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Home My WebLink AboutAlaska Charcoal Production Feasibility Study 1985Alaska Power Authority LIBRARY COPY The "Alaska Charcoal Production Feasibility Study" was performed under state ATN 84-0546. It was administered by Alaska Power Authority as part of the Pacific Northwest and Alaska Bioenergy Program. Additional copies are available from the author at the address on the cover page for $7.50 each. Reading copies are available through the Alaska State Publications Depository Library System at the following locations: Rasmuson Library, University of Alaska, Fairbanks University of Alaska, Anchorage, Library Library of Congress, Washington, D.C. Alaska State Library, Juneau Anchorage Municipal Library Noel Wien Memorial Public Library, Fairbanks Alaska Resources Library, Anchorage, 701 C Street Washington State Library, Olympia Ketchikan Public Library Sheldon Jackson College Library, Sitka Northwest Community College Learning Resource Center, Nome A. Holmes Johnson Public Library, Kodiak Kenai Community Library National Library of Canada, Ottawa Center for Research Libraries, Chicago Seattle Public Library University of Washington Library, Seattle University of Alaska, Juneau, Library This study was prepared with the support of the Bonnevilie Power Admin- istration, Assistance No. DE-FG79-84BP14984. However, any opinions, findings, conclusions, or recommendations expressed herein are those of the author and do not necessarily reflect the views of BPA. 1769/495 ALASKA CHARCOAL PRODUCTION FEASIBILITY STUDY TABLE OF CONTENTS Foreword Summary and Conclusion Raw Materials Charcoal Markets Plant and Equipment Data Outlook Appendix I - Raw Material Supply Appendix II - The Export Potential for Charcoal Made from Low Grade Alaskan Hardwoods and Softwoods Appendix III - Charcoal Manufacturing and Costs 1769/495/3 14 25 60 FEASIBILITY STUDY - ALASKA CHARCOAL PRODUCTION FOREWORD In May 1984, the Alaska Department of Commerce and Economic Development issued a request for proposals under the Alaska Bioenergy Program. The purpose of this request was to identify issues associated with the use of biomass as an energy resource. The proposal sought responses in the following general areas: (1) identification and assessment of biomass resources and the economics of biomass resource recovery, (2) development and demonstration of biomass recovery and conver- sion technologies (emphasis on wood recovery) and, (3) environmental impacts of biomass use. "Biomass" was defined as wood, crop, animal and municipal solid waste. Throughout the history of the program, there has been a regional empha- sis on promoting use of woodwaste, particularly as an energy resource. The feasibility study takes advantage of this by considering wastewood disposal problems associated with large scale agricultural projects. 1769/495 Slee As former State Forester for the State of Alaska, the author was very interested in a better means of using waste products from agricultural development projects promoted by the State. Common practice in such projects is to pile the timber in long windrows and burn it. Besides the obvious waste of a resource, this practice causes air quality problems, increased fire hazard, and loss of productive land while the windrows are in place. Accordingly, a proposal was submitted to conduct a feasibility study for production of charcoal in Alaska. This report represents the results of this work. Early on it became clear that charcoal marketing was the limiting factor in the economics of this project. The relatively high cost of Alaska labor and its remoteness from mass markets combine to make competition difficult in world or U.S. markets. It was hoped, however, that related benefits -- such as providing a market for material otherwise wasted -- might make the development of a plant feasible. A great deal of assistance and information was provided by a number of people, mostly Hal Bland of the Aeroglide Corporation; Bob Massengale of the Missouri Forestry Division; Charles Von Dreusche of the Chavond- Barry Engineering Corporation; Chelsey Eager of the Alaska Railroad; Ted Nielsen and Howard Nugent of Bio-Energy Supply; Bill Gissel of the Matanuska-Susitna Borough; and Bill Beebe, Earle Stephans and John Sturgeon of the Alaska Division of Forestry. Special thanks are also due Pat Woodell of the Alaska Power Authority for her assistance and advice. 1769/495 -2- SUMMARY AND CONCLUSIONS Supply, capital equipment, and marketing analysis show that charcoal briquet production in Interior Alaska is marginally feasible under present conditions. Major drawbacks are: ° the large amount of capital required to establish a kiln and briquetting plant, ° the cost of raw material, ° the small size of the Alaska market and difficulties of entry into the Pacific Rim and lower '48 markets. A major challenge in the Alaska market is the scale of proposed plant development in relation to the potential in-state market. To illustrate this, the section on Plant and Equipment Data provides end-product cost estimates for different plant scenarios. These examples describe the difficulty in achieving an attractive return on investment. This is particularly true for “the lump charcoal plant, which compares end- product costs for a 10,000 tons per year plant at 1,000 tons annual production, and again at full production. Traditional lower 48 markets are well established in terms of supply, production and marketing infra-structure. Because Alaska lacks an 1769/495 -3- adequate support base in these areas, it is difficult to penetrate established channels to gain a foothold in lower 48 markets. This report evaluates the feasibility of establishing a charcoal kiln and briquetting plant in the Matanuska-Susitna area. Feasibility is examined from three major viewpoints: ° Raw materials supply availability ° Market availability ° Production costs The conclusions regarding current market conditions do not support project development at this time. The analysis, however, presents many factors for investors to consider when updating this project evaluation for future economic review. The investor's attention is drawn to the appendix describing various sizes of equipment. A potential investor might also consider different plant siting opportunities and wastewood supply scenarios for a charcoal production plant. Siting near a larger sawmill in Southeast Alaska might significantly affect supply economics and market opportunities. A charcoal plant would have the advantage of a low-priced, centralized supply of woodwaste near a mill. By far the largest variable cost is raw material needed to supply feed- stock for producing charcoal. Additional automation in the wood har- vesting process may improve supply economics. The use of large, port- able chippers, chipping into vans directly in woods is one example. 1769/495 =4u Southeast timber operators have a difficult time finding markets for low grade material which must be removed along with quality material under the terms of their contracts. A charcoal plant to use this material might help improve harvesting economics by providing a use for the low grade materials in the southeast region. RAW MATERIALS Appendix I of the analysis describes the assumptions on which raw material supply estimates are made. In brief, there is a minimum of 350,000 tons of chips per year available from public lands managed on a sustained yield basis and now accessible or expected to be accessible in 5 years. This would produce over 40,000 tons of charcoal per year (if the entire volume were used for charcoal). In addition, there are 825,000 tons of material on land designated for agricultural purposes, which are required to be cleared. There is another 550,000 tons of hardwood material on public lands scheduled to be made available for agriculture in the near future. Clearing of private lands for subdivisions or other development projects in the Matanuska-Susitna Borough could produce an additional 440,000 tons per year. Finally, the Tanana Valley could produce about 875,000 tons annually. This volume of materials is based upon whole tree chip- ping. If only boles were used, the volume available would be about one-half the total. A Wasilla firm has been supplying chips for the local market for the last year and a half. They quote a price of $22 1769/495 -5- per ton for chips delivered in quantity within 30 miles of their opera- tion. Railbelt sawmills are fairly small operations. It would appear unlikely that sawmill waste is generated in sufficient quantities to provide raw material for a charcoal operation. According to the Alaska 1983-1984 Forest Industry Directory (Alaska Department of Natural Resources, Division of Forestry, and the U.S. Department of Agriculture, Forest Service), there are approximately 25 small sawmills cutting at least some hardwoods in the Anchorage/Matanuska-Susitna area. They have a ‘ combined production capacity of 26-30 million board feet annually. There are no records of actual production, so determining the exact amount of waste material available from sawmill operations is difficult. An economic consideration in using sawmill waste would be the necessity of consolidating it from a number of widely separated sources. Public timber sales also affect availability of supply. The Alaska Division of Forestry is oriented primarily towards small, short term timber sales. A twenty year sale which would provide 250,000 tons of chips annually, would be a substantial undertaking requiring lots of lead time and perhaps even some investment by the potential purchaser. For material from the state agricultural projects to be useful, a policy change would be necessary. Instead of requiring land clearing to be completed in a relatively short time, state sales contracts should be revised to provide lengthier periods for purchasers who wish to salvage 1769/495 -6- the timber. Even better, the State could sell the timber before selling the land. CHARCOAL MARKETS Appendix II of this study presents information on Pacific Rim marketing potential for charcoal. Titled "The Export Potential for Charcoal Made from Low Grade Alaska Hardwoods and Softwoods," the report looks at issues affecting development of an in-state charcoal industry. The report touches on issues associated with transportation and market- ing. Historically charcoal has been produced worldwide, resulting in little likelihood of any large, untapped market. But it is necessary to examine the existing lump and briquet markets in order to assess where Alaskan-produced charcoal might be competitive. The Asian market imports charcoal briquets and exports lump charcoal. The two major importers are Japan and Korea. In 1983 Japan importea about 4,000 metric tons of charcoal at an average price of $218 per ton, while Korea imported about 2,000 tons at an average of $272 per ton. Asian exports amounted to 36,000 tons of lump charcoal, 50 percent of which came from Indonesia. The average price at the exporting port was $87.55 per ton. The U.S. market for charcoal briquets has shown a steady increase for the past 30 years. In 1984, sales amounted to over 772,500 tons at an 1769/495 -7- industry computed value of $494 per ton. Exports in 1982 amounted to about 14,100 tons at an average price of $397.80 per ton. Canada's imports for the same year were 12,000 tons. The Alaska market is severely limited by population size and lack of manufacturing operations. Available data indicates sales of 500-700 tons per year of briquets; however, a recent survey indicated use of nearly 1500 tons per year. A range of 700-1000 tons per year is proba- bly realistic. The Alaska railroad has used about 120 tons per year for the past 3 years (more in prior years) to combat icing in tunnels south of Anchorage. Tunnel improvements are expected to decrease this amount further. Additionally, small quantities are used as an agricultural soil conditioner. This demand may increase but will likely be very price-sensitive. Retail price for regular briquets in Anchorage in April 1985 ranged from $3.39 to $4.19 per ten-pound bag. The railroad paid 19.3¢ per pound in car load lots. A charcoal briquet wholesaler in the Portland area, on the other hand, can purchase ten pound bags from Missouri for $1.58 delived in Portland. Kingsford - the goliath of the industry - is quoting $2.85 per ten pound bag at its Oregon plant for the year 1986. In order to be price competitive, charcoal would have to be delivered to the Alaskan retailer for no more than $3.00 per ten pound bag; to the West Cost wholesaler for no more than $2.50 per ten pound bag, and to the Orient for $250 per ton. 1769/495 - 8 - Alaska-produced charcoal could be price competitive in the Alaskan market, and possibly in the West Coast market, depending on the cost of shipping and on market acceptance. Costs of shipping to the West Coast would add about $0.50 to the cost of a ten pound bag ($0.45 for trans- portation and $0.05 for loading). Market acceptance of a locally-produced product would depend on packag- ing and advertising. A recent survey, for example, noted that after- taste and difficult starting were the two most negative factors concern- ing the use of charcoal. Without petroleum or coal additives, pure Alaska hardwood charcoal would be a premium product with no aftertaste. Addition of sodium nitrate would increase ease of starting. Heavy startup advertising expenditures would be necessary to make the consumer aware of advantages of high-quality Alaska charcoal. Advertis- ing expenditures by Kingsford probably account for the bulk of the $1.00 per sack difference in wholesale price. Counter advertising and price cutting by the major producers in reaction to a new product should also be anticipated. Introductory advertising expenses might be lowered by limiting the geographic sales area so that advertising expenses could be concentrated. Under the conditions outlined, break-even price (the price at which an Alaskan producer would recover his costs) to a West Coast wholesaler would be about $2.58 per ten pound bag -- $0.27 under the Kingsford price, but $1.00 above the Missouri price. Advertising and shipping 1769/495 = 119) |= costs would be less for the Alaska market, so that the break-even price would be about $2.00 per ten pound bag, or a proft potential of $1.00 per bag. Production and shipping costs from Alaska would exceed the current market price in Japan and Korea. PLANT AND EQUIPMENT Appendix III of this study provides information on plant and equipment cost considerations. Manufacturers' information on equipment provides basic data for estimating production costs for lump and briquet char- coal. The largest and most efficient plant feasible will, of course, yield the highest profit margins. In order to reduce raw materials’ transporta- tion cost, the plant should be located as near as possible to the source. It should also be readily accessible to railroad and highway transportation for shipping the finished product. To reduce land costs the plant should be on leased public land. A 30,000 ton per year plant at a site near Willow meeting these criteria could produce briquets for $1.88 per ten pound sack. Particulate emissions from furnaces or kilns used to manufacture char- coal are an-_ environmental consideration. Alaska regulations [18 AAC 50.050(b)] restrict particulate matter to 0.05 grains per cubic foot of exhaust gases. A furnace burning the pyroligneous products would have no difficulty meeting this standard. It is questionable 1769/495 - 10- whether a kiln could meet this standard because of the difficulties of making accurate measurements from adjustable orifices while the kiln is being fired. The visible emission standard of 18 AAC 50.050(a) would pose no problem for a charcoal furnace, but might also cause difficul- ties for a kiln. Total particulate emissions in a given geographical area over a year would probably be reduced because of the lower fre- quency of burning of slash piles. OUTLOOK The most optimistic scenario in the study is a 30,000 ton per year briquet plant capturing the entire Alaska market at a gross profit of $1.00 per ten pound sack and selling the remaining 29,000 tons on the West Coast at a break-even price. This would mean a gross profit of $200,000 per year on an investment of over $8.5 million. This is clearly an inadequate return for such a high-risk investment, but there are a number of possibilities which might change the break-even sales to profit-making sales in the future. Raw Material Cost Improvements in harvest technologies might decrease the cost of raw materials. Development of the logging equivalent of a grain combine (where trees are processed from the stump to a load of chips in one pass) is a possibility. A publicly-financed program developing access roads to natural resources would significantly lower current logging 1769/495 =)le= costs. Because the cost of labor is a major component of raw material cost, any reduction would substantially reduce the overall production cost. Market Conditions A decrease in the value of the dollar may make Alaska charcoal more competitive in the Pacific Rim market. This would, of course, also be true for all other domestic producers, so that the advantage would be real only if there were no excess production capacity in the industry. Financing Inasmuch as interest amounts to two-thirds of the overhead costs, innovative financing methods offer a possibility of improving the profit potential. Certain wood-fired, co-generation facilities are eligible for tax-exempt financing. Equity share financing done by agencies like the Alaska Industrial Development Authority may reduce the cost of capital. Continued decline in interest rates may make conventional financing more feasible. Side Benefits Utilization of the heat generated during charcoal manufacture may offer some additional profit potential. Under the Public Utilities Regulatory and Power Act (PURPA) a local utility is required to purchase 1769/495 - 12- co-generated power at its “avoided" cost - the incremental cost it would incur to produce that amount of power. For the Matanuska Valley, this is estimated at less than half the selling price of the power. In more remote areas, this ratio could be even greater. Where power or fuel costs are very high, it might be feasible to produce power or steam for the local market and "co-generate" charcoal. Under this scenario, an investor (most likely a native regional corpo- ration) could establish a number of small capacity furnaces, such as those described in attachments to Appendix III, at small rural popu- lation centers. These would produce either electricity or steam heat and charcoal. The charcoal would be transported to a central processing location and then to market. The benefits of such a scheme would include cheaper heat or electricity in the rual areas affected, added employment and a market for otherwise wasted timber. These benefits, added to the profit potential, might well make the project feasible. 