The Haines Economic Development Corporation (HEDC) recommended that the borough purchase a wood chipper this year, even if long term plans for a biomass boiler fall through. In a report compiled by HEDC executive director Margaret Friedenhaur, the corporation says that a local wood chipper business in Haines would support the community’s economic development.
For several years, the borough has been weighing the option of using wood-burning biomass boilers to heat public buildings, replacing diesel fuel. The Alaska Energy Agency granted the borough $1 million to purchase a biomass boiler, and in August 2016, the USDA granted Haines a $92,136 Rural Business Development grant “to purchase an industrial wood chipper and log splitter,” to create fuel for the boiler.
In a biomass energy design report conducted by Wisewood Energy Corporation and submitted to the borough in April, the economic advantages of having a local wood chipper enterprise in conjunction with the biomass project became clear. Wisewood found that a local chipper would help retain between 73 and 77 percent of the total operating costs within the Haines economy. But the boiler is one to three years away from becoming operational, and in order to use the separate wood chipper grant funds, the borough needs to make a decision on the chipper within the next three months. If a chipper was purchased this year, the borough would have a few months to find an individual or local business to lease it to.
HEDC recommended that the borough utilize USDA grant funds to buy a wood chipper before the boiler project is completed, and even in the event that the boiler project is not completed. HEDC found that in both scenarios the wood chipper would “support the development of small and emerging private business enterprise in our community.”
HEDC’s report indicated two assumptions made in creating its recommendation: they used the wood chipper quote from Vermeer Northwest of about $100,000, and identified Haines Industrial Supply as an initial lessee.
The report found several potential uses and markets for the chipper, and possibilities to lease the chipper from the borough or through a local business. “Haynes Tormey, manager of Haines Industrial Supply, suggests there is a local and regional market for renting out the chipper, primarily for land clearing projects,” the report says. Tormey declined to comment.
HEDC also looked into the feasibility of a wood chip market for the purposes of gardening, playground maintenance, and composting, but said that there was little demand for wood chips in those communities. The report found market potential, and said that the risk to the borough in acquiring the chipper was low.