fort mcpherson biomass district heating project · the fort mcpherson biomass project was developed...

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TECHNICAL SOLUTIONS Strong vendor relationships and many feasibility studies have brought the project to technical functionality; crucial for long-term success. - Strong 24/7 support from Fink Machines (boiler supplier) for ongoing troubleshooting and operations - Extensive feasibility and impact studies with GNWT Energy and Natural Resources (4+ years) - Challenges with consistent heat supply to buildings with large cordwood; led to confusion with customer Fort McPherson Biomass District Heating Project FAST FACTS: HAMLET OF FORT MCPHERSON Gwich’in community (pop. 808 - 93% Indigenous) Located 120km Southwest of Inuvik (latitude 67°N) Abundant supply of local willow along banks of Peel River BIOMASS DISTRICT HEATING SYSTEM 85kW KOB tri-fuel [cordwood, pellets, or wood chips] 101,130kWh of heat in first season, offset 11,000L of heating oil Designed for 50% of peak-heating load, with oil burners Supply heat to Band Office and community health centre Intention to create local biomass industry (wood chips) PROJECT OBJECTIVES Heat two local buildings with biomass (eventually wood chips) Create local jobs (e.g. harvesting willow, heat plant manager) Improve local economy by retaining dollars in community Develop skills, knowledge, and capacity in Fort McPherson Reduce dependence on imported fuels, reduce GHG emissions Enable a more self-reliant economy , enhance community pride Test the economic feasibility of a local biomass industry Understand price of local wood chips, vs. imported oil or pellets Apply traditional knowledge, resources and values through establishment of a local sustainable energy industry POLICY INNOVATION The Fort McPherson biomass project was developed with supportive policy promoting use of clean biomass heating across northern Canada. - NWT Energy Action Plan: reduction of fossil fuels, reduce energy costs, use of renewable energy (2013) - NWT Biomass Energy Strategy & Greenhouse Gas Strategy both enable biomass projects (2011/2012) - Financial support from AANDC ecoENERGY, GNWT, and CanNor’s Targeted Investment Program Photo: Lawrence Keyte LOCAL CAPACITY Since inception, the project has has focused on local economic development by establishing skills and jobs in the biomass industry. - Leadership from project champion and enthusiastic support from Teetl’it Gwich’in Council members - Community education and training workshops for residents with Arctic Energy Alliance and GNWT ENR - Local woodchip supply chain under development and expected to replace pellet fuel in 2016/2017 CHALLENGES ENCOUNTERED Establishing supply chain (transition from pellets to woodchips) High capital cost for project development and implementation Limited local capacity (e.g. accounting, maintenance/operations) FACTORS FOR FUTURE SUCCESS Continued community support, influenced by traditional connection to harvest of wood for heating, drying meat and fish, and shelter. Ongoing focus on new local employment, through harvesting, processing, operating biomass system, with a local supply chain Expand pilot project; always start small and only expand when ready Continued support from project champions within community (Johnny Kay), government (Bryan Pelke, Matt Kennelly), and NGOs such as the Arctic Energy Alliance (John Carr, Margaret Mahon) The Advanced Energy Centre is grateful for generous input from Johnny Kay (Teetl’it Gwich’in Council), Margaret Mahon and Sheena Adams (Arctic Energy Alliance), Jim Sparling (GNWT), Jen Hiscock, (NRCan), Berkhardt Fink, and the thesis of Lawrence Keyte (Trent University)

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Page 1: Fort McPherson Biomass District Heating Project · The Fort McPherson biomass project was developed with supportive policy promoting use of - NWT Energy Action Plan: reduction of

TECHNICAL SOLUTIONS Strong vendor relationships and many feasibility studies have brought the project to technical functionality; crucial for long-term success. - Strong 24/7 support from Fink Machines (boiler supplier) for ongoing troubleshooting and operations - Extensive feasibility and impact studies with GNWT Energy and Natural Resources (4+ years) - Challenges with consistent heat supply to buildings with large cordwood; led to confusion with customer

Fort McPherson Biomass District Heating Project

FAST FACTS: HAMLET OF FORT MCPHERSON •  Gwich’in community (pop. 808 - 93% Indigenous) •  Located 120km Southwest of Inuvik (latitude 67°N) •  Abundant supply of local willow along banks of Peel River

BIOMASS DISTRICT HEATING SYSTEM •  85kW KOB tri-fuel [cordwood, pellets, or wood chips] •  101,130kWh of heat in first season, offset 11,000L of heating oil •  Designed for 50% of peak-heating load, with oil burners •  Supply heat to Band Office and community health centre •  Intention to create local biomass industry (wood chips)

PROJECT OBJECTIVES •  Heat two local buildings with biomass (eventually wood chips) •  Create local jobs (e.g. harvesting willow, heat plant manager) •  Improve local economy by retaining dollars in community •  Develop skills, knowledge, and capacity in Fort McPherson •  Reduce dependence on imported fuels, reduce GHG emissions •  Enable a more self-reliant economy, enhance community pride •  Test the economic feasibility of a local biomass industry •  Understand price of local wood chips, vs. imported oil or pellets •  Apply traditional knowledge, resources and values through

establishment of a local sustainable energy industry

POLICY INNOVATION The Fort McPherson biomass project was developed with supportive policy promoting use of clean biomass heating across northern Canada. - NWT Energy Action Plan: reduction of fossil fuels, reduce energy costs, use of renewable energy (2013) - NWT Biomass Energy Strategy & Greenhouse Gas Strategy both enable biomass projects (2011/2012) - Financial support from AANDC ecoENERGY, GNWT, and CanNor’s Targeted Investment Program

