Roadmap for Biomass Industry Development in the Blue Sky Region of Ontario

Transcription

1 Roadmap for Biomass Industry Development in the Blue Sky Region of Ontario Biomass Regional Workshop Wednesday, May 29 th, 2013 Nipissing University North Bay, ON

2 Project Team Biomass Innovation Centre Megan Smith Project Management Dawn Lambe Project Support Graham Casselman Project Support TorchLight Bioresources Jamie Stephen Project Management Warren Mabee Expert Input and Review Kirby Calvert GIS Analysis 2

3 About TorchLight Bioresources Founded in 2008 Critical analyses of bioresources, biomass energy, and biofuels Feasibility studies, technology assessment and due diligence, regional and national assessments, decision support Bioenergy and bioproducts is a very broad field TorchLight operates as network of experts with strategic partners Typically two approaches: 1. We know what we want how to we get there? 2. We have biomass what should we do? 3

4 Biomass Roadmap Background Purpose: Identification of the most feasible and promising bioenergy, biochemical, and bioproduct opportunities for the Blue Sky Region & create a plan to develop those opportunities Approach: Biomass resources Regional asset strengths and weaknesses Bioenergy, biomaterial, biochemical options Case studies Policy and regulatory environment Recommendations and roadmap 4

5 Overview Part 1 1. Biomass Resource Assessment 2. Assets Assessment (Strengths& Weaknesses) Part 2 3. Product Options Assessment 4. Biomass Aggregator 5. Case Studies 6. Recommendations 5

6 Roadmap for Biomass Industry Development in the Blue Sky Region of Ontario Part 1 Regional Assets, Strengths, and Weaknesses

7 Blue Sky Region 50,000 km 2 Population of 125,000 North Bay is Regional Centre (Pop. 55,000) Nipissing & Parry Sound Districts Gateway to Northern Ontario 7

8 Biomass Resources Forestry Roundwood Available wood Available harvest (AAC) vs. planned harvest vs. actual harvest Species, merchantability, cost of acquisition Harvest residues Species, silviculture regime, and harvest practices Full tree, tree length, cut-to-length impact location & cost Mill residues Chips, sawdust/shavings, hog fuel Volume mill dates, lumber recovery factor Competing users 8

9 Forest Resources Five FMUs ~0.9 M m 3 /yr available roundwood ~300,000 bdt/yrof harvest residues Majority of wood is processed by facilities outside the Region 9

10 Biomass Resources Forestry Merchantable Wood 10-year average annual planned harvest = 2.7 M m 3 Tolerant hardwoods, White/red pine, Poplar, & White Birch dominate Non-Merchantable Wood 10-year average annual planned harvest = 0.4 M m 3 SPF, Poplar, & White Birch dominate Harvest Residues Conservative recoverable estimate = 20% of harvest volume 181,000 bdt/yr from harvested timber 97,000 bdt/yr from available wood (unharvested timber) 10

11 Forest Resources Available Wood Forest Management Unit Available Wood ( 000 m 3 ) Temagami 96 Sudbury Forest 310 Nipissing Forest 318 French-Severn Forest 30 Algonquin Park Forest 164 TOTAL ,000 m 3 ~460,000 bdt~ 2.37 M MWh~ 90 MWe(@ 30% ƞ) 11

12 Forest Product Facilities ~600,000 m 3 allocated in SFL commitment Rest of fibre is allocated in overlapping agreements or open market purchases Large volume of Blue Sky Region fibre processed at facilities outside of the Region Tembec Temiscaming pulp mill & Huntsville sawmill Domtar Espanola pulp mill GP Northwoods OSB plant EACOM Nairn Centre sawmill Largest mills in the Region: GoulardLumber (>150,000 m 3 /yrinput), R. Fryer (>50,000 m 3 /yr), Jules & Fils(>30,000 m 3 /yr) 12

