June 2015 Biomass Magazine by BBI International

June 2015

Fiber of the Industry

Pellet Plant Execs Talk Teamwork, Trends, Hurdles Page 24

Plus:

Backstories of European Heat Industry Leaders Page 24

And: International Biomass Conference & Expo Photo Review Page 5

www.BiomassMagazine.com

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INSIDE ¦ JUNE 2015 | VOLUME 9 | ISSUE 6

ADVERTISER INDEX¦ 36

2015 National Advanced Biofuels Conference & Expo

PELLET

Agra Industries

16 NEWS

Andritz Feed & Biofuel A/S

Astec, Inc.

BBI Project Development

Continental Biomass Industries, Inc.

Di Piu

Hermann Sewerin GmbH

KEITH Manufacturing Company

Pellet Fuels Institute

SWANA Solid Waste Association of North America

Varco Pruden Buildings

West Salem Machinery Co.

18 FEATURE Words From The Wise

Pellet plant executives reflect upon, discuss and predict industry dynamics, challenges and trends. By Tim Portz

THERMAL 22 NEWS 23 COLUMN Targets, Policy for State-Level Thermal Energy Markets By Adam Sherman

04 EDITOR’S NOTE A People-Powered Industry By Tim Portz

05 BUSINESS BRIEFS 06 PHOTO REVIEW: INTERNATIONAL BIOMASS

CONFERENCE & EXPO

24 DEPARTMENT Setting the Scene

Christiane Egger, Gustav Melin and Neil Harrison are amongst many who have contributed to a thriving European biomass heat sector. By Katie Fletcher

BIOGAS

34 MARKETPLACE

26 NEWS

POWER

27 COLUMN Team RNG: Bringing a New Fuel to Market

12 NEWS

By Stephanie Thorson

13 COLUMN Annual Fly-In Covers Pressing Industry Issues By Bob Cleaves

14 DEPARTMENT OPG's Biomass Brothers Brent Boyko and Faron Rollins play critical roles in Ontario Power Generation’s biomass projects and pursuits. By Anna Simet

ON THE COVER: Prior to an in-depth discussion of the wood pellet industry, T.J. Morice, vice president of marketing and operations, Marth Companies; Ben Rose, CEO, Michigan Wood Fuels; Bruce Lisle, CEO, Energex Pellet Fuel Inc.; and James Roecker, CEO, Georgia Biomass, stand outside the Minneapolis Convention Center while attending the International Biomass Conference & Expo in April.

28 DEPARTMENT Advancing Landfill Gas

Chris Voell has played a meaningful role in fostering North America’s landfill gas-to-energy-industry. By Ron Kotrba

ADVANCED BIOFUELS & CHEMICALS 30 NEWS 31 COLUMN Managing What You Measure By Matt Carr

32 Q&A Taking the Reins Dan Cummings will spearhead POET-DSM’s efforts to further expand the market reach of its cellulosic ethanol technology. By Tim Portz

PHOTO: GAMUT STUDIOS

JUNE 2015 | BIOMASS MAGAZINE 3

¦EDITOR’S NOTE EDITORIAL

A People-Powered Industry

PRESIDENT & EDITOR IN CHIEF Tom Bryan tbryan@bbiinternational.com VICE PRESIDENT OF CONTENT & EXECUTIVE EDITOR Tim Portz tportz@bbiinternational.com MANAGING EDITOR Anna Simet asimet@bbiinternational.com SENIOR EDITOR Ron Kotrba rkotrba@bbiinternational.com NEWS EDITOR Erin Voegele evoegele@bbiinternational.com

Last year, we distributed our People Issue of Biomass Magazine at the International Biomass Conference & Expo, recognizing that it would be a great platform to celebrate the men and women working in the TIM PORTZ industry. This year, however, we decided to leverage the VICE PRESIDENT OF CONTENT & EXECUTIVE EDITOR opportunity the conference offers and catch up with tportz@bbiinternational.com and interview in-person the subjects of the majority of our June stories. I’m glad we made the change. The review and photos of the event (page 6) offer a glimpse into a four-day labor of love that consumes our team for the better part of a year. The industry has rewarded us for our efforts—since we launched it, the event has grown to be the largest annual conversation about all things biomass available anywhere in the world. The event has become a valuable industry resource because of the people it attracts, a handful of whom we are delighted to feature in this issue. I’m always humbled when people travel great distances to attend our events. Katie Fletcher’s page-24 story, “Setting the Scene,” makes plain the vital role being played by three European biomass advocates who we were happy to have join us in Minneapolis. While Neil Harrison, Christiane Egger and Gustav Melin have all appeared in stories we’ve published online, our team had not yet spent much time learning their personal stories and of the contributions they have have been and are making to industry’s momentum. In my page-18 feature, “Words From The Wise,” I asked four pellet industry executives to sit down with our team and discuss their facilities, personnel and outlooks for the industry moving forward. In a four-day period marked by great conversation after great conversation, this hour-long industry brief may have been the best hour of the conference for me. The group we managed to assemble was diverse in nearly every way, including geography, tenure and job function. Unifying the group was a passion for the industry, and beliefs that its best days are still to come. By the time this issue of Biomass Magazine reaches you, our team will have begun work on next year’s event. Put April 11-14 on your calendar, as an incredible group of people will be gathering in Charlotte, North Carolina, to continue moving this great industry forward.

STAFF WRITER Katie Fletcher kfletcher@bbiinternational.com COPY EDITOR Jan Tellmann jtellmann@bbiinternational.com

ART ART DIRECTOR Jaci Satterlund jsatterlund@bbiinternational.com GRAPHIC DESIGNER Raquel Boushee rboushee@bbiinternational.com

PUBLISHING & SALES CHAIRMAN Mike Bryan mbryan@bbiinternational.com CEO Joe Bryan jbryan@bbiinternational.com VICE PRESIDENT OF OPERATIONS Matthew Spoor mspoor@bbiinternational.com SALES & MARKETING DIRECTOR John Nelson jnelson@bbiinternational.com BUSINESS DEVELOPMENT DIRECTOR Howard Brockhouse hbrockhouse@bbiinternational.com SENIOR ACCOUNT MANAGER Chip Shereck cshereck@bbiinternational.com ACCOUNT MANAGER Jeff Hogan jhogan@bbiinternational.com ACCOUNT MANAGER Tami Pearson tpearson@bbiinternational.com CIRCULATION MANAGER Jessica Beaudry jbeaudry@bbiinternational.com TRAFFIC & MARKETING COORDINATOR Marla DeFoe mdefoe@bbiinternational.com

EDITORIAL BOARD MEMBERS Chris Sharron, West Oregon Wood Products Amanda Bilek, Great Plains Institute Stacy Cook, Koda Energy Ben Anderson, University of Iowa Justin Price, Evergreen Engineering Adam Sherman, Biomass Energy Resource Center Subscriptions Biomass Magazine is free of charge to everyone with the exception of a shipping and handling charge of $49.95 for anyone outside the United States. To subscribe, visit www.BiomassMagazine.com or you can send your mailing address and payment (checks made out to BBI International) to Biomass Magazine Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. You can also fax a subscription form to 701-746-5367. Back Issues & Reprints Select back issues are available for $3.95 each, plus shipping. Article reprints are also available for a fee. For more information, contact us at 701-746-8385 or service@bbiinternational.com. Advertising Biomass Magazine provides a specific topic delivered to a highly targeted audience. We are committed to editorial excellence and high-quality print production. To find out more about Biomass Magazine advertising opportunities, please contact us at 701-746-8385 or service@bbiinternational.com. Letters to the Editor We welcome letters to the editor. Send to Biomass Magazine Letters to the Managing Editor, 308 2nd Ave. N., Suite 304, Grand Forks, ND 58203 or email to asimet@bbiinternational.com. Please include your name, address and phone number. Letters may be edited for clarity and/or space.

Biomass Magazine: (USPS No. 5336) June 2015, Vol. 9, Issue 6. Biomass Magazine is published monthly by BBI International. Principal Office: 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. Periodicals Postage Paid at Grand Forks, North Dakota and additional mailing offices. POSTMASTER: Send address changes to Biomass Magazine/ Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, North Dakota 58203. Please recycle this magazine and remove inserts or samples before recycling

4 BIOMASS MAGAZINE | JUNE 2015

Business Briefs PEOPLE, PRODUCTS & PARTNERSHIPS

USFGIS announces agreement with Twin Ports Testing USFGIS LLC, a global inspection company, has announced a strategic agreement with Twin Ports Testing planning a joint market approach for the biomass industry. USFGIS is committed to helping customers safeguard their businesses though its domestic and global operations. The company operates through the Global Superintendence Alliance, a network of highly specialized inspection companies active in more than 595 countries. TPT has been involved in the wood pellet industry since the early 1980s and is an active member of the Pellet Fuel Institute. In addition, TPT has been involved in developing the North American standards for pelletized/ densified commercial and residential fuel as well as QA/QC procedures. Denham Capital, Thesis Energy announce partnership Denham Capital and Thesis Energy have announced a partnership to pursue opportunities in European power generation. The new platform, called Thesis Energy, will acquire and actively manage large-scale gas, coal and biomass-fired power-generation and cogeneration assets across Western Europe. Vecoplan appoints manager Luther “Luke” Peoples has been named electrical department manager at Vecoplan LLC. His responsibilities include Peoples overseeing aspects of the design engineering, programming, production and quality control teams at Vecoplan. Peoples has served as an electrical quality control engineer at Vecoplan since 2006 and has 33 years of combined experience in electronics and industrial controls.

