First Wood Chip-Fired Biomass Heating System in New Mexico

Wood chips used as fuel saves school money, educates students

The first large-scale, biomass-fired heating
system utilizing wood chips from small diameter tree thinning projects in
New Mexico is taking place at a school in Gallina in Rio Arriba county. A
ribbon cutting ceremony for federal, state and local dignitaries is
scheduled for Tuesday, March 29, 2005 starting at 8:30am with opening
remarks from U.S. Senator Jeff Bingaman. The event will take place at the
Coronado High School Gymnasium in Gallina, New Mexico.

"We are very excited about this project and grateful to all who made it
happen," said Robert Archuleta, Superintendent of Jemez Mountain School
District. "Our schoolchildren benefit because our teachers have added this
to the curriculum so they are learning about renewable energy. And our
citizens benefit because it is less expensive to operate – more money that
we can put back into the classrooms."

Faced with soaring propane costs for heating, the Jemez Mountain School in
Gallina, a rural K-12 school with approximately 400 students, was first
awarded a $450,000 Forest Service-Economic Action Program grant in 2001 to
design a biomass heating system for the campus. The grants provided under
the National Fire Plan were established to reduce the risk of wildfire and
improve forest health.

"This is a model project for small diameter utilization, and also a model
for community and interagency partnerships in rural New Mexico", said
Gilbert Zepeda, Santa Fe National Forest Supervisor. "If proven sustainable,
it will open the door for similar renewable energy projects throughout New
Mexico and the Southwest.

The Jemez Mountain School District contributed the building and $183,000.
Last year, the New Mexico State Legislature appropriated an additional
$450,000 to the New Mexico Energy, Minerals and Natural Resources Department
Energy Conservation and Management Division toward the project. In the
summer of 2004, Rio Rancho-based Energy Controls, Inc. contributed the
remaining third of the total $1.6M project cost through the use of an energy
performance contract. Other contributors include La Jicarita Enterprise
Community, Hurd Brothers Logging and Cordova Logging.

"This is a giant first step in creating an economic demand for small
diameter wood in unhealthy forests," said Joanna Prukop, Cabinet Secretary
for the Energy, Minerals and Natural Resources Department, "And it is also
an excellent source of new jobs in rural New Mexico communities."

The system is installed and completely retrofitted into the school’s
existing propane heated system, which may be used as a back-up system. Wood
chips are being transported to the school from a private logging company in
Chama under a Forest Service grant awarded in 2001 to supplement the
project. This will continue for an initial 18-24 month period. In the
future, the Jemez Mountain School District will look to local community wood
products producers to provide the small diameter material (fuel) from the
surrounding Coyote Ranger District of the Santa Fe National Forest. The
Jemez Mountain School will utilize approximately 400 tons of wood chips
annually. Having material utilized locally minimizes transportation costs
and addresses hazardous fuel reduction needs on the district.

CONTACT: DOLORES MAESE 505-438-7877

REUBEN MONTES 505-438-7892
LAURA J. MULRY Energy, Minerals and Natural Resources Department
505-476-3226