DEVELOPMENT OF A SUSTAINABLE INDUSTRY FOR THE PRODUCTION OF ENERGY AND CHEMICALS FROM FOREST BIOMASS

1
DEVELOPMENT OF A SUSTAINABLE INDUSTRY FOR THE
PRODUCTION OF ENERGY AND CHEMICALS FROM FOREST
BIOMASS

• Dr Liam E. Leightley
• Biomass Conference
• University of Georgia, Athens
• August 29-31, 2005

2
DEVELOPMENT OF A SUSTAINABLE INDUSTRY FOR THE
PRODUCTION OF ENERGY AND CHEMICALS FROM FOREST
BIOMASS

• If the environmental and social benefits of wood
  energy are not accounted for, then the lack of
  utilization of forest biomass for the production
  of energy will become environmentally,
  economically and socially unacceptable.

3
OUR FOREST RESOURCE
4
SUSTAINABLE DEVELOPMENT

• seeks to meet the needs and aspirations of the
  present without compromising the ability to meet
  those of the future
• World Commission, 1987

5
MANAGEMENT OF RENEWABLE RESOURCES

• Harvest rates should equal regeneration rates
  (sustained yield)
• Waste emission rates should equal natural
  assimilative capacities of the ecosystems into
  which the wastes are emitted

6
UTILIZATION OF FOREST RESOURCES

• What will happen to the significant volumes
• of pulpwood which are increasing daily in the
• Southern States?
• What will happen to the significant volumes
• of merchantable stems which will become
• available over the next 10 years?
• How could forest residues be utilized more
  effectively for bioenergy and products?

7
A BIOMASS INDUSTRY FOR THE SOUTHERN STATES

• The Southern States of the USA needs a
• Biomass Based Industry
• New industry would create high-volume ,
  non-cyclical markets for biomass (trees, forest
  thinning, logging residue, under-story
  vegetation, mill residue ).
• New jobs will be created , lost jobs restored and
  existing jobs retained
• 214 million acres of forestland in the 13
  southeastern states.

8
BIOMASS AND ITS CONTRIBUTION TO RENEWABLE ENERGY
FOR AMERICA

• As a source of energy Biomass is the largest
  domestic source of renewable energy providing
  over 3 of total U.S. energy consumption, and
  surpassing hydropower.
• US DOE and USDA support biomass fuels and
  products as a way to reduce oil and gas imports
  and support the growth of agriculture, forestry,
  and rural economies

9
WHAT COMES OUT OF THE 42 GALLONS IN A BARREL OF
OIL?
10
A GOAL OF 30 DISPLACEMENT OF CURRENT PETROLEUM
CONSUMPTION AND THE PRODUCTION OF 1 BILLION TONS
OF BIOMASS FEEDSTOCK PER YEAR? Trick or Treat?

• Answer from USDA and DOE is that
• 1 Billion dry tons of Biomass feedstock can be
  produced per year.
• So what is the deal for Forestry and the current
  state of play?

11
Feedstocks - Conversion-Uses

• USES
• Fuels
• Ethanol
• Renewable Diesel
• Power
• Electricity
• Heat
• Chemicals
• Plastics
• Solvents
• Adhesives
• Acetic Acid
• Carbon black
• Paints
• Dyes, Pigments, and Ink
• Detergents

Conversion Processes
Biomass Feedstock
- Enzymatic Fermentation - Gas/liquid
Fermentation - Hydrolysis to Oil - Gasification -
Combustion - Co-firing
Trees Agricultural Crops Forest residues
12
(No Transcript)
13
(No Transcript)
14
(No Transcript)
15
(No Transcript)
16
(No Transcript)
17
(No Transcript)
18
(No Transcript)
19
(No Transcript)
20
MAJOR CONGRESSIONAL DIRECTIONS

• The Biomass Research and Development Act of 2000
• Farm Security and Rural Investment Act of 2002
• Healthy Forests Restoration Act of 2003
• American Jobs Creation Act of 2004
• Energy Policy Act of 2005

