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Forest and Wood Residues Forest and Wood Residues in a in a Low Carbon Future Low Carbon Future C. Scott Miller Price BIOstock, Marketing Consultant BIOstock Blog, Editor May, 2008

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Forest and Wood Residues as Feedstock in a Low Carbon Future

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Page 1: Price BIOstock 051409

Forest and Wood ResiduesForest and Wood Residuesin ain a Low Carbon FutureLow Carbon Future

C. Scott MillerPrice BIOstock, Marketing ConsultantBIOstock Blog, EditorMay, 2008

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Victoria, Australia

Wood Chipping

PBS Headquarters

14+ million tonsper year

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The Price Companies Business Model

Suppliers receive:– A fair price for feedstock– A preferred delivery point

Client specifies:– Woodchip or other product– Site of the receiving/processing yard

Price provides:– Feedstock procurement and delivery– Design/construction of receiving yard– Management of preparation facility

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OverviewOverview

The carbon footprint challenge Lessons learned from the forest products

industry

New tools in our arsenal

Biomass opportunities and challenges

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USDA - Greenhouse Gas Impact 1990-2030

TemperatureUSDA Climate Change Program Office May 2008 Report based on IPCC, 2006

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USDA - Greenhouse Gas Impact 1990-2030

TemperatureUSDA Climate Change Program Office May 2008 Report based on IPCC, 2006

Precipitation

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BIOpower mandates - Renewable Portfolio Standards (RPS)

PEW Center on Global Climate Change

Solar

Wind

State-by-state RPS ~10-20%

Bioenergy

How will regions meet federal RPS mandates?

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U.S. Energy Consumption Timeline (1775-2000)

ENERGY INFORMATION ADMINISTRATION

Civil War - Coal emerges

World War I&2 - Oil emerges

Cold War - Nuclear emergesQuadBTU

1800 1900 1950 20001850

CivilWar

WorldWar I

WorldWar II

‘70s OilCrisis

40

30

20

10

0

2 Oil Crises and Global Warming- Renewables re-emerge

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The Carbon Cycle

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Carbon footprint comparison

Carbonpositive

Fossilfuels

+5

BIOpact Blog

Fossil Energy and Fuels

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Carbon footprint comparison

Carbonpositive

Less Carbonpositive

FossilFuels

Fossilfuels

Carbonsequestration

Fossil Energy and Fuels

+5 +4

BIOpact Blog

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Carbon footprint comparison

Carbonpositive

Less Carbonpositive

FossilFuels

Fossilfuels

Carbonsequestration

Fossil Energy and Fuels

Carbonneutral

Renewable Energy

+5 0+4

BIOpact Blog

Cleantechsolar, wind,

& hydro

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Carbon footprint comparison

Carbonneutral

Carbonnegative

Cleantechsolar, wind,

& hydro

BioEnergywith carbon

storage

Renewable Energy

Carbonpositive

Less Carbonpositive

FossilFuels

Fossilfuels

Fossil Energy and Fuels

Carbonsequestration

BIOpact Blog

+5 0+4 -2

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Pulp & Paper

+$

‘70’s “Cradle-to-grave” material value cycle

BiomassConversion

Wood Biomass& Grid Power

Wasteto

Landfill

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+$

Waste asan EnergyFeedstock

- Black liquor- Sawdust- Wood residues- Bark

‘80’s “Cradle-to-cradle” bioenergy value cycle

BiomassConversion

ParasiticLoad

Wood Biomass

Pulp & Paper

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Pulp & Paper

+$

Waste asan EnergyFeedstock

New “Cradle-to-cradle” bioenergy value cycle

FlexibleFeedstock- Wood- Energy crops- Residues- MSW

ParasiticLoad

BiofuelsBioplasticsCentralized HeatPower to Grid

BiomassConversion

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U.S. renewable energy growth

ACORE - Biomass Coordinating Council

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20057.5B x 2012

2012

2022

Other Biofuels

BioDiesel

Corn Ethanol

CellulosicBiofuels

EISA’s mandated growth by fuel - 2006 to 2022

Green Car Congress

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Feedstock sustainability: lifecycle GHG compared*

The Nature Conservancy

SugarCaneCanolaSoy

25-50% less

>75%less

LifecycleGHG vs.

Oil-based

PalmOilCorn

Roughly equal

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Feedstock sustainability: lifecycle GHG compared*

The Nature Conservancy

SugarCaneCanolaSoy

Very High Low

Resource Consumption

25-50% less

>75%less

Energy

Pesticides

Fertilizer

Water

LifecycleGHG vs.

Oil-based

PalmOilCorn

Roughly equal

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Feedstock sustainability: lifecycle GHG compared*

The Nature Conservancy

SugarCaneCanolaSoy

Very High Low

Resource Consumption

25-50% less

>75%less

*depends on methods & type

WoodyBiomass

Agric.Waste

>95% less tonet sequestration*

Energy

Pesticides

Fertilizer

Water

LifecycleGHG vs.

