Biomass Utilization The South’s Industry of the Future

1. Biomass UtilizationThe South’s Industry of the Future Dr Liam E. Leightley FUTURE TRENDS FOR FORESTRY MS SAF ANNUAL MEETING, JACKSON, MARCH 2005

2. BIOMASS AND ITS CONTRIBUTION TO RENEWABLE ENERGY FOR AMERICA • As a source of energy Biomass is the largest domestic source of renewable energy providing over 3% of total U.S. energy consumption, and surpassing hydropower. • US DOE and USDA support biomass fuels and products as a way to reduce oil and gas imports and support the growth of agriculture, forestry, and rural economies

3. BIOMASS • Any organic matter that is available on a renewable or recurring basis , including agricultural crops and trees, wood and wood wastes and residues, plants ( including aquatic plants), grasses, residues, fibers, and animal wastes, municipal wastes, and other waste materials. Biomass is generally produced in a sustainable manner from water and carbon dioxide by photosynthesis. There are three main categories of biomass – primary, secondary and tertiary.

4. A GOAL OF 30% DISPLACEMENT OF CURRENT PETROLEUM CONSUMPTION AND THE PRODUCTION OF 1 BILLION TONS OF BIOMASS FEEDSTOCK PER YEAR?Trick or treat? • Answer from USDA and DOE is that 1 Billion dry tons of Biomass feedstock can be produced per year. • So what is the deal for Forestry and the current state of play?

6. BIOMASS FROM THE FOREST RESOURCE • 52 MM tons fuel wood • 144 MM dry tons of residues from wood processing mills and pulp and paper mills • 47 MM dry tons of urban wood wastes • 64 MM dry tons logging and site clearing • 60MM dry tons of biomass from fuel reduction • Net - 368 MM dry tons.

7. CURRENT BIOMASS FEEDSTOCK CONSUMPTION • Slightly more than 75% of biomass consumption – 142 mm tons, comes from forestlands • 2003 – biomass contributed nearly 2.9 quads BTU to the nations energy supply ; ~ 3% of the Nations energy consumption of ~ 98 quads. • More than 70% of this biomass comes from wood residues and pulping liquors generated from the forest products industry.

8. WHAT DO WE MEAN WHEN WE TALK ABOUT FOREST RESOURCES AS BIOMASS? • PRIMARY – logging residues; fuel treatments • SECONDARY – primary wood processing mill wastes; secondary mill wastes; pulping liquors • TERTIARY – Urban wood wastes

9. RESOURCE ASSESMENT • Forests are expected to provide multiple use –benefits, including wildlife habitat, recreation, and ecological and environmental services • US Timberland – 29% publicly owned. 13% forest industry and 58% privately owned • Fuel wood – 35 MM tons of current consumption for residential and commercial use and electrical utility use. • What about short rotation woody crops? ( Grow on Agricultural lands).

10. OUR FOREST RESOURCE

11. WHAT IS THE SIZE OF THE RESOURCE? • Major decline in Mississippi’s natural pine stand acreage • By the year 2040 decrease to 2.15 million acres • By the year 2040 plantation acreage will be 5.54 million acres – an 88% increase from 1994 level of 2.95 million acres

12. AREA OF PLANTATION PINE STANDS IN MISSISSIPPI THROUGH 2040 USDA, FOREST RESOURCE RPT #24, 1988

13. 7% 2% National Forest Other Public 44% Forest Industry Non-industrial Private 47% AREA OF PINE PLANTATIONS BY OWNERSHIP IN THE STATE OF MISSISSIPPI THROUGH 2030 ROSSON, 2001

14. TIMBER REMOVALS OF PLANTATION PINE IN MISSISSIPPI THROUGH 2030

15. FOREST GROWTH AND INCREASE IN DEMAND FOR FOREST PRODUCTS • Current trends in the demand and supply of forest products could increase the potential contribution of forest biomass by 89 MM tons /pa • The rate of increase in primary and secondary forest biomass will be tempered by product substitution, recycling and reuse and improved manufacturing efficiencies

