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Friday, August 20, 2010

Cutting them loose to the forest industry

]The BC Forest Safety Council is involved with the restoration process required in B.C.s beetle ravaged and decadent forests, and the organization is watching the uphill fight with funding for the massive process of forest remediation. 
     
Steve Mueller, Director of Workforce Development for the BCFSC, says, "The federal government announced $1 billion to remedy problems from the Mountain Pine Beetle (MPB) but the money was diverted to highways, bridges, and airport runways," he notes ruefully.
     
It appears the federal direction is missing in the management of the MPB crisis, although one initiative is more recent, "The Community Development Trust Fund (federal dollars for B.C.) is funding $500,000 inclusive of First Nations in programs directly related to training for the forestry siiviculture industry." He says there are 1,000 training seats available for truck driver training, machine and other safety training, and forestry supervisory training.
     
This funding is issued with parity inclusive of First Nations and the training is delivered to the grassroots in safety training on vehicles and forestry management. Meanwhile BCFSC is working on safety training programs for fallers, "We're have developed new faller training and delivered it to several First Nation communities," including Lytton Indian Band.
     
Mueller is closely engaged in the faller training initiatives underway this year. "Faller training is a 3-stage process including 30 days of field instruction, four days of classroom, and work-experience in the field with professional foresters." Following the course there is a 180-day practicum under the Safe Companies Program of WorksafeBC.

     
"Fallers are certifiable after 180 days," which means they are eligible to challenge for certification as a safe logger in B.C., "but they have to be experienced on falling trees larger than 6" at the butt." At BCFSC, "We do the 30-day training and cut them loose, and it's essentially a form of apprenticeship. Presently the economy affects their job prospects."

      
Mueller says, "I am proud of all the people we have trained. And I see an increasing role for First Nations in the provincial forests. For many of these opportunities training is required." He has made an insightful observation from these later years of exposure to the growing body of First Nation foresters. "Last year I presented on safety at the Aboriginal Forestry Industry Council. I was impressed by the young professional foresters who concentrated on safety right from the get-go."
      
He said their primary interest in safety flies in the face of old-school logging, and they have a persistent determination to overcome other barriers to learning because it remains an issue that First Nations have extraordinary challenges. "They have literacy issues in some cases, and technical concepts are often written."
      
Meanwhile, says, Mueller, First Nations are keen on the forest industry as a profession with a future. And he notes, "Siliviculture is a big business and employment opportunity for the First Nations." He notes the Western Silviculture Contractors Assocation has a large involvement in the current training scenarios from the aforementioned federal trust funds.

Bio-coal scenario fits neatly into Canadian law regarding emission control

Under Canadian law coal-fired power plants must begin to reduce CO2 emmissions or face penalty and to encourage the reductions the power generation companies can obtain carbon credits, says Bill McIntyre, Vice-President Marketing and Sales Canadian Bio-Coal Ltd.. Torrefaction is a feasible method for improvement the properties of biomass as a fuel as a coal substitute for power generation plants around the world.

The preparation of high-grade biochar through the controlled, low temperature microwave activation of bug killed wood and waste materials providing an emission free technology for the production of bio-mass char, marketing and transportation services.

McIntyre explains that some of the advantages of treated biomass include low water content, calorific value similar to coal, low oxygen to carbon ratios. The bio-coal is suitable for micronisation, stable for long term storage, and contains consistent physical properties.

"The bio-coal industry was developed in Britain and takes wood chip bio-mass through micro-wave technology," and the process can be applied to any type of wood, including the crown of a tree and the bark left on the forest floor after timber harvest. "If it's on the forest floor it's use-able." 

Canadian Bio-Coal Ltd. principals traveled to Britain a couple of years ago and obtained the marketing and distribution rights, and, "When we first started we took the technology to the major forestry companies in the province of B.C., offering a brand new revenue stream that would help solve problems in the forests. We found no interest." 

Then they turned to the First Nations, "and we outlined all the benefits in May 2009. The interest level was there so we returned to Terrace in January of 2010. We began to realize it would be First Nations that would drive this technology forward. They have the fibre, they have the access to freight bio-mass to the facilities." 

Canadian Bio-Coal Ltd. is in joint-venture mode with two Bands in the area of the North-West Pacific, and they are consulting with First Nation Forestry Council to create an information stream to other Bands in the region. They are arranging long-term contractual scenarios for rail freight of the end-product for shipping to international markets that exist everywhere, including Europe and China. 

The torrefaction of bio-mass is an improvement in the shipping of bio-mass because shipping wood pellets creates a fire-threat, "Wood pellets are known to catch fire on-board ship." Wood waste when piled up creates a high amount of heat generation, enough to start fires even when sitting motionless, for the wood continues to settle according to the law of gravity. Add the motion of ship transport at sea, the fire hazard becomes rather extreme. Bio-coal is fire-safe in these circumstances of ship and rail transport. 