21
WHAT DO WE MEAN WHEN WE TALK ABOUT FOREST
RESOURCES AS BIOMASS?

• PRIMARY logging residues fuel treatments
• SECONDARY primary wood processing mill wastes
  secondary mill wastes pulping liquors
• TERTIARY Urban wood wastes

22
BIOMASS FROM THE FOREST RESOURCE

• 52 MM tons fuel wood
• 144 MM dry tons of residues from wood
  processing mills and pulp and paper mills
• 47 MM dry tons of urban wood wastes
• 64 MM dry tons logging and site clearing
• 60 MM dry tons of biomass from fuel
  reduction
• 368 MM dry tons

23
CURRENT BIOMASS FEEDSTOCK CONSUMPTION

• Slightly more than 75 of biomass consumption
  142 mm tons, comes from forestlands
• 2003 biomass contributed nearly 2.9 quads BTU
  to the nations energy supply 3 of the
  Nations energy consumption of 98 quads.
• More than 70 of this biomass comes from wood
  residues and pulping liquors generated from the
  forest products industry.

24
WHO OWNS THE 504MM ACRES OF US TIMBERLAND
FORESTLAND?

• 29 Public
• 13 Forest Industry
• 58 Private
• In the South an estimate would be that more than
  75 forest land ownership is privately held

25
AREA OF PLANTATION PINE STANDS IN MISSISSIPPI
THROUGH 2040
USDA, FOREST RESOURCE RPT 24, 1988
26
AREA OF PINE PLANTATIONS BY OWNERSHIP IN THE
STATE OF MISSISSIPPI THROUGH 2030
ROSSON, 2001
27
TIMBER REMOVALS OF PLANTATION PINE IN MISSISSIPPI
THROUGH 2030
28
STATE RANKINGS OF FOREST PRODUCTS IMPACTS, 2001
Source Implan data for US states (MIG Inc.)
29
THERE IS A NEED TO CREATE A SUSTAINABLE FOREST
BASED BIOMASS INDUSTRY IN THE SOUTH

• Feedstock for bioenergy and bioproducts create
  jobs and enhance income for the rural sector of
  Americas economy
• It is vital that the barriers which are
  preventing the economically and environmentally
  sound development of sustainable biomass are
  removed.

30
RESOURCE ASSESMENT

• Forests are expected to provide multiple use
  benefits, including wildlife habitat,
  recreation, and ecological and environmental
  services
• US Timberland 29 publicly owned. 13 forest
  industry and 58 privately owned
• Fuel wood 35 MM tons of current consumption for
  residential and commercial use and electrical
  utility use.
• What about short rotation woody crops? ( Grow on
  Agricultural lands).

31
SOME ASSUMPTIONS and A QUESTION

• A demand will continue for the supply of forest
  products which in turn will provide an increase
  in forest biomass
• The introduction of more efficient equipment
  logging, sawmills and pulp mills could reduce the
  residual biomass
• What about off shore competition and mill
  closures leading to an over capacity of
• precommercial and commercial thinnings?

32
FOREST GROWTH AND INCREASE IN DEMAND FOR FOREST
PRODUCTS

• Current trends in the demand and supply of forest
  products could increase the potential
  contribution of forest biomass by
• 89 MM tons /pa
• The rate of increase in primary and secondary
  forest biomass will be tempered by product
  substitution, recycling and reuse and improved
  manufacturing efficiencies

33
SOME BARRIERS TO CREATING THE SUSTAINABLE INDUSTRY

• Transportation costs per dry ton-mile, especially
  if based upon bioenergy and biobased product
  values
• Labor availability
• Environmental impact
• Lack of efficient and specialized equipment
  needed for small diameter removal
• Federal funding for forestry programs - lt 0.5 of
  direct agricultural payments to farmers

34
GAO REPORT - BARRIERS

• Emphasis on fuel reduction and the West and North
  West situation in Public Forests
• Difficulty in using woody biomass effectively and
  lack of a reliable source of biomass material
  from Federal Lands
• Incentives are required in the form of subsidies
  and tax credits

35
GAO REPORT

• Tax credits are required to offset development
  costs
• Federal and State Policies are needed which
  require the use of renewable energy sources in
  the generation of electricity
• Major costs in harvesting and transportation
• Exit fees charged by utility companies

36
GAO REPORT

• Incentives could have adverse unintended
  consequences on the ecological health of National
  forests
• How about in the absence of incentives the
  forest based industry in the South will suffer a
  terminal illness with unwanted consequences?

