JOHN DAY Blue Mountain Hospitals new wood pellet boiler should go online late this winter, making the John Day facility a major customer for the new pellet plant at Malheur Lumber Company.

    We should be able to use it at least for the end of this heating season, said Bob Houser, hospital CEO.

    The pellet boiler will be the primary source of heat and hot water for the hospital campus, with backup heating available from the old oil-fueled system.

    Houser said the new boiler will be more than adequate for the hospitals heating needs and it will save the hospital district money.

   Houser said the hospitals heating bill has run about $100,000 a year in recent years. A3 Energy Partners, a consultant on the pellet plant, estimates that the pellet system will cut that cost by about 50 percent, he said.

    Houser said the hospital board was enthusiastic about the savings, which will free up funds for services and equipment upgrades needed by the hospital.

    Thats money that wont be going up the chimney, he said.

    The project has the added allure of using a local, renewable energy source.

    The Malheur Lumber pellet plant wasnt even on the drawing boards, though, when Blue Mountain Hospital officials first looked into the possibility of a biomass heating system.

    We were aware that, sooner or later, wed have to upgrade our heating system, Houser said.

    The existing systems three oil-fueled boilers includes two that are nearly museum pieces they date back to the old hospital, circa-1958, and burn heavyweight oil. 

    When the new hospital was built, updated regulations kicked in and the district was required to have a second heat source in place. So the hospital added a third boiler also using oil, but a more efficient lighter weight product.

    A few years ago, hospital directors began looking at options for replacing the older boilers. Houser said the board felt propane wouldnt be cost-effective for the hospital, and natural gas isnt available here.

    They turned to pellet fuel. Harney District Hospital had installed a pellet boiler in 2007, and officials there said it was trouble-free and saved them money.

    Houser said that when Blue Mountain Hospitals pellet boiler planning began, the likely pellet source was Bear Mountain Forest Products in the Columbia Gorge.

    The approval of the Malheur Lumber pellet mill with Bear Mountain as a partner made the hospitals pellet boiler an even better fit, offering the prospect of a close supply with less shipping.

    The hospital also got a boost from the Oregon Department of Energy, which approved $40,000 from the American Recovery and Reinvestment Act for the boiler project.

    Today, the project is well in hand. The slab has been laid for the boiler, with underground piping installed to the boiler room. The containerized pellet boiler will be delivered and set up in late February or early March.