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HomeMy WebLinkAboutWood-Peat Municipal Solid Waste Agricultural Byproducts Alaska Bioenergy Program Semi-annual Report Jan 1999-Jun 1999wood - peat municipal solid waste agricultural byproducts Alaska Bioenergy Program Semi-annual Report January 1999 — June 1999 State of Alaska Alaska Energy Authority 333 West 4" Avenue Anchorage, Alaska 99501 TABLE OF CONTENTS Ill. INTERAGENCY AND INDUSTRY CONTACTS & PROJECT DEVELOPMENT ........ccsccssssssssssssssseseesseeseesensesseessessassessaesessesseaseeseassnssesseeseeseesoes IV. ALASKA BIOENERGY PROGRAM PROJECTS ........ccccsssessssssessessseesseeneeeees V. INDUSTRY ACTIVITIES IN ALASKA .........cccssssseeesssseesseessesseeessesseesseesseeees Appendix A Partial List of Alaska Bioenergy Program Contacts Appendix B_ Ethanol workshops/meeting agenda/ attendees Appendix C Current Industry-Related News Articles REGIONAL ADVISORY GROUP ACTIVITIES Dennis Meiners served as program manager for Peter Crimp during his sabbatical to the Netherlands. The Alaska program submitted a revised program budget and grant to USDoE. The Alaska program participated in meetings of the Pacific Northwest and Alaska Regional Biomass Energy Program Task force in February (phone) and March in Seattle. (see Appendix A.) Other regional efforts included close coordination on the development of an ethanol from cellulose project to insure that the development of this technology benefits the region to the maximum extent possible. TECHNOLOGY TRANSFER AND TECHNICAL ASSISTANCE During this period the AEA received and responded requests for technical assistance and information regarding ethanol feasibility and tax credits, anaerobic digestion, wood and solid waste availability, densified fuels, publications, wood-fired power plant feasibility, energy and product markets, small-scale waste-to-energy and incineration, contacts, project status, and general program information. A partial list of contacts is given in Appendix A. Hl. INTERAGENCY AND INDUSTRY CONTACTS & PROJECT DEVELOPMENT Interagency Coordination. During this period the Division maintained regular contact with industry and public officials regarding ongoing and potential projects in the areas of energy, solid waste management, forest management and utilization, technology development, and air quality. (See Appendix A for a partial list of contacts.) Project Development. In addition to activities associated with ongoing projects, AEA began work in three primary areas: The production of ethanol from cellulose and the direct combustion of wood waste to produce heat and electricity (see Appendix A for contacts). IV. ALASKA BIOENERGY PROGRAM PROJECTS Rural Energy from Wood McGrath Biomass/Waste Heat Project. MTNT Ltd.’s engineering consultant prepared a revised 35% design for the project in July. The new design refined the routing of the district heating system and provided access to more heat customers. In August the board of directors of MTNT Ltd. voted to accept the new design and authorized their CEO to pursue financing for the project. From October to December, the program manager worked with MTNT, utility ML&P, and their consultants to refine the project, reassess economics, and prepare a project proposal booklet. The booklet was in final draft form in December. AEA also worked with the state Division of Forestry and others to confirm assumptions about workability of silvicultural methods and fuel harvest and handling. Stirling Biomass Power Generator (BPG) Demonstration. Contacted by Maury White, Stirling Technology Company, regarding a demonstration project in Alaska. STC has developed an innovative gasifier integrated into their 350 watt RG-350 engine generator. This unit currently uses wood pellets. This project would modify the burner for use of wood chips as feed stock. A field trial will be proposed for an advanced 1 kW wood chip fueled unit, intended for use in rural Alaska. We discussed and appropriate field test site, and decided that this would be an appropriate activity for participation in Phase Il SBIR application. Maury White 509-735-4700 ext. 105. Southeast Alaska Ethanol During February and March, along with Russell Dick of Sealaska, the Alaska Program representative worked on the Draft Southeastern Alaska Ethanol Development Plan. The purpose of this plan is to facilitate the development of a cellulose to ethanol plant in