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Biomass Fuel Deemed a Viable Renewable Energy Source for Western Montana

NorthWestern Energy (NWE) and the Montana Community Development Corporation (MCDC) have published a first-of-its-kind report on a regional approach to developing a woody biomass energy source for Montana.

Biomass Energy in Montana got a step closer to reality last month with the release of a Biomass Energy Feasibility Study co-sponsored by NorthWestern Energy and the Montana Community Development Corporation. The study concludes that with appropriate funding, biomass generation, or burning wood to produce electricity, can serve Montana as a viable renewable energy source.

The feasibility study showed that Montana forests contain enough woody biomass to operate a distributed network of Combined Heat and Power plants (CHP) at area sawmills. The study also found that the technology exists to produce this energy on-site at individual sawmills rather than at stand-alone industrial facilities. Operations of the new plants could provide 73 new jobs with 7.3 million in annual wages paid. The process has a neutral carbon footprint since the carbon emitted during combustion is offset by the carbon absorbed in the growing trees. The study provides a roadmap for NWE and other woods product businesses for implementing this network of biomass plants to deliver an alternative source of energy.

“NorthWestern Energy is pleased to be a leader in evaluating biomass potential. The study did an excellent job of clarifying how much biomass is available to fuel potential generating projects in Montana,” said John Fitzpatrick of Northwestern Energy. “The company is now moving forward with additional analysis to see if we can improve the cost effectiveness of biomass generation.”

What made this project unique is the participation of all players in the biomass energy production chain. Federal, State, and private agencies have all recognized the importance of this project and have participated in the advancement of the study. Seven sawmills participated, providing detailed information on their manufacturing and forestry operations, as did most of the state’s major public and private forestland owners. The study was funded in part by the Montana Department of Commerce, the U.S. Economic Development Administration (EDA), the US Endowment for Forestry and Communities, the Montana Department of Environmental Quality, and the F.H. Stoltze Land and Lumber Company.

Participating western Montana sawmills include Eagle Stud Mill (Hall), RY Timber (Townsend & Livingston), Pyramid Mountain Lumber (Seeley Lake), Sun Mountain Lumber (Deer Lodge), Tricon Timber (St Regis), and FH Stoltze Land & Lumber (Columbia Falls). Forestland owners
involved in the study include the US Forest Service, Montana Department of Natural Resources and Conservation, Plum Creek Timber, The Nature Conservancy, Stimson Lumber Company and the Blackfoot Challenge.

The study was an important first step towards the development of biomass energy in Montana. It may also help NWE’s ability to meet its renewable portfolio requirement of using 15% renewable energy sources by 2015. Craig Rawlings, Forest Products Business Consulting Manager for MCDC, says “the study is good news for the woods product industry in Montana as it diversifies itself for the future.” Biomass is a promising alternative fuel for Montana because of its ample supply and reliable consistency. With biomass generation, sawmills will enjoy a new, consistent revenue stream. Forest landowners will benefit from supplying woody biomass to a previously stagnant market, and the health of Montana’s forests will improve with the removal of beetle kill and excess wildfire fuel.

The study established that a distributed biomass network can be successful in Montana. “This report does a good job of pointing to the economic hurdles of moving to domestically-produced green energy,” says Carlton Owen, President & CEO of US Endowment for Forestry & Communities, “but at the same time identifies the other advantages and reasons why continued exploration and ultimate development of joint-ventures are important to Montana’s economic development as well as resource stewardship future.” The next step in making it a reality is financing the construction of the plants and beginning operations. MCDC is working with USDA Rural Development, and the State of Montana to bring every financing resource to bear on all CHP projects in the state. In the meantime, the study can be used by sawmill owners, forest landowners, and the State to make business decisions and plans to move forward.

"This study marks a major milestone along Montana’s path toward a more sustainable and environmentally responsible energy portfolio," said Richard Opper, Director of the Montana Department of Environmental Quality. “Despite its inherent environmental considerations and trade-offs, I am confident that biomass will be a responsible component of Montana’s energy future." The leaders of the biomass enterprise believe that this partnership of mill owners, landowners, and lawmakers will serve as a model to the nation for forests, wood products manufacturing, and domestically-produced energy. The study can be found on MCDC’s website: http://www.mtcdc.org/forestbusinessconsulting.html.

About Montana Community Development Corporation:
MCDC works with business owners, local development agencies, and banks throughout Montana. MCDC’s mission is to provide business financing that can transform the lives of individuals and strengthen community prosperity. Since 1989, MCDC has served hundreds of entrepreneurs with loans, consulting, and training.

For further information on this story contact:

Craig Rawlings

Forest Business Consulting Manager MCDC (Montana Community Development Corporation)

Phone: 406-728-9234 #203

[email protected]

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Dave Glaser

President

MCDC (Montana Community Development Corporation)

Phone: 406-728-9234 #211

[email protected]

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