Study proposes local energy corporation

The idea will be discussed at a meeting Wed. Nov. 26 at 7 p.m. in James Horsfall Memorial Hall at Cornwallis Park.

Private woodlot owners, contractors and investors have been invited to the meeting to talk about renewable energy sources in ‘biomass’—wood pellets and wood chips.

Organizing the meeting is the Annapolis Digby Economic Development Agency, which commissioned a study this July to look at the feasibility of establishing a wood pellet and woodchip production facility within the region.

The study was completed last month after examining raw material availability in the area. Potential sources examined included sawmill residues, woodlot harvesting residue, pre commercial thinning residues, pulpwood, non-merchantable tree species, and agricultural fuel crops.

The analysis indicated that a local pellet market of at least 10,000 tonnes per year could be developed.

Analysis of the resource and potential markets indicated that a pellet plant with a production capacity of five tonnes per hour could be established. Operating a plant of this capacity for five shifts per week would result in an initial production capacity of 10,000 tonnes per year. At maximum capacity of 20 shifts per week the plant could produce 40,000 tonnes per year.

Initial capital cost estimate of the plant is $4.25 million. A complementary chipping operation could be established for an additional investment of approximately $250,000 but the potential market size and growth opportunities are considered to be limited. “Unlike other pellet mills developed in the past in this province that have focused primarily on export markets, this plant is intended to focus on the local market first,” said the study’s authors. “The high prices and volatility of the market for fuel oil have convinced many heating system owners and operators to look for lower cost alternatives.”

The study notes that a pellet producer in the local area that offers deliveries as its primary market would be unique to Nova Scotia and should be able to develop a high degree of customer loyalty once initial relationships are developed.

An examination of potential markets included local institutional and commercial pellet markets within a 200-kilometre radius of a proposed plant site in the Digby area and woodchip markets within 150 kilometres.

Some of the potential local markets examined included schools, community colleges, universities, and manufacturing facilities. Similar local markets were identified for woodchips although only larger facilities with full-time boiler plant operators were considered for woodchips.

The study concludes that wood pellets offer a deep price discount compared to heating oil. For a typical medium-sized school, the fuel oil savings associated with adding a supplemental pellet fired heating boiler will pay back the entire capital cost of the new heating system in less than two years.

To register for the meeting at Cornwallis Park, visit www.annapolisdigby.com and click on ‘register here’ in the homepage article or call Kenan at (902) 638-4011.