Is combined heat and power (CHP) right for your business

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00:00:00.030
so obviously here to talk about CHP
00:00:03.500 00:00:03.510 combined heat and power there are a
00:00:05.390 00:00:05.400 couple projects recent or under under
00:00:09.470 00:00:09.480 construction in the state that you'll be
00:00:11.240 00:00:11.250 hearing from CHP is combined heat and
00:00:14.720 00:00:14.730 power has been a part of our industry
00:00:17.060 00:00:17.070 for decades if not well
00:00:20.810 00:00:20.820 probably a century however it's really
00:00:24.550 00:00:24.560 getting a second look for a few reasons
00:00:27.109 00:00:27.119 one is there's perceived electricity
00:00:30.470 00:00:30.480 cost benefits I'm not entirely sure
00:00:33.740 00:00:33.750 those remain true but that's certainly
00:00:35.990 00:00:36.000 an issue it's a much more efficient use
00:00:38.150 00:00:38.160 of energy when we take take wood and
00:00:41.299 00:00:41.309 make electricity you capture somewhere
00:00:43.040 00:00:43.050 around 30% of the energy embodied there
00:00:45.889 00:00:45.899 any heat use bumps that up and can do so
00:00:49.250 00:00:49.260 significantly also have mill residue
00:00:54.619 00:00:54.629 challenges discussed a little bit this
00:00:56.779 00:00:56.789 morning the sawmill residue situation we
00:00:59.540 00:00:59.550 have will be turning into a crisis in
00:01:01.639 00:01:01.649 the spring probably not for everyone but
00:01:04.609 00:01:04.619 for some of you and it'll be a difficult
00:01:08.510 00:01:08.520 crisis that we can see coming and
00:01:10.730 00:01:10.740 frankly can't see how to fix so we're
00:01:16.249 00:01:16.259 gonna be hearing from from some leaders
00:01:17.899 00:01:17.909 and some real doers in the combined heat
00:01:21.679 00:01:21.689 and power space I'm gonna be talking
00:01:23.899 00:01:23.909 about their projects but also hopefully
00:01:25.789 00:01:25.799 sharing information you can learn not
00:01:27.920 00:01:27.930 only about what their projects doing but
00:01:30.050 00:01:30.060 how CHP can and can't work in different
00:01:33.980 00:01:33.990 situations I'm gonna go ahead and
00:01:36.620 00:01:36.630 introduce our first speaker and we're
00:01:39.230 00:01:39.240 just going to go ahead in the order that
00:01:40.910 00:01:40.920 they were listed so it's my pleasure to
00:01:42.530 00:01:42.540 and we'll be hearing from Alden then Bob
00:01:46.310 00:01:46.320 Linkletter Chuck Whaley was sappy and
00:01:49.300 00:01:49.310 finally been with do-e many of you
00:01:53.090 00:01:53.100 probably all of you know Alden Robbins
00:01:55.999 00:01:56.009 he is vice president and really you know
00:01:59.990 00:02:00.000 in the in the current generation of
00:02:01.999 00:02:02.009 leaders at robbins lumber a leading
00:02:04.969 00:02:04.979 white pine mill importantly he's also a
00:02:08.540 00:02:08.550 partner in George's River Energy why
00:02:11.449 00:02:11.459 he's here today it's a
00:02:13.550 00:02:13.560 sub ten megawatt and that's an important
00:02:16.339 00:02:16.349 number should be discussed a little bit
00:02:17.870 00:02:17.880 sub ten megawatt combined heat and power
00:02:20.570 00:02:20.580 plant under construction at their site
00:02:23.330 00:02:23.340 right now and they'll be utilizing some
00:02:26.240 00:02:26.250 of the heat and selling the electricity
00:02:27.470 00:02:27.480 so Alden so with our residue situation
00:02:32.120 00:02:32.130 and challenge we decided to look at
00:02:34.100 00:02:34.110 these different avenues and places to go
00:02:36.259 00:02:36.269 and luckily we were able to get in touch
00:02:40.640 00:02:40.650 with Robert Linkletter who was already
00:02:44.740 00:02:44.750 well down the path of getting his plant
00:02:48.110 00:02:48.120 up and going and so we were able to you
00:02:52.100 00:02:52.110 know bird dog off him and he was very
00:02:54.170 00:02:54.180 helpful in making our decision to put in
00:02:58.430 00:02:58.440 a CHP plant we already had the
00:03:00.800 00:03:00.810 infrastructure in place we had dump
00:03:03.650 00:03:03.660 stations we had warehouses we had yard
00:03:05.539 00:03:05.549 space we had steam engineers on on staff
00:03:08.570 00:03:08.580 so it was a logical step for us to take
00:03:11.780 00:03:11.790 that path wanting to know about energy
00:03:15.559 00:03:15.569 use we currently you know as a sawmill
00:03:20.090 00:03:20.100 you buy a lot of power about 9.8 million
00:03:24.349 00:03:24.359 kilowatts last year and growing every
00:03:27.170 00:03:27.180 year it seems like as we add new
00:03:28.789 00:03:28.799 buildings and processes but as you know
00:03:31.099 00:03:31.109 we're we're starting on this new project
00:03:33.860 00:03:33.870 with an eight point five megawatt system
00:03:37.250 00:03:37.260 CHP project and experience just what we
00:03:41.330 00:03:41.340 had on-site and I wasn't involved with
00:03:44.539 00:03:44.549 that project as I said before very level
00:03:47.090 00:03:47.100 CHP project experience I'm not an
00:03:50.030 00:03:50.040 engineer I'm just in sales and I I say
00:03:54.110 00:03:54.120 that every day in our meetings with our
00:03:55.550 00:03:55.560 engineers and drawings but you know we
00:03:59.059 00:03:59.069 realized we had a problem and we and we
00:04:01.160 00:04:01.170 we jumped on it
00:04:03.879 00:04:03.889 you know the program that allowed us
00:04:07.039 00:04:07.049 really to build a plan of this size was
00:04:09.710 00:04:09.720 the 2009 CB rep program it's the same
00:04:13.610 00:04:13.620 program that that Bob looked into and
00:04:16.250 00:04:16.260 that was a legislative program for those
00:04:19.670 00:04:19.680 of you who are not familiar that was
00:04:21.140 00:04:21.150 meant to geographically dispersed power
00:04:23.420 00:04:23.430 generation in the state of Maine
00:04:25.719 00:04:25.729 so the
00:04:27.440 00:04:27.450 geographically and also by the by the
00:04:30.200 00:04:30.210 sources of that power so they're going
00:04:32.120 00:04:32.130 after renewable it had to be under 10
00:04:33.770 00:04:33.780 megawatts the power had to be under 10
00:04:35.720 00:04:35.730 cents a kilowatt so we found out about
00:04:41.120 00:04:41.130 that program after visiting with Bob and
00:04:46.400 00:04:46.410 actually while we were on the tour I
00:04:48.560 00:04:48.570 found out that the program had reopened
00:04:51.130 00:04:51.140 for a brief window a time and we had
00:04:54.530 00:04:54.540 about a week to put in our RFP with the
00:04:58.100 00:04:58.110 PUC and you had to have full details on
00:05:01.760 00:05:01.770 what you were doing for a project the
00:05:03.260 00:05:03.270 size of your project what you wanted to
00:05:06.500 00:05:06.510 sell your power for how big the project
00:05:08.240 00:05:08.250 was gonna be luckily just with a strong
00:05:12.080 00:05:12.090 network of friends and associations in
00:05:14.690 00:05:14.700 the industry we were able to put
00:05:15.860 00:05:15.870 together a strong proposal and we're
00:05:18.890 00:05:18.900 successful and getting that proposal to
00:05:23.510 00:05:23.520 enter into a long-term power agreement
00:05:25.820 00:05:25.830 with central Maine power thermal energy
00:05:31.220 00:05:31.230 is very important to our operations you
00:05:34.280 00:05:34.290 know not only do we use the steam for
00:05:37.340 00:05:37.350 building heat in the winter but also for
00:05:39.290 00:05:39.300 our dry kilns I mean white pine is
00:05:41.240 00:05:41.250 notoriously difficult to dry and we need
00:05:45.350 00:05:45.360 constant steam for the heat for those
00:05:48.740 00:05:48.750 kilns that you know obviously as we
00:05:50.810 00:05:50.820 intend to grow we intend to use more and
00:05:52.790 00:05:52.800 more what have I learned that I didn't
00:05:57.920 00:05:57.930 know in the beginning just about
00:05:59.510 00:05:59.520 everything I learned it takes a there's
00:06:03.410 00:06:03.420 a lot to building a power plant a whole
00:06:05.780 00:06:05.790 lot you know it sounded so easy when we
00:06:10.070 00:06:10.080 were standing around the table talking
00:06:11.630 00:06:11.640 about what we're gonna do was build a
00:06:13.280 00:06:13.290 power plant you're I mean we do a lot of
00:06:16.190 00:06:16.200 things at the mill as far as you know
00:06:18.410 00:06:18.420 put a new carriage tracks or you know
00:06:21.590 00:06:21.600 put in pieces of equipment redo the
00:06:23.780 00:06:23.790 outfeed a power plants a whole different
