Making biomass a reality

The grand opening for the $80 million biomass energy project in Virginia held the promise of employment and steam rate stability.

The ribbon cutting ceremonies in Virginia and Hibbing were just the highlight of 3 1/2 years of hard work making the project become a reality, according to Virginia General Manager Terry Leoni.

He expects first fire in the Hibbing boiler on Nov. 20 and in the Virginia boiler on Nov. 23. Commercial operation is slated for yearÂ’s end, he said.

“It’s probably the most exciting partnership that we’ve seen in a long time,’’ said Virginia Mayor Carolyn Luoma Gentilini.

The project includes each utility installing a new boiler, fuel handling system and auxiliary equipment to tie into existing turbine generators. The project will use biomass from a tree farm in Aitkin, as well as right of way clearings.

Biomass is organic matter (such as wood) that can be processed into energy for heat, liquid fuels or power generation. Biomass can be combusted directly to produce steam for electricity or it can be converted into a gas to power a turbine.

The boilers will produce 20 megawatts of biomass electricity in Hibbing and 15 megawatts in Virginia.

The two utilities, working jointly as the Laurentian Energy Authority, hold a contract to sell 35 megawatts of biomass power to Xcel Energy.

The utilities plan to start by using the wood waste, but are developing tree farms that will provide a dedicated energy crop for the power plants.

The temporary shutdown of local Ainsworth mills has Leoni hoping for a quick recovery by that company. Overall, “I think we can work through those issues.’’

Goals of the biomass project have included stabilizing steam heat costs for 20 years, maintaining local power plants and steam systems, helping customers avoid costs of converting to another heating source, preserving utility jobs, creating 60-100 new jobs, selling renewable energy at a profit and putting money into the local economy with fuel purchases.

Gentilini, who is fully behind the project, said she hopes steam heating costs will be stabilized for 20 years and beyond.

Revenue projects call for about $700 million in gross revenues to the utilities over the 20-year span of the power purchase agreement with Xcel Energy.

“I have every indication it’s going to be a success,’’ according to Gentilini, who said the project is on the cutting edge of technology. Experts say this is what we should be doing, she added.

“If we aren’t brave enough to explore new technology then we could really lose out,’’ Gentilini said.

“This is a bold move on their parts,’’ Iron Range Resources Commissioner Sandy Layman said of Leoni and Hibbing General Manager Jim Kochevar and their utility commissions.

The IRR is glad to participate, Layman said, because biomass energy is an alternative fuel that focuses attention on northeastern MinnesotaÂ’s possibilities and provides additional logging jobs.

“I think it’s a tremendous opportunity,’’ said Keith Nelson, St. Louis County commissioner. It is a good chance for the utilities to diversify their fuel source, while enabling loggers to sell what are traditionally waste products.