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â– table of contents
www.woodbioenergymag.com
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FROM THE EDITORS Wacky World Of Wood Energy
28 IN-WOODS CHIPPING & GRINDING The Big Six Weigh In
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IN THE NEWS Lots Of Bioenergy Activity
38 CLASSIFIED ADVERTISEMENTS Employment Opportunities
14 COLUMBIA TIMBER COMPANY Foresters Diversify Into Chipping
Cover Photography by Jay Donnell: Left to right, Columbia Timber Company principals Jib Davidson and Norman McRae
18 WOOD BIOENERGY CONFERENCE It Was Packed With Content
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Wood Bioenergy / June 2018
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table of contents ■
advertising index Advertiser Index is a free service for advertisers and readers. The publisher assumes no liability for errors or omissions.
Volume 10
Number 3
28 Co-Publisher/Adv. Sales Manager ■ David H. Ramsey Co-Publisher/Executive Editor ■ David (DK) Knight Chief Operating Officer ■ Dianne C. Sullivan Publishing Office Street Address ■ 225 Hanrick Street Montgomery, AL 36104-3317 Mailing Address ■ P.O. Box 2268 Montgomery, AL 36102-2268 Tel: 334.834.1170 ■ Fax: 334.834-4525 Editor-in-Chief ■ Rich Donnell Managing Editor ■ Dan Shell Senior Associate Editor ■ David Abbott Associate Editor ■ Jessica Johnson Associate Editor ■ Jay Donnell Art Director/Production Manager ■ Cindy Segrest Ad Production Coordinator ■ Patti Campbell Circulation Director ■ Rhonda Thomas Marketing/Media Coordinator ■ Jordan Anderson Advertising Sales North American Sales Representative Susan Windham ■ P.O. Box 2268 Montgomery AL 36102-2268 334.834.1170 ■ Fax: 334.834.4525 E-mail: windham.susan4@gmail.com International Sales Murray Brett ■ 58 Aldea De Las Cuevas, Buzon 60 Benedoleig 03759, (Alicante) Espana +34 96 640 4165 ■ Fax: +34 96 640 4048 E-mail: murray.brett.aba@abasol.net Classified Advertising Sales Bridget DeVane ■ Tel: 334.699.7837 ■ 800.669.5613 E-mail: bdevane7@hotmail.com A Hatton-Brown Publication Other Hatton-Brown Publications:
Timber Processing ■ Southern Loggin' Times ■ Timber Harvesting Panel World ■ Power Equipment Trade
Airoflex Equipment
34
563.264.8066
Astec
3
423.867.4210
Bandit Industries
2
800.952.0178
BinMaster
13
800.278.4241
Bliss Industries
23
580.765.7787
CPM-Roskamp Champion
36
800.428.0846
CW Mill Equipment
37
800.743.3491
Evergreen Engineering
38
888.484.4771
Grecon
10
503.641.7731
Hunt Guillot & Associates
35
318.255.6825
Metal Detectors
12
541.345.7454
Mid-South Engineering
32
501.321.2276
Mid-South Forestry Equipment Show
33
662.325.2191
MoistTech
35
941.727.1800
Morbark Inc
40
800.831.0042
Peterson Pacific
39
800.269.6520
Precision-Husky
11
205.640.5181
Process Barron
9
205.663.5330
Rotochopper
21
320.548.3586
Sigma Thermal
23
888.676.1046
Universal Wearparts
37
800.647.8440
Vermeer Manufacturing
27
641.628.3141
West Salem Machinery
34
800.722.3530
Williams Patent Crusher
7
314.621.3348
Wood Bioenergy (ISSN 1947-5306) is published six times annually by Hatton-Brown Publishers, Inc., 225 Hanrick St., Montgomery, AL 36104. Wood Bioenergy is free to qualified readers in the United States, including owners, managers, supervisors and other key personnel. All non-qualified U.S. subscriptions are $50 per year, Canadian subscriptions are $60 and foreign subscription are $95 per year (U.S. funds). Subscriber Inquiries and Back Issue Orders—TOLL-FREE: 800.669.5613. Fax 888.611.4525. Subscribe or renew online: www.woodbioenergymagazine.com and click on the “Subscribe” button. When requesting change of address, please specify both old and new. Periodicals postage paid at Montgomery, Ala. and at additional mailing offices.
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All advertisements for Wood Bioenergy are accepted and published by Hatton-Brown Publishers, Inc. with the understanding that the advertiser and/or advertising agency are authorized to publish the entire contents and subject matter thereof. The advertiser and/or advertising agency will defend, indemnify and hold any claims or lawsuits for libel violations or right of privacy or publicity, plagiarisms, copyright or trademark infringement and any other claims or lawsuits that may arise out of publication of such advertisement. Hatton-Brown Publishers, Inc. neither endorses nor makes any representation or guarantee as to the quality of goods and services advertised in Wood Bioenergy. Copyright ® 2018. All rights reserved. Reproduction in whole or part without written permission is prohibited. Printed in USA.
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■ from the editors
Wood Bio Conference:
Past, Present And Future T
he fifth Wood Bioenergy Conference & Expo held April 11-12 in Atlanta, Georgia was perhaps the most enjoyable yet. That’s because the information exchange combined the past, present and future, and you walked out at the end with a real understanding of the industrial wood pellet industry—where it’s been, where it is, where it’s going. This Wood Bio Conference was the first one where there was this feeling that the industry has been around long enough to indeed have a past. We’re not talking about the fact that it was 20 years ago when the first industrial wood pellets were exported out of Canada, as much as we’re talking about the 10 years it has been since the first industrial wood pellet plant started up in the Southeast U.S. Given that the number of plants in the Southeast is now approaching 20 made this conference the opportune time to look back at lessons learned in those 10 years. Several presenters touched on that subject, none more entertaining than Harold Arnold, president of Fram Renewable Fuels, whose company it was that started up that first plant in 2008—the first of three mills the company now operates today. Arnold’s bottom-line message was that starting up an industrial wood pellet business is not for the weak of heart, and when you think you have it figured out, you probably don’t. But if you like constant challenges and don’t mind changing course in mid-stream, come on in. The moderator of that session said Arnold reminded him of Bear Bryant, the former Alabama football coach, who moaned and groaned his way to multiple national championships. “You paint a bleak picture,” the moderator said to Arnold, “But you keep building pellet plants.” Several presentations addressed the impact the industrial wood pellet industry has had on forest management in the Southern U.S. And the message here was that the industry has strengthened the wood supply chain, not only providing markets for landowners, in-woods chipping operators, sawmills and pellet producers, but bringing in a strong commitment to forest sustainability that calls for pellet producers to put their forest operations data on the table for literally the world to see. Many speakers pointed to positive attributes such as forest sustainability, carbon dioxide reduction and the
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enhancement of rural community economies as some of the ingredients of a very compelling story that industry representatives should do a better job of taking to the media and public officials. If traditional wood industries (such as pulp and paper) have been inclined to play close to the vest, the industrial wood pellet industry is all about transparency. Very refreshing. Perhaps our favorite part of the conference was the look into the crystal ball of worldwide industrial wood pellet demand into 2025. Several speakers, citing several sources including their own studies, basically said there’s more demand to come from Europe, though not at the amazing clip we’ve seen in recent years, but it’s Asia, and in particular Japan and South Korea, that will catapult the industry to another level of demand. Our extensive coverage of the conference presentations begins on page 18 and runs on for 10 pages or so. Once we started writing about it, we couldn’t stop, because there was so much great information we felt obligated to not leave out, though we know we still did. Biomass and bioenergy conferences and expos are still in abundance worldwide—there were three in Aprll—but the Wood Bioenergy Conference & Expo always rises to the top because it has the best speakers from the leading producer companies and the subject matter in its sessions is the most timely and prevalent.
Wood Bioenergy / June 2018
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■ in the news Despite Challenges Astec Sees Growth Despite some setbacks, Astec Industries President and CEO Benjamin Brock still sees the wood pellet business as potentially a $100 million a year business for the company and doesn’t rule out multiple plant projects given the expected increase in worldwide wood pellet demand.
Astec production line at Hazlehurst Wood Pellets
Brock referred to 2017 as an “extremely challenging year” for the company, which has financing arrangements and is the turnkey suppler to the new Hazlehurst Wood Pellets plant in Georgia and is the turnkey provider to the new Highland Pellets plant in Arkansas, both of which are in operation. Astec reported last year, however, it was going back in and performing operational upgrades to those plants—though different issues at each plant—to bring them to production capacity. Both plants operate with modular production lines. Brock said they’ve made good progress on those updates, and have ongoing quote activity for new pellet projects. However, Brock noted, “We are not going to sign a new pellet plant order until we have finished at both of the current plant sites.” He said Astec should be in position to add an order in time to deliver another complete wood pellet plant in 2019. “If we do get an order for another big pellet plant, we will only do so as a supplier of
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the equipment in accordance with our traditional equipment, parts and service offerings,” he added, apparently indicating Astec’s future preference to steer clear of total project financial backing.
close proximity to the Lake County Railroad line—the primary means to transport refined fuel.