Southeastern Alaska. The Southeastern Alaska project will be used as a commercial demonstration of the technology, which will serve as the foundation for the establishment of a major ethanol industry within the Pacific Northwest Region. The scope of the development plan addresses the use of funds and establishes tasks and performance requirements for elements of the feasibility analysis. Tasks include: an evaluation of bioethanol technologies, and evaluation of technology options, plant life-cycle cost analysis, sensitivity analysis of key process and technology variables, feedstock availability analysis, ethanol fuel marketing plan, co-product marketing opportunities, and plant location siting options. Statewide Wood Residue Assessment. The program assisted the Alaska Department of Commerce and Economic Development with the completion of this project. An assessment was made available in draft form. INDUSTRY ACTIVITIES INALASKA A. Forest Products/Ethanol A goal of the Knowles Administration has been to offset job losses in the timber industry in Southeastern Alaska by encouraging the manufacture of value-added wood products in the state. In December 1997, the National Renewable Energy Laboratory (NREL), based on primary resource assessment work performed by the Division of Energy, proposed using the low value timber and wood waste in the Southeastern Alaska for the production of ethanol. The ethanol produced would be blended with gasoline and sold into the Anchorage and Fairbanks markets to decrease air pollution. The Sealaska Corporation is interested in the development of an Alaskan sized, 6 to 8 million gallon per year, wood to ethanol plant. $300,000 has been made available to the Division of Energy from the US Department of Energy to support activities related to the feasibility and siting of a plant in Southeast Alaska. Sites under consideration by Sealaska are Ketchikan, Prince of Wales Island or in Wrangell. Preliminary estimates indicate that the plant will cost in the range of $32 million dollars to construct, and that the ethanol produced would sell for around $1.50 to $1.80 per gallon. Current estimates are that construction would begin in late 2001. The Alaska State legislature passed legislation in 1998 which offers a tax credit to the blender for the use of ethanol made from wood. The state program has been working closely with the Sealaska Corporation to develop a workable project plan. The Southeastern Alaska project will be used as a commercial demonstration of the technology, which will serve as the foundation for the establishment of a major ethanol industry within the Pacific Northwest Region. The scope of the development plan addresses the use of funds and establishes tasks and performance requirements for elements of the feasibility analysis. Tasks include: an evaluation of bioethanol technologies, and evaluation of technology options, plant life-cycle cost analysis, sensitivity analysis of key process and technology variables, feedstock availability analysis, ethanol fuel marketing plan, co-product marketing opportunities, and plant location siting options. APPENDIX A Partial List of Alaska Bioenergy Program Contacts January and February Met with Carl Propes, MTNT and consultant Jim Strandberg with respect to McGrath project. Provided information on Package type biomass systems, like King Coal, and others as presented at RBEP conference in Madison. Strandberg will follow up on other manufactures and compare costs, and technology for improving project feasibility in McGrath. Roger Jenkins, City of Nikolai. Interested in a wood boiler for their school. Budget revisions to Director. Various revisions and applications to maintain program funding. Meet with Sealaska, revise, finalize, and assist with letter in interest and project development plan. Ethanol: Sealaska Corporation has 3 BBF of standing timber along side the Tongass National Forest and is in the planning stages of building a major value added woods products plant, early 2000 or 2001. Feb. 9, 1999 Regional Biomass Program winter advisory meeting in Seattle. Shirley Ball, John White, Howard Haines, Chuck Peterson, Phil Lusk, Jeff James, Craig Chase, John Ferrell, Don Steven, Jim Kerstetter, Meet with Carl Propes McGrath Light and Power, Ernie Baumgartner and Alex Reeves of MBA Engineers with respect to the proposed diesel jacket water/wood boiler district heat project in McGrath. In