Source: BRAGDON FARM submitted to NRP
HAY FUEL LOGS: TRANSFORMING WASTE HAY INTO AN ALTERNATIVE HEATING SOURCE FOR MAINE AND BEYOND
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
1006960
Grant No.
2015-33610-23675
Cumulative Award Amt.
$100,000.00
Proposal No.
2015-00335
Multistate No.
(N/A)
Project Start Date
Jul 15, 2015
Project End Date
Mar 14, 2016
Grant Year
2015
Program Code
[8.12]- (N/A)
Recipient Organization
BRAGDON FARM
50 HANNAFORD HILL RD
VASSALBORO,ME 04989
Performing Department
(N/A)
Non Technical Summary
Small to mid-size farms across America now face declining profits and a higher volume of agricultural residuals due to increasingly erratic weather patterns. Farmers are seeking innovative ways to create new revenue streams and adapt to a changing landscape. Bragdon Farm's Phase I SBIR research is committed to creating a hay fuel log and scalable business model that can help ameliorate these issues. Developed as an alternate heating source for use in existing stoves and boilers, the hay fuel log will be made from waste hay which would otherwise have little or no market demand but which routinely accounts for 20-25% of a hay farmer's annual harvest. Proposed research will determine the hay fuel log formula and manufacturing specifications that are optimal for use in existing stoves and boilers. A value chain strategy will be developed, from supply side to demand side, for a regional business model that can be replicated in rural communities throughout the U.S. The commercialization of hay fuel logs will create a new market for waste hay and also stimulate rural economies by creating new jobs, restoring defunct manufacturing space, and adding to the tax base of local municipalities. The availability of a locally-sourced and manufactured renewable energy fuel will help rural communities become economically independent and more energy independent while contributing to environmental sustainability.
Animal Health Component
50%
Research Effort Categories
Basic
25%
Applied
50%
Developmental
25%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
51101993010100%
Goals / Objectives
The overall goal of the proposed Phase I effort is to (1) develop the hay fuel log as a cost effective alternative heating source and (2) develop its associated regional business model.Objective #1: Determine the hay fuel log formula and manufacturing specifications that are optimal for use in existing stoves and boilers.Objective #2: Develop a thorough value chain strategy, from supply side to demand side, for a regional business model that can be replicated in rural communities throughout the United States.
Project Methods
Task 1: Research and evaluate existing specifications and warranty restrictions for current market biomass/wood stoves and boilers used for home, institutional and industrial heating.1(a) Identify current market biomass/wood stoves and boilers that are used in Maine and the New England region for home, institutional, and industrial heating.1(b) compile a matrix of all technical specifications and warranty restrictions in order to identify any barriers to entry for the hay fuel log and ensure the log is manufactured to any required specifications.Task 2: Expand existing relationships with industry experts.2(a) Conduct interviews with stove and boiler manufacturers and industry experts to gain insight and information that may guide prototype development with respect to burn characteristics, safety, EPA standards, testing, target market, and other considerations.2(b) Prepare written report of the interview results.Task 3: Manufacture and test prototype hay fuel logs.3(a) Using a heavy-duty, commercial briquetting machine that employs extremely high pressure and heat, manufacture and a log that requires no additives by adjusting moisture content and log density.3(b) Using the same briquetting machine, manufacture logs that use a small amount of potato starch binder, as well as logs that incorporate additives to improve burn characteristics.3(c) Test prototype logs manufactured in (a) and (b) with lab assistance provided by Jotul North America. Characteristics to be tested in Phase I include: BTUs/pound, burn time, ash quantity (volume).3(d) Summarize results in a table for prototype design that indicates variations in density, moisture and burn characteristics.Task 4: Determine the parameters that will inform supply chain strategy.4(a): Making use of Bragdon Farm's existing supplier network, identify the size and geographic location of the regional hay supply in central Maine as well as supply options available for any other raw materials determined by the most successful log formulas.4(b): Critically evaluate estimated purchase price from suppliers and shipping costs to determine the geographic reach of the optimal supply network. Conduct a cost/benefit analysis to determine how much to pay for waste hay while balancing the benefit to suppliers (and Bragdon Farm).4(c) Based on above, develop a strategy with a timeline for expansion from internal sourcing to the optimal supply network.Task 5: Research competitive pricing strategies for the hay fuel log.5(a) Identify the demand chain in Maine and the northeast region, identifying key distributors and appropriate retail customers such as hardware, feed stores, and fuel dealers.5(b) Analyze competitor pricing, incorporating insights gained from experts in Task 2, and the cost to manufacture the optimal hay fuel log developed in Task 3.Task 6: Identify the optimal value chain strategy.6(a) Compile and analyze the results of the previous tasks to synthesize an overall value chain strategy.

Progress 07/15/15 to 03/14/16

Outputs
Target Audience: Nothing Reported Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals?We are in hopes to have test results back shortly so we can begin making any needed adjustments to our production process as well as begin incorporating the results into our marketing and shating them will our social media followers to get feedback.