The plan for production involves development of a three and a half acre site including storage facilities; development will be in proximity to road and rail. The process of making coal takes less time than producing charcoal. Bio-mass includes all types of trees, aspen and birch included, bio-mass left behind from clear-cuts.
    
The process uses a large scale oven that is totally sealed and applies microwave technology to produce no emissions. The process takes the heat generated in the oven and diverts it back to the pre-dry stage, and takes gases to create electricity around the facilities. The world demand for wood pellets was 1.5 million tonnes last year. 
    
With 799 coal-fired electrical generation plants around the world the future burns bright for Canadian produced bio-coal, and the company is looking at Terrace to build the first facilities. "We believed in 2009 that First Nations would drive this industry and we believe it now. They have the forestry business acumen and they have the wood fibre. They are seeking well-paying assets for their communities." 
    
McIntyre says, "We'll take the bug-infested wood, we can take anything," including the decadent forestry timber found in Nisga'a and Gitxsan, "and we are working with people like Keith Atkinson fo the FNFC." 
     
Atkinson says, "We are willing to produce documentation and presentation of the investment potential for this new industry," and, says he, "FNFC promotes First Nation equity in the forestry industry. We must have transparency and public disclosure in the business dealings. We want to see business resources put into First Nation communities." 
    
FNFC is promoting value-added forestry prospects, "Business is coming into First Nation territories and relying on First Nation owned resources to make a profit. Cooperation with First Nations at all levels of the business cycle will do a great deal to reduce the uncertainty of their business prospects."
    
Meanwhile, regarding the mitigation of fire threats in the province of B.C.,  Atkinson notes, "The Ministry of Forests has already declared fire season is underway, as of April 15, 2010." He adds that it is a bit of an 'I told you so' scenario from the FNFC membership point of view.

Thursday, August 19, 2010

60 year Altagas agreement is rather unheard of

Myles Dougan is Vice-President in charge of communications at Altagas, speaking to the Forrest Kerr Run-of-River Hydro project that is proceeding in northern B.C. within the traditional territory of the Tahltan Nation. Dougan says, “This is a really good project that we are proceeding with, establishing long-term relationships with the Tahltan and BC Hydro.”
 
The project is signed with a 60-year agreement to sell power to BC Hydro, 195 MWh, enough to power 70,000 homes, “The 60-year agreement is rather unheard of,” says Dougan, “twenty, twenty-five are common, but 60 years is quite something.” The signings include transmission agreements. “That is the expectation.”
 
The project is under construction and initial clearing of the site is done, “and we are proceeding with the second half of initial construction. Everything is proceeding toward a completion date that will see power delivered to grid by 2014.

The Forrest Kerr Project will channel a portion of the Iskut River flow through a tunnel to an underground powerhouse, where it will pass through turbines to produce electricity before it is returned to the river. The Forrest Kerr Project was issued an environment assessment certificate in March 2010. Site development activities are currently underway and AltaGas anticipates initiating construction immediately.
 
"This project represents an exciting partnership for AltaGas with the Tahltan Nation and with the Government of British Columbia,” added Mr. Cornhill. “The Forrest Kerr Project will be a significant renewable energy asset, and is supported by 40 years of hydrology data and analysis.”

AltaGas and the Tahltan Nation have established a strong working relationship that will see the people of the Tahltan Nation having employment and business opportunities and economic participation in the Forrest Kerr Project.

 "The Tahltan Nation is proud of this Impact Benefit Agreement with Coast Mountain Hydro Corp. and the increased economic security that it will provide for generations to come,” said Annita McPhee, Chair, Tahltan Central Council. “This agreement establishes ownership, management of our resources and profit sharing while taking into consideration the protection of our environment as a renewable energy project. This IBA will set the bar for resource development projects and demonstrates the results of a successful relationship with a company in Tahltan Territory that respects our Aboriginal title and rights"

The Forrest Kerr construction site located in northwest British Columbia, about 100 km from Stewart, BC., AltaGas expects the Forrest Kerr Project to be the first of three run-of-river power generation projects in the area. The company continues development of its McLymont Creek and Volcano Creek projects.
 
The Forrest Kerr Project represents an important evolution in AltaGas’ power business as we continue to build long-term contracted generation assets,” said David Cornhill, Chairman and Chief Executive Officer of AltaGas. “These projects will provide the people of British Columbia with clean and reliable power from a significant water resource. For our investors, this announcement comes at an important time in history as governments move to reduce emissions while building for the future.”

The Forrest Kerr Project is to be constructed wholly within Tahltan Nation traditional territory and is estimated to cost a total of approximately $700 million. Once completed, the project will offset more than 450,000 tonnes of greenhouse gas equivalents annually. The Forrest Kerr Project will deliver electricity to the terminus point of a 287-kV Northwest Transmission Line (NTL), near Bob Quinn, BC. (BC Hydro is developing the NTL.)