general, issues broke down to rerouting the system to incorporate additional residential customer, and pre-installed customer taps. March Southeast Ethanol Project: Conference calls to comment on existing biomass feedstock studies, and address additional elements of work, and revise draft agreements. NREL, TSS consultants, Charlie Nash, Sealaska, USDoE, and AK Energy. Finalize Sealaska Agreements. Develop grant agreements, budgets. Stirling Biomass Demonstration. Contacted by Maury White, Stirling Technology Company, with respect to a demonstration project in Alaska. Maury White 509-735-4700 ext. 105. April Revisions to feasibility and preliminary design for McGrath Light and Power district heat project, completed. Project meeting to outline further steps. Ethanol Conference planning. Purpose of conference: identify market obstacles, outreach/information dissemination to increase consumer awareness regarding ethanol. Begin to develop an ethanol network with consumers, public officials, and regulatory agencies in anticipation of the construction of the ethanol production plant. May Alaska Journal of Commerce. Page 20. Challenges to Alaska’s timber future. Wendy Mulder called to discuss energy options for Nome, Lynn Witten, Industry Network Corporation, forest products development. Contacted Michael Johnson Department of Commerce to discuss sawmill study results, he said he needed more time to follow-up the questionnaires. He expected to have most of the responses compiled in September, and late October or early November would need a week or two for review before the result would be finalized. June Inquiry from Carol Rushmore, City of Wrangell Economic Development Department, with respect to the proposed southeast ethanol project. 907-874- 2381 Southeast Alaska Bioethanol Project meeting. Juneau, June 7, 1999. List of invitees: see attached. Follow-up public meeting Southeast Ethanol project; Cape Fox Hotel: June 8, 1999 Planning for ethanol and alternative energy conference in Fairbanks. July Planning for August Ethanol Conference in Fairbanks, August 19", 1999. Other Contacts Marvin Riddell, Golden Valley Electric Association, re-solid fuel (coal/biomass) small-scale power plant for Delta Junction. Charlie Nash, potential for a wood-fired boiler in Talkeetna. Marvin Yoder, City of Galena, interested in expanding his district heating system, and burning a mix of garbage and wood. Delivered cost of home heating fuel from Yutana is in excess of $2.00 per gallon. Bruce Kling, Gan a-‘Yoo. Would consider some kind of combustion options. Carol Rushmore, Wrangell Economic Development, City of Wrangell, and Errol Champion Silver Bay Logging. Both would be interested in looking at a project at the Wrangell Schools, or hospital that uses wood waste to displace heating fuel. Issues are lack of adequate disposal of wood waste from Silver Bay Logging’s sawmill, and creation of jobs. Information requests: Marvin Yoder, Selection Guidelines for Off-the-Shelf Commercially Available Biomass Combustion Equipment. Ward Sanders, consultant, request for South Tongass Wood Waste Assessment Conferences and Other Activities March 5&6, 1999 Winds of Change: The Forest products Industry and the University of Alaska. Ted Ferry Civic Center Ketchikan, Alaska Upcoming Events: August 8, 1999 Alaska Village Electric Cooperative: Contact to discuss opportunities for using biomass and Stirling Technology Co.’s power generator. AVEC received an article from the Tri-City Herald, July 1, 1999. “ Kennewick company plugs into green power. August 16, 1999 Ethanol Conference/Workshop, Fairbanks September 1999. Conference on Value-Added Forest Products. A workshop on Technology & Utilization Opportunities. September 27-28, 1999 Sitka, Alaska APPENDIX B ETHANOL WORKSHOPS/MEETING AGENDA/ ATTENDEES The following is a preliminary scheduling of presentations to occur at the June 7 ethanol meeting here in Juneau. Your input would be greatly appreciated. 9:00 - 9:10 9:10 - 9:25 Introduction 9:25 - 9:40 policy, agenda ethanol 9:40 - 10:25 agenda on consumption Break 10:35 - 10:50 NREL program 10:50 - 11:35 (who, what, where, with Sealaska 11:35 - 12:05 bench testing Lunch 1:20 - 2:20 on Southeast 2:20 - Open Robert Loescher - Welcome Rick Harris (or Russell Dick) - Percy Frisby - State of Alaska DOE and role in the promotion of John Ferrell - National policy and ethanol production, use and sustainability David Glassner - Introduction to Mark Yancey - NREL and ethanol why, when and how), and interaction Kiran Kadam - Sealaska biomass processs and results Merrick & Engineers - Presentation Alaska Bioethanol Project Questions and Conclusion SENT BY :DCRA, DOE vow eneeeee? 