Robert W. Gray Fire Ecologist R. W. Gray Consulting, Ltd.

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1 Robert W. Gray Fire Ecologist R. W. Gray Consulting, Ltd. Western Silviculture Contractor s Association Annual Conference Kamloops, BC February 1 st to 3 rd, 2012 The Coast Kamloops Hotel and Convention Center

2 What are the impediments to a greater use of woody biomass in the production of bioenergy? How can the silviculture industry benefit from the development of a larger bioenergy industrial sector?

3 With fire exclusion many of BC s interior ecosystems have experienced a significant change in forest density, species composition, and fuelbed characteristics

4 Low- and mixed-severity predominated historically over much of BC High-severity now predominates throughout much of BC

5 Current state of poor forest ecosystem health is a product of forest structure departure combined with changing climate (decrease in precipitation and increase in temperature) Unfortunately we are still mired in a debate over the state of ecosystem health in BC. Meanwhile in Washington State, the Public Lands Commissioner has declared a Forest Health Hazard Warning. The reason: unnatural overcrowding as a result of past management.

6 Restoring resilience will only come from an aggressive program of forest thinning Over the geographic extent of BC this involves a very large quantity of biomass The only problem is, we don t know how much biomass we are talking about

7 Governments inventory - VRI (Vegetation Resource Inventory): 143 m³/ha merchantable 24 m³/ha unmerchantable average total volume 167 m³/ha 14% 86% Ground-based inventory: 118 m³/ha merchantable 64 m³/ha unmerchantable average total volume 182 m³/ha 35% 65% Actual amounts recovered in harvest operations: 73 m³/ha merchantable 112 m³/ha unmerchantable average total volume 184 m³/ha 60% 40%

8 9 billion tons on federal land in the WUI

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10 Guaranteed supply Without a guaranteed supply of biomass manufacturers will not make capital investments in infrastructure and equipment. Multiple supply chains are preferred in the case that one of them disappears (i.e., mill waste supplies during a downturn in the housing market) Manufacturers need to control their own supply chain as opposed to relying on primary industries to produce biomass. Supply is not an issue for many communities looking at investing in district energy systems. Supply is an issue when it comes to looking at solving the greater biomass issue greater volumes needed, greater investment in infrastructure and equipment (chasing opportunity biomass is not an option at this scale). Source: Becker, D.R., McCaffrey, S.M., Abbas, D., Halvorsen, K.E., Jakes, P., and C. Moseley Conventional wisdoms of woody biomass utilization on federal public lands. Journal of Forestry. 109(4):

11 Lack of industry infrastructure Integrating the harvest of biomass with the harvest of traditional forest products is the only economical way to remove the material from the woods. In regions where the traditional forest product infrastructure has been lost, the economics of removing biomass becomes very difficult. Transportation costs The following are significant transportation issues: Distance to transport traditional forest products (sawlogs/pulp) Distance to transport biomass to a manufacturing facility Distance to transport a manufactured product to market relative to the selling price of the product

12 Profit (loss)/ha Value of biomass A number of factors greatly impact the economic feasibility of biomass harvest, none however, are more important than the value of the material to a manufacturer. $1, Profit (Loss)/Hectare With and Without a Bioenergy Market to Sell Into $1, $ $0.00 ($500.00) $0/BDT $55/BDT $60/BDT $65/BDT ($1,000.00) ($1,500.00) ($2,000.00) Biomass Value Source: Fuel management operations for City of Cranbrook; total revenue from sawtimber harvest averaged $3, and total cost for harvest of all material averaged $5,

13 Scale of the wildfire/ecosystem health problem Scale of the problem is in the millions of hectares. Need to start at the Wildland-Urban Interface and work outward, followed by domestic watersheds, and utility infrastructure. Need to treat the whole landscape not just the most profitable stands.

14 If we don t exploit solar, geothermal, or wind energy there are no economic/social/environmental consequences. If we don t exploit biomass energy we (community/province/nation) will suffer the economic/social/environmental consequences.

15 Social and environmental constraints Particulate emissions from district energy systems and manufacturing facilities Biodiversity impacts from harvesting operations

16 Designate a Special Resource Management Zone around communities for the express purpose of reducing wildfire hazard SRMZ s after all have been established for wildlife habitat and recreation why not wildfire hazard reduction Industry has not shown much interest in treating stands in the WUI (only 2% of WUI treated to date)

17 Sell all merchantable wood harvested at auction Re-invest stumpage back into long-term fuels maintenance and the production of future supplies of feedstock All unmerchantable material is sold to local bioenergy industries Take a landscape approach - profitable stands are used to subsidize the treatment of unmerchantable stands Reduce the AAC to reflect the over-riding land management objective in the WUI i.e., hazard reduction Municipal and Regional District by-laws enacted to convince private landowners to treat their land

18 Individual dwelling and district energy systems Small-scale, uses very little feedstock on an annual basis Industrial manufacture of bioenergy products such as pellets, torrefied pellets, briquettes, biofuels, etc. Large-scale, uses large quantities of feedstock on an annual basis

19 Full-Time Equivalent Employment Example community of 20, Full-Time Equivalent Employment Generated by Activity Over a 5-Year Period District Energy System Design, Build & Operation Source: Fink Equipment and Wood Pellet Association of Canada Pellet Plant Design, Build & Operation Activity Biomass Harvest Operations Indirect/Induced

20 DES for an example community of 20,000: Top 10 public energy users (hospital, schools, rec-plex, curling rink, airport terminal) Annual heating cost for all using natural gas: $849,339 Potential annual cost using biomass boilers: $414,638 Potential annual savings using biomass thermal: $434,701 Potential annual Carbon Tax savings: $60,000 Pellet Plant: increased municipal tax base increased local employment increased revenue (if joint venture) decreased Carbon Tax (areas treated converted to carbon credit)

21 Profit from sale of merchantable and unmerchantable wood goes into silviculture (growing future feedstock) and post-harvest fuels management resulting in a dedicated, consistent, fully-funded program

22 Scale of forest health problem, and the volume of biomass that needs to be treated immediately, is daunting Biomass can be either a windfall to the province and its rural communities, or a significant social, environmental and economic cost Rural communities need to benefit financially from the emerging bio-economy not just multi-national corporations And, we need to act NOW!