The Maine Central Railroad Mountain Division

I wonder how much lower natural gas prices are affecting the wood pellet market.

Because of the expense of subgrade piping, natural gas service is usually economical only in urban and suburban sitings. LPG and wood pellets might compete with each other for the rural and suburban-minus-natural-gas-infrastructure markets, but there would probably be only a marginal effect on their pricing from less expensive natural gas.

As FE Wood was reportedly focused on the European market, I looked at gas prices there. Extremely high ($11.50/MM Btu) compared with Henry Hub price in the low $3s here.

Cowford wrote:As FE Wood was reportedly focused on the European market, I looked at gas prices there. Extremely high ($11.50/MM Btu) compared with Henry Hub price in the low $3s here.

Figures like that make me wonder how long its going to be before we start running major export operations for US Natural Gas. Personally I think the Europeans are interested in any alternative possible to reliance on Russia for most of their natural gas.

Reportedly FE Wood's product was going to be replacing coal at a thermal plant in Britain. It doesn't seem out of the question that the Brits may have found a cheaper supply of pellets from one of the Scandanavian countries. There could also be EU tarrifs to deal with (which most of the Scandanavian countries wouldn't have to worry about).

jaymac wrote:Because of the expense of subgrade piping, natural gas service is usually economical only in urban and suburban sitings. LPG and wood pellets might compete with each other for the rural and suburban-minus-natural-gas-infrastructure markets, but there would probably be only a marginal effect on their pricing from less expensive natural gas.

And in most of Maine, it's not even available in much of the urban areas. Take a look here, and click on the map to bring up the PDF. All the very thin gray lines are essentially residential streets in Portland and Westbrook that aren't served by gas mains at all; the fact that there's no move to infill gas presence in the cities infuriates me.

"It doesn't seem out of the question that the Brits may have found a cheaper supply of pellets from one of the Scandanavian countries."

Possible, but the Trains article indicates the GA-based pellet mill serves Germany and England. I'd bet the southern states have a production cost advantage over New England suppliers.

Extremely high ($11.50/MM Btu) compared with Henry Hub price in the low $3s here.

A recent issue of The Economist talked about gas prices. Natural gas is generally delivered according to term contracts, unlike the open market for crude. The result is the huge disparity noted by Cowford. That's also a reason U.S. interests are planning on spending the money to allow for export to foreign markets.

I'd bet the southern states have a production cost advantage over New England suppliers.

They have an advantage in raw materials, but a disadvantage in shipping cost.


Quoted from:

http://biomassmagazine.com/articles/607 ... r-pellets/

While a number of advantages for exports reside in the Northeast, and Maine in particular, raw material is much more expensive in the Northeast than in the Southeast, Stewart says, by between $4 and $6 per ton. “But they do have a shorter freight distance to Europe,” he says.


Freight costs from the Northeast to Europe are favorable over the Southeast by $4 per ton, increasing to $7 per ton from the Gulf Coast, Stewart cites. The Northeast has a $4-per-ton advantage over northern Brazil, too.

With the concerns about US energy independence, high energy cost killing US business, killing the polar bears, and so on why are we shipping any energy source overseas?

MikeVT wrote:With the concerns about US energy independence, high energy cost killing US business, killing the polar bears, and so on why are we shipping any energy source overseas?

In the US wood pellets are more expensive than natural gas and can substitute for coal. In Europe natural gas is so expensive that wood pellets are potentially cheaper. At this point coal isn't really an option anymore in Europe.

The Sebago to the Sea Trail is set to open Saturday, except for one part that is still being worked on. The Press Herald had the story Wednesday.

Making the entire trek from Sebago to the Sea, as it's called, requires a 5-mile paddle on the Presumpscot River to bypass construction on the Mountain Division rail line between Westbrook and South Windham.

Once that work is finished next summer, pedestrians will be allowed to walk in the rail bed. Still, cyclists will want to stay away, said Dan Stewart, bicycle and pedestrian manager for the Maine Department of Transportation.

"It would be an unpleasant experience," he said of riding on the rail ties or trying to bike beside the tracks.

Note that some of the money for the trail went to repair the bridge over Mallison Falls Road. However, I'm concerned about the "it's OK to walk in the railbed for now" idea; it seems likely to lead to tragedy later if someone gets used to doing so and then tries it on the PAR main line.

No trail money is being used to repair the bridge. It's the remaining 2010 Bond funds for the rail line.

"Is being used"? This is still an active project? It's been over 1.5 years since the project broke ground and I don't recall seeing any reports of work activity in 2012. For a project of such economic importance, MDOT sure isn't demonstrating a sense of urgency.

MDOT is demonstrating something about money alright. How to spend it with no chance of return.

gpcog wrote:No trail money is being used to repair the bridge. It's the remaining 2010 Bond funds for the rail line.

Sorry about that!

Cowford wrote:"Is being used"? This is still an active project? It's been over 1.5 years since the project broke ground and I don't recall seeing any reports of work activity in 2012. For a project of such economic importance, MDOT sure isn't demonstrating a sense of urgency.

There appears to have been something happening; from the article I linked above:

The replacement of steel and installation of new rail ties -- a $4 million state project that was part of a transportation bond approved in June 2010 -- was expected to be finished by now. It has taken longer because the Department of Transportation decided to use some of the money to replace a bridge on Mallison Falls Road, [MaineDOT bicycle and pedestrian manager Dan] Stewart said.

The article also says the track work is due to be finished next summer.

Also, Tony Donovan and Caroline Paras will be making a presentation at the Portland Transportation Committee's meeting Wednesday, billed as "Presentation on Commuter/Freight Rail Report Updates" and apparently focusing on the Mountain Division. There's a PDF of a presentation on the Committee's homepage but it's a backgrounder with information that is unlikely to be news to readers of this board. I trust the presentation itself will be more informative.

Aside from the very justified "shooting fish in a barrell", is there ANYTHING that the line could offer besides seasonal "North Pole Express" and Tommy the "steam engine" silliness (if even that)? Could the RDC out of North Conway operate a Portland shuttle for skiers and shoppers for starters?