1769/495 - 13 - 1769/495 APPENDIX I Raw Material Supply Theodore G. Smith Willow, Alaska February, 1985 mah, sep ap ae RAW MATERIAL SUPPLY There are two major sources of stumpage in the Railbelt area at present. The first is timber sales by public agencies. The second is salvage material from clearing operations. The amount of such material can be estimated within acceptable limits from inventory data assembled by state and federal agencies and other readily available sources. A basic assumption of this study is that any plant that proves feasible will be located in the Railbelt in order to take advantage of rail shipment of raw materials and finished products. Accordingly, raw material that is readily accessible to the railroad and lies within relatively short hauling distances is of primary interest. For all practical purposes this translates into stands in the Matanuska-Susitna Valley. Although the State Constitution requires sustained yield management of renewable resources, only those areas designated by classification action or by the legislature are, in fact, available for long term production of forest material. On all other lands, the timber resource is considered to be non-renewable. In the case of lands sold for agricultural use, timber is subject to incentives for rapid removal without regard for intrinsic value. Since no areas in the Matanuska- Susitna Valley have been legislatively designated for forest management, 1 the Susitna Area Plan” provides the only designation of lands available 1769/495 - 15 - for long term production of forest products. The Willow Sub-Basin Area 2 and the Fish Creek Management Plan® are both encompassed within Plan the area of the Susitna Area Plan but have more detailed information available and are not included in the computation for the Susitna Area Plan. Timber volumes in the three plans cited are given in terms of thousand board feet (MBF) of saw logs (8" DBH and over) and cords of firewood (5" DBH and over). No estimate is given for total biomass available, but it is possible to extrapolate an estimate from other data. The most efficient method of harvest is by whole-tree logging to a central wood yard where the trees are sorted and manufactured for their highest economic return. In such a situation, the saw logs and firewood would be segregated and the tops and undersize material would be chipped. The U.S. Forest Service? has estimated that the ratio of bole to top is 1:1 for interior hardwoods and that interior lands average 55 tons per acre of biomass. Applying these factors to volumes given in the Willow Sub-Basin and Susitna Area Plans the following annual volumes are estimated to be available: Near term (accessible now or within 5 years) Volume ACRES SAWLOGS CORDWOOD ADD'L TONS Susitna 8,000 13MMBF 80,000 cords 324,000 Willow 780 1,300 MBF 7,800 cords 32 ,000 1769/495 - 16 - The conclusion is that over 350,000 tons of chips are available annually from accessible state lands designated for forest management and borough lands included in the plans. Note that this is a minimum estimate, in that it is assumed that all boles are processed for either sawlogs or cordwood when, in fact, it may prove more profitable to produce chips than cordwood. Also, no allowance was made for under-size material. Depending on shipping costs, Tanana Valley timber stands may also contribute to the raw material supply. According to the U.S. Forest Service® the Tanana Valley has 2 billion cubic feet of net growing stock. Using an 80 year rotation, this amounts to 25,000,000 cubic feet or 875,000 tons of chips annually. In order to justify a large investment in plant and equipment, a firm supply of raw materials must be available. This means that a long term sale from the state (the only entity with sufficient land base to guarantee the needed volume) is essential. To date, state efforts in the valley have been geared to small sales and personal use permits. The next five year sales plan will show a shift to larger, longer term sales "in order to encourage the industry."® SALVAGE MATERIAL A major source of raw material is the salvage of timber removed in the course of development activities. While not the only source, the state's agricultural development program is the largest. 1769/495 -17 - Under this program, agricultural lands are usually sold with a require- ment that the land be planted within a specified period of time. The Division of Agriculture keeps statistics on the progress of planting activities. They have provided the following data:’ Acres of Clearing Ready Sale Total Wooded Required to Plant Name Acres (Est). by Contract 1984 Bartlett Hills 8172. 5000. 2882. 300. Scotty Lake 2160. 1400. 0. 0. Little Su 560. 300. 203. 0. Nancy Lake 200. 100. 66. 0: Moose Creek 667. 600. 238. 0. Pt. McKenzie 14,586. 14000. 9527. 3000. Rabideux 2342. 2000. 1150. 0. Homesteads 4230. 3500. 1033. 0. Borough 10720. 5700. 5300. Unknown Some of the time requirements for completion of planting are tied to development of access. In some cases there is no time requirement, only a restriction that the land may not be used for other than agricultural purposes. The planting requirements are in terms of percentage of the Class II and III farmland in each individual parcel. Since the best 1769/495 - 18 - trees grow on the best land, all of the acreage required to be planted will produce at least 55 tons per acres of biomass. Since clearing precedes planting, the cleared acreage is not synonomous with ready to plant acreage. Of the total of 20,400 acres required to be planted, no more than half have been cleared. In addition, most farmers will clear more than the minimum required. It is a conservative estimate that about 15,000 acres containing at least 825,000 tons of material remain to be cleared under this program. The amount of raw material available from development projects is difficult to estimate. The Matanuska-Susitna Borough Platting Officer reviewed about 15,000 acres of subdivisions in 1983 and about 16,000 acres in 1984. He estimates that about 50 percent of a subdivision will be cleared. If the pace continues, this would provide 440,000 tons of chips annually. Cook Inlet Region, Inc. is the only other major landowner in the area. They own about 27,500 acres, mostly in the Kashwitna area and along the Glenn Highway near the Matanuska Glacier. They have no firm development plans at present, but would likely be interested in a timber sale. Finally, two special cases need to be considered: the Fish Creek Agricultural area and the capitol site near Willow. The Fish Creek Management Plan covers about 45,000 acres of state and borough land. It allocates 20,750 acres of this for agricultural purposes of which 15,978 acres is Class II or III farmland. There is no allocation of land for 1769/495 - 19 - forest management. The plan proposes that the farm development schedule be extended to allow for harvest of timber. Probably 10,000 acres will be cleared in this project which would provide at least 550,000 tons of chips. Access would have to be developed before this is feasible. The Capital Site consists of 84,000 acres set aside for relocation of the capitol. With the vote against funding for the move, it has been indefinitely postponed. There is, however, no legal bar to timber harvest in the area. In fact, the constitutional mandate for sustained yield management of renewable resources would seem to require it. However, it would undoubtedly take a great deal of time with numerous plans and hearings before the material could be made available. A major constraint on the utilization of material from agricultural projects such as Pt. McKenzie is the state lending process. Clearing loans for farm development are made up to a maximum determined by the cost of clearing by chaining, piling and burning. Interim payments are available upon completion of the traction trails, chaining, and piling. This has the effect of encouraging waste of the timber. In light of the Fish Creek Plan recommendations, it appears that similar practices would not be followed there. RAW MATERIALS COST The most efficient and economical method of chip production is whole tree logging using shears on a feller-buncher, skidding to a central 1769/495 - 20 - wood yard with a grapple skidder, chipping and blowing the chips direct- ly into a van and transporting vanloads to the point of use or of trans-shipment. Bio-energy Supply of Wasilla is currently producing chips by that method. The company feels that it can produce chips in quantity and deliver them within about 25-30 miles of the woodyard for a price of $22 per ton. This would include up to $1 for stumpage, depending on the distance and difficulty of haul®, To date, the company has worked strictly on salvage material and has paid no stumpage. They have not dealt with the state or borough because of difficulties in getting accessible timber sales of sufficient size. CONCLUSIONS In the Matanuska-Susitna Valley, there is available from existing agricultural sales and the proposed Fish Creek sale an estimated 1,375,000 tons of chips. There is an estimated 440,000 tons per year available from subdivision clearing. Sustained yield harvest from public land presently accessible or ex- pected to be accessible within five years amounts to over 350,000 tons per year. There are other possible sources from native lands, the Tanana Valley, the Capitol Site, and remote lands that may become accessible. 1769/495 -21- In sum, there is a base amount of 350,000 tons available in perpetuity with another 2,000,000 tons available in the next three years. All of this can be delivered to the railroad or the mill at the railroad for $22 per ton (1984 dollars). 1769/495 - 22 - NOTES Forestry Element, "“Susitna Area Plan" (Department of Natural Resources, State of Alaska and Matanuska Susitna Borough, 1983) Dess "Willow Sub-basin Area Plan" (Department of Natural Resources and Department of Fish and Game, State of Alaska, and Matanuska Susitna Borough, 1982) p.18 "Fish Creek Management Plan", (Matanuska-Susitna Borough and Department of Natural Resources, State of Alaska) p. 14 John Yarie and Delbert Mead, "Aboveground Tree Biomass on Produc- tive Forest Land in Alaska; Research paper PNW-298 (U.S. Forest Service, 1982) p. 4 Willem W. S. van Hees, "Timber Resource Statistics for the Tanana Inventory Unit, Alaska," 1971-75; Resource bulletin PNW-109 (U.S. Forest Service, 1983) Bill Beebe, Matanuska-Susitna Area Forester, Division of Forestry, State of Alaska; interview December 7, 1984. Dan Allison, Natural Resources Officer, Division of Agriculture, State of Alaska; letter to Ted Smith, October 30, 1984. 1769/495 - 23 - 8. Ted Neilsen and Howard Nugent, Bio-Energy Supply Co; Interview, December 1, 1984. 1769/495 - 24 - APPENDIX II The Export Potential for Charcoal Made From Low Grade Alaskan Hardwoods and Softwoods G.F. Schreuder T.R. Waggener M.P. Clasby College of Forest Products University of Washington Seattle March 1985 1769/495 If. Tt. IV. Table of Contents Overview Pacific Rim Charcoal Markets A. Current Markets B. Net Charcoal Exporters Present Producers Assessment Transportation Market Potentials References = 26. = 14 16 22 30 32 I. OVERVIEW This study was done to explore the possibility of exporting charcoal from the Seward, Alaska area. In investigating any product's market feasibility, three general cost areas are examined: 1. Production 2. Transportation 3. Marketing and Selling While all three areas are of importance, the purpose of this marketing paper relates only to transportation and marketing. To give a clear picture of issues involved with charcoal marketing, this report is broken into four main sections. The first section looks at market uses and prices of charcoal in countries of the Pacific Rim. Charcoal is produced and used in every part of the world, but transportation costs and cheaper local production may limit Alaskan charcoal's market access. Major areas of the world and their sources of charcoal are listed below: Area Major Suppliers Europe Spain, Yugoslavia South America Brazil Africa domestic India - domestic In addition, there are a few countries (specifically Mexico and the Middle East) where imported charcoal cannot compete with other lower cost, more efficient energy sources. Within the research area of the Pacific Rim, countries are separated into net importers and net exporters. Net importers represent potential markets and net exporters form the competition. Since =e 27 charcoal is an established fuel source, there is little possibility that there are large untapped markets that could be developed by a new supplier. The second section of this analysis is developed from interviews of charcoal producers in the United States who are members of the Barbeque Industry Association (BIA). This is the only formal group of affiliated charcoal manufacturers. The status of current U.S. charcoal exports as well as product and marketing strategies are discussed. The third part of this report provides a detailed transportation cost breakdown. Different transportation methods, modes, and carriers were investigated in an effort to unravel this complex cost component of charcoal exporting. The fourth part summarizes the three main market potentials. - 28 - II. PACIFIC RIM CHARCOAL MARKET Sixty percent of all wood taken from the world's forests is believed to be burned as fuel--either directly or by first converting it into charcoal. Charcoal is mainly used as domestic fuel for cooking and heating but it is also an import industrial fuel. This section identifies current charcoal uses in the Pacific Rim markets. This section is presented in two parts. The first part describes current markets. Net importers of any appreciable volume of charcoal are discussed with regard to uses of charcoal by sector, prices, volumes of charcoal used and any special considerations regarding charcoal marketing. The second section is devoted to net exporters of charcoal in the Pacific Rim, amounts exported, destination of exports, and prices per ton. A. Current Markets 1. JAPAN Japan's uses of charcoal are in keeping with their ritual specific culture. Different grades and forms of charcoal are utilized in various ways. Restaurant and Home Use--This requires the highest grade of charcoal, and it is supplied by domestic production. The charcoal must emit no smoke and burn quietly without sparks. Great care is taken to insure these qualities as this grade of charcoal is a fundamental part of the Japanese tea ceremony. Price is not a factor limiting the volume consumed. The Japanese are the master producers of this type of charcoal and this grade makes up the small amount of charcoal exported from Japan. OQ Industrial use--Large amounts of charcoal are used in foundries and forges for the extraction and refining of metals (especially iron) and in numerous other metallurgical and chemical applications. This market utilizes the largest percentage of imported charcoal. 