520799 + 9:22AM + DCRA DIY OF ENERGY- pues yeeres vores Southeast Alaska Bioethanol Project e Sealaska Corporation June 7, 1999 List of Invitees: 1. Robert Loescher Sealaska Corporation - 2. Richard Harris Sealaska Corporation — ,- 3. Joe Devine Sealaska Corporation ~ /” 4. Jim Edenso Sealaska Corporation — ¥-/ 5. Clay Antioquia Sealaska Corporation - ¥~’ 6. Russell Dick Sealaska Corporation — 7 7. Bill Strafford Sealaska Timber Corporation — 8. Bob Girt Sealaska Timber Corporation — ”~’ 9. John Ferrell US Department of Energy — y-- @ 10. Jeff James US Department of Energy - “/” 11. Govemor Tony Knowles State of Alaska — 2 “iyo 12. Perey Frisby State Division of Energy /-. 13. Dennis Meiners State Division of Energy y- 14. Terri Ganthner State Division of Energy 15. David Glassner National Renewable Energy Laboratory 16. Mark Yancey National Renewable Energy Laboratory 17, Kiran Kadam National Renewable Energy Laboratory ”*~ 18. Fran Ferraro Merrick & Engineers - / ; 19. Commissioner Michelle Brown Dept. Environmental Conservation — [°° ”° 20. Heather Stockard Dept. Environmental Conservation — 7 21. Commissioner Deborah Sedwick Dept. Commerce & Economic Dev. 4 7 7» 22. Karl Ohls Dept. Commerce & Economic Dev. ~ — ¥-/ 23. Gabrielle LaRoche Division of Governmental Coordination Voy :DCRA, DOE SENT BY ;DCRA. | 14-U0 PIRMESOCALASNA MA Kd 24. 25. 26. 27. 28, 29, 30. 31. 32. 33. 34, 35. 36, 37. 38, 39. 40, 41. 42. 43. 44, 45s. 46. 47, 48, 49. Mayor Jack Shay Mayor Bob Weinstein Rick Cables Chancellor John Pugh Darryl McRoberts Steve Plancheon Randy Simmons Jack Phelps Ken Freeman Win Greuning Larry Cooper Jamie Kenworthy Mike McClellan Ted Laufenberg Barry Hogarty Own Graham Kirk Dahlstrom John Sturgeon Ron Gelbrich Keith Walker Linda Lewis Keaton Gilderslesve Butch DuRette Emesta Ballard Rick Ludwigsen Dick Leary + 5-20-99 + 9:23AM ; DORA DIV OF ENERGY> #4 9074633897 7-004 P.03/03 Job-168 Ketchikan Gateway Borough City of Ketchikan» US Forest Service University of Alaska Southeast University of Alaska Southeast Alaska Mental Health Trust Land Ak Industrial Dev. & Export Authority Alaska Forestry Association Resource Development Council Key Bank | : National Bank of Alaska 9B Alaska Science & Technology Foundation Forest Sciences Lab // - Wood Utilization Center Ketchikan Pulp Company Ketchikan Pulp Company Viking Lumber Mill _/' Koncor Forest Products | Klukwan Forest Products Whitestone Logging, Inc. | Phoenix Logging Gildersleeve Logging DuRette Construction Ballard & Associates Evergreen Timber Gateway Draft Agenda 7/16/99 A One Day Workshop: Meeting Mandates and Receiving Benefits from The Production and Use of Ethanol-Based Fuels in Alaska University of Alaska--Fairbanks August 19, 1999 9:00 am Welcome Commissioner Dept of Env Conservation, Dept. of Econ Dev, or Lt. Gov. REGULATORY REQUIREMENTS AND OPPORTUNITIES FOR MEETING THEM 9:10am Welcome and workshop overview Dept of Community and Regional Affairs (DCRA), Division of Energy An overview of the workshop agenda and goals and state and federal alternative fuel fleet requirements. 9:25am A review of federal air quality regulations U.S. Environmental Protection Agency representative, Eric Clegg ? (Kathy) A review of relevant air quality regulations associated with vehicles covering both current and projected future regulations 9:45am A comparison of fuel and vehicle options to meet regulations. Bob Larson, Argonne National Lab Information comparing the safety, economic, and operational factors of ethanol- fueled Flexible Fuel Vehicles (FFVs) to CNG, propane, and electric vehicles will be presented HOW ETHANOL FUELS CAN BE USED TO MEET REGULATIONS 10:05am The ethanol-based fuel solution to improving air quality Dr. Lawrence Duffy, Chair Chemistry Dept. (what was done in the past) Cindy Heil, Alaska DEQ (?) (Ethanol program in Anchorage) 11:00am The various ways that ethanol can be used for transportation fuels Bob Harris, Todd Sneller, or Eric Vaughn (Kathy) Uses of ethanol-based fuels for octane enhancement or for oxygenated fuels will be covered as well as in ethanol blends including E85 and E15 oxydiesel fuels. Information on the extent of current use of ethanol-based fuels in the US will be provided. Also, a review of the environmental benefits associated with ethanol- based fuel use including reduced air emissions, biodegradability, greenhouse gas mitigation, and the opportunity to use waste materials for ethanol production. 