Innovations in Tree Genetics and Paper Manufacturing Methods

1. NCSU P&P FOUNDATION Rethink & Discovery - III“Opening Doors to Innovation and Learning”-- “A Thought Leadership Program” –Gary Peter – Innovation Panel North Carolina State University Pulp & Paper Foundation Annual Meeting -- October 10, 2002 – Raleigh, North Carolina –

2. Program Overview • Introductory Remarks -- Background & Program Overview – Kathy Buckman Davis • Keynote – Richard Phillips • Panel Session 1: • Innovation Pathways or Dead ends? – Ben Thorp • Panel Session 2: • Learning Doorways or Roadblocks? – Mike Kocurek • Summary & Wrap-up – Jim McNutt • Adjourn

3. Trends in Tree Genetics -- Coevolutionary Innovations in Raw Materials, Pulp and Paper Manufacturing Methods Gary Peter Research Faculty, CPBIS & Associate Professor, School of Forest Resources and Conservation University of Florida gfpeter@ufl.edu

4. Industry Innovations • Historical – • Adapted processing technologies to fit natural raw materials • Current – • Wood supply altered to better fit current processing technologies • Future • Wood supply and processing technologies altered in concert

5. Co evolution of Raw Materials & Processing Methods: Low Lignin Trees • Positive Impacts -- • Reduced cost of pulp production and improved pulp quality • Negative Impacts – • Reduced ability of mill to supply its own energy needs

6. CURRENT Recovery Boiler Linerboard cost optimum closer to 20% than 15% Weighted pulp yield for 20% lignin 68% FUTURE Black Liquor Gasification Linerboard cost optimum closer to 12-15% Weighted pulp yield for 15% lignin 75% Low Lignin Trees & Energy Generation Technologies on -- Kraft Linerboard Costs

7. Segregating Family Forest Tree Improvement Cycles BREEDING GENETIC ENGINEERING Elite Tree ASEXUAL PROPAGATION Tree Selections Novel Traits CLONAL FORESTRY

8. Segregating Family Breeding APPROACHES TOOLS Controlled Crosses Phenotyping Genetic & Physical Mapping Hybrids Tree Selections Molecular Markers ClonalSelection

9. Distribution of Individuals # Genotypes 5% Phenotype Clonal Selection • Preferred Outcrossing • No inbreds • Oldest pedigrees three generations • Quantitative traits • Combinations of multiple genes/alleles • Asexual capture & propagation

10. Clonal Seedling Production --Commercial Implementation 1 ELITE TREE ROOTED CUTTINGS SOMATIC EMBRYOGENESIS ASEXUAL PROPAGATION 105-106 ELITE TREES Genotype 1 Genotype 2

11. Novel Traits Genetic Engineering TOOLS APPROACHES • Gene Discovery • Genomics Elite Tree DNA Transfer Gene Regulatory Elements Selection of Transformed Cells Over & Under Expression Plant Regeneration Introduction of Novel genes

12. Cost effective clonal seedling production Rapid cycle breeding Controlled flowering Early estimation of phenotypes Molecular markers Models for fiber properties Low cost, rapid, nondestructive methods for wood and fiber property estimation Societal acceptance of genetically engineered trees Sterility Gene discovery Knowledge of genes that when modified improve processing synergies and value of end products Knowledge of synergies between wood, fiber, paper and processing technologies Key Barriers to – Improved Germplasm

13. Alternative Co evolutionary Ideas for -- New Tree Materials • New wall layer arrangements to affect need for refining and influence fiber-fiber bonding • Thin S1 layer • Altered arrangement of S1 layer • Super efficient wood and fungal pairs for ultra-rapid biopulping • Novel biosynthesis of alternative polymers in secondary wall that promote bonding