In meetings last year, the Energy Task Force extolled the virtues of biomass as a coal alternative — but not without voicing concerns.
Some members of the task force worried that companies providing wood pellets would clear forests to produce them, nullifying any sustainable improvement.
It was for that reason that the bid for the first biomass experiment, wood pellets, recommended suppliers have sustainability certification from organizations like the Forest Stewardship Council, the Sustainable Forestry Initiative and the American Tree Farm System.
But none of the three companies that submitted offers had any kind of certification.
Carolina Wood Pellets was UNC’s original supplier and least expensive qualifying bid. It supplied pellets for a 20-ton test in September but later encountered difficulties securing proper railcars.
Lignetics, despite having the only bid cheaper than the price UNC pays for coal, failed to qualify for the same reason.
Steve Smith, former CEO and owner of Carolina Wood Pellets, filed for Chapter 7 bankruptcy Feb. 21 without notifying UNC. The University was then forced to change suppliers to WoodFuels Virginia, a move that increased costs by 7 percent.
Carolina Wood Pellets and Lignetics both said their use of recycled wood products from third parties for their pellets qualify as green practices. Neither company has been certified, and both were unable to verify the sustainability practices of their wood sources.
“Do I actually go out and research what they’re doing?” said John Utter, general manager for Lignetics. “No.”