11:30am A review of vehicles that can use ethanol fuels TBD, (Kathy) This presentation will include a review of the various types of vehicles that can use ethanol-based fuels from normal, unaltered vehicles for blends to FFVs that can meet federal mandates for fleet vehicles. Sources of these vehicles including models available and their prices will be provided. The potential of future vehicles including fuel cell vehicles will be presented. 12:00noon Lunch (provided) WHAT’S INVOLVED WITH IN-STATE ETHANOL PRODUCTION? 1:00pm 1:30pm 2:00pm 2:10pm 4:00pm 4:15pm Producing ethanol from woody and other cellulosic biomass resources. TBD, NREL Woody materials and other cellulosic materials such as waste paper can provide a low cost feedstock for manufacturing fuel ethanol. This presentation will cover what is involved in obtaining these resources, what technologies are available to convert these resources to ethanol, and other aspects of production of ethanol from cellulose in Alaska. A review of the Sealaska Project Rick Harris, VP of Natural Resources, Sealaska Corporation Sealaska Corporation is conducting a feasibility study for utilizing waste wood resources from the Tongass National Forest to produce 8 million gallons per year of ethanol. A review of the project to date along with the projected economic benefits from plant construction and operation will be presented. These economic benefits include the creation of local jobs, income, and tax revenues in rural Alaska. Break HOW YOU CAN MAKE IT HAPPEN Panel and Discussion Using speakers who have “been there,” this session will answer basic questions such as what facilities do | need to service a fleet? What, if any, are the differences in working with ethanol-based fuels and vehicles? Where can | obtain ethanol-based fuels? What types of assistance are available? Presentations will be made on the following topics followed by open discussion. e Alocal blender (10 minutes) (Dennis) e Alocal service station operator (10 minutes) (Dennis) e An installer of E85 refueling stations in northern climates (20 minutes) Larry Johnson, MN AM Lung Assoc. e An E85 fleet operator from a northern climate (20 minutes) Larry Johnson, MN AM Lung Assoc. e A snowmobile user of ethanol fuels (10 minutes), Glenn Miller w/ City of Fairbanks Workshop review and next steps (Dennis Meiners and Cindy Heil) Adjourn Draft Agenda 7/16/99 A One Day Workshop: Meeting Mandates and Receiving Benefits from The Production and Use of Ethanol-Based Fuels in Alaska University of Alaska--Fairbanks August 19, 1999 9:00 am Welcome Commissioner Dept of Env Conservation, Dept. of Econ Dev, or Lt. Gov. REGULATORY REQUIREMENTS AND OPPORTUNITIES FOR MEETING THEM 9:10am Welcome and workshop overview Dept of Community and Regional Affairs (DCRA), Division of Energy An overview of the workshop agenda and goals and state and federal alternative fuel fleet requirements. 9:25am A review of federal air quality regulations U.S. Environmental Protection Agency representative, Eric Clegg ? (Kathy) A review of relevant air quality regulations associated with vehicles covering both current and projected future regulations 9:45am A comparison of fuel and vehicle options to meet regulations. Bob Larson, Argonne National Lab Information comparing the safety, economic, and operational factors of ethanol- fueled Flexible Fuel Vehicles (FFVs) to CNG, propane, and electric vehicles will be presented HOW ETHANOL FUELS CAN BE USED TO MEET REGULATIONS 10:05am The ethanol-based fuel solution to improving air quality Dr. Lawrence Duffy, Chair Chemistry Dept. (what was done in the past) Cindy Heil, Alaska DEQ (?) (Ethanol program in Anchorage) 11:00am The various ways that ethanol can be used for transportation fuels Bob Harris, Todd Sneller, or Eric Vaughn (Kathy) Uses of ethanol-based fuels for octane enhancement or for oxygenated fuels will be covered as well as in ethanol blends including E85 and E15 oxydiesel fuels. Information on the extent of current use of ethanol-based fuels in the US will be provided. Also, a review of the environmental benefits associated with ethanol- based fuel use including reduced air emissions, biodegradability, greenhouse gas mitigation, and the opportunity to use waste materials for ethanol production. 