Biomass and the Northwest Territories

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

The spark that caught fire

•  1st commercial wood pellet boiler system installed at the North Slave Correctional facility in Yellowknife, in 2007.

•  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.

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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

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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 short winter

road season

Inuvik §  Road access with outage

periods

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NWT Energy Cost Comparison

15-11-10

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$-

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

Heating Oil Wood Pellets Electricity Propane

Ene

rgy

Cos

t ($/

kWh)

Yellowknife

Fort Simpson

Inuvik

15-11-10

6

$-

$0.020

$0.040

$0.060

$0.080

$0.100

$0.120

$0.140

$0.160

Ene

rgy

Cos

t ($/

kWh)

Historical Heating Costs Yellowknife Heating Oil ($/kWh)

Propane ($/kWh)

Wood Pellets ($/kWh)

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: http://nwtbiomassenergy.ca/

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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, 2012-2015” 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

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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

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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. 55-60 bag pallets with delivery).

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Types of Installations Commercial wood pellet boilers with large storage

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Chief Jimmy Bruneau School, Behchoko Hay River Schools Central Biomass Boiler

Types of Installations (Cont’d)

Commercial wood pellet boilers with short term storage

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Mackenzie Mountain School, Norman Wells

Yellowknife Airport Terminal Building

New Office Building, Yellowknife

Types of Installations (Cont’d)

Small commercial/residential

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Types of Installations (Cont’d) Pellet Stoves

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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

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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

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Challenges Being leading edge with new technologies

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Challenges What designs work…

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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.

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Pellet Quality

•  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.

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•  GNWT requires “Premium Quality” Pellets for government installed biomass boilers.

Pellet Fuel Institue (PFI) Standard Specification for Residential/ Commercial Densified Fuel

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Emissions

Thank you!

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More information @: http://www.pws.gov.nt.ca/publications/index.htm