1983 Delivered Price Wholesale F.A.S. Japan from countries indicated (industrial use) US$/metric ton (1983) Singapore 130.00 Malaysia 156.00 Indonesia 349.00 Thailand 377.00 Philippines 143.00 average price: $218.00 Briquet (coal & charcoal)--This composition of coal and charcoal is used for outside heating, most commonly for the heating of "hot tubs" or baths. The briquets are about twice the size and of the same configuration as U.S. western barbeque briquets. Activated Carbon--This product is used for the filtration of many substances, primarily water, soy beans and sewage. Other Uses--This category would include the utilization of western barbeque briquets (U.S. volume was 146 metric tons in 1983). This figure is probably underestimated because many tariffs list charcoal exports out of the United States under a "grocery store" classification. = 30 = Charcoal entering Japan under this tariff heading would therefore not be reported as charcoal imports. Trends--Total imports of charcoal into Japan reached a peak in the early 1970's. Many Japanese industrial plants and home owners, faced with the oi] shortage, chanaed over to charcoal as a fuel. However, with the recent drop in oil prices this trend has reversed and seems to be “oil price dependent". The continued westernization of Japan would seem to indicate a petential opportunity for increased American briquet imports. - 31 - Japan: Charcoal consumption by use (in metric tons) Restaurant Industrial Use Briquet and Home “Steels Fuel (Coal + Activated Year Total Use & Metal charcoal) Carbon Others 1967 562,000 68 485,000 69 363 ,000 70 291,000 71 289 ,000 72 252,000 73 199 ,000 74 211,135) 59,541 8,434 30,876 72,983 38,701 600 75 168,652 53,202 65111 23,303 41,157 44,279 600 76 152,090 36,982 7,660 26,427 36,285 44,136 600 al 144,652 29,470 1057. 16,248 37 ,864 52,913 600 78 137 ,063 28,372 7,585 10,248 SES 58 5537 600 79 145,605 31,234 7,610 10,260 35,595 60,306 600 80 140,255 36,824 8,350 8,500 33,285 52,696 600 81 135,603 37,186 6 ,637 8,348 28,590 54.242 600 82 127 ,831 29,854 6,366 8,128 25 ,866 penton ls 600 83 115,944 31,058 6,011 0 22,091 56,184 600 Source: Japan Forestry Agency, Forest Products Section - 32 - - €€ - Japan: Charcoal Exports and Imports by Source (in metric tons) Export Import Year Total Singapore Malaysia Indonesia Thailand Philippines Sri Lanka Others 1966 10 12,340 - 25 - 49 3,873 3,114 5,279 67 22 14,946 - - 27 148 6,183 4,014 4,574 68 146 9,370 - 3 63 99 5,098 2,939 1,168 69 120 10,224 - 156 - Bl 4,300 4,225 1512 70 101 15,765 34 33 - 71 6,752 8,243 632 71 53 29,718 2,306 4,829 - 1,798 13,443 6,687 655 72 94 14,003 1,464 4,813 5,335 1,324 565 374 128 73 26 13,117 841 2,192 7,488 2,425 - - 171 74 21 28,554 6,205 2,805 15,625 3,159 66 - 694 15 26 19,815 3,375 1,269 11,009 4,040 17 - 105 76 29 15,563 4,603 947 8,173 1,615 - - 225 77 41 14,696 7,332 269 6,747 97 60 52 139 78 57 9,673 2,515 - 6,899 - 80 - 179 79 68 12,944 5 ,827 - 6,644 - 27 - 446 80 92 18,468 9,830 49 7,793 49 26 30 691 81 397 15,063 6,636 34 7,301 10 - - 1,082 82 207 9,359 3,957 233 4,462 2 - i 698 83 203 * 4,278 3,129 438 156 30 39 - 486 * * Destination Korea 202 Singapore 1 ** Originating from ROC 213 China 486 USA 146 Source: Japan Forestry Agency, Forest Products Section 2. KOREA Korea has a long history of using charcoal for both heating and cooking. Farmers supplied consumers directly from small production sites on their land. The Korean oak, from which most of the Korean charcoal has traditionally been produced, has been depleted in recent years. This has forced many small producers out of business. The decreased source of domestic supply coupled with regulations to preserve the remaining oak has caused Korea to import more and more of its charcoal. Charcoal supplies are shown below for 1983 by source Source of imports and amounts (metric tons) Country Amount Australia 1,009 Philippines 870 Japan 141 Singapore 66 Thailand 39 TOTAL: 2,125 Domestic Production: 1,133 tons Total consumption: 3,258 tons Major current uses of charcoal in Korea include the following: Cooking (35%)--Some charcoal is used for cooking of private meals, but the majority is used in restaurants. Traditional Korean restaurants have a large cut of meat cooking over charcoal from which servings are sliced. aa 58 sn Heating (35%)--A large number of residences are heated with charcoal or a combination of coal and charcoal. Charcoal is commonly used as a starter fuel for the coal. Industrial (30%)--This portion of the charcoal market combines activated charcoal users with charcoal users in the steel and metals industries. The following are 1983 prices: Averaae imported price $272.00 US/Ton C.1. F. Retail for barbecue 450 Won (@50¢/kg) Retail for Industrial 350 Won (@40¢/kq) The current demand is for the so-called "natural Jog” charcoal, a cylindrical product 3 cm in diameter and 20-30 cm long. These logs should not be pressed or formed. Some special comments relevant to the Korean market are summarized below: --Consumers complain of high gas emissions (sparking) during burning. --Industrial users complain that imported charcoal is not suitable for effective extraction. 3. HONG KONG Hong Kong has been consistently importing about 20 metric tons annually of charcoal since 1969. Charcoal use is split 50-50 between domestic fuel (for cooking and heating) and industrial use (predominantly for fuel). The Philippines have presently captured Hong Kong's charcoal market, supplying up to 90% of its consumption. The Philippines are - 35 - efficient producers of relatively good charcoal, are are only six hundred miles from Hong Kong. A heavily travelled trade route and an established chain of suppliers give the Philippines an advantage in Hong Kong that is very hard to beat. 4, UNITED STATES/CANADA The U.S. and Canadian market was the market with the most guarded information about pricing. Direct inquiries to producers and the Barbeque Industry Association about pricing were met with a refusal to provide price information. Based on 8.1.A. estimates of briquet sales, the value of a metric ton of charcoal briauets was calculated at about $494.00 in 1984. This figure would seem to be too high in relation to other prices reported in this study. The market for charcoal in America and Canada is almost exclusively for briquets. While there is some lump charcoal used in the steel and metal industry, it is supplied by four Jump producers in the U.S. With the depression in the steel industry, competition for this small market segment is intense and producer information concerning volumes and pricing is unavailable. Sales of charcoal briquets are coordinated through large, chain grocery stores. This distribution method explains Canada's high imports of charcoal (12,000 tons in 1982). Producers of charcoal briquets in the U.S. ship their product (especially "match light" and “quick-start" items) to international grocery store locations in Canada to fulfill performance contracts. Some promotional literature from the B.I.A. show that sales and volumes of charcoal briquets have risen steadily for 10 vears in the 2! 996i = U.S. and the producers of charcoal have been intergrated into a "barbeque industry" with other related products. The Value of Charcoal Briauet Sales in the U.S.** Millions of Percent change Year* Dollars from previous year 1973 88 21.6 1974 107 21.5 1975 130 21.5 1976 160 23.1 1977 185 15.6 1978 210 13.5 1979 235 11.9 1980 255 8.5 1981 280 9.8 1982 312 11.4 1983 345 10.6 1984 382 10.7 1973-1980 -- Calendar Year 1981-1984 -- Fiscal Year - 9/1 to 8/31 **Source: BIA = 37-6 The Amount of Charcoal Briquet sales in the U.S. (in metric tons)** Change From Percent Change Year Tons Prior Year from Prior Year 1967 359,547 -- -- 1968 426,256 66,709 18.5 1969 483 ,557 57,301 qs (34 1970 537,285 53,728 1.1 1971 596 ,983 59,698 alee 1972 621,122 24,139 4.0 1973 630,430 9,308 1.4 1974 653,204 22,774 31.6 1975 681,520 28,316 4.3 1976 703,000 21,480 Sie L, 1977 716,761 13,761 1.9 1978 689 ,032 (27,729) (3.8) 1979 713,749 24,717 9). 5) 1980 741,734 27,985 3.9 1981 745 ,000 3,266 4 1982 764,370 19,370 2.6 1983 769,487 5,117 .67 1984 772,501 3,014 .39 1973-1980 -- Calendar Year 1981-1984 -- Fiscal Year - 9/1 to 8/31 **Source: BIA The above tables from the BIA show that for over three decades, the barbecue industry has recorded a continuous and uninterrupted growth in sales. Forecasts of markets which are available now indicate that growth mav persist through the 1980's because consumer demographics will run heavily in favor of such continued expansion. Success of the barbecue industry in the next decade may depend upon many factors. The industry has no control over some market determinants, but many factors can be influenced definitely by sound long range planning and promotion. Consumers are constantly bombarded by the ever increasing promotional advertising and greater sophistication of sales and marketing strategies aimed at inducing them to buy one product or = 38 = another. Barbecue products are competing with literally thousands of spending options by consumers, including a wide variety of cooking techniques and food preparation. It is very favorable that the food and grocery products industry, including retailers, have demonstrated a growing interest in barbecue related products through tie-in advertising and merchandising programs to capitalize on the barbecue sales opportunities. Total U.S. Barbeque Industry Sales (millions of dollars retail)* 1981 1982 1983 1984 1985 Food & Grocery Items $3 ,600 $3,900 $4,200 $4,600 $4,800 Charcoal Briquets 280 S12 345 382 418 Barbecue Grills 379 453 489 530 570 Lighter Products 72 88 107 125 143 Tools & Equipment 23 25 27 29 Si Miscellaneous 1 3 4 4 4 TOTAL $4,355 $4,781 $5,170 $5,670 $5,966 Number of Individual Family Barbeques (in thousands)* 1978 1980 1985 Charcoal 669,550 697,066 802,727 Gas 167 ,838 174,746 233,904 Electric 11,260 11,731 24,448 TOTAL 848,648 883,543 1,061,079 *Source: BIA industry estimates and forecasts -39 - B. Net Charcoal Exporters Charcoal exporters within the Pacific Rim are centered in the southeast corner of Asia. They all have large charcoal consuming populations which has created an organized charcoal industry. In addition, all the countries have adequate supplies of wood as a raw material for charcoal. The species used are varied but almost totally tropical hardwoods. The island countries of Malaysia, Indonesia, and the Philippines are the main exporters of charcoal within the Pacific Rim and also have a complicated flow of trade in charcoal between themselves. Some areas of each country, because of close proximity to production. import charcoal from another while remaining net exporters as a country. Indonesia is by far the leading exporter of charcoal in the Pacific Rim (43,900 metric tons in 1982). The Philippines only exports about half that volume (23,600 metric tons in 1982). Indonesia is the leading exporter in tonnage, yet Malaysia has the lowest export price per metric ton at $58.59 in 1982. Major Pacific Rim Charcoal Exporters (1982) Total revenue Price/Ton (in S$) Volume (in metric tons) (in USS) at port of export Indonesia 43,900 3,733,000 70.55 Malaysia 18,500 1,084,000 58.59 Philippines 23,600 3,348,000 141.86 The charcoal exported is usually bagged in 20 to 50 Ib. sacks. Shipment is by barge or small bulk carrier ships that travel close to the coast between ports. - 40 - The product exported is 100% lump charcoal in the "natural" log shape. No pressed or formed charcoal is produced. Export Trends Price/Ton ($ US) Volume (in metric tons) at port of export 1977 1982 1977 1982 Indonesia 47,353 43,900 31,23 70.55 Philippines 19,000 23,600 115.79 141.86 Malaysia 10,300 18,500 31.65 58.59 Five year trends in charcoal exports seem to show some interesting developments. Indonesian and the Philippines’ exports have remained fairly steady while Malaysian exports have significantly increased. This increase would seem to be attributable in large part to Malaysia's ability to maintain a lower price per ton. The Philippines export price would seem to be consistently high, maintaining a 70-80 dollar per ton premium. The reason that for this is two-fold. First the Philippines has a location advantage in relationship to a major importing market, Hong Kong. The F.0.B. exporting price per ton can be higher because the freight advantage helps to keep the market price competitive. Secondly, the Philippines places more emphasis on quality in production and can, therefore, demand a price premium. A final word about charcoal exporting within the Pacific Rim. Singapore is often cited as a major source of charcoal exports in the Pacific Rim. However, this is misleading. Singapore only serves as a central location in southeast Asia for accumulation and storage of charcoal which is then re-exported to the major consuming countries. - 41 - III. PRESENT PRODUCER ASSESSMENT Interviews with charcoal producing members of the Barbecue Industry of America were conducted in late 1984 and early 1985 to explore the methods and strategies of exporting charcoal. Information was gathered under the stipulation that no specific company be mentioned. Some figures are presented as group averages to accomplish this end. Questions to the manufactures were grouped into the following three areas. 1. Reason for product choice in exporting. 2. Special packaging and transportation considerations. 3. Overall marketing strateay. The area of product choice for export mainly centered around the desirability of "lump" or "briquet" charcoal for export. The exporting “ producers were almost unanimous in their attention to marketing briquet charcoal for the following reasons: a. Production Considerations--The marketing of briquets only entailed "changing the bags" to foreign labels. Many expressed concern over interrupting their production cycle to package Jump charcoal. b. Marketing Direction--Most producers saw their export package being consumed by a "high end" market user in a foreign country. However, the backyard barbecue is a distinctly western idea. Most manufacturers were responding to a demand by "imitation" users emulating American tastes. Charcoal used as a gourmet item commands a gourmet price. The lump charcoal that is sold, is sold in conjunction to this initial briquet demand. As much as 95% of U.S. charcoal export is in the form of briquets. c. Shipping Costs--A powerful component of the present exporters strategy is transportation. This area will be discussed in detai! in a =42 = later section but one aspect of containerization is appropriate to stress here. Container costs are on a per container, not per pound, basis. So it behoves the shipper to use space as economically as possible. Briquetted charcoal is twice as dense as lump charcoal, where selling on a per pound basis the per unit weight transportation cost is halved by exporting packaged briquets. Since there is very little bulk charcoal shipped, there is very little information concerning the packaging of this product. All exporters and importers contacted or interviewed considered bagged charcoal the most economical way to ship. Among the reasons given were ease in (1) loading and unloading, (2) clean up, (3) storage and (4) packaged ready for sale. Export briquet packaging breaks down as follows: Commodity Packaging Total Weight % of total 5 lbs bag 6 bags/unit 30 Ibs unit 60 10 Ibs bag 5 baas/unit 50 Ibs unit 40 20 lbs bag 1 bag/unit 20 lbs unit 71 In addition to straight bag loading, one exporter has had great success in Japan by marketing a cardboard egg carbon with each "eaa hole" filled with a briquet. The carton was then shrink wrapped in plastic (total 26 oz. unit). They indicated. that up to 90 % of their exports were in this eag carton form. They attributed this success to the ease in handling (the whole package can be burned and consitituted the amount needed for one barbecue) and its appeal to the Japanese sense of cleanliness and effective packaging. All exports of charcoal from the U.S. is by enclosed container. There has not been a centralized area of demand large enough to support eHAgee the full loading of bulk loaded ships normally used in the transportation of coal and grain. Export containers come in two basic sizes 20' and 40'. A 40' container will hold @46,000 Ibs or @2,700 cubic feet of material. A 20' container will hold @20,000 Ibs or @1,050 cubic feet of material. There has been a recent trend to the 20' size, directly attributable to the lower financing needed to acquire a container of this size. Most containerized shipments are, "floor loaded", stacked from floor to ceiling, bag on baa. Palletized loading is done, but the addition of the 40" x 48" x 4" pallet decreases volume by @15 % (20' basis). Factors other than palletization that will add variability to loaded volume and costs are: Container Walls--Ribbed or plywood walled containers will decrease loaded volume. Straight base walls are preferred. "High Cube" Container--A taller than normal (usually 13'6") container is essential for effective movement. Since the restrictive factor in shipping charcoal by container is volume rather than weiaht, these "high cube" containers are the most economical method of shipping. Special Considerations--A final shipping consideration involved in packaging is that containers must be kept dry. If charcoal becomes wet and then dries, it may spontaneously ignite, having serious consequences. The predominant export strategy among charcoal exporters is to set up an exclusive distributorship. The distributor is commonly a reliable wholesaler of a variety of household and grocery items. Exclusive distributership agreements typically involve: six months trial basis, private label, sales terms such as FOB terms at a US port, 2% discount = 44. = for payment within ten days and net payment due within 30 days, and finally an irrevocable letter of credit. The six month trial enables both sides to enter into the agreement without being "locked in" for a lona period. Six months is usually long enough to assess the honesty and marketing strength of the chosen distributors. The private label serves as producer protection, (protection of the company name from poor representation in the foreign country). Under a private label, the producer retains the ability to market the product in the same country even after an initial attempt fails. He need only change distributors and the private label. Selling F.0.B. at a U.S. port relieves the producer from foreign exchange problems and keeps the transaction squarely under U.S. law and jurisdiction. A discount is given for prompt payment which allows more freedom in company finances. An irrevocable letter of credit js considered a must when dealing overseas. This will ensure protectior against non-payment because of bad credit. The product involved in these distributorships has been almost exclusively briquets. The selling strengths are price and quality. The quality consideration was stressed in many interviews. American producers feel that they make a better charcoal than anyone else and emphasize this point in sales. Most producers were very reluctant to discuss where their export material was going. However, indications were that exports were split between Canada, Western Europe, and Japan. - 45 - Volume and value of U.S. Exports of Charcoal (values are F.0.B. exporting port) Volume Value Average Price (in metric tons) (in U.S.