Bioenergy: Lighting a Fire in Ontario
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1 Bioenergy: Lighting a Fire in Ontario Megan Smith Program Specialist Forest Bioeconomy Ministry of Natural Resources and Forestry November 4, 2014 H. Neufbrand, MNRF
2 Forest Industry Division Vision: Dynamic industry, thriving communities, sustainable forests Mission: We promote and support a prosperous forest industry while ensuring fair value for the people on Ontario Role: Develop a competitive business environment, facilitate investment, promote transformation and stimulate demand for Ontario s forest products
3 Action Areas Objectives Ministry of Natural Resources and Forestry Forest Bioeconomy Strategic Framework Vision: Ontario is home to a competitive, sustainable, and dynamic bioeconomy that takes full advantage of forest resources. Goal: MNRF enables industry and communities in becoming leaders in developing products that support the forest bioeconomy through industry process integration, collaboration and innovation. Develop and implement policies that support the diversification of Ontario s forest bioeconomy. Enhance collaboration, knowledge transfer and information sharing to promote the forest bioeconomy. Enhance access to biofibre and create opportunities for community/ Aboriginal development. Attract high value investors and retain/ increase skilled workforce in the forest bioeconomy. Maximize value from forest-based feedstocks and by-product streams. Research & Innovation: Stimulate innovation and commercialization through research and collaboration. Enabling Policy: Develop policies, programs and incentives to support sustainable, bioproduct innovation and investment. Coordination Investment & Market Development: Drive industry transformation and new investment to stimulate market demand for forest bioproducts. Outreach: Provide the necessary tools to make informed decisions regarding participation in bioeconomy supply chains. Guiding Principles: Alignment of initiatives and activities to provincial priorities. Land and resource management practices support environmental, social and economic sustainability.
4 Volume (Millions - Cubic Metres/Year) Ministry of Natural Resources and Forestry Ontario s Forest Industry Annual Utilization of Crown Resources: 35 Actual Unmerchantable Harvest Actual Merchantable Harvest Available Volume Scaling Year
5 Transforming Ontario s Forest Products Sector Develop a new forest bioeconomy: Economic activity based on the manufacture and use of next generation products including energy in whole or in part from bio-based resources on a sustainable basis that spans the innovation continuum from basic research to commercialization; and the supply chain from feedstock to product. S. MacPherson, MNRF maximize value of forest resources by utilizing all forest residues and by-products of primary processes integrate new products within the existing forest products industry to maximize jobs and financial returns M. Smith, BIC promote linkage, partnership and coordination across the bioproduct value chain M. Smith, BIC
6 Forest Sector Revitalization Goals: Expand green energy production Produce value-added products Develop new export markets Attract foreign investment Promote Aboriginal economic development J. Campbell, MNRF Examples of Initiatives: Forest Bioeconomy Team (2008) Forest Biofibre Directive (2008) Centre for Research and Innovation in the Bioeconomy (CRIBE) (2008) Provincial Wood Supply Competitive Process (2009) Forest Tenure and Pricing Review (2009) Ontario Forest Modernization Act (2011) Ontario Wood Brand (2011) Establishment of Ontario s first Local Forest Management Corporation (2012) Ontario Available Wood Report (2013) Economic Analysis of Public Policies Supporting the Forest-Based Bioproduct Sector in Ontario and Other Jurisdictions (2011) Exploring Small Scale Biomass Fired Organic Rankine Cycle Technology as a Northern Ontario Energy Solution (2013) Supporting Biomass Heat Project (2013)
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, MNRF 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, MNRF J. Maure, MNRF
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 uses
10 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 Pellets 23% Pulp & Paper 13% Value-added 2% Bioenergy 28% Lumber 31% Panel Products 3%
11 Ontario Available Wood Report Available from:
12 Ontario Available Wood Report
13 Ontario s Green Economy Ontario s Green Policies: Green Energy Act Feed-in Tariff Program Cessation of coal-fired electricity at Ontario s power plants Ontario s Bioenergy Sector: Evolving, but no provincial strategy Needs developmental support MNRF s initiatives
14 Supporting Biomass Heat Why Support Biomass Heat?
15 Opportunities Potential Heat Users: Residential primary and secondary heat Commercial / Institutional (M.U.S.H. sector, SME s, multi-unit residential) space and water heating Industrial space and process heat Considerations: Using local fibre (forest, agriculture) and urban wood waste Bagged and bulk delivery systems Developing the supply chain to support future higher value bioproducts K.A. Campbell, MNRF
16 Opportunity Areas Without Natural Gas Ontario s Natural Gas Transmission Network and Franchise Distribution Areas: Source: Making Choices: Reviewing Ontario s Long-Term Energy Plan, Ontario Ministry of Energy, 2013
17 Opportunity Blue Sky Region Natural Gas Lines and Service Area in the Blue Sky Region of Ontario Facilities Consuming Wood Source: Roadmap for Biomass Industry Development in the Blue Sky Region of Ontario, TorchLight Bioresources, 2013 Source: Queen s Printer for Ontario, 2014
18 Opportunity North Shore of Lake Superior Area comprised of six municipalities and six First Nation communities Primary heat sources: oil (34%), wood (32%) and electricity (30%) Wawa primarily oil heat Source: NSFC Source: NSFC Source: MNRF
19 Opportunity Remote Communities Northwestern Ontario: 32 diesel dependent communities 35 million litres of diesel fuel used annually Distributed energy? Combined heat and power?
20 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
21 Wood Heating Systems <3MW 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
22 Wood Pellet Supply and Distribution Logistics Marketing plan for commercial wood pellet applications GIS logistical analysis
23 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
24 Discussion Paper and Jurisdictional Review Internal government discussion paper Biomass Heat: What s in it for Ontario? Highlight the environmental, social & economic reasons to support biomass heat Jurisdictional review to illustrate successes of other regions Associated workshop & facility tour
25 Lighting Fire in Ontario Creating the Initial Spark Identify bioenergy champions and get them involved Create a strong, unified voice and coordinate activities among all parties Identify the most promising markets and develop niches locally Focus on a few single asks that can be accomplished in 2-3 years Communicate, celebrate & showcase successes! M. Smith, BIC
26 Contact Information Megan Smith Program Specialist Forest Bioeconomy Ministry of Natural Resources Forest Industry Division Sault Ste. Marie, ON (705) S. MacPherson, MNRF M. Smith, MNRF
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