Biofuels Plant Will Convert Biomass
Biomass Secure Power Inc. has entered into an exclusive licensing agreement with River Basin Energy Inc., which gives Biomass Secure Power the rights for technology that will be deployed at BSP’s Natchitoches, La. plant for the manufacture of biocoal (torrefied biomass briquettes). Biocoal is a sustainable fuel replacement for power generators currently burning coal. BSP believes that this patented process will be a game changer for power companies currently using coal to generate electrical power. Contained in the technology package are a number of patents associated with the pelletizing of biocoal at high temperature. High temperature briquetting provides a product that can be stored and handled using the same equipment currently in use for handling brown coal. BSP will process wood chips in a fluid bed reactor at its plant in Louisiana. The product of the reactors is a continuous stream of torrefied wood chips that will be formed into briquettes. The briquettes will be used to generate electrical power from a certified sustainable fuel source. The patented process will contain 30% more energy than a standard white wood pellet and not require special handling and storage equipment, according to the company. BSP has engaged Wood PLC as the EPC for the Natchitoches plant and expects to break ground in the spring. It is planned to install equipment that will produce 240,000 tonnes per year at the end of phase 1 construction. BSP plans to continue the development of the Natchitoches plant in two further phases, increasing production by 400,000 tonnes per year for each added phase. The plant is expected
Red Rock Biofuels, a Coloradobased company established in 2011, is moving forward to construction of a renewable energy biofuels plant in Lakeview, Ore. The facility is expected to convert 136,000 tons of woody biomass and forest byproducts into 15 million gallons of renewable fuels annually. “Red Rock Biofuels LLC is pleased to announce that after many years of development, we are commencing construction on our planned biorefinery in Lakeview,” says Jeff Manternach, Chief Financial Officer for Red Rock. “We appreciate the support from all of our project partners and are planning a ground breaking ceremony for later this summer.” Construction is expected to take 18 months, with operations planned to start in 2020. By using a combination of gasification, hydro-processing and the FischerTropsch method of combined pressure, heat and water, raw materials will be converted into jet and diesel biofuel. The company was created in response to widespread and devastating wildfires in the Western U.S. caused by forest debris and the rising demand for drop-in, cost competitive renewable jet and diesel fuels. Funded through bonds, equity and already established contracts with FedEx, Southwest Airlines and the U.S. military, the project received a major boost in January when Oregon Gov. Kate Brown approved $245 million in bonds for Red Rock Biofuels. The site for the facility is located on the southern end of Lakeview south of Kadrmas Road in
Wood-Fueled Biocoal Plant Makes Progress
Wood Bioenergy / June 2018
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in the news ■
to meet its full capacity of 1 million tonnes per year within 36 months. Biomass Secure Power Inc., which is incorporated in British Columbia, reports it has entered into a Memorandum of Understanding (MOU) with a power company market located in the U.S. The MOU states that Biomass Secure Power will commence shipping of biocoal in the third quarter of 2019 and agrees to ship up to 200,000 tonnes in 2019, up to 300,000 tonnes in 2020, and up to 400,000 tonnes in 2021 or as adjusted by further agreement. BSP and the power company are obligated to enter into good faith negotiations towards a long-term supply agreement not less than 20 years. The State of Louisiana has approved a waste bond in the amount of $88,536,200 and Bank of America Merrill Lynch (BAML) has been engaged to sell the bonds. It is the aim of the company to continue to develop multiple large plants to be constructed using the same basic design of the plant developed at Natchitoches. It is anticipated that plants will vary in accordance with the available resource and will be in the range of 640,000 tonnes to 1,600,000 tonnes per year. The Natchitoches facility will process forest residuals, cull, thinnings, slash, tree tops, wood chips, lumber mill residuals and branches. Phase 1 of the plant design features three identical production lines with a nominal capacity of 80,000 tonnes/year each, with services to be added to enable the company to quickly initiate phase 2 and 3 as market conditions dictate. The company notes there is sufficient fiber to add a second facility in the Red River Mississippi catchment area and says it has identified resources which are sufficient for construction of three facilities in the north Louisiana/Mississippi region that could operate at a combined production rate of greater than 4 million tonnes annually.
Former Rentech Mill Finds New Life A little over a year after news broke that U.S. pellet giant Rentech’s northern Ontario operations—Wawa and Atikokan—were struggling, the Atikokan wood pellet plant is once again operational
under new, local ownership, and looking to expand. BioPower Sustainable Energy Corp. purchased the Atikokan plant from Rentech in December 2017. BioPower is a subsidiary of True North Timber (TNT), a logging contractor based in Chapleau, Ont. Both TNT and BioPower are
June 2018 / Wood Bioenergy
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■ in the news
owned and operated by CEO Mark Guillemette. “We had been looking for the right investment opportunity for several years, and this pellet plant was exactly the opportunity we had in mind in Northern Ontario. It is clean, innovative and a sustainable energy solution,” Guillemette says. The Atikokan wood pellet plant complements TNT’s existing presence in sustainable woodland operations and allows the company to extend into new emerging markets, he says. Originally a particleboard mill, Rentech purchased the Atikokan facility in 2013. In the same year Rentech purchased a former OSB mill in Wawa from Weyerhaeuser. Both mills were converted to pellet plants and secured long-term offtake contracts, but encountered delays in production due to equipment failures and issues with ma-
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terial handling equipment. In February 2017 Rentech idled the Wawa mill, citing equipment and operational issues as well as an uncertain market for wood pellets. Atikokan remained open, but reduced its production to 45,000 tonnes per year, just enough to meet the company’s long-term contract with Ontario Power Generation’s (OPG) Atikokan generating facility. Under its new ownership, the Atikokan pellet plant is again fully operational and employs 25 to produce and deliver the OPG contract, which is secure for the next seven years. BioPower will meet the production target of 45,000 metric tonnes of commercial grade pellets this year, and is looking to increase its customer base in order to produce even more. The plant’s current capability and configuration allows it to produce 110,000
tonnes per year. Fiber for the mill continues to be supplied by Resolute Forest Products, which operates three sawmills and a pulp mill in northwestern Ontario. BioPower is moving forward with some minor upgrades and capital improvements. One such upgrade is the installation of an automated bagging machine, which will allow the company to serve new customers and markets with residential wood pellets. Guillemette says he is passionate about sustaining northern industries and employment to help create prosperous communities. His father, Albert Guillemette, was the founder of TNT, which today produces more than 400,000 metric tonnes annually and employs nearly 100. This article appeared originally in Canadian Biomass magazine.
Wood Bioenergy / June 2018
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■ in the news Pinnacle Continues Pellet Growth Pattern Pinnacle Renewable Holdings Inc. has entered into a long-term, take-or-pay off-take contract with Ube Industries Ltd., a diversified Japanese conglomerate with annual revenues of US$6 billion. Pinnacle will supply 70,000 metric tons per year of industrial wood pellets to Ube beginning in late 2019. “Japan has made a strong commitment to decarbonization, and biomass is poised to become an increasingly important part of the country’s energy mix,” says Robert McCurdy, CEO of Pinnacle. “One third of our $421 million in contracted backlog in 2017 was with customers in Japan, and this new contract with Ube further builds on our strong sales momentum in this growing market.” Demand for industrial wood
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pellets in Japan is accelerating, supported by the government’s Feed-in Tariff system. There are more than 10 biomass projects currently in late-stage development in Japan. The Japanese market represented 3% of global demand for industrial wood pellets in 2016 and should increase to 10% in 2021 and 17% in 2026. l Meanwhile Pinnacle announced approval to commence the redevelopment by Smithers Pellet Limited Partnership of an existing particleboard facility in Smithers, BC to a wood pellet production facility. SPLP is a limited partnership in which West Fraser Timber Co. has a 30% interest and Pinnacle has 70%. The facility, which is connected via direct rail link to Pinnacle’s Westview Port Terminal, will have an annual production capacity of 125,000 metric tons. Initial wood pellet production is expected to
commence in the third quarter of 2018. Wood fiber supply and customer off-take agreements for the facility’s annual production have been secured under long-term contracts, according to Pinnacle.
Drax Joins Coal Displacement Group Drax Group, owner of the largest power station in Western Europe, has signed up with the Powering Past Coal Alliance, a global coalition of counties, states, cities and businesses committed to ending coal generation. The company, which has already upgraded half of its power station in North Yorkshire to use sustainable wood pellets instead of coal, has signed on to the UK-Canadian initiative, which seeks to end the use of coal by 2030 in developed countries.
Wood Bioenergy / June 2018
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in the news ■
The company’s involvement in the initiative was announced by the Rt Hon Claire Perry MP, UK Minister of State for Energy and Clean Growth, at the Bloomberg Future of Energy Summit in New York. Perry commented, “The UK leads the world in tackling climate change. We have reduced emissions by more than 40% since 1990. By phasing out traditional coal power, we are not only taking active steps to tackle climate change, we are also protecting the air we breathe by reducing harmful pollution. The Powering Past Coal Alliance sends a clear signal that the time for unabated coal fired electricity has well and truly passed.” Will Gardiner, Drax Group CEO, commented, “Unabated coal does not have a long-term role to play in our low carbon future. The government made it very clear earlier this year that it wants the UK’s
power sector to be coal free in 2025—and we will achieve that, and possibly even beat it. We’re exploring options for repowering our remaining coal units to use sustainable biomass and gas which we believe could help us to become coal free even earlier than the 2025 deadline.” In the UK there has already been a dramatic fall in power generation from coal—an 84% reduction in the last five years.
