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Sunday, April 01, 2007

Saint Paul / Option to save plant narrows.

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posted by Bob at Sunday, April 01, 2007

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St. Paul / Options to save plant narrow
Best energy source for Rock-Tenn could prove controversial
BY JASON HOPPIN
Pioneer Press
Article Last Updated: 03/31/2007 09:23:26 PM CDT


It turns out that saving jobs, saving the city and saving the world isn't that easy after all.

A report outlining environmentally friendly options to fuel a new power plant near University Avenue in St. Paul offers no simple alternatives to "refuse-derived fuel," which is processed from garbage and which many neighbors oppose.

The plant would provide heat and possibly power to the Rock-Tenn paper recycling facility, which processes half of all the recycled paper in the state.

Since 1983, Rock-Tenn has met its huge appetite for heat by getting steam through a 5-mile pipeline connected to the High Bridge power plant near downtown St. Paul. When Xcel Energy shuts down the coal-fired plant this summer, the steam production will cease, forcing Rock-Tenn to look elsewhere for heat.

A study by Minneapolis' Green Institute outlines several biomass options for fueling a plant at Rock-Tenn, including burning yard waste, demolition materials or farmed native grasses. The report concludes that those options appear to be too expensive, in need of further study or otherwise problematic.

Local officials are deeply concerned about the fate of Rock-Tenn and the 500 high-paying jobs there. Having weathered the departures of industrial giants such as Whirlpool, 3M and now Ford Motor Co., many do not want to see another major business leave town.

The key to keeping the company in town is replacing its source of steam heat. But doing that is like solving a compli-cated puzzle.

Rock-Tenn, the St. Paul Port Authority and District Energy - the downtown energy utility that cools and heats much of the area by burning yard waste - have signed an agreement to explore building a power plant on Rock-Tenn's 43-acre campus using renewable technologies. The Port Authority would own it; District Energy would operate it; and Rock-Tenn would be the major customer.

But in the report, none of those technologies emerges as a clear-cut alternative to refuse-derived fuel (RDF), proving there is no magic bullet to save Rock-Tenn.

"To get an economically feasible plant working at Rock-Tenn, you have to have a certain amount of RDF," said Anders Rydaker, the head of District Energy, who has reviewed a draft of the report.

That likely will cause a fair amount of teeth gnashing in the neighborhoods that have grown up around Rock-Tenn since it was built in 1908. The Green Institute's report was paid for by Ramsey and Washington counties, Rock-Tenn, District Energy, the Port Authority, the city of St. Paul and Eureka Recycling and was intended to counter an earlier county study.

Many neighbors do not want refuse-derived fuel burned there, and two of the three City Council candidates running to represent the area have come out against it. While backers say it doesn't smell, there is a fear that is does, since it is processed from household garbage.

Xcel Energy operates two refuse-derived fuel facilities in the state, one in Red Wing, Minn., and one near Mankato, Minn. A spokeswoman for the company said no complaints have been received in connection with either of those facilities.

But that may not be enough to ease the fears of Rock-Tenn's residential neighbors.

For years, the plant has been a good neighbor, even striking a "good neighbor agreement" with surrounding community groups. But the loss of its steam heat because of Xcel Energy's High Bridge plant converting to a natural gas facility presents options that no one, not even Rock-Tenn, likes.

For one thing, until a new plant is built, Rock-Tenn will be allowed to burn fuel oil to fire its plant. It has always had the permit but rarely has it fired up its boilers. Rock-Tenn's permit allows it to pump almost 300 tons of particulate matter into the atmosphere.

That's why everyone's searching for a better option. But making it work is proving to be a challenge.

The Green Institute's report notes that wood waste, which District Energy uses to fire its downtown plant, is a limited source. Construction and demolition waste is in need of further study because the availability and the cost of separating materials contaminated with lead and arsenic from burnable materials is unknown.

Other options, such as burning farmed grasses, have not been tried and likely would prove more expensive than burning natural gas, which is itself becoming extremely pricey.

"I think there are some options out there," Rock-Tenn plant manager Jack Greenshields said. "Whether it's a cost-effective alternative to RDF is another question."

It's apparent that using refuse-derived fuel is, at the very least, going to take some convincing. While the state officially considers it a renewable resource, it's another matter at the street level.

"The neighbors don't seem to consider that a renewable source," said Justin Eibenholzl, an environmental coordinator for the Southeast Como Improvement Association, a Minneapolis neighborhood group. "If that's going to be considered, I think there's going to have to be a lot of selling."

Whatever the final solution is, it likely will be an outcome that represents a delicate balance of community concerns, technological possibilities and economics. But one thing everyone seems committed to is saving Rock-Tenn.

Not only does it provide high-paying jobs and, on a daily basis, recycle 1 percent of all the paper recycled in the United States, but the company also pumps $75 million into the state's economy in spending on goods and services, the Port Authority's Lorrie Louder said.

"We are not talking small potatoes. We are talking about a huge economic benefit to the state of Minnesota," Louder said.

Jason Hoppin can be reached at jhoppin@pioneerpress.com or 651-292-1892.

Rock-Tenn

Built: 1908

Jobs: 500

What it does: Processes half of all recycled paper in Minnesota. Uses heat to turn paper and cardboard into pulp.

Losing steam: A source of cheap steam goes away this summer when Xcel Energy shuts down its riverfront coal-fired plant.

Looking for heat: The firm is considering building a heat plant fired by "refuse-derived fuel."

Refuse-Derived Fuel

What it is: Processed household garbage.

Where it's used: Xcel Energy plants in Red Wing and near Mankato and a Great River Energy plant in Elk River.

Odor: Some worry about the smell, but backers say it does not stink.

Pros: Takes what would ordinarily be headed for landfill and uses it to produce energy.

Cons: Some environmentalists say waste should be reduced, not counted on to produce energy.

8:49 AM  

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