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â&#x2013; table of contents

www.woodbioenergymag.com

FROM THE EDITORS Burning Issues

PRODUCT NEWS Rotochopper, Morbark Host Demo Days

IN THE NEWS German Pellets Saga Continues

EDITORIAL INDEX What We Wrote About In 2016

THE CHECKOFF DEBATE Industry Leaders In Disagreement

Cover Photography: Drax Morehouse BioEnergy (Jessica Johnson)

MOREHOUSE BIOENERGY Drax Pellet Mill In Louisiana

MATERIALS PROCESSING Taking Care Of Raw Material

26 4

Wood Bioenergy / December 2016

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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 8

Number 6

Airoflex Equipment

563.264.8066

Andritz Feed & Biofuel

800.446.8629

Arco International .

+39 345 77 449 22

Astec

423.867.4210

Bandit Industries

800.952.0178

Biomass Engineering & Equipment

317.522.0864

CEM Machine

315.493.4258

CPM-Roskamp Champion

601.932.9080

Duratech Industries Int’l

888.477.0734

Elmia AB

+46 36 15 22 34

Fulghum Industries

800.841.5980

Jenz GmbH

+49 5704 9409 0

Co-Publisher/Adv. Sales Manager ■ David H. Ramsey Co-Publisher/Executive Editor ■ David (DK) Knight Chief Operating Officer ■ Dianne C. Sullivan

Kice Industries

316.744.7151

Lundberg

425.283.5070

Metal Detectors

541.345.7454

Publishing Office Street Address ■ 225 Hanrick Street Montgomery, AL 36104-3317

Mid-South Engineering

501.321.2276

Morbark

800.831.0042

PDI

207.764.6811

Peterson Pacific

800.269.6520

Price LogPro LLC

501.844.4260

Process Barron

205.663.5330

Promill-Stolz

+33 2 37 3891 93

Rawlings Mfg

866.762.9327

Rotochopper

320.548.3586

Universal Wearparts

800.647.8440

West Salem Machinery

800.722.3530

Williams Patent Crusher

314.621.3348

Wolf Material Handling Systems

763.576.9040

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 ■ Aldea De Las Cuevas 66, Buzon 60 03759 Benedoleig (Alicante) Espana +34 96 640 4165 ■ Fax: +34 96 640 4022 E-mail: murray.brett.aba@gmail.com 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

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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■ from the editors

It’s Not All About

German Pellets I

t’s amazing how difficult it is at times to find out pieces of information. Our editor Dan Shell went through this experience as he tried to update the German Pellets “situation.” (See page 8 for the news item he dutifully generated.) Dan’s challenge was compounded by the “simple” fact that German Pellets went bankrupt earlier this year, and a recent visit to their web site revealed a massive list of court proceedings and orders, most of it written in German (who would have guessed?). We call that a dead end in journalism. Being from the old school, Dan got on the phone and called the bankrupt pellet plant in Woodville, Texas (formerly Texas Pellets LLC) and the bankrupt pellet plant in Urania, La. (formerly Louisiana Pellets LLC); he called local city offices; he called Invesco, the largest holder of debt on those plants. You can imagine that those sources were pretty tightlipped. Most of them responded as if Dan was reporting on Watergate. (You younger people will need to Google that.) Based on a couple of conversations, it does appear the two mills are in some phase of operation. And apparently the owner (whoever that is—the debt holder, the court, nobody?) is still trying to sell them. German Pellets seemed to be doing so well, operating several facilities in Europe as well as the two in the Southeastern U.S. Early on we kept trying to contact their president about this magazine visiting one of the plants and writing an article. Never did get a response. Now we know why. Big debt! Unfortunately, German Pellets has become the cautionary tale told by wood-to-energy doomsayers. In reality, there’s a lot going on—Colombo Energy and Highland Pellets are about to become the newest members of the wood pellet production club. Wood pellet (and torrefied biomass) is coming up more and more in

conversation about coal plant conversions, especially in Canada but also in the U.S. While wood pellet consumption growth in “traditional” markets in Europe and England may be plateauing, here comes Japan with possibly 10-15 million metric tons of demand by 2030. Demand in Korea could hike to 8 million metric tons in the next decade. Then there’s always the question of whether China will turn to wood pellets. Meanwhile in the UK the Brexit thing has some people speculating, but the Drax Power Station there isn’t going away. Our friend and consultant William Strauss says, in a perfect world so to speak, industrial wood pellet demand for Europe, the UK, Korea, Japan, Canada and the U.S. in 2025 could top 50 million metric tons, more than tripling current demand, and representing an annualized average growth rate—using 2010 as a starting point—of more than three million metric tons per year to 2025. It’s okay to be skeptical, but it could happen.

Wood Bioenergy / December 2016

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■ in the news

Bankrupt German Pellets Plants Remain In Operation in U.S. Production continues at two Southern U.S. pellet plants in Woodville, Tex., and Urania, La., that were formerly owned by German Pellets GmbH of Wismar, Germany, with both currently in bankruptcy as the plants’ largest creditors seek buyers or new investors. German Pellets, formerly a major producer of industrial pellets in Europe and parent company

Officials with investment firm Invesco, Ltd., which is the largest debt holder for the Louisiana plant ($89 million) and Texas facility ($39 million), did not respond to an e-mail about current ownership structure, operations or any future plans for the facilities. Sources say the Louisiana plant is paying up front for its raw material purchases, and the Texas plant remains an active member of the Texas Forestry Assn. News reports note both facilities are relatively new plants in good locations, and investment analysts with Invesco and the private equity industry have cited future projected pellet demand. German Pellets was once a major conglomerate operating 15 production facilities (10 in Germany, three in AusDebt holders hope to sell the German Pellets’ tria and two in the U.S.) Texas Pellets operation (shown here) and the with annual capacity of Louisiana Pellets mill. 2.5 million metric tons of Texas Pellets and Louisiana Pelof pellets, plus pellet distribution lets, filed for bankruptcy in Februand marketing companies and ary 2016 after the company was horse bedding and briquette operunable to meet debt obligations. ations. Following its bankruptcy Louisiana Pellets filed for bankfiling, German Pellets sold its ruptcy a week after the parent Wismar, Germany pellet plant to company, unable to make a $4.2 private equity fund MEP, and its million payment. Texas Pellets Ettenheim and Herbrechtingen filed for bankruptcy in May 2016, plants in south Germany to pulp citing creditors’ claims and liens. producer JRS. The company’s The Texas plant had started up in Torgau, Germany plant was sold 2013; the company built an acto PLE Pellet Lohnfertigung, and companying pellet shipping facila power plant in Belgium was ity in Port Arthur, Tex., and the sold to Estonian pellet producer mill was running well at its Graanul Invest. 500,000 metric ton annual capacity until the bankruptcy. The Morbark Appoints Louisiana plant, meanwhile, also a David Herr As CEO 500,000 metric tons facility, is currently running despite suffering Morbark, a leading manufacfrom construction and startup turer of equipment used in forestry, problems in mid 2015 that slowed recycling, tree care, landscaping, its production ramp up. sawmill and biomass markets,

named David Herr as Chief Executive Officer. In addition to being an active member of the current Morbark Board, he brings extensive knowledge from experience with both products and services companies. He replaces Dan Ruskin, who resigned due to health issues. “The Board is thankful for Dan’s leadership over the past six months as the company has transitioned to the next phase in its development,” says Ray Whiteman, Chairman of the Board. “Our thoughts are with Dan and his family, and we wish him a speedy recovery.” “Morbark is fortunate to have a strong and deep leadership team and Board, and we are pleased that David Herr has agreed to step into the CEO role,” Whiteman adds. “We have known Dave for many years and have been impressed by his track record of building highperforming leadership teams that drive growth while respecting core values.” Herr is an accomplished industry executive with more than 30 years of experience in operations, supply chain management and executive management with major companies, including Navistar, GE Aircraft Engines and BAE Systems. He has diverse experience in the areas of heavy-duty truck manufacturing, commercial avionics, commercial ship repair, munitions production, and information and intelligence analysis. He earned a Bachelor of Arts degree in Business Administration from St. Francis College, in Fort Wayne, Ind., and Master of Business Administration degree from Northern Kentucky University. He will be relocating from Ft. Wayne to Morbark headquarters in Winn, Mich. in the near future. “Morbark has built a great reputation with its customers and partners. I look forward to moving from a Board position to leverage my operational experience to further grow the Morbark franchise,” Herr says.

