Biomass Supply Chain Perspectives from Four Continents
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1 Biomass Supply Chain Perspectives from Four Continents World Congress On Industrial Biotechnology Don McCabe Ontario Federation of Agriculture June 17, 2013 Montreal, Canada
2 Overview 1. Definition of a Farmer 2. Ag Land Availability & Stewardship 3. Prioritizing or Meeting Markets? 4. Exploring New Feedstocks for the Bioeconomy 5. Can we do it? Jack Pasternak 2
3 Definition of a Farmer Cash crop Corn, soybeans, wheat farmer Beef farmer Fruit and vegetable producer Egg producer Pineapple plantation Or..
4 Definition of a Farmer Manager of carbon and nitrogen cycles with input from the water cycle to produce starch, oil, protein, fuel, fiber and energy for world wide consumers at the highest quality.
5 The Bioeconomy will need regional crop rotation with proper stewardship to maximize the sun s input to make starch, oil and fiber.
6 Oilseed? Protein source Cash crop? Biodiesel?
7 Oilseed? Protein source? Cash crop? Biodiesel?
8 Everything in this slide has a price point to market Combine and Head (AGCO) Corn (CBOT) Stalks and Cobs (Value chain cooperative or commodity pricing?)
9 Ag Land Availability & Stewardship
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11 Dependable Agricultural Land Source: Environment Canada 1982, Lands Directorate, CGIS Database Statistics Canada 1999, Environment Accounts and Statistics Division, Environmental Information System (EIS) Database
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17 The Canadian Biosphere
18 Acres CANOLA Replacing Summer Fallow Summer fallow rotation - declines as canola integrates into more sustainable crop rotation 25,000,000 20,000,000 Summer fallow declines... 15,000,000 10,000,000 while canola acreage increases, as growers move into sustainable soil conservation practices (Correlation = -0.85) Canola Summerfallow 5,000,000 - Data Source: Statistics Canada Courtesy of: Canola Council of Canada, Canadian Canola Growers Association
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20 Land Use Soil Loss Irrigation Energy Climate Amount of land to produce one bushel of corn Field Notes US Corn s Impacts, Soil loss per bushel, above a tolerable level Irrigation water use per bushel Energy used to produce one bushel Emissions per bushel 37% 69% 27% 37% 30% National Corn Growers Association
21 Soil Equation to Soil System Jenny s Equation for soil formation Soil=f(cl,pm,r,o,t) Soil is a function of climate, parent material, topography, biota and time Farmers are managers of the carbon and nitrogen cycles. Biota and time are the factors that can be managed here.
22 What Does Sustainability Look Like On My Farm?
23 Prioritizing or Meeting Markets? Priority #1 - Feed markets that feed the world. - Logistics and markets exist. - Global competition means constant improvement to meet price points.
24 What Saved Mankind? Introduction of Technology
25 - Soil quality is the result Priority #2 - Feed the soil life - The engines of the C & N cycles.
26 Priority #3 SUSTAINABLE ag residue removal for Composites, chemicals, fuels and energy IF THE PRICE IS RIGHT!
27 Exploring New Feedstocks for the Bioeconomy OFA Agricultural Biomass Research Projects Purpose Grown Crops miscanthus, switchgrass, others
28 Value Chain Approach Initially a combustion approach based on public policy to replace coal at electricity generating stations in Ontario Economics changed so did the public policy in January 2013 Transitioned project to a technology & bioprocessing value chain Synergies across bio-applications
29 First the Combustion Approach Several studies to position biomass Understanding the need for densification and torrifed materials Four major studies Agronomic practices The energy competition Nutrient extraction Densification Business case Best Production Practices
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32 Availability of wheat straw, soybean straw and corn stover County by county assessment Required to develop a supply chain Sustainability requirements addressed Biomass is Biomass
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36 Environmental Attributes Examination of Life Cycle Assessment Models Poor assumptions for agriculture in the past Three pillars Economic Social Environmental Sustainable and responsible production Food versus fuel land use addressed
37 Work in Progress Pyrolysis Business Case Carbon footprint for myscanthus and switchgrass production in Ontario Bio-processing for green chemicals AAFC sub-committees for combustion, bioproducts and biochemicals Markets Local combustion Bedding Animal feed Bioproducts Mushroom farms Emerging markets Bioproducts Transportation fuels Green chemicals
38 Can we do it? The Balance at the Farm Gate Triple Bottom Line Answers SHOW ME THE MONEY KISS (logistics) Information (agronomics) Risk Mitigation (long term contracts, insurance programs) Policy (feedstock supply, food versus fuel, land use change, competitive)
39 Fossil Based Air Products BP Energy CF Industries DuPont Ethyl Corporation Exxon-Mobil LANXESS NOVA Chemicals Ontario Power Generation Pembina Praxair Royal Dutch Shell Styrolution Suncor Energy TransAlta Energy Can we do it? Sarnia BioHybrid Cluster Bio/Renewable Based BioAmber Cargill Enbridge Greenfield Ethanol Methes Energy KmX Solutions4CO2 Suncor Ethanol Woodland Biofuels "Based on the first term of funding it is evident that BIC is becoming an organization that will create a legacy for Canada in the bioindustrial and bioinnovation sectors." Mayor Mike Bradley Sarnia, Ontario 80% of Ontario soybeans and corn within 200km Sandy Marshall 39
40 Seizing the Opportunity The New Vision Integrated Biorefinery Oil Seeds Vegetable oils Nutraceutical Components Lignin Fuels Biomass Lignocellulose Hexosans Industrial Chemicals Pentosans Specialty Chemicals Nutraceutical Components Grains Flour Starch
41 Capturing World s Green Advantage: Biosphere Solutions the improved management and use of our biological cycles to provide environmental values, energy, chemicals and materials (the Bioeconomy) in addition to food, feed and fibre. SEQUESTER Atmospheric C & solar energy into biomass. ADAPT biosphere to changing climate & atmosphere CO 2 (N 2 O, CH 4 ) Biomass Fossil Fuels REDUCE CH 4 & N 2 O associated with biosphere management COMPLEMENT fossil energy (& chemicals, materials) with biomass
42 Only Farmers, Forester s and Ranchers Can Do It ALL!
43 Sponsors & Contact Info Thank you for the invitation Thank you to our project sponsors, the OFA, OAFT, OSCIA, AAFC and AAC Thanks to Charles Lalonde Thank you to collaborators such as Alberta Innovates, Aalbourg Bioenergy Centre, BIC, OMAF and MAFRI and AAFC staff Project reports available at
44 My nieces grandchildren are counting on us!
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