LIMESTONE — Officials with Pelletco of Orono have announced the conversion of a building at the former Loring Air Force Base from oil to green heat.
Pelletco recently completed installation of a HeatPod at what used to be known as the Non-Commissioned Officers Club. Northern Girl, a food-processing operation that specializes in organically grown root vegetables and other products, is one of the current tenants in the building.
“The cost of heat is a major cost component for our operations and for Loring’s businesses, which are seeking an opportunity to be profitable and grow,” said Carl Flora, executive director of the Loring Development Authority. “As traditional heating fuel prices rose, we had to consider alternative fuels, and the availability of Pelletco’s Zero Capital arrangement made the conversion to biomass a ‘no-brainer.’”
Under the Zero Capital solution, Pelletco houses the biomass heating equipment in a HeatPod, which is connected directly to the club’s existing heat distribution system. Pelletco provides heat to the facility, operates the unit and bills only for the heat used. There is no upfront or capital cost to Loring or the tenants for the transition from fossil fuels to biomass.
High heating, cooling and other energy costs are a “cost of doing business” for any commercial park; however, according to Flora, as energy prices rise, they create a competitive disadvantage over other regions where such costs are lower. This makes it more difficult to attract new users for the large facilities and makes the post-base-closure economic recovery more difficult.
Installed during the summer of 2013, the system is projected to save the facility significant money over the next 10 years — savings that, according to Flora, will enable the LDA to create financial incentives for new and expanding businesses that may be considering a Loring location.
“With our economic development mission in mind, we are keenly aware that biomass is a local fuel,” said Flora. “A large portion of the dollars spent purchasing biomass will circulate in the local and regional economy, creating a significant economic benefit well beyond the cost savings we enjoy with lower heating costs.”
“Pelletco’s HeatPods are a great fit for Loring and others in Aroostook County,” said Jim Knight, Pelletco’s CEO. “We are really pleased to see Loring leading the way on the conversion to 100 percent sustainable local fuel. Our Zero Capital solution gives businesses and institutions that ability to get off oil, have price stability and go green while saving money immediately,” Knight added.