Wood Bioenergy / December 2016

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in the news ■ Finnerva Providing Financing For Teesside Finnish state-owned financing company Finnvera is contributing EUR 120 million to the construction of the world’s largest power plant fueled solely by biomass being built near the town of Middlesborough, England. The construction of the power plant is estimated to cost EUR 780 million. Preliminary construction work for the MGT Teesside plant is beginning soon. Commercial operations are due to start during the first quarter of 2020. The 299 MW plant will be fueled solely by clean wood pellets and chips. The circulating fluidized bed boiler and the flue gas cleaning system are delivered by Amec Foster Wheeler Energia Oy.

Dong Starts Up Biomass Boiler Denmark-headquartered Dong Energy has converted one unit of its Studstrup power plant in Aarhus to run on wood pellets instead of coal, while the second unit will be mothballed, helping to reduce carbon emissions. The 360 MW capacity unit will be able to supply heating to more

than 100,000 Danish homes and electricity to about 230,000 homes using biomass. The second unit of a similar size, which has been running on coal, will be put on reserve. A huge storage silo, which can contain 65,000 tonnes of wood pellets, was installed along with more than 800 meters of closed conveyor belts to transport the pellets from the harbor to the silo and into the boiler. Underground corridors have been constructed to ensure transport of the wood pellets from the silo and into the boiler via conveyor belts. “I’m delighted that we can now open the new, green Studstrup Power Station, which will be able to supply green district heating to Aarhus and green electricity to the Danish grid. That means a significant contribution to the green revolution, and we’re well on the way to establishing an energy system that is green, independent and economically sustainable,” says Thomas Dalsgaard, Executive Vice President, DONG Energy.

Biomass Groups Seek Wood Chip Standard Several natural resource and biomass organizations report they have secured a grant from the U.S. Dept.

of Agriculture Forest Service to assist in the development of a national wood chip heating fuel technical quality standard. Spokespersons say a standard would improve the performance, efficiency and reliability of wood chip heating systems and enhance technical credibility and market confidence, which would help to expand the wood chip heating market. Representatives from the Biomass Energy Resource Center, Biomass Thermal Energy Center, Innovative Natural Resource Solutions, and American Society of Agricultural and Biological Engineers state in a multi-authored letter that all heating fuels used in the U.S.—except wood chips—are governed by quality standards that ensure these fuels meet clearly defined parameters. This includes heating oil, propane, natural gas, coal, wood pellets, etc. Heating appliances (boilers, furnaces, stoves) are then engineered around a known standard fuel to ensure efficient, clean and safe performance. “Without a standard, no manufacturer of wood chip combustion systems can guarantee consistent, high performance,” they state. “With the Forest Service’s support, we expect to complete the development and promotion of the stan-

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■ in the news

dard within the next two years.” A 15-member advisory committee is involved in the effort. “Our team believes the development and wide adoption of a chip fuel standard is essential to broader consumer and market acceptance, and growth in wood chip heating. We want to see this happen.” Visit the project website— www.woodchipstandard.org—for updates and invitations to comment on draft standard language.

PF Institute Adjusts To Private Labeling Pellet Fuels Institute announced a change in the labeling system for its PFI Standards Program to accommodate the common practice of private labeling. The PFI Standards Program is a third-party accreditation program providing specifications for resi-

dential and commercial-grade pellet fuel, now representing 15 pellet manufacturing companies, among them 27 facilities. Under the new system, if a qualified pellet fuel manufacturer is working with a retailer or distributer that wishes to use a privately labeled bag that does not credit the wood pellet manufacturer, then the wood pellet producer is able to contact their inspection agency to request an additional registration number to be used specifically for private labeling purposes. The inspection agency will review the request to assure that the additional registration number is used only for the designated production facility and that the pellet fuel manufacturer will maintain control of all bag printing. Once approved, the inspection agency will issue a new quality mark with the additional registration number to be used only on privately labeled bags.

New Biomass Energy Buys Out Solvay New Biomass Energy has acquired Solvay’s interest in the Mississippi torrefaction plant and plans to continue the production of torrefied biomass. Initial production at the Quitman plant will supply 2,000 to 3,000 tons of torrefied wood for a test burn at Portland General Electric’s plant in Boardman, Ore. later this fall. New Biomass Energy is looking for opportunities to expand the business with a current focus on development in the United States. The company is also exploring additional uses for the torrefied material in alternative markets such as composite materials and agriculture. “Torrefied pellets offer an extremely compelling renewable energy solution for existing coal-fired facilities looking to re-

Wood Bioenergy / December 2016

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■ in the news

duce their CO2 emissions,” says Neal Smaler, President of New Biomass Energy. “We also look forward to working with interested partners on the alternative uses of the material, which offer substantial potential for growth.”

Graham Celebrates Safety Milestone Graham Construction reports it has recorded 1 million man hours free of any RIDDOR notifiable incidents while building the biomass terminal at the Port of Liverpool for its client Peel Ports. RIDDOR (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations) requires employers to report to the relevant authority any work related accidents and incidents of a certain nature. The first phase of the £100m facility opened in 2015 with further phases due to come on stream in the coming months. The terminal handles up to 3 million tonnes of wood pellets a year to supply Drax power station in Yorkshire, with the material shipped directly from the Port of Liverpool by train. Paul Scott, contracts director at Graham Construction, comments, “Safety is one of our core values with the aim of ensuring all staff

on our projects remain free from harm or ill health as a result of their work. We firmly believe that good safety statistics are as a result of diligent planning, effective supervision and management, trusted supply chain partners and a trained and competent workforce.”

Group Emphasizes Safe Trucking TEAM Safe Trucking (TST), a broad-based, non-profit volunteer group seeking to elevate the standard and performance of the American forest industry’s transportation sector, is moving ahead with its ambitious agenda, according to organizers, who met in early fall to review the progress of TST and to tweak its priorities. The group launched a web site (teamsafetruck ing.com) in October. The web site is being populated with information and tools designed to help TST reach its objective. Its emerging safety-focused program will embrace awareness and education; driver training, skillset improvement, motivation and recruitment; fleet best management practices; and public image enhancement. The organization expects to expand its program nationwide as it

secures additional funding through donations from stakeholders and through grants. At least 10 companies and associations have contributed funds to TST. As well, Virginia Tech University has committed funds and a graduate student to conduct log/chip truck accident research, which is just beginning. The study will help guide TST’s work going forward. Organizers consist of logging companies, log trucking entities, wood fiber suppliers, paper/ wood products manufacturers, insurance companies, and logging and forestry association representatives. According to TST president Rick Quagliaroli, “Our objective is to help make the forest industry’s trucking segment safer, more accountable, more efficient, and more acceptable to the public. This will take some time. For the good of the industry as a whole, we’re asking for all connected parties to ‘buy in’ with their ideas, enthusiasm, and support.” To learn more, visit teamsafetrucking.com, e-mail Quaqliaroli at rick@swampfoxagency.com or e-mail Jimmie Locklear at jimmielocklear@forestry mutual (phone 910-733-3300).

