Ministry of Natural Resources and Forestry. Waking-up Northern Ontario s Bioeconomy
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1 Waking-up Northern Ontario s Bioeconomy David Repath, Forest Economics Section, Forest Industry Division September 8, 2014
2 Strategic Government Alignment Strategic Goals Fiscal responsibility Economic & community development, including First Nations communities Innovation, diversification & competitiveness Environmental stewardship GHG reductions for Ontario & Infrastructure Ontario Strategic Documents Growth Plan for Northern Ontario (2011) Our Sustainable Future (2011) Long-Term Energy Plan (2013) Provincial Policy Statement (2014) Far North Act (2010)
3 Ontario s Forest Sector Annual Utilization of Crown Resources 25,000,000 20,000,000 Volume (cubic metres) 15,000,000 10,000,000 5,000, / / / / / / / / / /2014 Bioproduct Composite Pulp Paper Sawmill Veneer Other
4 Forest Sector Revitalization Goals: Expand green energy production Produce value-added products Develop new export markets Attract foreign investment Promote Aboriginal economic development L Watkins, MNRF
5 Forest Bioeconomy Initiatives - Completed Forest Bioeconomy Team (2008) Forest Biofibre Allocation & Use Directive (2008) Centre for Research and Innovation in the Bioeconomy (CRIBE) (2008) Provincial Wood Supply Competitive Process (2009) Forest Tenure and Pricing Review (2009) The Ontario Forest Modernization Act (2011) Establishment of Ontario s first Local Forest Management Corporation Nawiinginokiima Forest Management Corporation (NFMC) (2012) An Economic Analysis of Public Policies Supporting the Forest-Based Bioproduct Sector in Ontario and Other Jurisdictions (2011) Ontario Available Wood Report (2013) ORC Workshop Exploring Small Scale Biomass Fired Organic Rankine Cycle Technology as a Northern Ontario Energy Solution (2013)
6 Forest Bioeconomy Initiatives - Current Sustainable biomass harvesting research Investment attraction and export market development Supporting Biomass Heat Project Development/Adaption of Standards for Solid Biomass Heating Equipment in Canada Bioeconomy Policy Discussion Paper
7 Forest Biofibre Directive Forest Biofibre Allocation and Use Provides general direction for the allocation and use of forest biofibre beyond traditional uses. Goals: Create and support new opportunities to diversify Ontario s economy Encourage the use of forest biofibre to reduce Ontario s dependence on fossil fuels Source: FPAC
8 Forest Biofibre Forest resources from Crown forests that are not normally being utilized for conventional forest products and that are made available under an approved forest management plan J. Maure, OMNR Includes: Tree tops, cull trees or portions of trees; Individual and stands of unmerchantable and unmarketable trees; and Trees that may be salvaged as a result of a natural disturbance. M. Smith, OMNR J. Maure, OMNR
9 Forest Biofibre Directive Pricing: Incentive to develop and support existing industry New category added to Ontario Crown Timber Charges Unmarketable Fibre Scaling Manual Standards Unused Roundwood Minimum Charge $0.00/m 3 Residual Value $0.00/m 3 Forestry Futures $1.08/m 3 Forest Renewal $0.25/m 3 minimum* Unmerchantable Fibre 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 $1.33/m 3 minimum Total $0.00/m 3 Bioproduct: Production of chemicals & materials, energy from the combustion of wood or biogas, liquid fuels, and solid fuels for commercial or industrial
10 CRIBE Company Ensyn Technologies Inc. (Renfrew) GreenField Ethanol (Chatham) GreenField Speciality Alcohols (Chatham, Terrace Bay) G2 BioChem & Lakehead University (Chatham, Thunder Bay) MAGNA Interiors & Exteriors (Vaughan) FPInnovations, Resolute & Lakehead University (Thunder Bay) THESIS Chemistry Inc. (Cambridge) OPG, Resolute & Lakehead University (Thunder Bay) GreenCore Composites (Vaughan) Rentech (Atikokan) Laurentian University (Sudbury) Confederation College (Thunder Bay) Bio-product / Bio-Initiative liquid biofuel conditioning and pre-treatment of biomass recovery of clean sugars value-added chemicals from hemicellulose, lignin and bark composite materials lignin extraction oxo-aromatic chemicals from lignin biochar composite materials wood pellets showcasing the use of solid wood and crosslaminated timber (CLT) OPG Bio-Energy Learning and Research Centre