Photo: Lawrence Keyte

LOCAL CAPACITY Since inception, the project has has focused on local economic development by establishing skills and jobs in the biomass industry. - Leadership from project champion and enthusiastic support from Teetl’it Gwich’in Council members - Community education and training workshops for residents with Arctic Energy Alliance and GNWT ENR - Local woodchip supply chain under development and expected to replace pellet fuel in 2016/2017

CHALLENGES ENCOUNTERED •  Establishing supply chain (transition from pellets to woodchips) •  High capital cost for project development and implementation •  Limited local capacity (e.g. accounting, maintenance/operations)

FACTORS FOR FUTURE SUCCESS •  Continued community support, influenced by traditional connection

to harvest of wood for heating, drying meat and fish, and shelter.

•  Ongoing focus on new local employment, through harvesting, processing, operating biomass system, with a local supply chain

•  Expand pilot project; always start small and only expand when ready

•  Continued support from project champions within community (Johnny Kay), government (Bryan Pelke, Matt Kennelly), and NGOs such as the Arctic Energy Alliance (John Carr, Margaret Mahon)

The Advanced Energy Centre is grateful for generous input from Johnny Kay (Teetl’it Gwich’in Council), Margaret Mahon and Sheena Adams (Arctic Energy Alliance), Jim Sparling (GNWT), Jen Hiscock, (NRCan), Berkhardt Fink, and the thesis of Lawrence Keyte (Trent University)

Page 2: Fort McPherson Biomass District Heating Project · The Fort McPherson biomass project was developed with supportive policy promoting use of - NWT Energy Action Plan: reduction of

Project capacity

Understand issues, experiment to discover

solutions, own and share solutions

Outcomes:

-  Local empowerment -  Sustainable revenue -  Scaled-up projects

Launch  Forest  Management  nego1a1ons,  training  with  

Teetl’it  Gwich’in  Council  (TGC)  

Projected  revenue  from  heat  sales  to  health  centre  

Local  project  champion  (J.  Kay)  aFends  biomass  conference      

Supply-­‐chain,  building  a  new  local  economy  

Heat  more  buildings  in  Fort  McPherson  (band  council  

office,  homes)  with  biomass  

Develop  more  local  capacity  for  boiler  opera1ons  &  maintenance  

Engage  AEA  for  promo1on  and  biomass  market  development  

Local  Gwich’in  community  engaged  in  tradi1onal  wood  harves1ng,  hea1ng,  cooking,  processing.  

Solutions

Understand local needs, brainstorm with community

members, integrate with policy and regulation for

effective solutions

Outcomes:

-  Industry leadership -  Tech standardization -  Competitive market

Launch  vendor  engagement  with  Fink  Machines  

Feasibility  studies  with  GNWT  (support  from  AEA)  

Encourage  vendors  to  showcase  case  study  

Learning  and  knowledge  transfer  at  conference  

Strong  ongoing  commercial  support  from  Fink  Machines  on  technical  challenges  

Start  small  (pilot  project)  and  scale  strategically  

Design  for  fuel  flexibility  and  allow  for  mul1-­‐fuel  supply.  

Policy and Regulations

Understand problem, facilitate controlled

experimentation, enable market development for

solutions

Outcomes:

-  Private financing -  Market mechanisms -  Evolution of policy

Finalize  contract  details  with  Public  Works  (GNWT)  

NWT  Biomass  Energy  Strategy  (2010)  leads  to  Forest  Industry  

Biomass  Ini1a1ve  (FIBI)    

NWT  Energy  Ac1on  Plan  (2013)  focuses  on  reducing  cost,  increasing  renewables  

Funding  from  CanNor  Targeted  Investment  Program,  Government  

of  NWT,    AANDC  ecoENERGY  

NWT  Greenhouse  Gas  strategy  sets  targets  for  2020/2030  

Understand   Co-Create   Prototype   Transition and Scale  

Fort McPherson Biomass District Heating Project

The Fort McPherson biomass project can be viewed in three layers (policy, solutions, and capacity), each equally important to scaling up renewable energy solutions in remote communities. All three ‘dimensions’ of systems change should be addressed at the same time to enable transformation of a complex sector.

Transi1on  from  pellets  to  local  woodchips  

Expand  contrac1ng  to  include  Band  Council  office      

Finalize  contract  details  with  Public  Works  (GNWT)  

Government  funding  applica1ons  with  support  from  local  champion    

Installa1on  and  commissioning  of  mixed-­‐fuel  biomass  boiler  

Training  workshops  with  AEA,  community,  Fink  Machines  

Emphasis  on  community  economic  development  (opera1ons,  supply  chain,  maintenance,  cost  savings)  

Engagement  with  GNWT  and  project  champion  (and  TGC)