

  10. Bioenergy Technology Options • Step 2: Analyze technology options FS IP WC VCC CG HS H Ely, Minnesota

  11. Bioenergy Technology Options • Step 2: Analyze technology options Ely District Energy Engineering Study (Nov 22, 2010)

  12. Bioenergy Technology Options • Step 2: Analyze technology options • 1 59,746 dry tons of residual biomass generated in 2011 from within 60-miles of Ely • 2LHB, 2011

  13. Evaluate Financial Performance • Step 3: Financial performance of biomass vs. existing systems New system costs: • Boiler/ building/ turbine • Backup equipment • Annual fuel price • Annual operations • Piping • Hookups New system revenues: • Annual heat sales • Electricity sales (if any) • City taxes • Financing / debt service Current system costs: • Annual fuel price (rising?) • Annual operations expenses • Equipment replacement • Cost? • When? • How financed? • Annual average cost of heat comparison with new system

  14. Evaluate Financial Performance • Step 3: Financial performance of biomass vs. existing systems Example Example

  15. Other considerations Analysis of environmental impacts from transportation, harvesting, carbon emissions, and ash disposal Sustainability guidelines for biomass harvesting Community and stakeholder outreach and education to select preferred options Decision tools for other communities

  16. For further information, please contact:Gloria Erickson, Local Project Coordinatorgjerickson@frontiernet.net(218) 365-0878Cheryl Miller, Project Managercamiller@umn.edu(651) 653-8133 Questions?

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