00:06:26.630 00:06:26.640 scale and it takes a lot of expertise
00:06:29.810 00:06:29.820 and so you know going right into the the
00:06:32.990 00:06:33.000 last point which is what advice you have
00:06:35.150 00:06:35.160 for another company considering CHP you
00:06:39.890 00:06:39.900 know having a good team
00:06:41.210 00:06:41.220 around you is very important luckily
00:06:45.110 00:06:45.120 were able to utilize the wisdom of the
00:06:46.730 00:06:46.740 past with my uncle and my father you
00:06:49.790 00:06:49.800 know still being on our board and you
00:06:52.550 00:06:52.560 know helping to guide us using
00:06:56.770 00:06:56.780 associates and friends in the industry
00:06:58.550 00:06:58.560 like Bob consultants like Kingsley
00:07:02.780 00:07:02.790 you know we're using mid-south
00:07:04.130 00:07:04.140 engineering out of well they were
00:07:06.590 00:07:06.600 formerly out of Millinocket but now they
00:07:08.210 00:07:08.220 have a new office in Orono you know it's
00:07:11.990 00:07:12.000 it's quite a task to consider there's a
00:07:14.210 00:07:14.220 lot of people at mid-south that have a
00:07:16.460 00:07:16.470 lot of experience with power plants so
00:07:18.620 00:07:18.630 using an engineering firm to help you
00:07:20.960 00:07:20.970 from the beginning to help you design
00:07:23.750 00:07:23.760 the plant give you input you know not
00:07:28.220 00:07:28.230 only and where it should go but how big
00:07:30.320 00:07:30.330 what are you gonna do with the inputs
00:07:31.700 00:07:31.710 the outputs um there's a lot of things
00:07:33.650 00:07:33.660 to consider as far as assistance you
00:07:42.140 00:07:42.150 know not only engineering firm as far as
00:07:45.409 00:07:45.419 assistance that we received on the
00:07:46.490 00:07:46.500 outside we we did apply for a tiff with
00:07:48.590 00:07:48.600 the town that gives benefit to both the
00:07:51.860 00:07:51.870 project and the community to help reduce
00:07:55.490 00:07:55.500 the tax burden on the town the municipal
00:07:58.130 00:07:58.140 sharing as well as as for the project
00:08:00.650 00:08:00.660 because you can have tips with credit
00:08:02.030 00:08:02.040 enhancements so I would encourage you to
00:08:04.010 00:08:04.020 look into those programs there are the
00:08:06.050 00:08:06.060 pine tree zones which we are
00:08:07.310 00:08:07.320 constructing our plant in a pine tree
00:08:08.900 00:08:08.910 zone and I know that's up for debate and
00:08:10.520 00:08:10.530 that may not be around much longer n
00:08:13.690 00:08:13.700 MTC's is not a route we went the new
00:08:17.180 00:08:17.190 market tax credit program however other
00:08:20.480 00:08:20.490 projects have gone down that route and
00:08:22.340 00:08:22.350 there is a potential source of funding
00:08:23.990 00:08:24.000 for these projects the investment tax
00:08:27.440 00:08:27.450 credit or the production production tax
00:08:29.960 00:08:29.970 credit we are going after the investment
00:08:32.000 00:08:32.010 tax credit you have a choice of going
00:08:33.560 00:08:33.570 after either or that requires a
00:08:38.300 00:08:38.310 significant amount of due diligence on
00:08:40.190 00:08:40.200 on your side as far as documenting what
00:08:43.310 00:08:43.320 you've done continual progress there
00:08:48.079 00:08:48.089 they're sticklers as far as making sure
00:08:50.480 00:08:50.490 that you've met all the standards for
00:08:53.060 00:08:53.070 that but that is 30
00:08:55.050 00:08:55.060 of total project cost that's a
00:08:57.570 00:08:57.580 significant chunk when you start talking
00:08:59.460 00:08:59.470 about projects that go up in the tens of
00:09:02.310 00:09:02.320 millions the CB rep program obviously
00:09:06.150 00:09:06.160 helped us go along now that project that
00:09:08.070 00:09:08.080 program did sunset wherever you know
00:09:10.019 00:09:10.029 there is legislation that has been
00:09:11.490 00:09:11.500 tabled until next year which sort of
00:09:13.560 00:09:13.570 mirrors that program so that is a
00:09:15.510 00:09:15.520 potential opportunity coming up there is
00:09:19.019 00:09:19.029 the usda rural energy for America
00:09:20.670 00:09:20.680 program that will offer low-interest
00:09:24.180 00:09:24.190 loans or backing loans or end also
00:09:27.390 00:09:27.400 grants so that is a program that we've
00:09:29.670 00:09:29.680 looked into we're still waiting to hear
00:09:31.860 00:09:31.870 on that one
00:09:33.980 00:09:33.990 fame is out there to give financial
00:09:36.480 00:09:36.490 assistance and a whole variety of other
00:09:39.720 00:09:39.730 grants out there I mean when you start
00:09:41.519 00:09:41.529 doing grant researches I mean there are
00:09:43.710 00:09:43.720 people in this room that that's what
00:09:45.390 00:09:45.400 they do for a living is help help people
00:09:47.040 00:09:47.050 get grants but there are so many out
00:09:50.040 00:09:50.050 there it's it's it's hard to fathom so
00:09:52.440 00:09:52.450 just knowing what grants are you know
00:09:54.450 00:09:54.460 eligible for and that you can go for
00:09:56.670 00:09:56.680 that's that's a good road as well
00:09:59.960 00:09:59.970 efficiency of main our project was a
00:10:05.310 00:10:05.320 little larger in scale as far as what we
00:10:07.020 00:10:07.030 did for assistance from them but could
00:10:09.900 00:10:09.910 potentially on a smaller scale they're
00:10:11.790 00:10:11.800 especially interested in the back
00:10:13.470 00:10:13.480 pressure turbine styles or are some of
00:10:15.960 00:10:15.970 the smaller turbine installations and
00:10:17.940 00:10:17.950 then of course is using our educational
00:10:19.890 00:10:19.900 institutions UMaine Maine Maritime
00:10:21.720 00:10:21.730 Academy Maine Maritime Academy is really
00:10:24.060 00:10:24.070 good on the steam engineer side you mean
00:10:26.970 00:10:26.980 there are students out there always
00:10:28.170 00:10:28.180 looking for internships as well so just
00:10:30.750 00:10:30.760 helping with the staffing some of the
00:10:33.510 00:10:33.520 issues we ran into cost of project is
00:10:36.480 00:10:36.490 significant so financing that project
00:10:39.180 00:10:39.190 and I as I mentioned some of the
00:10:40.590 00:10:40.600 resources out there you know that's
00:10:42.300 00:10:42.310 going to be the number one hurdle is you
00:10:44.040 00:10:44.050 know can we pay for it and how do we pay
00:10:46.199 00:10:46.209 for it
00:10:48.230 00:10:48.240 interconnection is another one that can
00:10:53.040 00:10:53.050 blindside a project where is your
00:10:54.720 00:10:54.730 project located how are you gonna put
00:10:57.720 00:10:57.730 that power out onto the grid are you on
00:10:59.760 00:10:59.770 transmissions lines are you on
00:11:01.290 00:11:01.300 distribution lines and believe me before
00:11:03.180 00:11:03.190 I didn't know the difference now I do
00:11:04.890 00:11:04.900 and it's significant dealing with your
00:11:08.340 00:11:08.350 local you
00:11:08.910 00:11:08.920 that's a mirror cmp or whoever it's not
00:11:12.840 00:11:12.850 easy to get an interconnection agreement
00:11:15.919 00:11:15.929 we spent millions of dollars that we
00:11:18.479 00:11:18.489 didn't think we were going to have to on
00:11:20.849 00:11:20.859 our particular issue and everyone has
00:11:23.189 00:11:23.199 their own particular issue and I urge
00:11:26.069 00:11:26.079 you that if you're interested in going
00:11:28.169 00:11:28.179 down this path you find out quickly what
00:11:30.269 00:11:30.279 your issues are going to be and it's
00:11:32.369 00:11:32.379 it's hard it's hard to know that from
00:11:34.169 00:11:34.179 the beginning we found out that we're on
00:11:36.989 00:11:36.999 the end of a very long distribution line
00:11:39.479 00:11:39.489 and that distribution line did not have
00:11:41.280 00:11:41.290 the capacity to handle the amount of
00:11:44.999 00:11:45.009 power that we were awarded to be able to
00:11:47.939 00:11:47.949 sell back onto the grid so therefore we
00:11:50.699 00:11:50.709 had to rebuild that distribution line
00:11:53.069 00:11:53.079 and that's your responsibility to do
00:11:56.789 00:11:56.799 that and then there are a whole other
00:11:59.579 00:11:59.589 issues as far as operating and
00:12:01.229 00:12:01.239 maintenance costs on those lines and it
00:12:03.599 00:12:03.609 and it's a whole other arena that just
00:12:05.609 00:12:05.619 being people that produce sawdust for
00:12:07.679 00:12:07.689 generations we just did not have that
