Will it be profitable to bring roadside logging debris to the Atlantic Power plant?
The following information is in the Atlantic Power Corporation (APC) information paper when they responded to the question of using roadside logging debris (RLD) instead or rail ties.
“Previous attempts to use RLD were not economically feasible and were discontinued in consultation with BC Hydro as it resulted in high electricity production costs. However, by installing the new rail tie processing and shredding equipment, it will enable us to take unprocessed RLD where currently we cannot. This will allow a supplier to collect and deliver RLD to us without the supplier having to invest in processing equipment. There is room for both rail ties and RLD in our fuel mix, and by investing in the equipment needed to process rail ties, we will also improve the economic viability of RLD’s use as fuel in the plant.”
It sounds like the only thing that was preventing the RLD from being brought to the plant was the chipping costs on the logging site and possibly the difficulty of using chip trucks on the same roads as the logging trucks.
Unfortunately, I think it is more complicated than that i.e. haul distance and price paid for the RLD will be a major factors.
The RLD fibre would be more expensive since APC would need to cover some harvesting, hauling and processing (shredding) costs at the plant.
I am pleased to see APC is at least considering the use of RLD but if I was one of the potential suppliers I would want a lot more specific information.
For example, will APC be offering something similar to what the harvesting and trucking costs that companies have been getting for delivering logs to the lumber mills. The price will no doubt be relative to what APC pays for existing and future fibre (i.e. hog fuel from the mills and rail ties they want to use).
It is my understanding that the hog fuel consists of bark (which goes to APC) along with sawdust and shavings which goes to the Pinacle Pellet plant. Both companies pay a modest amount for this fibre which is close to the form it is needed and the hauling costs are minimal.
The use of railroad ties would likely be slightly more expensive than hog fuel but much less than the RLD costs.
In another article about the potential of burning rail road ties in a small gasification plant in Kamloops the railroad company was going to deliver the rail ties for free plus pay a tipping fee. In other words the RLD supplier would have to log and haul the pulp logs for free and pay APC to take them once delivered to the plant. Doesn’t sound like a profitable venture.
The only time RLD would be considered is when the hog fuel and railroad ties were limited.
The question to be considered is what is a reasonable profit margin which will minimize loss of jobs for displaced forestry workers?
Jim Hilton is a professional agrologist and forester who has lived and worked in the Cariboo Chilcotin for the past 40 years. Now retired, Hilton still volunteers his skills with local community forests organizations.