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Whole Tree Energy
Whole Tree Energy
Whole Tree Energy
Biomass Power Mandate. The Mandate, part of a state government settlement with Northern States Power Company over the disposal of nuclear waste, requires that 125 MW of renewable energy be produced by Minnesota utilities by the year 2002. To meet this Mandate, Northern States Power Company solicited proposals for renewable power plants and in December 1998, Ostlie was awarded a 20-year Power Purchase Agreement (PPA) for a 25 MW Whole Tree Energy plant. The Mandate requires that biomass power plants be fueled with 75 percent farm-grown closed-loop biomass but allows a six-year exemption for closed-loop biomass. (Closed-loop biomass is defined as crops planted and grown specifically for energy production.) In the early project years, the project will re-establish river bottom tree stands and harvest tree stands that are declining due to their maturity. The farm grown closed-loop fuel will include fast growing hybrid poplar and cottonwoods with production targeted for CRP land. Tree farms will consist of 345 total fields of 80-acre average size planted to 1,800 trees per acre. In all, 27,500 total acres will be involved or over 5,500 total acres per year. For a 25 MW plant, approximately 0.5 percent of the land area within a 50-mile radius will be utilized. Ostlie notes the project benefits of economic development, demonstration of an alternative crop (trees), establishment of trees for soil stabilization, and the providing of positive environmental impacts. As a regulated utility, the Whole Tree Energy contract had to be approved by the Minnesota Public Utilities Commission. This approval process included a period for receipt of written comments and a hearing in July 1999. During this time, another PPA for renewable power that NSP had awarded as a result of the Mandate fell through. Therefore NSP asked Ostlie to provide information on increasing his Whole Tree Energy project from 25 MW to 50 or 75 MW. Ostlie received approval from the Minnesota Public Utilities Commission on December 20, 1999, for a 25 MW whole tree energy power plant to be built in St. Peter, Minnesota (approximately 50 miles southwest of Minneapolis). In addition, NSP has the option to expand the project size to 50 or 75 MW within six months. Ostlie expects to complete permitting, engineering/design, fuel supply procurement, and financing within 18 months. During the Spring of 2000 initial field plantings will be conducted, followed by construction and testing over the next 24 months with plant startup and operation occurring by early 2003. For additional information contact David Ostlie at Energy Performance Systems, 4900 N. Highway 169, Suite 303, Minneapolis, Minnesota 55428-4019, USA, phone +1 612 533 0503, fax +1 612 533 1530, or email at davost@aol.com.