Wood recyclers go whole hog into biomass

Firm uses chips to combat downturn in wood products industry

By David Holley

Pamplin Media Group, Sep 10, 2009, Updated Oct 30, 2009

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“It definitely opened my eyes,” he says.

That’s one factor that sparked his interest in working for H&H and starting Biogreen Sustainable. The new plant would provide enough electricity to power 15,000 houses, he says.

Deschutes County has given its approval for the facility, and the city of La Pine has all but OK’d it. Broberg is waiting to hear back on an application for state Business Energy Tax Credits, as well as air-quality permits from the Oregon Department of Environmental Quality.

He estimates the plant will cost about $60 million to build and expects to raise $30 million of that from private investors. The tax credits could land Broberg $10 million, and he could get another $21 million in federal production tax credits.

The business would provide about 20 full-time, living-wage jobs in La Pine. Broberg says he doesn’t expect a return during the first two years of operations, while the company pays off debt.

There are some potential flaws with biomass, Salwasser says. Hog fuel, for example, is produced by extracting forest debris and turning it into wood chips. Taking too much out of the forests can cause harm; enough debris must be left behind to allow the forest and its soil to regenerate.

Broberg says his company appreciates the importance of forest management and will spend 20 percent of operating costs for pollution control.

Sustainable biomass companies are much more widespread in Europe. This side of the world needs more investment in biomass and less in oil-based energy, Salwasser says.

“We need to do some smart thinking in this country to shift off from the degree of dependence on foreign oils,” he says. “Our lifestyles need to change.”

New biomass plant

Biogreen Sustainable Energy Co.

What: Uses hog fuel — wood chips from forest debris — to create electricity. Material is derived from small trees, undergrowth, slash piles, thinnings, yard debris, construction material, orchard removals, rice hulls and fruit pits.

Where: Company is in St. Helens; planned biomass plant is in LaPine

Other: When finished, the $60 million power plant could produce 19 megawatts of electricity, enough to power 15,000 homes.

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