Not 'FIT' to harvest: new Ontario biomass energy group to lobby for better incentives.

• Author: Ross, Ian
• Position: GREEN REPORT - Feed-in tariff

Some small forestry-related companies are banding together to make a case to the Ontario Power Authority (OPA) to offer greater incentives to get the bio-economy off the ground.

The McGuinty government has created a great inducement to lure international solar and wind energy developers to Ontario with strong feed-in tariff (FIT) rates.

But potential biomass harvesters and suppliers are feeling left out in the cold.

After a meeting of more than 20 companies in Renfrew in late November, the Ontario Biomass Energy Association, has been formed.

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The current FIT rate for biomass projects is 13.8 cents per kilowatt hour for renewable energy projects of 10 megawatts.

Harvesters and storers of wood waste want to see the FIT rates boosted to contract prices of 20 cents.

Paul Allaire, a special project coordinator for Villeneuve Construction in Hearst, said the group is still in the fledgling stages with no president and no website, but intends to grow in numbers in the months to come.

"Definitely we're trying to unite the group throughout Ontario to promote biomass and get proper feed-in tariff rates for projects."

Allaire said energy in Northern Ontario is a key issue for business to remain cost competitive and long-term solutions are needed. This means communities need to make their own fuel, like biodiesel, from wood fibre.

"We need to have that vision or we're not going to advance. We need subsidies somehow to get there."

In comparison, Ontario's feed-in tariff prices for on-shore wind projects is 13.5 cents, while offshore is 19 cents. Solar photovoltaics range from 44.3 cents to 80:2 cents depending on the scale of the development, and whether it's ground- or roof-top-mounted.

Allaire said companies like Villeneuve already know the cost of harvesting and transporting biomass, hut the association needs to pool their data before they make their case to the OPA to review the rates.

"At 13.8 cents, it's not profitable to go out in the province and get the biomass."

Allaire said a higher FIT rate would help attract investors and help revive the struggling forestry industry by finding local and regional markets for wood residuals like chips, bark and sawdust.

Allaire's company, Villeneuve Construction, along with the Town of Hearst, has long been investigating the economics of converting wood waste into new value-added energy opportunities.

Villeneuve and the town are considering at a combined heat and power district plan for...