37
A SUSTAINABLE INDUSTRY BASED UPON MARKET FORCES

• Federal policy changes such as increased
  subsidies could address obstacles to woody
  biomass utilization.
• Research and development efforts, combined with
  market forces, will eventually result in
  equilibrium.
• Woody biomass utilization needs to find its
  appropriate level. If cost-effective uses of
  woody biomass can be found, its utilization will
  increase.

38

• Production tax credits or subsidies may be
  successful in getting businesses or industries
  started. However, they may not be sustainable
  over the long term.
• Market-driven solutions are more appropriatefor
  example, providing information to exploit the
  existing market, or developing requirements or
  incentives (such as renewable portfolio
  standards) that create a market on their own.

39
CURRENT IMPACTS ON FOREST PRODUCTS CONSUMPTION

• Intensive management of Plantation forests is
• widely practiced in the Southern States of the
  USA resulting in a significant amount of
  thinnings
• destined for pulp mills as pulpwood
• US pulpwood consumption has decreased in the
• South since the 1990s
• Decrease can be attributed to higher costs
• Changing paper demand
• High labor costs
• High fiber costs
• High tax rates

40
UTILIZATION OF FOREST RESOURCES

• What will happen to the significant volumes
• of pulpwood which are increasing daily in the
• Southern States?
• What will happen to the significant volumes
• of merchantable stems which will become
• available over the next 10 years?
• How could forest residues be utilized more
  effectively for bioenergy and products?

41
ENERGY AND PRODUCTS FROM WOOD

• Consider the future for production of energy and
  high value chemicals from wood
• The South is rich in lignocellulosic material
• Wood material can come from wood waste and also
  forest thinnings
• Wood could be specifically grown for conversion
  to energy and chemicals
• The future for energy and high value chemical
  products is with lignocellulosic products

42
THE PRODUCTION AND PRODUCTION AND UTILISATION
OF ENERGY AND CHEMICALS FROM WOODY BIOMASS

• Consider the emphasis on production of
  electricity in co-fired power plants for hub and
  spoke reticulation
• The development of a form of distributed energy
  could be much more attractive, especially to
  rural communities

43
SMALL IS PROFITABLE

• Combined Heat and Power (CHP) units would lend
  themselves particularly well to small
  communities, especially supplying energy
  requirements for key installations such as
  schools, clinics and fire stations
• Local economies could derive direct benefit from
  locally developed energy and local communities
  retain the revenue from the production of wood
  based fuels

44
SMALL IS SUSTAINABLE

• Highly integrated Biorefineries will need to have
  very favorable resale prices, especially since
  gasoline is so heavily subsidized
• Given the continual advances in technology and
  specific market demands the emergence of
  micro-Biorefineries seems a very logical
  development

45
BARRIERS AND SOLUTIONS FOR DEVLOPING A
SUSTAINABLE INDUSTRY

• Major barrier to the sustainable development of
  wood based energy is its cost vs. fossil fuels
• If the environmental and social benefits of wood
  energy are accounted for, then the utilization of
  forest biomass for the production of energy
  becomes environmentally, economically and
  socially justifiable.

46
DEVELOPMENT OF A SUSTAINABLE INDUSTRY

• I would suggest to you that -
• If the environmental and social benefits of
  wood energy are not accounted for, then the lack
  of utilization of forest biomass for the
  production of energy will become environmentally,
  economically and socially unacceptable.

47
WHAT NEXT FOR BIOMASS UTILIZATION?

• US DOE and USDA committed to expanding role of
  biomass as a source of energy and chemicals
• View this as a way to support new industries
  manufacturing fuels, chemicals and other products
• Additional work is required to develop
  appropriate conversion technologies and to
  determine the impact of Forest Biomass
  Utilization on traditional Forest Products
  markets