Drax CEO Points To Electric Revolution Drax Group CEO Will Gardiner said the country stands on the precipice of an electric revolution in a speech to the British Chamber of Commerce. Gardiner, who was CFO at Drax for two years before becoming CEO at the start of this year, re-
Drax Group CEO Gardiner
viewed the company’s past and provided insight as to its future. He noted that almost 50 years ago Drax began generating electricity from its power station in Selby, Yorkshire and that for three decades the company continued to burn coal to power the country’s demand for electricity. But he said that as the world welcomed in the new millennium, “simmering and justifiable disquiet” about the impact of fossil fuels on the ➤ 32
June 2018 / Wood Bioenergy
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â– biomass supplier
Gainesville Plant Revival:
Columbia Timber Steps Up By Jay Donnell GAINESVILLE, Fla. ast November, seeking to gain new momentum (financial and operational), Gainesville Regional Utilities (GRU), owned by the city of Gainesville, purchased the former Gainesville Renewable Energy Center and its 102.5 MW biomass power facility. The acquisition topped off nearly 10 years of a roller coaster ride, ever since the recession when the city and utility became serious about biomass power as an option. Biomass would bring much needed diversity to the GRU power generation portfolio. Construction on GREC began in June 2011 and was completed in October 2013. The $500 million facility soon began commercial operation with the intention to utilize 1 million tons of woody biomass annually. But the plant, which was already under local scrutiny because of the power purchase agreement, began encoun-
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tering problems ranging from noise complaints to a lawsuit filed by one of its primary biomass suppliers over feedstock requirements. It was also difficult for GRU to manage the plant, from the outside looking in, as part of its energy portfolio. The city tried to buy the plant in 2013, but was turned down by the ownership partnership of Energy Management, Inc., BayCorp Holdings, Starwood Energy and Fagen Power, LLC. In August 2017 the Gainesville City Commission voted in favor of a $750 million purchase of the biomass plant and the deal was struck. Immediately, GRU changed the name of the operation from GREC to Deerhaven Renewable Generating Station. This was good news for companies such as Gainesville-based Columbia Timber Company, which is now one of the largest suppliers of biomass to the plant, today producing nearly 300,000 tons of fuel chips per year.
Wood Bioenergy / June 2018
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biomass supplier ■
Harrison Logging is a large operation based in Williston, Fla.
Columbia Timber purchased its first Bandit chipper not long after GREC started up and now owns three. While biomass production is just one part of Columbia Timber’s business, it has been a nice addition to its business portfolio.
Background
Columbia Timber bought its third Bandit chipper earlier this year.
Columbia Timber Company’s principal owners, Jib Davidson and Norman McRae, formed the company in 1989 when Georgia-Pacific opened the door for them to form a timber dealership. They needed a name quick so they could incorporate and jump on the opportunity. At the time, the space shuttle Columbia was gearing up to launch and the company was based in Columbia County, Fla., so they decided they would use the name Columbia Timber Company temporarily until they could come up with a real name and change it down the road. This temporary name has stuck for almost 30 years. Davidson graduated from the University of Florida’s School of Forest Resources and Conservation with a major in Forest Management in 1978. He worked in
timber procurement for Georgia-Pacific, then transferred to land management where he managed 118,000 acres of timberland for GP. Davidson wanted to better understand timberland as an investment. He left GP and approached the University of Florida’s MBA program where he said he was told timberland is not an investment and he needed to return to the school of forestry if he wanted to grow trees. Davidson’s desire to better understand how to apply finance to timber management led him to earn a second degree in 1983, this one in Business Administration with a major in Finance and a minor in Real Estate. In 1984 Davidson formed Florida Forestry Services Company along with his former UF forestry professor Don Post, specializing in a range of timberland man-
June 2018 / Wood Bioenergy
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Left to right, standing, Columbia's Ryan Krammes, Jib Davidson, Travis Davidson and Norman McRae, and Tripp Harrison of Harrison Logging, along with Harrison Logging employees.
agement and investment services, working with private landowners and industrial owners. McRae took a similar path, graduating from the University of Florida in 1982 with a Bachelor of Science in Forest Resources and Conservation. He began his forestry career working for the Florida Division of Forestry as a forest ranger, then he was promoted to a county forester and finally to Forest Area Supervisor for two counties within his district. McRae then served as the Florida branch manager for F&W Forestry Services before linking up with Davidson at Florida Forestry Services in 1987. Davidson and McRae’s relationship led to the formation of Timber Company in 1989. Columbia Timber Company is a timber dealer and land management company utilizing professional foresters and state-of-the-art computerized technology. Davidson, who is a Certified Forester and the timber tax expert, developed a Timber Investment Program that integrates established financial analysis techniques with traditional forest management techniques. “It allows bankers and financial analysists to understand how the forestry side works,” says Davidson, who today is Chair of the Florida Society of American Foresters. The business integrates timber thinnings, harvesting, reforestation and annual costs with state-ofthe-art land management techniques. Although Columbia Timber owns some of its own harvesting equipment, it relies upon contract loggers for most of their operations. McRae is the operations
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forester who manages both the harvesting operations and the reforestation activities. At one point the company had six logging crews working for it, but wet weather, followed by fires and the recession in the late 1990s, caused them to pull back some. They slowly rebuilt and when GREC came into the picture they jumped at the opportunity to start producing fuel chips for the new biomass plant.
Biomass Development The opportunity came about because they had a relationship with the forester who was putting together the feedstock study for GREC and he asked Davidson and McRae, who had also done feedstock studies, if they wanted to get involved. They knew the north Florida and south Georgia terrain and markets and felt that chipping would be a good fit. “They needed fuel so we were there to help them,” Davidson recalls of the power facility. “We bought our first chipper, a Bandit 2550, and some old peanut vans because we couldn’t afford the nicer vans.” Things started out slowly with just the one Bandit chipper. A year later Columbia Timber purchased a Bandit 3590 and bought some chip vans. They did some research with the new vans and found that under optimal conditions a van could be filled in nine minutes. They figured that at an average of 15 minutes per load, they could increase their production to 20 plus
Wood Bioenergy / June 2018
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biomass supplier ■
Deerhaven Renewable Generating Station is running wide open in Gainesville.
loads per day. Their production took off. Earlier this year Columbia Timber purchased a third chipper, another Bandit 3590. Davidson has a long-standing relationship with Bill Harrison of Harrison Logging dating back to their days at Georgia-Pacific. Bill and his son, Tripp, took a hard look at operating a chipper, since they had never done so. “It was something new and we were willing to try it,” Tripp says. “We love the way it’s working out.” Today Columbia Timber provides the chippers and mostly Peerless brand vans and the Harrison Logging/Columbia Timber team produces about 200 loads of chips per week. Columbia Timber uses contract truckers to move the material to the power plant. On certain jobs there will be two chippers running simultaneously and there have even been times when all three chippers have run on one job. McRae serves as the operations forester and makes sure the landowners stay informed about what the chipping crews are doing. He also helps Harrison Logging move from tract to tract and watches over them. Harrison Logging services the chippers, and what they can’t do is sent to Quality Equipment of Lake City which provides additional chipper expertise. Randy McKenzie is the owner of Quality Equipment. “Randy does an excellent job and we’re very happy with him,” Davidson says. Brian Condon is the procurement manager for BioResource Management, which manages biomass supply for Deerhaven Renewable Generating Station and has a strong relationship with Columbia Timber Company. “They’ve been here ever since the beginning and they were one of the first ones to get in line to supply this place,” Condon says. “We certainly appreciate that they’ve been reliable for us over the years and they’ve hung in there through thick and thin.” Columbia Timber’s in-woods jobs will also harvest roundwood, which is a great plus, especially with a landowner whose property is thick with understory and oak thickets. But 80% of the jobs are strictly chipping
and Columbia Timber works with landowners of all sizes to help them achieve their goals and objectives for their property.
Company Wide Davidson’s son, Travis, serves as the marketing director, land specialist and oversees the real estate division for the business. He came to work for Columbia Timber not long after graduating from the University of North Florida with a degree in communications. To keep the tracts coming as well as build landowner relationships, Travis assists McRae with land management objectives, feedstock studies and helps generate marketing buzz for the industry. “We basically do everything we can to promote proper land management and helping landowners with their next steps,” Travis says. Christy Morris is the office manager and Mike Court works mostly on the real estate side of the business, which is Columbia Timber Company’s newest venture. They are now an affiliate of United Country, which is the nation’s largest and oldest real estate and auction firm. “We’re moving in a number of different directions including land acquisition and industrial site acquisition,” Davidson says. “If somebody needs an industrial site or is looking for something that has railroad capacity and power capacity we can find them that property.” While Columbia Timber offers a wide variety of services, the addition of the biomass operation certainly sets them apart. Now that the city of Gainesville owns Deerhaven it appears that the plant is running smoothly and Davidson likes the way things have been going with Gainesville Regional Utilities in charge. “When the city of Gainesville was having contract disputes with GREC they were on again off again and now that’s finished,” Davidson says. “They’re back up to full capacity now and the city of Gainesville is very enthusiastic and very committed to making this biomass plant work.”
