The DPS And Biomass Development

Vermont is a national leader in the research, development and commercialization of wood energy -- in particular, the clean combustion of wood chips for heat and electricity production. Wood is an abundant renewable energy resource in Vermont and virtually all of Vermont's wood chip usage comes from mill wastes or sustainably harvested chips from low-quality trees.

For more than a dozen years the Department of Public Service (DPS) and the Department of Forests, Parks and Recreation (FPR) have shared a staff position. The person working in that position has been a wood energy expert and has consistently been an advocate for and promoter of the safe, efficient use of wood energy as a renewable resource in Vermont, consistent with sustainable harvesting practices.

• There are four types of applications in which the DPS has worked that are significant developments in wood chip energy in Vermont:

1) Biomass District Energy. District Energy systems which provide heat from a central source, through pipes, to a number of buildings can gain significant efficiencies in heating (and cooling.) They are widely used in Europe. The DPS has been exploring the use of new, highly efficient biomass combustion technologies as a primary energy source for district energy. The state has two biomass district energy systems already in place, in the Capitol complex in Montpelier, and the State office complex in Waterbury.

• The DPS has worked together with the Chittenden County Regional Planning Commission, and BED to secure funding from the Urban Consortium to explore the viability of biomass district energy for Vermont communities. The Community Renewable Energy Project (CORE) has worked with Burlington and Montpelier to advance proposals for district energy in those two cities.



• Burlington Electric Department, in part with the assistance of funds secured by the DPS and FPR, has been working for the past two years to develop a viable district energy system proposal using heat from the McNeil Station.



• A Resource book for communities interested in District Energy is being developed as part of the CORE program in a unique partnership with the Community Energy Systems Group of the Canada Center for Mineral and Energy Technology (CANMET). CANMET is roughly the Canadian equivalent of the U.S. Department of Energy, and they have substantial expertise in the development of district energy systems.



• The DPS is working with State Buildings and the City of Montpelier to develop a community-wide district energy system for Montpelier.

2) Vermont schools heated with wood chips (table). There are now 24 Vermont schools that heat with clean, efficient wood chip systems. Vermont has actually approached "market transformation" in this application. The wood energy expert and other DPS staff have worked closely with each one of the schools, educating, providing resources, working with manufacturers and wood chip suppliers, and finding expertise to help address issues as they arose. Many of these schools once heated with electric resistance heat. The conversion to wood chip fuels has increased comfort, supported improvements in indoor air quality, dramatically lowered costs, and benefitted the local economy.

• Savings are dramatic. The Leland & Gray High School is saving more than $40,000 a year with its wood chip heating system, about the salary of one teacher.



• Vermont manufacturing businesses. "Chiptech" builds wood chip systems and now markets them nationally. Many of the early wood chip conversions were to Chiptech systems. Messersmith corporation builds its fuel handling and control systems in Vermont.



• Displaced electric resistance heat totals almost a MegaWatt of electric capacity. Without actually generating electricity, this much electric generation has effectively been replaced by a renewable fuel.



• The building and design community has become familiar with the technology. Increasingly, wood chip systems are being included in new school construction, or in substantial renovations.



• Public acceptance has grown. In a recent bond vote, the U-32 High School included two components, one for a $12 million renovation and addition, and one for an additional $300,000 to replace the current oil-fired system with a wood chip system. Both passed, but the wood chip system got more votes than the renovation project.



• A new market for wood chips has been developed. The DPS has worked with the School Energy Management Program (SEMP), and with truckers and mill owners to develop standards for chip quality and delivery that are appropriate to these small-scale combustion systems.

3) Industrial and Commercial applications. For years the DPS and FPR, working cooperatively under funding provided by DOE's Northeast Regional Biomass Program (NRBP) have promoted the use of wood chip technology in a variety of industrial applications. Efficient wood chip systems have been installed in numerous applications, from a heating plant for a low income housing development to systems using sawmill waste that lower costs and increase product value.

• The Green Acres low income housing project in Barre reduced customer energy bills from $200 to about $50 a month during the winter heating season by converting from electric resistance heat to a wood chip system.



• Allard Lumber in Brattleboro expanded its operation, adding dry kilns that use waste wood from its sawmill operation.

Efforts by the DPS have help to create an environment where wood chip combustion is being considered in applications where cogeneration makes sense. This can be a crucial component of a business's decision to stay or expand its operations in Vermont. Wood-fired cogeneration feasibility studies supported by the DPS have consistently shown the potential for significant energy cost savings to Vermont businesses.

• Recently, the DPS has secured a Department of Energy (DOE) grant to fund development of industrial biomass cogeneration projects, and the DPS, FPR and the Department of Economic Development (DED) have been working intensively with several Vermont businesses to develop specific proposals.



• In addition the DPS also secured a major DOE grant to promote development of biomass cogeneration at Vermont ski areas. This grant has allowed the DPS, FPR, and DOD to continue working with Smuggler's Notch ski area on a project that could be up to 2 MegaWatts in size. As with all of the wood-fired cogeneration opportunities, the business stands to save a significant amount on energy costs, thereby improving their competitiveness.

4) The Vermont Gasification Project (VGP), located at the McNeil Plant in Burlington. The DPS and Burlington Electric Department (BED) have cooperated on this project for years. The DPS has helped with grant writing and administration, bringing substantial DOE research and development investment to Burlington to help demonstrate a biomass gasification process invented by Battelle.

The McNeil station was uniquely qualified to be the host of this demonstration project. If successful, the VGP could nearly double the efficiency of biomass fueled generation technology. It will have applicability nationally and worldwide. The DPS continues in its commitment to support this important research, development, and demonstration project.

In addition, other sustainable energy activities and proposals have been stimulated by the existence of the McNeil Station, including the Eco-Park concept, the Living Machine, and the District Heating proposal. McNeil and these related projects represent a long-term R&D investment by Vermont consumers.

In summary, Vermont has made dramatic progress in the development of its most readily available renewable energy resource. Progress is continuing on new, high-efficiency applications. Vermont is a national leader in the development and commercialization of biomass technologies.

If you are interested in further information please send us a message: vtdps@psd.state.vt.us. Be sure to type 'Energy Efficiency' in the subject line and include your name, address, phone number and email address in the body of the message.

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