13 Biomass Resources Agriculture Harvest Residues Based upon crop production statistics Material other than grain (MOG) to grain (G) ratios Crop rotation patterns Seasonality & annual variation Animal Wastes Manure from cattle, pigs, chickens animal density key Anaerobic digestion typical use Biomass Crops Land class & productivity; identified vs. actual Marginal vs. high quality; Existing use 13

14 Agriculture Nipissing and Parry Sound Districts Low density of cropland Great Northern Clay Belt not located in the Blue Sky Region Land classified cropland far exceeds actual planted area (185,000 ac vs. 37,000 ac) ~90% cropped area is hay 14

15 Agricultural Resources Crop Residues District Crop Production (t) MOG:G Biomass (t) Oats Nipissing ,365 Parry Sound Barley Nipissing 1, ,132 Parry Sound Mixed Grains Nipissing Parry Sound 1, ,890 Total Nipissing & Parry Sound 3,681 4,956 Hay Nipissing 35, Parry Sound 16,

16 Agricultural Resources Manure Cattle 11,100 total head; 0.6% of Ontario total Manure production estimated at 17,500 bdt/yr Further investigation on distribution required Potential for small-scale AD project? Pigs 1,700 pigs; 0.06% of Ontario total Not a major source of biomass Sheep 3,100 sheep & lambs; 0.98% of Ontario total Not a major source of biomass 16

17 Cropland Class & Biomass Crops 185,000 ac (75,000 ha) of cropland 20% of Class 3 & 4 6 t/ha-yr= 25,000 bdt/yr Biomass price must justify establishment costs 17

18 Regional Assets Assessment Transportation Road, rail, marine, air Energy Electrical grid, natural gas Human Resources Population, income, sectors of employment Education level and institutions Existing Industries & Institutions Comparison and analysis of existing bioindustrial clusters 18

19 Road Good highway infrastructure Twinning of 11 completed Low density (especially north of North Bay) Truck traffic from N. Ontario & Western Canada passes through Region North Bay 1 day s trucking distance from 100 M people 19

20 Delivery Example of 100 km trucking distance catchment area North Bay and Sturgeon Falls geographic centre of Blue Sky Region 20

21 Rail Lines from Northern Ontario to North Bay and Sudbury CN, CP, Northland, Ottawa Valley Limited sidings for large volume transfers Forest products railcars? 21

22 Electricity 2 Lines from Dymondto North Bay (115/230 kv) One 230 kv line E-W Sudbury to Mattawa Main N-S Line from Sudbury to Parry Sound PreFitconsultation with Hydro One 50 MWeat North Bay 150 MWeat Trout Lake Enabling projects for south of North Bay? 22

23 Natural Gas TransCanada Pipelines Main Line Union Gas provides local distribution ~10 towns lack NG Opportunities for smallscale bioheat Largest municipality with no NG is French River (~2,500 people) NG to complement biomass in large urban projects 23

24 Population Information Jurisdiction Population (2006) Ontario 12,851,820 Blue Sky Region ~127,000 Nipissing District 84,735 Parry Sound District 42,160 North Bay 53,651 West Nipissing 14,150 Parry Sound 6,195 Callander 3,865 24

25 Sectors of Employment Nipissing & PS 25

26 Largest Employers in Nipissing District 1. Near North District School Board (>2,000) 2. North Bay Regional Health Centre (>2,000) 3. Nipissing University (>1,000) 4. Canadore College (>500) 5. Northland (>500) 26

27 Highest Level of Education Nipissing 27

28 Highest Level of Education Parry Sound 28

29 Roadmap for Biomass Industry Development in the Blue Sky Region of Ontario Part 2 Bioproduct Options Analysis, Case Studies, and Recommendations

30 Product Options Assessment Bioenergy Bioheat & bioelectricity (CHP) Pellets & transportation biofuels Solid Wood & Pulp Products Pulp, lumber, & panels not analyzed (existing producers) Trusses & I-joists Structural composites (LSL, LVL, PSL, OSL) Massive timber (CLT, Glulam) Biochemicals & Bioproducts Cellulose, sugar, and lignin derivatives Intermediates 30