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in the news ■ Norbord Takes Aim At Biomass Subsidies Norbord UK is calling on the government to amend biomass subsidies. According to Norbord, earlier this year a major energy supplier lobbied the government to make biomass power stations eligible for future subsidies. The company wants to be allowed to bid for “green” subsidies that the government is planning to auction off. Biomass power plants already receive government support, but the industry wants more, Norbord claims. However, Norbord says the type of technology used to convert coal-fired power stations to biomass is not currently eligible to bid for the new subsidies. There are several reasons why this technology should not receive subsidies but the most basic is that wood is, fundamentally, very different from other renewable energy sources such as wind and solar power, according to Norbord. Nobody has to buy their wind or sunshine and there is no market for these energy sources. Wood markets, however, are well-established. It is a raw material for numerous industries and is traded internationally. “Subsidies fundamentally distort the market for timber and applying the same incentives to wood as to wind or solar power generation is nonsensical,” Norbord states. Norbord, a leading producer of oriented strandboard, is one of many manufacturers for whom wood is the principal raw material and depends upon the ability to buy materials competitively in a free and open market. As a manufacturer, Norbord burns process residues to generate 75% of its heat energy from on-site biomass plants for which it receives payment under the government’s Renewable Heat Incentive. However, this payment does not even get close to offsetting the impact of wood price increases resulting from subsidies paid to biomass power stations, Norbord claims.

“The government needs to amend the existing subsidy process to remove this unfair incentive and must not cave in to biomass energy companies who want even more public money to subsidize their businesses,” Norbord states.

N.H. Study Cites Wood Bio Impact New Hampshire Wood Energy Council, a not-for-profit public education and outreach organization, has released a report stating that wood chips and pellets used for

December 2016 / Wood Bioenergy

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■ in the news

heating account for a $36 million per year positive impact in that state. The report documents the economic and environmental benefits of heating community, commercial and institutional buildings with bioenery. NHWEC analyzed the use of wood fuels in calendar year 2015 in hospitals, schools, municipal buildings and private businesses across the state. In the last 10 years, more than 120 new installations have been made, nearly always replacing imported heating oil. The study documented wood fuel use in the buildings studied at 7,500 tons of pellets and 94,000 tons of wood chips during 2015. Meanwhile New Hampshire state officials celebrated National Bioenergy Day by holding an open house to recognize the completion of a new wood biomass boiler that will heat a major state building in Concord. The New Hampshire Dept. of Environmental Services (NHDES)

and the Dept. of Health and Human Services (DHHS) facility will be heated this winter with sustainably sourced local wood biomass chips instead of natural gas.

Site Provides Wood Bioenergy Database U.S. Endowment for Forestry and Communities has launched a wood bioenergy facility database and mapping tool (www.wood2energy.org). With separate, clickable layers and data by facility type, size, operational status, and additional detailed information for each data point, users have the ability to plot and contextualize data from the macro-level down to the site-level. The Endowment engaged Ecostrat Inc. to develop and manage data delivery using GIS mapping technology to render the very large, complex dataset in a simple, userfriendly way.

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■ checkoff debate

Checkoff Is Vital To Future

Of Wood-To Energy By Carlton Owen

n commodity markets like those that define the lion’s share of forest-based products, it is far more cost-efficient and effective when like-kind producers collaborate to grow markets rather than individual producers going it alone. Can a wood energy pellet producer in Georgia significantly differentiate and brand its pellets in the marketplace as compared to those produced by one from North Carolina? Is wood-derived electricity generated across town “better” Carlton Owen than that produced at a competitor’s facility two states over? In either case the answer is, not likely. The issue isn’t producer A versus producer B; rather, it’s about the concept of using wood to generate energy at all! The U.S. Endowment for Forestry and Communities (Endowment) was created 10 years ago to help keep America’s forests as forests and advance family-wage jobs in rural, forest-rich communities all while ultimately supporting the North American forest industry. We approach our mission with a belief that robust markets are the most effective pathway to much of what we hope to accomplish.

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checkoff debate ■

Among our first undertakings was a study of the tools that agricultural commodity producers—from mangos to milk and beef to blueberries—had successfully used to grow their markets. It is difficult under U.S. law for competitors to work together to grow markets without running afoul of anti-trust laws; the same isn’t true in many other nations. Recognizing this disparity Congress provided a means to help level the playing field. The resulting USDA-administered Research and Promotion Programs were the result. Also known as checkoffs, the 1995 Farm Bill for the first time made these tools available to forest products producers. We are proud of our investments that have helped two segments of the forest products sector launch such programs. In 2011 global softwood lumber producers manufacturing or selling products into the U.S. market voted overwhelmingly to adopt a checkoff program to regain market share lost to cement and steel. The paper and paper-based packaging segment followed in late 2013 with a program designed to slow and, we hope, reverse the slide in paper-based products. Checkoffs are powerful tools for any eligible segment of the forest products sector to maintain and grow markets—both domestic and foreign. It is difficult to explain all of their merits as well as address misinformation in a short space…here are a few high-points. Checkoffs Are Not Taxes: Taxes are levied by government to address broad social needs—defense, social security, roads, etc. Checkoff funds are collected only when a majority of those who would be assessed vote to adopt a common approach to research and promotion in their own best interest—democracy at its purest! And, should the producers decide at a later date that it isn’t having the desired effect, they can vote to terminate the program. Try that with a tax! How Are Funds Spent? Funds amassed (perhaps $3-5 million/year via a wood-to-energy checkoff) would be used “only” to conduct research (e.g. consumer preference, environmental footprint, new products, etc.) and promotion (education or advertising that sets the record straight about product benefits, sourcing and the state of forests). Funds can’t be used to support government programs. Who Decides Priorities? Checkoffs are industry programs operated under government oversight, which as noted earlier is vital to avoiding pitfalls under U.S. trade laws. The government role is only to ensure that those who run the program stick to the facts in messaging and that funds are used for eligible activities. The checkoff board is appointed by the Secretary of Agriculture from a pool of candidates provided by the industry. The Secretary’s role is to ensure that appointees represent the full range of those assessed and that no sub-segment is disadvantaged. Do They Work? The fact that ag-based checkoffs have been repeatedly reauthorized (something that must happen by vote of those paying at least every seven

“Checkoff funds are collected only when a majority of those who would be assessed vote to adopt a common approach to research and promotion in their own best interest.”

years) isn’t based on blind willingness to pay an assessment; rather, it’s founded on hard data showing the programs yield benefits many multiples of each dollar invested. Why Is The Endowment Involved? Why would a public charity work so hard and invest its own funds to promote checkoffs if it doesn’t get any of the funds generated? Simply stated our reward comes in the form of private businesses that provide markets that help keep forests as forests and that employ people in family-wage jobs. Let me end by exposing another myth. The courts have not found that the Softwood Lumber Checkoff is illegal. What the court said is that the rationale used to establish the de minimus exemption wasn’t clearly articulated. The law allows small producers to be exempted—they neither vote nor are they assessed— based on the reality that even small administrative tasks and assessments can prove burdensome for small producers. (In the softwood lumber case those exempted accounted for only 3% of total production while those who are assessed are exempted on an equivalent amount of their production—the same fair treatment is proposed for the wood-to-energy checkoff.) We at the Endowment have been co-investing with a number of leading companies from the domestic and export pellet sub-segments as well as biomass power producers to explore checkoff potential. If it moves to a vote, those voting (the Endowment won’t be among them) will be only those who would be assessed and would benefit from a sustained, science-based program funded in the most fair way—with all core players paying a pro rata share. As former Congressman Daniel Patrick Moynihan said, “Everyone is entitled to his own opinion, but not to his own facts.” Get the facts about checkoff. The benefits to the wood-to-energy segment’s future are clear. Carlton Owen is President & CEO of the U.S. Endowment for Forestry & Communities, Inc., 908 E. North Street, Greenville, SC 29601; phone 864-233-7646; e-mail carlton@usendowment.org; visit woodtoenergycheckoff.org.

