United States Department of Agriculture

Biomass energy can be important in meeting the heating needs of facilities that currently depend on fossil fuels. The Kenai Peninsula region of Alaska has abundant forest resources, which include a substantial amount of spruce (Picea spp.) wood killed by bark beetles (Dendroctonus rufipennis (Kirby)). This region of Alaska holds promise for the development of biomass energy projects not only because of its timber resources but also the presence of an existing timber industry (both processing and logging infrastructure). Salvaged material could be used to produce energy to heat buildings, although its longterm supply might be questionable. Many sawmill facilities in the region would be well positioned to supply wood wastes for fuel if the availability of beetle-killed wood declines. This paper evaluates the economic feasibility of using local forest and sawmill residues to supply a wood-fired hot water system that would provide space heating or process heat at a centrally located site within the Kenai Peninsula. In the Kenai Peninsula, there are about 10 to 15 sawmill facilities currently producing an estimated 4.5 million board feet (MMBF) of lumber per year, primarily spruce (Kilborn 2000, Parrent 2000b). During the past several decades, improved technologies in Pacific Northwest sawmills---including thinner sawkerfs, smaller green lumber target sizes, and more accurate log positioning systems---have resulted in higher lumber recovery along with corresponding reductions in residue production (Keegan et al., n.d.). Although mill technologies and lumber recovery rates in Alaska are likely not at the same level as mills in the Pacific Northwest, recent work has assessed the lumber recovery of sawmills in most regions of Alaska (Kilborn, in press). Based on the sawing effi..