Thermal Energy International Inc. has announced that Natural Resources Canada (NRCan) has committed $900,000 in funding toward the development of a green energy power facility in eastern Canada.
The funding would be a repayable contribution agreement from NRCan’s Climate Change Interim Strategy Technology Early Action Measures (TEAM) Fund to Thermal Energy. The project will demonstrate the performance and energy efficiency improvements of a combined biomass dryer/energy recovery system to reduce emissions and fossil fuel use at a Canadian pulp and paper mill.
The project under consideration stems from a Letter of Intent (LOI) signed with an Eastern Canada pulp and paper mill for the design and installation of a DRY-REX(TM) low temperature biomass drying system. As per the LOI, Thermal Energy has completed a detailed feasibility study and has presented it to the mill for review. A decision by the mill is expected this fiscal year.
Energy cost reductions
The proposed project would provide significant energy cost reductions and environmental benefits by diverting more than 120 tonnes per day of pulp and paper sludge away from landfill for use as biofuel. This would reduce the use of fuel oil and achieve a commensurate reduction in emissions including an estimated 69,000 tonnes of greenhouse gases (GHG) per year.
The proposal as submitted would also see the mill enter into a multi-million dollar green energy supply contract using the Thermal-AUD(TM) (Alternate Utility Delivery) program through Thermal Energy’s energy services subsidiary ForEverGreen Energy Inc. The green energy would be created from drying the mill’s biomass waste stream including paper sludge for use as a biofuel, utilizing a combination of Thermal Energy’s FLU-ACE(R) waste heat recovery technology and the DRY-REX(TM) technology.
The project would require no upfront capital investment from the mill, which would start to realize the benefits from the first day of operation. The project would also provide Thermal Energy with a recurring revenue stream from the energy sales throughout the life of the proposed multi-year contract.
Under the terms of the TEAM agreement, Thermal Energy will repay the government an amount equal to 2% of the revenue from the sale of bioenergy systems, up to a maximum of $100,000 a year.
For more information, go to www.thermalenergy.com
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