December 2016 / Wood Bioenergy

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■ checkoff debate

Voluntary Checkoff Has Merit,

But Mandatory Is A Tax By Harold Arnold

he US Endowment for Forestry and Communities has invested heavily in trying to apply the federal agricultural commodity checkoff program model to the forest products industry. Federal checkoff programs are run by the U.S. Department of Agriculture and funded by ongoing mandatory assessments of producers of the commodities which they cover. That pooled money is used to promote both domestic sales and exports. Well known existHarold Arnold ing agriculture checkoffs funded such recognizable advertising campaigns as the “Got Milk?” and milk moustache promotions, “Pork—the other white meat,” and “Beef, it’s what’s for dinner.” Currently, the Endowment is funding an effort to secure a federal checkoff program for wood pellets, referred to as the “wood to energy” checkoff. As the Endowment itself says, checkoffs have become a core focus of its vision to be a “catalyst for systemic, transformative, and sustainable change.” While the Endowment is a valuable resource to the pellet industry and provides needed and appreciated support, I believe our industry should cast a cold eye on the effort to secure from USDA a mandatory checkoff program.

Wood Bioenergy / December 2016

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checkoff debate ■

First of all, a checkoff would impose a gross production tax on the industry. The assessment on pellet manufacturers, up to $0.40 per bone dry ton or more as proposed in the initial draft of the checkoff plan, is based on volume, not on revenues, nor net or marginal income which makes it a potentially onerous tax. Non-payment is not an option. The money is collected by the federal government—specifically, by the USDA’s Agricultural Marketing Service. Checkoff proponents don’t like the word tax, but consider this: assessments are a compulsory payment, levied on a company’s production volume, collected by a government agency. It is what it is—a tax. Second, a checkoff turns over the ultimate authority and decision making on industry marketing to the federal government. Under the statute that allows the creation of checkoffs, the Secretary of Agriculture approves all contracts, owns all patents, copyrights, and licensing agreements, and approves all promotional activities. There is a board of industry representatives—not elected by the industry, but rather appointed by the Secretary of Agriculture—who recommends promotional activities, but only the USDA can approve them. That’s the law. In fact, the Supreme Court, in a 2005 case brought against the beef checkoff program by dissenting cattle producers, ruled that checkoffs constitute “government speech,” and that trumped the dissenters’ right to opt out of the checkoff. The legal standard for government speech is that the federal government must exercise sufficient control over the content of the checkoff to be deemed ultimately responsible for the message. In other words, a checkoff is a government program, not an industry undertaking. Third, the proposed pellet checkoff would be akin to diving into troubled legal waters. Based on some of the original proposals by the checkoff advocates, about 54% of U.S. pellet mills would be exempt completely from assessments because of their production volume. This is the same structure that got the softwood lumber checkoff in legal trouble. A U.S. District Court judge ruled that the softwood checkoff was illegal because there was no rationale to exempt companies under a certain size from paying assessments. Fourth, checkoff programs cannot be used for lobbying or directly influencing government policy. That is a very important caveat for the pellet industry in considering a mandatory checkoff. Consider how much of the growth in the pellet business is driven by policy, from renewable portfolio standards to EU directives on air emissions. As the U.S. International Trade Commission states, “global demand for wood pellets is heavily driven by policies to increase use of renewable energy.” A successful major industry promotion program cannot exclude engaging such an important market driver. Fortunately, for those in the pellet industry who embrace the idea of a generic industry-wide promotion effort, there is a solution to these problems: a voluntary checkoff-style program. Such a voluntary structure wouldn’t impose a mandatory tax on pellet mills,

“Checkoff programs cannot be used for lobbying or directly influencing government policy. That is a very important caveat for the pellet industry in considering a mandatory checkoff.”

wouldn’t turn over intellectual property and industry marketing decisions to the USDA, would allow the industry to influence the policy that regulates the industry, and if organized and run well would be likely to gain more participation than a mandatory checkoff that excludes more than half the industry. The concept of a mandatory checkoff is in many ways backward looking. It has its roots in Depression era agricultural policy—the prototype program being the Florida Citrus Advertising Tax, instituted in 1935. Voluntary checkoffs, however, look to be the way of the future; they’re increasingly the subject of discussion in agricultural trade press; they’re operating at the state level, like the Texas Corn Board’s voluntary program, and just last month Senator Mike Lee of Utah introduced legislation that would amend federal law to require that all checkoff programs be voluntary. A forward looking vision befits our dynamic, fast growing industry. The Endowment is a capable and resourceful organization dedicated to the promotion of the forest products industry. Thus, perhaps the Endowment, with the support of the industry—rather than the federal government with the power to tax—could provide the platform for a voluntary checkoff-style wood to energy promotion effort. Such a structure could better fit the industry’s needs, and truly be a forward looking “catalyst for systemic, transformative, and sustainable change.” Harold Arnold is President of Fram Renewable Fuels LLC, 19 Farmer Street, Hazlehurst, GA 31539; phone 912-3753068; e-mail: arnold@framfuels.com.

December 2016 / Wood Bioenergy

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Coming On Strong

Morehouse BioEnergy By Jessica Johnson

Morehouse BioEnergy operates a Bruks chip stacker-reclaimer.

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pellet mill ■

BASTROP, La. ften, the biggest players in our industry keep their heads down, not wanting to call attention to what they’re doing. As Drax Biomass’ Morehouse BioEnergy Plant Manager Richard Lamb jokes, “Shh, it’s a wood chip, don’t tell anyone.” Drax takes a difference stance. One of the most important things a plant can do is recognize its identity, and work toward finding its place in the marketplace—both for the future and for the present, Drax Biomass Director of Communications and Policy, Price LogPro crane handles roundwood deliveries. David Malkin, emphasizes. “When we think about who we want to be in the market, we want to be the most reliable, dependable supplier of high quality pellets. Plain and simple,” he says. Both Drax Biomass pellet production facilities in Mississippi and Louisiana are structured to meet this goal. But it’s not just the operational structure that pushes the company. Drax Biomass is heavily involved in furthering a pro-biomass message both at home in the U.S. and abroad with its parent company, Drax Group, in the U.K. Moving dependence away from traditional fossil fuel-based power generation and toward biomass is a tremendous challenge. Drax Biomass stands behind a position of resource diversification (and its importance to grid reliability). “We understand why utilities are going all in on natuMain suppliers in the wood yard include Price LogPro, ral gas, it makes sense from an economic perspective,” Bruks and Andritz. Malkin says. “But it’s a commodity just like anything else and those prices will fluctuate. There’s no substiparent company means a guaranteed market, but it also tute for energy security.” gives the pellet facilities flexibility. Waiting out that fluctuation will be instrumental in Drax Biomass can set itself apart because it’s an inmaking biomass a viable option to the U.S. and elsedustrial pellet producer that has first-hand experience in where as alternative energy sources are once again discoal to biomass conversions—something other induscussed. Greg Martin, SVP of Operations for Drax trial pellet producers cannot say. Biomass, says it’s pretty simple. When natural gas Malkin believes this knowledge, and the ability to jumps back up to $7 MMBTU, biomass will be a favorshare what has worked in the U.K., and what hasn’t, able choice. In the meantime, Drax Biomass will conwill help encourage U.S. utilities to trust that pellet tinue to promote biomass as a reliable, low-carbon fired boilers can make reliable energy. Granted, that alternative to fossil fuel, and a natural complement to won’t wipe away all the skepticism, but being able to other intermittent renewable energy sources like wind show which feedstocks have performed best in the peland solar. letizing process that then burned the best in converted Drax Group is a fully vertically integrated biomass boilers, gives Drax an advantage when approaching energy company. The pellet production plants in the possible customers. U.S. exclusively feed the power station in the U.K. and Pointing to existing marginal coal facilities, particuthe wheel keeps on spinning. Malkin points out that larly the ones lacking environmental controls, with yes, Drax Biomass will always send a large portion of MACT compliance and other air regulations, Martin its production to Drax Power Station, but the company sees the biggest opportunity for biomass conversion is looking to expand its market. Sure, being backed by a from U.S. utilities.