31 Bioheat Small-scale (<5 MWth), low temperature & pressure biomass boilers Thousands of installations in Europe off-the-shelf technology Permitting has been more difficult in Canada & US Commercial, institutional, residential, industrial customers Typically fuelled by wood chips or pellets Recommendation Case Study on bioheat for schools not heated by natural gas 31

32 Bioelectricity & CHP Several technologies for producing electricity from biomass Steam, gasification, organic Rankine cycle Economies-of-scale Co-generation of electricity and heat Combination with district energy Recommendation Case Study on CHP system with district energy system for North Bay institutions 32

33 Lignocellulosic Biofuels Production of transportation fuels such as ethanol and FT liquids from lignocellulosic biomass First commercial facilities (ag residue) newly constructed Significant technology and market risk Large-scale facilities Capital investment >$200 M Recommendation Cellulosic biofuels should not be a short-term priority for stakeholders in the Region 33

34 Wood Pellets Compressed wood particles Biomass commodity for residential & industrial use Requires size reduction, drying, pelletization Europe is by far largest market rapid growth Demand based upon carbon reduction targets US Southeast fastest growing producer Recommendation Proceed cautiously with investment in pellets due to reliance upon European market & relatively high cost of production 34

35 Pulp, Lumber, & Panels Production expansions best handled by existing producers Pulp Kraft Domtar Sulphite & Specialty Cellulose Tembec Lumber GoulardLumber, R. Fryer, Jules & Fils Tembec Huntsville EACOM NairnCentre Panels OSB: GP Northwoods Englehart Veneer: Columbia Forest Products Rutherglen(reopen?) 35

36 Trusses & I-Joists Value-added manufacturing from commodity inputs Standard and custom products Opportunity to utilize lumber from outside the Region Already Regional success Kent Trusses of Sundridge(6 locations) Access to Southern Ontario & Quebec markets Recommendation Encourage value-added manufacturing in the Blue Sky Region 36

37 Structural Composites Laminated Veneer Lumber; Laminated Strand Lumber; Parallel Strand Lumber (Parallam); Oriented Strand Lumber LSL & OSL can utilize lower quality poplar and white birch fibre Some products already in overcapacity situation PSL is Weyerhaeuser proprietary product LVL requires veneer facility Recommendation Explore opportunities for existing facilities to produce structural composite lumber but consider market dynamics 37

38 Massive Timber Cross-laminated timber & Glulam (beams) CLT is new product to NA market dimension lumber for panels Opportunity to use lumber from Northern Ontario sawmills and export to southern markets Market still needs to be established in North America Risk on input-output margins High re-handling costs Recommendation Case Study for CLT production in the Blue Sky Region using lumber from Northern Ontario 38

39 Cellulose, Sugar, and Lignin Derivatives Production requires fractionation of lignocellulose into components Cellulose, hemicellulose, lignin Sugars produced from hydrolysis of cellulose & hemicellulose Tembec already produces a variety of cellulose, sugar, and ligninderived products Add-on to existing Temiscaming mill most likely for new products Recommendation Tembec is already operating a fractionating sulphite pulp mill in Temiscaming & any efforts are likely to benefit from company involvement 39

40 Intermediates Pre-processing of raw biomass into intermediate products Ease transportation & downstream processing to final products Examples: pyrolysis, fractionation, pelletization Smaller, transportable systems could be deployed over time Transport intermediate to large processing centres Recommendation Case Study on intermediate production in the Blue Sky Region from Harvest Residues for export to Sarnia 40

41 Biomass Aggregator Third-party feedstock manager that sources feedstock from suppliers to meet the demands of consumers Counter signatory on supply agreements Allows project & technology developers to focus on core competencies (attract companies to Region) Assists with financing of projects (must be credit worthy) Blue Sky Region Feedstock inventory & supply risk modelling Harvest residue chipping & management Importing feedstocks to Region Intermediate production & delivery 41

