Future geothermal opportunities in wood processing. Ian Suckling, Peter Hall and Michael Jack Above Ground Geothermal Technologies Workshop July 2014
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1 Future geothermal opportunities in wood processing Ian Suckling, Peter Hall and Michael Jack Above Ground Geothermal Technologies Workshop July 2014
2 Wood processing is energy intensive Wood Water Chemicals Processing plant Wood product Combustion Electricity Process heat 2011 Energy intensity (PJ per Billion $) Business weighted average 2.3 Agriculture, forestry & fishing 3.4 Wood, pulp, paper & printing 19.0 Basic metals 16.3
3 Co-location of Geothermal and Forest Resources
4 Talk outline Forestry sector Existing synergies Future opportunities Industrial symbiosis Residue opportunities Biofuels Conclusions
5 Current: Future: High log export volumes Low productivity wood processing Selling into mature markets Greater on-shore wood processing Innovative solid wood products New fibre-based products, biofuels and biochemicals Exports: $4.5 B $12 B (2022)
6 New Zealand wood flows 2012 Total log input 27.5 Volumes in millions m 3 roundwood equivalents Log & chip exports % On-shore processing % 4.5 Poles 0.4 Sawlogs & peelers 8.4 Pulp 3.7 Reconstituted panels 0.9 Energy 61.1 GPJ Forest residues n/a Plywood 1.2 Sawmills 7.3 Plant residues 3.8 Redrawn from: FOA/MPI - NZ Plantation Forest Industry Facts & Figures 2012/2013
7 Existing synergies
8 Kawerau site Electricity Process steam for 4 existing wood processing facilities largest industrial direct use of geothermal energy in the world for over 50 years
9 Wood drying MW direct heat plant installed at Tenon s Taupo wood processing plant Replaced natural gas, cutting fuel bill & carbon footprint Led to significant efficiency gains
10 WoodScape analysis of impact of geothermal P. Hall - Analysis of wood processing opportunities in Kawerau using the WoodScape model (2013)
11 Future opportunities Industrial symbiosis Residue opportunities Biofuels
12 Industrial symbiosis Industrial symbiosis is an association between two or more industrial facilities or companies in which the wastes or coproducts of one become the raw materials for another. Industrial symbiosis can help companies: Reduce raw material and waste disposal costs Earn new revenue from residues and byproducts Divert waste from landfill and reduce carbon emissions Open up new business opportunities Opportunities will be site-specific
13 Industrial symbiosis Kalundborg, Denmark M Chertow J. Industrial Ecology 11(1): 1 (2007).
14 Traditional wood processing Wood Conversion process Wood product Process steam Combustion Residues Two inefficiencies: 1. Combustion 2. Reduced temperature
15 Industrial symbiosis Wood Conversion process 1 Wood product Residues Geothermal heat Conversion process 2 Biochemical or biofuel
16 Residue opportunities Bark Wood adhesives Nutraceuticals Biofuels Horticultural applications Sawdust Pellets Biofuels Biochemicals Bioplastics Lignin Surfactants and binders Aromatic chemicals Carbon fibre
17 WoodScape analysis: separate plants Wood 350,000 m 3 /yr Industrial sawmill 182,000 m 3 /yr Sawn lumber Residues 168,000 m 3 /yr Wood residues 340,000 m 3 /yr Biofuel plant Biofuel 45 M L/yr Wood 350,000 m 3 /yr Plywood mill 178,000 m 3 /yr Plywood Residues 172,000 m 3 /yr Weighted ROCE 15.6%
18 WoodScape analysis: industrial symbiosis Wood 350,000 m 3 /yr Industrial sawmill 182,000 Sawn lumber 168,000 Geothermal heat Biofuel plant Biofuel 45 M Litres 172,000 Wood 350,000 Plywood mill 178,000 Plywood +17% gain in weighted ROCE: 15.6% 18.3%
19 Biofuels - cellulosic ethanol Feedstock Pretreatment Enzymes Enzymatic hydrolysis Sugar solution Residue (process heat & electricity) Fermentation Ethanol
20 New Zealand Lignocellulosic Biofuel Initiative Chips Preheating Attrition Enzyme hydrolysis Sugar syrup Refining Heat & power Saccharification residue Lignin Acid hydrolysis Neutralisation Pressate syrup
21 Relative Production Costs Research driven by techno-economic model Capital Operating
22 Operating Costs, $/tonne sugars Operating cost
23 Conclusions Strong regional opportunities for synergies between geothermal resources and wood processing Additional uses for geothermal Improve utilisation of wood resource Industrial symbiosis opportunity Opportunities Reduce conventional wood processing costs Re-direct wood residues from process heat to saleable co-products Enhance viability of new bioproduct opportunities
24 Thank you +(64)
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