$) (in $/ton) 1977 33,300 5,707,000 171.38 1978 28,400 5,672,000 199.72 1979 16,300 7,003,000 429 .63 1980 10,500 4,566,000 434.86 1981 18,000 9,225,000 p2150 1982 14,100 5,609,000 397.80 No specific reasons for the fast rise in export price could be given; however, it is speculated that the continued rise in the value of the U.S. doilar and the increased demand by "imitation" users are important factors. No figures are presently available, but if we assume that 90 % of Canada's charcoal imports (12,000 metric tons in 1982) came from U.S. distributors, then a total of 3,300 tons were exported to the rest of the world. 146) = CHARCOAL BRIQUET MEMBERS ARKANSAS CHARCOAL CO., INC. 670 Union Ext. - Ste. 52 Memphis His., TN 38112 (901) 324-5516 Primary Rep: Andrew Sigel Vice President Alternate Rep: Donald Rieder Vice President HICKORY CHARCOAL COMPANY P.0. Box 899 Brentwood, TN 37027 (615) 373-2581 Primary Rep: R. Joseph Crace President Alternate Rep: Donald E. Crace, Jr. Vice President Sales & Marketing UHUSKY INDUSTRIES, INC. 35 Glenlake Parkway - Suite 500 Atlanta, GA 30328 (404) 393-1430 Primary Rep: 4G. Randal Anderson Executive Vice President Alternate Rep: Charles W. Warchol Vice President Marketing IMPERIAL PRODUCT CORPORATION 655 Craig Road - Suite 300 St. Louis, MO 63141 (314) 567-7722 Primary Rep: Harold Ovington Vice President, Sales Alternate Rep: John K. Wallace, dr. Chairman of the Board =| 47 & JAYHAWK CHARCOAL COMPANY P.0. Box 285 Chetopa, KS 67336 (316) 236-7256 Primary Rep. Everett Webster President Alternate Rep: Mrs. Patty McGill THE KINGSFORD COMPANY 1221 Broadway - 1/th Floor Oakland, CA 94612 (415) 271-7565 Primary Rep: Marshall A. Perry Advertising Mgr. T. S. RAGSDALE COMPANY, INC. P. 0. Box 937 Lake City. SC 29560 (803) 394-8567 Primary Rep: Gregory D. Toller Senior Vice President Alternate Rep: Thomas S. Raasdale, Jr President THE UHLMANN COMPANY P.0. Box 410 Kansas City, MO 64141 (816) 221-8200 Primary Rep: John W. UhImann President, Charcoal Div IV. TRANSPORTATION Since the deregulation of transportation in 1980 the transportation phase of a trade transaction has become more complex. The myriad of transportation modes and carriers involved with every commodity movement is bewildering. A traffic manager has become an important executive in todays corporate structure. Procurement of the best rates and services can make the difference between a profit or loss for the operation. This section will explore different rates and routes for shipments of charcoal from Seward, Alaska to the Pacific Northwest and the Pacific Rim. The rates and costs quoted are current as of early 1985. It cannot be stressed enough that each shipment must be researched individually to be competitive in todays transportation market. Transportation Route Direct shipment of charcoal is obviously the preferred aie for shipping. Direct shipment figures have been restricted to the Seward to Japan route. This is because Japan is the only market within the Pacific Rim area that could conceivably absorb a full ship load of charcoal. There is presently no direct containerized service of less than shipload (LTS) size to the Pacific from Alaska. There is the potential for charcoal to be loaded, as a backhaul, on Japanese ships that have arrived in Alaska carrying cars and steel pipe. If these ships were scheduled to return empty, the charcoal loaded in them would travel at a substantial savings to normal rates. Several problems arise in assessing the actual savings that would accrue. Empty backhauls occur irregularly and the carrier can choose to return to Japan via Vancouver or Seattle, with a better priced 49} = commodity. It would be difficult to keep a delivery schedule based on such an erratic shipping mode. The savings obtained from one shipment could be more than off-set the losses incurred by another load having to wait on the dock for a long time for the next backhaul to occur. Finally, many carriers were hesitant to load charcoal in holds normally reserved for new cars and steel pipe. Direct Shipment Cost Breakdown Loading--The loading of charcoal into the hold of the ship would have to be accomplished by the hand loading of bagged bulk charcoal (20-50 pounds) onto a pallet that would be hoisted and placed in the hold by a crane and then hand stacked in the hold. Estimates are that this method of loadina would progress at a rate of about 2,000 tons per day. Total time for loading the 20,000 ton capacity ship would be about ten days. The facilities (cranes) to accommodate this type of loading method are available at the Alaskan Railroad docks in Seward. The Suneel dock, also in Seward, operates a conveyer belt loading operation used commonly for coal. Loading by this method is faster than palletized crane loading, but the disintegration of the charcoal into fines during the loadina would off-set any loading cost advantace. Stevedoring charges Assuming loading 2,000 tons/day and off-loading 1,500 tons/day, this would amount to about $7-8.00/ton Ocean Freight Seward to Japan (east coast) $14.50-15.50 per ton Other Charges Freight Forwarders $1500-$2000.00 per transaction - 49 - Shipping Terms "Along Side"-- Chartering of ships only, stevedoring charges extra. "Liner Terms"--Chartering of ship includes Stevedoring. Containerized Shipment All exports of containerized shipments moving out of Alaska have to pass through an interim port to the South. Several interim ports were explored and Seattle, Washington was selected for comparison for several reasons: 1. An American port (vs. Canada) was preferred so as to limit double import, export customs inspection and paper work. 2. Seattle is a major point of departure for equipment going to Alaska and high cube containers for back haul are commonly and readily available. 3. Tarif rates on shipments to the Pacific Rim from Seattle are normally applicable to other major ports of departure in the Northwest. There is no significant cost advantage to ship from other ports. Transportation Rates The rates and costs of moving both 20 ft and 40 ft containers from the Seward, Alaska area through Seattle and on to Japan, Korea, and Taiwan are listed below. A variety of carriers are listed for each leg of the route to show how great the difference is between them. Rates for container movement are quoted on a per container or ona per pound basis with a minimum poundage required (effectively a per - 50 - container charge). For comparisons, all rates will be converted to a per high cube container charge based on the following weights: 20 ft 40 ft Briquet 20,000 Ibs. 46,000 Ibs. Lump 10,000 lbs. 23,000 Tbs. Container Freight Rates from Seward, Alaska to Seattle, Washington Lump Briquet Seaway Express 20' 40' 20' 40' $9.04/H.wt. 35 Min 3164.00 4158.40 6.29/H.wt. 78 Min 2453.10 2893.40 Crowley Maritime 1 Trailor 7.25/H.wt. 44 Min 3190.00 3335.00 2 Trailors 6.29/H.wt. 44 Min 2767.00 2893.40 Span - Alaska per container 650.00 1000.00 650.00 1000.00 Seaway Express and Crowley Maritime rates will not change if the pick-up spot is not in Seward proper. Span-Alaska will apply additional charges for out of Seward pick-ups as follows: Span-Alaska additional charges (Pick-up) Willow + $250.00 Palmer + $200.00 Container rates are "door to door" rates and include the dropping off of an empty container for loading. There will be a limit (usually 24-48 hours) of the time allowed for loading and unloading. Ey 5 iy) Reloading at Seattle for Export Any freight moving from Alaska for export elsewhere will have to be reloaded at the exporting port for several reasons: Equipment compatibility--The 40 ft containers that service Alaska are trailer types (with wheels attached) and are not able to load safely or properly on container ships. The 20 ft containers that service Alaska are lifted from the bottom for loading and unloading while the exported containers are lifted from the top. Carrier Resistance--The owners of the various containers do not want their equipment to move out of their jurisdiction or transportation area. They feel that if they lose control of the container they will at least lose "turn-around" time if not the container itself. Cost of Reloading Bagged material (floor-loaded or palletized) Container Cost 20' $100.00 40' $200.00 Most carriers contacted did not have experience in reloading Alaskan shipments for export, but it is common practice to have to reload imports destined for Alaska. Transportation Costs from Seattle to Selected Pacific Rim Countries A search was done of container carriers in Seattle to sample ocean freight rates on shipments travelling to Japan, Korea and Hong Kong (major Pacific Rim importers of charcoal). Because of the current strength of the dollar, exports from the United States are comparatively low. There is great competition for the exports that do develop. - 52 - Discrepencies between the rates listed for the different carriers reflects attempts of some companies to buy business. Container Shipment Costs from Seattle, Washington to Various Destinations as of 1985 (USS) Shipper Size Destination Japan Korea Hong Kona P.T. 40' 2123.43 2123.43 2123.43 Djakarta 20' 923.52 923.52 923.52 Evergreen 40' 1000.00 1000.00 Line 20' 900.00 900.00 Hanjin 40' 2027.78 Container 20' 881.92 Orient 40' 2104.30 2199.95 Overseas Container 20' 915.20 956.80 East 40' 1600 Asiatic Co. Ltd. 20' Transportation 40' Maritima Mexicana S.A. 20' 1100 In addition to ocean freight there are other costs associated with export shipments. 1. Supplement or General Rate Increase There will be a general rate increase effective March 6, 1985. The extent will vary between carriers and had not been fully revealed =, 53) = at the time of this report. The general feeling is, that a minimum of $750.00/20 ft container and $1000.00/40 ft container will be set. In addition, all rates will increase $150.00/20 ft and $200.00/40 ft container. 2. Full Adjustment Factor (Bunker) This charge will vary with carrier or may be included in Ocean Freight rate. Currently $30.00 per ton. 3. Currency Adjustment Factor (C.A.F.) Most carriers include a C.A.F. charge to Japanese parts currently 8-11 % of ocean freight. 4, Freight Forwarder Compensation (Brokerage) Approximately 2.5 % of gross ocean freight to handle the paperwork (export bill of landing, customs and receiving port procedures) 5. Container Service Charge If a container has to be broken down, the foreign port charges are as following; Hong Kona based ports $3.50/ton Japan based ports 2920 yen/ton Korean based ports $4.00/ton 6. Terminal Receiving Charge Cost of terminal handling of freight (load and unload) of about $13.00/ton. As can be seen from the variety of different costs added to the Ocean Freight, it is difficult to access a total cost for export of a commodity very far into the future. The best procedure for a company starting in the exporting business is to allow a number of steamship - 54 - companies to bid. Under deregulation, contracts between carrier and exporter can be set up to guarantee a low price for a set volume of business. A freight forwarder should also be engaged to oversee all export shipments. He can keep the producer informed about changes in shipping costs and allow the producer to concentrate on sales and production efficiency. Special tariffs or duties There are no special restrictions or costs associated with the export of charcoal from the United States to the Pacific Rim countries researched. = 5512 V. MARKET POTENTIALS A cardinal rule in foreign trade is that exporting a commodity should never be thought of as a total alternative to selling in the domestic market. The ability to gain a share of the local market is often the best gage of a product's foreign market potential. Dealing internationally only complicates matters of exchange, credit and transportation. In addition, entering a distant market from a solid local base cannot be done in a casual way. Marketing experts advise allowing a minimum of two years for starting up an overseas operation. Charcoal is a commodity that is bought and sold world wide but this study has identified three areas where Alaskan charcoal might be successfully marketed. The areas are listed below, in descending order of attractiveness; local prices are indicated also. Pacific Northwest - This market requires almost exclusively briquets distributed through food brokers. Average Wholesale Price, March 1985 (delivered Seattle) baq size $ U.S. 10 Ibs. 218 20 lbs. 4.92 (5 bags/pallet, 40 pallets/1oad) Average Retail Price per 10 1b bag, March 1985 (Seattle) brand $ USS. Scotch Boy Kec) Royal Oak 3.89 Safeway 3.59 Kingsford 3.89 = 56.= Japan - Most imported charcoal is sold though the large trading companies. Domestic production is sold directly or through exclusive distributorships. Average imported price: $218.00/metric ton, F.A.S. JAPAN (1983) 1984 Domestic Production Pricing City Size Wholesale Retail Tokyo 6 kg $3220 $ 6.80 Tokyo 15 kg $7.40 $12.00 (based on 250 yen/U.S. dollar) Korea - Charcoal is imported through commodity brokers and is of the lump variety. Average imported price: $272.00/metric ton C.I.F. (1983). Retail for Barbecue: 450 won (@50¢/kg) Retail for Industrial Use: 350 won (@ 40¢/kg) - 57 - REFERENCES Center for International Trade in Forest Products Data Bank. 1985. College of Forest Resources, University of Washington, Seattle, Washington. Fujii, M. 1985. National Charcoal Inst., Tokyo, Japan (correspondence). Nagame, Ichiro. 1985. College of Forest Resources, University of Washington, Seattle, Washington (verbal). Food and Acriculture Organization, Technical Paper 41, 1983. Rome, Italy. World Bank, Data Bank. 1983. File: World Charcoal Flows. Consulate, Republic of Indonesia. 1985. 351 California St., San Francisco, California (correspondence). Forest Products Research Society Data Bank. 1985. 2801 Marshall Court, Madison, Wisconsin. Barbecue Industry Association. 1985. 710 E. Ogden, Naperville, Illinois (correspondence). Jen, J-an. Taiwan Forestry Research Institute Head, Division of Forest Economics, Taiwan, Peoples Republic of China (correspondence). Joe, Jae-Myeong. 1985. Forest Research Institute Director, Forest Products Department, Seoul, Korea (correspondence). Unz & Co. 1984. A How to Guide for Exporters and Importers. United States Shippers. 1985. Freight forwarders. 200 W. Mercer St., Seattle, Washington. Span-Alaska Consolidators. 1985. Shiping agents. 4115 Brooklyn, Seattle, Washington. Journal of Commerce, R.A.T.E.S Section. 1985. 517 Washington St., San Francisco, California. ~=.58)= Alaskan Railroad. 1985. Anchorage, Alaska (verbal). Seaway Express. 1985. Shipper. 7400 8th Ave., Seattle, Washinaton. Crowley Maritime Corporoation. 1985. 4th and Battery Building, Seattle, Washington. Tillman, David. 1985. Ebasco Services Incorporated, 112th Ave., Bellevue, Washington. Agriculture Department, United States Exports Division. 1985. Seattle, Washington. Forest Products Journal. 1959. Continuous Residue Carbonization, Volume IX, Number 11. November. Simpson, Spencer and Young (Canada). 1985. Freight Agents, Vancouver, British Columbia. Washington State Department of Commerce and Economic Development. 1960. The Case for Charcoal Processing in Washington. Washington State Department of Commerce and Economic Development. 