Meanwhile Altagas successfully completed of the Bear Mountain Wind Energy Project at Dawson Creek, B.C., after they began erecting wind turbines in May 2009. By July 2009, the first wind turbine was completed, and by October the construction of 34 wind turbines was completed, on budget and ahead of schedule. “So far the electrical generation is not quite as strong as we had hoped,” but time, and more wind, will tell the story.

Mutual benefits bring LNIB and Trace Resources together

Trace Resources in Merritt, B.C., is a company closely tied to working with First Nations like Lower Nicola Indian Band, leasing land on LNIB reserve property, employing First Nations from LNIB, and working with the Shulus Forestry, owned by LNIB (run by Trevor Ball).
   
 Ron Racine is one of the owners of Trace Resources. “We run our operations on LNIB, near Merritt, and we employ people there. We’ve been operating for one and a half years manufacturing forestry fibre for chips, hog fuel, and some logs for market.”
    
The company picks the highest value usage for the fibre and ultimately uses a lot of low-cost fibre in their operations. In fact, the company has caught the attention of the B.C. government, “With companies like Trace, we’re turning the mountain pine beetle infestation into a bioenergy opportunity that will create jobs and meet our climate goals,” said Forestry Minister Pat Bell, while he toured Trace’s grinding operations north of Merritt.
    
“We’re seeing a whole new industry developing – an industry that leaves no piece of wood behind.”  Trace Resources formed in October 2008 in answer to new opportunities around the utilization of wood waste. Together with an affiliated company, Jaeden Resources, it recently put into operation two grinders and loaders worth $1.8 million.
    
Trace is following the learning curve and, “learning by doing,” says Racine. Chips are used by pulp mills like Harmac Pacific Northern Bleached Softwood Kraft (NBSK) pulp mill located on the east coast of Vancouver Island near Nanaimo, British Columbia, and Howe Sound Pulp and Paper. Hog Fuel is sold there, and to Belgium. Logs go to market. 
    
Racine says, “LNIB was looking for partners to move products from their forestry operations and we were looking for land to put our operations, and fibre for those operations, and skills in forestry operations,” and found all of this in LNIB. Racine’s company found the LNIB operations and personnel to be innovative and relationship oriented.
    
Racine says, “The relationship is based on three principles, the land lease, the employment of LNIB personnel both directly and indirectly, and the operation of the FRA forest license owned by LNIB.” Trace operates on a ten hectare site north-west of Merritt. “We have buildings, a scale for weighing fibre, and a chip plant. Some of the timber is processed for log sales.”

The company maximizes profits from the wood fibre they receive from LNIB and other First Nation forest licensees. “It’s full utilization of the wood.”

Sunday, August 15, 2010

Log moving done by barge at Seaspan

Seaspan International moves logs on the water. They do it on the west coast and run logs from Alaska to California, but we’re talking to the Vancouver offices, and Glen Mcgee, Manager, Log Barge Division. “We celebrated our 100th anniversary a couple years ago,” says Mcgee.
    
First Nations work for Seaspan in positions, “across the whole fleet, captains, mates, deck hands,” and logs moved by Seaspan come from First Nation forestry operations more and more on the west coast, “It’s changing,” says Mcgee, “It used to be the big forestry companies. Now First Nations and a lot of smaller companies are brokering wood and moving logs to market.”
     
Seaspan makes direct contact with First Nations or intermediaries to market fibre, “A company like John Mohammed’s A & A Trading hires us to move the wood that is owned by First Nations Nuxalk Nation and Klahoose First Nation.” Other things have changed with Seaspan, “We used to be in log towing by log boom, but now we operate log barges, three of them, moving logs, and chip scows to barge chips to pulp mills.”
    
Safety comes first in the business of moving logs at Seaspan. “It looks simple but there are no second chances. We find various levels of safety on the docks are facilities that we visit, but the big companies like ourselves put in tons of training and adhere to the highest standards. It varies and we are more vigilant in some of the local pick-ups.
    
A run from Vancouver to Anchorage for example is a 10-day round trip. Nanaimo to Port Alberni is a 36 hour voyage. Seaspan log barges have a crew of six, four working at a time (two on respite). The crews are flown in and out. The personnel are machine experienced employees receiving good pay and good tme-out periods. “Our crews are ‘crane-safe’ operators working on our three barges. The loads are 600 to 700 truck-loads per barge on the biggest vessel. It takes about eight to 12 hours to load.”
    
The dump sites are usually on the Fraser River, or as they say in the  industry, ‘The River,’ including Haney, and Riverview, and in the New Westminster log sorting ground. Seaspan discharges on both dock and into the river. Howe Sound used to be a area of intense log sort activity but that is no longer the case, although logs continue to be discharged there, with a lot of chips delivered to Howe Sound Pulp and Paper.
     
Other sites for discharge include Ladysmith Harbour and Bernice Arm, and Nanaimo as well, especially when shipments are destined for Asian markets. Seaspan's Log Barge Division employs 16.

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