www.fpinnovations.ca Wood energy developments in the UNECE region October 09, 2007 Geneva, CH Christopher Gaston, Ph.D. Director, Markets & Economics FPInnovations
www.fpinnovations.ca
Wood energy developments in the UNECE region
October 09, 2007 Geneva, CH
Christopher Gaston, Ph.D.Director, Markets & EconomicsFPInnovations
FER
IC
FO
RIN
TEK
PAPR
ICAN
FIBR
E CE
NTRE
Toward an Integrated Innovation System
April 1, 2007
ManufacturingProcesses
ManufacturingProcesses
Forest Operations & Harvesting
The Forest Sector Value ChainThe Forest Sector Value Chain
Forest Management
GENO
ME
Pulp & PaperPulp & Paper
Wood ProductsWood Products
MarketsBuilding materialsIndustrial products
MarketsPulp & Paper
Packaging, etc.
Fibre characterization
Wood characterization
FERIC
Paprican
Forintek
CFS Fibre Center
Market &Product
Diversification
Market &Product
Diversification
Current Industry
Sustainable Forests
Commodity Wood Products Commodity Pulps
& Papers
Market Value & ROI decreasing
Future Industry
Sustainable Forests
Commodity Wood Products Commodity Pulps
& Papers
Engineered Composites & SystemsSustainable Construction
Appearance Products
Value Added Pulps & Papers
‘Bioproducts’&Bioenergy
Now:
Future:
Market Value & ROI decreasing
Bolt-on PlantCo-products
Four Flagship Innovation Programs
Value ChainOptimization
Building & LivingSolutions
Bioenergy, Chemicals &
AdvancedBioproducts
Next GenerationPulps & Papers
Market driven R&D
StrandsStrands ResidueResidue SoftwoodSoftwoodLumberLumber
HardwoodHardwoodLumberLumber
SoftwoodSoftwoodVeneerVeneer
HardwoodHardwoodVeneerVeneer
Shakes/Shakes/ShinglesShingles
OSB Dimension
TreatedEG Panels
I Joist Flanges
LVL
LVL Treated
Glue Lam Stock
OSL MSR
Boards
PlywoodPlywood Untreated
Boards
DimensionParts/Factory Veneer Sheets
Veneer Sheets
FJ
PSLTimbers
Bark BoardWood Cement
Fibre MatPlastic Wood
Other Wood Comp.
Pulp&PaperParticle Board
Bailed Fibre
MDF
Home Centres/Warehouse Pro Dealers Other Retail Direct
Building Systems
Wholesale/Dist.
HDF
MMAARRKKEETT
CHANNELS
R&R
Contractor
Residential
Single Family ManufacturedMultifamily
Non Residential Industrial
FurnitureDIY
StrandsStrands ResidueResidue SoftwoodSoftwoodLumberLumber
HardwoodHardwoodLumberLumber
SoftwoodSoftwoodVeneerVeneer
HardwoodHardwoodVeneerVeneer
Shakes/Shakes/ShinglesShingles
OSB Dimension
TreatedEG Panels
I Joist Flanges
LVL
LVL Treated
Glue Lam Stock
OSL MSR
Boards
PlywoodPlywood Untreated
Boards
DimensionParts/Factory Veneer Sheets
Veneer Sheets
FJ
PSLTimbers
Bark BoardWood Cement
Fibre MatPlastic Wood
Other Wood Comp.
Pulp&PaperParticle Board
Bailed Fibre
MDF
Home Centres/Warehouse Pro Dealers Other Retail Direct
Building Systems
Wholesale/Dist.
HDF
MMAARRKKEETT
CHANNELS
R&R
Contractor
Residential
Single Family ManufacturedMultifamily
Non Residential Industrial
FurnitureDIY
$ 22.1 billionCanada exports
$ 19.0 billion
Evolving markets… evolving products
Evolving markets… evolving products
Incremental improvements
New launches
Time
Prof
itabi
lity
Commodity
Time
Western Canada pellet mill
Policy drivers for wood energy production
• EC’s “Renewable Energy Roadmap” with a target of 20% by 2020 (12% originally proposed for 2010)
• U.S. target to reduce gasoline usage by 20% by 2017, and to make cellulosic ethanol cost competitive with corn by 2012
• Wood based electric power received support in 24 U.S. states’ Renewable Portfolio Standards
• Sustainability of existing bioenergyincreasingly under scrutiny (e.g. palm oil)
Wood Energy by Country
Sources of Wood Fuel—Europe
Usage of Wood Fuel—Europe
Global log consumption
Sources of Wood Fuel—North America
Uses of Wood Fuel—North America
Production / Consumption of Wood Pellets
Russian Pellet Industry
Bioenergy & Fuels:
• Nexterra & Tolko
Net contributor of EnergyNet contributor of Energy
Mountain Pine Beatle Attack
0 10 20 30 40 50 60 70 80
British Columbia
Alberta
Saskatchewan
Manitoba
Ontario
Quebec
New Brunswick
Nova Scotia
Prince Edward Is.
Newfoundland
Million Cubic metres
MPB time projections
BC log harvest
Drops in Harvests in Eastern Canada
20% reduction in Québec (approx. 6 million m3)15% reduction in Ontario (approx. 3 million m3)
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