UNC changes wood pellet provider for March testing

The University has encountered another obstacle in its quest to become coal-free.

Facing further delays in its testing of wood pellets as a coal alternative, the University changed suppliers after Carolina Wood Pellets was unable to resolve transportation issues, said Ray DuBose, director of Energy Services for UNC.

The second round of testing had been scheduled to begin in November, but had to be pushed back to March when the company could not secure covered rail cars to deliver the pellets, DuBose said.

The new supplier, Woodfuels Virginia, was the only other eligible choice and, as the second place bidder, will cost the University $155 per ton, marking an increase of about 7 percent, or $10 per ton, from Carolina Wood Pellets’ bid.

Carolina Wood Pellets supplied 20 tons of pellets for the first round of testing in September. The company could not be reached for comment.

“The test in September was very successful,” DuBose said, “and we’re looking forward to the next test.”

The University chose March for the delayed second round of testing because it did not want to interfere with winter energy needs such as heating and steam.

UNC selected Woodfuels Virginia as its new supplier because it was the only other eligible bidder from a bid issued during the summer.

Lignetics, which had a lower bid price but did not have proper transportation arranged in time for the bid’s deadline, was not contacted about replacing Carolina Wood Pellets, said John Utter, Lignetics’ general manager.

“It’s certainly something we would love to be a part of,” he said.

DuBose said Woodfuels Virginia should be a dependable supplier, although he said he had a similar attitude toward Carolina Wood Pellets.

Carolina Wood Pellets is a company that normally produces bags of 5-millimeter wood pellets for domestic uses such as wood-burning stoves.

UNC would have been the company’s first customer for its larger 8-millimeter wood pellets intended for more industrial uses.

“I don’t have any reason to believe that (Woodfuels Virginia) won’t be able to deliver what we need,” DuBose said.

Jacob Blondin, general manager for Woodfuels Virginia, said the company has dealt with customers of UNC’s size before. He said the company has supplied wood pellets to other universities on the east coast, but declined to name any of them.

DuBose said the failure of Carolina Wood Pellets to complete its bid did not speak to a shallow market for wood pellets. He said the bid process for wood pellet testing had made the University aware of a wider variety of suppliers.

“By purchasing the wood pellets, we are still helping the market develop in this area.”

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