June 2018 / Wood Bioenergy
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Wood Bio Conference:
The Big Dogs Were There ATLANTA, Ga. wo-hundred twenty-five industry personnel, including executives from the leading industrial wood pellet producers in the world, along with 60 exhibitor companies participated in the fifth Wood Bioenergy Conference & Expo held April 11-12 at the Omni Hotel at CNN Center in Atlanta, Georgia, USA. The event was hosted by Wood Bioenergy magazine and Georgia Research Institute. It included 25 presentations on a range of topics and included speakers from industrial wood pellet producers Enviva, Drax, Pinnacle Renewable Energy, Highland Pellets and Fram Renewable Fuels. All of them painted a picture moving forward of increased worldwide demand for industrial wood pellets. Endorsing that projection was leading wood energy consultant William Strauss of FutureMetrics, who noted that almost exactly 20 years to the day of the conference, in April 1998, the first oceanic bulk shipment of wood pellets from North America arrived at the port of Helsingborg, Sweden. Strauss—noting that the two major markets for pellets are industrial pellets as a substitute for coal in large utility power stations, and premium heating pellets used
in pellet stoves and central heating systems—said global wood pellet demand in 2017 was nearly 16.9 million metric tons for industrial pellets and 13.9 million metric tons for premium heating pellets. Those numbers, Strauss said citing various forecasts and analyses, could escalate to 44.8 million metric tons of industrial pellets and 24.4 million of heating pellets by 2025. Most of that new demand is expected to come from Japan and South Korea, while in the United Kingdom and Europe demand will flatten somewhat. He said the total “new” demand in Europe and England will be 5.85 million tonnes per year, with demand settling at about 19-20 million tonnes per year by 2022. In the UK, the EPH Lynemouth and MGT Teeside biomass power plant projects are either in construction or commissioning. Lynemouth will bring 1.54 million tonnes and MGT Teesside another 1.16 million tonnes. Also, Drax plans to convert its fourth unit from coal to pellets at its Selby power plant, bringing in another 625,000 tonnes of pellets per year. Meanwhile co-firing (coal and wood) projects in the Netherlands will add 2.53 million tonnes, with much of that at the RWE Essent and Uniper projects. Strauss reported that in 2017 North America supplied
Sixty exhibitor companies participated.
Pellet production was on everybody’s mind.
T
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81% of the UK demand, with the U.S. will run eight production plants once the at 62.4% and Canada at 18.4% comHamlet, NC facility comes on line this bining for more than 5.5 million year, pushing Enviva toward 4 million tonnes. U.S. producers exported nearly tonnes of production annually, comple5 million tonnes worldwide in 2017. menting the company’s four terminal asThe growth in industrial wood pellet sets at four ports along the East Coast. demand will come from Japan and The company has also announced intenKorea, Strauss said, adding that the tions to develop additional plants in the U.S. has not been a significant particiSoutheast. pant in the NE Asian markets, but that’s Meth noted that while the current expected to change. Total potential deconventional wisdom is that Europe is mand in Japan could exceed 12 million slowing its biomass utilization growth tonnes per year by 2025, while South and Japan and Korea are the future hot Korea could demand 9 million tonnes. markets, “We have more optimism He said biomass demand in Japan is Strauss: Here comes Asia. about Europe than others, but you need driven by a Feed in Tariff support patience,” he said, adding that in 2017 scheme for renewable energy, coal for the first time, renewable energy thermal plant efficiency standards and sources there exceeded coal in power carbon emission targets. There is more production. uncertainty with regard to South Korea Europe appears to be implementing demand, given that the current modus more demanding greenhouse gas emisoperandi there is short-term supply sion targets and renewable energy tarcontracts, whereas producers need gets, which unlikely will be met long-term agreements to support addiwithout a big contribution from biotional production capacity. mass, Meth said. He added that while Strauss also addressed the possible there will still be a role for biomass influx of black pellets, either steam exelectricity, growth in electricity-only plosion or torrefied. He cited numerous biomass power plants will slow, and advantages: pellets don’t disintegrate the emphasis will tilt to more efficient when they get wet; higher volumetric CHP and district heating. and gravimetric energy density; signifiHe also noted that Germany appears cantly less dust and fines when handled; to be getting serious about reducing its lower power requirements for pulveriz- Meth: Europe has more to give. coal power production, announcing it ing at a coal power station. He said there will pursue a policy to reduce coalis technology that has overcome the technical shortcomfired generation to reach the country’s 2030 carbon ings that have prevented the production of cost competiemissions target. At the same time, other European tive steam explosion pellets. countries are continuing with GHG emissions reducStrauss said the power grid needs steady, reliable tions programs that provide biomass power producers low-cost baseload carbon power, as opposed to the powith opportunities. Another big factor for EU’s renewtentially dramatic fluctuations in wind and solar renewable power industry, he said, was lack of natural gas as able energy. a coal alternative outside of Russian supplies. He said the net carbon added to the atmosphere from Overall, Meth cited a Hawkins Wright forecast that the combustion of wood pellets is zero, and that the European industrial wood pellet demand is expected to foundation for zero carbon emissions is the sustainabilgrow to 19 million tonnes by 2021, a 14% annual ity of the forest resources. growth rate. “As long as the growth rate equals or exceeds the harLooking further ahead to 2027 when several key vest rate, the net stock of carbon held in the forest landEU subsidy programs are scheduled to expire, Meth scape is constant or is increasing and the atmosphere sees presented several possible scenarios of what may hapno new net carbon dioxide,” Strauss said. pen then: Governments facing tightening emissions targets may extend supports past 2027; generators will be betEnviva’s Meth Upbeat ter able to absorb loss of subsidies since they will have Thomas Meth, co-founder and executive vice president written down investments in plants, capacity and supply of sales and marketing for Enviva, told of the company’s chains; and the pellet industry may see some shift in history, and how it was decided early on that they needed markets to meet a growing demand for heating fuel. to control their own raw material supply. This is one of Meanwhile, Meth concurred with many analysts that the reasons Enviva has developed into the largest indusAsia, mainly Japan and South Korea, provides the most trial wood pellet producer in the world, he said. Enviva potential for near-term renewable energy growth and
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biomass power production. Both Japan Peberdy On Sustainability and South Korea need to reduce their reliance on fossil fuels if they are to Richard Peberdy, vice president susmeet the GHG emission targets agreed tainability with Drax, reviewed the to in the Paris conference, he said. evolvement of Drax Biomass, includMeth noted that Enviva has opened ing most recently the startup of its a Japanese office, delivered its first LaSalle Bioenergy wood pellet plant in shipment to Japan (Hitachinaka, Urania, La., which gives Drax 1.5 milIbaraki) on March 30 and Enviva has lion metric tons of production capacity entered into a contract to supply pelfrom its three plants in the Southeast, a lets to a new power plant in Japan substantial percentage of the 2 million through Marubeni Corp. metric tons shipped annually from its Meth also cited Japan’s Feed-In-Tarport in Baton Rouge. iff that provides support to biomass Peberdy addressed in detail the four power generators, a renewable energy key components to an effective sussurcharge and a target to reduce C02 tainability program. First on his list per kilowatt hour by 35% by 2030. He Peberdy: Openness and transparency was responsible feedstock sourcing added that the Japanese government and utilization. He emphasized the imtarget of 6 to 7.5 GWs of biomassportance of maintaining sourcing stanfired capacity by 2030 equals demand dards during market volatility and of for 15 to 20 million tonnes annually of ongoing supplier training and complibiomass. ance monitoring. Second was contribution to healthy Challenges for the development of and productive forest stock and the Japanese market, according to demonstrating commitment through inMeth, include higher shipping costs, competition from lower-cost suppliers dustry certifications, audit programs in SE Asia, little track record, a curand landowner outreach. “The benefits rently less-than-robust port infrastrucof forest management aren’t obvious to people,” he said. ture for receiving, tightness of boiler Third was to fully account for supand EPC availability and cultural differences. ply-chain greenhouse gas emissions in He said the keys to success in Japan the biomass lifecycle, including sourcing, manufacturing and transportation. will be trust in contractual relationships, fair competition, additional port Fourth was to establish a social liinfrastructure, and strong counterparty Arnold: Still learning cense to operate, through focus on reputations to drive credit. local economic development as a core In South Korea, an expanded RPS component of the Drax mission and to (Renewable Portfolio Standard) and efforts to reduce aggressively pursue a reputation for openness and carbon emissions are adding to increased demand for transparency. Challenges persist, Peberdy said, pointsustainable energy production. Several major biomassing out that the pellet industry is routinely targeted fueled projects are expected to be operational in the with false narratives and intentional misrepresentation country by 2020, Meth said, adding that the combinaof science; however, in response, biomass sustainability is complicated and a difficult, long story to tell tion should drive demand for wood fuel pellets, and concisely and accurately. consequently an excessive demand would cause a shift from short-term tender to long-term contracting. But Peberdy said it’s imperative that the industry efMeth said a 3 million metric ton market in Korea is fectively communicate its role in sustaining forests and expected to grow to 8 million tonnes annually. supporting rural economies; and should even engage Industrial wood pellet demand from Europe, the UK, the environmental community through collaboration. It’s been approximately 10 years since Fram started Korea, Japan and Canada could average 2.65 million up the first industrial wood pellet production plant in tonnes annually from 2010 to 2025, Meth said. Pellet producers in the Southeast U.S., most espethe U.S. Southeast, at Baxley, Ga., known as Appling cially Enviva, are in good position to meet growing County Pellets. The company operates three plants international demand thanks to stable wood costs, the today, including its latest, Hazlehurst Wood Pellets in decline of pulp and paper fiber demand and high Hazlehurst, Ga. quality port infrastructure, Meth said. Citing the pelHarold Arnold, president of Fram Renewable Fuels, let industry’s sustainability, he noted a 24% net voladdressed, humorously at times, what they’ve learned ume of wood fiber growth from 2000-2015 in in 10 years and what anybody getting into wood pellet production should be aware of. Quoting Michelangelo Enviva’s procurement areas.