11 Encouraging Use of Biofibre Provincial Wood Supply Competition Attract new investment in the forest sector, and support new and innovative ventures Identify companies and allocate previously unutilized Crown wood volumes Single largest wood supply competition in Ontario 33 projects representing 3.7 million m 3 Unallocated fibre represented in Ontario Available Wood Reports Available from: wood-available-ontario Panel Products 3% Pellets 23% Value-added 2% Pulp & Paper 13% Lumber 31% Bioenergy 28%
12 Investment Attraction Business Development Branch is the primary contact for forestry related investment leads Familiarize foreign investment with the landscape of the forestry industry in Ontario Facilitate business to business arrangements related to wood supply inquiries Mill Opportunity Directory developed to match inquiries or opportunities received by MNRF to Ontario based operations For more information contact
13 Export Market Development Offering advice and market intelligence to exporters along with training opportunities to be export ready Partner with other provinces and federal government to promote the culture of wood use in new markets Attending international conferences/trade shows to promote Ontario exports & attract investment (e.g. Industry Forum Pellet, Berlin 2014) Raising awareness and promoting Ontario s value proposition (e.g. sustainably managed and available forest resources) For more information contact Joe.Maure@ontario.ca
14 Supporting Biomass Heat Why Support Biomass Heat?
15 Supporting Biomass Heat Project Goal To improve the business and policy environment for the use of solid biomass fuels for heat in Ontario Approach Multi-ministry & multi-partner to leverage efforts and resources Coordinated & streamlined Multi-faceted policy, research & development, investment & market development, outreach Short, medium and long term objectives & deliverables South Shore Education Centre Nipissing Village M. Smith, BIC
16 Bio-Heat Community of Practice Developing a Bio-Heat Community of Practice People who share a common interest and who work together to expand their individual and collective capacity to support the development of a domestic biomass heat market over time. MNRF is committed to helping develop Ontario s Bio-Heat Community of Practice Hosted workshop in Feb 2014 Monthly e-newsletter Participate in partners outreach activities To sign-up for the e-newsletter contact: Megan.Smith@ontario.ca M. Smith, MNRF
17 Wood Heating Systems <3 MW ECA Interim Guidance Gather information Wood fuel characteristics Combustion/gasification technologies Air emission performance indicators International jurisdictional best practices Equipment manufacturers survey Stakeholder Working Group and Technical Specialists Working Group Development of a new interim guidance document for small-scale wood combustion ECA permits in Ontario Our Lady of Mercy Catholic School - Bancroft M. Smith, BIC M. Smith, BIC
18 Wood Heating Systems <3 MW ECA Interim Guidance Informal Working Group Meet and Greet Meeting Room TBD Prince Arthur Waterfront Hotel and Suites Thunder Bay Ontario Thursday September 11, :30 4:00 pm
19 Wood Pellet Supply and Distribution Logistics Marketing Plan for commercial wood pellet applications GIS logistical analysis
20 National Initiatives to Support Biomass Heat Development/Adaptation of Standards for Solid Biomass Fuels & Heating Equipment in Canada Funding Support from NRCan s Program of Energy Research & Development (PERD) Steering Committee provides in-kind contribution & direction biomass fuel producers, equipment manufacturers, end users, NGOs, provincial & federal governments, technical experts Focus on adoption of ISO solid biomass standards in Canada Future work linking fuel standards to potential equipment standards
21 Communities Supporting the Bioeconomy Start with Bioenergy Opportunities Primary and secondary residential heat Commercial and institutional heat CHP and district energy Using LOCAL biomass Developing the supply chain to support future higher value bioproducts Are you a Bioeconomy Champion?
22 Contact Information David Repath A/Manager Forest Economics Section Forest Industry Division Ministry of Natural Resources and Forestry Sault Ste. Marie, ON (705) M. Smith, BIC K.A, Campbell, MNRF
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