00:12:09.389 00:12:09.399 skill set but we had to learn it on the
00:12:11.970 00:12:11.980 fly the other part of that CB rep
00:12:15.150 00:12:15.160 program is it does require that you are
00:12:17.789 00:12:17.799 up in producing power to the grid by the
00:12:20.460 00:12:20.470 end of 2018 so we are up against a hard
00:12:22.739 00:12:22.749 deadline and getting these issues taken
00:12:27.960 00:12:27.970 care of it was very important on that
00:12:31.710 00:12:31.720 issue we were very fortunate to have the
00:12:35.369 00:12:35.379 services of Eaton Peabody on our side
00:12:37.619 00:12:37.629 and they were helpful and moving through
00:12:41.009 00:12:41.019 those issues for us I'm happy to say
00:12:43.169 00:12:43.179 those are behind us and I am also here
00:12:45.869 00:12:45.879 to apologize for the traffic on Route
00:12:47.609 00:12:47.619 three for anyone who had to deal with
00:12:49.019 00:12:49.029 that this summer going from Augusta to
00:12:50.460 00:12:50.470 Belfast because yeah that had partly to
00:12:52.529 00:12:52.539 do with our project the community having
00:12:56.609 00:12:56.619 community backing very important not
00:12:59.429 00:12:59.439 only for Tiff's but just for community
00:13:01.379 00:13:01.389 support behind you you know that have
00:13:05.249 00:13:05.259 the need and the understanding for what
00:13:07.979 00:13:07.989 you know the company's going through and
00:13:09.960 00:13:09.970 into and to have that community backing
00:13:11.549 00:13:11.559 is very important for public perception
00:13:13.529 00:13:13.539 PR permitting obviously it's a power
00:13:17.369 00:13:17.379 plant so there's big issues with air big
00:13:20.039 00:13:20.049 issues with emissions site location
00:13:24.030 00:13:24.040 you know we used different environmental
00:13:28.260 00:13:28.270 companies to help us through that
00:13:29.780 00:13:29.790 luckily in this current administration
00:13:32.720 00:13:32.730 the DEP is more helpful they are more
00:13:37.019 00:13:37.029 helpful than they were in the past they
00:13:38.640 00:13:38.650 are here to help you get this project
00:13:40.320 00:13:40.330 going rather than you know throw up
00:13:42.420 00:13:42.430 roadblocks and expect you to figure out
00:13:43.890 00:13:43.900 how to to get over those hurdles water
00:13:48.240 00:13:48.250 can be a huge issue these plants need
00:13:51.060 00:13:51.070 water for cooling feed water for us we
00:13:56.130 00:13:56.140 didn't think it was gonna be a big issue
00:13:57.540 00:13:57.550 because we were supposedly on you know
00:13:59.730 00:13:59.740 one of the the largest aquifers in the
00:14:01.650 00:14:01.660 state of Maine that just happened to be
00:14:03.060 00:14:03.070 dry so we ended up having to dig a large
00:14:06.780 00:14:06.790 number of wells we're in close proximity
00:14:09.630 00:14:09.640 to a protected River so that posed some
00:14:15.660 00:14:15.670 issues to us we had to make sure that
00:14:16.980 00:14:16.990 our wells weren't drawing from the river
00:14:18.510 00:14:18.520 in fact they were coming from different
00:14:19.560 00:14:19.570 water sources we had to prove that
00:14:20.940 00:14:20.950 scientifically fuel obviously as well
00:14:25.350 00:14:25.360 you know to heat the water up what about
00:14:28.290 00:14:28.300 fuel contracts what are you gonna do
00:14:31.050 00:14:31.060 long term we fortunate and unfortunate
00:14:34.250 00:14:34.260 enough have enough capacity at the mill
00:14:36.900 00:14:36.910 to supply about half our fuel going into
00:14:40.019 00:14:40.029 to our new project so our current
00:14:43.699 00:14:43.709 facilities aren't really enough to
00:14:45.570 00:14:45.580 handle what we're producing for fuels so
00:14:47.699 00:14:47.709 luckily with our new project we're gonna
00:14:50.220 00:14:50.230 be producing about eight times as much
00:14:52.140 00:14:52.150 steam as we were before so we're gonna
00:14:53.760 00:14:53.770 be able to to buy in fuel and hopefully
00:14:56.850 00:14:56.860 help out our local logging community and
00:14:59.449 00:14:59.459 then waste you know you will have
00:15:02.490 00:15:02.500 blowdown water you will have some
00:15:05.100 00:15:05.110 wastewater to deal with and that'll get
00:15:07.110 00:15:07.120 wrapped up in your permitting but but
00:15:08.730 00:15:08.740 how are you gonna deal with that are you
00:15:09.870 00:15:09.880 in a municipal supply for your water or
00:15:12.510 00:15:12.520 you have to you know where is your waste
00:15:14.790 00:15:14.800 where's your wastewater gonna go what
00:15:16.710 00:15:16.720 are you gonna do with it there there are
00:15:18.060 00:15:18.070 these are just a few of the issues that
00:15:19.650 00:15:19.660 I could think of on the on the top of my
00:15:22.110 00:15:22.120 head but the biggest thing is have a
00:15:23.490 00:15:23.500 good team around you and then make that
00:15:26.340 00:15:26.350 team better as you go along so we've met
00:15:29.070 00:15:29.080 a lot of people and worked with a lot of
00:15:30.960 00:15:30.970 people during this whole process
00:15:34.470 00:15:34.480 and we were very fortunate to have some
00:15:36.630 00:15:36.640 good help along the way thank you for
00:15:39.449 00:15:39.459 hosting this meeting today my name is
00:15:41.880 00:15:41.890 Robin Linkletter well all my brothers
00:15:43.680 00:15:43.690 Richard and Bruce we are owners of
00:15:45.360 00:15:45.370 Athens energy main would spell
00:15:46.949 00:15:46.959 accompanying Linkletter and Sons and
00:15:48.569 00:15:48.579 Linkletter Timberland my family's been
00:15:51.240 00:15:51.250 working in the woods for 53 years mmm my
00:15:54.449 00:15:54.459 company structure by design goes from
00:15:56.340 00:15:56.350 stump to customer with a recent
00:15:58.949 00:15:58.959 completion of Athens energy the puzzle
00:16:00.780 00:16:00.790 is now complete
00:16:01.740 00:16:01.750 I like to explain that we own 45,000
00:16:05.220 00:16:05.230 acres of land and we have our own force
00:16:07.710 00:16:07.720 crews and we have trucking and we saw it
00:16:11.130 00:16:11.140 and high-grade the wood we use every bit
00:16:13.380 00:16:13.390 of the wood the biomass goes to the
00:16:16.199 00:16:16.209 biomass plant but before it can be put
00:16:18.150 00:16:18.160 in the biomass plant it is screened and
00:16:20.730 00:16:20.740 will screen out any good chips and make
00:16:22.860 00:16:22.870 pellets out of them the poplar wood will
00:16:25.710 00:16:25.720 go to the pellet plant and the the logs
00:16:29.250 00:16:29.260 will go to the sawmills which we then in
00:16:31.319 00:16:31.329 turn repurchased the sawdust and the
00:16:33.389 00:16:33.399 chips from the psalmist to make either
00:16:34.710 00:16:34.720 pellets or biomass we also repurchase
00:16:36.750 00:16:36.760 Bach in the sawmill so we're pretty
00:16:38.910 00:16:38.920 integrated with with most of the
00:16:41.340 00:16:41.350 companies in the state of Maine
00:16:43.380 00:16:43.390 there is no no way no waste and we're
00:16:46.380 00:16:46.390 looking into something else to eliminate
00:16:48.780 00:16:48.790 waste we kind of get the highest and
00:16:51.689 00:16:51.699 best use of our ash we're currently
00:16:53.519 00:16:53.529 getting rid of it all now on on either
00:16:55.920 00:16:55.930 farmer's fields or other other
00:16:57.389 00:16:57.399 situations but we're looking into some
00:17:00.090 00:17:00.100 other things we can do with our
00:17:01.110 00:17:01.120 byproducts like biochar or activated
00:17:03.240 00:17:03.250 charcoal so there's all kinds of
00:17:05.490 00:17:05.500 innovation trying to go on in the woods
00:17:08.059 00:17:08.069 yeah the idea for Athens energy was
00:17:10.620 00:17:10.630 conceived four years ago when we had
00:17:13.199 00:17:13.209 very low temperatures and very high
00:17:15.449 00:17:15.459 electrical costs Maine woods pellet
00:17:18.539 00:17:18.549 could not sustain the cost of
00:17:19.980 00:17:19.990 electricity that winter so hmm
00:17:24.090 00:17:24.100 Athens energy was built on the site the
00:17:26.760 00:17:26.770 development company has so we were able
00:17:28.830 00:17:28.840 to utilize multiple multiple of
00:17:31.280 00:17:31.290 multitude equipment between both
00:17:33.180 00:17:33.190 companies
00:17:33.690 00:17:33.700 I spent plenty of time traveling to
00:17:36.510 00:17:36.520 Sweden British Columbia to observe
00:17:38.610 00:17:38.620 operations of existing power plants made
00:17:41.669 00:17:41.679 it up to either sawmills or pellet mills
