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As with most lumber mills, the "waste" wood is reused. This refers to the sawdust, chips, bark, and other process residues. In this case, this waste is used to fuel a boiler. The boiler produces steam, which is used in the kiln and in a steam turbine, which produces electricity.
The first picture shows a small part of the boiler, which is several stories tall. This boiler was not running; the doors are for ash clean-out.
The second picture shows the steam turbine and generator set.
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