VT Department of Forests, Parks & Recreation

Wood Energy in Vermont

January 2005VT Department of Forests, Parks & Recreation

VT Department of Forests, Parks & Recreation

Non-forest Land

Forest Land

Vermont’s Forests

4,630,300 acres of forestland

78% of the state

VT Department of Forests, Parks & Recreation

Federal6%l

OtherPublic

8%

ForestIndustry

6% Farmers6%

Corporations11%

Private

63%

Distribution of Timberland

Area by Ownership

VT Department of Forests, Parks & Recreation

Acres Owned

Number of Owners

Total Acres

1-9 40,900 111,900

10-49 19,700 360,700

50-99 10,800 699,200

100-499 8,500 1,496,700

500-999 500 286,400

1,000+ 100 846,900

All size classes

80,500 3,801,800

Number of Private Timberland Owners and Acres Owned, by Size Class, 1993

The number of owners with 50 acres or less has doubled since 1983.

VT Department of Forests, Parks & Recreation

Vermont’s Annual Forest Product Harvest

• Total Harvest in 2002… 791,000 cords (sawlogs, pulpwood & chips converted to cords). In addition, +/- 250,000 cords of firewood annually.

• During the last decade, statewide, forest growth volume has been nearly been double that of removals (1.8 : 1).

VT Department of Forests, Parks & Recreation

•VT Forest Resource Harvest Summary- 2002•Forests of the Green Mountain State, USFS-2003

VT Department of Forests, Parks & Recreation

Harvest by Product

Firewood19%

Pulpwood30%

Sawlogs39%

Whole-Tree Chips6%

Mill Residues6%

Vermont Forest Resource Harvest Summary… 2002

VT Department of Forests, Parks & Recreation

Wood Fuel: ResidentialResidential Fuel Wood Survey: 1997-98• 31% of VT households burned some

wood (down from 48% in 85-86 survey).• More households reported use as

supplemental than primary fuel.• Oil, Wood, Natural Gas/Propane (in

order) were most used fuels. 92-98, oil, wood, electric decreased… propane/natural gas increased.

VT Department of Forests, Parks & Recreation

VT Department of Forests, Parks & RecreationVT Department of Forests, Parks & Recreation

Wood Fuel: Electric Utilities

• In Vermont, 2 wood energy plants use roughly 500,000 tons of wood fuel (mill & whole-tree chips, sawdust & bark) annually.

• +/- 60 Megawatts

VT Department of Forests, Parks & Recreation

Wood Fuel: Industrial Co-Generation & Heating

• Wood Industry … about 20 industrial heating and 3 cogeneration systems

• 175,000 tons residues

VT Department of Forests, Parks & Recreation

VT Department of Forests, Parks & Recreation

Wood Fuel: Biomass District Energy

• Three state office complexes heated by central boiler plants with wood chips.

• These utilize roughly 9,000 tons of chips per year.

VT Department of Forests, Parks & Recreation

VT Department of Forests, Parks & Recreation

Wood Fuel: Institutional & Commercial Systems…

• Three additional state buildings and 26 schools combined use roughly 14,000 tons of chips

VT Department of Forests, Parks & Recreation

VT Department of Forests, Parks & Recreation

Vermont Wood Fuel Use in Context…

• All wood fuel use in Vermont (including residential) roughly 1.3 million tons.

• Berlin, NH paper mill utilized about 1.5 million tons of wood per year (nearly 500,000 cords and 300,000 green tons chips).

VT Department of Forests, Parks & Recreation

VT Department of Forests, Parks & Recreation

Why Vermont:

Advantages and challenges of utilizing wood for energy in

Vermont.

VT Department of Forests, Parks & Recreation

Environmental

• Wood systems of less than 90 boiler horse power do not need air quality permits.

• Ash is generally considered non-hazardous.

• Utilities must adhere to harvesting standards.

VT Department of Forests, Parks & Recreation

Utility-Scale

• Larger plants can meet stringent air quality standards more economically.

• Year-round demands supports harvesting infra-structure.

• Difficult to site & permit (availability of cooling water, neighbors, traffic issues)

VT Department of Forests, Parks & Recreation

VT Department of Forests, Parks & Recreation

Industrial Heat/ Cogeneration

• Wood industry can often use residues produced on-site.

• Cogeneration requires high demand for heat to be cost effective.

• Capital costs can be high. Price paid for excess power is very low.

VT Department of Forests, Parks & Recreation

VT Department of Forests, Parks & Recreation

Industrial Heat/ Cogeneration

• Seen as a new, risky enterprise.

• Fluctuating fuel prices affect payback.

• Additional staffing may be required, though in most cases “boiler operators” are not required in Vermont.

VT Department of Forests, Parks & Recreation

VT Department of Forests, Parks & Recreation

Institutional/ Commercial

• 15+ years of experience with schools.

• Heating cost savings is commonly 25-40% savings compared to oil.

• 20 year life-cycle-cost typically less than oil.

• Automated systems require minimal maintenance.

VT Department of Forests, Parks & Recreation

VT Department of Forests, Parks & Recreation

Institutional/ Commercial

• High capital costs, but “State-Aid” is 90% of incremental cost.

• Seasonal demand makes supply more difficult.

• Requires self-unloading vans and chip storage.

• High-tech emissions controls are cost prohibitive.

VT Department of Forests, Parks & Recreation

Biomass District Energy

• Heat could be provided by existing boilers.

• Large boilers improve efficiency and cost effectiveness of emission control systems.

• High initial capital cost and reliability concerns.

• Customer’s resistance to change.

VT Department of Forests, Parks & Recreation

Wood Chip Supply

• Excellent market for low-grade wood.

• Seasonality & delivery issues with small systems.

• Competition from other markets (pulp).

• Lack of logging infrastructure?

VT Department of Forests, Parks & Recreation

Wood Chip Supply

• Seasonal demand.

• Requires self-unloading vans and chip storage.

• Increased value/ reduced trucking may not offset handling and marketing costs.

• Small scale customers can be difficult.

VT Department of Forests, Parks & Recreation