Since the last quarterly update,
there have been several developments on this Project. A number of
financial reasons related to the Softwood Lumber issue, the soft lumber
market, the rising value of the Canadian dollar, and the increased scope
and the cost of the Project, caused concern for Downie. Other issues
were delays in obtaining needed grants and other financing combined with
lingering technical concerns about the project’s reliance on virtually
100% cedar residue as fuel. An offer from Riverside Forest Products
provided an alternative that has less risk for Downie and accordingly,
Downie is entering a contract with Riverside to supply its wood residue
to the Armstrong Cogeneration plant. The Armstrong plant is an existing
“utility” scale power plant that has an electrical generating capacity
of 22 Megawatts and requires 220,000 tonnes of wood residue annually
[100,000 more than Riverside produces from its own operations].
Riverside had an understanding from
Downie that the planned Revelstoke Project was going to provide a
disposal opportunity for all locally generated wood residue and
Riverside has agreed to take all of that residue. At the same time,
Downie reserved the right to retain enough fuel to be combusted in a new
state of the art facility that would provide low-pressure steam and hot
water for operating the dry kilns and energizing the Community Heating
often the beginning of great enterprises.”
Demosthenes (384 BC - 322
This new “Heat Only” project
will be 100% City owned through the Revelstoke Community Energy
Corporation [RCEC]. FVB Energy Inc., consultants to the City, is
currently refining the business case. Negotiations on the detailed
aspects of the arrangements between RCEC and Downie are proceeding.
Preliminary estimates reveal more favourable economics with a shorter
payback time than that of the full-scale cogeneration project. FVB’s
conclusions should be finalized by mid July.
The “Heat Only” Project will
meet BC’s environmental standards, as did the original project.
Electrostatic precipitators on the stack will play a role in the control
of emissions and there will be no more fly ash. It will take 12 to 14
months to complete the project from the time that a firm decision is
made to proceed. Stay tuned!
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