1961. A Study of the Potential Market for the Production of Wood Charcoal in Washington. P.T. Djakarta Co. 1985. Steamship Company, Seattle, Washington. Evergreen Marine Corp. 1985. Steamship Company, Seattle, Washington. Hangin Container Lines, Ltd. 1985. Steamship company, Seattle, Washington. Orient Overseas Container Line. 1985. Steamship company, Seattle, Washington. East Asiatic Company Ltd. 1985. Steamship company, Seattle, Washington. Transportation Maritima Mexicana S.A. 1985. Steamship Company, San Francisco, California. Hong Kong Trade Development Council. 1985. Los Angeles, California. - 59 - APPENDIX III Charcoal Manufacturing and Costs 1769/495 ee | ee CHARCOAL MANUFACTURING AND COSTS Charcoal is a high carbon material produced by heating any organic material in a low oxygen atmosphere. While it is possible to produce charcoal from nearly any organic raw material, this discussion will consider only wood. When wood is heated, a number of things occur. At temperatures of 100-120°C, loss of water occurs. Moisture content of green wood is usually in the range of 34-75%. This moisture must be substantially removed before the wood can be heated much above 100°C. At temperatures over 270°C, volatiles are driven off and carbonization commences. in general, lower temperatures yield a charcoal with a low percentage of carbon and a higher percentage of volatiles, while higher temperature yield a higher carbon percentage with less volatiles but more ash. Most charcoaling is done in the range of 400-800°C, yielding around 25 percent on a dry basis with a carbon content around 70 percent. The volatiles contain several valuable components. Charcoal used to be produced as a by-product of these chemicals' extraction, which include acetic acid, methanol, acetone, creosotes, and phenols. In the 1930's it became more economical to produce these chemicals from petroleum or coal and the industry died out, with the last hardwood distillation plant closing in 1969. 1769/495 - 61 - In the 1950's demand for charcoal for restaurant and recreational cooking grew, and plants were established for charcoal production. The briquetting process was developed as an answer to the problem of crumbling of the lump charcoal during shipment and in order to use the fines developed in manufacture and handling of charcoal. In Alaska, the earliest known charcoal production was in earthen pits on the flanks of Mt. Verstovia near Sitka. This charcoal was used in iron working by the Russian colonists at Sitka. Both this method of produc- tion and this use of charcoal were predominant prior to the advent of the wood distillation industry. Substantial quantities of charcoal, however, were used in the manufacture of gunpowder. Today the majority of charcoal produced in the U.S. is used in briquets. Substantial amounts are burned in lump form, used for filtration, or used in industrial processes, principally metallurgical. CHARCOAL MANUFACTURE While charcoal manufacture in earth pits is still possible, it is not economically feasible due to the large amount of hand labor involved in digging, loading, and covering the pit. The most prevalent form of manufacturing facility is the kiln. A charcoal kiln is essentially a large chamber into which the raw material is loaded and set on fire. The operator controls the admission 1769/495 62 = of air until he considers that the charring is complete. He then seals the chamber and lets the contents cool until they can be safely removed. Kilns can be of different materials and sizes. The brick beehive kiln was very common in early days. These have been almost entirely sup- planted in the U.S. by what is oer as the Missouri kiln, although a steel pipe-arch kiln manufactured by Armco-Robson is widely used in South Africa. The Missouri kiln is typically a rectangle of about 22 X 32 feet with a 12 foot ceiling capable of holding about 50 cords of wood. It is usually of cast concrete, although steel kilns have been constructed, and a kiln with cast floor and 4 foot side walls with steel roof and walls is also fairly popular. Steel has an advantage in that the kiln cools faster, but it is also subject to warping and deformation at operating temperatures. The cast concrete kiln would appear to have the most utility for Alaska. These typically contain about 100 cubic yards of concrete and about 2 tons of reinforcing steel. Today's cost in Missouri is about $15,000. Today's cost in Alaska in quantity would be about 1/3 more, or about $20,000. Charcoal is also widely produced in furnaces or retorts. For purposes of this study, a furnace is defined as a device which burns part of the charge in order to carbonize the remainder, and from which the by product -- heat -- is capable of being recovered. A retort is defined as a container in which heat is applied from an external source. Both 1769/495 - 63 - furnaces and retorts typically burn the volatiles produced in the charring process to provide the bulk of the heat necessary for the process. Retorts remove them before they are burned. This provides the retort operator with the options of condensing some or all of the gases in order to recover the chemicals, or of burning some or all of them.. Both furnace and retort operation have a very valuable by-product, heat energy, which can be used in a variety of ways. Drying incoming wood to increase the furnace efficiency, providing heat for an adjoining briquet dryer, or making steam which can be used to generate electricity and heat buildings are examples of waste heat use. Both retorts and furnaces require a small, uniform size of raw material in order to operate efficiently. In the case of wood as a raw material, this means blocks, chips or sawdust. A good deal of experimentation is going on in charcoal production such as work with fluid-bed furnaces and air entrainment techniques. In the U.S., the only furnace in widespread use is the Herreschoff multi-hearth furnace. This is a continuous feed vertical retort charac- terized by high production rates and carrying an estimated $2.5 -3.0 million price tag. No U.S. company currently manufactures. these fur- naces. At least two individuals are available who could custom design a multi-hearth furnace. Used furnaces may also be available. Universal Energy International of Little Rock, Arkansas, installed a horizontal rotating retort at Humphrey Charcoal Co., Brookville, Penn- sylvania, in 1978. It has operated successfully since with no major 1769/495 - 64 - problems. It's capacity is about 2,000 tons per year. Replacement cost is estimated by the owner to be about $500,000 (see Attachment 1). Several foreign firms manufacture kilns and/or retorts for export, primarily to developing countries. Among these is Atochem of Paris, a part of the ELF Aquitane group. They manufacture a vertical retort with capacities of 5-15,000 metric tons per year. The price ranges from 8 to 30 million French francs, ($933,000 to $3.5 million in August, 1985; see Attachment 2). Lambiotte et Cie., S.A., a Belgian firm, manufactures a vertical retort in 3 sizes: 2, 4, or 6,000 metric tons per year (see Attachment 3). Gaylard and Associates of Randburg, South Africa, offer a vertical retort producing 1,000 metric tons per year for $60-70,000, and a 4,000 ton per year unit for $130-140,000. MANUFACTURING PROCESSES A complete plant consists of a means of producing charcoal plus equip- ment to process it for end use. If this end use is burning in lump form, then the plant needs equipment for screening and bagging the charcoal, and shipping the bagged product. Palletizing and shrink wrapping the bags is the most widely used method of shipping. 1769/495 - 65 - For industrial and filter charcoal, the manufacturing process consists of grinding and screening to achieve a pre-determined particle size. It is then bagged and shipped using the same type of equipment mentioned above. Activated charcoal is used for filtering. Very little information is available on the market or the manufacturing process, other than the fact that it is made by treating charcoal with steam. Charcoal briquets are produced by mixing ground charcoal with water, a binder, and (usually) an additive and running this mixture through a double-face press. The resulting briquets are then oven dried, bagged and shipped. Quick starting briquets are additionally treated with an flammable mixture prior to bagging. Binder is necessary in order to make the briquet keep its form when dried. Cornstarch is the most commonly used binder. It costs about 6 times as much as charcoal so is used sparingly - ordinarily about 5-10 percent by weight. Sodium nitrate is a common additive used to promote burning. When used, it will comprise about 5 percent of the briquet. Coal or petroleum solids are also common additives used to improve the profit margin. They cost less than half as much as charcoal and are added at a rate of about 25 percent. A fairly recent innovation is the addition of sawdust or chips, most frequently mesquite, to improve the smokiness and taste. SITE CONSIDERATIONS 1769/495 - 66 - Several factors influence the choice of plant location. Because the ratio of raw material to product is fairly high - 8 or 10 to one - the most economically efficient location is in close proximity to the raw material supply. Transportation availability is also an important consideration. A highway is essential, access to rail transport is desirable. Substantial amounts of electric power are needed at a briquetting facility to power the various machines. If the facility includes a furnace, the requirements may be satisfied almost completely from co-generation. A water supply is also necessary for mixing the ingredients as well as for firefighting. Land costs are an important consideration. Public lands are generally available at very reasonable rates (especially Matanuska-Susitna Borough lands), and land is also generally available for purchase. Finally, manpower is necessary to operate the plant. If a center of population is not nearby, then costs are increased by having to provide housing and transportation. PLAN OF ANALYSIS In order to cover the largest range of options suited to Alaskan con- ditions, two scenarios will be considered - manufacture of briquets and manufacture of lump charcoal. SCENARIO 1: BRIQUETTED CHARCOAL In order to estimate production costs and potential for profit, it is 1769/495 - 67 - necessary to make several assumptions relating to plant size, equipment, and location. Assumptions There are two determinants here - raw material and markets. If both were available in unlimited quantities, then the largest possible plant is the most economically efficient. The cost of the briquetting plant, for instance, ranges from $227 per ton of installed capacity for a 10,000 ton per year plant down to $147 per ton of installed capacity for a 30,000 ton per year plant (attachment 5). For the purpose of determining feasibility, this report will first assume a 36,000 ton per year plant. Production costs of a 10,000 ton per year plant will be derived from the data assembled on the larger plant. Product The charcoal will be sold in briquet form, principally to the domestic market. The briquets will be 95 percent pure hardwood charcoal. The remaining 5 percent will be binder -- locally produced barley flour. Charcoal Source In most other U.S. locations, the charcoal manufacturer sells charcoal to the briquetter. While it is theoretically possible that such a pattern could become established in Alaska, high labor costs will most 1769/495 - 68 - likely preclude it. Kiln operators in Missouri pay about $15 per cord for 4 foot long wood stacked in the kiln. Their employees are paid minimum wage. This enables them to make a profit selling charcoal at about $100 per ton. It would be impossible for Alaska to compete at that level. That leaves only furnace production, which has the added advantage of co-generation potential. Because of its proven dependabil- ity in high production use, the Herreschoff furnace is assumed to be the charcoal production source. Site Raw materials sufficient for the project are available both in the Railbelt area of the state as well as in southeast Alaska. Because of the better transportation and marketing systems in the Railbelt, a location on Borough land in the vicinity of Willow will be assumed. An existing lease of 568 acres of Borough land for explosive storage at $10,000 per year, indicates that this should be the approximate lease price of the selected site. The possibility of locating a plant in southeast Alaska to use waste from a logging/manufacturing operation should not be discarded. Co-Generation The Matanuska Electric Association has not yet established purchase rates for co-generated power, but it will probably be from 1-3 cents per kwh on a non-firm basis. A 30,000 ton per year plant produces about 34 1769/495 - 69 - tons of charcoal per hour. Wood releases about 25,000,000 BTU's when converted to a ton of charcoal. About half of this is required to turn the briquet dryer and the remainder is available for other uses. If 23 million BTU's per ton were used for area heating or lost, that would still leave 35,000,000 BTU's per hour available for co-generation. Ifa unit with a generating efficiency of 25 percent were installed, it would yield 2500 kilowatts per hour or $600-1800 per day delivered to MEA. It might be more profitable to use the power on site to avoid purchase of large blocks of power. Because of the uncertainties involved, it will be assumed that there will be no co-generation. EXAMPLE 1 Briquet Plant - 30,000 Tons per Year This and following sections will estimate the total cost of char- coal production by first estimating capital costs, then operating costs. Operating costs will be subdivided into overhead and vari- able costs. Capital Costs Following are estimated capital costs for a 30,000 ton per year plant in the Willow area. 1769/495 - 70 - Site Development This includes access and utilities but does not include a rail spur, because Willow has a large "team siding", which can be used for loading and unloading at no charge to the shipper. Cost estimates are from various engineers and contractors working in the Willow area. Electrical service costs are Matanuska Electric Association estimates. Access Road $ 40,000 for 1/2 mile Site Preparation 150,000 - includes clearing, grubbing, and filling Utilities Electrical 225 ,000 Water 50,000 Total $465 ,000 1769/495 -71- Structures Buildings will be constructed of steel on a concrete slab over a gravel pad. Briquet storage is sized to hold two-thirds of annual production. Building costs are based on per square foot costs supplied by HCI Steel Products of Wasilla and footage requirements in Attachment 5. Office Building at $65 per sq. ft. $156,000 Furnace Building at $30 per sq. ft. 150,000 Charcoal Storage at $15 per sq. ft. 180,000 Briquet plant at $30 per sq. ft. 210,000 Packaging plant at $30 per sq. ft. 192,000 Briquet storage at $12 per sq. ft. 1,575,000 Total $2,463,000 1769/495 - 72 - Machinery and Equipment Furnace cost is based on discussions with Chavond-Barry Engineering Corporation of New Jersey. The remaining costs were provided by Aeroglide Corporation of North Carolina (See Attachment 6). Furnace, installed $3,500 ,000 Briquet and packaging plant 1,278 ,780 Briquet plant installation 420 ,635 Automotive equip., including fire truck 225 ,000 Shop equipment and accessories 175 ,000 Office Equipment 60,000 Spare parts 50,000 Total $5,709,415 Total capital costs (rounded) are $8,637,000, of which $5,709,000 is ten-year property and $2,928,000 is 20-year property. Operating Costs This includes total overhead costs, including financing, and variable costs, i.e., those costs which vary with the quantity of the product. 1769/495 - 73 - Overhead Costs Manager, Sales Manager, Production Manager, Office assistants 150 ,000 Building depreciation, 20 years 146 ,400 Equipment depreciation, 10 years 570 ,900 Taxes and insurance 225 ,000 Interest: Capital at 12% 1,036 ,440 Operating at 15% 1,100,000 Contractual: Accounting, legal, etc. 45 ,000 Maintenance and repairs 130,000 Land lease 10,000 Total including 10% contingency 3,695 ,000 Variable Costs This analysis is based on the assumption that raw material in the form of wood chips will cost $22 per green ton delivered at the plant. Binder will account for 5 percent of the product volume; 95 percent of 30,000 tons means 28,500 tons of charcoal. Each ton of charcoal requires about 8 tons of green wood chips, or 228,000 tons at $22/ton for a total of $5,016,000 per year. Binder is assumed to be locally ground reject barley, currently available at $90 per ton, plus milling and transport estimated at $60 per ton for a total of $150 per ton (per Pam Rule, a barley farmer from Delta 1769/495 = 74 Junction). This comes to total of $225,000 per year. Other operating costs are from Attachment 5, adjusted by the author to reflect Alaska costs. Wood chips 5,016 ,000 Binder 225 ,000 Packaging materials 941 ,500 Electricity 160,000 Labor, at $15 per hour 1,020 ,000 Marketing 50,000 Incentive Program 150,000 Dues, gifts, misc. 30,000 Total Variable Costs 7,592 ,500 Total operating costs are $11,287,500 per year, or $376 per ton. This would amount to $1.88 per ten pound sack exclusive of trans- portation. EXAMPLE 2 Briquet Plant - 10,000 Tons per Year Attachment 5 is a series of cost estimates for various sized plants prepared by Aeroglide Corporation, based on Lower 48 costs. Assum- ing that the cost ratio in Attachment 5 is valid, applying that ratio to the costs estimated above would indicate that a 10,000 ton 1769/495 - 75 - per year briquet plant would produce a ten pound sack of charcoal for $2.90. SCENARIO 2 - LUMP CHARCOAL If a market for lump and ground charcoal is available, a screening, grinding and packaging plant could be built at a central location with charcoal from kilns located in wooded areas hauled there for processing. Assumptions Plant Size According to a recent mail-in survey, (see Attachment 7), the Alaska retail market for briquets is about 1,500 tons per year. Interviews with retailers indicate sales of 500-700 tons per year. A realistic estimate of the market is about 1,000 tons per year. The plant should be sized for more efficient production however. The costs below are estimated for producing 1,000 tons of Jump charcoal per year in a plant capable of producing 10,000 tons per year. Product One product would be lump charcoal suitable for heating or cooking. 