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when he was 87, McCurdy said he’s Arnold said, “I am excited about the still learning.” future and he’s Arnold said the seeing more than experience of startjust the EU driving ing and running a the industry. “The wood pellet operamore countries you tion at times is have involved, the much like a confuseasier it is to get ing crossroads sign new ones inand always like a volved,” McCurdy roller coaster ride. said. “Plan for chalMcCurdy cited a lenges, they will forecast that puts arise,” Arnold said. global wood pellet He pointed to chal- McCurdy: Pinnacle’s pursuit of safety has improved overall operations. demand at 48.2 lenges with raw million tonnes in material such as scattered supply, dry storage, particle 2021, up from 31.1 million in 2017. Industrial pellets size, drying requirements, material blending of various could account for 29 million in 2021, including nearly species; dust and safety issues; trucking and rail trans10 million in Asia; heating pellets account for 19.2 milportation logistics; loading of vessels, ocean freight and lion, two-thirds of it in Europe. trade routes. “Beware of pirates.” Giving a presentation on the state of the wood-based He also said to be flexible enough to change end energy sector in North America, Richard Vlosky, direcmarkets from industrial to residential and back again if tor of the Louisiana Forest Products Development Cennecessary. ter, noted that in North America wood is the most Arnold said the industrial market is characterized by commonly used fuel for biomass heat and power. About government subsidies, diverse geographics, very large 84% of the wood waste fuel utilized in the U.S. is conbuyers, heavy competition; while the residential market sumed by industry, commercial businesses and electric is fickle, seasonal and unforgiving. power producers—and most of that is through cogen faHis numbers from Hawkins Wright showed industrial cilities at forest products plants. and heat global pellet annual demand increasing from Overall, biomass accounts for 2% of electrical genera31.1 million tonnes in 2017 to 48.1 million tonnes in tion by fuel type in Canada, he said. In the U.S., renew2021 with Asia accounting for 7 million additional able energy accounts for 10% of energy consumption, tonnes of annual demand by 2021. with biomass accounting for almost half (46%). He said Japan will have added 5 million tonnes of deVlosky showed how renewable energy policy in the mand annually by 2025 with South Korea approaching U.S. can be looked at from the “supply” and “de3 million tonnes. mand” side: Arnold noted that the future could be impacted by Drivers of renewable energy supplies include federal various economic and supply factors, such as the growand state mandates, incentives and subsidies, plus proing percentage of Europe gas demand supplied by Rusduction and investment credits, Vlosky said. The federal sia (already at 30% and more pipeline coming). Agriculture, Defense and Energy agencies are also big Looking inward, Rob McCurdy, CEO of Pinnacle supporters of next generation biofuel development and Renewable Energy, showed the results of “taking on other bio-based products, he added. safety as a business core,” which has improved PinnaOverall federal energy subsidies are weighted toward cle’s work force and overall plant performance. wind (33%) and solar (23%), with low-income energy Pinnacle has worked to grow an “owning safety” proassistance taking up another 24%. Meanwhile biomass gram at its facilities since 2014, and the effort has (3%) and biofuels (1%) make up just 4% of federal enshown improvements in employee retention rates, reergy subsidies, Vlosky noted. flected in employee surveys on the workplace and also On the demand side are EU mandates, incentives, how employees are now some of the company’s biggest subsidies and other policies, Vlosky said, including advocates, McCurdy said. “As we improved safety, we overall climate change policies to decrease carbon became more desirable as an employer.” emissions and a commitment to cut C02 emissions by Quality, production and efficiency are all on the in40% by 2030. crease along with the emphasis on safety, McCurdy Other EU countries are moving to restrict “fracking” noted. “Improved ownership and attention to detail has which hampers natural gas production, and Germany is resulted in higher quality pellets, improved uptime at seeking to phase out nuclear energy, he added. Both deour facilities and improved throughput,” he said. velopments add to long-term biomass growth potential. Commenting on markets and future growth potential, Vlosky also noted that EU renewable power genera-
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tion was more than all combined non-gas and inspired by this industry than ever.” fossil fuel power generation in 2017. He said it has been a challenging jourGermany, the UK and Italy were the ney, but economic development and susEU’s top three consumers of biomass tainable fuel make a great story. “We power. need to tell that story aggressively,” he Vlosky also pointed out that an addisaid. “I challenge you all to become bettional key to EU renewable energy growth ter story tellers.” is public attitude about clean energy: AcReilley said National Public Radio did cording to 2017 EU surveys, 92% see clia piece on Highland and the pellet indusmate change as a serious problem; 79% try. Reilley said it was fair, but it was a believe fighting climate change can boost challenging undertaking. “We need to put the economy and create jobs; and 79% greater emphasis on cultivating our own want more public support to transition to story.” cleaner energies. Asked if Highland Pellets is consider“The EU is mixed—some people are ing other sites for new wood pellet plants, Reilley: Impressed and inspired doing more biomass, some doing less— Reilley said they have 300 acres in hand but it’s very green overall,” Vlosky said. at Stephens, Ark., about 100 miles south“People there will pay a premium for west of the current plant, and also conclean, renewable energy.” tinue to look at other sites. Reilley didn’t Citing world pellet trade flows, commit that Highland was definitely Vlosky noted that North America supbuilding a plant in Stephens, but said it plies the bulk of pellets to the EU (apdepends on developments with off-take proaching 6 million tonnes). The UK is markets. the largest Euro consumer of pellet proAndrew Johnson, vice president of duction, estimated at 7.8 million tonnes dryer island manufacturer TSI Inc., adin 2017, followed by Italy with 3.4 mildressed the challenges and opportunities lion tonnes, Denmark 2.3 million and of the industrial wood pellet industry. He Germany 2.2 million. said challenges stem from the relative Looking at total North American pronewness of the industry, though much of duction capacity including projects the technology is a newer version of older under construction as of early 2017, particleboard technology. He said the inJohnson: A learning curve U.S. pellet capacity is 15.9 million dustry has attracted engineers from the tonnes, and Canada has 6.1 million pulp & paper and power industries, but tonnes, he reported. not so much from the engineered wood products indusIn the U.S., the South is “where the action is” when it try, such as particleboard. This has created a “new comes to pellets, Vlosky said. He added that more than learning curve on an old topic.” He referred to subtle 75% of U.S. wood pellet production capacity is in the differences such as drying southern yellow pine to 10% Southeast U.S., and 98% of wood pellet exports ship moisture content target instead of 2% as with particlefrom Southeastern U.S. ports. board. Vlosky added that the new wood pellet industry in “With pellet (wood) you stop it half way through the the U.S. South has brought in 22.6 million green tons, curve,” Johnson said. “It’s a lot more difficult to hit the somewhat offsetting a loss of 30 million green tons due correct moisture.” to wood products industry mill closures (including pulp He said the search for optimum emission control & paper) since 1990. goes on. “Wood as a biomass input for energy, particularly As to managing the capital cost of pellet plants, Johnpellets, is on an upward trajectory,” Vlosky said. “The son noted that as the economy gets busy the fabrication long-term view is also bright if mandates and policy costs soar; real or imagined trade wars drive up the cost support remain in place.” of material and components; customized designs for plants always cost more. Some of this may give way to more standardized equipment designs and simplified Generating Support plant design and control. Thomas Reilley, founder and chairman of Highland Looking at markets, Johnson expects more production Pellets, reviewed his career in financial investment becapacity to be built in North America to meet increased fore co-founding Highland Pellets, which started up an demand from Northern EU countries. He said North industrial wood pellet plant in Pine Bluff, Ark. in 2016. America has an opportunity to supply some of Japan’s an“I consider myself a relative newcomer to the industicipated boom in industrial wood pellet demand. try,” Reilley said. “I got into it because I desired to do Johnson said China has a projection plan for a market something more important. Today I’m more impressed of 40 million tonnes of pellets, but said it bans the im-
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ports of white pellets, while allowing torrefied pellets. Potential markets? One is in our own backyard, Johnson said, referring to North America. He said Russia has the largest forest resource but lacks the infrastructure to fully exploit it. Brazil has all the natural resources to be a major player but is hamstrung by onerous bureaucracies and interstate tax burdens. And what about Africa? Johnson asked, leaving it at that. Johnson also addressed the industry’s Jenkins, Dale and Lang addressed the state of Southern forests. image problem. “We are being pilloried by an unholy alliance of environmental lobbyists and the fossil fuel industry,” he said. “‘Scientific’ reports that have a predetermined agenda are recirculated and rehashed ad nauseum by supposedly respectable news outlets.” Yet he said it is industry that has numerous positive points to take to the public, such as the increasing biomass in the forests, thus protecting not degrading the carbon sink while sustaining a recreational and wildlife haven. “The alternative is more fossil fuel, nuclear or variable power generation supported by battery technology, which is probably not so green,” Johnson said. Johnson said the industry should generate educational material, engage the news media Astec’s impressive model was front and center. with real data and even reach out to environmental organizations. “We should do more than we allows Enviva’s procurement and sustainability teams have to tell a positive story,” Johnson said. to take a given tract and make individualized decisions based on what’s best for the land. Enviva has refined this process over the last few years with input from not Where The Forest Stands only the Enviva staff but also solicited academic and The subject of sustainability was prevalent throughout forest conservation experts. This leads to the final pillar the conference but took center stage in