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■ pellet mill

Malkin sees certifications as another way to bridge the gap between regulators and biomass power. Drax Biomass holds a range of industry certifications, including its recently awarded Sustainable Biomass Partnership (SBP) certificates. “Our hope is that other governments will recognize SBP as a common framework for demonstrating that biomass is both legally and sustainably sourced. Many countries have their own niche requirements, and this poses a challenge to industry,” he explains.

Why Bastrop?

Greg Martin and Richard Lamb

Obviously Drax Group saw an opportunity in producing its own industrial pellets, and created Drax Biomass. But why Bastrop, La.? Drax Biomass has a footprint in three states: headquartered in Atlanta, Ga., with 35 mainly executive employees, two nearly identical manufacturing facilities in Gloster, Miss., and Bastrop, and a storage and transit facility in Baton Rouge, La. Each pellet facility is staffed by approximately 60 full-time employees, and is capable of producing 450,000 metric tons per year. The Bastrop facility ships its pellets to Baton Rouge by rail, while Gloster ships by truck.

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pellet mill ■

Communication between the two plants is very strong; managers often share ideas and troubleshoot problems together. “There are tons of opportunities to learn from each other. The layout is exactly the same, with the exception of how the road comes into the plant: but equipment, structural steel, layout, all exactly the same. We can pull a motor off here and carry it to Gloster and it will work there as well,” Lamb says. Bastrop was attractive to Drax for three main reasons: the existing rail infrastructure, wood basket and workforce availability. Rail is much more efficient for shipping pellets to the Port of Greater Baton Rouge, the main outlet for Drax to ship pellets to the U.K. In Bastrop, there was an extensive, existing rail line, though construction of a spur to the plant was required. The Union Pacific main line was already in place and actively used, as well as the ALM line, which is more of a local line, but actively used by Drax. Drax has signed a long-term contract with Union Pacific to move pellets down to Baton Rouge and is working with the Port to construct a chambering yard to increase shipping capacity, Malkin reports. Currently, Bastrop runs 45-car trains every three to four days. Once the yard is built, Bastrop will be ready to run more efficient 80-car unit trains.

Morehouse has a rated capacity of 450,000 metric tons.

Obviously, rail infrastructure was part of the decision to site a pellet mill here, but the most pressing factor was the wood basket, according to Malkin. “The growth to drain ratio is very favorable here, 1.5:1. That speaks to the availability of the resources, but also a function of how the market has changed over the last couple of decades,” he adds. ➤ 36

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■ Materials Processing

EDITOR’S NOTE: The following companies submitted these releases and photos. All statements and claims are attributable to the companies.

Andritz Hammermills, Service, Testing

Bandit 2290S stationary chipper

Andrtiz 4360 hammermill

Do you have a biomass burner project that needs a finer particle distribution? With unlimited hammer and horsepower configurations and countless screen and hammermill sizes, it’s tough to find the perfect configuration for your needs. Andritz can help you overcome the complexity and fine-tune your hammermill to meet all of your particle distribution requirements. Its high speed rotor uses a variable frequency drive (VFD) designed for tip speed ranges between 16,000 and 23,600 FPM to meet a wide variety of requirements. Whether it’s at the Andritz testing facility or in the field, highly skilled application engineers can help you select the right machine configuration for your application. Have a feedstock you would like to test? Contact Andritz to learn more about its full-scale lab and how they can assist you on your next project. Visit andritzsprout.com/hm.

Bandit Stationary Chippers Bandit’s stationary chipper is an ideal solution for sawmills and chip mills looking to capitalize on waste material. Based on the Model 2290 whole tree chipper, the Model 2290S features a 24.5 in. by 26.25 in. chipper throat opening to easily handle large slabs and roundwood. It chips with Bandit’s well known 37 in. chipping drum and features a single top feed wheel in Bandit’s Slide Box Feed System. The feed system is positioned close to the chipper knives for exceptional chip quality and uniformity. The Model 2290S features a steel-slated infeed conveyor similar to the proven design used in Bandit whole tree chippers and The Beast horizontal grinders. This design is excellent at carrying odd sized slabs, edgings and cutoffs common in sawmill residue. Chips exit through a typical forestry discharge with an adjustable chute for creating chip piles or loading chip trailers. A bottom dis-

charge is also available for dumping chips directly to a chip conveyor. Power comes from proven WEG electric motors with soft-start starters to provide a dependable power package that’s easy to install. Diesel engine options are also available. The Model 2290S is built heavier than traditional sawmill/chip mill chippers, utilizing the same thorough welded construction and attention-to-detail that goes into all Bandit machinery. These are the reasons why the Model 2290S delivers smoother operation with better efficiency and greater dependability. Visit banditchippers.com.

CEM LiteKnife System LiteKnife system for heavy duty disc chippers: Over the past six years, this heavy duty regrindable patented knife system has been adapted to numerous wood yard and chip mill disc chippers—both CEM’s own discs as well as other OEM discs—in disc sizes up to 3.5 m (139 in.) diameter. These operators are collectively chipping many millions of tons of wood annually. Customers changing from their OEM system supplier to CEM’s Liteknife system observed improved reliability over disposable knife systems, improved safety and ease of han-

CEM LiteKnife being fit to CEM 18 knife disc at final factory assembly

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Materials Processing ■

dling over standard conventional systems, excellent knife life, and equivalent or better chip quality. All of these goals were achieved at an annualized cost comparable to their old system, even before considering the value-added of its many operating improvements. Because this is a regrindable knife system, it permits each knife to be used six to 10 times before disposal, for good system economy. For all types of disc chippers it permits a fast and convenient changing of knife sharpness angles to alter the chipper ‘pull-in’ or ‘suction’ angle in order to optimize chip quality and knife life. For many types of disc chippers, it also provides an economical, safe, quick and convenient method of changing disc knife projections from the disc and thereby the chip size setting of the disc chipper by making babbiting or screw adjustments for resetting the width of resharpened knives. Visit cem-machine.com.

your entire operation running smoothly. Best of all, your CPM equipment is backed by the best support. No matter what time of day or night, CPM experts are ready, willing and able to help you work through any kinks in the process. But don’t expect to have many of those. As CPM says of its equipment: “It just runs.” Visit cpm.net.