00:17:44.210 00:17:44.220 and and they're very impressive
00:17:47.880 00:17:47.890 CHP CHP is prevalent in other countries
00:17:50.770 00:17:50.780 where they have been utilizing biomass
00:17:52.750 00:17:52.760 and electrical portfolio for many years
00:17:54.789 00:17:54.799 we found each situation that we looked
00:17:57.070 00:17:57.080 at to be different and built to the best
00:17:59.260 00:17:59.270 serve their host and user companies some
00:18:02.590 00:18:02.600 companies were making steam some paper
00:18:04.450 00:18:04.460 companies Requin t the route that I did
00:18:07.000 00:18:07.010 with organic rankine cycle and we're
00:18:09.520 00:18:09.530 making hot air and we were drying that
00:18:11.289 00:18:11.299 way when you run a pellet mill drying is
00:18:14.380 00:18:14.390 one of the most expensive costs or is we
00:18:17.620 00:18:17.630 have to reduce we takes two tons of wood
00:18:19.870 00:18:19.880 to make one ton of pellets 50% of all of
00:18:22.990 00:18:23.000 your wood goes up the stack as moisture
00:18:24.880 00:18:24.890 we evaporate a 55-gallon barrel of water
00:18:28.060 00:18:28.070 every minute Athens Energy is an eight
00:18:32.440 00:18:32.450 and a half megawatt CHP that delivers
00:18:34.659 00:18:34.669 not only power a nine million BTUs of
00:18:37.360 00:18:37.370 hot water and 36 million BTUs of hot air
00:18:40.060 00:18:40.070 to Maine woods pellet which is used in
00:18:42.520 00:18:42.530 drying of the pellet stock its pre
00:18:44.200 00:18:44.210 drying this time the new CHP piece
00:18:47.260 00:18:47.270 provided stability for the pellet
00:18:49.060 00:18:49.070 company by mitigating the cost of drying
00:18:51.250 00:18:51.260 frozen wood in the winter months and
00:18:52.990 00:18:53.000 allow us to run at full speed during
00:18:55.060 00:18:55.070 months when pellets are in most demand
00:18:56.760 00:18:56.770 it also allows us to expand production
00:18:59.680 00:18:59.690 in the future which we hope will
00:19:01.120 00:19:01.130 increase jobs Athens Energy is an
00:19:04.419 00:19:04.429 organic rankine cycle which is different
00:19:06.340 00:19:06.350 than most CHP the o RC boiler and the
00:19:08.680 00:19:08.690 turbine medium is not water it is oil
00:19:11.580 00:19:11.590 the oil is completely circulated and
00:19:14.320 00:19:14.330 filtered and reused over and over again
00:19:17.020 00:19:17.030 and we get out once a year and we may
00:19:19.510 00:19:19.520 add to it we'll check to the stability
00:19:21.310 00:19:21.320 of the oil the only thing we have to
00:19:23.260 00:19:23.270 watch out is that we don't burn the oil
00:19:24.730 00:19:24.740 then then it'll be ruined it has to be
00:19:26.980 00:19:26.990 replaced but the computer takes care of
00:19:29.320 00:19:29.330 that for us since operations began about
00:19:33.100 00:19:33.110 a year ago we've seen boiler
00:19:34.360 00:19:34.370 efficiencies by itself in the 30% and
00:19:37.120 00:19:37.130 when we calculate the use of the waste
00:19:38.799 00:19:38.809 heat that we are able to get out of the
00:19:40.600 00:19:40.610 world with 62% efficient which is pretty
00:19:43.990 00:19:44.000 amazing for CHP Athens Energy has been a
00:19:48.700 00:19:48.710 real boost for the loggers truckers
00:19:50.380 00:19:50.390 landowners pot suppliers and many other
00:19:52.480 00:19:52.490 local businesses within 100
00:19:54.200 00:19:54.210 of Athens currently Athens energy
00:19:58.190 00:19:58.200 purchase waste bike and chips from about
00:20:00.230 00:20:00.240 21 sawmills
00:20:01.610 00:20:01.620 the CHP model if spread across Maine
00:20:04.160 00:20:04.170 could truly be in the shot in the arm
00:20:05.630 00:20:05.640 for the economic growth and stability of
00:20:07.820 00:20:07.830 Maine's forest industry also if situated
00:20:10.880 00:20:10.890 correctly around Maine could truly
00:20:12.950 00:20:12.960 benefit rural Maine and could help boost
00:20:15.470 00:20:15.480 and stabilize the grid we have a great
00:20:19.370 00:20:19.380 resource in Maine I would it is
00:20:21.440 00:20:21.450 imperative to utilize every bit of it we
00:20:23.840 00:20:23.850 must have a market for the biomass
00:20:25.460 00:20:25.470 generated from the log in operation this
00:20:27.590 00:20:27.600 keeps the wood floor cleaner not only
00:20:29.960 00:20:29.970 for faster regeneration but also reduce
00:20:32.060 00:20:32.070 fire hazard the idea of CHP is based on
00:20:35.090 00:20:35.100 a stable long-term power purchase
00:20:36.770 00:20:36.780 agreement with utilities this along with
00:20:39.110 00:20:39.120 stable recs from States recognizing the
00:20:41.240 00:20:41.250 value of base loaded renewable power is
00:20:43.370 00:20:43.380 crucial the two programs we were able to
00:20:45.860 00:20:45.870 take advantage of in building Athens
00:20:47.690 00:20:47.700 energy with the new market tax credits
00:20:49.970 00:20:49.980 and investment tax credits these
00:20:52.040 00:20:52.050 programs were essential to get the power
00:20:53.870 00:20:53.880 plant built during this huge undertaking
00:20:57.560 00:20:57.570 we were bound to encounter some common
00:20:59.330 00:20:59.340 pitfalls from the Power Purchase
00:21:01.670 00:21:01.680 Agreement to the interconnection
00:21:03.260 00:21:03.270 agreement the electrical connection to
00:21:04.880 00:21:04.890 the first power to the grid the learning
00:21:07.040 00:21:07.050 curve
00:21:07.400 00:21:07.410 the learning curve was daunting from the
00:21:09.920 00:21:09.930 financing the transportation and
00:21:11.660 00:21:11.670 construction during the winter months in
00:21:13.250 00:21:13.260 rural Athens at times these these steps
00:21:15.620 00:21:15.630 seem never-ending with the prize in
00:21:18.230 00:21:18.240 sight though at the end we have
00:21:20.540 00:21:20.550 persevered so a CHP is an efficient
00:21:23.660 00:21:23.670 approach to reduce the energy cost I
00:21:25.460 00:21:25.470 believe that they not only reduce energy
00:21:27.470 00:21:27.480 costs but they could also stabilize
00:21:29.360 00:21:29.370 those costs for year to come it is to
00:21:31.160 00:21:31.170 come additionally they will promote many
00:21:33.530 00:21:33.540 internal efficiencies between the host
00:21:35.330 00:21:35.340 and user companies they also promote
00:21:37.940 00:21:37.950 efficiencies in companies such as
00:21:39.290 00:21:39.300 sawmill so don't have to landfill their
00:21:41.240 00:21:41.250 waste byproducts but we need to care on
00:21:44.420 00:21:44.430 a stick to get people to invest millions
00:21:46.190 00:21:46.200 of dollars on CHP is and now show some
00:21:49.520 00:21:49.530 savings to both host and user companies
00:21:51.530 00:21:51.540 we need a thermal rec class federal or
00:21:54.740 00:21:54.750 regional that rewards the base loaded
00:21:57.140 00:21:57.150 biomass plants that is either a
00:21:58.790 00:21:58.800 standalone federal or carved out of
00:22:01.100 00:22:01.110 existing regional recs that are now
00:22:02.780 00:22:02.790 available both New Hampshire and
00:22:05.240 00:22:05.250 Massachusetts have adopted thermal rec
00:22:07.330 00:22:07.340 and I believe that Maine and the federal
00:22:09.160 00:22:09.170 government should take a look at these
00:22:10.420 00:22:10.430 positive aspects that are happening in
00:22:12.430 00:22:12.440 these two states
00:22:14.280 00:22:14.290 another thing has happened is that the
00:22:16.600 00:22:16.610 state of Vermont has mandated that by
00:22:18.640 00:22:18.650 2030 sixty percent of all public and
00:22:21.970 00:22:21.980 school buildings shall be heated by
00:22:24.310 00:22:24.320 biomass either pellet or chip form just
00:22:27.910 00:22:27.920 look at the positives Maine has the
00:22:30.100 00:22:30.110 highest biomass boiler conversion
00:22:32.020 00:22:32.030 potential in the eastern US we have
00:22:34.180 00:22:34.190 millions of acres of renewable for us
00:22:36.190 00:22:36.200 and Maine has the most capable logging
00:22:38.680 00:22:38.690 industry available the SI power costs
00:22:41.230 00:22:41.240 are high but most of our power costs are
00:22:43.210 00:22:43.220 transportation and distribution charged
00:22:45.520 00:22:45.530 by our utilities I have found that these
00:22:47.680 00:22:47.690 costs are historically higher than the
00:22:49.540 00:22:49.550 cost of the power itself it is possible
00:22:52.660 00:22:52.670 to eliminate the T and D by locating
00:22:54.580 00:22:54.590 installations such as robbins lumber