16. HEALTHY FOREST RESTORATION ACT ( HFRA) 2003 • Removal of forest fuel. • This will include pre-commercial thinnings • Most of this biomass would come from privately held lands

17. CURRENT IMPACTS ON FOREST PRODUCTS CONSUMPTION • Intensive management of Plantation forests is widely practiced in the Southern States of the USA resulting in a significant amount of thinnings destined for pulp mills as pulpwood • US pulpwood consumption has decreased in the South since the 1990’s Decrease can be attributed to higher costs: • Changing paper demand • High labor costs • High fiber costs • High tax rates

18. UTILIZATION OF FOREST RESOURCES • What will happen to the significant volumes of pulpwood which are increasing daily in the Southern States? • What will happen to the significant volumes of merchantable stems which will become available over the next 10 years? • How could forest residues be utilized more effectively for bioenergy and products?

19. A BIOMASS INDUSTRY FOR THE SOUTHERN STATES The Southern States of the USA needs a Biomass – Based Industry • New industry would create high-volume , non-cyclical markets for biomass (trees, forest thinning, logging residue, under-story vegetation, mill residue ). • New jobs will be created , lost jobs restored and existing jobs retained • 214 million acres of forestland in the 13 southeastern states. • Nation has 338 million acres of farmland, of which 128 million are in the southeast

20. Feedstocks - Conversion-Uses • USES • Fuels: • Ethanol • Renewable Diesel • Power: • Electricity • Heat • Chemicals • Plastics • Solvents • Adhesives • Acetic Acid • Carbon black • Paints • Dyes, Pigments, and Ink • Detergents • Food and Feed Biomass Feedstock Conversion Processes - Enzymatic Fermentation - Gas/liquid Fermentation - Hydrolysis to Oil - Gasification - Combustion - Co-firing Trees Agricultural Crops Forest residues

21. ENERGY AND PRODUCTS FROM WOOD • Consider the future for production of energy and high value chemicals from wood • The South is rich in lignocellulosic material • Wood material can come from wood waste and also forest thinnings • Wood could be specifically grown for conversion to energy and chemicals • The future for energy and high value chemical products is with lignocellulosic products

22. ENERGY AND PRODUCTS FROM WOOD • UTILISING WOODY MATERIAL THAT OTHERWISE WOULD BE BURNT TO WASTE OR LANDFILLED • HIGH TEMPERATURE AND NO OXYGEN TURN THE WOOD INTO BIOOIL WOOD (waste or chipped thinnings) BIOOIL WASTE FOR BURNING AS FUEL HIGH VALUE ADD CHEMICALS e.g. flavorings, building blocks for adhesives, wood protection chemicals

23. BIOOIL PRODUCTION

24. BIOOIL FROM FLASH PYROLYSIS • Biooil can be burned directly in engines or mixed with diesel oil • Need to solve technical issues – acidity, immiscibility and viscosity • ROI technology, 30% of the capital required by competitors • Competitive with #2 Fuel oil

25. BIOREACTOR FOR PRODUCING CHEMICAL PRODUCTS FROM WOOD

26. ADVANTAGES OF ROI PYROLYSIS EQUIPMENT • Small, modular and transportable • Mobility reduces transportation costs. • Woody biomass for fuel study in New Hampshire - $16/wet ton to cut, skid, chip and truck low grade wood chips. Owners - $0.50 to $1.50/ton stumpage • Reduction of harvesting costs. Alternative harvesting systems for 10 – 12 year old timber thinnings

27. CHEMICALS FROM BIOMASS

28. WHAT NEXT FOR BIOMASS UTILIZATION? • US DOE and USDA committed to expanding role of biomass as a source of energy and chemicals • View this as a way to support new industries in the form of biorefineries manufacturing fuels, chemicals and other products • Additional work is required to develop appropriate conversion technologies and to determine the impact of Forest Biomass Utilization on traditional Forest Products markets