1769/495 - 76 - It would be screened to a uniform minimum size to increase consumer acceptance. The other product would be charcoal fines, sized to market demand for industrial or agricultural applications. Charcoal Source Six Missouri-type kiins could provide about 1,000 tons of charcoal per year. They would be located adjacent to timber supplies so that the location - for public timber sales - could be included in the actual sale. Site About one-quarter of the site selected near Willow would be utilized for the central processing plant. Note Costs for the plant and product are derived from estimated costs for the 30,000 ton briquet plant unless otherwise stated. EXAMPLE 1 Lump Charcoal - 1,000 Tons per Year 1769/495 - 77 - Capital Costs Following are the estimated capital costs for a 10,000 ton per year plant in the Willow area. Site Development Access Road $ 30,000 Site preparation 60 ,000 Utilities Electricity 150,000 Water supply 25 ,000 Total $265 ,000 Structures Office building at $65/sq ft 32,500 Charcoal storage at $15/sq ft 12,000 Screening and grinding at $30/sq ft 24 ,000 Package plant at $30/sq ft 30,000 Storage at $12/sq ft 60 ,000 Total 158 ,500 1769/495 - 78 - Machinery and Equipment 6 Kilns at $20,000 $120 ,000 Screens, grinder, etc. 46 ,000 Packaging plant 200 ,000 Automotive equipment 100 ,000 Office Equipment 2,000 Shop equipment and parts 5 ,000 Total $473 ,000 Total capital costs are $896,500 of which $473,000 is ten year property and $423,500 is 20 year property. Operating Costs With tree length firewood available for $55-70 per cord delivered (price depending on delivery distance), assume that 4 foot lengths of cord wood could be placed in the kiln for $75 per cord with a short haul. 1769/495 - 79 - 1769/495 Overhead Costs Manager and office help Building operation Equipment depreciation Taxes and insurance Interest Capital at 12% Operating at 15% Contractual: Accounting, legal, etc. Maintenance and repairs Land lease Total including 10% contingency (rounded) Variable Costs Wood $ 275,000 Packaging materials 30 ,000 Electricity 6,000 Labor 37 ,500 Total $348 ,500 - 80 - $ 60,000 21,000 47 ,300 30,000 107 ,500 50,000 20 ,000 30,000 2,000 $404 ,500 Total operating costs are $753,000 for 1,000 tons of product per year, $753 per ton or $3.52 per ten pound bag. EXAMPLE 2 Lump Charcoal: 10,000 Tons per Year The output of the plant for which costs are estimated above could be expanded to 10,000 ton per year by increasing the number of kilns, the storage capacity, and the variable costs by a factor of ten. The would lower the cost to about $410 per ton or $2.05 per ten pound sack. 1769/495 - 81 - UNIVERSAL ENERGY INTERNATIONAL ROTARY FURNACE PYROLYSIS COMBUSTION SYSTEMS SPECIFICATIONS SHEET ROTARY FURNACE PYROLYSIS/COMBUSTION SYSTEM ENERGY RECOVERY STACK we) SECONDARY COMBUSTION CHAMBER . STEEL TIRE STEEL TIRE STATIONARY HEAD oon Coenen PYROLYSIS REACTOR 000) ig COMBUSTION AIR FAN SEAL \ SEAL J ] \ 5 \ ; Z i / \ 1 / \ 4 COMBUSTION AIR FAN LJ ; SPROCKET + CHAR/ASH CONVEYOR FUEL | a LA | / (WATER COOLED) INVEYOR. 4 CONVEYO! el. f VARI-SPEED MOTOR DRIVE = / > . \ 1 / my TRUNNION ASS'Y ACCESS DOOR a = een STATIONARY HEAD MAIN FRAME ASS'Y. ASS'Y. ROTARY FURNACE PYROLYSIS/COMBUSTION operated from the master control panel. SYSTEMcomplete with undercarriage, trunnions, gq. Stationary front head is complete with flanged fuel steel tires, variable speed drive unit, rotary furnace inlet, observation ports and high temperature gas shell, air seals, stationary front and rear heads, outlet. ignition burner, access door, observation ports, ©. Stationary rear head is complete with flanged outlet, combustion air system, fuel inlet and char/ash flanged combustion air inlet and ignition burner. outlet, secondary combustion chamber, energy Front and rear heads are equipped with seals. recovery stack, refractory materials and g. All inlets and outlets are sealed to insure controlled = ; . = combustion within the system. installation, and integrated electrical control h. Ignition burner is installed in rear head for the safe system. preheating and ignition of combustion. Pyrolysis and Gas Handling Equipment: i. Drum diameter and length is engineered for the a. Patented internal air distribution system includes specific application. distribution tubes forcontrolofthecombustioninthe j. Rotary drumissupported by two forged and machined pyrolysis reactor. steel tires rotating on four heavy duty adjustable b. Patented secondary combustion chamber has high machined trunnion rollers mounted in heavy duty velocity forced air distribution system for complete bearings. combustion of the gases. k. Drum rotation is powered by a variable speed drive c. Control of the combustion is handled by two fans: one unit with speed control operated from the master high volume fan for operation of the pyrolysis reactor; control panel. and one high velocity fan for operation of secondary _!. Drumrotationis driven with an adjustable heavy duty combustion chamber, both with modulating dampers chain, drive sprocket, andidlersprocket arrangement. m. Rotary drum hasan RPM range of2to8RPM operated from the master control panel. n. System includes rotary drum incline adjustment from 1% to 3% degrees. o. Rotary drum interior is prepared to accept refractory lining at time of installation. This lining is 6 inch refractory brick with castable rings at each end. All refractory and castable material for drum, secondary “combustion burner, and draft stack is furnished and installed. p. Natural draft stack is of sufficient height and diameter to create draft to exhaust gases from furnace. Stack has flanged exit port to vent hot gases to energy recovery system per owners’ specifications. q. System is mounted on a heavy structural steel skid, reinforced and braced. r. Entire system is chemically cleaned. Primeis applied to 1% mils thick. One finish coat of acrylic enamel is applied to 1% mils thick. Fuel and Carbon Handling Equipment: a. Fuel Conveyor is equipped with a reversible variable speed drive operated from the master control panel. b. Removal conveyor is motor driven with a speed reducer, water cooled and operated from the master control panel. c. One rotary vaive is installed to eliminate air leakage. Master Electrical Control System: a. Electrical controls provide for semi-automatic operation of the system. b. Free standing electrical control panel is included. c. Circuit breakers and motor starters for all motors are furnished. d. Chart recorder for continuous monitoring of furnace operation is included in the control panel. e. Control circuits for proper operation of system are wired internally. f. Electrical control panel activates remote operation of The above system is covered under U.S. Patents 3,901, 766; 4,037,543; 4,273,619: and patents in Japan, Canada, France, Germany, and Great Britain. All information contained herein is general in nature and is not intended for specific application purposes. Universal Energy International reserves the right to make changes in specifications shown herein or add improvements at any time without notice or obligation. Litho U.S.A. UE! RF930.5M 2/82 ©1982 UE! air input, fuel conveyor, and char/ash conveyor. g. Temperature indicators are provided with six thermo- couples. h. Drum rotation control is provided. Engineering Services: a. All design, mechanical and electrical engineering services for the proper installation of the equipment are furnished. Owner to Specify the Following at Time of Purchase: a. Electrical service either 240 or 480 volts. b. Type of fuel forignition burner (i.e. fuel oil, natural gas. or propane). c. Soil bearings and survey of the site area to prepare foundation drawings. Owner Responsibilities: a. All permits, licenses, taxes, and insurance coverage that may be required by any governmental or institutional agency. b. Allsite preparations (i.e. excavations, filldirt, footings, foundations, electrical and water connections, etc.) according to certified drawings. c. Erection and assembly of the unit including support equipment. d. Any building or structures. Warranty: a. Material and workmanship are warranted for one year from time of shipment except for those purchased items which carry the original manufacturer's warranty. Delivery: a. Universal Energy International provides installation supervision after the furnace is delivered on site. ROTARY FURNACE PYROLYSIS COMBUSTION SYSTEMS 400 OLD ORCHARD COURT DANVILLE. CA 94526 (415) 820-3924 MOUNTAIN ROUTE CALICO ROCK. ARK 72519 501) 297-3967 PO BOX 32497 OKLAHOMA CITY OK 73123 ATOCHEM = AXTO groupe elf aquitaine Theodore G. SMITH > Courrier a adresser: P.0.Box 1026 ATOCHEM Willow Capeense B Alaska 99688 92091 Paris La Défense USA (France) Tél. : (1) 762.80.80 Télex : ATO 611922 F Attention Mr Theodore G. SMITH V. et PARIS LA DEFENSE, le 18 June 1985 N.réef, DI - PJ/ND N° 85,156 Tél. : Dear Sir, Referring to your kind letter of May 21, please do find hereattached brochure concerning CARBOPREM technology we are licensing for our subsidiary Société des Usines Lambiotte (USL). We are generally proposing units based on continuous carbonisation retorts producing 5 000 mt/yr or 15 000 mt/yr which can be considered as our “standard sizes" even if we are prepared to consider any intermediate or larger capacity as well as several combination for drying wood and valorising pyroiigneous effluents. In the lecture I gave in Pretoria, I mentionned the optimum size of wood particles usable in our technology (5 to 6 cm thick, c.a. 10 cm wide, 10 to 30 cm long). Some proportion of finer chips is acceptable -but increase percentage of fine charcoal-, but an excess of them -more than 10 % in weight- would lead to difficulties in gases circulation inside the retort, one of the key of the technology. As an order of magnitude, a 5 000 mt/yr unit composed of a retort and simplifie pyroligneous furnace would cost 8 000 000 FF in France, including licence and engineering fee, while a 15 000 mt/yr unit composed of a choping machine, a dryer, a retort and an energy recovery system on pyroligneous circuit would cos c.a. 30 000 000 FF. For the 5 000 mt/yr unit mentionned, we suppose wood had been dryed naturally by long storage down to 25 % humidity and chop by any system including bandsaw while the 15 000 mt/yr unit is very much automatized and requiring far less human forces, then of lower manufacturing cost of charcoal. We are operating ourselves a 20 000 mt/yr unit at Premery, near Nevers in France, using two 10 000 mt/yr retorts, large vertical dryers and very sophisticated pyroligneous treatment systems. Smaller plants - 3 500 mt/yr- on the same technology are running in Burgundy, in France, in England and in Spain and a similar unit than ours, but without recovery of energy and dryer is installed in Australia. Should you are interested, I can organize a visit of our Premery plant for you, at a mutually convenient period. Wishing you a good receipt of these first information and thanking you again for your interest in the CARBOPREM process, I remain, Yours faithfully ———— ~ — P. JENTET Encl. 1 J .$ J —, AYA — vi a \ tf — — ev \_\ eee DN Via ia er y) A, a \ ae vane rt ON we seinem neo Gn eae net cain AN nat The CARBOPREM ® process is used in our plant at Prémery (Niévre) in France which includes a unit carbonizing 20,000 t/year of wood charcoal, and also avery comprehensive installation for the recovery and treating of pyroligneous vapors. Its unique experience in the operation of a large scale plant has enabled the _, Société des Usines Lambiotte to improve its processes constantly, while simplifying their operation and extending their possibilities. Arange of continuous _- plants capable of producing 2,000 t to 30,000 t and even 100,000 t of wood charcoal per year can thus be made available. The CARBOPREM ® process has converted the carbonization of wood cellulose materials from a traditional art to an efficient, energy-saving, non- polluting industry based on modern technology. ; This brochure describes the plant at Prémery, chosen as an example of 10,000 to 30,000 t/year wood charcoal units with recovery of chemical products. Drying of wood The wood arriving at Prémery usually contains about 40% of water calculated on the total dry matter and water. After having been reduced to the recommended size (regular cross sections of about 80 cm? and maximum length of 30 cm), the excess moisture is eliminated, as it would otherwise handicap the treatment of the pyroligneous vapors. The moisture content is therefore reduced from 40 to 15% in a vertical cylindrical furnace fed from its top by regular loads of green wood and discharged from its base from a turning hearth. A wood level gauge inside the dryer controls the feed start up. The drying operation is completely automatic. The heat required is supplied by the combustion of a part of the effluent gas recovered during carbonization. No heat is supplied for this operation from outside. Carbonization After drying, the wood is conveyed automatically to the upper part of the carbonization furnace. Carbonization takes place continuously in a vertical furnace in which three parts can be distinguished: e An upper feed with a chamber preventing the inflow of air and outflow of gases. e A middle part where the actual carbonization takes place. In this part are the fume injection and extraction devices for the carbonization process. These devices have been designed specially to ensure that there is a strong circulation of gases and a good flow of wood charcoal, while avoiding the formation of localized hot points. e A lower part for cooling and extracting the charcoal comprising in particular an automatic wood charcoal discharge device. The temperature of the wood charcoal when leaving the furnace is about 30 °C, which avoids spontaneous ignition. The additional heat required for the carbonization process is provided here also by the combustion of a part of the pyroligneous effluents so that from the exterior is not necessary. The charcoal in the lower part of the furnace is cooled by the circulation of gases taken from the furnace, cooled vigorously and introduced into the lower part. Oe of pyroligneous vapors At Prémery the vapors extracted from the upper part of . the carbonization furnace are condensed. In this way the pyroligneous liquid part is separated from a combustible gas. ¢ The gases are distributed in three directions — one part feeds the drying unit, — one part provides the additional heat required in the carbonization zone of the furnace, — the rest is available for the production of steam. e The condensates, or “pyroligneous juices”, are subjected at Prémery to a series of treatments for recovery of several valuable chemical products (acetic acid, methanol, methyl acetate, food flavors...). As previously stated, the plant at Prémery is described Only as an example and schemes integrating carbonization units in various industrial complexes and Jsseciica'y adapted to the technical and economic requirements of customers are described later. ~ The experience of the Usines Lambiotte combined with that of its parent company PCUK enables us to offer a solution best suited to each particular economic and ecological case. The CARBOPREM ® process itself will now be examined more quantitatively. Assuming that green wood containing 33% moisture* and having a heating value of 4,500 thermies* (related to one ton of dry matter), is available, then, using the CARBOPREM ® process, 1,500 kg of green wood, containing therefore 1,000 kg of dry matter, will give: * 320 to 350 kg of wood charcoal of excellent quality.