Stephenville -
Newfoundland is being recognized for its potential within the peat industry to become a national leader in the development of the alternative fuel source.
Peter Telford, president and chief executive officer of Peat Resources Ltd., said the pilot plant in Stephenville is providing the fuel that could ignite the industry throughout this province.
"All the pieces are there," he said this week from his company office in Toronto, Ont. "The resources are there. Newfoundland has had a history of working with peat, going back to the 1970s and 1980s ... You have Memorial University and the College of the North Atlantic and those institutions that are producing good, qualified people to work on engineering and other aspects of this development. You also have a government that is behind it."
He also recognizes the significance of Newfoundland's proximity to Europe, and the possibility of ocean shipping to overseas countries.
Peat Resource's small-scale production facility in Stephenville has produced more than 200 tonnes of high quality peat fuel pellets. While he said that quantity is tiny in the grand scheme of things, what the company has been able to achieve with it is quite significant.
A 25-tonne batch of pellets was shipped to Corner Brook Pulp and Paper for a combustion trial in the mill's heat and power generation system.
Telford said a report detailing the handling and combustion characteristics of the peat fuel pellets confirmed their acceptability as a fuel for the mill. Consequently, Peat Resources has been invited to bid on the mill's 2010-2011 fuel supply procurement.
He said these discussions and trial attempts have been a work in progress for about a year, so he was pleased to see it finally come to fruition - especially with success.
He said negotiations of price and volume would take place in the future, but they are certainly interested in exploring it further.
"We can't be public about those details, but certainly the fact they have indicated the fuel is very acceptable and we are a potential supplier to them is very positive news for us," he said, adding such a contract could turn the pilot plant into a larger production.
Stove consumption
Another application of the company's peat fuel is in residential pellet stoves. A controlled comparative analysis of equal quantities of peat and wood pellets was carried out in Stephenville, which he said showed peat pellets ignite faster and burn 30 per cent longer. Bags of the peat pellets are currently being test marketed with consumers in the Stephenville-St. George's area.
Telford said the company is eagerly waiting to hear details pertaining to its demand and satisfaction.
"This is not something we had in our long range plans, but so many people had trouble accessing secure supplies of wood pellets for their stoves," he said, adding they were first approached locally about the possibility of this use. " ... It's an interesting sort of retail development for us here."
The Newfoundland and Labrador government's energy plan identified peat fuel resources as a component of the province's "energy warehouse." Telford said his company's advice was sought by government authorities preparing an energy innovation strategy.
The province's input was also requested for the development of a Newfoundland wetland management policy.
He said the company's relationship has always been positive and efficient with the provincial government, anticipating and hoping that leads to future success.
"I am hoping, when they put this strategy together in the future, that peat is one of the ones identified as an area government will put its resources behind," he said.
Peat Resources has permits on properties around Stephenville and St. George's, Gander and Gambo as well as the Avalon Peninsula.
"Our focus right now is Stephenville-St. George's and that's where we are concentrating our efforts, because the resources are good, the facilities are good, and it's a great area to begin.
"But, there is that potential for expanding to other spots."
