1. VT Department of Forests, Parks & Recreation Wood Energy in Vermont January 2005 VT Department of Forests, Parks & Recreation

2. Non-forest Land Forest Land Vermont’s Forests 4,630,300 acres of forestland 78% of the state

3. VT Department of Forests, Parks & Recreation Federal 6% l Other Public 8% Forest Industry 6% Farmers 6% Corporations 11% Private 63% Distribution of Timberland Area by Ownership

4. VT Department of Forests, Parks & Recreation Acres Owned Number of Owners Total Acres 1-9 40,900111,900 10-49 19,700360,700 50-99 10,800699,200 100-499 8,5001,496,700 500-999 500286,400 1,000+ 100846,900 All size classes 80,5003,801,800 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.

5. 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

6. VT Department of Forests, Parks & Recreation Harvest by Product Vermont Forest Resource Harvest Summary… 2002

7. VT Department of Forests, Parks & Recreation Wood Fuel: Residential Residential 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. Why Vermont: Advantages and challenges of utilizing wood for energy in Vermont.

14. 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.

15. 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

16. 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

17. 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

18. 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

19. 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.

20. 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.

21. 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?

22. 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.

23. VT Department of Forests, Parks & Recreation