Saxlund, Axis Industries announce CHP projects Saxlund International and Axis Industries have announced two new combustion projects to deliver combinedheat-and-power (CHP) for customers in Estonia and Lithuania. Under the agreement, Axis Industries will be responsible for full turnkey project delivery covering design, installation and commissioning and incorporating licensed technology from Saxlund International, including furnaces, turbines and materials handling, together with flue gas condensation and cleaning. The first project for Danpower Baltic, a joint venture between Danpower GmbH and Geco Investicijos, will provide 5 MW electric CHP to provide heat and power to the municipality of Kaunas, Lithuania. At Tallinn, Estonia, a larger project for Utilitas will deliver 21.4 MW electric CHP. Rodman & Rodman names tax manager Newton, Massachusetts-based CPA firm Rodman & Rodman P.C. has named Kevin Michaelan, Michaelan a certified public accountant, as tax manager. Michaelan will also serve as a member of the firm’s Green Team, a specialty practice serving renewable energy clients. In his new role at Rodman & Rodman, Michaelan serves the owners and managers of established, privately held companies in a variety of industries, as well as entrepreneurs of technology startups. His experience includes business combinations, compensation and benefits, international tax, and multistate tax planning and compliance. Ashurst advises UK investors Ashurst has advised Irish utility Electricity Supply Board and the U.K. Green Investment Bank on their investment as sponsors to the £190 million ($291.41 mil-

lion) waste wood biomass power project at the Port of Tilbury, Essex. This is the first investment by ESB in the U.K. waste and bioenergy sector. The 300 GWh facility is expected to be operational in 2017. ABO announces new members The Algae Biomass Organization has announced the addition of new members. Joule Unlimited has joined as a platinum member and Algae Systems has joined as a gold member. In addition, HY-TEK Bio and Parker Hannifin’s Renewable Resources Unit, focusing on algae industry research and development, have each joined as corporate members. Drax Biomass appoints CEO Drax Biomass has appointed Peter Madden as CEO of U.S. operations. He has nearly 30 years’ experience in the forestry Madden industry and will play a critical leadership role as Drax’s workforce and investment in the U.S. grow. He will guide the overall strategy and oversee day-to-day operations in the U.S. Madden most recently served as the vice president of renewable energy and supply chain for Plum Creek Timber Co. VEIC appoints director The Vermont Energy Investment Corp. has named Karen Glitman director of policy and public affairs. She has served as VEIC’s Glitman director of transportation efficiency since 2011. In her new role, Glitman will lead the organization’s work designing and advancing cutting-edge policy related to sustainable energy.

SHARE YOUR INDUSTRY NEWS: To be included in the Business Briefs, send information (including photos and logos, if available) to Business Briefs, Biomass Magazine, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. You may also email information to evoegele@bbiinternational.com. Please include your name and telephone number in all correspondence.

JUNE 2015 | BIOMASS MAGAZINE 5

By Biomass Magazine staff PHOTOS BY: GAMUT ONE STUDIOS

olicy was the buzzword in Minneapolis at the 2015 International Biomass Conference & Expo, which brought together association leaders for its annual discussion of the past year and state of the industry. Following the conclusion of Monday's day-long, colocated Heating the Midwest conference, the IBCE general session began Tuesday, led by Tim Portz, Biomass Magazine executive editor. The session began with some international insight shed by Gustav Melin, president of the European Biomass Association, and a call-in from Seth Ginther, U.S. Industrial Pellet Association executive director, who reiterated USIPA’s continued push for and the significance of harmonized global sustainability standards. “This is something near and dear to the industry’s heart…a one-size-fits-all for all markets.” Melin said the pellet industry depends on policy frequently, and gave the example of the resurgence of the Dutch market after a lack of presence for several years Next on the panel were Joseph Seymour, executive director of the Biomass Thermal Energy Council, and Jennifer Hedrick, executive director of the Pellet Fuels Institute, who both answered questions pertaining to the Sustainable Biomass Partnership, Biomass Thermal Utilization Act, and U.S. EPA’s New Source Performance Standards. 6 BIOMASS MAGAZINE | JUNE 2015

Seymour said the past year has been a tale of two heating seasons. “Coming off 2014 with a record high for propane prices, especially in the Northwest, there was a lot of optimism going into this heating season—sales reflected that,” he said. “As we saw with the fall of oil prices this winter and spring, a lot of enthusiasm dropped off, as a number of consumers have taken, at no fault of their own, a short-term look at their heating fuels. Unfortunately, that has put a damper on the market as we end this heating season.” Hedrick said she considered the year strong for pellet producers. The general session panel concluded after a discussion with Bernard Sheff, board chairman of the American Biogas Council, and Carrie Annand, vice president of external affairs with the Biomass Power Association. Discussion topics included the renewable fuel standard’s (RFS) inclusion of biomass for cellulosic fuels, the Biogas Roadmap, National Bioenergy Day, and the EPA’s stance on biogenic carbon emissions. The general session was followed by two days of technical breakout sessions categorized under biomass power and thermal, pellets and densified biomass, biogas, and advanced biofuel and chemical tracks, a networking event at Target Field’s Metropolitan Club and an industry tour of Rahr Malting and Koda Energy LLC in Shakopee, Minnesota.

CONFERENCEÂŚ

Joseph Seymour, Biomass Thermal Energy Council executive director, center, and Jennifer Hedrick, Pellet Fuels Institute executive director, are interviewed by Tim Portz, Biomass Magazine executive editor, during the International Biomass Conference & Expo general session.

Carrie Annand, vice president of external affairs of the Biomass Power Association, Gustav Melin, president of the European Biomass Association and Bernard Sheff, American Biogas Council chairman of the board discussed annual growth of their respective industry sectors. Joining by phone was Seth Ginther, executive director of the U.S. Industrial Pellet Association.

JUNE 2015 | BIOMASS MAGAZINE 7

ÂŚCONFERENCE

Faron Rollins, thermal conversion project director at Ontario Power Generation, accepts the Groundbreaker of the Year Award on OPG's behalf. The award was presented by Portz and Anna Simet, managing editor of Biomass Magazine.

(From left to right) BM&M Screening Solutions' Andy Turner and Kent Mellen visit with BM&M reps Steve Ross of Equipment Detail and Scott Diers of Olson Limited Equipment.

8 BIOMASS MAGAZINE | JUNE 2015

Rob Markle and David Grandaw man the IEP Technologies booth in the exhibition hall.

CONFERENCEÂŚ

Christine Egger, deputy manager at O.Ă&#x2013;. Energiesparverband, delivers her acceptance speech for the Excellence in Bioenergy Award.

AGCO Corp.'s Kenneth Wagenbach, left, and Glenn Farris, right, wait for the expo hall grand opening with Peder Lomborg of DSE Test Solutions.

Chad Schumacher of Fairbanks, Alaska-based Superior Pellet Fuel asks a question during the general session panel.

JUNE 2015 | BIOMASS MAGAZINE 9

ÂŚCONFERENCE

Robert Bobeck and Patrick Paul of Dustex Corp., and Joe Waite of ProcessBarron visit between booth visitors.

Stephen Burns, OEM sales manager at Fike Corp., presents on a dust management and fire suppression panel in the pellets and densified biomass track.

Keith Williams of Molpus Woodlands; Aaron Crass, Miron Construction;Kevin Bradley, BigOx Energy; Dan Goymerac, Miron Construction and David Stecher, BigOx Energy enjoy an evening at Target Field's Metropolitan Club.

10 BIOMASS MAGAZINE | JUNE 2015

Verdante BioEnergy Services' David Waechter, right, and friend Michael O'Neil take in the magnificent view of the Minnesota Twins' Target Field.

CONFERENCEÂŚ

David Minott of Arc5 Environmental Consulting LLC moderates a panel on how to maximize anaerobic digester financial opportunities. Panelists included Joel Laubenstein of Baker Tilly Virchow Krause LLP; Luca Nencetti of First Environment Inc.; Luca Nencetti of EcoEngineers, and Ryan Hart of Exponent Inc.

BBI staff attending Wednesday evening networking event are, from left, Marla DeFoe, traffic and marketing coordinator; Katie Fletcher, Biomass Magazine staff writer; Anna Simet, and Tami Pearson, account manager.

An extensive tour of Rahr Malting and biomass cogeneration plant Koda Energy in Shakopee, Minnesota, concluded the 8th annual International Biomass Conference & Expo.

JUNE 2015 | BIOMASS MAGAZINE 11

PowerNews Energy production from biomass (quadrillion Btu) 2020

2030

2040

Reference case

4.4

4.6

5.0

Low economic growth

4.5

4.4

4.5

High economic growth

4.5

5.0

6.0

Low oil price

4.4

4.6

4.7

High oil price

4.5

4.8

5.7

High oil and gas resource

4.5

4.7

5.1

SOURCE: U.S. ENERGY INFORMATION ADMINISTRATION

EIA releases Annual Energy Outlook 2015 The U.S. Energy Information Administration has released its Annual Energy Outlook 2015, which presents updated projections for U.S. energy markets through 2040 based on six different cases that reflect updated scenarios for crude oil prices. The six cases include the reference case, low and high economic growth, low and high oil price, and high oil and gas resource. Regarding biomass, generation under the reference case increases by an average of 3.1 percent per year, led by cofiring at

existing coal plants through approximately 2030. After 2030, the reference case predicts new dedicated biomass plants will account for most of the growth in generation from biomass energy sources. Under the reference case, biomass generation is expected to increase from 4.2 quadrillion Btu in 2013 to 5 quadrillion Btu in 2040, an annual growth rate of 0.7 percent. Consumption of biomass resources is expected to increase from 2.9 quadrillion Btu in 2013 to 3.5 quadrillion Btu in 2040, a 0.7 percent annual growth rate.

DONG Energy to abandon coal in conversion to pellets, straw power at Avedøre Power Station DONG Energy has announced plans to convert the final combined-heat-andpower unit at its Avedøre Power Station from coal to wood pellets. Starting in the fall of 2016, the station—which is the largest in Denmark—will be able to generate heat using only wood pellets and straw, rather than coal and gas. “The decision to convert unit 1 at Avedøre Power Station means that we’ ll now be in a position to abandon coal and gas entirely when we’re generating heat for more than 215,000 households in the

12 BIOMASS MAGAZINE | JUNE 2015

Greater Copenhagen area,” said Thomas Dalsgaard, executive vice president at DONG Energy. “It's a significant step in the green conversion, taken in a cost-effective way.” DONG Energy also announced the signing of an agreement with VEKS, under which the Avedøre Power Station will provide green heat to VEKS customers through 2033. The conversion project is financed by DONG Energy and VEKS and began in April.

