Biomass Project

What is Biomass?

Biomass is using renewable resources as fuel.  Wood or agricultural waste such as corn stalks, stover, or sorgum are examples.

What sources of biomass are involved with this project?

Wood is the source of fuel for this project.  Both open loop (waste wood, tops, limbs, agricultural waste) and closed loop (dedicated crops of trees) wood will be used.  The goal is to have 75% biomass fuel over twenty years.  The wood processing and storage yard will be in Mt. Iron .

Typical tree plantation after one year

Biomass will be chipped or ground and transported by truck to the wood storage facility

Why is Virginia Public Utilities involved in this project?

The State of Minnesota mandated major power producers (Xcel Energy, formerly NSP) to use biomass fuel.  Virginia Public Utilities and Hibbing Public Utilities determined that they could use biomass fuel to supplement underutilized facilities and sell the extra power generated to Xcel Energy.

What are the benefits of this project?

-         up to 70 jobs (at Virginia and Hibbing Public Utilities) retained for 20 years

-         65-100 new jobs created in the wood processing portion of the project

-         $52 million in new development at Virginia and Hibbing Public Utilities

-         $10 million invested in wood yard and harvesting equipment

-         $19.2 million in biomass fuel will be spent annually within 75 miles of Virginia and Hibbing

-         predictable steam rates for 3,600 residential and commercial steam customers in Virginia and Hibbing

-         cost avoidance of up to $20 million in steam conversions for customers

-         environmental benefit of using biomass instead of coal

-         pollution control cost avoidance due to using less coal

-         new market for region’s loggers and landholders

-         $20 million annual community economic value (labor, fuel, materials); $1.2 billion over 20 years

What is all the construction about?

New wood-fired boilers are being built in both Virginia and Hibbing.  The coal and natural gas boilers will be kept as back-ups and will produce 25% of the power over 20 years.

Here are some pictures from the Virginia construction site.

February 15, 2006.   Part of the old Power Plant in Virginia  

needed to be demolished to make way for the new boiler.

February 21, 2006 after the demolition.

May 15, 2006   New steel is going up.

June 20, 2006 - Steel framework almost done!

September 2006 - Boiler parts are filling in

November 2006 - Enclosing the new boiler

December 2006 - Boiler is Enclosed

"First Fire" on December 22, 2006.  Click here for a link to an article from the Mesabi Daily News.

When will the wood-fired boiler be operational?

December 31, 2006 is the scheduled start-up date.

Who else is involved in this project?

If we have omitted any involved parties, please contact webmaster1@vpuc.com to be added to the listing.

Some Interesting Construction Facts:

• 2,725 cubic yards (or 5,520 tons) of concrete were poured for this project

• 250 tons of steel were erected

• 76 miles of wire and 2 miles of conduit were pulled

• There are 750 feet of conveyors

• The stack is 150 feet high

• The boiler has a capacity of 135,000 pounds/hour

• The final steam temperature is 830° F

• The boiler weighs 55 tons and has 1,054 tubes in it

If you have any questions about the Biomass Project, please contact leonit@vpuc.com to have them addressed.  Check back here for updates and new pictures as the project progresses.