Oil-based

PalmOilCorn

Roughly equal

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Feedstock sustainability: lifecycle GHG compared*

The Nature Conservancy

SugarCaneCanolaSoy

Very High Low

Resource Consumption

25-50% less

>75%less

*depends on methods & type

WoodyBiomass

Agric.Waste

>95% less tonet sequestration*

Energy

Pesticides

Fertilizer

Water

LifecycleGHG vs.

Oil-based

PalmOilCorn

Roughly equal

AlgaeNativeprairie

Switchgrass

Net sequestration

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Biofuel energy balance comparison

Sierra Club & Worldwatch Inst. - “Smart Choices for Biofuels”

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Decentralizedresource “basins”

25 Miles

50 Miles

75 Miles

Haul times

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Decentralized biomass feedstock potential

Corn

Corn

Corn

Corn

Corn

Corn CornCorn

Wood

Wood

Wood

Wood

Wood

WoodWood

Wood

Wood

Wood

Wood

Wood

WoodWood

Wood

Wood

Wood

Wood

Wood

Wood

Wood

Wood

Wood

Wood

Wood

WoodWood

Hybrid

Hybrid

HybridHybrid

HybridHybrid

Hybrid

Hybrid

HybridHybrid

Hybrid

Hybrid

Hybrid

Hybrid

Hybrid

HybridHybrid

MSWMSW

MSW

MSW

MSW

MSW

MSW

MSW

MSW

MSW

MSW

MSW

MSW

MSW

MSW

MSW

MSWMSW

MSW MSW

MSW

MSW MSW

MSW

MSW

MSW

MSW

MSW

MSW

MSW

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Improving yield per acreImproving yield per acre

US DOE, 6/2006

Marginal land adaptabilityMarginal land adaptability Shorter, perennial crop rotation -Shorter, perennial crop rotation -

ideally at 5 yearsideally at 5 years More carbon sequestrationMore carbon sequestration Better pest and fire resistanceBetter pest and fire resistance Higher drought and climateHigher drought and climate

tolerancetolerance Streamline Streamline processabilityprocessability New growing and harvestingNew growing and harvesting

techniquestechniques

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Multiple Stresses of a Changing Climate

2003 National Assessment Synthesis Team, US Global Change Research Program

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Thinnings & salvage

6 of the 7 worst fire seasons

National Interagency Fire Center, 2008

Cone Fire - 2002

U.S. Forest Fires1960-2007

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Beetle kill deforestation

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J.Q. Chambers et al., Science 318, 1107 (2007) Published by AAAS

Hurricane disaster debris

Destruction demolition waste

Katrina knockdown - 5,000,000 acres(Mount St. Helens - 130,000 acres)

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Biorefinery Contracts

PB Headquarters

Raven EnergyKamloops, BC

Range FuelsSoperton, GA

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Challenges:Challenges:

Yield

Harvesting

Pre-processing

— New species, Improved genetics— Shorter rotation— Marginal land— Utilize existing waste— Cost efficient one pass process

— Good economic analysis— Flexibility as technology evolves

— Minimize hauling distances— Specialized rigs— Increase gross vehicle weight

Transportation

Biomass Supply Chain OpportunitiesBiomass Supply Chain Opportunities

Sustainability — Develop BMP’s, outside attestation

Solutions:Solutions:

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Example: $25/ton Biomass Delivered to Mill

$13Processing

$5Freight

$7Stumpage

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Stumpage Prices

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10%Blend Wall

2022

Other Biofuels

BioDiesel

Corn EthanolCellulosicBiofuels

The Regulatory “Blend Wall” Challenge

Green Car Congress

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One dot = 5,000 acres

Federal land

23,000,000 acresBefore EISA RFS

Georgia’s qualifying biomass

USDA Forest Service - Forest Inventory and Analysis National Program

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One dot = 5,000 acres

Federal land

23,000,000 acresvs. 7,300,000 acres

Before EISA RFS

After RFS

Georgia’s qualifying biomass

USDA Forest Service - Forest Inventory and Analysis National Program

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USDA Forest Service - Forest Inventory and Analysis National Program

One dot = 5,000 acres

Federal land

19,000,000 acresBefore EISA RFS

California’s qualifying biomass

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USDA Forest Service - Forest Inventory and Analysis National Program

One dot = 5,000 acres

Federal land

19,000,000 acresvs. 500,000 acres

Before EISA RFS

After RFS

California’s qualifying biomass

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SummarySummary

Bioenergy addresses carbon footprint challenge

Forest products industry is a blueprint fordeveloping integrated biorefineries

Bioenergy infrastructure helps environment

Biomass opportunities and challenges requireadvocacy and public education

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Forest and Wood ResiduesForest and Wood Residuesin ain a Low Carbon FutureLow Carbon Future

C. Scott MillerPrice BIOstock, Marketing ConsultantBIOstock Blog, EditorMay, 2008