Impacts
What was accomplished under these goals? Wehave created prototype haylogs and are currently being tested for use in wood stoves and wood boilers. Wehave also created a five phase marketing/sales startegy to penetrate the New England market. We are still trying to stream line the production process to determine a scalable business model.

Publications


    Progress 07/15/15 to 03/14/16

    Outputs
    Target Audience:Our target audience was primarily comprised of low to middle income households in the colder climates of the United Sates. Foreconomic reasons, this demographic has the propensity to utilize wood or wood by-products as a means of residential heating. The predominent wood based fuel is cordwood, which is readily available and very cost effective. The haylog market target traditional cordwood users that are likely to explore alternative technology for one or more reasons. As an example, the actual amount of wood fuel required during a heating season may be difficult to estimate. Many household do not purchse adequate supplies; since dry cordwood is very scarsein late winter / early spring theyare forced to resort to more expensive heating sources for the balance of the heating season. Manufactured products such as the haylogs can be purchased incrementally and consistantly throughout the heating season, thus minimzingsome additionsl costs related to anticipated supply and demand. Other users such as older or disabled persons may benefit from some of the convenience factors. Haylogs can be delivered on a pallet, and stored neatly and safely within a garage or covered area. They are clean, easy to handle, andinsect-free. An adequate supply of haylogs may be kept inside a dwelling without worriesof insect infestation, mold or other maladies inherent incordwood . Additionaly, since haylogs contain roughly 150% of BTU's by weight as compared with cordwood, haylogs have the capacity to extend the burn time of theappliance, and therefore requireless handling. Research during this project also confirmed that the air quality associated withhaylog combustion is vastly superior to that of traditional wood products. This will allow additional target markets of environmentally concious persons and also persons with some level of respiratory distress. We intend to disseminate information regarding the advantages of haylogs by offering informal traing and education services to distributors of existing wood fuel products, with the intent that they will conveyinformatiion directly to their existing customer base via digital media or POS advertizing. Changes/Problems:There were no significant chages in our approach to this study. All aspects of the testing, production and market development remainedwell within our projected parameters. What opportunities for training and professional development has the project provided?The project has provided technical datathat will be useful in the training of bio-mass retailers. The information complied during this project can readily be conveyed by the retailers to the consumers since the essence of the results are quite simple;the substitution of haylogs for traditional wood fuels has immediate and lasting positive effects on both the environment andconsumer health. Biomass retailers can become better informed regarding the science behind this innovative product, and develop a better understanding of the environmental effects of the combustion process, How have the results been disseminated to communities of interest?Our research results have been disseminated directly to wholesale and retail suppliers that already have extensive, existibg customer bases. As in any new, innovative product the major barrier to entry is gaining the trust of the consumer. This can best be achieved through the leveraging of existing customer relationships to minimize the perceived risk associated with a new product purchase. As market penetration increases, we are in hopes that the environmentally concoiuos consumer will advocate the product as benefical and socially responsible. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

    Impacts
    What was accomplished under these goals? We were successful in achieving both of our major goals duringthe project period. We tested several formulations of haylogs with varied amounts of added starch as a binding agent. Production test runs were conducted with potato starch added at levels between zero and ten percent by volume. Test results were conclusive in that the haylogs containing minimal amounts of added starch (1% - 2%) yield superior overall performance regarding combustion, aestetics and durability. Haylogs produced BTU's of approximately 125% to 160% in relation to traditional dry cordwood species, thus proving the concept of extended burn time for heating appliances. The addition of small amounts of potato starch increaded the binding characteristics, or tensile strenght of the finished material, while providing an attactive luster to the surface of the log. The logs performed exceptionally well regarding durability, and therefore will adequately handle and ship without extrodinary protection. Production rates and costs were within the estimated parameters thus indicating a competetive retail and wholesale cost structure. Regarding Objective #2, we were successful in developing a comprehensive value chain which should optimize timely distributuin of the haylogs. Inboundlodgistical studies identified adequate, long-term predictable supplys of waste hay available at acceptable delivery costs. The supply chain included significant capability of "off-season" or winter storage with minimal additional associated costs. The other consituant raw material ispotato starch, which is in ready supply at all times during the calender yearat very stable price points. Our analysis of outbound lodgistics concluded that wholesale distribution to existing bio-mass retailers was clearly the optimal disposition method. It was essential that bulk shipping was required in order to be cost competitive, and new product market penetration would be best achieved by retailers with an existing customer base. This business model is very simple in nature and may be readily duplicated in rural communities throughout the United States. This approach should allow maximum scalability within a relatively short time frame. The substition of haylogs for traditional bio-mass products such as cordwood will have an immediate positive effect from both the environmental and economic standpoint of rural communities. Significat reductions in "greenhouse" gases and other particuate-type air pollutants are an immediate result of burning haylogs rather that cordwood. Some combustion gases are reduced by up to 90%, and the overall carbon footprint of the haylog is virtually zero. In fact, since more CO2 is absorbed by the regrowth of the hay supply that is produced during combustion, burning haylogs may actally help in the reduction of greenhouse gases in the atmosphere.

    Publications