11:30am A review of vehicles that can use ethanol fuels TBD, (Kathy) This presentation will include a review of the various types of vehicles that can use ethanol-based fuels from normal, unaltered vehicles for blends to FFVs that can meet federal mandates for fleet vehicles. Sources of these vehicles including models available and their prices will be provided. The potential of future vehicles including fuel cell vehicles will be presented. 12:00noon Lunch (provided) WHAT’S INVOLVED WITH IN-STATE ETHANOL PRODUCTION? 1:00pm 1:30pm 2:00pm 2:10pm 4:00pm 4:15pm Producing ethanol from woody and other cellulosic biomass resources. TBD, NREL Woody materials and other cellulosic materials such as waste paper can provide a low cost feedstock for manufacturing fuel ethanol. This presentation will cover what is involved in obtaining these resources, what technologies are available to convert these resources to ethanol, and other aspects of production of ethanol from cellulose in Alaska. A review of the Sealaska Project Rick Harris, VP of Natural Resources, Sealaska Corporation Sealaska Corporation is conducting a feasibility study for utilizing waste wood resources from the Tongass National Forest to produce 8 million gallons per year of ethanol. A review of the project to date along with the projected economic benefits from plant construction and operation will be presented. These economic benefits include the creation of local jobs, income, and tax revenues in rural Alaska. Break HOW YOU CAN MAKE IT HAPPEN Panel and Discussion Using speakers who have “been there,” this session will answer basic questions such as what facilities do | need to service a fleet? What, if any, are the differences in working with ethanol-based fuels and vehicles? Where can | obtain ethanol-based fuels? What types of assistance are available? Presentations will be made on the following topics followed by open discussion. e Alocal blender (10 minutes) (Dennis) e Alocal service station operator (10 minutes) (Dennis) e An installer of E85 refueling stations in northern climates (20 minutes) Larry Johnson, MN AM Lung Assoc. e An E85 fleet operator from a northern climate (20 minutes) Larry Johnson, MN AM Lung Assoc. e A snowmobile user of ethanol fuels (10 minutes), Glenn Miller w/ City of Fairbanks Workshop review and next steps (Dennis Meiners and Cindy Heil) Adjourn APPENDIX C Current Industry-Related News Articles el lobbying -the U.S. secretary of agri extension on a contract, that’ grants the company exclu- sive rights be ae ti q ‘ongass Nation- tine ee Dea ae ; Die ae The: t byede ‘gonteact for 300 m ‘feet of timber is scheduled to expire at the end of this year. But the Portland-based company, faced with slumping markets for lumber and: pulp-grade timber, warits more time to harvest the logs, Said Alaska Gov. Tony Knowles. He’ of- fered a letter of ‘support Wednesday for a contract:ex- tension. Company officials met Thursday ‘in ‘Washington, D.C., with representatives of Agriculture Secretary Dan sidiary er of | Pacific , spokesman, con- firmed that talks are_un war, : \, The To , Tien ofthe aeudied Y lion in annual But. southeast Alaska has made <ment the contiany 9 big play es ino comnt ae contract as: the” . Knowles said over-Tongass tianagement. \ Ketchikan-based pulp 4 vThe) settlement awarded the company more than $13 Louisiana-Pacific, through’ | its “Ketchikan-based ‘ sub- — - t going ‘back to one of the oldest ‘orms of commerce — barter — in an effort to rid the park’system of ' beetle-killed spruce trees. Because there is no money in’ her vita. izess, Chria Degeriee of ani ‘trees, Chris Degernes 0: Alaska State Parks hopes to solve the problem by offering business- es an old-fashioned trade. “That’s the way we'd like to get was the biggest buy- r ‘ongass timber. The “y ‘eompany held a unique. 