00:22:56.470 00:22:56.480 near an existing facility while possibly
00:22:59.500 00:22:59.510 enticing new businesses with thermal
00:23:01.750 00:23:01.760 racks getting them to reach relocate and
00:23:03.820 00:23:03.830 have a symbiotic relationship
00:23:06.360 00:23:06.370 additionally the advantages to the
00:23:08.380 00:23:08.390 environment of many the carbon
00:23:10.360 00:23:10.370 neutrality the reduction of co2 and the
00:23:12.580 00:23:12.590 decreasing dependency on foreign oil
00:23:14.200 00:23:14.210 topped the list
00:23:15.690 00:23:15.700 imagine the emission savings when you
00:23:17.770 00:23:17.780 compare the transportation of biomass
00:23:19.600 00:23:19.610 from a 50 mile radius of a facility to
00:23:22.600 00:23:22.610 the transportation of oil from the
00:23:24.520 00:23:24.530 southern part of the United States or
00:23:25.930 00:23:25.940 worse yes or worse yet Saudi Arabia even
00:23:29.740 00:23:29.750 at the current rates biomass and pellets
00:23:31.990 00:23:32.000 are cheaper and cleaner heat source than
00:23:34.570 00:23:34.580 oil and propane in closing I believe my
00:23:37.840 00:23:37.850 experience with CHP has been positive
00:23:39.840 00:23:39.850 the marriage with other businesses will
00:23:42.400 00:23:42.410 help control energy cost the disposal of
00:23:44.800 00:23:44.810 waste byproducts job creation energy
00:23:47.710 00:23:47.720 efficiency and is a win-win for the
00:23:49.450 00:23:49.460 state of Maine Maine businesses today
00:23:51.520 00:23:51.530 both existing and in the future thank
00:23:54.370 00:23:54.380 you for allowing me to share my thoughts
00:23:55.590 00:23:55.600 our next speaker is Chuck Kweli he's a
00:23:58.900 00:23:58.910 senior engineer at sapis Skowhegan mill
00:24:01.750 00:24:01.760 and obviously paper mills pulp and paper
00:24:06.700 00:24:06.710 mills are huge energy users 24/7 they
00:24:10.570 00:24:10.580 all have their own power island so a
00:24:14.080 00:24:14.090 long history of a generation combined
00:24:18.250 00:24:18.260 heat and power at a different scale but
00:24:20.740 00:24:20.750 critical to the forest products industry
00:24:22.180 00:24:22.190 and really critical to the you know the
00:24:25.150 00:24:25.160 the success of the mill which is so
00:24:27.340 00:24:27.350 important to all of us so with that
00:24:28.690 00:24:28.700 please welcome Chuck my my talks a
00:24:32.080 00:24:32.090 little bit different than the first two
00:24:33.630 00:24:33.640 we've had a combined heating power cycle
00:24:36.640 00:24:36.650 since 1976 when the mill was first
00:24:39.040 00:24:39.050 installed I work at the Somerset mill
00:24:46.410 00:24:46.420 central Maine Skowhegan Maine mill was
00:24:50.560 00:24:50.570 put in as a pulp mill in 1976 in the
00:24:53.920 00:24:53.930 early 80s we added the first bait
00:24:55.690 00:24:55.700 machine mid-80s a second one in around
00:24:58.860 00:24:58.870 1990 89 added the third paper machine so
00:25:03.340 00:25:03.350 as I said it was started and installed
00:25:06.520 00:25:06.530 as a CHP right from the start really
00:25:09.100 00:25:09.110 it's kind of a combination of a CHP and
00:25:13.090 00:25:13.100 a conventional biomass power plant so we
00:25:16.030 00:25:16.040 have the ability to run like a
00:25:18.010 00:25:18.020 conventional plant where you have just a
00:25:20.410 00:25:20.420 power boiler turbine and a condenser and
00:25:23.650 00:25:23.660 you make power just like a standalone
00:25:25.750 00:25:25.760 plant to do it on top of extraction from
00:25:30.760 00:25:30.770 those turbines at a higher pressure
00:25:33.490 00:25:33.500 steam to run the pulp and paper making
00:25:36.640 00:25:36.650 equipment so a little bit about the
00:25:40.150 00:25:40.160 specifics of Somerset we make on average
00:25:44.200 00:25:44.210 about a million 250,000 pounds an hour
00:25:46.480 00:25:46.490 of steam 850 pounds pressure 850 degrees
00:25:50.320 00:25:50.330 Fahrenheit very complicated to run you
00:25:53.500 00:25:53.510 need you need the licensed engineers you
00:25:56.080 00:25:56.090 need water treatment personnel you need
00:26:00.070 00:26:00.080 you have all the turbine rebuilds all
00:26:01.930 00:26:01.940 the things that were talked about
00:26:03.010 00:26:03.020 earlier you know that's kind of our
00:26:04.750 00:26:04.760 daily life the thing about Somerset is
00:26:07.960 00:26:07.970 that we were they decided to go big so
00:26:12.310 00:26:12.320 not only do we have a black liquor
00:26:14.230 00:26:14.240 boiler we have two very large hog fuel
00:26:18.130 00:26:18.140 boilers multi-fuel boilers the recovery
00:26:22.450 00:26:22.460 boiler that's makes up about half of our
00:26:26.590 00:26:26.600 steam production so we get in something
00:26:30.910 00:26:30.920 like Ryan can correct me two million
00:26:33.460 00:26:33.470 tons of
00:26:34.510 00:26:34.520 logs and chips in which we make paper
00:26:38.980 00:26:38.990 pulp from about half of that mass of
00:26:44.410 00:26:44.420 that material ends up in the recovery
00:26:46.630 00:26:46.640 boiler so we burned that half of that
00:26:49.570 00:26:49.580 two million tonnes as black liquor in
00:26:52.180 00:26:52.190 the recovery boiler we have to hog fuel
00:26:56.950 00:26:56.960 boilers that have the ability to make
00:26:59.020 00:26:59.030 large amounts of steam we can burn about
00:27:02.440 00:27:02.450 80 tons 83 tons an hour and one boiler
00:27:05.590 00:27:05.600 wet tons and about 63 tons and the other
00:27:08.530 00:27:08.540 boiler and we have two steam turbines
00:27:11.730 00:27:11.740 one's a sixty megawatt double extraction
00:27:16.049 00:27:16.059 condensing leg the other is a
00:27:18.430 00:27:18.440 forty-eight megawatt so we make five
00:27:22.390 00:27:22.400 hundred seventy five thousand tons in a
00:27:24.010 00:27:24.020 year of Pulp 850 thousand tons a year of
00:27:27.340 00:27:27.350 coated paper in terms of our energy
00:27:33.460 00:27:33.470 eighty one percent of our fuel comes
00:27:36.220 00:27:36.230 from biofuels into the plant the
00:27:40.540 00:27:40.550 advantage of the multi fuel boiler for
00:27:42.790 00:27:42.800 us that is we burn our pulp mill sludges
00:27:46.060 00:27:46.070 in that boiler we incinerate our high
00:27:49.360 00:27:49.370 volume gases so the mill is nearly odor
00:27:52.570 00:27:52.580 free to the outside world and we can
00:27:58.450 00:27:58.460 bring in different types of fuel for
00:28:01.570 00:28:01.580 example we burn tire derived fuel TDF
00:28:04.710 00:28:04.720 which helps lower our cost of energy
00:28:07.419 00:28:07.429 generation obviously 81 percent of fuel
00:28:13.540 00:28:13.550 forest products are extremely extremely
00:28:16.120 00:28:16.130 important to us terms of the thermal
00:28:20.020 00:28:20.030 piece there's something like nine
00:28:22.360 00:28:22.370 trillion BTUs a year that go into making
00:28:27.040 00:28:27.050 pulp and paper and that thermal piece
00:28:30.970 00:28:30.980 from the CHP and all that's coming from
00:28:33.010 00:28:33.020 our CHP part of our plant is extremely
00:28:35.740 00:28:35.750 important to us and we put up lots of
00:28:40.240 00:28:40.250 money into heat exchangers preheating
00:28:44.530 00:28:44.540 that feed water bringing that up to
00:28:46.540 00:28:46.550 temperature
00:28:50.370 00:28:50.380 the question one of the questions is you
00:28:52.560 00:28:52.570 know what programs did we take advantage
00:28:54.180 00:28:54.190 of one of them is efficiency main we've
00:28:58.020 00:28:58.030 done a lot of projects with efficiency
00:28:59.669 00:28:59.679 main in general what they did was would
00:29:03.360 00:29:03.370 they would buy down the payback
00:29:05.190 00:29:05.200 so that would a project that the mill
00:29:07.200 00:29:07.210 probably wouldn't have done became
00:29:10.280 00:29:10.290 viable met our hurdle for green for
00:29:15.150 00:29:15.160 return on investment here's a couple
00:29:17.549 00:29:17.559 pictures of projects that have been done
00:29:19.290 00:29:19.300 heat recovery projects off hoods in the
00:29:22.110 00:29:22.120 paper mill and basically without the
00:29:25.980 00:29:25.990 efficiency main these projects probably
00:29:27.600 00:29:27.610 wouldn't happen in the timeframe that
00:29:28.830 00:29:28.840 they did there's three recent projects
00:29:36.140 00:29:36.150 hood recovery 11 million BTUs per hour
00:29:40.080 00:29:40.090 19 million BTUs per hour 9 million BTUs
00:29:43.380 00:29:43.390 per hour
00:29:44.010 00:29:44.020 again that thermal part of that CHP is