Price LogPro Upgraded Drum Shells

CPM HM Series Of Hammermills California Pellet Mill (CPM) is a trusted industry leader when it comes to pellet production, using innovative engineering and design combined with the latest manufacturing technology to be your true renewable energy partner. From hammermills and pellet mills to conditioners and coolers, CPM can supply the biomass equipment you need, and the Beta Raven automaCPM hammermill for bioention to keep it running 24 ergy operations hours a day. In particular, CPM hammermills are highly efficient machines. They are designed to meet the needs of almost any particle size reduction task and are even capable of fine-grinding friable and fibrous materials. In addition, the hammermills have standard and optional features for custom grinding and size reduction solutions and total dependability, so you know you’re getting exactly what you need to meet your pellet standards. CPM’s HM Series of hammermills is a heavy-duty choice for grinding chips, shaving, and energy grasses. It’s built with double-wall box construction filled with vibration-dampening material to reduce noise pollution in your warehouse. The double-pivot, full-access doors make the hammermill safe and easy to load, unload and maintain. The AR235 abrasion-resistant wear liners are replaceable for your convenience. The HM Series also features inboard and onboard double-row spherical roller bearings, dual hammer position with premium hammers, a patented regrind chamber, and a mechanical steel tube base to keep

Price LogPro wood yard drum debarker

Price LogPro has developed a number of new products due to the ever increasing desire to better utilize small wood diameters for engineered wood products. Recent engineering changes have been made to make its drum systems more flexible and process fiber more efficiently. The two most significant upgrades come to the design of the debarking shell in the form of the “Enviro” drum shells and “Versa” drum shells. The Enviro line of drum shells utilize smaller segmented lifters resulting in greatly reduced fiber damage and white wood losses in softwood species. Another feature of the enviro drum shell is the angled, narrow bark slots that allow for overall greater bark slot area throughout the length of the drum while reducing white fiber losses to the bark system located directly below the drum. This arrangement allows for transfer of small diameter fiber to be successfully delivered to the chipper or flaker system. The Versa drum shells are engineered to work with segmented lifter segments much like the Enviro shell; however, the segmented lifter are bolt-in rather than fix welded to the shell. Price has built drums for more than 35 years running bolt-in rubber lifters; the Versa drum shell is just an adaptation of that design. This Versa flexibility in lifter selection allows for proper fiber agitation based on species being processed and allows the drum to perform better during frozen wood processing. Clients processing wood in climate areas that are split with semi-equal frozen to non-frozen fiber processing months will have the ability to interchange the aggressive lifter segments for winter applications and then change back to standard non-aggressive lifters to reduce breakage

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■ Materials Processing

and white wood losses during the non-frozen fiber months. Enviro & Versa drum shells are available in all drum sizes and configurations. The future is high volume fiber processing and Price LogPro has 35 years of experience as well as the innovation to help clients process their fiber at the highest possible recovery at the lowest possible cost per ton. Visit logprollc.com.

West Salem Size Reduction

Rawlings Provides Hogs, Grinders

WSM 4888 super shredder

Rawlings Super Hi-Inertia hog

With more than 40 years of experience in the forest and sawmill related industries, Rawlings delivers wood grinding equipment with a reputation for durability, performance and reliability. Since 1976 Rawlings Manufacturing has been manufacturing and installing custom wood grinding systems. Add a wide variety of available options such as work platform decks, choice of belt, chain, vibrating infeed and outfeed conveyors, metal, or magnet protection, product screening and separation, and you’ve got the flexibility to customize the perfect wood grinding system. Rawlings offers a complete lineup of wood grinders in a full range of sizes and models. l Tolerant of contaminants, rocks, metal without catastrophic maintenance costs if metal enters the grinding chamber l Highest crushing impact rotor supplying massive kinetic energy to power through the largest feed surge l Rawlings Super Hi-Inertia hogs provide the crushing and shearing power needed to handle really tough jobs like green waste, cypress, redwood, cedar, black spruce, poplar and a wide range of other stringy and fibrous materials. l Runs at one-third lower RPM resulting in overall savings of electricity and maintenance costs l Machines are designed to operate 24/7 365 days a year. l Quality grind—consistent product l Bottom line productivity, reliability, with the lowest maintenance costs per ton of material processed. Visit wastewoodhogs.com.

Wood yard professionals—are you looking for a tool that gives you an edge in the fiber market? Something that can broaden your wood basket and lower your fiber cost? Check out WSM’s new Pin Chipper. Field proven in pulp mill and high volume fiber preparation applications, WSM’s Pin Chipper delivers a high percentage of pin chip fiber that can be included in your chip supply. The ability to expand and source alternative fiber and/or reclaim lower cost residuals may deliver big financial benefit to your bottom line. Available with rotor diameters of 42 in., 48 in., and 60 in. with rotor lengths from 36 in. to 88 in., these massive machines typically operate with 150-1000 HP and allow processing rates up to 100 green tons per hour. Mill duty features that lead the industry include modular and adjustable tooling with either rigid or swing hammers with replaceable inserts; large screen area with modular sizing screens to allow adjustment to product sizing, and heavy duty housing with interior wear liners and pivoting case access for long machine life and ease of maintenance. When combined with a WSM pre-screen, processing rates can reach up to 150+ tph. System integration into your wood yard system is no problem. WSM offers complete infeed and outfeed options and a systems integration team to ensure a cost effective project. Want to evaluate how this new technology can help your operation? At WSM’s screening and size reduction test lab, customers can have various feedstocks tested to help make informed machine purchases. The test lab can simulate various operating conditions and provide detailed sieve analysis of the “pin-chipped” fiber. Contact the experts at WSM to talk about your operation and how it might benefit from WSM’s complete line of size reduction, screening and handling equipment. WSM. Tough. Reliable. Built to Last. Visit westsalem.com.

Wood Bioenergy / December 2016

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product news ■ Rotochopper Hosts 6th Demo Day With more than 200 attendees, Rotochopper’s 6th annual Demo Day in St. Martin, Minn. was its largest event yet, bringing in guests from worldwide to see the

“Perfect In One Pass” advantage in action. The day began with tours of the state-of-the-art manufacturing facility, giving attendees the opportunity to see Rotochopper grinders in every stage of manufacture, from cutting to final inspection and testing. The facility tours also allowed guests to meet the teams who design, build and support their Rotochopper equipment. Rotochopper President/CEO Art de St. Aubin welcomed attendees with

opening remarks that focused on the benefits of working with a factory-direct manufacturer: “Today, you’re going to witness what Rotochopper stands for: loyalty, community, commitment and service. This commitment allows us to create new products and equipment enhancements based on your feedback. We represent only one name, Rotochopper, and we’re damn proud of it.” The demonstrations began with Rotochopper’s 950 HP B-66 showing off the convenience of a Track & Dolly system, coming in the yard on tires, switching to tracks and ready to grind logs & whole trees within minutes. Through the course of the day, Rotochopper completed more than 20 demos with a variety of raw materials and end products, featuring 10 machines: 950 HP

December 2016 / Wood Bioenergy

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■ product news

B-66 Track & Dolly, 765 HP B66, 540 HP TS-2 track shredder, 540 HP FP-66, 475 HP MC-266, 400 HP EC-366, 350 HP MP-2, 127 HP CP-118 wood chip processor, 75 HP RMT test mill and the certified factory refurbished 200 HP SB-24E. The day ended with Rotochopper’s trademark: a grind and color finale with the 950 HP B-66 and 475 HP MC-266. Attendees got to watch the machines grind and color black and red mulch side-by-side. Customers and prospects spent the evening before and after Demo Day networking and comparing the ins and outs of various grind-

ing operations and fiber commodity markets over drinks and dinner; as well as building friendships and business relationships that will prove fruitful for years to come. “Every year, Rotochopper Demo Day gets better and better,” comments Brad Bennett, owner of Novem Waste, Inc. “As a business owner, the experience is invaluable for me. I get to see the latest products and equipment that will provide new markets for my business and machine, and meet other Rotochopper owners and operators. The connections I’ve made at Demo Day are vital to the success of my business, I wouldn’t miss it for the world.”