POWER¦

Annual Fly-In Covers Pressing Industry Issues BY BOB CLEAVES

In mid-May, 25 Biomass Power Association members traveled to Washington, D.C., for the association’s annual fly-in event. Each year, BPA sets aside a few days to work with our members to set up meetings with federal elected officials who represent them in Congress. Our work on Capitol Hill is always cut out for us. On one hand, there are staunch biomass supporters, like the delegation from Oregon, where biomass was recently declared carbon neutral by the state legislature. On the other hand, there are those who don’t understand what we do. Plenty of members, particularly newly elected members, have never heard of biomass or have only a very basic understanding. Meetings during the fly-in are important for building interaction between the industry and elected officials, updating members of Congress on our latest issues, and advocating for the policies our industry needs to grow and thrive. This year is particularly important as the U.S. EPA finalizes its Clean Power Plan, and, hopefully, the role of biomass within it. To that end, we urged the 40-plus members of Congress with whom we met to sign onto a letter urging the EPA to provide clarity to the industry on how biomass will fit into the plan and how how states will be able to count biomass toward their carbon reduction targets. Another issue our members weighed in on is the role of taxes. In the absence of a national energy policy, tax incentives play a huge role in shaping our energy portfolio, especially in regard to renewable technologies. Currently, biomass is eligible for only half the credit that other renewables are, and the growth of biomass compared to these other energy sources is much less than half. We want to make sure that tax incentives are fair and attainable. The system in place now—extending incentives every year or two— is not very helpful in spurring new investments in our industry.

What’s happening in California underscores the importance of including biomass as an option for states in their renewable energy portfolios for the Clean Power Plan. A years-long drought, combined with the closing of several biomass facilities, is compounding dangerous conditions. On top of that, many biomass facilities are renegotiating their utility contracts signed decades ago, and biomass is having a tough time competing with the low prices of natural gas. As a result, farmers who have traditionally sold their agricultural leftovers to local biomass facilities are now concerned that they will have to return to the days of open burning these materials, which is worse for their bottom line as well as for the environment, even during nondrought periods. A recent article in the Hanford Sentinel, “Decline of Valley biomass a threat to ag,” explored this scenario. “They just pile up,” said Dino Giacomazzi, Kings County Farm Bureau president. “Currently, biomass plants are about the only way we have to dispose of orchard removal.” Covanta’s Matt Barnes summarized the problems facing Central California: “The issue is, there’s this whole ecosystem of the biomass plants. It’s not just that the [electricity generation] goes away. Do we go back to open burning?” As the California drought continues and as states develop their carbon reduction plans, we are hopeful that the EPA’s final Clean Power Plan, due out this summer, will help provide some clarity for the industry. Author: Bob Cleaves President and CEO, Biomass Power Association www.biomasspowerassociation.com bob@biomasspowerassociation.com

JUNE 2015 | BIOMASS MAGAZINE 13

¦POWER DEPARTMENT

REAPING REWARDS: Faron Rollins, Ontario Power Generation's thermal conversion project manager, and Brent Boyko, director of biomass business development, stand in front of the Atikokan Generating Station holding OPG's Groundbreaker of the Year Award. Rollins accepted the award on OPG's behalf on April 21 at the International Biomass Conference & Expo in Minneapolis. PHOTO: PATRICIA LAMBKIN

OPG’s Biomass Brothers Brent Boyko and Faron Rollins are the faces of the standout utility’s biomass initiatives. BY ANNA SIMET

ithin one year, Ontario Power Generation brought online two pellet-fueled power stations, both converted from coal. While Atikokan Generating Station uses traditional wood pellets to generate up to 200 MW of electricity, Thunder Bay Generation Station is a peaking plant that uses advanced biomass pellets. Ontario Power Generation has made a name for itself within the biomass power sector and broader electricity generation industry, with two very experienced employees heading up OPG’s activity in the space. Brent Boyko, biomass business development director, and Faron Rollins, thermal conversion project manager, both possess engineering degrees, and, after being closely involved in the Atikokan and Thunder Bay conversions, consider themselves 14 BIOMASS MAGAZINE | JUNE 2015

biomass believers and are armed with the knowledge and experience to help roll out similar projects elsewhere.

Then And Now

Rollins began his career while attending college at the University of Western Ontario, joining OPG’s team at its Lambton Generation Station, a four-unit, 2,000-MW power facility, while he earned his engineering degree. “It was a summer job after my third year [of college],” he says. “When I graduated, they asked me to come back, so I guess I didn’t screw things up too bad.” That invite led to a 13-year stint at the Lambton station, where Rollins worked in various capacities and furthered his education to achieve a MBA at the University of Windsor. After wrapping up a

POWER¦ flue gas desulphurization project at Lambton, Rollins was offered a position at Atikokan as a maintenance superintendent. “I wanted to do something different, so I took the job, and I was there for five and a half years. I moved to other positions, including station manager…then I got another offer to move to Nanticoke as a programming manager.” Rollins spent 12 years at Nanticoke, where he moved to production manager, maintenance manager and was finally asked to take on a project management role, which he has been doing ever since. “I took on a gas conversion at Thunder Bay. We were ready for a contract but were unsuccessful in getting a PPA, so we didn’t go forward. I ended up taking over the Atikokan [biomass] conversion and then the Thunder Bay advanced biomass conversion.” Boyko grew up in northwest Ontario’s Fort Frances, just across from pulp and paper town International Falls. “If you wanted a high-paying, technical job, you got a job at the mill,” he says. “I got on as a summer student in high school.” Boyko attended Lakehead University in Thunder Bay to earn his chemical engineering degree and eventually scored another job back at the mill as a power and recovery production engineer, which resulted in several major career accomplishments, including startup of a 100-MW, combined-cycle gas turbine. “From there, I continued in pulp and paper and went to the West Coast, because I had evolved through the technical ranks and wanted to get more management experience,” Boyko explains. “I went to a fine paper producer out there, got into line management and spent five years out there. Then, things started going south for the pulp and paper industry—a lot of facilities were going under—so I took an opportunity with a construction material company that was burning natural gas and shutting down a two-kiln operation and converting to coal. This was somewhat timely from a fueling standpoint, but very untimely from a carbon cap and trade system, which came a number of years later in British Columbia. They’re now looking to substitute coal with biomass.” After moving back to Ontario and getting involved in pulp and paper management roles once again, Boyko, not to be mistaken for his brother Kurt, also an Ontario engineer with some background in biomass, seized an opportunity at OPG to become station manager of Atikokan. “It was an awesome opportunity,” he says. “I’ve continued to be the head cheerleader and chief evangelist of promoting our [biomass] solution worldwide, and it’s been exciting.”

Daily Routine

Currently wrapping up work at the station in Thunder Bay, Rollins, who lives in the town, spends a few days per week at the plant, and the remainder at Atikokan. “We have some reservations that are requiring attention, so we’ve been getting plans in place to resolve them. I’m out there following up on these reservations and getting details and feedback from our engineering groups. I want to keep my presence in Atikokan. I’ve done a lot of work there, we’ve had a lot of success, and I want to maintain my relationship with the station.”

Meanwhile, Boyko is busy spreading the good word of biomass power, traveling throughout North America to present at and attend conferences, and also plays an integral role in AGS’s fuel supply relationships. “I speak with our suppliers regularly—Rentech and Resolute—about deliveries, fuel quality and how they’re evolving,” he says. “They’re new to the game as well, and there’s been a learning curve for us all.” Boyko also regularly guides facility tours of stakeholders, government officials, fuel suppliers, other utilities and more. “Some are working on big-picture elements—how we can build more of these facilities,” he says. “Some are intrigued with Thunder Bay, its small footprint and what we did on a shoestring budget. We’ve hosted visitors from Asia, Japan, several American and Canadian utilities. European utilities are even expressing interest. It really does mean a lot when you have a peer-to-peer utility discussion where one says, ‘Yes, this is doable, we’ve done it, come and see, we’ll show you how.’” “We’re more than just a power plant; we’re the reference facility in North America. It’s us and Drax [globally], and we need to get the word out. With emerging regulations coming in our province, a carbon cap and trade regime and the U.S. EPA’s work in the U.S., it’s going to be a game-changer. People are looking at biomass now— it’s a very complimentary solution in a number of jurisdictions worldwide.”

Future Plans

While Boyko’s and Rollins’ current focuses are mainly on OPG’s Atikokan and Thunder Bay stations, that may not be the end of the biomass road for the utility. “We’ve still got two coalpowered stations, Lambton and Nanticoke,” Rollins says. “We don’t have any plans right now other than to maintain them, because power load demand in the province right now is pretty flat due to a surplus of generating capacity, but going into 2024, our projection is that surplus will be gone. Biomass or gas may be another fuel option at those stations. OPG will soon begin refurbishing its Darlington nuclear station, a 4,000 MW plant with four units, each of which will take 3.5 years, according to Rollins. And, Boyko says, there’s the possibility in assisting others in converting. “There’s a lot of interest in the far north, a lot of communities don’t have the opportunity to connect to the grid, so small biomass could play a role there.” Finally, Boyko and Rollins emphasize their belief that biomass should be done right, particularly when it comes to sustainability, and those with an eye on what OPG has been doing have seemingly been satisfied. “We’ve had environmentalists from Europe come in and look at our sustainability strategy,” Boyko adds. “At the end of the tour, they usually say ‘you guys are doing it right.’” Author: Anna Simet Managing Editor, Biomass Magazine asimet@bbiinternational.com 7010738-4961

JUNE 2015 | BIOMASS MAGAZINE 15

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BREAKING GROUND: Officials celebrate the groundbreaking of Portucelâ&#x20AC;&#x2122;s Colombo Energy pellet plant Greenwood County, South Carolina. PHOTO: PORTUCEL SPORCEL GROUP

Portucel breaks ground on first US pellet plant Portugal-based Portucel Sporcel Group has broken ground on its Colombo Energy pellet plant in Greenwood County, South Carolina, in the Emerald Road Industrial Corridor. This project is the first U.S. pellet plant developed by the company. The 460,000-metric-ton facility is expected to be complete by the third quarter of 2016. According to Porucel, the plant will be equipped with advanced abatement

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equipment for environmental emission control, and its environmental performance will rival similar plants in the U.S. A Portucel spokesperson also noted the company has secured sales of 70 percent of its production through the signing of 10-year, fixed-price supply contracts, with most of the targeted sales for the European industrial market.