the session, of Enviva’s approach, transparency, and specifically its “Southern U.S. Forests & Sustainability: The Real Impact Track and Trace supply chain monitoring system, in Of The New Industrial Wood Pellet Industry,” featuring which Enviva tracks every ton of primary wood back to presenters Jennifer Jenkins with Enviva, Virginia Dale its origin in the forest or sawmill. Starting in January with the University of Tennessee and Amanda Hamsley 2017, Enviva launched a website, updated quarterly, to Lang with Forisk. complement this initiative. Jenkins, vice president and chief sustainability offiBy utilizing this system Enviva is able to give anycer at Enviva, provided an overview of the U.S. Southone with access to the internet 100% visibility into Eneast forest landscape, which is roughly 99 million viva’s biomass supply and sourcing practices. Included hectares, accounting for 45% of the total land area in in the data on a given tract is the county, landowner the region. It contains 11.4 billion metric tons of growtype, forest type, harvest type, age class, harvest ing stock inventory and 86% of it is privately owned. acreage, and percentage of the total volume to Enviva’s Jenkins pointed to a more than 100% increase in growfacilities. By pulling this data, Enviva is able to ensure ing stock inventory in the past 50 plus years, and a all feedstock aligns with its forest stewardship values. more than 4 million acre increase in forest areas. Speaking of feedstock, Jenkins said Enviva’s Jenkins addressed Enviva’s three pillars of sustainsource of wood includes 39% from mixed pine and ability: certification, care for the forest landscape and hardwood forests, 35% southern yellow pine forests, transparency. Enviva’s manufacturing facilities hold 5% upland hardwood forests, 2% bottomland hardmultiple certifications through industry forest and biowood forests and 20% sawdust/shavings/residuals mass sustainability programs. from wood manufacturing. She detailed a science-based sourcing framework that “The most recent data confirms that Enviva’s
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sourcing practices are encouraging susdeclining numbers of standing trees needs tainable forest management, with to be done. forests continuing to grow faster than Dale concluded her presentation by they are harvested,” she said. saying, “There is no one key for effective Dovetailing nicely with Jenkins, Virtimber management, but having a bioenginia Dale with the University of Tenergy market can help. As demand for nessee at Knoxville gave an in-depth look wood increases, net forest area typically at research she and others at the Center expands.” for BioEnergy Sustainability at Oak Rounding out the session, Amanda Ridge National Laboratory (ORNL) have Hamsley Lang, COO & vice president of been conducting as part of the effects Client Services at Forisk Consulting, ofwood pellet production has on forest confered her take on wood use and supply ditions in the Southeastern U.S. Crosby: Introducing NanoMass chain implications related to pellet indusThe research is centered on three key try in the South. Forisk is projecting pelquestions: How does the Southeastern U.S. pellet prolet capacity in the U.S. South to steadily increase to duction for export to EU differ from a business-as-usual 2020 before leveling off at more than 10 million tonnes. case of no pellet production? Are there significant Lang also presented Forisk’s projections of pulpwood changes to key environmental indicators? How can forand chip demand by the pulp & paper, OSB and bioenest conditions be monitored and good practices impleergy markets. Combined, they’ve shown a gradual uptick mented? since 2011 and will start running fairly level as of about In part, the questions led to other questions, Dale 2020 at 225 million green tons. She noted that mill said, such as, Will the pellet industry alter the amount residues have surpassed pulpwood/chips in annual wood of land staying in the forest? Under what conditions pellet feedstock. does the pellet industry complement or compete with pulpwood use? In-Woods Findings both surprised Dale and proved what those Clay Crosby, CEO of Twin Rivers Land & Timber in working in the industrial wood pellet industry know to Georgia, spoke about his company’s evolvement into a be true. In 2014, for example, the pellet industry constimajor producer and supplier of wood chips and biotuted less than 1% of total U.S. forest products by mass, both in-woods and mill residuals. In 2016 the weight—however, that number has grown significantly company secured a supply agreement with the new over the last four years and continues to climb. HistoriProcter & Gamble 50 MW biomass power plant in Alcally, Dale asserted, the effects of woody biomass “debany, Ga. that generates electricity for the P&G plant forestation” are not on the shoulders of pellet and for Georgia Power. producers. Past agriculture cleared much of the SouthCrosby said his company carries two to three million eastern forests (only 3% of original longleaf pine tons of inventory ahead of current market need. forests remain) and the remaining old-growth forests He also announced his company’s current collaboration are largely protected by the government. Currently, in the manufacture of NanoMass biomass dust, which is high-value forest products—not pellets—drive the sterilized in a dry powder to make it suitable for co-firing dominant factor in forest management decisions. in coal power plants. Crosby referred to Malaysian-based As to the overall status of forests in the U.S., Dale K. Marcus Chee as the founder and CEO of NanoMass pointed to 1,500 state government entities who impleCorp., the developer of the technology. ment forest policies and programs, including the USDA’s Jerry Morey, president of Bandit Industries, spoke on Forest Inventory & Analysis, a long-term survey with inhis company’s chipping and grinding lines, including formation on various forest types across the country and new developments for land clearing applications. statistics relating to removals by harvest, carbon accumuMorey recalled speaking in Atlanta about biomass lation, tree size, growth health and mortality. energy in the mid 1970s, when biomass was booming Dale’s research went a step further, focusing on the and oil and gas prices had escalated. Today, Morey said, two fuel sheds that supply over half of the total pellets the biomass market for power generation in the U.S. is exported to Europe: Norfolk, Va. and Savannah, Ga. at a low point. Starting in 2009 and continuing to present day, volume, Morey expressed contempt for how U.S. energy polarea, number of dead trees, and carbon were measured icy is focused on wind and solar, especially when “wind in both natural stands and plantations. Findings across doesn’t make any sense,” he said, adding, “Policy the board showed that as the years progressed, both fuel should be more focused on wood. Maybe we need to sheds saw increases in timberland volume, timberland get Donald Trump involved.” area and million of metric tonnes of carbon. Pine planJeremy Sapp and Jerry Sapp, principals in Sapp’s Land tations saw a significantly smaller number of standing & Excavating, discussed their company’s diversification dead trees as well. In conclusion, Dale believes that furfrom a traditional logging operation into a major ther study of the effects on biodiversity with regard to ➤ 36
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Bandit Industries Continues To Refine Machines Bandit Industries’ lineup of whole tree chippers has earned their reputation among industry professionals by standing up to the toughest jobs, producing high quality chips, and helping producers build their businesses. But Bandit continues to refine its lineup of whole tree chippers, adding options and features to make these machines more productive for the men and women who rely on them to get their jobs done. That’s why in 2018, we’ve introduced new options to our largest drum-style whole tree chippers—the 24 in. capacity Model 3090 and the 30 in. ca- Bandit Industries’ 3090 whole tree chipper with 800 HP engine. pacity Model 3590. Bandit’s Model 3090 can now be outfitted with a powerful Caterpillar C27, 800 HP engine. This engine powers Bandit’s legendary whole tree chipper drums, which produce a higher quality chip, and throws those chips harder, fully loading chip trailers without the need of an auxiliary blower, which robs horsepower and increases fuel consumption. Bandit’s Model 3590 rides on a new tandem axle configuration that slims down the width of the machine, making it easier to haul down the road and easier to position in the woods. The Model 3590 has a new track option configuration, giving one of Bandit’s most popular whole tree chippers goanywhere versatility. The Caterpillar 325EL steel track undercarriage is the same tracks we put under our largest horizontal grinders. The 3590 track can be outfitted with a powerful Caterpillar C27, 800 HP diesel engine. The new Fish Mouth infeed is standard on all Bandit whole tree chippers. This unique design helps funnel whole trees toward the feedwheels, making it easier to feed larger trees. Visit banditchippers.com.
Morbark Grinder Packed With Operator-Friendly Features A revolutionary new horizontal grinder, the Morbark 3400X Wood Hog is powerful, productive and versatile; this machine is sure to turn heads! “Morbark listened closely to customer feedback while developing the design for the 3400XT,” says Michael Stanton, Morbark Director of Industrial Sales. “The result is that we were able to provide the features our customers want and the versatility they need, while staying true to our proven technology.” One of the most important features of the 3400XT is its standard width of 8 ft. 6 in. (2.59 m), making it within the Morbark 3400XT Wood Hog horizontal grinder
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legal transport width in any country, no matter what engine is used. This model accommodates engines from 520 to 800 HP (388 to 596 kW), so it is ideal for a broad range of applications in a wide variety of markets worldwide. Like all of Morbark Wood Hog models, the 3400XT also is available with electric power. “The size of the 3400XT allows the same model, using a broad range of engines, to be configured for multiple applications and global markets without additional design considerations,” Stanton says. Customer feedback steered Morbark toward creating more operator-friendly features on the Wood Hog. Key among these are the design of the infeed bed and the maintenance platform. The infeed bed is an additional 24 in. (60.96 cm) longer with sloped sides. This configuration improves operator sight lines for more efficient loading of material. Standard on the 3400XT is a removable infeed chain return floor, which allows excess material to fall away to minimize the wear on the floor, bed chain and inserts, particularly useful in landclearing or other applications with dirty material. When maintenance is required, it’ll be quicker and easier to perform on the extended platform. The area between the hood and the engine has been reconfigured to provide an additional 12 in. (30.48 cm) of working space, for better access to components for general maintenance or to change screens. The 3400X is available tracked (3400XT) or with tires (3400X). Visit morbark.com.