** ¢ 1,150 to 1,180 kg of steam and pyroligneous vapors. * Natural in some climates, this moisture content can be obtained after aerated storing which thus saves the large investment for a dryer. at least for 2,000 to 5,000 t/year units. It will be seen /ater that for larger capacities, the wood must not contain more than 25% moisture, if it is desired to avoid using a dryer before carbonization. ** Minimum fixed carbon: > 80% Ash content: < 5% Volatile matter: < 10% _ Water: < 5% Two cases are possible: ¢ Either economic studies — or the availability of sawmill waste, branches, etc. — have led to consideration being given to building a plant producing 2,000 to 5,000 t/year of wood charcoal (using therefore respectively 8,600 to 9,400 or 21,400 and 23,500 t/year of the wood concerned). In that case we would suggest a single furnace developed recently, in which the effluent gases with a calorific value of between 2,200 and 2,600 thermies per ton are burned entirely. The heat obtained would serve to dry the green wood in the upper part of the furnace as well as carbonize it in the middle part. In addition, respectively 19,000 and 47,500 tons per year of gas at 850 °C in the 2,000 and 5,000 t/year furnaces are recovered, which is equivalent to 525 and 1,315 tons per year of heavy fuel oil No. 2. e In the case where the availability of the raw material is greater and the needs of wood charcoal and energy are also creater, we would offer one of our plants capable of producing 10,000, 15,000 tons per year of wood charcoal, and even greater quantities by means of modular units which can be grouped and thus allow judicious solutions to be obtained for the recovery of energy and chemical products. In such plants the moisture content of the wood is reduced to about 15% in automatic dryers (see description of our installation at Premery), before being introduced into furnaces. * One thermie equals 1,000 kilocajlories. ke effluent gases from the carbonization furnace can be: * either burned (their calorific value is between 3,560 and 4,250 thermies per ton which enables an appreciable amount of energy to be recovered; * or condensed. In that case, most of the uncondensable part is used for the internal needs of the unit, as was seen in the description of the Prémery plant, and the condensed part is treated more or less completely, according to the local economic opportunities. It should _~ be noted that if severai carbonization units are built in different places where green wood is more available, the condensates from these units can be combined and treated in one place in order to make the considerable investment for a large plant profitable’. To do this a central treatment location should be chosen where energy is cheapest because the chemical treatments require a substantial consumption of steam. In certain cases where the moisture in the wood can be reduced naturally to 25% or less. a simpler plant can be proposed, consisting only of one. higher carbonization > unit. The industrial investment is less but the calorific value of the pyroligneous vapors recovered is less than in the preceding case and one can only burn these gases, as in the case of the smallest units of 2,000 and 5,000 t/year capacity described above. * From the pyroligneous effluents of a 15,000 t/year unit can be recovered annually about: — 550 t of methanol — 2.600 t acetic acid. crystallizable and technical grade — 5,600 t of combustible tars. Utilization 1) Wood charcoal The uses of wood charcoal are still the same as before: as a reducing agent in metallurgy and as a fuel. In addition it is also used for the production of activated carbon. ' As regards household use, the customer prefers fairly long pieces of charcoal which ignite easily. To the - metallurgist however the most important points are resistance to attrition, low mineral ash content and a well-defined carbon content, usually as high as possible. The CARBOPREM ® process meets all these requirements and gives high yields. In France: * “Cadet” is the name given to the grade of wood charcoal containing the longest pieces of charcoal, longer than 20 mm. This is the most popular grade for household and restaurant needs. ¢ “Braisette” is the name given to the grade containing 10 to 20 mm long pieces. This is the grade commonly used in industry. e And lastly, “Poussier” which consists of the smallest pieces. From wood of the size indicated in the paragraph “drying of wood” above, that is, with a cross section of about 80 cm? and a length between 10 and 30 cm, the wood charcoal obtained by the CARBOPREM ® process contains approximately the following proportions of these three grades: 57 to 60% of “Cadet”, 28 to 30% of “Braisette” and 12 to 15% of “Poussier”. It should be noted that it is quite possible to burn « Poussier » and so generate additional energy. In large capacity plants, or after grouping the production of « Poussier » of several units, this material can also be upgrated by compacting it, generally with starch. This gives briquettes or small logs which are easily marketed as domestic fuel. 2) Chemical products The chemical products possibly produced from pyroligneous vapors find many uses. For example, for producing: e Acetic acid: food use, raw material for acetate solvents (ethyl, methyl, etc.), vinyl acetate... ¢ Methanol: a basic product in synthetic chemistry for manufacturing solvents, formaidehyde, urea-formaldehyde resins and phenol-formaldehyde resins, and chloromethanes... Flavors, butter flavor for fatty vegetable matter, fruit... _. INDUSTRIES DE LA CARBONISATION DU BOIS ET CONNEXES AVENUE BRUGMANN, 290 — B 1180 BRUXELLES TEL. (02) 343.01.46 — TELEX 61588 ELLECO B - Département INGENIERIE a 7 Box 1026 WILLOW - ALASKA 99688 U.S.A. L Votre Réf. Notre Réf. BH/AD Dae June 4, 1985. Dear Sir, We thank you for your kind enquiry of May 21, 1985 concerning the production of charcoal in Alaska. We have the pleasure to send you enclosed our general pamphlet together with the description of our CISR 2000, 4000 and 6000. We remain at your disposal for any further information you might require and are ready to work out an indica- tive quotation based on the elements you will have gathered from your study. Yours faithfully, LAMBIOTTE e Cit sa. OTe i DESCRIPTION OF THE AUTOMATIC LAMBIOTTE C.LS.R. CARRONIZATION OVEN WITH A CAPACITY OF 6000 TONS OF CHARCOAL PER YEAR h CONT. K 0! S PROCESS 1) INTRODUCTION TO THE LAMBIOTTE PROCESS The automatic continuous LAMBIOTTE carbonization oven is the heart of the instaligtion which includes in the first place the preparation of the wood, the oven itself, and finally the charcoal storage and handling equipment. The LAMBIOTTE process is distinguished by the fact that only the pyroli- gneous vapours are burnt, exclusive of the wood and the charcoal. This gives 2 yield 2 to S times higher than with traditional processes. The automatic regulation of the plant allows for a drastic reduction of the workforce, compared to traditional production methods. Furthermore, the work is salubrious, easy and simple. A comearison of the LAMBIOTTE process against other methods can be summarized in following table : Yield Labour fixed Carbon in charcoal/ Man x day / ton wood ton of charcoal earth kiln 60 - 130 kg 20 66 % metallic kiln 130 - 170 kg 8 70 % LAMBIOTTE CISR 170 - 250 kg 0,64 82- 90% The cooling water of the gascooling circuit is recycled and the surplus pyroligneous vapours are burnt in a flare-stack to ensure the protection of the environment. These vapours can also be reclaimed to feed a boiler. The LAMBIOTTE process, the charcoal is cooled by a cooled gas circulation.The charcoal is brought out at ambient temperature, thus minimizing the risks of auto-ignition. The product is of superior quality, it han an mea ant mimites and nanciatanay with avery hiah carhon content LAMBIOTTE ea Csa. entirely heat insulated, thus svoiding the candensetion of ive liquide and ensuring 6 Jona life ta the installation 2) GENERA. SPECIFICATION OF THE INSTALLATION - fixed carbon: 62 ta 90% - moisture = UG) 4 & wood requirement : 24000 te 2 Ned power : 250 ta s00 kW = (2) yer consumption : 100ta 120 kW (2) 19 people (2) é life time > 15 years - Approximate net/gross weight: 100/120 tans - Approximate volume : 1200 m- UlJprowised the wood has 2 water content of 25 % calculated on the total sigh! ng the wood preparation and the charcoal handling equirnent ood preparation : 3 people sing of the plant :S people Gehereof 1 in each shift) al handling : 11 people 3) DESCRIPTION OF THE PROCESS & production of 15 to 21 tons/day can be expected, depending on the mois- ture of the wood. The dryer the wood, the higher the production. The oven ts designed for a continuous production, 24 hours a day, 7 days a week, with yearly 4 weeks maintenance . The continuous production requires shiftwork night and day. The wood preparation equipment and the charcoal storage are rated to have the work done in a8 hours day shift. The plant can be run with either deciduous or resinous wood. We recom- mend to use only one wond sort at the time. In the case bath deciduous and resingus wood has to be carbonised one should nat alternate the species more often than every two weeks. LAMBIOTTE ea Cle sa. C.LS.R. 6000 The water content of the wood msy varu fram 15 to 45 &% of the total weight. If the moisture is below 25 %, the surplus pyroligneous vapours cing ét the flare steck tip, can be ignited directly. he mcisture of the wood is higher then 25 %, the vapours can be burnt by ing a combustible (e.g. propane ). ecce Itt addir The conditioning of the wood is very consequential. The length of the Pieces sheuld not exceed 33 cm in order to avoid blacks in the aven. The cr 4 section of the wond pieces shauld be below 10 cm*, otherwise one might get uncharres billets Like for a'l wood industries, the moisture of the wood is an important factor if the meisture is 60 # of the ea weight (i.e. 37,5 % of the tatal weight, will be ef S tons. If however the moisture , = & Of “the a weight (i.e. 27 Zof the total weight) ane might expect @ caily production ranging sbout 7 tons. The camcosition of the charcoal does not depend only on the wood itself but algo on the carbonization temperature. The carbonization temperature has a direct effect on the volatile matters cantent, as shown in the table below : carbonizetion composition volatile matters ‘Yield on dry feed- temperature of charcoal % content stack c H 0 300°C re. 49 21,9 26,8 % 51,4% 400°C ite a2 Bit 22,3 3% 40,6 % S00°C 89,2 Sil Ath 98 & Sills Ash and moisture sre not taken into consideration in a.m. values. The LAMEIOTTE CISR oven has been designed to work at the temperature required to meet the fixed carbon content asked by the customer. The carbonizetion temperature can be easily adjusted and kept constant independently of the other parameters. This is one of the main advantages of the LAMBIOTTE process. As shown above, one can produce 514 kg of charcoal out of one ton of dry wood when operating at 300°C, or 310 kg when operating at 500°C. The fixed carbon content is then of + 73 % and + SO 2 respectively. The latter setting | is $ generelly adopted ee e of the first-rate charcoal it ~_ -- 3 bee abe atid at, tehant flema LAMBIOTTE «Cit sa. Se The last 10 % of volatile matters cennot be rernoved but by subsequent heat treatments. In small-scale production, e.g. by means of metallic kilns, the charcoal at the center of the kiln is farmed at a higher ternperature than the one closer to the cooler wsils. This charcoal will be of irregular quality and cornposition. It will contain more volatile matters that will flare during the combustion The LAME!IGTTE C.1LS.R. oven is heat-insuleted and crossed by intense hot ges streams, so that all the billets sre submitted to exactly the sare hest treatment and have the same volatile metter content. This ig sia a very important advantage. The nature of the wood determines the ash content of the charcoal. The ssh content cf dry charcoal varies according to the parts of the trees it cornes fram , 82 is shown in table below : pert of the tree ash content campasition of the ash { 2) of the charcoal KoQ Ps05 Cad Mao mature Darks 5 26 12 30 6 limbs 6 10 2 55) 6 oi deciduous trees 1,6 10 4 oe 5 of resinous trees 1,6 i S 60 a (Ivan Schwob, Paris 1980) The wood closer to the bark will produce 4 charcoal richer in ashes than the wood coming from the heart of the trunk. To sum uc, an average charcoal quality will contin 3 4 ashes in which Ca, K, P predominate, Si and Na coming in second and third position. The charcoal will also contain trace elements coming from the soil where the tree has crawn. The charcoal produced by a LAMBIOTTE CISR oven is an excellent raw material for the production of Calcium carbide. But it ic in the expanding Silicium industry that charcoal is used as reducing agent. Its low ash content, its composition and above all the absence af aluminium are appreciated quality factors for the production of ferro-alious. The mechsnical strength of the lumps, and their density are important factors LAMBIOTTE et Cle sa. avvaCANens C.1.S.P. 600 7a Ug w These fectors depend on the wood sort as shown in the following table < 47 wood charcos! density charcoal compression species friatility resigtance ratic Eucalyptus 0,5 ta 0,06 quite unfriable very goud robuste (Madagscar) Couls ecules O7o not very friable (Gabon) 0,76 fairly unfriatle 0,7 not very friable Aucumes 0,26 not very friale kleineraria (Gabon) Astoniurn 0,76 fairlu frieble fraximitoiium (J. Doat et G. Petroff, Peris 1975) According to Brazilian sources, it would be difficult to use charcoal in blast furnaces of more than 600 tons / dey end aver 19 m high. In the cease of the Australisn plant at Wundowie, presently idle, it is the softening of the iron ore, and not of the charcoal (from Eucalyptus marginata) that is the limiting factor. Eucalyptus marginata gives en excellent metallurgical charcoal with 1% ashes, 0,12 % Phosphorus ond 0,45 % Sulfur . The presence of fines and very coarse pieces is quite purposes. previously crushed) ta pass through 90 mm mesh. Fine charcoal, passing through 20 mm mesh, is eliminated. These charcoal fines core mostiy from the berk. The charcoal] hes hence to be screened (and, if necessary, very gaod acod very poor very poor undesirable for barbecue t++5n4 arr LAMBIOTTE e Cle sa. CAS.R. 6000 noes ~~ - If the rav: material contsine much bark, the percentage of fines con be es high 20%, otnerwise it will be of approximately 10%. The fines can be reclaimed bu pelletizing. The charcoal resulting from deciduous trees in Europe, have an sversoe apparent specific gravity of 250 Kg /m> and a heat value of 312350 kJ/kg. The charzoal produced from resinous trees has 4 lower apparent specific gravity soproxirnately 200 ko / m? The LAME OTTE CIS oven Goes nat only produce charcoal, but alsa pyrali- gneous vszours. The enerzetic balans can be summarized ss follows : the energy contained in the dry wood --> =61/2 charcoal --> 1/2 purcligneous vapours --> 1/4 i used for the carbonization process --> 1/4 is in surplus and can be dispased of. This last quarter of energy in the form of pyraligneous vepours 1s mined with the stez~ resulting from the drying of the wood and with the carmbustion gases of the pyrolignecus vapours used for the cartanization. The moizter the woad, the mare stearn and the less cornbustible vapours. = P.O. BOX 3388 Gaylard © Associates cc eS RANDBURG 2125 SS2 - o> - SOUTH AFRICA ENGINEERS AND EQUIPMENT SUPPLIERS TEL.: (011) 70342330- REG NO: CK 85/06036/23 793-6332 19 June, 1985 Theodore G. Smith Box 1026 Willow, Alaska 99688 UpiSre Ais Dear Mr. Smith, Thank you for your letter of May 21 in connection with our charcoal production technique. I apologise for the late reply occasioned by my adsence from the office. The current status of the development is that we are currently running trials on our first production unit designed for a product output of 1000 tonnes per year. This plant has been erected aon the premises of a client in Durban. First results look very promising and we should soon be in a position to offer the equipment on a fully commercial basis. With respect to your specific query regarding chips of paper birch, the technical feasibility would depend to a large extent on the size of the individual chips and their general shape (in particular the surface area/mass ratio). Our process is designed for particles requiring relatively low residence times and there is therefore a limit to the size that can be accepted. It would be of assistance if you could supply further details. With respect to cost, we can advise that a unit to produce 1000 tonnes per annum would cost in the region of US ¥ 60 000 - 70 O00 in South. Africa (excluding peripherals such as wood drying equipment, handling and storage equipment, structures and foundations). A 2000 tonne/annum unit would be in the region of US % 90 OOO - 100 OOD and a 4000 tonne/annum unit US ¥ 130 OOO - 140 OOO. These costs are indicative only at this point. Since you are obviously interested in charcoal production in general, may we advise that we have another development that is fully commercialised. This consists of a self-contained batch-operated retort requiring no utilities. It is designed to carbonise logs or chunks of wood and is delivered to the site in fully erected form. Our standard unit produces 2000 kg of charcoal in a 24 hour cycle and sells in this country for the equivalent of US ¥ 10 O00. Yield as a percentage of wood feed exceeds 30% as compared with normal charcoal kiln yields of 16-20%. We look forward to hearing from you again. Sincerely yours, rh ary Cle Meruvn a ard Aerociide | WORK SHEET pate 14 Sole 1965 aan wesc Eatin am Aicl lest PAGE OFZ [.33 tre Piz +e 4. cottl 10, e0¢e BOo,cos | ae, Coad ORT i Mexs [Yea Stes / Year tee | ye ine eee # 25, Coo A 40,900 4 Se Office ao /t* UT Choco cco le) C00 Droveoh StarayGloffr~ __40'000 Bb 0ee.