00:29:47.220 00:29:47.230 extremely important to us and we spend a
00:29:49.470 00:29:49.480 lot of time making sure that we're using
00:29:50.820 00:29:50.830 that wisely so a couple of the issues we
00:29:55.200 00:29:55.210 deal with is when you burn that much
00:29:57.900 00:29:57.910 solid fuel you've got ash that you have
00:30:00.090 00:30:00.100 to dispose of and we've made the choice
00:30:02.880 00:30:02.890 to burn entire Drive fuel with that with
00:30:05.760 00:30:05.770 that fuel so there's wire in the ash and
00:30:09.270 00:30:09.280 soul and spreading for us it hasn't been
00:30:11.400 00:30:11.410 an option so we're in the landfill
00:30:13.740 00:30:13.750 business which again is costly and not
00:30:19.710 00:30:19.720 the best place to be but for us
00:30:21.270 00:30:21.280 financially that's where it ends we end
00:30:23.250 00:30:23.260 up the other issue we have is we've
00:30:26.160 00:30:26.170 recently added natural gas to these
00:30:28.110 00:30:28.120 multi fuel boilers or the larger multi
00:30:30.510 00:30:30.520 fuel boiler and so our usage of biomass
00:30:35.400 00:30:35.410 can swing tremendously makes it very
00:30:37.710 00:30:37.720 hard for Ryan and his group to supply
00:30:40.530 00:30:40.540 the mill some years we can be four
00:30:44.100 00:30:44.110 hundred thousand tons wet tons other
00:30:46.080 00:30:46.090 years we can be nine hundred thousand
00:30:47.490 00:30:47.500 wet tons so that creates other
00:30:50.730 00:30:50.740 downstream problems in terms of storage
00:30:52.710 00:30:52.720 and the years that you have the huge
00:30:54.930 00:30:54.940 usage how do you store that material
00:31:00.599 00:31:00.609 talked a little bit about our thermal
00:31:03.489 00:31:03.499 usage we also have a lot of drive
00:31:06.339 00:31:06.349 turbines a lot of the turbines aren't
00:31:08.739 00:31:08.749 just producing electricity they're also
00:31:11.379 00:31:11.389 running mechanical equipment the line
00:31:13.389 00:31:13.399 shafts on the paper mill two of them are
00:31:15.219 00:31:15.229 completely done but with drive turbines
00:31:18.119 00:31:18.129 there there are vacuum turbines there
00:31:22.180 00:31:22.190 are fans on the boilers large fans ID
00:31:25.450 00:31:25.460 fans they call them those are powered by
00:31:27.669 00:31:27.679 steam so between the electric the
00:31:35.789 00:31:35.799 thermal and the mechanical you're
00:31:40.060 00:31:40.070 talking thirteen trillion million
00:31:42.700 00:31:42.710 thirteen trillion BTUs a year to run
00:31:45.249 00:31:45.259 that plant so our our CHP project I said
00:31:50.979 00:31:50.989 is you know they wanted a little bit
00:31:52.239 00:31:52.249 about our experience with the project
00:31:53.529 00:31:53.539 our projects been in place since 1976
00:31:55.869 00:31:55.879 with an addition in 1990 one thing I
00:32:00.669 00:32:00.679 will tell you I see a lot of the other
00:32:02.019 00:32:02.029 mills we have a mill in Westbrook which
00:32:04.619 00:32:04.629 many remote must probably know is that
00:32:07.869 00:32:07.879 had a pulp mill back in the up until the
00:32:10.570 00:32:10.580 late 90s that pulp mill was shut down
00:32:15.599 00:32:15.609 but the mill still makes a very viable
00:32:18.070 00:32:18.080 product but it just has a much smaller
00:32:20.349 00:32:20.359 thermal usage and one of the things
00:32:24.009 00:32:24.019 they're doing with their low pressure
00:32:26.469 00:32:26.479 steam is they actually give it away to a
00:32:28.479 00:32:28.489 local hospital so that's you know they
00:32:31.089 00:32:31.099 can generate the power off it and the
00:32:32.560 00:32:32.570 hospital gets the benefit of the free
00:32:34.029 00:32:34.039 energy we have a mill in grat corn
00:32:37.719 00:32:37.729 Austria which is you know the Europeans
00:32:42.579 00:32:42.589 do things so well their local community
00:32:47.259 00:32:47.269 was all on a hot water system for
00:32:50.440 00:32:50.450 heating and the grat corn mill basically
00:32:54.099 00:32:54.109 has taken some of their low pressure
00:32:55.509 00:32:55.519 energy and they ran nine or ten million
00:32:59.649 00:32:59.659 nine or ten kilometres miles of piping
00:33:05.049 00:33:05.059 to basically feed the local community
00:33:07.299 00:33:07.309 and doing what they call district
00:33:08.499 00:33:08.509 heating so they found a thermal load
00:33:12.070 00:33:12.080 some of this kind of lower grade heat it
00:33:13.899 00:33:13.909 allows them to generate more power so
00:33:16.720 00:33:16.730 that was a really kind of a neat project
00:33:19.210 00:33:19.220 it was just done the last couple of
00:33:20.380 00:33:20.390 years so in terms of programs I talked a
00:33:26.380 00:33:26.390 little bit about efficiency main the
00:33:28.860 00:33:28.870 other program we take advantage of our
00:33:31.810 00:33:31.820 renewable energy certificates sure most
00:33:35.860 00:33:35.870 of you are familiar with that product
00:33:37.330 00:33:37.340 but basically utilities have a mandate
00:33:41.970 00:33:41.980 portfolio that says they have to have a
00:33:43.960 00:33:43.970 certain amount of power from renewable
00:33:47.320 00:33:47.330 sources and we can sell the the fact
00:33:50.289 00:33:50.299 that we made the power on-site not the
00:33:53.110 00:33:53.120 actual megawatts but just the fact that
00:33:54.820 00:33:54.830 we made the power on-site from a
00:33:56.680 00:33:56.690 renewable and a renewable process that
00:33:59.440 00:33:59.450 meets their requirements we can sell
00:34:02.019 00:34:02.029 those certificates so that's that's been
00:34:04.659 00:34:04.669 a beneficial program for us is there
00:34:09.399 00:34:09.409 talked about room to expand I was one of
00:34:13.389 00:34:13.399 the questions we were asked we're
00:34:15.669 00:34:15.679 currently in the process of expanding
00:34:19.060 00:34:19.070 our production the number one paper
00:34:21.190 00:34:21.200 machine is being rebuilt that's a
00:34:22.750 00:34:22.760 hundred and sixty five million dollar
00:34:24.430 00:34:24.440 rebuild it's occurring right now
00:34:27.030 00:34:27.040 and that's going to get us into slightly
00:34:29.829 00:34:29.839 different products we'll be able to
00:34:31.270 00:34:31.280 swing back and forth but you know we're
00:34:33.700 00:34:33.710 really trying to make things that people
00:34:34.839 00:34:34.849 want to buy so we're also expanding our
00:34:39.040 00:34:39.050 wood room right now and rebuilding that
00:34:40.960 00:34:40.970 wood room there was like a thirty
00:34:42.849 00:34:42.859 million dollar project some of the
00:34:48.129 00:34:48.139 things what have I learned
00:34:50.320 00:34:50.330 was one of the questions I we were asked
00:34:52.240 00:34:52.250 and one of the things it's always
00:34:55.780 00:34:55.790 amazing to me is the fact that a
00:34:59.320 00:34:59.330 conventional biomass plant 75% of that
00:35:03.760 00:35:03.770 energy goes to the atmosphere you know
00:35:07.060 00:35:07.070 part of it through the stack and part of
00:35:09.160 00:35:09.170 it through what the cooling tower
00:35:10.450 00:35:10.460 rejects to the to the atmosphere and a
00:35:13.540 00:35:13.550 CHP plant you know what when we run as a
00:35:16.839 00:35:16.849 CHP we're over sixty percent efficient
00:35:19.210 00:35:19.220 so there's this huge swing and whether
00:35:21.430 00:35:21.440 that energy gets used efficiently or not
00:35:23.650 00:35:23.660 most most of the utility plants you see
00:35:27.370 00:35:27.380 out there rejecting huge huge amounts of
00:35:29.530 00:35:29.540 energy to the atmosphere that you know
00:35:32.560 00:35:32.570 the Europeans have found some ways to
00:35:33.910 00:35:33.920 use and CHP is definitely a way to take
00:35:36.580 00:35:36.590 advantage of that advice for companies
00:35:41.680 00:35:41.690 considering CHP well if you don't have a
00:35:45.100 00:35:45.110 process like a pellet mill then you need
00:35:47.620 00:35:47.630 to find a partner that you can that's
00:35:50.200 00:35:50.210 willing to take your energy so it's
00:35:55.150 00:35:55.160 about shopping around for the right
00:35:56.620 00:35:56.630 partner for that thermal load we've
00:35:59.590 00:35:59.600 looked at some of those loads for the
00:36:01.360 00:36:01.370 West Brook mill certainly the folks at
00:36:06.550 00:36:06.560 Grant corn in Austria found their load
00:36:08.830 00:36:08.840 as being the district heating heating up
00:36:11.290 00:36:11.300 the community so with that I'm all set
00:36:17.410 00:36:17.420 thank you very much