Northeast Wood Products retrofits third plant Northeast Wood Products has begun retrofitting its third pellet manufacturing plant, a Jasper, Tennessee, facility that will be capable of producing up to 125,000 tons of pellets annually. The plant is scheduled to be operational in November. Machinery purchased late last year is on site, and NWP plans to install a duplicate production line later on in the construction phase. NWP made the announcement less than a year after it made its first acquisitionâ&#x20AC;&#x201D;Pennington Seed Co.â&#x20AC;&#x2122;s 65,000-met-

ric-ton pellet plant in Peebles, Ohio, and shortly thereafter, its 65,000-metric-tonper-year pellet plant in Ligonier, Indiana. NWP also purchased some equipment and assets at Penningtonâ&#x20AC;&#x2122;s Kenbridge, Virginia, facility. NWP reports that its annual production volume is expected to be 450,000 tons when the Jasper plant comes online, a calculation that takes into account available output of the companyâ&#x20AC;&#x2122;s three factories, as well as aggregation of premium product from U.S. manufacturers.

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JUNE 2015 | BIOMASS MAGAZINE 17

Words From The Wise

Four pellet plant executives sit down for a frank discussion regarding the industryâ&#x20AC;&#x2122;s biggest challenges, the importance of building a cohesive and effective team, and plans for the next 18 months. INTERVIEW BY TIM PORTZ

(From left to right, top to bottom) T.J. Morice, vice president of marketing and operations, Marth Companies; Bruce Lisle, CEO, Energex Pellet Fuel Inc.; Ben Rose, CEO, Michigan Wood Fuels; James Roecker, CEO, Georgia Biomass. PHOTOS: GAMUT STUDIOS

18 BIOMASS MAGAZINE | JUNE 2015

PELLET¦

t this year’s International Biomass Conference & Expo, Biomass Magazine invited four executives from the pellet sector to a roundtable conversation about their businesses, teams and outlooks for the near future. Joining the discussion were James Roecker, CEO at Georgia Biomass; Bruce Lisle, CEO at Energex Pellet Fuel Inc.; T.J. Morice, vice president of marketing and operations at Marth Companies, and Ben Rose, CEO of Michigan Wood Fuels. The following are excerpts from their conversation. PORTZ: What are the biggest challenges facing this industry right now? MORICE: I’ll jump in. I’m big on the domestic heating market. That’s our focus. I think the challenge there is establishing a value proposition. Right now, we’re still at that commodity stage, comparing it only on a dollars-and-cents basis and we haven’t, as an industry, nor have we with government agencies, whether it be the forest service, DOE or others, been able to establish metrics to add a value to the sustainability aspect. Those are big things in establishing some of that visibility and building off it going forward, because unfortunately, unlike the East Coast which has this built-in, 60 percent-plus reliance on heating oil, the Midwest has maybe 25 to 30 percent on liquid propane. They both have fluctuations. We had a banner year last season because liquid propane was $5 to $7 a gallon in areas, and this year it’s 75 cents to $1.50, so you've got these major swings in price. And until people understand the total value proposition, including the local economic benefits and the environmental benefits, we'll be stuck in the rut of trying to simply produce “cheap” renewable energy. LISLE: Let me add to that. Last year, when fuel oil was trading at four bucks a gallon, I equated that to about $470 per ton of pellets. You go into the big boxes and they are selling it for $225, so we’re less than half. Now the price of oil is down, and we’re not as big of a discount, so people are complaining. But if you look at the price of pellets over the long term, we’re stable. I had a retailer once this year come to me and say, “Well, you know the price of oil is down, why isn’t the price of your pellets down?” My comment back to him was, ‘Well, when the price of oil went up, why didn’t we spike it?’ Getting rid of some of that volatility is one of the benefits of pellets, I think, but consumers don’t see the intrinsic value when oil is at 50 bucks a barrel. ROSE: I think one of the challenges we face, as an industry, is looking to other models to make our product even more convenient to use. People use it, absolutely. And they love it, but I think there are ways in which we still have to evolve and get creative about how we deliver the product, and create multiple ways to use it other than just selling it in 40-pound bags that get carried into a home.

ROECKER: On the industrial side, we’re definitely toddlers. Several companies have had the idea of jumping into the market to take advantage of the European subsidy schemes, and, unfortunately, I believe we have hit a plateau. I still have a lot of hope for the industry, and I think there is still going to be some substantial growth, but I think we are perhaps two years behind what the industry was expecting and projecting. Unfortunately, when the off-take agreements were not being made available at the expected level, project financing fell short of expectations. This has led to several announcements of new pellet mill construction being made, and the projects have not come to fruition. I think this really hurts the credibility of our industry. LISLE: You know Jim, to add on to that, one of the things about the domestic industry is that when we built these plants, we didn’t have offtake agreements. We built them under the philosophy of “Build it and they will come.” So we either put up our own cash, begged, borrowed or stole, loaned to build these plants with the idea that we would also build the markets, and that’s what some of the early guys did, like you, T.J., in the Midwest. So you look at the shortage we had this year, and in ‘08, the last shortage we had before this one, was followed by a major expansion in capacity being built, and we flooded the market, dropped prices and then saw some of that new production drop off as they tried to buy their way into the market. They didn’t make any money. This time, with all of the regulatory changes in finance, it is difficult to get the money to build capacity that equalizes supply and demand so we don’t have the shortages. There was fuel out west, there was fuel in the south, but its logistics. We’re not in the pellet business, we’re in the logistics business. So again, we built our capacity in the domestic market in a completely different way than what the guys in the south did. Without offtake agreements, its difficult to get financing. ROSE: We’re seeing creative ways that our customers, and I’m sure all of yours, are taking this shortage issue or supply issue very seriously, and for the first time, they are now actually treating us like more equal partners. Contracts and schedules are being offered for delivery. That’s why I talk about the maturity and the evolution of the business. Our industry is really very disjointed, very diffuse, lots of different ways of doing business with the customers. I think best practices and standards are starting to evolve. I think people understand, as consumers and retailers, that they have to buy earlier and buy more consistently. It’s not good for anyone, any of our supply chain on either end, to be shutting down and starting up, even for short periods of time. I think there is progress, but it is frustrating. I share everyone’s frustration. I think there have been more steps in the past year in improving some of that information and moving product across regions to address this issue, more than I’ve seen in the past seven or eight years since I started.

PORTZ: Are you talking about bulk distribution? ROSE: There are lots of things people do. Europe has tried a lot of things and laid out a pretty good infrastructure, but those may not work here. There are lots of things that work in Europe that don’t work here. The distances are different, the density of users is different here. We are still early in the industry’s development, in my opinion. We’re not infants anymore. Maybe we’re toddlers.

PORTZ: This next question is about people. It’s about the importance of team and building a good team and then retaining those folks. Can you talk about your approaches to building a quality team? MORICE: I like to keep it simple. Hire a good person. I think clarity and focus are the big things. What are you doing? Why are you doing it? Who is doing what at the facility? Making sure that everyone

JUNE 2015 | BIOMASS MAGAZINE 19

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ÂŚPELLET

in the facility is communicating and knows priorities, so everyone is pulling in the same direction. It doesnâ&#x20AC;&#x2122;t matter what the facility is, in this case itâ&#x20AC;&#x2122;s a pellet facility, but we do animal bedding, we do wood flour, we do a lot of things, we do up to a quarter of a million tons a year. In each of those entities, everyone has their place and theyâ&#x20AC;&#x2122;ve got to know what they are doing and why they are doing it. As for retaining people, we are really blessed, because we are in the Midwest, folks have a good work ethic, and we primarily locate our facilities in rural farming areas where people arenâ&#x20AC;&#x2122;t afraid to work. LISLE: Initially, itâ&#x20AC;&#x2122;s been the industry that has had a problem. Like you guys in the south, when you are looking for someone with experience in the pelleting industry, they just arenâ&#x20AC;&#x2122;t there. If you are in the chemical business, youâ&#x20AC;&#x2122;ve got a heck of a population of potential employees and managers who could help. But in pellets, weâ&#x20AC;&#x2122;re so young, we havenâ&#x20AC;&#x2122;t nurtured that personnel stable. So weâ&#x20AC;&#x2122;ve had to develop it. From our companyâ&#x20AC;&#x2122;s perspective, we work in teams at each of the production sites. We try keep a good benefit plan and weâ&#x20AC;&#x2122;re also pretty rural, which gives us access to a good work ethic. Weâ&#x20AC;&#x2122;ve got good tenure. Iâ&#x20AC;&#x2122;ve got people who have worked for me for 25 years. ROSE: There is no pellet engineering degree, like there is a chemical engineering degree. So we train our own, typically. Once you build a culture in a typically rural area around your plant, you try to hire people with aptitude and attitude, and then train the specific skills. The way we run our plant may be very different than the way T.J. or Bruce have divided up the skills or the work required for their positions, so we try to hire the right people and then train them to be the right skilled worker. That seems to work. It sounds easier than any of it is. ROECKER: Itâ&#x20AC;&#x2122;s kind of clichĂŠ, but we absolutely regard our people as our most important asset. Without the employees we have, we couldnâ&#x20AC;&#x2122;t accomplish the things we do, but itâ&#x20AC;&#x2122;s a big challenge as well. We've talked about how there is a little bit of black art in pellet making, particularly from an equipment standpoint, as there are some real challenges. Because our industry is so immature, even the equipment OEMs donâ&#x20AC;&#x2122;t have it all figured out. So now that we have a team that has, on their own for the most part, figured out some of the secrets about the best way to make our plant run, weâ&#x20AC;&#x2122;ve got to do everything possible to hang on to those guys. Something we have started doing with some success is recruiting part-time technical support through an engineering internship program that we have established with Georgia Tech. We started last year with three engineers, and we've got three more coming in this summer. PORTZ: What is the near-term outlook for your businesses moving forward? What is on your radar for the next 12 to 18 months? MORICE: For us at Marth, I think it is incremental growth. We try to avoid the roller coaster, but sometimes you canâ&#x20AC;&#x2122;t because of fossil fuel markets, which can drastically impact home heating. We have targets for some incremental growth, and we have orders for that growth. We should be fortunate enough to achieve it.

