price biostock 051409
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Forest and Wood Residues as Feedstock in a Low Carbon FutureTRANSCRIPT
Forest and Wood ResiduesForest and Wood Residuesin ain a Low Carbon FutureLow Carbon Future
C. Scott MillerPrice BIOstock, Marketing ConsultantBIOstock Blog, EditorMay, 2008
Victoria, Australia
Wood Chipping
PBS Headquarters
14+ million tonsper year
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
OverviewOverview
The carbon footprint challenge Lessons learned from the forest products
industry
New tools in our arsenal
Biomass opportunities and challenges
USDA - Greenhouse Gas Impact 1990-2030
TemperatureUSDA Climate Change Program Office May 2008 Report based on IPCC, 2006
USDA - Greenhouse Gas Impact 1990-2030
TemperatureUSDA Climate Change Program Office May 2008 Report based on IPCC, 2006
Precipitation
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?
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
The Carbon Cycle
Carbon footprint comparison
Carbonpositive
Fossilfuels
+5
BIOpact Blog
Fossil Energy and Fuels
Carbon footprint comparison
Carbonpositive
Less Carbonpositive
FossilFuels
Fossilfuels
Carbonsequestration
Fossil Energy and Fuels
+5 +4
BIOpact Blog
Carbon footprint comparison
Carbonpositive
Less Carbonpositive
FossilFuels
Fossilfuels
Carbonsequestration
Fossil Energy and Fuels
Carbonneutral
Renewable Energy
+5 0+4
BIOpact Blog
Cleantechsolar, wind,
& hydro
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
Pulp & Paper
+$
‘70’s “Cradle-to-grave” material value cycle
BiomassConversion
Wood Biomass& Grid Power
Wasteto
Landfill
+$
Waste asan EnergyFeedstock
- Black liquor- Sawdust- Wood residues- Bark
‘80’s “Cradle-to-cradle” bioenergy value cycle
BiomassConversion
ParasiticLoad
Wood Biomass
Pulp & Paper
Pulp & Paper
+$
Waste asan EnergyFeedstock
New “Cradle-to-cradle” bioenergy value cycle
FlexibleFeedstock- Wood- Energy crops- Residues- MSW
ParasiticLoad
BiofuelsBioplasticsCentralized HeatPower to Grid
BiomassConversion
U.S. renewable energy growth
ACORE - Biomass Coordinating Council
20057.5B x 2012
2012
2022
Other Biofuels
BioDiesel
Corn Ethanol
CellulosicBiofuels
EISA’s mandated growth by fuel - 2006 to 2022
Green Car Congress
Feedstock sustainability: lifecycle GHG compared*
The Nature Conservancy
SugarCaneCanolaSoy
25-50% less
>75%less
LifecycleGHG vs.
Oil-based
PalmOilCorn
Roughly equal
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
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
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
Biofuel energy balance comparison
Sierra Club & Worldwatch Inst. - “Smart Choices for Biofuels”
Decentralizedresource “basins”
25 Miles
50 Miles
75 Miles
Haul times
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
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
Multiple Stresses of a Changing Climate
2003 National Assessment Synthesis Team, US Global Change Research Program
Thinnings & salvage
6 of the 7 worst fire seasons
National Interagency Fire Center, 2008
Cone Fire - 2002
U.S. Forest Fires1960-2007
Beetle kill deforestation
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)
Biorefinery Contracts
PB Headquarters
Raven EnergyKamloops, BC
Range FuelsSoperton, GA
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:
Example: $25/ton Biomass Delivered to Mill
$13Processing
$5Freight
$7Stumpage
Stumpage Prices
10%Blend Wall
2022
Other Biofuels
BioDiesel
Corn EthanolCellulosicBiofuels
The Regulatory “Blend Wall” Challenge
Green Car Congress
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
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
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
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
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
Forest and Wood ResiduesForest and Wood Residuesin ain a Low Carbon FutureLow Carbon Future
C. Scott MillerPrice BIOstock, Marketing ConsultantBIOstock Blog, EditorMay, 2008