50- year contract. that gave. it.ex- ba Ay ECR ye f : clusive rights to a portion of , erry. Soud, @.'Louisiana-._ that.timber through 2004, so long as the company operat- ed an Alaska pulp mill. Since to end al re aebae ‘tation efile dnd ie” tah mare c the company’s investment in compat eas ae el ae ‘curtailed the long- / ‘ishut down) 5 4 ot and we get selves som The Division of Parks and Out- door Recréation is soliciting pro-’ Y° Degernes said winning bidders. posals toremove the trees. ’ deadline for proposals is Feb. 16. removal is being planned at Kale River State Recreation Site, Johnson Lake State Recreation Area, Ninilchik River Campground ‘and Stariski State Recreation Site. million. It also sought to =e open two of the company’ sawmills by guaranteeing the ' .300 million..board feet federal. the settlement; tim- ber markets have plummeted rotections for. af; some trees cleared.” ’ » atte fish. and’ iz ‘0. : fe hopes the » ft also opens up the understory and reduces the fire havard” , would remove only beetle-killed trees that present a hazard to park visitors or facilities. According to Degernes, 100 to 200 trees will be removed from each of the four parks: WT SRNVAMY 16,1999 9 J uneaieens Int of ships, he one docked near. downtown | veek was unusual, Instead of fresh paint and’ ws oe leaming windows, the work boat ” ad chipped paint and dirty decks, lather than uni tourists, his ship carried:logs, which Jue eau stevedores stictne for the’ rip aeross the Pacific Ocean to ' owntown: Logging trucks and tinier lips are unusual in Juneau — oubly so when ae 7 are barely 100 Pape tens BRIAN WALLACE 1 THE JUNEAY) EMPIRE t. Yuki Ogasawara for Daiichi Chou Kisen ok I id David Goad, land \ Hotrrelierta overall loss of $4 = what oe ae bet trot Southienst Alas i Ok it, sai H 4 an: Te go lo rn rare, sidbelt’s vice president of lands. e they cut, he: million forthe year. inthe Jane what you're Fasbesrn but not unheard of, said Jack “The price we ae tsa id. 9% charade.) Bfy Newsletter to shareholders, _to the shareholders it sho Phelps, executive d an cae it’s an at- ro iver teats i no og et ast year hep us ee active, a roldbelt’ee ‘ those losses in down, e’re mo ade, who tune tee Winer: ' Echo Covet there wa: as the Juneau ‘A Japanese mill ene, interested’ available, Ja rs last year, ‘e.could wait canes ining 0 Which will in the 2 million board eet of hem: « ginning to retool for the smaller iger. Maybe the up, + Sale. & elt about $400,000,” lock ' ed up its in-' logs, which Alaska may begin to aybe it goes down again,” . wea eke 4hk BAO ACLU Ad ALUU- nesia. The Arun field had been ac- hour work week * ' : quired cheaply by Mobil decades ‘ee retirement before and was vastly profitable, * should be laid accounting in recent years for at osts of state ut its size, cost By JIM WEBB ACTING FOREST SUPERVISOR Congress and the Clinton Ad- ministration provided $16.5 million for a 1999 timber sale program of 155 million board feet on the Tongass National Forest. They also earmarked an additional $12.5 million “for expenses directly re- lated to timber sale preparation to facilitate a reliable timber supply and transition to value-added pro- cessing for the forest products in Southeast Alaska, consistent with all applicable environmental laws...” These dollars and the work that will be accomplished are impor- tant to Alaskans, particularly those of us who live in Southeast, People are offering ideas about how to accomplish this appropria- tion act language. We’re grateful for those ideas and we are using some of them. Here’s how we plan to meet Congressional and administration direction. We will offer 155 million board feet of timber and start the analysis for an additional 65 mil- lion board feet of timber to be sold in future years. This work may be controver- sial. Last year we only sold 20 mil- lion of the 187 million board feet offered. Extremely soft Asian markets are the principal reason for this lack of interest in our tim- ber offerings. Demand actually declined about 10 percent per month from July to November. We RRY TRUDEAU ule ASian economies began crash- ing in mid-1997. Mobil was left with expensive new investments at a time of plummeting oil prices and demand. Beet and had posted a hefty $3.3 billion profit in 1997, it was lagging be- hind its peers. Noto explored the possibility of merging with Amoco or BP — but BP moved first to ee The story of Mobil’s demise as an independent company offers a harsh lesson in the economics of the global marketplace. oo will look at last year’s unsold sales to see if there is a way to make them more desirable, given the current and expected market. All sales will be in compliance with the revised Tongass Land Man- agement Plan. Many economic pundits predict a five-year slump in timber prices based on a slow Pacific Rim eco- nomic recovery. Cyclical markets are not a new phenomenon