LISLE: Since Iâ&#x20AC;&#x2122;ve been back in the industry for a couple of years, Iâ&#x20AC;&#x2122;ve been trying to get our plants back up to nameplate capacity, so as a company weâ&#x20AC;&#x2122;re reviewing both of our facilities to get them there. My philosophy is 93 percent availability, 351 days a year. That is what my target is. Thatâ&#x20AC;&#x2122;s where I want to be, and it gets me very close to nameplate. It would do a lot of things. It gives us more product available for market development, and it lets us satisfy our customerâ&#x20AC;&#x2122;s requirements. The other thing that is really promising is bulk delivery. We made a major investment at our central Pennsylvania plant to deliver bulk now. Weâ&#x20AC;&#x2122;ve got a couple of trucks out there, and we deliver bulk product to customers. Weâ&#x20AC;&#x2122;re seeing major growth opportunities in that area. ROSE: Weâ&#x20AC;&#x2122;re going to be doing much of the same as Bruce just mentioned. Weâ&#x20AC;&#x2122;re investing in the plant to make it more effective and efficient, higher availability, closer to its nameplate. And weâ&#x20AC;&#x2122;re going to be content with some steady, slow growth. Weâ&#x20AC;&#x2122;re not looking to double the size of the plant. Weâ&#x20AC;&#x2122;re still learning. ROECKER: Our No. 1 focus is to make sure we have a safe, reliable plant to operate. If we need to make additional investment in that area to improve, then we will. Outside of that, we are going to maximize the capability of the asset we have, to our nameplate capacity. Weâ&#x20AC;&#x2122;re fortunate to have a significant amount of our production dedicated to long-term contracts through the end of the decade. Still, based on our large production volume, that leaves a considerable portion that we are actively looking to find a home for. Weâ&#x20AC;&#x2122;re essentially sold out this year, but next year we're excited about the opportunity to move pellets into some different areas. Editorâ&#x20AC;&#x2122;s note: A full transcript of this interview can be found online at biomassmagazine.com.

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Author: Tim Portz Vice President of Content & Executive Editor, Biomass Magazine tportz@bbiinternational.com

JUNE 2015 | BIOMASS MAGAZINE 21

ThermalNews Commerical systems Mohawk Valley Deerfield highway garage Deerfield municipal building Old Forge Hardware Town of Webb municipal building Town of Webb highway garage Total Body Fitness in Barneveld, N.Y. North Country Indian Lake district heating project Town of Morehouse highway building Old Forge Hardware

Residential systems Mohawk Valley 2 residential projects in Cold Brook, N.Y. 1 residential project in Poland, N.Y 1 residential proejct in Clinton, N.Y 1 residential project in Utica, N.Y. North Country 1 residential project in Potsdam, N.Y. 1 residential project in Cleveland, N.Y. SOURCE: NYSERDA

15 pellet heating projects announced in New York The New York State Energy Research and Development Authority and Vincentâ&#x20AC;&#x2122;s Heating and Fuel Service have announced the kickoff of 15 commercial and residential high-efficiency, low-emission wood pellet-fired heating projects. The 15 projects include six commercial and five residential systems in Mohawk Valley and two commercial and two residential systems in North Country.

The entities are also making bulk pellet delivery available in the Mohawk Valley and North Country. â&#x20AC;&#x153;We at Vincentâ&#x20AC;&#x2122;s Heating are proud of the commitment NYSERDA and our company have made to the environment and our communities,â&#x20AC;? said Laurie Vincent, owner of Vincentâ&#x20AC;&#x2122;s Heating.

Vermont invests in wood heat program Vermont Gov. Peter Shumlin has announced $1.6 million has been awarded to the Brattlebro-based Sustainable Energy Outreach Network through the Public Service Departmentâ&#x20AC;&#x2122;s Clean Energy Development Fund. SEON will work with Building Green, the Windham Regional Commission, the Northern Forest Center, and other businesses and organizations to offer Windham Wood Heat, a program to provide for the installation of wood pellet and wood chip heating systems for schools and municipal buildings located within the county.

Shumlin made the funding announcement at the Academy School in Battleboro, which will work with the Windham Wood Heat Program to switch to a pellet boiler system. SEON was selected through a competitive bid process to lead the project, and among the goals set out by the Clean Energy Development Fund are maximizing the number of wood heating systems installed, and leveraging the programâ&#x20AC;&#x2122;s activity with complementary energy efficiency measures to increase energy savings.

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THERMAL¦

Targets, Policy for State-Level Thermal Energy Markets BY ADAM SHERMAN

The use of energy for space and water heating accounts for roughly one-third of the total energy consumed in the U.S. and is supplied almost entirely by fossil fuels such as natural gas, propane and heating oil. In the Northeast, an epicenter of the growing wood heating market, more than 4.4 billion gallons of heating oil are used annually, primarily for space heating. This accounts for approximately 86 percent of the national demand for heating oil. In recent years, many northeastern states have established aggressive targets for renewable energy as a way to expedite the transition away from fossil fuels. To date, however, most of the targets have focused on the use of renewable energy for electricity generation, rather than for thermal energy or transportation. In 2010, the Northeast Biomass Thermal Working Group, a coalition of biomass thermal energy advocates, released a vision statement calling for state and federal policies to grow the use of biomass energy from 4 percent of thermal energy demand to 18.5 percent of demand in the region by 2025. Referred to as “The Bold Vision,” this report was a valiant effort to spur more aggressive targets at the state level, and also recognize the positive economic impacts a bigger biomass market would generate for local economies, including job creation and other societal benefits. A bold vision indeed, this report was a first step in the right direction, and if you are not familiar with it, look it up on the NEBTWG website—it is worth a read. Five years after release of the report, great progress has been made in the region. Maine, New Hampshire, Vermont, New York, and Massachusetts are now frontrunner states where advancement of modern wood heating is most noticeable. Each of these states has a wide range of regulations, incentives, financing and education programs aimed at helping the market accelerate the use of modern wood heating. Each offers some level of incentives for bulk wood pellet-fueled boilers and has modest grant programs to encourage larger commercial and institutional wood heating projects. And a few states have also adopted, or are currently pursuing, other helpful policies, such as flexible boiler regulations; sales tax exemptions on biomass heating equipment; fuel, state income tax credits; PACE and other financing programs; thermal inclusion in their state renewable portfolio standards; government lead-by-example policies, and wood heat education and technicalassistance programs.

Any of these policies taken individually may be a helpful step in the right direction, but they remain a patchwork of activity with incremental gains. When several can be woven together into a portfolio of biomass thermal energy policies, however, a lot more progress can be made. This is essentially the “carrots, sticks and tambourine” approach touted by our colleague (and 2015 Excellence in BioEnergy Award winner) Christiane Egger from Upper Austria. In the U.S., we need a combination of financial, regulatory, and program support policies to move the market. But as states move toward developing portfolios of biomass thermal policy, we need also need state-specific targets for biomass thermal energy. The NEBTWG Bold Vision goals of 18.5 percent of thermal energy met with biomass by 2025 for the Northeast region was a great start, but the real need is for each state’s energy office to set its own specific targets for biomass heating in conjunction with their counterparts in economic development and forestry offices. For example, in Vermont we have an ambitious state goal of reaching 90 percent all energy—including electric, thermal, and transportation—with renewables by the year 2050. Vermont is somewhat unique in that this state goal is not limited to just the electric sector. To meet such a large, ambitious goal, however, there must be smaller, achievable subgoals to serve as milestones to demonstrate measureable progress over time. Toward that end, we are working with the state to adopt a subgoal of reaching 35 percent of Vermont’s space heating needs with modern wood heating equipment and locally sourced wood fuels by the year 2030. Establishing high-level goals for the expanded use of biomass heating is an essential strategy to unify all the various policies and programs and will help ensure we are all rowing in the right direction. As more states broaden their energy thinking beyond just electricity, and realize that thermal and transportation make up a large majority of energy consumption (and carbon emissions), we have an ideal opportunity to engage state-level policy makers and regulators to help set clear goals and implement packaged policies and programs that will make measurable progress toward those goals. Author: Adam Sherman Manager, Biomass Energy Resource Center asherman@biomasscenter.org (802) 658-6060

JUNE 2015 | BIOMASS MAGAZINE 23

¦THERMAL DEPARTMENT

SAME VISION: Neil Harrison and Christiane Egger, above, and Gustav Melin, next page, have put their stamp on Europe’s biomass heat market, which has grown tremendously over the past few decades. PHOTO: GAMUT ONE STUDIOS

Setting the Scene

In Europe, the stage for biomass heat is set and industry leaders are engaging crowds, ready for the next act. BY KATIE FLETCHER

ver the past few decades, biomass heat has spread across Europe, its success largely a result of government and public education and support. Industry leaders such as Christiane Egger of Upper Austria, Gustav Melin of Sweden and Neil Harrison of England are a few standout professionals who have made a mark on their countries’ growing markets. When the attention of Egger, Melin and Harrison was drawn to biomass heat, an industry for it essentially didn’t exist. Egger helped forge Upper Austria’s prioritization of energy efficiency and renewable energy, assuming the role of deputy manager of the state agency OÖ Energiesparverband. Melin became immersed in the bioenergy business more than 20 years ago, and has served as CEO of the Swedish Bioenergy Association (Svebio) since 2008 and chairman of the European Biomass Association (Aebiom) since 2010. Harrison has been involved in the U.K.’s wood energy sector the majority of his career. He cofounded the wood energy company re:heat in 2011, and played a key role in forming the Wood Heat Association. Each has fashioned their career around building a market for biomass heat.

