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Silver Bay Biomass Binary Power Co‐generation Findings Silver Bay is located 55 miles up the north shore of Lake Superior from Duluth and adjacent to the Superior National Forest. The town was built to accommodate employees of Northshore Mining, currently owned by Cliffs Natural Resources (CNR). Cliffs is a good employer, unfortunately the plant’s reliance on natural gas for pellet manufacturing and the cyclic nature of iron ore makes the community vulnerable to economic hardship when the plant is idled. Silver Bay is looking at economic diversification through the development of an Eco‐Industrial Park (SBEIP). The park’s only current business, the AmericInn Lodge and Suites current uses about 80 kW of electricity and about 0.6 mmBtu/hr of natural gas for heat at a cost of about $50,000 and $22,000 per year respectively. Associated current Carbon Dioxide (CO2) emissions are about 900 tons per year (tpy). District Heat, also known as centralized heating, is a time tested heating method, tracing its roots back to Roman bath houses. The US Naval Academy at Annapolis began a steam district heating system service in 1853 (Wikipedia, “District Heating”). Europe has been aggressively promoting and installing district heating systems since the early 1950’s. Here in the US, historical low cost fossil fuels and resistance to co‐generation by regulated public utilities has slowed adoption of district heating. Instead of having multiple heating units serving individual buildings, a centralized district heating plant supplying steam or hot water through a network of pipes can realize higher thermal efficiencies and reduced fuel costs while facilitating the co‐generation of electricity by combining loads, allowing the economy of scale to make turbine generators financially attractive. Co‐generation electricity is about 75% fuel efficient compared to about 37% fuel efficiency from utility generated condensing power where heat is wasted through cooling towers or discharged into rivers or lakes. In the US, district heat has been predominantly from fossil fuels, and many older systems lack co‐generation. Some of the growing interest in district heat is a result of the efforts of the International District Energy Association (IDEA) and some of the renewed interest in co‐ generation is due in large part to the US EPA Combined Heat and Power (CHP) Partnership. Whatever the source, district heat and co‐generation is an efficient use of fuel. 8PDF Image | Biomass Binary Power Co-generation
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