Peterson Offers New Chippers And Grinders Peterson has been very busy continuing the evolution of its industry leading horizontal grinders and chippers for 2018. Peterson horizontal grinders reduce wood, low value logs and other organic materials; the reduced material is used in the compost, mulch and biomass energy markets. Peterson grinders can also reduce certain construction and demolition materials such as asphalt shingles that can be then recycled and used in hot mix asphalt paving. Peterson drum and disc chippers and debarkers are used to produce wood chips Peterson 6310B drum chipper landclears almond orchard. for pulp and paper production as well as biomass energy markets. Many Peterson machines are available in either electric or diesel power depending on the application. For increased mobility at a job site, both tracked and wheeled versions of many of their products are available. New chipper models: l 3310 Drum Chipper: The all-new 3310 drum chipper packs big performance in a small, easy-to-transport package. The unique, transverse layout allows for smaller operation landings, and the rotating spout allows for up to 230 degrees of rotation for easier loading. The 3310B has an optional powered feed deck for smaller stems. l 6310B Drum Chipper: Peterson’s 6310B tracked drum chipper is designed for high-volume biomass operations and a wide variety of feed material, and can process logs up to 36 in. (91cm) in diameter. With 1050 HP of available power, the 6310B is an ultra-productive biomass chipping machine. New horizontal grinder models: l 2700D Horizontal Grinder: Peterson’s all-new 2700D is the smallest and lightest horizontal grinder in Peterson’s product line. With up to 765 HP (570kW), the 2700D packs impressive performance in an easy to transport package. l 5700D Horizontal Grinder: Peterson’s 5700D horizontal grinder is their new wheeled version of their 1050 HP (772 kW) grinder line, which packs the highest power to weight ratio of any Peterson grinder. With a feed opening of 60 x 40 in. (152 x 102 cm) combined with Peterson’s high lift feed roll, the 5700D horizontal grinder can readily reduce a wide range of material including stumps. Visit petersoncorp.com.
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Precision Husky Grinds Way To Worldwide Status Precision Husky builds equipment to work as hard as you do, and for years to come. Our fuel-efficient, low maintenance and low noise chippers and grinders are being used all over the world to manufacture mulch, compost and boiler fuel and to clear and clean jobsites. If you need high-speed productivity and a low cost per ton, you’ve come to the right place. l ProGrind Horizontal Grinders For working with long limbs, our high-speed ProGrind horizontal grinders can’t be topped. We have three models (H-3045, HPrecision Husky WTC 2366 assisted by Precision XL-175 loader. 3060 and H-4060) to choose from, each with a rugged diesel engine and offering you from 520 HP up to 1050 HP. The dual cutting surfaces at various depths eliminate jams. l ProGrind Tub Grinders Precision Husky also offers six popular models of ProGrind tub grinders, each built with ease of operation, cost and – always – your productivity in mind. Feedback on our newest offering, the ProGrind 5200, has been fantastic and, frankly, we weren’t at all surprised. First of all, the PG 5200 contains one of the most aggressive hammermills in the industry. It can cut through mountains of green waste at production rates of over 100 tons-per-hour! l Whole Tree Chippers Precision Husky did not invent the whole tree chipper but we do make the best chipper you can buy. Ask any of the more than 5,000 crews that use them every day and have access to our unbeatable parts inventory and service technicians. The latest generation of Precision-built chippers pushes the envelope of technology to include a 66 in., five-knife option, which allows the chipper disc to operate at a slower rate. This not only saves wear and tear, it produces the most valuable chip quality you can find. Precision Husky is showing the industry just how outstanding one company can be. We work from a 165,000 sq. ft. manufacturing facility in Leeds, Alabama. Our president, Scott Smith, is a second-generation innovator like his father, company founder and CEO Bob Smith. Together they have helped Precision go from a small regional provider to a worldwide leader in timber processing technology. Schedule a demo, a tour of our facility or simply talk shop with one of our team members. Visit precisionhusky.com.
Rotochopper Offers Versatile Grinding-to-Chipping Conversion Rotochopper grinders can undertake the challenging task of grinding logs, whole trees and forestry slash in the woods to produce biomass fuel, landscape mulch and animal bedding. Our high-volume grinders minimize downtime and maximize end product control with exclusive features like our patented replaceable mount rotor, patented screen change system, track and dolly system, patented StopWatch monitoring system and KeyKnife chipper package. Rotochopper’s KeyKnife chipper package enables chipping and grinding with a single machine without sacrificing ease of operation and maintenance. We collaborated with KeyKnife to make it simple for our customers to diversify into chipping markets without a complex conversion kit or a second machine. The KeyKnife chipper package is a bolt-in option that works with the standard patented replaceable mount rotor for the Rotochopper B-66 and FP-66. A single operator can switch from grinder teeth to chipper knives without rod pullers or other specialized tools; no need for a complex conversion kit or a second machine. Our track and dolly system minimizes transportation and handling costs by combining the time-saving benefits
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of crawler tracks with the convenience of tires for highway transport. Crawler tracks reduce the hassle and downtime of forwarding raw material to the grinder and re-positioning trailers. The transport dolly eliminates the need for a lowbed trailer. With this system, a Rotochopper grinder goes from highway transport to worksite navigation and grinding in minutes. Rotochopper designs, builds and supports a complete line of horizontal grinders, wood chip processors, asphalt shingle grinders, and mobile bagging systems from our state-of-the-art manufacturing facility in St. Martin, Minnesota. Rotochopper B66 horizontal grinder emphasizes high volume. Visit rotochopper.com.
Vermeer Grinder Offers Optimized Performance The Vermeer HG6800TX horizontal grinder is engineered to produce large volumes of ground materials. With a 950 HP (708 kW) engine, this 92,000 lb. (41,730.5 kg) class grinder is powerful, compact and maneuverable with 26 in. wide double grouser track pads and travel speeds of 2.8 MPH (4.5 kph). An optional DT6 integrated dolly transport system is available to eliminate the need for trailering the grinder when moving locations. The infeed on the HG6800TX grinder was designed with low sidewalls to help the operator Vermeer HG6800TX horizontal grinder offers quick loading. more easily load material into the machine. This feature allows larger loads to be dropped on the infeed with less interaction and manipulation of the material, so the operator can drop the load and focus on the next one. The Vermeer HG6800TX grinder features the patented Series III duplex hard-faced drum. In addition to providing long-lasting durability, maintenance time is decreased with the ability to remove and flip or replace single hammers, as well as being able to externally balance the drum. The grinder is equipped with Vermeer SmartFeed and the Thrown Object Deflector (TOD) technology. SmartFeed optimizes machine performance and production electronically and allows the operator to focus on loading raw product and move finished product about the jobsite. This function stops and reverses material from feeding into the hammermill when engine rpm’s drop below efficient operating range. Also, Vermeer TOD decreases the quantity and distance of thrown objects, which allows the machine to be operated in a smaller “safe” work zone. The TOD is hinged and can be raised or lowered with the remote control depending upon grinding applications. Remote operation allows the operator to engage tracks for onsite maneuverability and view and change a variety of settings during operation while monitoring various engine parameters from inside the loader cab or in a remote location. An optional Damage Defense system is also offered on the HG6800TX grinder that can help reduce the likelihood of major machine damage caused by certain metal contaminants entering the hammermill. Visit vermeer.com.