Carrots, Sticks, Tambourines

Egger has worked for the state agency focused on renewable energy and efficiency in Upper Austria since it formed in 1991. She also manages a network within the agency of 170 companies known as the Oekoenergie-Cluster (OEC), and serves as vice president of Europe-

24 BIOMASS MAGAZINE | JUNE 2015

an Federation of Agencies and Regions for Energy and Environment. Some partners within the OEC are considered pioneers of their trade by atomizing biomass heating in the mid-‘90s. “I was privileged to work with them and help them grow, and they helped create thousands of instate jobs,” Egger says. Upper Austria has indeed grown, with biomass heating representing more than 40 percent of the market and around 50,000 automatic biomass systems installed. Additionally, the number of OEC partners has doubled since 2000, with combined revenue jumping ten-fold to $2.5 billion. Now one of the leaders in biomass heat, Upper Austria’s first use of biomass dates back to the early ‘80s, driven by farmers and forest owners searching for new sources of revenue and markets for forestry residues. A cooperative business model emerged where both groups develop, build and operate small-scale biomass district heating systems, of which Upper Austria now has about 330. In addition to biomass heating system entrepreneurs and forwardthinking farmers and forest owners, another driving force for biomass is supportive state policies. Egger’s agency develops and promotes policy, supports legislation, and targets the entire industry with awareness campaigns, the World Sustainable Energy Days, training through their Energy Academy and independent technical advice, among other services. The combined success of these initiatives can be summed up as a three-pillar energy strategy of carrots, sticks and tambourines. The energy agency

THERMAL¦ adopted a cartoon to depict the strategy, with a donkey representing the market, stubborn and not inclined to change. However, once the sticks (regulatory measures), the carrots (financial measures) and tambourines (information and training) are applied, a successful policy package is created to stimulate market demand and support supply. “We need this combination of these three things, and we need them at the same time,” Egger says. Building upon the success of its policies, Melin the state has set a target to meet 100 percent of its electricity and space-heat demand with renewable energy sources by 2030. Egger hopes to see this through before she retires. “Part of my work is also to share this at the European level,” she says. “In Europe, we also have some very good initiatives around renewables and energy efficiency, so there is a role that we have in this process by being the pioneers.”

Polluters Pay Principle

Sweden began pioneering a market for biomass heat around the same time as Austria, with just as much success. One of the main reasons for the sector’s growth, besides its expansive forest industry, is the broad political support and incentives pushed forward by companies like Svebio, which represents about 250 member companies. Melin spends most of his professional time in his role as CEO of Svebio, but also serves as chairman of AEBIOM. “I actually have a very nice combination between business and policy in the positions that I have,” he says. In 2014, 34.3 percent of energy use in Sweden came from bioenergy. This continual increase over the past 30 years, is partly due to the polluter pays principle (PPP), which means those who are responsible for an emission should pay for polluting. Aligned with this principle, a CO2 tax was introduced in 1991. “It’s so much easier to fee the problem, because then you include it in the market economy,” Melin says. It’s no surprise Melin ended up in the roles he serves now, with his interest early on in growing and cultivating wildlife and forestry. He was growing vegetables at the age of 12, he says, an interest that led him to study agriculture in Sweden. For a time, Melin developed plant material and machinery for short rotation coppice willows as CEO of Agrobränsle AB, and he currently serves as director of the board in European Willow Breeding AB. Continuing his work with biomass, Melin had a short stint trading pellets as business area manager at TallOil AB in Stockholm. Melin uses those experiences in his position of CEO of Sveibo, which he assumed after 12 years on the board. Melin references Sweden’s allemansrätten, or “the everyman's right” to describe the country’s forestry mindset. Essentially, everyone should have the right to roam, but with it comes an equal emphasis upon the responsibility to not disturb the countryside. Although Melin believes nature should be preserved, he also believes its preservation can be maintained by using the land’s resources in a sustainable and cost-efficient way. Mirroring Melin’s stance is a campaign called Biomass Counts, launched by AEBIOM in December. The campaign seeks to balance the current debates on biomass by showcasing the reasons sustainable biomass counts in the EU policy debate.

Biomass Heat Gold Rush

Across the North Sea in Northumberland, England, Harrison’s view on the allemansrätten altered as he moved away from nature conservation to the forestry and wood energy sector in 2003. “I gradually got fed up with the whole ‘let’s just pickle nature’ angle,” he remarks. Even though Harrison became disenchanted with the conservation movement, he still enjoys being outdoors with his children and sprocker

spaniel Tess. Northumberland County holds a history in industrial energy and innovation and according to Harrison, has been able to preserve its independence and, identity. “We haven’t been starbuckified yet,” he chuckles. Although Harrison began his career in biomass heat slightly later than Egger and Melin, it too, began around the same time his country’s industry started emerging. Harrison estimates the U.K. thermal industry to be about 15 to 20 years behind the Austrians and Swedes, but now with the renewable heat incentive (RHI) a gold rush for biomass heat has ensued. Across the U.K., over 9,000 new nondomestic systems have been registered since November 2011. Among all other technology covered under the RHI, solid biomass is in the lead by a huge margin at a ratio of 20-to-1. The RHI provides fixed subsidies per kilowatt hour (kWh) of heat produced, and to date most of its tariff payments have been to sub-200 kW boilers. The busy traffic with these boilers has resulted in aggressively reduced tariffs. Because of this, Harrison sees the biggest opportunity for biomass heat in the industrial market going forward. He says near-perfect-storm conditions exist, notwithstanding current oil prices. A massive investment in pellet infrastructure to serve the U.K. power station market and a mature industrial base are two of the conditions. “I’d just like to keep driving this industry forward,” Harrison says. “Its potential is enormous in the U.K. and I think we’ve only just scratched the surface thus far.” Before Harrison and business partner Ben Tansey cofounded re:heat in 2011, they worked together in the forest service, and developed the Ignite training program, the first formal training course in the wood heat sector. For the next few years Harrison occupied his time in New Zealand working for Living Energy. He helped pioneer the industry there by installing the first six woodchip boilers outside the timber processing sector, and helped provide the foundation for Living Energy to become the market leader in Australia. Soon after, Harrison worked for a few years as senior biomass consultant with the Scottish Agricultural College. Now, Harrison spends much of his time consulting, which he says has unfortunately become a lot of remedial work. Paucity of standards, regulation and appropriate training have led to a number of suboptimal installations. “You have to start with standards, then you need the skilled individuals that deliver against those standards,” Harrison says. He is passionate about professionalizing the industry, and believes the WHA will help. “WHA was really a response to the lack of representation for the sector and the desire to actually create a sector that you can call an industry, not just a whole set of disparate business and individuals,” Harrison says. Egger, Melin and Harrison have all helped an industry for biomass heat evolve in their respective countries, creating models for the rest of the world to emulate. Other countries, particularly in Europe, have made considerable advances as well, but the U.S. lags behind. All three believe the U.S. has potential, but battling external impacts like the price of oil and obtaining political support will take time. Maintaining the same level of political support is a challenge even in Europe. It keeps these three biomass heat frontrunners busy ensuring standards are set and proper training is in place, as they manage their growing companies dedicated to championing the benefits bioenergy has to offer. Author: Katie Fletcher Staff Writer, Biomass Magazine 701-738-4920 kfletcher@bbiinternational.com

JUNE 2015 | BIOMASS MAGAZINE 25

BiogasNews Current livestock AD systems Beef

Poultry

Dairy

202

Swine

Mixed

SOURCE: U.S. EPA AGSTAR

USDA initiative aims to increase livestock AD systems In April, Agriculture Secretary Tom Vilsack laid out a comprehensive approach to partner with agricultural producers to address the threat of climate change. The new initiatives build off the creation of the USDAâ&#x20AC;&#x2122;s Climate Hubs last year and aim to utilize voluntary, incentive-based conservation, forestry, and energy programs to reduce greenhouse gas emission, increase carbon sequestration and expand renewable energy production in agricultural and forestry sectors. One component of the approach targets livestock producers, calling for the encouragement of broader deployment of anaerobic digesters, lagoon covers, composting and solids separators to reduce methane emissions from cattle, dairy and swine operations, including the installation of 500 new digesters over the next 10 years. Other components of the plan target soil heath; nitrogen use; land conservation; grazing and pasturelands; private, federal and urban forests; wood products and energy generation and efficiency, including the promotion of renewable energy technologies and using the Rural Energy for America Program to develop renewable energy opportunities.

Detroit Zoo aims to fund AD project with crowdfunding campaign The Detroit Zoological Society and Michigan Economic Development Corp. have opened a crowdfunding campaign through Patronicity to support the development of an anaerobic digester (AD) that will harness the power of poo at the Detroit Zoo. If the DZS attains its crowdfunding goal of $55,000 by June 15, the MEDC will provide a $55,000 matching grant. The digester would process 400 tons of animal manure generated each year by the zoo, along with other organic wastes. The resulting biogas would help power the 18,000-square-foot Ruth Roby Glancy Animal Health Complex, saving the Zoo $70,000 to $80,000 a year in energy costs. Compost generated by the system would be used to fertilize animal habitats, gardens and public spaces throughout the 125-acre zoo. Construction of the AD system is scheduled to begin next spring and be complete by the following fall.

