Wood pellet plant stirs local interest

A proposal for a community-owned wood pellet plant in the Digby area brought a surprising amount of interest—and some disappointment—at a Nov. 26 meeting in Cornwallis Park.

An overflow crowd of about 150 people attended the meeting organized by the Annapolis Digby Economic Development Agency. i>www.annapolisdigby.com

Only about 75 people had been expected, by organizers, but people showed up from as far away as Meteghan, Yarmouth, Kentville, and even Antigonish.

As many as 50 people signed expressions of interest in further exploration of the idea, and a follow-up meeting is expected within weeks.

The proposed pellet plant would use waste wood to make commercial grade pellets for the domestic market and, at least initially, for export to Europe where wood pellets are a major energy source.

A consultant’s firm hired by ADEDA has submitted a plan for a $4.4 million plant that could produce 30,000 tonnes of pellets per year, create 16 jobs at the mill, and provide opportunities for numerous woodlot owners in Digby and Annapolis counties.

ADEDA commissioned the consultant’s study at the request of some local woodlot owners who were looking at opportunities with underutilized species and waste wood. ADEDA eventually settled on wood pellet production as the best direction to take.

Some of the meeting’s enthusiasm ebbed when consultant David Lea of CBCL Limited Engineers www.cbcl.ca said the value of wood from local woodlots—or biomass—might be no more than $30 a tonne, delivered to the plant.

Stephen Cole, a Middleton lawyer who operates a woodlot, said that with demand for pulpwood the best it’s been in 20 years, the timing is bad for a pellet plant that would want the same wood.

The price roadside for pulp is currently $35 per tonne and, depending on the weight of the wood, it works out to approximately $70 a cord roadside, he said.

Cole also questioned where financing could be found for the $4.4 million plant.

ADEDA's economic development officer for renewable energy, Terry Thibodeau, said afterwards that capital costs of equipment may be less than projected, and the pellet plant would be looking not for pulpwood but for waste wood and wood from currently unmarketable species.

Thibodeau said feasibility of the proposed plant would hinge on convincing businesses, institutions, community leaders, and the general public of the benefits of converting to biomass fuel to heat buildings. He noted that long-term energy security with pellets, and substantial savings on heating costs are convincing arguments.

The idea of a community-owned plant isn’t the only option, Thibodeau said. A co-op approach might be considered and ADEDA is working with several commercial producers interested in establishing a pellet mill in the area.

The former Shaw Wood plant at Cornwallis has been suggested as a possible site, not least because it has a large paved parking area that could be used for wood storage.

Also at the meeting Ken Thomas, general manager of Nashwaak Valley Wood Energy in New Brunswick, outlined the formation of a similar, albeit smaller, operation.

An audio-visual recording of the meeting was produced, and will be posted soon on the ADEDA website at www.annapolisdigby.com