The closure of major pulp mills in Sitka and Ketchikan in the 1990s ended large-scale, wood-fired power generation in Alaska. However, the price volatility of oil has raised interest in using sawdust and wood wastes for lumber drying, space heating and small-scale power production.
In 2010, the Tok School installed a chip-fired boiler, displacing approximately 65,000 gallons of fuel oil annually. Sealaska Corporation also installed the state’s first large-scale pellet boiler at its headquarters in Juneau in 2010. Since these two demonstration projects were operational, 50 additional projects have started up in the state using cordwood, chips and pellet technology. In 2017, the City of Galena started operating a chip system that is heating 14 Galena Interior Learning Academy (GILA) buildings, displacing more than 200,000 gallons of fuel oil annually. At the end of 2018, the Southeast Island School District on Prince of Wales Island had cordwood heating systems installed at all eight of its schools. Once schools have an affordable source of heating, they have installed greenhouses to grow food for school cafeterias and to expand math and science curriculum with hands-on learning. Students are learning math and chemistry as they grow lettuce in their school greenhouses, and students are eating fresh vegetables in their cafeterias.