00:36:19.570 00:36:19.580 and now our final speaker doesn't have a
00:36:22.870 00:36:22.880 project but he works on dozens if not
00:36:25.870 00:36:25.880 more scores and scores of projects Ben
00:36:29.560 00:36:29.570 McDaniel comes to us with US Department
00:36:32.440 00:36:32.450 of Energy's combined heat and power
00:36:35.230 00:36:35.240 technical assistance program being from
00:36:38.260 00:36:38.270 the feds he just handed me something
00:36:39.760 00:36:39.770 that said as he's with do a CHP ta P
00:36:43.440 00:36:43.450 yeah so so Ben's here to talk about some
00:36:48.940 00:36:48.950 of their no-cost services and how they
00:36:51.430 00:36:51.440 can help bring best practices and
00:36:54.970 00:36:54.980 learnings from not only this region in
00:36:57.460 00:36:57.470 this industry but CHP projects
00:36:59.770 00:36:59.780 nationally and internationally to your
00:37:01.540 00:37:01.550 project well thanks for having me out
00:37:06.430 00:37:06.440 and for the invites I think because we
00:37:10.150 00:37:10.160 work on probably about 100 projects a
00:37:12.580 00:37:12.590 year probably good to talk about yeah
00:37:15.760 00:37:15.770 sorry some of the lessons learned some
00:37:17.470 00:37:17.480 successful projects and then more just
00:37:19.960 00:37:19.970 focused on on our services we are we are
00:37:22.660 00:37:22.670 here we're a program we're one of seven
00:37:24.550 00:37:24.560 centers around the country to provide
00:37:26.980 00:37:26.990 combined heat and power services at no
00:37:29.020 00:37:29.030 cost so got a list of questions so start
00:37:33.070 00:37:33.080 I guess by answering those and then I'd
00:37:35.200 00:37:35.210 love to take some questions if you guys
00:37:36.550 00:37:36.560 have projects would love to talk to you
00:37:38.080 00:37:38.090 about that so we had what makes a
00:37:41.170 00:37:41.180 successful system so combined heat and
00:37:43.630 00:37:43.640 power I think it really depends largely
00:37:47.050 00:37:47.060 on the end user and their goals often I
00:37:50.200 00:37:50.210 mean most people want cost reductions
00:37:52.230 00:37:52.240 sometimes its emission reductions
00:37:54.250 00:37:54.260 sometimes it's resiliency so resilient
00:37:56.710 00:37:56.720 power for some people are it's very
00:37:58.480 00:37:58.490 important and they can take a long
00:38:00.460 00:38:00.470 payback if they have that very resilient
00:38:02.230 00:38:02.240 power so to have any of these goals it's
00:38:06.460 00:38:06.470 what we see is it starts with really
00:38:08.740 00:38:08.750 good design and proper sizing and to
00:38:11.320 00:38:11.330 that proper sizing and good design you
00:38:12.850 00:38:12.860 need to know it was great you were
00:38:15.160 00:38:15.170 talking a lot about the thermal load
00:38:16.420 00:38:16.430 Chuck is you really need to know what
00:38:19.420 00:38:19.430 your thermal requirements are and and
00:38:21.520 00:38:21.530 your electric demand but really or your
00:38:23.320 00:38:23.330 thermal requirements that's that's
00:38:26.680 00:38:26.690 really important because if you don't
00:38:27.670 00:38:27.680 utilize that that adversely affects your
00:38:29.530 00:38:29.540 system efficiency and and could make it
00:38:31.960 00:38:31.970 tough to get
00:38:33.290 00:38:33.300 state rebates or even the ITC or PTC
00:38:35.960 00:38:35.970 which they've got some tax credits that
00:38:37.370 00:38:37.380 usually want you to be above 60% so if
00:38:40.670 00:38:40.680 you're not doing that you're kind of a
00:38:41.810 00:38:41.820 standalone power generator and you won't
00:38:43.490 00:38:43.500 be getting these credits so it's really
00:38:45.380 00:38:45.390 important so as far as lessons learned
00:38:49.480 00:38:49.490 and knowing your thermal load is is
00:38:53.450 00:38:53.460 really really important and proper
00:38:55.940 00:38:55.950 sizing is key so we've seen systems
00:39:00.380 00:39:00.390 unfortunately again we go screen systems
00:39:03.710 00:39:03.720 about a hundred a year and then we
00:39:04.730 00:39:04.740 troubleshoot some we saw one last year
00:39:07.880 00:39:07.890 that was way over sized and as a result
00:39:10.070 00:39:10.080 was only able to operate a couple
00:39:12.140 00:39:12.150 hundred hours a year this is a
00:39:13.190 00:39:13.200 multi-million dollar investment just
00:39:15.320 00:39:15.330 sitting because the thermal load was too
00:39:16.609 00:39:16.619 long was too low and it couldn't operate
00:39:18.590 00:39:18.600 at low fire it's a reciprocating systems
00:39:20.900 00:39:20.910 a little different than what we're
00:39:21.800 00:39:21.810 talking about but you don't want that so
00:39:24.440 00:39:24.450 you really want to know what your
00:39:26.480 00:39:26.490 thermal load is I think a lot of people
00:39:28.070 00:39:28.080 are very concerned about how much
00:39:30.230 00:39:30.240 electricity can be produced and kind of
00:39:32.870 00:39:32.880 the thermal loads an afterthought and
00:39:34.820 00:39:34.830 it's really good for that to be kind of
00:39:37.460 00:39:37.470 an initial stage is how much thermal
00:39:38.930 00:39:38.940 energy can I use on-site at what grade
00:39:41.540 00:39:41.550 what do I need so that's it's really
00:39:44.990 00:39:45.000 important and and we are held here to
00:39:47.270 00:39:47.280 really help with that so again we're the
00:39:49.700 00:39:49.710 u.s. do E's CHP taps which is the
00:39:52.760 00:39:52.770 technical assistance partnership one of
00:39:55.250 00:39:55.260 seven centers and we offer three key
00:39:58.070 00:39:58.080 technical services the first being
00:39:59.960 00:39:59.970 qualification screening these are all
00:40:02.450 00:40:02.460 no-cost so qualification screening is
00:40:05.480 00:40:05.490 you have a couple years of bills or a
00:40:07.280 00:40:07.290 year of bills we can at a very high
00:40:09.290 00:40:09.300 level tell you if CHP is it could fit
00:40:11.660 00:40:11.670 for your facility and the next one is a
00:40:14.720 00:40:14.730 feasibility assessment so on a
00:40:16.490 00:40:16.500 case-by-case basis we approve very
00:40:18.230 00:40:18.240 detailed hourly we'll look at our really
00:40:20.870 00:40:20.880 thermal and electric load data and and
00:40:23.950 00:40:23.960 you can talk to your utility and look
00:40:26.180 00:40:26.190 for incentives and into a very detailed
00:40:28.250 00:40:28.260 feasibility assessment and the last is
00:40:31.550 00:40:31.560 third-party reviews so if you have a
00:40:33.230 00:40:33.240 system that's being built or when you're
00:40:35.150 00:40:35.160 considering or one way we're happy to to
00:40:39.020 00:40:39.030 give you kind of a second set of eyes
00:40:40.250 00:40:40.260 give you our advice as far as from what
00:40:43.160 00:40:43.170 we've seen and help out so
00:40:45.750 00:40:45.760 we highly encourage you if you're at all
00:40:48.900 00:40:48.910 interested in CHP whether it be you know
00:40:52.710 00:40:52.720 just just curious if it makes sense for
00:40:54.390 00:40:54.400 your sylheti you want to learn a little
00:40:55.470 00:40:55.480 more about it or if you're really
00:40:56.940 00:40:56.950 serious about a project feel free to
00:40:59.490 00:40:59.500 call us email us to talk to me after
00:41:01.740 00:41:01.750 this this is why we are here so utilize
00:41:06.180 00:41:06.190 our services and ask questions again
00:41:08.760 00:41:08.770 we're we're here we're based out of
00:41:10.830 00:41:10.840 Western Mass and that's the technical
00:41:13.050 00:41:13.060 arm at UMass Amherst and we have our
00:41:15.870 00:41:15.880 kind of legal arm if you need help in
00:41:18.300 00:41:18.310 that space down at Pace University in
00:41:19.980 00:41:19.990 New York and our territories again from
00:41:22.800 00:41:22.810 New York to Maine so it doesn't have to
00:41:24.510 00:41:24.520 be just projects in Maine could be all
00:41:26.010 00:41:26.020 over New England okay and then I guess
00:41:30.390 00:41:30.400 one question was what funding is there
00:41:31.890 00:41:31.900 available seems like a lot of you guys
00:41:34.230 00:41:34.240 know about the ITC and the PTC and then
00:41:37.410 00:41:37.420 efficiency Maine I know has some rebates
00:41:39.599 00:41:39.609 and that would be something to look into
00:41:41.270 00:41:41.280 and then I guess there is our technical
00:41:43.859 00:41:43.869 services again there no costs utilize
00:41:45.840 00:41:45.850 this we are here for that and then I
