Studying about Utilization of Biomass. Inspecting Forest management for Biomass. Exploring Biomass policies and Incentives

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1 Kwangho Baek 1

2 Studying about Utilization of Biomass Inspecting Forest management for Biomass Exploring Biomass policies and Incentives Reviewing the applicability of Policies 2

3 Korea and Korea Forest Facts Biomass Definition and Facts Energy Consumption in Korea Policies & Incentives for Biomass use Challenges to utilization of Biomass Conclusion 3

4 4

5 Total Area: 99,720 km² Oregon State: 255,026 km² Population: 48.6 million Oregon State: 3.8 million Urban population: 81% Climate: temperate, with intensive rainfall in summer Language: Korean Major Industries: Automobiles, Semiconductor, Electronics, Shipbuilding and Steel 5

6 East cross section of the Korean Peninsula 6

7 Total : 9.9 million ha Residential & factory 0.3 million ha (3%) Others 0.9 million ha(10%) Road 0.3 million ha (3%) Arable land 2.0 million ha (20%) Forest 6.4 million ha (64%) 7

8 Total : 6,370 thousand ha 4,350 (68%) 1,350 (24%) 488 (8%) Unit : thousand ha National forest Provincial forest Private forest Private ownership: 2.6 million Average: 2.1ha/person 8

9 Total Volume: 697 million m³(2009) 437 mil m³ (100 m³/ha) 207 mil m³ (135 m³/ha) 53 mil m³ (108 m³/ha) 182 mil m³ (26%) 205 mil m³ (30%) 310 mil m³ (44%) National Forest Provincial Forest Private Forest By Ownership conifer mixed broad-leaved By Forest Type 9

10 Classified from I (under 10 years) to VI (over 51 years) thousand ha % % % 15.3% 8.1% 2.4% 0 I II III IV V VI 10

11 Forestry outputs: $4.4 billion (2009) (0.5% of Korea GDP) Others Lumber Mushrooms, wild vegetable Tree fruits Timber Trees of landscape timber(41%) trees for landscape(17%) tree fruits(13%) mushroom.wild vegetable(12%) lumber(4%) others(13%) 11

12 Demand Supply 27 million m³ 27 million m³ round wood (24%) pulp (46%) plywood (13%) others(17%) domestic (12%) imports (88%) 12

13 Forest exploitation in colonial period Seongbuk village in Seoul after Korean War 13

14 14

15 Back ground: - Due to the extreme devastation of forest, it caused serious social problems (land slide, severe flood & drought, lack of fuel etc) - After the legal and institutional preparations in the 1960s, the National Forest Plan (Forest Rehabilitation Project) was launched in 1973 The 1 st NFP: Forest Rehabilitation Project (1973~1978) million ha were reforested Planting trees 15

16 The 2 nd NFP: Forest Rehabilitation Project (1979~1987) million ha were reforested, including 80 large-scale commercial forests Erosion control practice 16

17 17 The 3 rd NFP: Forest rehabilitation Project (1988~1997) -Established infrastructure of forest management Forest road The 4th NFP; (1998~2007) - Enhancing forest benefits Recreation forest

18 The 5 th NFP(2008~2017) - promoting SFM to optimize multiple functions of Forests including responding to Climate Change 18

19 19

20 Renewable organic materials, such as wood, agricultural crops or wastes, and municipal wastes, especially when used as a source of fuel or energy. 20

21 Biomass use (Traditional Home Heating System) Biomass use Rice straw Fire woods 21

22 Crackdown on Biomass Collection 22

23 Developed alternative energy Carriage & Storage Coal briquete Changing Briquete every 4-5 hours Oxygen Treatment for Gas Poisoning 23

24 Energy Consumption (Korea) million toe industrial (59.4%) home (11.2%) comercial (8.0%) transportaion (19.1%) public(2.3%) Oil, Heat, Gas Consumption Industiral (51.4%) Comercial (27.8%) Home (14.1%) Public (6.2%) Transportation (0.5%) Electricity Consumption 24

25 Home, commercial; 41.9 % of electricity Transportation; 19.1% of oil Industrial: 59.4% of oil, heat, gas 51.4% of electricity 25

26 $121.7 billion = 28.6% of total imports domestic production (3.5%) million toe Types of Energy imports (96.5%) 1 toe(tonnage of oil equivalent) = million Btu (British thermal unit) Domestic production: LNG, COAL, RENEWABLE 26

27 ㅇㅇㅇ W 27

28 Biomass Facts As of 2000, 1250 billion metric tonnes of biomass (80% in trees), equivalent to about 60 years of world energy use 4 th largest energy resource (supplies 14% worldwide primary energy) Increasing demand for biomass in developed countries(eu & USA) In the US, biomass provide about 4% of energy and half of biomass energy was from wood and its byproducts 28