___ YRO,C00. iquet Vlarte Pi2/f~ 43200 __ STb00 _ B4 ore as Rise 7 ie /Er AG Loo _ . 43260 Tb S00 one @7 12 (Fi 420 cee BAO’ ee |, 2L0'D00 ees TT ae eters APS eee! ere ee, a ceemenag) | | ceeemeneaccnenensianenndiieeeensmmmnmoas Yee t él 400 4 1315 G0 Ri aze 800 ns WRC _tG te _ “31 see _“17e.o8e cia we BL Rem Be fest 193255 ¥ (oot ne *) 278786 Phere “Raden 4 < Facer. 326 ie, || “387, 1 S46 $20, 63 5 Becessory & Shep rae TAT ie, ee 150, 200 ‘175 000 Carsten CottrR Deveis = 110 0135/0 165,000. aT Sin JE ele 7s 200 _ a Co _ _ ZO 000 eR | oe A 1 3ea, css A Tol, 456 #2054 4S “Shes 162. Ct “130,468 - | i496. 188 Li "205441 Tae Medimeny # (435120 #1872151 H226535¢ Grob Yeh — #2272 bo 3319531 WH 4384836 erociide | WORK SHEET pate 1G Wh, 1985 _ ay Pan d_ SUBJECT Fibs RpAshi Coste PAGE_Z_or_2= /.334PH B.67YPH 4.c07PY ; if L Ll oF 0°00 RO0,@00 30,oco Genxvell. rN eo 4+ 4owe * 40000 ¥ soceo 5 Minne _ 30 ove ____ 30.000. 35,000 Nerdvotin Vy BS 002 ZS 000 0,000 _ —Seerhors | <a _Z5 e020 ZS G00 Ore. ea eg. @ Wyss. BIT. TR 369 toS ITH. Der. ©. 10 yes 143/512 ABT2IS 226536 age peas Zw) esiaas eer neng gare Trchorest -12% Tnitiet Cap” 272,19. 398344 S26 1S0 _ = 12% Opec. (6 me) _ 60,000 oe 14-000 _ 168 coe ect lecat io olice ae i 000 35) Cooney 45,200 | Bcitrerance (3% Buel) 818° 94586 131545 Sets 10? ectemaraet 927,413 4 131 T40 A ‘1724 228 “ecco @4100 /tom_ _*te 00,000 _* Zoe coe # 3 coo, 000. Sets Ce '243'600 “4gt 200 730,800 313830 6th Goo 441,400 Te te poll pete ze = Nogeoc _ apeIey ZIG, coo 324.008, Watex (Hib) IS 606.1] ue, 200 160, 000 “Lake si hy. 410 eo -4463ee | 583 200 Adverbs, 25,000 40/000 56, Ovo Ro, £00 eld OCCOmmaa is 50, Coo Sees Assoc. a Mx 10,600. 20c00 30,002 chi poieon aor te 426515 ha, a46 968 Be 456340 Fel Gd he ae 4 os.99° Re _ Vaid. Qed, Sete y 242.62 ZZ -0+ 215.Z1 Peter ere eecerterett Te eaentice fT hmeemes Aeroglide’ | SALES GONTRACT AEROGLIDE CORPORATION | BOX AEROGLIDE | RALEIGH, NC 27626-9990 | AREA (919) 851-2000 | TELEX 579421 Mr. Ted Smith ae P. 0. Box 1026 Be LO 10 D P DATE PAGE TYPE MACHINERY 7/26/85 1 of 6 30400/Charcoal Bland JOB NO. ALES AREA SHIP VIA COLLECT | 996 XX ITEM Jovan. DESCRIPTION OF MACHINERY, SPECIFICATIONS AND/OR SERVICES SUBJECT TO ALL THE CONDITIONS PRINTED ON THE BACK OF THIS SHEET, AEROGLIDE CORPORAT SHALL SELL AND THE UNDERSIGNED SHALL BUY THE FOLLOWING: ‘ ani -~ Machinery suitable for manufacturing charcoal briquets at an output capacity of four (4) tons per hour. Plant capacity is based on receiving wood charcoal (below 150 F. and above 10 lbs/ft3 bulk density), using precooked corn starch as a binding agent and drying/cooling the briquets from 30% to 5% moisture. The machinery and services provided are described on Aeroglide Drawing No. PD18-785-02 Aeroglide Data Sheets (Section 30400, pages 1 through 7, dated 4-5-83) and as follows: 01 01 Model RB 88 Aeroglide Receiving Bin, 8'-0" x 8'-0" x 8'-4" high, complete with attaching plates for Item #2 ........ $ 5,510.00 02 01 Model D-66A Eriez (or equal) Vibratory Feeder, 24" wide x 2'-6" long, complete with Control Panel .......eeeeeeeees $ 3,935.00 03 01 Model LC 18-25 Aeroglide Belt Conveyor, 18" wide x 25'-0" long, complete with a 3 hp Power Unit and Magnet ........ $11,245.00 04 01 Model 34 AB Jeffrey (or equal) Hammermill, complete with a 60 hp Power Unit and Mounting BaSe .....sceeeccecccceeees § 24,890.00 05 01 Model SC 16-25 Aeroglide Screw Conveyor, 16" wide x 25'-0" long, complete with a 7-1/2 hp Power Unit .......eeeeee-- $ 9,170.00 TOTAL PRICE PAYMENT TERMS ACCEPTED ON (DATE) AT RALEIGH, NORTH CAROLINA, U.S. A. SELLER | AEROGLIDE CORPORATION —— BY’ een (SEALE BY, ee ean TITLE es STL This agreement is not binding on Seller unless signed by an officer of Aeroglide Corporation, Raleigh, N.C., U.S.A. ACCOUNTING COPY Aeroglide | SLES GONYTRAGT AEROGLIDE CORPORATION | BOX AEROGLIDE | RALEIGH, NC 27626-9990 | AREA (919) 851-2000 | TELEX 579421 Mr. Ted Smith oOron Oo4o ° SALESMAN DATE TYPE MACHINERY 7/26/85 | a JOB NO. SHIP VIA COLLECT PREPAID S/O0-8/L ITEM | QUAN. | DESCRIPTION OF MACHINERY, SPECIFICATIONS AND/OR SERVICES SUBJECT TO ALL THE CONDITIONS PRINTED ON THE BACK OF THIS SHEET, AEROGLIDE CORPORATION SHALL SELL AND THE UNDERSIGNED SHALL BUY THE FOLLOWING: 06 01 Model BE 148 Aeroglide Bucket Elevator, chain type with 14" x 8" continuous buckets complete with a 7-1/2 hp Power Unit ........ Peewee reer eee ce cece cc cccccc es csccccccecccscccsees § 39,560.00 07 01 Model MB 1250 Aeroglide Metering Bin, 10'-0" x 107-0" x 29'-o" high, complete with a capacity of approximately 1250 ft or 9 CONS cece ec ec eer cc cece cc eccccccccccvecccecccececees § 11,855.00 08 01 Model SF 30-15 Aeroglide Twin Screw Feeder, 30" wide x 157-0" long, complete with a 5 hp Power Unit ............. $ 11,380.00 09 01 Model SC 16-25 Aeroglide Screw Conveyor, 16" wide x 25'-0" long, complete with a 7-1/2 hp Power Unit ...... ccc cece $ 9,170.00 10 01 Model DF 300 Aeroglide Dry Starch Feeder, complete with holding bin and a 1/2 hp Power Unit ...... cc ccc cece cece eee $ 4.425.00 1 01 Model TS 48-16 Aeroglide Paddle Mixer, 48" wide x 16'-0" long, complete with two (2) 30 hp Power Units ........... $ 69,460.00 12 01 Model MC-24-24 Aeroglide Mix Conveyor, 24" wide x 24'-0" long, complete with a 3 hp Power Unit and Magnet ........ $ 10,780.00 13 01 Model 60 MS 20-S-13.4 Bepex (or equal) Bri c ; : quet Press, complete with a 25 hp Power Unit and Discharge Conveyor .... $143,150.00 Fa eer ti SE TOTAL PRICE PAYMENT TERMS ACCEPTED ON (DATE) AT RALEIGH, NORTH CAROLINA, U.S. A. SELLER AEROGLIDE CORPORATION BUYER BY a (SEAL) By (SEAL) TITLE ee es HEE This agreement is not binding on Seller unless signed by an officer of Aeroglide Corporation, Raleigh, N.C., U.S.A. ACCOUNTING COPY Aerogide’| SALES CONTRACT = SP AEROGLIDE CORPORATION | BOX AEROGLIDE | RALEIGH, NC 27626-9990 | AREA (919) 851-2000 | TELEX 579421 Mr. Ted Smith Ss Ss OT HT LO 10 D P SALES AREA SHIP VIA COLLECT PREPAID Can aaa ITEM | QUAN. | DESCRIPTION OF MACHINERY, SPECIFICATIONS AND/OR SERVICES aia SUBJECT TO ALL THE CONDITIONS PRINTED ON THE BACK OF THIS SHEET, AEROGLIDE CORPORATION SHALL SELL AND THE UNDERSIGNED SHALL BUY THE FOLLOWING: 14 01 Model EC 12-30 Aeroglide Elevating Conveyor, 12" wide x 40'-0" long, complete with a 2 hp Power Unit ..........-2. $ 4,655.00 15 01 Model DC 12-28 Aeroglide Distributing Conveyor, 12" wide x 18'-0" long, complete with a 3 hp Power Unit .... $ 11,050.00 16 01 Model C1-144-69 Aeroglide Conveyor Drier/Cooler, 12'-0" nominal inside width x 69'-3" approx. overall length, complete with power units totaling 161-1/2 hp .............. $248,355.00 17 01 Model CC 12-50 Aeroglide Collecting Conveyor, 12" wide x 50'-0" long, complete with a 3 hp, Power Unit ............. $ 5,970.00 18 01 Model BE 148 Aeroglide Bucket Elevator, chain type with 14" x 8" continuous buckets, complete with a 5 hp Power Unit and Conveyor to second storage bin with two (2) hp Power ONL" biaierelete ciclo cieis cicicinieicisiclel elolcleisisisicielelels cleleicisicieie/eieis)s| 9307 010.00 19 01 Model SB 5325 Aeroglide Storage Bin, 14'-0" x 14'-0" x 40'-0" high industrial type bolted steel, complete with a capacity of approximately 5,325 ft. or 64 T ea. $26,845 ea. .... $ 53,690.00 20 01 Model D-65A Eriez (or equal) Vibatory Feeder, 24" wide x 2~-6" long, complete with control panel $3,935 ea. ....... $ 7,870.00 TOCA ER ICE yg eee ee PAYMENT TERMS ACCEPTED ON (DATE) AT RALEIGH, NORTH CAROLINA, U.S. A. SELLER AEROGLIDECORPORATION == BUYER BY (SEAL) By (SEAL) TITLE Eee eee | Tite This agreement is not binding on Seller unless signed by an officer of Aeroglide Corporation, Raleigh, N.C., U.S.A. Coenen ea a a ge eee erence ACCOUNTING COPY ct i) O @ ‘ oO o ‘ OV Aeroglide | SALES GONTRAGT =: AEROGLIDE CORPORATION | BOX AEROGLIDE | RALEIGH, NC 27626-9990 | AREA (919) 851-2000 | TELEX 579421 Ss Ss OT HT LO 10 D P DATE TYPE MACHINERY SALESMAN 7/26/85 SALES AREA SHIP VIA COLLECT PREPAID —~——— ITEM | QUAN. | DESCRIPTION OF MACHINERY, SPECIFICATIONS AND/OR SERVICES SUBJECT TO ALL THE CONDITIONS PRINTED ON THE BACK OF THIS SHEET, AEROGLIDE CORPORATION SHALL SELL AND THE UNDERSIGNED SHALL BUY THE FOLLOWING: | | 21 02 Model FC 12-20 Aeroglide Feed System, 12" wide x 25'-0" long, | complete with a 2 hp Power Unit each $3,247 ea. ..... $ 6,494.00 22 02 Ouachita (or equal) Packaging Lines, complete for weighing briquets in increments of 5, 10, and 20 lbs. System include controls, starters and items as follows: Two (2) Model OMW LCS-3NW Scales One (1) Model OMW 1020 Bagger, for 10 and 20#. bags. One (1) Model OMW 510 Bagger, for 5 and 10# bags. | Two (2) Model OMW HM-70 Tablock Bag Sealers. | One (1) OMW-FA-4 Speed-up Conveyor. One (1) Model OMW VF-30 Settling Table. One (1) Model OMW RXF-10 Accumulating Conveyor One (1) Model OMW SW-001 Stretch Bundler. $180,705 ea. $361,410 23 01 Model SHSM Lantech (or equal) Ballet Stretchwrap.$ 24,000 TOTAL PRICE PAYMENT TERMS ACCEPTED ON (DATE) AT RALEIGH, NORTH CAROLINA, U. S. A. SELLER AEROGLIDE CORPORATION BUYER BY (SEAL) By SEAL) TITLE TCE This agreement is not binding on Seller unless signed by an officer of Aeroglide Corporation, Raleigh, N.C., U.S.A. ACCOUNTING COPY Aeroglide | SALES GONTRAGT 22505. AEROGLIDE CORPORATION | BOX AEROGLIDE | RALEIGH, NC 27626-9990 | AREA (919) 851-2000 | TELEX 579421 Mr. Ted Smith TYPE MACHINERY SALESMAN COLLECT PREPAID re" ITEM | QUAN. | DESCRIPTION OF MACHINERY, SPECIFICATIONS AND/OR SERVICES SALES AREA lS SHIP VIA SUBJECT TO ALL THE CONDITIONS PRINTED ON THE BACK OF THIS SHEET, AEROGLIDE CORPORATION SHALL SELL AND THE UNDERSIGNED SHALL BUY THE FOLLOWING: 24 02 Eriz (or equal) magnets to protect the mixer and press from tramp metal $4,095 ea. $ 8,190.00 25 01 Machinery suitable for collecting dry charcoal dust and wet charcoal fines and returning them to the process on a continuous basis. Components include a "bag house" type collector, duct piping, conveyors and power units ..........-2+- $ 77,180.00 26 01 Bulk Starch receiving, conveying storage and preparation system (2,300 cu. ft. or approximately 90,000 lbs. working capacity) complete with "jet cooker" ......c cece cece eceee $ 92,480.00 27 N/A Field assembly material furnished includes eight (8) sets of drawings (foundations, installation, electrical and plumbing) assembly fasteners, caulking and touch-up paint. Foundation, electrical and plumbing drawings available 6 to 8 weeks after date of order. Detailed installation drawings available prior to shipment. GENERAL NOTES This sales contract does not include unloading labor or equipment, erection labor or foundations, anchor bolts, crane services, electrical wiring, gas plumbing or any kind of applicable taxes. TOTAL PRICE i PAYMENT TERMS 30% with order, 70% prior to shipment. ACCEPTED ON (DATE) AT RALEIGH, NORTH CAROLINA, U.S. A. SELLER | AEROGLIDE CORPORATION BUYER TED SMITH BY ene), | BY ee SEAL) TITLE Le This agreement is not binding on Seller unless signed by an officer of Aeroglide Corporation, Raleigh, N.C., U.S.A. Sees ee ACCOUNTING COPY Aeroglide SLES GONTRAGT AEROGLIDE CORPORATION | BOX AEROGLIDE | RALEIGH, NC 27626-9990 | AREA (919) 851-2000 | TELEX 579421 Mr. Ted Smith Ss Ss ot A _ HT LO ie) Dd P SALESMAN DATE PAGE TYPE MACHINERY 7/26/85 6 or 6 ITEM | QUAN. | DESCRIPTION OF MACHINERY, SPECIFICATIONS AND/OR SERVICES SUBJECT TO ALL THE CONDITIONS PRINTED ON THE BACK OF THIS SHEET, AEROGLIDE CORPORATION SHALL SELL AND THE UNDERSIGNED SHALL BUY THE FOLLOWING: Based on present production load and purchased component availability, materials shipment can be made over a period of 20- 26 weeks from receipt of formal order. Aeroglide Corporation can provide, under separate Sales Contract, basic consulting and planning services, and installation technician and a start-up technician. Charges to be $320.00 per day, plus expenses for each day away from the factory. It is understood that some dimensions are approximate and that certain specifications of individual machines May change. TOTAL PRICE 1,293,884 FOB Raleigh, NC, plus applicable taxes. PAYMENT TERMS __30% with order, 70% prior to shipment. (DATE) AT RALEIGH, NORTH CAROLINA, U.S. A. ACCEPTED ON SELLER | AEROGLIDE CORPORATION BUYER TED SMITH BY (SEAL) By (SEAL) TITLE TTL This agreement is not binding on Seller unless signed by an officer of Aeroglide Corporation, Raleigh, N.C., U.S.A. ACCOUNTING COPY CIF f\ fe | V7 Attachment 7 S | Mie OF ALASKA Page 1 of 3 DEPARTMENT OF COMMERCE & sous « ECONOMIC DEVELOPMENT ANCHORAGE, ALASKA 99503 ERR EECA PHONE: (907) 563-2989 Dear Alaskan, The State Office of Energy, in cooperation with The Valley Sawmill, is conducting a brief sample survey of Anchorage and Mat-Su residents. You were selected as a resident of this survey area. We would like your opinions on firewood and charcoal, to gather information for a federal woodwaste program. The questionnaire has been designed so that you can complete it very quickly and easily. It takes only a few minutes, and you need only check off your answers or jot down a number. A postage paid return envelope has been included for your convenience. All the information you provide is strictly confidential. No individual residents will be identified. Your answers will be combined with those of many others and used only for statistical analysis. We genuinely appreciate your valuable assistance. Your honest impressions and opinions are necessary to ensure efficient utilization of our wood resources. Please complete and return the form right away. Again, thank you for your help. = Sincerely, Calvin L. Kerr Consultant encl ( 419LH B\22\ 9° . Attachment 7 Page 2 af 3 - FIREWOOD AND CHARCOAL SURVEY QUESTIONNAI&e - TOTA 1. Have you burned any of the following at home in the last 12 months? (Check any that apply) \=443 Silklogs, split or round |O saw dust T9 roiled newspaper 2Qoecharcoal briquettes |4@scrap lumber S9 fireplace logs - "Presto ocoal mill residues __ other: Sted chips (PTease specity) ___ NONE (Please go to question 7) If you only burn fuels other than logs, split or round (such as coal or Presto loas} please go to question 7. 2. How often do you burn firewood in winter? (Please check most appropriate) 11g at least once a week 49 twice a month or more ‘(S$ once a month or less Az S24 AL DAILY 3. Where do you burn firewood? (Please check all that apply) ALS fireplace \|_ fireplace insert a~ Bee pit |— smear CoA 4 wood furnace |22.wood stove 2 R& Use FURWAK LE __ Other: (Please specify) - }~RoOILER 2~ WOKINS STove 4. What firewood species did you burn most recently? (Check all that apply) 255 lio = birch spruce cottonwood mixed not sure Other: (Specify) 255% a 5. Do you own a chain saw?“t2 Yes \Q3No Qh BLAUK MeAN > If yes, how much wood have you cut in the last 12 months? cordst|—7 N=Qy 7 6. How much firewood did you buy in the last 12 months? cords @QOS~2,C0 OSH ze If you have not bought firewood in the last 12 months, go to 7) If you bought firewood, was it: (Please check all, that apply) in split 32 green /S stacked delivered N=B1 How long was the firewood? inches [,(8,24¢ Mest Common N=3/ How much did you pay per cord? $/cord M5100 MOST Common ...cont'd on back = Attachment 7 Page 3 of 3 Statement Scale l=Strongly Agree 2=Agree 3=No judgement 4=Disagree 5=Strongly Disagree 7. Use NUMBERS from the Statement Scale (above) to state your thoughts Cowen, 220ut the Opinions below. z 3 s! =n i S- AR QUAL Wood is a renewable fue r4p[ 23] 24 [as | y | Burning wood is me and dir [zoli4o[ Gf [ls | 34 | 5~ Review Wood is a cheap fuel [ss]is¢ |b? [les | js”. Wood heat is uneven and dr Lig] (3¢ [tid fis) [22 Round or split logs are the best firewood | 7s |223/ 98 [ 7) | & | Starting a fire takes too long. | 3] 4s | 44 Sb | loF' Fireplaces create a friendly atmosphere 262] /Sb| [ft 21 3 | Storing wood takes too much space __ fo} TL A311 3h | es 2234 | 8. Did you buy charcoal in the last 12 months? \ If "NOY, go to 9. How much charcoal did you buy in the last 12 months? bags 12% Soa les _ ow often do you burn charcoal in summer? (Please check most appropriate) N= 79 at least once a week{2l} twice a month or more He once a month or less 9. Use NUMBERS from the Statement Scale (above) to state your thoughts CONTROL, about the opinions below. ~~. Charcoal cooking is the best part of summer cooking Charcoal leaves a strong “aftertaste” Charcoal is pretty much the same, I buy the cheapest I buy charcoal at a grocery store Lighting charcoal is difficult and time consuming 92 eset 4 | 7 | 22 1954 Wsit74 | 10. What percentage of your home heating is from: “ONTROL % % % % % or Wood Gas Electricity OiT Solar, Other: Specify: 921% 173% °°?! toe an ae . ; 7 fees 11. Do you live in: Za single family or 6 multi-family home? 12. What is the five (5) digit ZIP code where you live? 13. What is your job or occupation? 14. How old are you? years. 15. What is your approximate annual household income? Under $10,000 %$I1-30,000 $31-50,000 $51-70,000 $71,000+