Ontario s s Forest Biofibre - Exploring the Potential

Transcription

1 Ministry of Northern Development, Mines and Forestry Ontario s s Forest Biofibre - Exploring the Potential Joe Maure Ontario Ministry of Northern Development, Mines & Forestry Ensuring Forest Sustainability in the Development of Wood Biofuels and Bioenergy in the Great Lakes Region Sept 9, 2009

2 Outline Context Policy Forest biofibre supply Expression of interest

3 108 million ha (267 million acres) 41% of Ontario is located in a zone where commercial forest management is allowed to occur Context

4 Context

5 Context

6 MNDMF and OMNR s Role Government Priority - Strong people, strong economy (a greener economy) MNR s Our Sustainable Future Conserve Biodiversity & Use Natural Resources in a Sustainable Manner MNR s Strategic Objective Economic Growth for Ontario Communities Bioeconomy Program s Strategic Purpose Contribute to the evolution of Ontario s green economy by facilitating the sustainable use of natural resources for biobased products.

7 Policy Drivers Overview Renewable Fuels Standard 5% ethanol in gas since 2007 about 200 million gallons per year Low Carbon Fuel Standard policy in development lifecycle carbon intensity California standards Ontario Ethanol Growth Fund Promote domestic ethanol industry 12 year - $520 milllion grants/operational support program Renewable Energy Standard Offer Program 20 year price guarantee cents/kwh Green energy Act / Feed in Tariff replace RESOP Projects <10 MW 13.8 cents/kwh Projects >10MW 13.0 cents/kwh

8 Policy Drivers Overview Ontario Power Generation / Coal Phase Out by 2014 testing biomass in coal units Call to potential suppliers Forest Biofibre Policy pricing to attract investment Staged competition for fibre supply Loan Guarantee Program $350 million Forest Sector Prosperity fund $150 million Centre for Research and Innovation in the Bio-economy (CRIBE) $25 million program Ontario Biogas Systems Financial Assistance Program 3-year $11.2 million encourage development of biogas industry Carbon Cap & Trade / Offsets from Bioenergy Projects Discussion paper available

9 Biofibre Defined What is Forest Biofibre? Trees or parts of trees from Crown forests that have not traditionally been utilized May include: Unused merchantable trees Unmerchantable trees Undersized material like tops and branches

10 Theoretical Biofibre Supply

11 How much does a tree weigh, anyway?

12 How much does a tree weigh, anyway? Lambert s s equations

13

14 Theoretical Biofibre Volume Caveats Theoretical volumes (m³) provided in the next few slides are based on estimates of supply and consumption; combined with allometric equations and conversion factors all of which are subject to change therefore information are best used in trend analyses. Volumes have not been reduced for economic or operational factors. These theoretical volume estimates will vary from an available supply under the Staged Competition process.

15 Theoretical Biofibre Volume Mill Residue About 600,000 m³ reported as waste annually

16 Theoretical Biofibre Volume Tops/Branches from Current Harvest Estimated that about 1.3 million m³ of tops/limbs volume is produced annually

17 Theoretical Biofibre Volume 50,000,000 Available Harvest & Actual Harvest (Volume m³) 45,000,000 Unutilized Stands/trees There is about 9.6 million m³ of unutilized tree volume annually With an additional 1.5 million m³ of associated tops/limbs/bark annually Volume (m³) 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000, Year Total Available Total Actual

18 Theoretical Biofibre Volume Private lands Private land contributes about 3-4 million m³ of regular harvest annually potential for about 1 million m³ of forest biofibre

19 Theoretical Biofibre Volume Other Sources Estimated 5 million m³ of recoverable tops/limbs from past operations Could possibly retrieve 1 million m³ per year for 5 years

20 Theoretical Biofibre Volume Theoretical Forest Biomass Source Mill Residues (hog fuel, sawdust, bark) - listed as 'waste' on Annual Mill Return Older Slash Piles - (Piled but not burnt due to improper indices, timing issues) Slash (branches) from current forest harvest operations Unutilized but available harvest volume Slash (branches) and Bark asssociated with unutilized but available harvest volume Annual Volume - Million m³ - green Private Lands 1.0 Total 15.0

21 Other Sources Insect, disease, fire, wind salvage potential could provide an additional 7 million m³ annually

22 Other Biofibre Supply Sources Stand Improvement Thinnings, pruning Purpose Grown plantations Alder

23 Biomass Spatial Analysis Tool

24 BSAT - Biomass Spatial Analysis Tool Create spatial patterns (and tabular summaries) of Biofibre from past and planned harvest operations User-defined combinations of harvest systems and forest classification Rapid, iterative what-if scenarios Generic ArcMap application can add all types of biomass Can provide the inventory to link with FERIC s BiOS

25 Biomass Spatial Analysis Tool

26 BSAT - Biomass Supply Biomass location Volume m³ In-Situ - Partial Cuts 285,086 In-Situ - Clear Cuts 385,104 By-passed stands 3,685,205 Roadside 2,691,677 Species Group Volume m³ Jack Pine 640,696 Mix Conifer Lowland 549,942 Mix Conifer Upland 1,793,349 Mixed Wood 928,559 Poplar 1,513,082 Tolerant Hardwoods 1,085,279 White & Red Pine 161,846 White Birch 374,319

27 BiOS Framework Stand Attributes Logging Scenarios Recovery Scenarios Incentives and Contingencies Supply Module Costing Module Results

28 BiOS Flow Total biomass Merchantable (logging) Potentially available Roadside slash Standing residuals Cutover slash Silvicultural and ecological retention Technical usability Harvestable biomass