29 29

30 Solid wood Bioethanol Bio gas Wood pellet Bio diesel Landfill gas 30

31 Benefits of Using Biomass Economic benefits Create jobs and boost local economy Save money importing fossil fuel Stabilize and develop forest industry Increase tax revenue in local or regional basis Environmental benefits Reduce air pollution (no sulfur emission) Reduce animal, food processing and municipal waste Reduce use of landfill and treatment cost Improve watershed quality Reduce wildfire (in USA) 31

32 Farm Bill - Food, Conservation, and Energy Act 2008 EISA - Energy Independence and Security Act 2007 EpAct - Energy Policy Act 2005 Tax Code Biomass definitions typically contain three components: agriculture (e.g., crops), forestry (e.g., slash, pre-commercial thinning), and waste (e.g., food, yard) 32

33 No legal definition MOU among Department of Agriculture, Energy, and Interior trees and woody plants, including limbs, tops, needles, leaves, and other woody parts, grown in a forest, woodland, or rangeland environment, that are the byproducts of restoration and hazardous fuel reduction treatments 33

34 Dept. of Agriculture Dept. of Energy Title IX of the Farm Bill - allows biomass removal from Federal land as feedstock, and allows removal and development of woody biomass on Federal land Title II of EISA - allows woody biomass from Non-Federal land Definition excludes as biofuel feedstocks: biomass removed from federal lands and crops for forested lands (e.g., timber harvests) 34

35 Biomass in Law (Korea) Framework Act on Low Carbon, Green Growth(Jan, 2010) Article 24 (Facilitation of Recycling of Resources) (1) The government shall prepare various measures for fostering and supporting the resources recycling industries.. (2) Measures for fostering and supporting the resources recycling industries shall include following matters; 5. Collection and utilization of biomass, such as wood, plant, and agricultural produce, that may be used as resources for energy Act on Allocation of Greenhouse Gas emissions and Trade ( ) Introduced Cap-and-Trade system 35

36 Korea Biomass Policy National Development Paradigm Shift(208) Introduction of Low Carbon, Green Growth Policy - Promoting to use alternative sources of energy - Targeting reduction of greenhouse gases emission - Introduction of Cap-and-Trade system Korea Forest Service Policies - Expanding and Protecting of Carbon Sinks - Converting woody biomass into energy 36

37 37

38 Wood Pellet Production & Consumption Ton (Korea) Capacity Consumption Imports Domestic New Pellet Plant: ( 08) 1 ( 09) 9 ( 10) 17 ( 11) 20 - Pellet Boiler: ( 09) 2,991 ( 10) 6,882 ( 11) 10,957 subsidies grant to 70% to home owner 38

39 Federal Policies (Began with the Public Utility Regulatory Policies Act of 1978) - The National Energy Policy Act of Executive Order The Biomass Research and Development Act of The Farm Bill of The Healthy Forest Restoration Act of The Energy Policy Act of The Energy Independence and Security Act of The Food Conservation and Energy Act of America Recovery and Reinvestment Act of 2009 MOU of the US Department of Agriculture, Interior, and Energy 39

40 Federal Incentives - Federal Renewable Energy Production Tax Credit - Grants for Forest Biomass Utilization - Grants for Forest Biomass Utilization Research and Development - Grants for Small Enterprises, Training, and Outreach - Incentives for Biomass Producers 40

41 year wood waste Biofuels Total , , , , , , , , , , , , , , , ,372 3, , ,567 3, , ,855 4,295 41

42 State and Local Policies - Generation Disclosure Rules - Renewable Portfolio Standards - Interconnection or Line Extension Analysis - Construction and Design Standards - Green Power Purchasing/Aggregation Policies - Green Pricing State and Local Incentives - Net Metering - Public Benefit Funds 42

43 43

44 Securing the long term supply of Biomass High cost of biomass collection / transportation (Not Cost effective) Perception of GHG emissions/not Co2 neutral (EPA Tailoring rule) Concerns about deforestation (Sustainable supply of wood need) 44

45 Same as USA, plus; 90% of timber imported ( lack of domestic biomass resources) - another dependency on foreign energy Most forest activities depend on labor - Collection: $100/ton Vs $30-40/ton - Providing as pulp is more competitive Big differences in consuming patterns - Small Boiler Vs Heat / Electricity generator 45

46 No other best options than Biomass energy - Renewable, Distributed, Indigenous, Sustainable, Low Carbon Footprint Successful utilization of Biomass requires; - thorough consideration on community (State) condition (biomass resources, cost of production, energy patterns, scale of facilities, infrastructure) - Support from the public and government (drawing people attention, Integrated policies and incentives, development of technology and Biomass market) 46

47 Questions? 47

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