00:41:50.250 00:41:50.260 think that's it for Maine I know other
00:41:52.560 00:41:52.570 states mass in New York of kind of the
00:41:54.300 00:41:54.310 leaders they have really really great
00:41:56.190 00:41:56.200 incentives for CHP mass has I mean
00:41:59.640 00:41:59.650 basically it has a capital incentive
00:42:01.290 00:42:01.300 which is based on the performance a
00:42:02.670 00:42:02.680 nameplate production and then an
00:42:05.880 00:42:05.890 operating center you get basically two
00:42:07.470 00:42:07.480 cents back for every megawatt hour
00:42:08.940 00:42:08.950 generate or kilowatt hours north so it's
00:42:12.380 00:42:12.390 it's really great so if you look in
00:42:14.310 00:42:14.320 other states those exist too and New
00:42:16.830 00:42:16.840 York also has kind of an accelerator
00:42:18.690 00:42:18.700 program which we've seen some systems
00:42:22.410 00:42:22.420 like fully funded half by the state half
00:42:24.690 00:42:24.700 by the utilities well for me and I would
00:42:28.020 00:42:28.030 talk to us talk to efficiency Maine talk
00:42:31.230 00:42:31.240 to utility and those are the incentives
00:42:33.570 00:42:33.580 but really we're happy to come out and
00:42:36.810 00:42:36.820 just I guess make you aware that we
00:42:39.120 00:42:39.130 existed I'm not sure if anyone knew the
00:42:41.340 00:42:41.350 service existed if we show hands did
00:42:44.280 00:42:44.290 anyone know that there was a CHP program
00:42:46.710 00:42:46.720 around okay we have a couple and you
00:42:49.020 00:42:49.030 probably know the Northwest taps right
00:42:50.670 00:42:50.680 with Dave
00:42:51.750 00:42:51.760 yeah great guy well again we're here so
00:42:55.640 00:42:55.650 utilize our services I'd be happy to
00:42:58.020 00:42:58.030 take any questions
00:42:59.160 00:42:59.170 so I heard Chuck speak about the ash
00:43:04.170 00:43:04.180 that comes out of the boiler you have to
00:43:06.660 00:43:06.670 put it in the landfill because it's got
00:43:07.980 00:43:07.990 T tired to ride fuel in it but I didn't
00:43:12.690 00:43:12.700 hear all Derner Bob speak to what you
00:43:14.520 00:43:14.530 did with the ash and I assume it's
00:43:16.559 00:43:16.569 probably not going in a landfill nope
00:43:18.539 00:43:18.549 none of it goes in landfill currently
00:43:20.130 00:43:20.140 all of it goes on farmer's fields is
00:43:22.200 00:43:22.210 wood in wood out no additives so it's uh
00:43:25.349 00:43:25.359 it's a great potash you know all the
00:43:30.180 00:43:30.190 same thing yeah so currently we're not
00:43:33.870 00:43:33.880 having any ash come out of a new system
00:43:35.430 00:43:35.440 yet because we just poured some concrete
00:43:37.950 00:43:37.960 last week
00:43:38.789 00:43:38.799 so we're we've got a time before our ash
00:43:42.150 00:43:42.160 starts getting produced but you you know
00:43:43.410 00:43:43.420 you're gonna be producing typically
00:43:45.359 00:43:45.369 depending on your system we have a step
00:43:46.740 00:43:46.750 great combustor very similar to what Bob
00:43:48.450 00:43:48.460 is is is employing so you're gonna have
00:43:51.569 00:43:51.579 bottom ash and fly ash and so there's
00:43:54.480 00:43:54.490 there's two different components some of
00:43:57.480 00:43:57.490 them are easier to get rid of than
00:43:59.309 00:43:59.319 others luckily these new systems with
00:44:01.859 00:44:01.869 the traveling grates are much more
00:44:03.240 00:44:03.250 efficient than our old stoker great
00:44:04.710 00:44:04.720 systems so you you get much less ash
00:44:06.930 00:44:06.940 than you're used to per ton of biomass
00:44:09.510 00:44:09.520 going in it's my understanding you have
00:44:12.240 00:44:12.250 to have your ash tested so to make sure
00:44:14.640 00:44:14.650 that of the components and what's in it
00:44:16.230 00:44:16.240 to make sure that it is viable for land
00:44:18.210 00:44:18.220 spreading and then land spreading or
00:44:19.680 00:44:19.690 road construction using it for aggregate
00:44:21.900 00:44:21.910 and road construction are all viable
00:44:23.930 00:44:23.940 opportunities but we're always gonna
00:44:26.039 00:44:26.049 look at new things going down the pike
00:44:28.109 00:44:28.119 as well I mean just additives to
00:44:29.730 00:44:29.740 potential soil additives and whatnot
00:44:31.940 00:44:31.950 yeah both Robert in Alden represent
00:44:36.390 00:44:36.400 companies that are currently in the wood
00:44:40.890 00:44:40.900 products business and it looks like you
00:44:43.799 00:44:43.809 know the upfront cost of building one of
00:44:47.490 00:44:47.500 these plants is tremendous my question
00:44:50.250 00:44:50.260 either enough maybe Eric could the
00:44:54.180 00:44:54.190 companies in Maine that if the wood
00:44:55.890 00:44:55.900 products business big enough to justify
00:44:58.260 00:44:58.270 such a cost is that I would say that
00:45:03.780 00:45:03.790 there are a few not everyone but
00:45:07.859 00:45:07.869 certainly a few some larger Mills
00:45:11.120 00:45:11.130 importantly and I the gentlemen that
00:45:15.089 00:45:15.099 know their numbers can feel free to
00:45:16.440 00:45:16.450 disagree with me but I would say getting
00:45:19.740 00:45:19.750 a 20 year contract at an attractive rate
00:45:26.059 00:45:26.069 was a key piece of both of those
00:45:28.950 00:45:28.960 projects being built and that
00:45:31.200 00:45:31.210 opportunity doesn't currently exist so
00:45:35.190 00:45:35.200 one of the key building blocks for for
00:45:37.829 00:45:37.839 doing the next projects is having
00:45:42.230 00:45:42.240 something like that still around and
00:45:44.940 00:45:44.950 that the political environment isn't
00:45:47.510 00:45:47.520 isn't there quite yet I don't know if
00:45:49.770 00:45:49.780 you gentlemen would disagree agree so
00:45:54.780 00:45:54.790 one of the main building blocks is a 20
00:45:56.280 00:45:56.290 year power purchase agreement that the
00:45:58.460 00:45:58.470 that allows them to sell power at a rate
00:46:01.289 00:46:01.299 that they know they can finance the very
00:46:04.799 00:46:04.809 very high upfront capital costs use a
00:46:11.280 00:46:11.290 tremendous amount of wood to justify
00:46:13.319 00:46:13.329 this nope certainly works better with a
00:46:19.380 00:46:19.390 tremendous amount of wood for example
00:46:21.109 00:46:21.119 zappy uses a tremendous amount of wood
00:46:25.099 00:46:25.109 yeah um and I'll just point out you know
00:46:29.130 00:46:29.140 I I spend a lot of time in the biomass
00:46:31.049 00:46:31.059 world but one thing I heard which I knew
00:46:34.170 00:46:34.180 but didn't know how publicly we said you
00:46:36.299 00:46:36.309 know you mentioned a swing of maybe one
00:46:41.700 00:46:41.710 year you're using 400,000 tons next year
00:46:44.069 00:46:44.079 you're using 900,000 okay for everyone
00:46:47.010 00:46:47.020 doing the math at home that's 500,000
00:46:49.829 00:46:49.839 tons that's basically turning on and off
00:46:53.010 00:46:53.020 a 40 megawatt standalone power plant
00:46:56.970 00:46:56.980 which is nuts to think about in terms of
00:46:59.640 00:46:59.650 supply chain so just as we're out there
00:47:02.609 00:47:02.619 thinking about how important CHP is CHP
00:47:05.430 00:47:05.440 is sort and certainly important at the
00:47:07.049 00:47:07.059 smaller scale it's it's it sort of
00:47:11.339 00:47:11.349 creates its own weather and makes its
00:47:13.049 00:47:13.059 own market at the larger scale
00:47:15.060 00:47:15.070 question was what's driving our
00:47:17.960 00:47:17.970 variability in our biomass usage and
00:47:20.780 00:47:20.790 it's basically the energy cost structure
00:47:24.840 00:47:24.850 so it what's what's changed dramatically
00:47:27.450 00:47:27.460 for us is the shale natural gas from the
00:47:31.020 00:47:31.030 Marcellus Basin as driven gas prices
00:47:34.380 00:47:34.390 down we connected a 54-mile natural gas
00:47:39.300 00:47:39.310 line to the mill 2014 so when when the
00:47:43.920 00:47:43.930 gas price is low and sometimes it can be
00:47:46.740 00:47:46.750 very low it did make sense for us to
00:47:49.200 00:47:49.210 swap to gas okay and in that that same
00:47:53.430 00:47:53.440 gas phenomenon much of the power
00:47:55.920 00:47:55.930 generated in New England is based on
00:47:57.780 00:47:57.790 natural gas pricing so sometimes it's
00:48:00.450 00:48:00.460 not gas were swapping to sometimes is
00:48:02.490 00:48:02.500 we're just buying the power outright
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