Abstract

i

Acknowledgements

ii

Table of Contents

iii

List of Figures and Tables

v

List of Abbreviations and Acronyms

vi

Executive Summary

viii

1.

Project Overview

1

1.1

Project Need and Purpose

1

1.2

Study Area

1

1.3

Project Team

4

1.4

Goals and Objectives

4

2.

Biomass Resource Assessment

5

2.1

Forest Resource Conditions

5

2.2

Forest Management Process

6

2.3

Red Lake Tribal Forestry

6

2.4

Biomass Resource Locations

7

2.5

Costs of Gathering and Supplying Biomass Feedstock

17

2.6

Fuel Characterization of Available Biomass

18

3.

Regional and Local Power Market Analysis

20

3.1

Mid-Continent Area Power Pool

20

3.2

Red Lake Reservation Electric Service Provider

24

3.3

Minnesota Power Cooperative, Inc.

26

3.4

Other Tail Power Company

27

3.5

Red Lake Tribe Electricity Consumption

27

3.6

Biomass Power Economic Projections

28

3.7

Fuel Consumption

29

3.8

Economic Analysis

29

4.

Assessment of Biomass Heating Opportunities

33

4.1

Fuel Cost Overview

33

4.2

Biomass Heating History at Red Lake

34

4.3

Facility Identification and Heating Load Analysis

37

4.4

Candidate Biomass Heating Opportunities

39

5.

Overview of Bio-Based Products

42

5.1

Bio-Oil

42

5.2

Wood-Plastic Composites

44

5.3

Pellets

45

6.

Feasibility Analysis of Wood Shavings for Turkey Bedding

47

6.1

Business Overview

47

6.2

Market Characterization

48

6.3

Financial Assumptions

50

6.4

Next Steps

51

7.

Conclusions and Recommendations

54

7.1

Conclusions

54

7.2

Recommendations

57

Appendices

A.

Comparative Minnesota Residential Electricity Rates⁴²

69

B.

Biomass Power Technologies

71

C.

Biomass Heating System Components

79

D.

Biofuels Production

91

E.

Incentives for Biomass Utilization

99

F.

Environment and Socioeconomic Impacts

111

G.

Equipment Quote from Jackson Lumber Harvester

119