for the timber industry. Diversification of products and adding value to raw materials here in Southeast are seen as two keys to a more reli- able wood products industry in the future. We want to participate in the evolution of the forest products industry so that it is not so sensi- tive to market fluctuations, One way to do that is to supply the right amount of product at the right time. We are exploring how best to do that in a draft report called “Evaluating Timber De- mand for théTongass National Forest.” We'd like your comments on our ideas by Jan. 15. Another way is to explore the varied potential products availa- ble from national forest land. We want to support Alaska en- trepreneurs as they strive to add value via richer manufacturing of forest products. These kinds of businesses could manufacture logs into finished products such as pan- eling, furniture or decking, instead of chips. Other businesses could process berries into syrups, dress- ings or candies and thereby open new markets for Southeast. We will be receptive to other yet-to-be discovered uses of forest products. Opportunities exist for such value-added, sustainable forest- ny. eecce Ignatius is a former assistant managing editor for business of The Washington Post. 2 | es Forest products Program to boost economy products developments. In other parts of the United States, these businesses are worth hundreds of millions of dollars annually. We plan to spend about $2 mil- lion this year to Support the emer- gence of new value-added forest- products businesses. These funds will support small-business semi- nars, business incubation, commu- nity collaboration, market re- search and training programs. This work will support communi. ties and businesses in addition to the Southeast Alaska Community Economic Revitalization Team ef- fort, jointly supported by the state and federal government. Please contact your local na- tional forest office for what sus- tainable forest products develop- ment opportunities exist, eccc3e Jim Webb is the acting forest supervisor for the Tongass Na- tional Forest, U.S. Forest Ser- vice. ON JUNEAU EMPIRE AN INDEPENDENT NEWSPAPER Published Friday, }. by South- serene as sey So am Periodicals mailed at Juneau, Aleske. USPS 604-400. Postmaster: Send address crengee to Junesu Empire, 3100 Chane! Or., Ji 1, Alaske 9601-78 ot 586-3740 Represented for jet Ave, ‘South, #124, Federal Way, Washington, 98003. Phone (206) 948-5191, (Payable in advance only) cau sur] of r habits of drivers who pref to Bens. i about 10 minutes. But a car fueled with CNG emitted only 2 percent y's aithas improved, .the.CNG.....of the, carbon.monoxide pollution, given.off With little success. The......,.on.average.by, aaaplingsppwered cars raid hampered by problems: ‘that-warm-tip.” ' ‘the technology to work “’ Another finding of the study, whieh Wasn't’ * ited number.of refueling Please see Page F-4, NATURAL GAS vA) HINMAN + Daily News reporter oh tee fF gehicies ¥eoerKe mixed review in tri ee ’s not a whole lot of differ- vy about 75 pe Morris, a city quality. The CNG p oackup plan quality plan in: was a contin er, efforts, inclu oxygenated f About 10 cars, Mayor Tom Fink’s, to bifuel cars in 19 mons, manager of | ment fleet at The city sat Seed received about $1 m money in 1996 to CNG fleet. Morris € $500,000 has been spent verting ea ‘to run on either: , aE ; fuel and building re! g : 2S. , : ” ? Patong a Converting a vi sceco 00 e wear r : a t ‘ ; . to $6,500, said Sam Provenzano, city 5 4 ‘ 3 fleet manager. Early conversions had trouble —_—~ Le Station lacks support Continued from Page F-1 ea ‘and attitudes need time to change, but that change ough for Trillium. © Merit strated,” Hull said e-can’t even justify our first wered Vehicles in the state aren't enough incefitives el cars when they. can.use he first station, located nee “the city maintenance yard aes on Tudor Road, would me: Moot stations. could ” ons would then prev ide the. it rastructure tO €X- d state fleets. = ag in the city fleet that can run, n natural gas are us- ‘of 300 to 500 gallons a en of natural gas, said p, city fleet manager. ba vA tting the expected usage that we thought we, would,” ‘fewer than 400 stations are big enough to have the po- ‘economically feasible, Hull said. Of those stations, Trilli- he one in Anchorage, he said. ‘um owns 12,,including t Q Reporter Mike Hinman can be reached at mhinman@adn.com. | Qe J