Canadian Wood Pellet Opportunities 2017 beijing v... · Canadian Wood Pellet Opportunities ......
Transcript of Canadian Wood Pellet Opportunities 2017 beijing v... · Canadian Wood Pellet Opportunities ......
Vaughan Bassett - Vice President, WPAC.- Senior Vice President, Pinnacle Renewable Energy, Inc.
Canadian Wood Pellet Opportunities
� Renewable energy, cost comparisons, the wood pellet market and Canada in context.
� Why Canada?� Fibre� Manufacturing� Quality� Logistics
� Solid fuel choices and comparisons...
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Levelized cost of Energy for each energy source
97.2
25.12
78 91.2570.7
186.6
44.9
9.518.4
56
9.2
3.2
12.4
16.259.9
43.3
14.9
38.28
45.19
11.335
0
50
100
150
200
250
300
350
Coal Natural Gas Nuclear Wind Solar PV Solar Thermal Biomass
US DOECost of Energy by Source ($/MWh)
Capital Cost Subsidies Fixed O&M Variable O&M Source: US DOE 2015
Fossil Fuel Renewable
Comparison of Renewable Technology
costs in the USA
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Total systems costs vs competing technologies
Source: NERA 2015
Comparison of Renewable Technology
costs in the UK
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Sources: Hawkins Wright, REN 21, Future Metrics
1.7 2.2 2.64.0 5.2
7.69.7
11.714.5 15.7
18.3
22.4 23.626.1 27.0
0.0
5.0
10.0
15.0
20.0
25.0
30.02010 to 2015 average annual growth – 14%
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Power generation
Efficiency ~ 40%
Heat, & hot water
Residential/commercial/institutional
Efficiency ~ 90%
Animal bedding & oil
patch absorbent
400% by weight
Electricity 13M tonnes Heat 13M tonnes Other 1M tonnes
Total Canadian Capacity About 4 million Tonnes
Pinnacle Pacific Bioenergy Other BC Central Canada Eastern Canada
BC has 58% of
Canadian
Wood
Pellet Capacity
42% of Canadian
capacity would
logistically flow
through the East
coast.
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CANADIAN WOOD PELLET SECTOR• 44 wood pellet plants 4,000,000 tonnes annual capacity• 1,000,000 tonnes new capacity, last 18 months 400,000 tonnes under construction• 400,000 tonnes under construction Two west coast export terminals
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1. Canfor/Pacific Bio – Fort St John2. Canfor/Pacific Bio – Chetwynd3. Pinnacle/Canfor – Houston4. Pinnacle – Burns Lake5. Premium Pellet – Vanderhoof6. Pacific BioEnergy – Prince George7. Pinnacle – Meadowbank8. Pinnacle – Quesnel9. Pinnacle – Williams Lake10. Pinnacle – Armstrong11. Princeton Pellet - Princeton12. Pinnacle/Tolko – Lavington13. Diacarbon – Merritt14. La Crete Sawmills – La Crete15. Pinnacle – Entwistle16. Foothills FP – Grande Cache17. Vanderwells – Slave Lake
= 3 million tonnes annual capacity
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1011171822222528
91208
310347
494815
0 200 400 600 800 1000
New ZealandGermany
FranceChile
MalaysiaFinland
JapanSweden
IndonesiaChina
United StatesCanada
BrazilRussian…
Data source: FAO, Global Forest Resources Assessment 2015.
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2015 Forest Certification
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166
52 47 41
23 19 16 14 12 10 9 8
CANADA BC USA Russia Sweden Finland Belarus Poland AustraliaNorway Brazil Germany
mill
ions
of h
ecta
res
cert
ified
Source: www.certificationcanada.org as of Dec 31/15
*
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� Renewable fuel� Made from compressed wood fibre.� Lignin binds the fibre. No adhesives needed.
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Sawmilling Residues
Harvesting Residues
Roundwood
SawdustShavingsBark
Logging residueThinningsTrimmings
UndersizedDiseasedBurnt
80%
15%
5%
Pellet Processing
Grinding
Chipping / Grinding
� Clean, Sustainable fibre.� Environmental compliance.� Rule of law and fair treatment of workers.� Health and safety.� Preventative maintenance.� Best Available Technology.� Quality control.
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High speed, low impact loadingto 2,000tph
Full range of Handy to Panamax vessel sizes
Enclosed 100t railcars
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2016 exports: 2.4 million tonnes2015 exports: 1.6 million tonnes
983
107 62
218 205 150
1,206
228
80 205
86 49
1,664
144 272
170 73 49
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
UK Belgium Japan US Italy S Korea
2014 2015 2016
� Grate fed or fluidized bed combustion systems� Co-firing with coal in PC boilers� Conversion of PC boilers to 100% biomass
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OPG’s�240�MW�ATkokan�Ontario�Plant�
Full�firing�on�industrial�wood�pellets�Ontario Power Generation’s Atikokan Power Plant: converted from coal, now firing on 100% wood pellets
� Moisture content around 4-6%� Calorific value as received >18 GJ/tonne� Ash < 3%, N <0.5%, S <0.1%, Cl <0.1%� Durability >98%� 6mm diameter, <40mm length
� Ash effect on boiler is usually benign� PC power plant conversion is relatively easy� Flexible – can use in any kind of boiler
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� Moisture content around 45-60%.� Calorific value as received around 6 to 10
GJ/tonne.� Ash < 1%, N <0.5%, S <0.1%, Cl <0.1%.
� Ash effect on boiler is usually benign.� Low cost, but expensive to transport due to
high moisture and low bulk density.� Not suitable for PC boiler since chips can’t
easily be pulverized.Wood Pellet Association of Canada 34
� Sustainability concerns.� Difficult to aggregate.� Normally up to 15% moisture and 10% ash.� Calorific value similar to wood.� N 5-6%, S <0.3%, Cl <0.4% as fired.
� High quartz content.� Will not pulverize.� Not suitable for PC boilers.
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� Quality and cleanliness variability.� Lower ash melting temperature and rich in
silica means increased boiler slagging and fouling.
� More problems with ash disposal.� Undesirable Nox and Sox emissions.� Higher Cl: boiler surface corrosion.
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� Screening required to remove waste / extraneous material – itself a disposal issue.
� Higher quartz content causes erosion of fuel handling, firing, and ash handling equipment.
� At low co-firing percentages, boiler effects are minimal.
� As percentages increase, effects are magnified.
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� Almost no commercial production today.� Does not reduce total supply chain
investment. It merely pushes it back onto pellet producers.
� Pellet producers will be willing supply black pellets if generators are willing to pay substantially more than for white pellets.
� Canada has a vast forest resource that is the world’s most sustainable.
� Canada is a dependable exporter of high quality wood pellets.
� We are interested in long term business relationships.
� Asia is highly attractive to us.� Let’s talk.
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For more information:
Contact : Gordon [email protected]
+1-250-837-8821
Contact : Vaughan [email protected]
+1-250-617-0305
Visit:Wood Pellet Association of Canada at:
www.pellet.org
and
Pinnacle Renewable Energy Inc. at:
www.pinnaclepellet.com
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