26 BIOMASS MAGAZINE | JUNE 2015

BIOGAS¦

Team RNG: Bringing a New Fuel to Market BY STEPHANIE THORSON

A movement is only as effective as the people behind it. For renewable natural gas (RNG), a dynamic team has coalesced to bring this fuel to market and strengthen its profile and uptake. I am fortunate to be working with the individuals described below, whom I refer to as Team RNG. Apart from supportive government representatives and technology suppliers who play a critical role in RNG development, there are people from several associations and natural gas utilities that are charting the course for RNG development and dismantling barriers to production and use of this fuel. What drives this group and how did they choose this cause? Some of the key players describe their paths, motivations and findings. When Scott Gramm was hired at FortisBC, he told his boss he didn’t know a lot about the natural gas utility. “He replied that we had 1,100 employees who knew the natural gas business—he needed someone to make something happen,” Gramm says. “I would say, to those who would follow: Throw away your ideas of how it has to be in the utility world and think like an entrepreneur. Get creative, roll up your sleeves and work hard to find ways to make it work. Your customers expect that much from you.” Paul Cheliak of the Canadian Gas Association remembers his first briefing on RNG. “People were speaking about digestate, anaerobic this and that, dried solids….I wondered if I stumbled into the wrong briefing room. After peeling back the onion (to be used in a digester, of course!) a little further, I was taken aback by the passion of the RNG community and the simplicity and practically of RNG for traditional energy markets. Safe to say, I’m glad I walked into that briefing room and I’ve never looked back.” Cheliak will be working with industry colleagues to implement the RNG Technology Roadmap recommendations and to promote smart policies that can realize the Canadian RNG potential. When Don Beverly was hired in 2005 by an equipment manufacturer to develop a siloxane removal technology for landfill gas, job one was to look up the word siloxane. When he moved to Quebec’s Gaz Métro, he designed the mechanisms needed to incorporate RNG into the often complex framework of rules governing natural gas distribution. Education and promotion now occupy

much of his time. “Unlike solar or wind power, renewable energy from waste exists only because we make the waste in the first place,” he says. “For me, closing the loop to recover this unused energy is really about living up to what I learned from my parents and what I now teach to my children: When you’re done, clean up and put everything back in its place.” Johannes Escudero of the RNG Coalition says he would rather jump off the proverbial cliff only to find out there was no water below and die, than to never jump and live forever wondering ‘what if we had?’ “This was precisely my thought when David Cox and I recused ourselves of all energy related policy in the California State Legislature where we were employed at the time, and fronted the costs for the RNG Coalition’s inaugural membership luncheon,” he says. “Expecting only a handful of companies to attend, I recall the pleasant surprise when more than 40 organizations attended and agreed to join or otherwise work with our new coalition. Shortly thereafter, our members again enjoyed similar surprise when we overcame insurmountable political odds to pass legislation reversing quarter-century-old statute and create a new market in California. The rest, as they say, is continuing to unfold as history.” Cora Carriveau is a self-proclaimed pipeline-hugging environmentalist with Union Gas. “My biggest motivator comes from knowing that the California government (Air Resource Board) has proposed a significantly reduced carbon intensity for RNG derived from wastewater treatment plants,” she says. “If we adopted this source of RNG as a vehicle fuel instead of gasoline or diesel, we could reduce our GHG emissions by almost 170 percent. I like to think that the work I do will help this 100-year-old-plus company to continue to be sustainable and deliver the affordable energy that our communities and country need well into the future. “ Jennifer Green of the Biogas Association in Canada points out, “The industry is confident, developers are well-informed, and support is growing. Now is the time for Canada to advance RNG and realize its economic and environmental benefits.” Author: Stephanie Thorson Associate, Biogas Association sthorson@biogasassociation.ca (613) 822-1004

¦BIOGAS DEPARTMENT

EDUCATING YOUTH: On Earth Day 2013, Chris Voell, then with BioCNG LLC, helped educate 150 children in Sussex County, New Jersey, on how landfills work and how biogas from landfills can be used for electricity or vehicle fuel.

Advancing Landfill Gas Aria Energy Business Development Manager Chris Voell discusses his long, impactful career in waste management and landfill gas energy development. BY RON KOTRBA

rowing up, Chris Voell lived the allAmerican childhood outside Buffalo, New York, with two caring parents and three younger siblings. Long, carefree bicycle rides, baseball and family camp outings defined those fleeting summer days while ice skating helped ward off the hard Buffalo winter chills. His baseball team at St. Francis Catholic School went 30-0, a passionate high point of his young playing days. His love of fishing and hiking manifested in his desire to become a park ranger, but Voell’s plans were thwarted early on—something he regrets to this day. “Two of my true loves in life are the outdoors and talking to people, especially 28 BIOMASS MAGAZINE | JUNE 2015

meeting folks I don’t know,” Voell says. “I got scared away when someone told me something like ‘Only one out of a thousand who want to be a park ranger get to do that.’ I think I would have made a great one.” Voell’s father was an environmental engineer before the phrase was even coined, he says. “We would visit landfill and wastewater treatment plants while on family vacations and learn about how we manage our waste streams,” Voell tells Biomass Magazine. After high school, Voell earned his associate’s degree in the forestry preprofessional program from Paul Smith’s College in the Adirondacks. “When I finished, I still wasn’t sure what to do,” he says. He moved to the

Washington, D.C., area and began working for the Governmental Refuse Collection and Disposal Association—now the Solid Waste Association of North America—in 1986. Later, while still with SWANA, he attended to University of Maryland and received his bachelor’s degree in natural resources management. “When I joined SWANA, the Landfill Gas Committee was the strongest and most influential member-based organization within the association,” Voell says. Therefore, the control and use of landfill gas was at the forefront of many of SWANA’s efforts, providing the 21-year-old Voell his initial education on producing, controlling and using re-

BIOGAS¦

newable energy. “The people who began and fostered the landfill gas energy industry into what it is today were a very innovative and hard working group,” he says. Lenny Hickman, executive director, was Voell’s mentor for a decade and taught him most of what he knows about solid waste—and provided Voell with instrumental introductions to others such as N.C. Vasuki with Delaware Solid Waste Authority, Tim Hunt with Palm Beach County Solid Waste Authority and Davis Myers with Monterey Regional Waste Management District. “All of these innovators were providing baseline management services to the citizens of their communities through landfills and waste-to-energy facilities, but also pushing the envelope in terms of recovering resources through recycling, composting, source reduction and energy recovery,” he says. SWANA primarily represented the public sector, but Voell also worked closely with the private waste sector. “While we sometimes did not see eye to eye, we regularly collaborated with the National Waste & Recycling Association,” he says. “I certainly learned a lot from NSWMA on how the private sector viewed the industry and how public-private partnerships can be an asset.” At SWANA, Voell regularly interfaced with a variety of other groups. “When National Recycling day was launched, I served as SWANA’s rep to the group,” he says. “I think what I learned working with SWANA is that I truly love working with the professionals in the solid waste industry. They are some of the most dedicated and genuine people I know.” Three years after leaving SWANA, Voell joined the U.S. EPA’s Climate Change Division as manager of voluntary methane programs (Landfill Methane Outreach Program, AgSTAR), “some of the best programs the agency ever launched,” he says. Voell was instrumental in progressing landfill gas, aenorobic digestion and wastewater treatment biosolids digestion projects and education. “I treated my role each day at EPA as a chance to help grow the biogas energy industry in the U.S., and later when the Global Methane Initiative was formed, a chance to share what we’d learned internationally,” he says. Much of his time abroad was spent in Ukraine. “While not easy, we eventually found a landfill in the south of the country at which to

install a landfill-gas-fired infrared heating system that uses a relatively small amount of gas to supply heat to on-site and adjacent buildings,” Voell says. “This has become a showpiece for the efforts in Ukraine.” In 2012, Voell left EPA and joined BioCNG LLC as its eastern sales manager, where he presented at approximately 20 regional and national solid waste and alternate vehicle shows regarding biogas-to-CNG possibilities. In the same year, he became a board member at the American Biogas Council and served two years in that role. “Most people aren’t aware that biogas can be upgraded to pipeline quality, much less compressed and used for natural gas vehicles,” he says. “Probably the biggest impact I had personally was helping to educate people on this and dispel rumors that this cannot be done.” Today, Voell is business development manager for Aria Energy, one of a handful of landfill gas energy developers that has

built its business exclusively on landfill gas energy project development, with more than 50 projects since its inception. Aria currently owns and operates 44 electricity and renewable natural gas projects across 16 states. When asked what his greatest professional accomplishments have been, Voell says, “I’m not going to try to point to one big thing or large project I’ve done, because my career hasn’t been defined in that way. I’d like to think that in a million little ways I’ve really helped move all of the sectors I’ve been involved in advance. One of my greatest joys comes from helping people become connected and better educated.” Author: Ron Kotrba Senior Editor, Biomass Magazine 218-745-8347 rkotrba@bbiinternational.com

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AdvancedBiofuelNews

2014 RFS volume comparison (in billion gallons) Statutory standards

Cellulosic biofuel Biomass-based diesel Advanced biofuel Renewable fuel

Initial 2014 proposed rule

2014 production (No. of RINs)

1.75

0.017 (range of 0.008-0.030)

0.033

No less than 1

1.280

2.700

3.75

2.20 (range of 2-2.51)

0.140

18.15

15.210 (range of 15-15.52)

14.340

SOURCE: U.S. EPA

EPA announces 2014-'16 RFS rulemaking schedule

Low Power Consumption Highest Energy Density Proven Reliability Low Maintenance

The most cost efficient

densification technology

30 BIOMASS MAGAZINE | JUNE 2015

The U.S. EPA has announced it will issue proposed volume requirements for the 2014, 2015 and 2016 renewable fuel standard, along with 2017 volume requirements for biomass-based diesel, by June 1. All four rulemaking are scheduled to be final by Nov. 30. Regarding the 2014 standard, the EPA said it will repropose 2014 volume requirements by June 1 that reflect the volumes of renewable fuel that were actually used in 2014. A portion of the new compliance schedule is the result of a proposed consent

decree in litigation brought against EPA by the American Petrochemical Institute and American Fuel and Petrochemical Manufacturers. Under the proposed consent decree, the EPA said that it will propose 2015 RFS volume requirements by June 1 and finalize volume requirements for 2014 and 2015 by Nov. 30. Also under the decree, the EPA will resolve a pending waiver petition for 2014.

