Qi BioEnergy

NewEarth Renewable Energy, Inc. has created ECO Clean Coal, an innovative 100% biomass fuel that burns without emitting smoke, as demonstrated here with a smoke detector, set off by an ordinary wood pellet, but not by the burning ECO Clean Coal pellet.

ECO Clean Coal can be either co-fired with coal or totally replace coal at any coal-fired power plant worldwide, without any retrofitting, loss of productivity, or service to customer. It is a pound per pound replacement for coal. It is the most compatible biomass fuel to burn with coal.

BioCoal™ Fuel
Made from biomass, in pellet form, that has all the
positive qualities required to finally help solve our
energy and pollution problems. BioCoal™ Fuel is
a clean burning product that was once wood, but
processed in a unique way that removes virtually
all the water and polluting volatile organic
compounds before combustion. The wood is
processed in a proprietary manner that changes
the chemistry and structure of the wood into a
friable material that has a high carbon content
that can be used with coal or to replace coal.
Every ton of carbon in BioCoal™ Fuel used will
keep 3.6 tons of carbon dioxide from fossil fuel
out of our air. BioCoal™ Fuel is resistant to water
absorption and can be stored indefinitely without
decay.

A small, economically viable pellet mill produces 25,000 - 35,000 tons per year. If the local market expanded from 1 percent to 7 percent (8,400 households), the small mill capacity would be matched. Market expansion will take place as the cost of conventional energy increases, but will be slow in the near term without a strategy. If steps are not initiated now to encourage and capture a growing market, it will be filled by a pellet plant from outside the region.

Here are some safe bets:

Non-renewable fuel prices will remain volatile with increasing spikes due to political and natural disruptions.

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Renewable fuel sources like wood, solar, geothermal will grow in use and affordability.

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There will be a market shake-out in the pellet industry over the next three years due to a lag between production

• capacity and market.Given current and projected demographics within the Four Corners region there is room for one pellet mill of moderate size (25,000 to 35,000 tons annually). We recommend a phased strategy beginning in 2008 with strategic commercial and residential market development. Construction of the plant will be triggered by capture of at least 5 percent of the residential market. The estimated investment for all phases is between $7 million and $10 million. Investment in this proposal will place the Ute Mountain Ute Tribe in a position to capitalize on the mill opportunity and other related business ventures as well as benefit the residents of Indian Country.

Strategic Steps:

Build bag and bulk pellet delivery routes in up to 300 mile loops linking together towns in a 100 mile radius

• thus servicing homes, hospitals, schools, offices and other buildings in Indian Country and high elevation communities.Make all public buildings “Native Wood Ready” in the design phase and invest in pellet boiler retrofits for those

• in the “green zones” on the map.Initiate a subsidized pellet stove installation program for eligible families within the “green zone.” The program

• can be modeled after the EPA’s Great American Woodstove Changeout program. See this site for information on EPA’s program http://epa.gov/woodstoves/how-to-guide.html Decent stoves installed cost approximately $2500. The program could offer a $1000 subsidy and $1500 zero interest loan. The program achieves immediate benefits regarding heating bills, air quality, and market build-up. Utilize Forest Energy Corp as the bag and bulk pellet supplier while markets are stabilizing. Either buy, store,

• and disperse pellets from a centralized location on tribal land or arrange for delivery by Forest Energy Corp. Propane carriers can adapt to carry pellets as well. If silos are added to the installation program, delivery costs can be cut in half and thus consumer prices.

Forest Energy Wood Pellets are made from 100% recycled wood and biomass residue. In our manufacturing process, the wood residue (raw material) is screened, dried to a specific moisture level, and ground to a uniform size. Then, a finely balanced blend of sawdust is conveyed into the pellet mills where it is compressed and formed into a very dense and consistent wood pellet. The ending result is a highly efficient source of thermal energy for consumers.

Energex Pellet Fuel, Inc. operates the largest wood pellet plant in North America with an annual capacity of over 120,000 tons. Using a state-of-the-art process control system, automatic packaging facility, and environmental controls, the Energex plant has the capacity to bag 500 tons per day and hold thousands of tons in inventory to service peak demand periods.

Energex people are dedicated to getting product out on time with an offer of next day delivery to most destinations.

In 1993, Energex Pellet Fuel, Inc. acquired the Lac-Mégantic plant which started in 1982 to produce industrial wood pellets. After purchase of the plant, Energex added a packaging facility to bag premium grade wood pellet fuel and completed a total renovation, rehabilitation, and modernization of the plant facility.

In 2000, Energex merged a West Virginia pellet plant with another in Mifflintown, PA.  Energex American, Inc. now has a production capacity of over 50,000 tons per year.

1. Home or Business Delivery of Pellets in Bulk
Much like oil, gas, or propane
Convenient - you don’t need to be there

2. Sufficient Storage
1 - 3 deliveries a year
Attractive and/or unobtrusive

3. Fully Automated Central Heating System
Boilers and furnaces support existing distribution system
Automated feed system
Self-ignition and self-cleaning
Safety that is superior to propane or gas

4. Easy Installation/Service
Simple venting
Simple, once-a-year maintenance includes ash removal

National Pellet Sales