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Bio Mass for Fort Drum, NY

Started by submarinesailor, February 20, 2014, 04:52:19 PM

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submarinesailor

Don't know if it will help any of you loggers in upstate New York or not.  But this was announced today:

ReEnergy to be awarded 20-year contract to supply biomass power to Fort Drum
By Gordon Blockc

The on-site ReEnergy Black River biomass facility will likely supply power to the post for the next 20 years.

The Army intends to award ReEnergy Holdings LLC the contract to supply the post up to 28 megawatts of power. If finalized, the contract will be the largest renewable energy project taken on by the Army to date.

Terms of the contract were not immediately available, but initial estimates place the value of the contract at several million dollars each year.

The Defense Logistics Agency Energy said its notice of intent will allow itself and ReEnergy to "move into the development process, which can ultimately result in a formal contract award."  This is the DOD agency I work for.  Our renewables branch has performed a lot work to get this requirement to this point - a lot of work!

ReEnergy took over the 2nd Street Southwest site in March 2012 and spent about $34 million converting the idled coal plant into one that can burn a wide range of wood products and forestry residues. The 60-megawatt plant officially opened last May.

"We're very pleased to reach this milestone," said Larry D. Richardson, the company's CEO. Mr. Richardson said he hoped that the deal could be closed within the next 90 days, but that there was no set timetable for closing the deal.

The company employs more than 100 people between the facility and its forestry collection operations.

When it opened, the company estimated it would purchase about $11 million in wood a year from local logging companies.

U.S. Sen. Charles E. Schumer, D-N.Y., praised the news in a statement about the Army's planning.

"The Army's plan to award ReEnergy a 20-year contract is great news for this marquee north country energy company and for Fort Drum, which will now have reliable access to clean, low-cost power for years to come," he said. "I look forward to working with all relevant entities to see that the Army makes this official, since this deal is so mutually beneficial."

Sen. Kirsten E. Gillibrand supported the decision, saying national and energy security go hand in hand.

"When we equip Fort Drum with its own source of clean, homegrown energy, we can help the base cut energy costs, cut pollution and cut ties to foreign energy, all while strengthening local businesses like ReEnergy to support local jobs, and help grow the north country's economy," she said.

Rep. William L. Owens said he was "pleased the Army continues to recognize the importance of secure, renewable energy to our installations."

Prior to the contract announcement, the facility had already received a wide range of state and north country support. The company already sells renewable energy credits through the state's Renewable Portfolio Standard, an initiative to obtain 30 percent of the state's electricity from renewable sources by 2015. It also had received a payment in lieu of taxes agreement from the town of LeRay, Carthage Central School District and Jefferson County.

The military's push for renewable energy stems from the 2007 National Defense Authorization Act, which called for 25 percent of the energy used by the Department of Defense to come from renewable sources. The Army also has a goal to supply one gigawatt, or 1,000 megawatts, of renewable energy by 2025.

Thehardway

Subman,

That's great, I applaud any government measure that improves efficiency and lowers operating costs since it is less money out of my pocket and with deficit spending, my son and grandson's pockets too.

I did hear, however, that there is supposed to be a significant amount of mid level officer reduction specifically at Fort Drum and yesterday the news was buzzing about a 10% reduction in total number of standing soldiers.

I looked at Biomass CHP for my employer here.  Although the upfront savings looked attractive, it was the long term fuel stock acquisition that made me nervous about pulling the trigger.  When  you start out, there is lots of wast wood product nearby and you are the only one buying it.  When everyone hears the press on how much you are saving by reducing energy costs, others begin to follow suit and you end up with more people competing for the limited resource which means you have to start trucking it in from further away and stock costs go up.  Unless you have contracted with landholders/suppliers at a set price for a long term, (as this project does for 20 yrs.) the market can actually become quite volatile, especially if the economy experiences and upturn and the demand for pulpwood, framing lumber and OSB increase as well as transportation fuel costs. You can end up with a shortage of fuel stock or some really expensive power.
We have several wood based generation plants here locally as well as GP cardboard and OSB as well as LP OSB.  Virginia Tech has been doing a lot of research on alternative Biomass crops such as switchgrass as a faster growing alternative to wood and a tobacco replacement crop for southside VA.  That might change the dynamic some. 

