November 24, 2010 -The BC Bioenergy Network ("BCBN"), a provincially-funded, industry led network supporting the growing bioenergy sector in British Columbia, is providing funding of $200,000 for each of two Terasen Gas ("Terasen") led bioenergy projects in the province.

These projects follow the October 2009 Memorandum of Understanding between BCBN and Terasen to work together to further the development and commercialization of bioenergy technologies in British Columbia. 

The first investment provided up to $200,000 or half the costs of a Terasen-led feasibility study for the establishment of an innovative community energy system in partnership with the City of Quesnel.

The project involves using an existing hog fuel-fired energy system at a West Fraser Timber (WFT) sawmill; a proven low grade heat recovering system to generate electricity and heat; sale of electricity to BC Hydro, a hot water distribution system for heat sales to 14 client including the City; and back-up natural gas boilers.

The feasibility study will be focused on establishment of investment grade financial forecasts, confirmation of ownership and operating structure, and creation of legal agreements. Should the project proceed, the grant will be repaid to BCBN.

The second project is for a $200,000 grant for a proposed biogas project, currently pending British Columbia Utilities Commission (BCUC) approval, which would capture waste methane at the Columbia Shuswap Regional District's (CSRD) Salmon Arm landfill, upgrade it to pipeline quality natural gas, and deliver it into the existing Terasen Gas distribution system.

If approved by the BCUC, the project will be implemented with full cooperation of the CSRD, who will have an operational landfill gas capture system in place by the end of 2010. The facility would produce approximately 26,000 gigajoules of natural gas per year, enough to heat and provide hot water to almost 300 homes. It will also replace a portion of Terasen Gas' traditional natural gas with biogas, a renewable alternative energy source.

The BCBN funding will also leverage Terasen's investment in an upgrade system based on technology developed in British Columbia by Xebec Technologies Inc. Total project costs for the upgrading portion of the project are $1.35 million. When plant commissioning, site work, and system main re-enforcement are included, the overall project costs total $1.97 million. 

Terasen, in cooperation with their project partners, have also agreed to work with the BC Bioenergy Network to share the environmental and economic results of the Salmon Arm project by establishing Collaborative Development and Demonstration Centres.

Stakeholders will be encouraged to participate in the projects to advance best-in-class solutions and improve and strengthen these projects over time. The final business arrangements for the Salmon Arm project will be subject to an application currently being reviewed by BCUC.

About the BC Bioenergy Network

Established in April 2008 with a $25 million grant from the BC government, the BC Bioenergy Network is an industry-led association that acts as a catalyst for deploying near-term bioenergy technologies and organizing mission-driven research for the development and demonstration of sustainable to build a world class bioenergy capability in BC. For more information about the BCBN, visit www.bcbioenergy.ca