42 Case Studies Selected based upon biomass, assets, and products options assessments Concept-level techno-economic analyses 1. Biomass heat for elementary schools Focus on 18 schools not connected to NG grid 2. Large-scale biomass CHP facility Scale and integrate with district energy system (North Bay) 3. Cross-laminated timber production facility Utilize lumber from Northern Ontario sawmills 4. Intermediate production Export to chemical and fuel production hub in Sarnia 42

43 Bioheat for Schools 18 schools (+ other buildings) in the Blue Sky Region not heated by natural gas 15 are Near North District School Board (~$230,000/yr in e-) 220 kw Köb/Viessmann boiler installed at the South Shore Education Centre in Nipissing (not operating) Ideally installed at buildings with hydronics Most schools baseboard/cabinet heaters Pellets vs. chips 43

44 Bioheat for Schools Humphrey School in Seguin used as case study ~24,500 ft 2 Peak heat load estimated at 133 kw (5.4 W/ft 2 ) 240,000 kwh/yr(~$20,000) Viessmann Pyrot150 kw ($300,000) could use smaller unit (e.g., 80 kw and meet peak load with buffer tank/baseboard electric) Chips & bunker Cost of generation estimated at $39/MMBTU (75% is capital) Need capital support program 44

45 CHP for North Bay Institutions District energy system linking NBRHC, Nipissing & CanadoreCampus and residences, MTO building and garages, One Kids Place ~20 MWth peak demand; 45,000 MWh/yr Could scale down (e.g.; 6-8 MWth) and use peaking natural gas 4:1 heat to electricity = 5 MWe(scaled down MWe) ORC is likely most appropriate technology Capital cost for plant estimated at ~$30-35 M (excluding DES) Cost of heat $4-20/MMBTU depending upon operating plan (excluding DES) 45

46 1 mile CHP for North Bay Institutions 46

47 Import dimension lumber (1x4, 2x3) from Northern Ontario Unload, produce CLT, load and export to markets in Ontario, Quebec, & US Dimension lumber glued into large panels ~$600/m 3 ($19/ft 3 ) Precut & clad Reduces construction time Market development Margin risk Cross-Laminated Timber 47

48 Cross-Laminated Timber 48

49 Intermediates Transportable, mobile, or small-scale preprocessing systems Improve biomass characteristics for transportation and downstream processing Examples pyrolysis (biooil), pellets, biomass fractionation (e.g., sugars) Companies and researchers are working on upgrading intermediates to chemicals and fuels Transportation to chemical and fuels cluster in Sarnia 49

50 Intermediates 50

51 Recommendations 1. Establish a biomass aggregator enterprise 2. Support an inventory and price index study on harvest and mill residues 3. Investigate the potential for bulk purchase of biomass boilers 4. Establish a working group on district energy for North Bay institutions 5. Create a bioenergy technology training program at Canadore College 51

52 Recommendations 6. Support an assessment of intermediate technologies 7. Engage with the biofuel and biochemical cluster in Sarnia 8. Support a feasibility study on cross-laminated timber production 9. Continue stakeholder engagement and information-sharing efforts by BIC 10. Form a regulatory and policy advisory committee 52

53 Roadmap for Biomass Industry Development in the Blue Sky Region of Ontario Biomass Regional Workshop Megan Smith Project Manager Biomass Innovation Centre Jamie Stephen, PhD Managing Director TorchLight Bioresources

54 Biomass Roadmap Background Proposal first prepared in 2009; debate on general vs. specific Funded by NOHFC, FedNor, Biomass Innovation Centre Interest from several levels of government RFP in Oct 2012; TorchLight contracted by BIC in Nov 2012 Draft Roadmap prepared Regional stakeholder survey & meeting in February Input from workshop will be used to inform Final Report 54