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13 ➤ environment gathered momentum and resulted in climate change rising up the political agenda—both in the UK and internationally. “It sounded the death knell for Old King Coal and ushered in a wave of new, low carbon, renewable power generators,” Gardiner said. “Rather than trying to hold back the tide—and with the support of Government— Drax reinvented itself and set about changing the UK’s energy landscape in the process. Out went our dependence on coal and in came biomass—sustainable and renewable wood pellets that emit 80% fewer carbon emissions than its predecessor.” Drax went from being the UK’s largest polluter to the largest single site renewable power generator in the country, he said. “But from supporting a renaissance in the industrial revolution, we now stand on the precipice of a wholly-different revolution: an electric revolution. And, more specifically, a people and business-powered renewable electric revolution.” He pointed to electric vehicles that cruise clean streets without the need for a driver and household appliances that are all connected and communicate with one another; a revolution that sees the electrification of transport and heating; the introduction of artificial intel-
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ligence that allows the entire grid to connect and work in harmony with every one of the billions of devices taking energy from it. “A revolution that will not be driven solely by largescale power generators, but by ‘prosumers’ – individuals, businesses and institutions that not only consume electricity, but produce it too.” Prosumers want a reliable and flexible self-supply of energy—and to call upon a mix of renewable technologies, just as the national system does, Gardiner said, adding, “They want—and will have—the capacity to generate their own energy via a mix of solar, wind and biomass and then, crucially, sell back their excess electricity to an energy supplier.” He said new measures have already been put in place to encourage people to generate their own electricity. These will make it easier for prosumers to generate, store and sell back their power to the grid, which could save consumers up to £40 billion by 2050. Gardiner asked what could this mean for the business of electricity? He pointed to multiple “commercial models” that operate together to facilitate a decentralized, prosumerbased energy system. These would include homes and businesses that wholly own their energy systems, as well as systems owned and operated by third parties, such as aggregators managing energy or solar-rental schemes. Similar schemes are already in place in both the business and consumer retail markets, he said, noting that Opus Energy—a Drax Group company supplying energy to UK businesses—bought almost one terawatt of power from more than 2,000 small renewable generators last year. These businesses use technologies such as solar, onshore wind and hydro. Opus Energy then sells that power onto its predominantly small business customer base. All energy supply should be easy and straightforward—especially renewable energy, Gardiner stated. “So perhaps the biggest barrier to large-scale adoption of prosumerism is technology.” He cited solar as one of the most prominently used renewables by prosumers thanks to the relative affordability of rooftop solar systems. Even home-interior giant IKEA now offers solar panels and battery systems through a partnership with the UK’s largest solar company, Solarcentury. But like wind turbines, Gardiner said, which are a more cost-prohibitive solution, solar is an intermittent energy source, which means domestic users may still need to access the grid to fill gaps in their own generation. That is unless battery technology advances to a point where it can store enough solar- or wind-generated electricity to fully power homes and businesses affordably, all-year round, including in the dark days of midwinter. Along with small-scale generators, large-scale power
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producers have a crucial role to play here, he said. “If we can store renewable electricity from intermittent sources when they are able to generate, it could then be utilized at times when they’re not. “However, the problem is the technology capable of storing electricity at scale doesn’t exist…yet. But the race to develop it is well under way, and several companies
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are working on building ever bigger, more efficient electricity storage methods.” He said Drax is at the front of this race, planning to develop two giant 100 MW batteries at its site in Selby. These batteries will store electricity to enable Drax’s proposed gas-fired power generation to ramp up faster when needed. Together, they would be the largest batteries of their kind anywhere in the world.
But whether it’s batteries or biomass, solar or electricity supply, what all parties need is certainty, he emphasized, including certainty of long-term policy to support economically viable investment decisions. “The certainty Government provided energy suppliers more than a decade ago brought forward unprecedented investment in renewable power generation,” he said.
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“I can reflect proudly on Drax’s transformation. But I hope that my successors will reflect more proudly on the role they played to transform the entire energy sector.”
shavings or residuals from wood products manufacturing. Two percent came from working bottomland hardwood forests, also consisting of undersized or “understory” wood, tops and limbs.
Enviva Releases Procurement Data
Georgia’s Eley Frazer Was Forestry Leader
Enviva, the world’s largest producer of industrial wood pellets, released its latest Track & Trace sourcing data, which shows that Enviva sourced wood from 1,157 working forest harvests in 76 counties and in five Southeastern states over the six-month period ending in December 2017. Approximately 39% of Enviva’s wood came from pine and hardwood mixed forests, 38% from southern yellow pine forests and 3% from upland hardwood forests. Approximately 19% was sawdust,
Eley C. Frazer, III, co-founder of F&W Forestry Services, Albany, Ga., and a well-known and highly respected forestry leader, died on January 29. His health had been in decline for several years. He was 91. A native of Lafayette, Ala., Frazer completed high school and joined the Navy at 17, serving in the Pacific Theater in World War II. While attending the University of Florida, where he earned a degree in forestry, he owned and operated a logging business that he
continued to run for four years after his graduation. He served for three years as manager of Blackwater River State Forest, then worked for five years as assistant unit forester for Georgia lands for St. Joe Paper Co. In 1962 he helped launch F&W Forestry Services, first serving as operating partner. Five years later he became president of the company. In 1988 he became Chairman of the Board. Today F&W is one of the nation’s oldest and largest forest consulting and management firms, operating 15 offices in nine states. Along the way, Frazer served as an officer in numerous professional and business organizations. He testified on forestry issues many times before Congressional committees and became a recognized expert in rural real estate and forest appraisal.
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26 ➤ supplier of microchips to the Enviva (formerly Green Circle) pellet facility in Cottondale, Fla. They run four chipping crews and one roundwood crew, and with 40 employees and 21 trucks deliver 250 loads weekly. They addressed the procurement-supplier relationship and the importance of open and honest communication on matters such as planned maintenance outages at the plant and holiday schedules. The Sapps built their headquarters and shop at the entrance to the pellet plant. “When we built outside the mill, we committed to be there for the long haul,” Jeremy said. Jerry said their employees appreciate such stability, which makes them feel more confident about their jobs. This leads to greater longevity in the employment ranks, adding that it is a time-consuming and expensive exercise to train new employees just to three-quarters proficiency.
Education Factor Looking toward the future and developing younger personnel to find skilled opportunities, the conference included a session that looked at industry’s relationship with academia. According to Dr. Richard Vlosky, Director of the Louisiana Forest Products Development Center, there are two sides to the issue, and both need to do more. “The industry doesn’t do a good job of telegraphing their in-demand jobs, and faculty members who have spent their careers teaching can be a bit insulated,” he noted. As employer requirements change, there needs to be a better way to update academic requirements or emphasis, Vlosky said, adding that information technology has made it easier to communicate and match faculty skills with market demands. Improving materials technology and related new generation technologies like genetics and nanotechnology are bringing new
Vlosky: Knowing what industry needs
capabilities and opportunities, Vlosky said. Areas needing more emphasis in future education efforts include manufacturing and processing systems, material sciences, environmental issues, sustainability, marketing and modification technology. “I believe a forest products education should offer what the industry wants,” and not simply faculty knowledge, Vlosky said. Dr. Brian Via, Regions Bank Professor and Director of the Forest Products Development Center at Auburn University, detailed a new curriculum just beginning at Auburn, “Sustainable Biomaterials and Packaging,” The new major aims to create a multidisciplinary program that incorporates forestry and wildlife, chemical engineering, biosystems engineering, architecture and design and business classes that will give graduates the knowledge to take on new industry challenges. The curriculum follows a supply chain strategy to expose students to all aspects of the forest products industry, beginning with raw material growth and development, harvesting and supply chain management; industry processes and segments such as solid wood, composites, engineered wood products and pulp and paper for packaging; and concluding with marketing and business economics, recycling and sustainability concepts.
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Other Presentations Participating in the Ten Year Report Card session, Eric Estes, project manager with Mid-South Engineering, emphasized that new plants should give more consideration to wood yards, avoiding some of the issues that earlier plants encountered. Estes pointed to five main considerations for effective wood yards: wood receipt; truck dumping and conveying; crane and roundwood storage; log (chipper, hog) line; and chip storage/reclaim. “Plant road design is a critical step in the overall In-woods chipping was a major part of the conference conversation. arrangement,” Estes said. As part of the same session, Bijan Shams, president erator effectiveness; and electrical. of Cogent Industrial Technologies, said new and existJeremiah Redman, senior consultant with Trinity ing plants are calling for greater emphasis on safety, Consultants, addressed today’s EPA and administrative adding that the biggest safety challenge in industrial environmental policy. He said the current intent is to pellets is fire and explosions. turn more authority back to the states. He noted severe Shams said the foremost safety goal is to protect peoplanned budget cuts in EPA programs. ple and assets. He spoke about methods and technoloHowever, Redman added that the Trump administragies for prevention, protection and response, as well as tion will have to work within the confines of the major the recovery plan. statutes, such as the Clean Air Act, and that regulatory He pointed to the main areas to focus on for fire changes takes significant time. He said EPA scientific safety: civil & building; dry material handling; process advisory boards may be more industry-friendly. control; hot oil & hydraulics; equipment reliability; opTyler Player, president of Player Design Inc., shared a
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Player: Shipping technology
Shams: Safety implementation
study of his technology for shipboard heat treating of wood chips for export. The propane-powered system cycles for 30 minutes keeping chips fresh. It include five damper zones, three return air zones, 16 locations at varying depth for temperature readings and and active process optimization. The portable nature of the system can be prepped in as little as 24 hours. Also in the heat energy session, David Digdon, VP business development for Atlantic Combustion Technologies, spoke on improving the operating efficiencies
of industrial biomass-fueled furnaces and boilers, focusing on hard ash deposition and slagging and its alleviation through an ash modifier, a clay-based mineral compound designed to be pneumatically injected directly into the combustion zone in the furnace, and fed on a continuous basis. Digdon noted that in addition to operational improvements, the ash modifier results in improved final product quality, often an overlooked benefit of the technology. Francisco Ripoll, export manager with Sugimat, spoke on thermal oil and steam efficiencies in fluid heaters. He said oil is low pressure and offers high performance at high temperature with modest investment and reduced thickness tubes. He said it offers low probability of leakages, almost non-existent heater maintenance, and longer pump life due to constant lubrication. It also has low risk of explosion. Wood Bioenergy editors Jessica Johnson, Dan Shell, Jay Donnell and Rich Donnell contributed to this article.
The sixth Wood Bioenergy Conference & Expo will be held March 10-11, 2020, again at the Omni Hotel at CNN Center in Atlanta.
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