Nearly 20 million cellulosic RINs generated in Q1 The U.S. EPA recently published renewable identification number (RIN) data for the first quarter of this year, reporting approximately 4.75 billion RINs generated during the quarter. A net total of 19.73 million D3 cellulosic biofuel RINs were generated during the first three months of 2015, including 286,237 RINs generated for ethanol, with 9.28 million generated for renewable compressed natural gas and 10.25 million for

renewable liquefied natural gas. All 19.81 million D3 RINs generated during the first three months of 2015 were generated domestically. No D7 renewable diesel RINs have been generated so far in 2015. In addition, 14.58 million D5 advanced biofuel RINs, 3.57 billion D6 renewable fuel RINs, and 472.28 million D4 biomassbased diesel RINs were generated during the quarter.

ADVANCED BIOFUELS AND CHEMICALS¦

Managing What You Measure BY MATT CARR

Every biomass business must have ways to measure success, output and efficiency improvements. But how easy is it to compare those measures across an entire industry? It may be a simple matter of dry weight tonnage and market value, but it can also become vastly more complicated. In the biobased business—where products must prove levels of sustainability to qualify for certifications, tax incentives, and other regulatory issues—measurement is key. Because algae are some of the most flexible biomass sources available, there is an incredible range of algae products on the market today, and an even greater number and variety slated to appear in the near future. As such, it’s impossible to create a simple impact measurement. We often field inquires at the Algae Biomass Organization such as: • What is the going rate for a ton of algae? • How much algae can be produced per gallon of water, or per ton of CO2? • What are the land requirements for an algae farm? These questions have answers, but those answers are not the blanket declarations we might expect when asking about output on biomass pellet values, or any commoditized industry for that matter. Algae are unique in their diversity. They can be raised indoors or out, and their energy source can be sunlight, sugar or something else entirely. Other inputs include CO2 at varied concentrations, perhaps proprietary enhancers, and water that may be salt, brackish, fresh or sourced from wastewater facilities. The outputs of algae cultivation can be even more diverse than their production methods, making measurement comparisons even more daunting. Algae production methods can produce varied ratios of oils, carbohydrates and proteins. One strain might produce an oil profile with a market value of a few dollars or few pennies per gallon, another might produce a specialty oil valued at hundreds or thousands of dollars per ounce. Every algae company is pursuing a different combination of these inputs and outputs. So how do we attempt to standardize measurements to compare technologies and products? The Algae Biomass Organization has taken the challenge head-on by developing a tool that offers a methodology to break down the different components of algae production into measurable blocks. The latest published iteration of this tool is the Industrial Algae Measurements

Version 6.0, an all-volunteer effort from academic and industry experts on ABO’s Technical Standards Committee who recognize the key to managing the algae industry is measuring all the pieces that make success possible. The IAM methodology sets the stage for standardized descriptions of the economic and environmental impact of almost any algae production facility, including all inputs and outputs. It provides the industry with a common descriptive language that can be applied across a variety of algae operations, regardless of size, technology or end products. Comparisons between similar methods or production segments now become possible. This year, the IAM is being revised and updated to become an even more comprehensive reference document, and will include a comparative introduction of production systems as well as a standardized framework for lifecycle analysis discussions along with carbon allocation mechanisms. IAM has been called the “operator’s manual” for building the algae industry, and it can even help reframe the aforementioned questions into different but more meaningful inquiries that can inform a particular market operator, investor or regulator about what they might expect from the algae-derived products that are now becoming commercially available. For example, the value of a ton of dry algae can vary widely, from a few dollars to thousands upon thousands. Acknowledging the variety of production methods and outputs that IAM 6.0 compartmentalizes for us may lead to a reformulation of the question through the lens of a particular market or end-use: What is the cost of producing 1 gram of algae-derived Omega-3 fatty acids, or 1 ton of high-protein animal feed? The old adage of “You can’t manage what you can’t measure” is well understood by those of us in the algae industry who are working with so many different approaches. The IAM 6.0 is an important tool as a new wave of algae-derived products become available for purchase, driving revenues and competing alongside existing products. Thanks to the common language these standards are establishing, the algae industry is ready to measure up to commercial scale. Author: Matt Carr Executive Birector, Algae Biomass Organization www.algaebiomass.org 877-531-5512

JUNE 2015 | BIOMASS MAGAZINE 31

Q&A

Taking the Reins

Leveraging Dan Cummings’ 25-year career in energy and clean technologies, POET-DSM names him first president of the joint venture. Four months after the fanfare and excitement of the grand opening of PoetDSM’s flagship cellulosic ethanol facility in Emmetsburg, Iowa, Dan Cummings was invited to sit in the joint venture’s driver’s seat. Recognizing that the job would require more than the part-time attention of executives from the parent companies, Cummings was named the organization’s first president. The role entails a broad set of responsibilities, including overseeing day-to-day operations, public engagement and stoking legislative support for next generation biofuels. On top of all that, Cummings will be charged with carrying POET-DSM’s technology into the marketplace and spearheading licensing agreements. The mandate is a broad one, but Cummings is well-suited for the role, armed with vast experience in both energy and clean technology. In 25 years, Cummings has built an impressive resume peppered with roles at some of the biggest companies in the energy space. After earning a law degree from Temple University, he began his career as legal counsel and advisor to energy giants such as BP. In 2005, Cummings joined INEOS and eventually logged time as counsel, vice president and, most recently, president of INEOS New Planet Bioenergy. Throughout his career, Cummings has contributed to both company and industry boards, serving as the cochair of the Biotechnology Industrial Organization’s Biofuels Working Group. Cummings joins POET-DSM at a critical time in both the company and the industry’s development. He and his team must bring steady-state operation to the Emmetsburg facility in order to build confidence with future licensing customers. While doing that, Cummings must continue to advocate for the continuation of the industry’s expansion as outlined by the renewable fuel standard (RFS). It’s an PHOTO: LAURA MEYER PHOTOGRAPHY

32 BIOMASS MAGAZINE | JUNE 2015

ambitious uptake, and it will require all of Cummings’ amassed knowledge to get it done. First of all, congratulations. You’ve been president of the POET-DSM joint venture for just over 100 days. How have you spent your first few months on the job? Thanks. I’ve spent the past few months getting to know our people and partner companies, understanding our technology and talking with our potential customers as we move this world-class technology forward. You’ve spent the majority of your career in the energy space. What attracted you to this industry? The energy space is one of the key areas where a person can make a difference with the environment and providing for a lowercarbon future. I’ve been fortunate, over my career, to be involved with advancing new energy technologies that lower greenhouse gas emissions, improve our mobility and provide for a cleaner, healthier environment. You joined the POET-DSM team after Project Liberty was built and had celebrated a grand opening. How did the existing team in Emmetsburg bring you up-to-speed on their progress with plant startup? First of all, as the president of the joint venture, I’ve spent a lot of time familiarizing myself with both of the parent companies, getting a sense of their respective visions, values and cultures. What I’ve found is that POET and DSM share a vision for the role of bioenergy in the world and the importance of it for our future. The companies themselves may have different backgrounds and reached this point in the new energy space through different means, but they share a vision of moving this great technology forward on a global scale.

Dan Cummings INTERVIEW BY TIM PORTZ

The team in Emmetsburg has been excellent in bringing me up-to-speed on their progress with plant startup and improvements in the technology as we have moved ahead. With all new technologies, the commissioning and startup take time, and you have to be patient as you work through the systems and optimize the processes. We have a great team on the ground, and I’m impressed with what’s been accomplished. Looking forward into the rest of your first year in the role, what are a couple of the biggest items on your to-do list? After a successful startup of Project Liberty, the biggest items are to move forward with more plants and license this technology on a global scale. Global demand for lower-carbon fuels continues to rise, and millions of tons of biomass are either underutilized or are not efficiently used from a carbon efficiency standpoint. We can help countries with a need to better utilize their biomass, provide a lower-carbon fuel source and help lower their overall greenhouse gas emissions. Of course, many of my future efforts here in the U.S. depend on whether we get consistent long-term support for the RFS from Washington, so we’ll be watching that closely. How important to the broader biofuels industry is the success of first-of-a-kind plants like Project Liberty? These first plants are important for demonstrating commercial production to the broader public, and for providing crucial experience for building out this industry. The conventional wisdom is new technologies like these take 20 years to bring forward to a full commercial scale. Scaling up technology like this is always a challenge, and we have learned so many lessons through Project Liberty that will lower costs and improve efficiencies in the next cellulosic ethanol plants. How much time do you spend thinking about the policy landscape? By the time this issue lands in people’s mailboxes, there should be some decisions on the RFS renewable volume obligation numbers? I spend a good portion of my time educating policymakers in Washington and abroad about policies to support the long-term viability of this sector. The support provided to renewable fuel development in the RFS was a driving force behind building Project Liberty. and forming this joint venture. Hundreds of millions of dollars have been invested by the parent companies to make this technology a reality, and we are determined to see it replicated. The EPA’s decision will likely be a major factor in determining whether that happens in the U.S. or in another country with a better market for cellulosic biofuel. JUNE 2015 | BIOMASS MAGAZINE 33

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34 BIOMASS MAGAZINE | JUNE 2015

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• Educational Sessions • Industry Exhibits • Networking Opportunities

Register Now Visit http://www.pelletheat.org/pfi-annual-conference for more information Key Topics: • Enhancing Pellet Operations • Preparing for OSHA Inspections • Policies & Regulations Impacting the Industry • Pellet Fuel Standards • Global Market Overview

Who should attend: • Pellet Fuel Manufacturers • Industry Suppliers • Equipment Manufacturers • Pellet Buyers from International Markets • Retailers and Distributors • Federal, state, and local government biomass experts • Anyone interested in learning more about the densified biomass industry

The Pellet Fuels Institute, located in Arlington, Virginia, is a North American trade association promoting energy independence through the efficient use of clean, renewable, densified biomass fuel. conference@pelletheat.org | www.pelletheat.org | 206-209-5277

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