Morbarks Hosts 10th Demo Days Morbark, LLC, welcomed 250 customers, members of its dealer network, and other guests from around the world for its 10th Demo Days event in Winn, Mich. on October 13-14. Morbark’s Demo Days give attendees the opportunity to not only watch the equipment in action, but also meet the people who build and support the equipment as they see firsthand the manufacturing processes. Events included factory tours, networking opportunities, vendor booths, and a chance to see the equipment up close, as well as try Morbark guests size up the new 223 out Morbark’s Boxer line of flail during Demo Days in Winn. Mich. compact utility loaders. The event culminated with demonstrations of equipment for the forestry, biomass, recycling and tree care markets, including the: l HT1042 Slow-Speed Shredder, shown at Morbark’s electric test panel l 3200 Electric Wood Hog horizontalgGrinder, shown at Morbark’s electric test panel l 3200 track wood hog horizontal grinder l 223 flail l 23 Chiparvestor l 30/36 NCL whole tree drum chipper l 40/36 NCL whole tree microchipper l Beever M12R chipper l Beever M18R chipper l Beever M20R chipper with loader l 6600 track wood hog horizontal grinder l 1300B tub grinder 30

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■ product news SpecSys Purchases Former Prentice Plant A Minnesota-based company has acquired a heavy equipment factory in Prentice, Wis. formerly owned by Caterpillar. SpecSys Inc. (Specialty Systems), a contract engineering and manufacturing company headquartered in Montevideo, Minn., bought the plant as part of its ongoing strategy to seek rurally located manufacturing operations, according to CEO Kevin Wald. SpecSys provides 40,000 hours of manufacturing services and 5,000 hours of engineering services each month. “You are hard pressed to find a major equipment manufacturer in the world that we do not have an existing relationship with, “Wald says. At 220,000 sq. ft., the Prentice

plant is a “nice step up in capacity,” Wald says. “The values you find in a rural work force have been a cornerstone of our companies from day one.” SpecSys intends to start producing forestry products machines in Prentice but hopes to also manufacture equipment for mining, agriculture, railroad and energy companies. The plant was founded in 1945 by Leo Heikkinen and produced the Prentice hydraulic loader. Wald’s parent company, Ritalka, supports other companies and government agencies. SpecSys, one of the Ritalka’s subsidiaries, now has 275 workers and 700,000 sq. ft. of facilities in eight sites in Minnesota, South Dakota and Wisconsin. “We in the village of Prentice are extremely happy and proud of Ritalka-SpecSys operations purchasing the Prentice Cat operations,” says Prentice Industrial Development Corp. President Dale Heikkinen. “We want to thank the Wald family for considering Prentice.”

Barko Names Talaga As Product Manager Steve Talaga has been appointed Product Manager for forestry equipment manufacturer Barko Hydraulics, LLC, part of the Pettibone Heavy Equipment Group. Talaga is responsible for product line development, market analysis, and general support and interaction with Barko dealers and customers. Prior to his new position, Talaga worked for sister company Pettibone/Traverse Lift, LLC for four and a half years, first as a service technician and then as a design engineer. Talaga has a Bachelor of Science degree in mechanical engineering technology from Michigan Technological University.

KPA Unicon Becomes Prominent Supplier Two Finnish energy solution suppliers are joining forces through a merger in which KPA Unicon Group

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Oy is purchasing the entire share capital of Renewa Oy. KPA Unicon produces comprehensive service and technology solutions for heat and power plant projects throughout the lifecycle of the plants. The solutions utilize biofuels and fossil fuels with high energy efficiency. Renewa offers local energy production solutions for biofuel- and waste-fired heat and power plants. KPA Unicon becomes one of the prominent suppliers for mid-sized heat and power plants in the Nordic countries and Europe. “We will be able to offer our customers a broader technology portfolio, more comprehensive operation and maintenance services, and more diverse financing solutions. With our enthusiastic and responsible approach, we will help our customers to succeed and support them in environmentally friendly, reliable and profitable energy production,” says Jukka-Pekka Kovanen, Managing Director, KPA Unicon Group Oy.

Norbord Orders Dryer, Energy Plant Norbord is relocating an existing continuous press from its mill in Alberta, Canada, to Inverness, Scotland and has ordered a new OSB drum dryer and corresponding energy plant from Siemelkamp-Büttner. The energy plant with a total combustion capacity of 55 MW will use a 75 sq. m grate to generate around 40 MW of flue gas for heating the dryers and 15 MW for heating thermal oil. As with the drum dryer, Büttner will also be supplying the entire range of equipment from a moving floor for the fuel storage to the primary circulation system for thermal oil. The assembly of the dryer and energy plant is also part of Büttner’s scope of delivery and is scheduled to be concluded by the middle of 2017.

Fantoni MDF Orders Cremona Energy Plant Italian-based Fantoni MDF has ordered a new energy plant from Italian company ITI Engineering of Cremona. The energy plant with a total net combustion capacity of 30 MW will use a 50 sq. m grate to generate 10 MW of flue gas for heating dryers and 20 MW for heating thermal oil. Complete assembly, steel structure and startup is also part of ITI’s scope of supply and is schedule to be concluded by third quarter 2017.

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in the news ■

Torrefaction Taking Off With New Oregon Projects Wood bioenergy development in Oregon is taking a step forward on two fronts, both concerning torrefied biomass utilization and torrefaction technology, as Portland General Electric (PGE) recently announced torrefied biomass burn testing at a coal-fired power plant, and Oregon-based HM3 Energy opened a torrefaction demo plant and licensed its technology to a Japanese utility that’s looking to build a commercial plant in the U.S. The Boardman, Ore. coal-fired power plant operated by PGE is scheduled to shut down by 2020, but the company is studying the possibility of converting to biomass. Earlier this year Oregon’s renewable portfolio standard (RPS) was renewed and expanded to 50% by 2040, and PGE officials have said they are looking to utilize biomass and integrate intermittent renewable resources such as wind and solar. The 600 MW Boardman plant successfully co-fired with biomass during a test in 2015, but the scheduled December test burn is the largest yet, as plant officials plan to burn biomass-only for a full day. The Bonneville Environmental Foundation, Ochoco Lumber and U.S. Endowment for Forestry and Communities have established a venture, Oregon Torrefaction, to set up two pilot-sized torrefaction lines at the nearby Port of Morrow to produce the torrefied biomass for the December test burn and future testing. Meanwhile HM3 Energy had a big October, opening its torrefied briquette demo plant in Troutdale, Ore. and also announcing that Japanese power producer New Energy Development (NED) has licensed HM3’s TorrB torrefaction technology. NED, which operates two biomass power plants in Japan and is seeking to build more, plans to build a commercial torrefaction

plant in the U.S., using the TorrB torrefaction technology to help feed its Japanese operations. According to HM3 officials, the company’s torrefied briquettes have a 30% higher energy value than raw wood pellets, making them comparable to coal and desirable for co-firing or conversions.

Third Portland Show Is Big Hit About 1,600 industry (non-exhibitor) personnel, representing 110 forest products producer companies and hundreds of individual mill site operations attended The third Timber Processing & Energy Expo held September 28-30 at the Portland Exposition Center.

