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The wood pellet industry in British Columbia has the potential to rapidly expand in the next few years, with the construction of several new plants that will use a revolutionary new technology.
The wood pellet industry in British Columbia has the potential to rapidly expand in the next few years, with the construction of several new plants that will use a revolutionary new technology.
The most significant example of this trend is a deal between Vancouver-based Global Bio-Coal and Coast Tsimshian Resources to make a $30 million investment in the construction of the world’s first commercial-size bio-coal manufacturing plant in Terrace, B.C.
“The main plant will be coming from the United Kingdom and will be built there, but we are hoping to build the next one in B.C.” said John Bennett, Global Bio-Coal Energy CEO.
“We are hoping to build all future plants in B.C. and have enough serious inquiries for between 30 to 60 units. But, this depends on how much fibre is available.”
Global Bio-Coal signed an agreement with Vitol Broking Limited of London England to build a facility that uses a new patented technology to produce bio-coal from waste wood biomass.
According to Bennett, the new manufacturing technology, which was invented by a Aberdeen-based Rotawave Ltd., is set to revolutionize the international market for biomass that comes from forestry residues.
“The white pellet industry (in Canada) was building up nicely with 1.5 billion tonnes being produced annually,” said Bennett. “But, the advent of bio-coal for use in electricity generation will cause the market for white pellets to gradually change to black pellets.”
The new process, called the Rotawave Targeted Intelligent Energy System (TIES), uses microwaves and recycled heat to cook wood residues into high energy bio-coal.
Rotawave claims that the TIES technology will, for the first time, allow significant quantities of biomass wood fuel to be mixed with coal and co-fired in existing coal-fired power stations.
“The plant itself represents less than 50 per cent of what is required in terms of equipment,” said Bennett. “Equipment will be needed to bring the fibre to the site and handle materials, such as conveyors and grinders. There will also be buildings for open storage.”
The Coast Tsimshian will be responsible for the wood supply, providing the land for the plant and helping with the day to day management of the facility.
The engineering work for the plant is currently underway and Bennett said he hopes to start construction this spring.
The plant is scheduled for completion in the summer of 2012.
A rail spur will be built to connect the plant to the adjacent CN line, so the product can be easily taken by train for export through Prince Rupert.
The end users of the products are likely to be power stations in continental Europe, where there are subsidies for power companies to reduce their consumption of coal.
“Coal-fired power plants in Canada must also go from 100 per cent to 40 per cent coal by 2015 and the only substitute is black pellets. So, the market is expanding,” he said.
Black pellets can be easily ground into dust, which allows power companies to mix them with coal.
The Wood Pellet Association of Canada is also working to find a new technology that can manufacture black pellets.
“We are evaluating these technologies and are at the point where we will select one and build a pilot plant on a small scale,” said Gordon Murray, executive director of the Wood Pellet Association of Canada. .
“If successful, we will roll this technology out across Canada to our members.”
Murray said initial plant will cost $12-15 million and will probably be built in Vanderhoff, near Prince George.
Currently, the major source of pellet material is from other industrial processes, such as sawmilling.
However, another potential source is standing dead wood, or lodgepole pine trees infested by the mountain pine beetle.
“The beetle wood is the best fibre we can use because it is dryer than other wood.” said Bennett.
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