Grant awarded to hospital and schools

Mineral Community Hospital (MCH) announced today that they received an award of a $175,000 grant from the Montana Department of Natural Resources and Conservation (DNRC) towards a planned woody biomass system.

The DNRC Fuels for Schools and Beyond Program has assisted with the planning and successful implementation of several wood biomass energy projects in Montana.

The proposed system would be a partnership between the hospital and Superior Public Schools (SPS) and would replace the fuel oil and propane system in the hospital and school.

“I believe this is a win-win opportunity all the way around,” Steve Carty, CEO of MCH said.  “We are decreasing utility costs, promoting green technology, partnering with Superior School District to implement a combined utility system as well as offering students educational opportunities, using fuel from our own backyard, and creating more jobs in Mineral County.”

Carty said that they were thrilled with the amount of money they received in the grant. He noted that the University of Montana received $180,000.

“We were right up there,” Carty said.

Carty said that the scope of the woody biomass project for the hospital and SPS is about one in a half to two million dollars.

“There are a couple of other grants will be looking at and our hope is to cover half of the cost of the system with grant money,” Carty said.

A feasibility study was conducted for the project earlier this year through a grant from the Department of Natural Resources and Conservation. The study indicated that a woody biomass energy system would save MCH and Superior Public Schools (SPS) over 4.5 million dollars above costs of installation over the 30 year life cycle of the biomass system.

Both Carty and Wayne Stanley, Superintendant of SPS, said that those savings would translate into benefits. The annual energy cost savings would be applied to improve classroom instruction and improve patient care.

“From an education standpoint that’s going to open up more fronts to allow us to continue to keep small class sizes,” Stanley said. “At the high school level, that may mean continuing with a variety of classes.”

Stanley said that with the drop in the number of students that may happen over the next few years, he said that what you offer 110 students is not the same as what you offer 80 students. But the savings from the woody biomass system would allow them to keep the curriculum as steady as possible.

“Just because we drop in students, we don’t want to lose any opportunities for these kids and we want to keep our curriculum being offered as steady as possible,” Stanley said.

Carty added that right now the hospital spends about $80,000 a year on utilities. That number would drop to somewhere around $15,000 with the implementation of the woody biomass system.

“That’s money that would definitely be channeled into equipment, providers and marketing,” Carty said. “There are several things.”

When constructed, MCH and SPS will be the first group in Montana to install a single district wide heating and cooling and power system to use a renewable energy source that is produced locally.  

“The receipt of this grant shows the ingenuity of a small town and the willingness of groups to work together to achieve a common goal,” Stanley said.

Carty agreed. He noted that it is a partnership that can be done in other locations.

“With the grant money, we received more because of this collaboration,” Carty said. “The more partnerships that we can establish in these difficult economic times the better I think.”

Stanley said that the partnership made complete sense.

“My perspective is the school is the hub of the community just as the hospital serves the community,” Stanley said. “With our proximity to each other it just seemed like common sense.”

The two also are hoping that the creation of a woody biomass system will sustain the community and help keep the mills in the area more viable as the wood chips for the system are produced locally and will help retain and create timber jobs in Mineral County.

“There’s the possibility creating new jobs and keeping jobs,” Carty said. “We’re hoping maybe some of the lands will open up to logging and we can get this timber out here, the deadfall to use. Maybe if we have this system in place, the Feds will look at it a little differently.”

Stanley said that ultimately the school and hospital will be reducing their carbon footprints. He said that they will be producing 50-100 times less the emissions they are now with the system.

Carty said that they are currently working with McKinstry, headquartered in Seattle, and are in the initial planning and design stages.

“It’s nice to see something happening after all the time we’ve spent,” Carty said. “For a while there, it was one step forward, two steps back.”

Stanley agreed, noting that they started talking about the venture about a year and a half ago.

“I think it shows forward thinking on both of our boards,” Stanley said.

Once the system is put in, Carty said the system is pretty simple itself to operate. The most difficult part will be placing the underground pipes in that will run to the schools. He said that when the system is up and running McKinstry will monitor it from their headquarters. Stanley expressed also that the plant could serve as an educational field trip for students at times as well.

“The whole community has been very supportive as well as the commissioners,” Carty said. “Everyone’s been very positive across the board. I think we have to be forward thinking or future thinking or we’re going to dry up.”

Carty said they are currently investigating different funding options to cover the portion of the system that would not be covered by grant money. Options include funding from bonds through the allocation of community facility bonds and possibly a joint venture with McKinstry on a lease purchase, but nothing has been set in stone.

The hospital is also proposing the construction of a new facility and should break ground next summer.

The woody biomass system would also heat the new facility. The hospital will provide project updates on their website at www.MineralCommunityHospital.org.