29 BiOS Results

30 BiOS Results

31 Ontario s s Forest Biofibre Policy The Directive guides the use and allocation of Crown forest biofibre Same allocation / disposition process as for Crown timber Priority for aboriginal opportunities Reinforces need to comply with all Forest Management Planning / EA requirements

32 Crown Biofibre Biofibre is a Crown resource until all Crown charges are paid (CFSA s. 33) Minister has the authority to make available Crown resources SFL holder right has right to harvest and utilize the full available harvest described in the FMP (Section 3.2 of an SFL)

33 Opportunities for Aboriginal involvement Priority Access or Priority Opportunities Benefits for Aboriginal peoples defined in business plans Securing current Aboriginal employment in mills/operations Business Plan requirements/evaluation criteria defined to Support/favour Aboriginal benefits Policy development communications to provincial Aboriginal associations/organizations prior to EBR posting.

34 Pricing of Biofibre Effective April 1, 2008 Unmarketable Fibre Unmerchantable Fibre Scaling Manual Standards Unused Roundwood Minimum Charge $0.00/m 3 Residual Value $0.00/m 3 Forestry Futures $1.07/m 3 Forest Renewal $0.25/m 3 minimum* Undersized Tops & Branches Minimum Charge $0.00/m 3 Residual Value $0.00/m 3 Forestry Futures $0.00/m 3 Forest Renewal $0.00/m 3 Total $1.32/m 3 minimum Total $0.00/m 3 *Forest Renewal is a minimum of $0.25/m 3 set by District Managers based on renewal needs Price is for 10 years to be reviewed after 5 years $ collected go only to forest silviculture & inventory

35 Biofibre Harvest Areas up to April 09 1 cubic meter = 1 green tonne

36 Staged Competition for Unused Wood Supply Support new investment in Value-added added sector Create jobs Wood supply security Improve forest utilization Achieve greater Aboriginal benefits from forestry Stimulate economic development Diversify the forest sector Reduce carbon footprint

37 Biofibre Supply for Competition Sources of Forest Biofibre Annual Supply Millions GMTs Traditionally Unmerchantable (i.e. tops, branches and undersized trees) - from all current harvest operations and from unused and available trees Unused and available trees (i.e. roundwood) Total

38 Staged Competition

39 Staged Competition for Unused Wood Supply Stage One Request for Expression of Interest Deadline was March 3 rd, 2009 Over 130 proponent applications ½ of applications involved manufacture of pellets Other applications include biofuels,, wood composites, essential oils, chemical

40 Stage 1-1 Expression of Interest Summary of Submissions Total submissions (#) 131 Total Crown wood supply Total proposed facilities (#): 143 ~ 43 requested (millions m3/yr): By region: Northeast 71 Merchantable roundwood ~ 27 Northwest 46 Unmerchantable/undersized ~ 8 Southern 15 Unspecified dimensions ~ 8 Somewhere in Ontario 11 Proposed uses for the wood: Capital investment (billions $): 3.4 Bio-energy - pellets 84 Greenfield 2.1 Other bio-energy 52 Existing facility w/ planned Conversion/Expansion/Add'n 1.3 Bio-chemical 4 ~ 12,000 Sawmill (new/expansion) Composite (new/expansion) Value-added Pulp & Paper Other Estimated New Jobs (#): Proposed bio-energy production: Pellets (millions oven dry tonnes) ~ 12 2 Bio-fuel (millions L) ~ Combined heat & power/energy (Mw) ~ 650

41 Staged Competition for Unused Wood Supply Stage Two - Wood Supply Competitive Process This summer a request for proposals Considering submissions from Stage 1 Reviewing available biofibre supply - Consideration for existing industry - Impact of Species at Risk, Room to Grow Detailed business plans required Evaluation Team to review

42 Staged Competition for Unused Wood Supply Stage Three Implementation Successful applicants from Stage 2 Application for a Facility Licence Supply Agreement Amend SFL Permits & approvals

43 Conclusion There is a great deal of interest in making use of Ontario s s forests to support the development of the bioeconomy. Ontario is actively supporting a series of initiatives to advance the development of a forest bioeconomy. We re willing to entertain partnerships to advance areas of common interest as they relate to the use of forest resources for the bioeconomy.

44 Questions???? Joe Maure MNDMF Industry Relations Branch For more information, go to: ontario.ca/forests

45 Tenure Text from 2009 Ontario Budget: The government will review Ontario s s forest tenure and pricing systems, exploring options to improve their design. Working with industry, environmental groups, Aboriginal communities ies and the broader public, the government will help create the best environment possible for Ontario s s forest product businesses to succeed, while balancing this with sustainable practices. Coordination of the Tenure Review Mark Speers Project Director Tenure and Pricing Review Mark.speers@ontario.ca

46 Goals/Objectives of the Project 1. To ensure a healthy diverse and sustainable Crown forest that supports a variety of environmental and socio-economic needs and interests by: Appropriate and sustainable investment renewing the forest Appropriate assignment of public and private sector forest management responsibilities 2. To encourage forest resource sector investment, innovation and employment through: More efficient and open access to Crown forest resources Provision of a continuous, predictable, and cost competitive supply ply of Crown forest resources 3. To increase opportunities for Aboriginal and northern community involvement in the forest resource economy: Increased business and economic opportunities Increased benefits from the forest resources 4. To ensure forest resources are properly valued to provide a fair return Ontarians and to reflect their environmental, social and economic contributions.