The event, produced by HattonBrown Expositions, LLC, an affiliate of Hatton-Brown Publishers, Inc., Timber Processing, Panel World and Wood Bioenergy magazines, caters to primary producers of lumber, veneer-plywood and engineered wood products. About 1,100 exhibitor personnel were also in attendance. Attendees from 39 U.S. states, six Canadian provinces, and 20 countries besides the U.S. and Canada came to view 225 exhibitor companies on 60,000 sq. ft. of booth space. Many forest products companies and mills encouraged mill management and operators to attend TP&EE. Weyerhaeuser had 98 in attendance; Sierra-Pacific Industries, 66; Hampton, 46. Stimson Lumber, Alta Forest Products, Seneca, Idaho Forest Group, Roseburg and several other companies also sent large contingents.

December 2016 / Wood Bioenergy

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■ pellet mill

25 ➤ The pulp and drum debarker line. A paper industry, which historBruks bark stacker-reically had a very strong claimer moves fuel to a Dipresence in this area, has effenbacher furnace. Logs contracted quite a bit. Interare broken down using an national Paper (IP) had a Andritz chipper. Drax’s pulp mill in Bastrop with a goal is for 90% of chips to demand of 1.4 million metpass ¼ in. sieve. “The ric tons that closed in 2008; smaller the better,” Lamb IP had another facility 80 says. A Bruks chipper miles south with 1.3 million stacker-reclaimer manages metric tons in demand that chips movement to an Anclosed as well. Those clodritz chip screen and resures created a lot of excess sizer. capacity in the fiber market, Drax uses a Dieffenso when Drax was looking bacher drum dryer to bring at different locations to site the predominately southern this mill, those closures (and yellow pine feedstock by default the fiber availdown to 11.9%. Martin ability) figured prominently. points to some seasonality Those mill closures also in the process, here, especreated a workforce that cially in the case of the had many of the skills winter when sap dries out needed to operate a pellet naturally, but points to a producing facility. Logging consistent chip size to be a and trucking capacity was key in controlling that seastanding by. sonality. “It’s like any “This is one of the best process, if you can reduce workforces I’ve ever been a variability upstream, in the part of,” Lamb says. wood yard, it helps the “The technical abilities in process all the way this area, because of the in- Once ripened through CPM bins, material is sent to one of through,” Martin says. dustry that was here, is inOnce chips are dried, 12 CPM pelletizers. credible. Whether you’re Bruks conveyors move mamaking pellets or something else, the workforce’s ability terial to a primary CPM hammermill island. Material is will make or break you.” broken down to less than 5 mm, with the majority of material being less than 3 mm. Properly sized material drops to dry fiber silos, while oversized material goes to Daily Operations a secondary CPM hammermill line. Drax Biomass has invested $160 million in this facilMaterial from the silos and secondary hammermills ity. Eight managers work alongside four operating comes together to CPM ripening bins and enter one of crews, aptly named D, R, A and X. Each shift works a 12 CPM pelletizers. Six mm diameter pellets are distwo-week rotation and is supported by a dedicated techcharged to CPM coolers before transfer to pellet storage nical mechanic and electrician. silos before being loaded into rail cars. The facility began taking in-woods chips in late AuMartin begins to describe the process as a desire not gust, but still is leaning heavily on low-value round“to ship water.” Meaning, the point for Drax is to make wood—primarily pine thinnings—for its feedstock. the pellets as dense as possible so as to maximize the Drax will gradually increase its use of chips and residuenergy content. als from other manufacturing processes to improve cost He explains, “The really important note about pellets structure and maintain focus on sustainability. Russell is you can control the specifications: moisture content, Hatcher acts as procurement lead for the facility. the ash content; and from the power plant’s perspective, The vertical integration of Drax as both the supplier fuel quality is one of the most important parameters you and consumer is critical here, with regards to quality. control for, because all of that has an impact on how “We report all kinds of details around pellet quality to your boiler and other equipment operates.” the power station. You just can’t do that with green The knowledge shows in Drax’s production numbers chips,” Martin explains. and quality, something Martin feels is closely tied toThe wood yard receives between 80-90 trucks per gether. “If the mill is at a steady state, the quality is day. A Price Log Pro crane unloads trucks and feeds a going to be there. We’ve been able to keep the plant up-

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pellet mill ■

time where we want it to be.” For Lamb, this has been about finding a rhythm and keeping pace. “It’s making sure we’ve got the right people in the right seats on the bus. We’ve made changes, put people in different roles, switched shifts, and it’s worked well.” Both men agree that on the surface, pellet mills are not especially difficult to run; the trick is maintaining them. “The mill doesn’t like to be turned off and turned on,” Martin adds. “You won’t maintain quality.” To minimize interruptions, Drax aims for two scheduled outages per year. The management team has emphasized ownership in the mill, and supervisors are held accountable to their area. Regular meetings allow sharing of ideas of improvement opportunities. “We sit down in the mornings as a group and figure out if there’s anything we didn’t hit, what we can do to make sure we hit the targets; so, we don’t stub our toes on it twice. And then we keep moving,” Martin explains. As part of the morning sit down, a safety topic is discussed. Lamb says that in the various facilities he’s worked in, Drax is by far a standout in terms of its safety programs. “A belt and suspenders approach,” they call it. Coming from a European parent company, Drax operates on a European safety system, which is slightly different than many U.S. facilities. For example, with lock out-tag out, only a select number of people in the plant have the ability to lock a piece of equipment out. “We cannot go out there

Pellets are shipped via rail car to the Port of Baton Rouge.

and lock a piece; only a specific group of trained people can.” Drax Biomass uses a program called Madison, which comes from Drax Power Station, a computer program that allows anyone with

access credentials to view what has happened, safety-wise, the previous week. Thanks to the strict safety policies, Drax’s facility in Louisiana has never had a lost time incident.

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2016 Editorial Index FEBRUARY From The Editors Checkoff Program Decision Due Page 6 Speakers Lineup Set For Wood Bio Conference Page 8 Southampton Another Enviva Gem Page 18 Powering Nova Scotia Sustainability Targets Page 24 Wood Bio Guide Products, Manufacturers Pages 28-46

APRIL From The Editors Wood-To-Energy Discussion Heats Up Page 6

Conference Extraordinaire Wood Bio In Atlanta Page 12

Technology, Regs Highlights Wood Bio Sessions Page 18

Drax Biomass Surging In The South Page 16

Chip Chip Hooray! Wood Procurement Page 25

Making It Big With Small Chips Page 28

Focusing On Quality Frank Pellets Page 30

Turning Rail Ties Into Electricity Page 32

In-Woods Chippers Page 34

OCTOBER

AUGUST

From The Editors We Stole The Line Chipping Stole The Issue Page 6

Checkoff Debate Owen v. Arnold Pages 16-20

Millwood Bros. Logging Still Chipping Away Page 17

Coming On Strong Morehouse BioEnergy Page 22

Chippers Take Center Stage New Bandit CEO John Mocny Page 22-24

Materials Processing Page 26

Dominion Power Branches Out Page 32 Wood Bio Conference Program Keynoters, Agenda, Exhibitors Pages 38-47

JUNE From The Editors Lots Of Buzz Fourth Edition Of Wood Bio Page 6

From The Editors Wood Bio Summary Nothing To Waste Page 6 The Maine (Corinth Pellets) Learning Curve Page 14

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35 Years Strong Peterson Expanding Page 26 The End Of Overhead Dust Problems Page 30

DECEMBER From The Editors Burning Issues From Oregon To Texas Page 6

Product News Rotochopper Demo Page 29

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