Wood Heat Conversion Analysis Project Summary
Wood Chip Heating in Western Nova Scotia: Final Report Summary
In an effort to create markets for low-grade wood in Western Nova Scotia, WWSC has asked the Climate Forest Company, as well as ACFOR to explore the opportunities and challenges of wood chip heating in Western Nova Scotia. The following summarizes the main components of the report as well as the main “take-aways” that arose from their research.
Component 1: Policy Analysis
This component included a review of all municipal, provincial and federal regulations and policies that might influence the development of a wood chip heating sector in western NS. Project Consultants drew on their experience to identify any regulations that could be obstacles to a thriving industry, as well as to make recommendations as to best practices in adhering to these policies.
· Main Take-Aways:
o No barriers to securing certified, approved boilers
o It is worth extra costs of ensuring boilers are installed in a compliant way
o Although shortcuts are possible, they come with long-term costs
Component 2: Grant Analysis
Grant programs provided by municipal, provincial and federal grant programs were reviewed. For the purpose of this exercise, it was determined that grant programs that support specific aspects of the supply chain, installation and capital costs related to boiler systems and the financing of any aspect of the aforementioned would be included and reviewed.
· Main Take-Aways:
o Municipalities are in the best position to retrofit and secure grants
o Grant funding is available for variety of clients
o not-for-profit clients easiest fit for majority of grants
Component 3: Regional Competition Review
The purpose of this component was to provide a snap-shot of the current local and regional wood heat contracting landscape in western NS.
· Main Take-Aways:
o Lack of integration between suppliers of fuel and heat contractors in NS means little chance of sincere competition.
o Finding the right partner that brings design, building and operational experience will be of benefit to WWSC
Component 4: Equipment Analysis
This component provided a description of various sizes of wood chip boiler installations available in Canada. These are ranging from the large residential scale to a 1 MW district energy system and feasibility for Western Nova Scotia installations.
· Main Take-Aways
o residential-scale boiler systems are cost-prohibitive in terms of both capital and operational
Component 5: Ranked Consumer Review
This component is meant to provide WWSC Energy Committee and their members with the information needed to understand the different factors that go into evaluating the viability of a facility for converting to wood chip heating. Being able to narrow down the list of potential conversions is critical to efficiently allocate recruitment resources
· Main Take-Aways
o A good candidate for wood chip heating is:
- >80,000 sq. ft;
- Does not have access to nat. gas;
- Year-round heat load;
- Use hot water to move heat;
- Has lots of space on site for boiler building;
- Is located close to other consumers of heat for district heating
Component 6: Wood Supply Chain
This component included interviews with various contractors that participate in some aspect of the wood supply chain in western NS. The purpose of these interviews was to help determine what capacity currently exists to support the development of a wood chip heating sector in western NS. Although contact was not able to be made with all contractors the interviews provided a good snap-shot of just how much interest and capacity there is to support a wood chip heating sector in western NS.
· Main Take-Aways
o Two yards (in Digby and Bridgewater) with 50-km service radius could catch 70% of WWSC members
o There is abundant chipping capacity available
o An abundant supply of fuel-wood if WWSC has a short-fall
Component 8: Recommended Business Models
The Project Consultants were asked to make a recommendation as to what the best role is for the WWSC to play in any emergent wood chip heating sector. The goal of the Project Consultants was to propose a model whereby the WWSC could secure reliable and consistent markets for low-quality fibre from their member’s land in such a way that limits their exposure to downward price pressures. In the past, such downward pressure on price has driven a ‘race to the bottom’ in forestry, with the lowest cost producers out competing all others. The outcome of such a race, it has been observed, is always reduced return to contractors and landowners and compromised forest management practices. It was critical to the Project Consultants that they propose a way that the WWSC can avoid these pitfalls while still benefiting from any emergent wood chip heating sector in western NS.
· Main Take-Aways
o Partner with 1 or more heat contractors
o Provide a guaranteed supply of quality wood
- 15%-20% premium for dry, clean wood
o Make market-based adjustments to the price of wood supplied
o Explore member-sourced financing
Component 9: Case Studies
The Project Consultants explored several cases in which a wood chip heating sector could be practical in Western Nova Scotia. These considered eligible locations to switch to wood chip heating, existing heat sources in these locations, cost of installation, and annual fuel needs among other considerations.
· Main Take-Aways
o 17 Buildings Scoped (3 district systems)
o 14.1 MW total capacity
o 7,800 tonnes annual demand
o 3.7 million litres oil offset
o $15.4 million in investment
Component 10: Co-Benefit Analysis
This component brings together research that has been completed that substantiates the benefits that can accrue to the local and provincial economies and communities from an efficient wood chip heating sector. There were many good reasons to support the development of a wood chip heating sector in Nova Scotia. Be it the reduction of imported fossil fuels, creation of local jobs improved forest management opportunities or the reduction of greenhouse gas emissions, the value of a robust wood chip heating sector has myriad benefits to local communities.
· Main Take-Aways
o Economic/social benefits
- One boiler results in $50,000 in wages per install; $20,000 annual wages; $41,000 direct, indirect and induced economic impact
o Forest benefits
- Creating access to markets for low-quality fibre, forest managers can allow the best trees to have the space to breathe and thrive for decades to come.
Component 11: Community Profiles
This component described some existing community initiatives which are promising when considering moving to a wood heat sector in Western Nova Scotia. Over the course of the project, several community initiatives were encountered. The Project Consultants felt that these initiatives warranted being recorded within the scope of this project.
· Main Take-Aways
o Energize Bridgewater has scoped district heating for the town
o Digby sees wood heat as integral to their energy strategy
o Western Regional Enterprise Network needs to better understand supply chain to become confident with wood heating
