Dominik Roser, Ph.D. Advanced Bioeconomy Feedstocks Conference June 9-10, 2015 New Orleans British Columbia and Biomass Availability.

Dominik Roser, Ph.D.Advanced Bioeconomy Feedstocks Conference

June 9-10, 2015

New Orleans

British Columbia and Biomass Availability

© 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations.

About FPInnovations

A private non-profit Canadian corporation Supports competitiveness of the Canadian forest sector

through science, technology and innovation Facilitates collaboration between industry, government,

suppliers and colleges/universities

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Focused on real business needs and opportunities, for today and for the future

A proven track record of delivering bottom-line impact and positive return on investment


Canadian fiber supply

Canada: 400 million ha forest land

▫ 8% private land▫ 78% Provincial Crown land

140 million m3/a annual cut

Finland: 21 million ha forest land

▫ 70% private▫ 30% public

55 million m3/a annual cut

British Columbia: One of the largest public

forests on earth Only 5% private ownership 10% protected areas 63 million m3/a annual cut


Features of Forest Tenure in BC

British Columbia has a complex tenure system with 14 different tenure types

30% of the harvesting rights are area based 70% of the harvesting rights are volume based

(rights to harvest a certain amount within a broad area)

52% are long term (>20 years) 48% are short to medium term (<20 years) Development of tenures to support the evolution of

the bio-energy industry Area-based tenures to provide First Nations with

viable forest-based economic opportunities and employment

More local community control of forest resources (community forest agreements)


Mountain Pine Beetle in BC

Approximately 18 million ha have been affected by MPB In the interior, MPB affected stands may mean lower harvest levels

and lumber production and reduced sawmill residuals MPB stands have provided a new source of fibre from harvest

residues


Industry transformation

The industry has transformed considerably of the last decade: 15 years ago most residues were burned in beehive

burners BC was hit by the MPB The federal and provincial governments have done a lot

to support the transformation of the industry Industry has and is investing to modernize their

operations 300 MW of bioenergy added through the Pulp and Paper

Green Transformation Program Quebec is the frontrunner in community heating The pellet industry in BC was established as the pioneer

of the bioenergy industry in Canada Today integrated companies have added bioenergy into

their strategic portfolios across the country Residual forest biomass is starting to be recognized as a

product - not waste The bioeconomy is a reality in Canada


Bioenergy capacity in BC

7

Pellets51%

Co-gen at P&P33%

Independent Power Producers

13%

Biodiesel2%

Community Heating1% Biogas

0%

Source: 2014 CanBio Report on the Status of Bioenergy in Canada

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Finland BC


Potential Availability

Harvest ResiduesSawmill Residues/

hog fuelRoundwood

British Columbia biomass sources


Feedstock cost is key to competitiveness

• Delivered wood cost to mill is the single largest component of final product cost (40 to 60%)

• Failures of bioenergy projects are often due to insufficient attention to the feedstock supply (volumes, costs, quality & fluctuations)

• Currently no high value product for biomass, therefore low cost is expected

© 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. 11

Biomass price ranges in BC

Harvest ResiduesSawmill Residues &

hog fuel

Roundwood

40 – 120 10 – 60 80 – 120

CAD$/dry tonne

7 – 43 29 – 87 58 – 72

US$/dry ton (short)

Exchange rate 0.80 CAD/USD


Fibre availability in BCWilliams Lake 10-year supply

Hanceville

Williams Lake

Horsefly

• 45% of Provincial cut has been analyzed for harvest residue availability• There is lots of biomass around but sustainable and economically-viable

volumes need to be established • Harvest residue availability is approximately 6 – 15 % of roundwood production

at a price of $60/odt

Anahim Lake


British Columbia

Depending on the region, there are large untapped volumes of harvest residues available

The interior has a tighter fibre supply, particularly in certain areas

Existence of established supply chain Relative closeness to shipping ports is a major

advantage Challenges around quality/contamination with

harvest residues Burning of harvest residue piles is becoming more

challenging Potential sources of residues may become

available from thinnings, FireSmart treatments, right-of-ways, road sites, urban forestry


Reducing the cost of biomass supply

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250,000 odt/y at $60

520,000 odt/y at $70

760,000 odt/y at $80


Integration of operations


New technology development & implementation

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Technology & Know-how transfer

Be the first to dry your biomass to 10%

Biomass

Storage


Conclusions

There is lots of biomass but sustainable and economic volumes need to be established on a local case-by-case basis with major tenure holders

Development of residue recovery systems▫ Better integration with conventional harvest

▫ Tailored biomass supply chains

Value of residues need to be recognized ▫ not a mature market

▫ Treat biomass as a product not waste

New breakthrough technologies are required to:▫ Develop innovative logistic solutions

▫ create clean white wood from harvest residues

www.fpinnovations.ca

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Dr. Dominik Roser

Research Leader

Phone: 604-222-5624

Cell: 607-837-6935

Email: [email protected]

http://www.fpinnovations.ca/

Dominik Roser, Ph.D. Advanced Bioeconomy Feedstocks Conference June 9-10, 2015 New Orleans British Columbia and Biomass Availability.

Documents

trademarks of fpinnovations

harvesting rights

features of forest tenure

canadian forest sector

volume based rights

m3a annual cut finland

ha forest land70

bc british columbia