Converting or mothballing coal based generation will be a ongoing thing and not cheap for the consumer.  It is already driving up residential electrical rates.

What are the environmental restrictions on sourcing the biomass fuels?  When Dominion Power converted the  50MW Altavista Plant and re-fired it last summer, it didn't take long for the local countryside to start looking like a nuclear holocaust occurred.  Lots of land got cleared and it is still going strong.  I awoke this AM to the sound of a skidder and a chipper a couple valleys over.  Erosion is becoming an issue on many sites with very little remediation.  https://www.dom.com/about/stations/fossil/altavista-power-station.jsp

The upside is that it does make logging mature stands a little more profitable for the logging companies and they do a better job of cleaning up what used to lay and rot or provide fuel for forest fires.

Is there any movement towards military bases using micro-reactors for power in the near future?  It seems like an ideal fit for some of these newer nuclear technologies.
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GAB

After reading the two previous posts I have a few questions.
The first question is can this unit use both hardwood and softwood as a fuel or is it like some wood chip boilers here in VT where they can only use hardwood chips.  Example the Mount Abe School heating system (Bristol, VT).  Second question is has any consideration been given to piping some or all of the waste heat from the system to greenhouses to grow food or flowers rather than sending the heat to the cooling tower(s).  Along the same light are there any large buildings nearby that the waste heat could be used for heating during the long heating season.  A third question is can this unit use corn stalks, spoiled hay, oat, rye, wheat, or barley straw and other crop residue as fuel?  To me using the waste heat for a useful purpose would help in increasing the unit efficiency.  Gerald
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submarinesailor

Quote from: Thehardway on February 25, 2014, 09:32:52 AM

I did hear, however, that there is supposed to be a significant amount of mid level officer reduction specifically at Fort Drum and yesterday the news was buzzing about a 10% reduction in total number of standing soldiers.  Yes, this is going to happen.  Also the current SecDef has ordered that ALL HQ staffs MUST be cut by 25% or better.  An interesting point about this, he is using someone from outside DOD to insure that it happens.

When Dominion Power converted the  50MW Altavista Plant and re-fired it last summer, it didn't take long for the local countryside to start looking like a nuclear holocaust occurred.  Lots of land got cleared and it is still going strong.   Erosion is becoming an issue on many sites with very little remediation.  This is one of my biggest concerns about biomass.  I love the idea, but am very worried about over harvesting and the damage to go with it.

Quote from: GAB on February 25, 2014, 11:02:15 AM
The first question is can this unit use both hardwood and softwood as a fuel or is it like some wood chip boilers here in VT where they can only use hardwood chips.  Can't answer this question because I have seen/reviewed the solicitation.  Second question is has any consideration been given to piping some or all of the waste heat from the system to greenhouses to grow food or flowers rather than sending the heat to the cooling tower(s).  Along the same light are there any large buildings nearby that the waste heat could be used for heating during the long heating season.  A third question is can this unit use corn stalks, spoiled hay, oat, rye, wheat, or barley straw and other crop residue as fuel?  To me using the waste heat for a useful purpose would help in increasing the unit efficiency. Same answer - have not seen the details yet. Gerald

Bruce

killerman

Here in Western KY we had a severe ice storm about 10 years ago. The aftermath of the ice storm was a lot of trees brought down and damaged. Seizing upon the opportunity the local county hospital and count govt secured a million dollar plus grant for a biomass heating system. The federal forest nearby was supposed to deliver the bio mass from the downed trees. Which they did; 5 years worth of burnable chips which they dumped in the parking lot. The heater was used one year and then the hospital said the fuel was ruined by sitting outside uncovered and the furnace was never fired up again. The taxpayers ate the million dollar plus bill. This project will be the same way. After 27 years in the Army Ive seen plenty of these good ideas which cost millions and had undesired effects, or the just offered a negative return on investment. Just my observation from years of being a govt employee.
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