Biomass Utilization & Gaps in Inventory for Business Development

Transcription

1 THE SPIRIT OF INNOVATION Biomass Utilization & Gaps in Inventory for Business Development Jason Linkewich

2 Tembec overview Outline History of Tembec bio-refinery Why we are interested in additional biomass? Venture to Pellets complementary business Forest Biomass Development Practical use from concept to execution Gaps in inventory per traditional business Future business development

3 Tembec Company Overview Created in 1973 Annual sales of over $3 billion Over 8,000 employees Over 50 sites primarily located in Canada & France

4 Forest Resource Management Tembec is the world leader in FSC certification 9.7 million hectares (21 million acres) of Canadian forest under FSC certification Equal to 100% of forest land, managed by Tembec The FSC seal now appears on many products marketed by Tembec, including newsprint, paperboard, softwood lumber, hardwood flooring, NBSK pulp, and high-yield pulp

5 Wood Products 28 Sites Primarily Canadian SPF I Beams Pine Lumber Hardwood Lumber Laminated Veneer Lumber Wood Chips Hardwood Flooring

6 Pulp Products 11 Sites - Canada, France NBSK & Hardwood Kraft Specialty Cellulose Pulp Fluff Pulp High-Yield Pulp

7 Paper 2 Sites Canada Newsprint

8 Paperboard Products 1 Site - Canada Kallima Coated Cover Grades Tobacco & Specialty Folding Carton Premium Bleached Linerboard

9 Chemical Products 6 Sites Canada, USA, France Ethanol & HCL Acid Lignosulfonates Phenol- Formaldehyde Resin & Melamine Formaldehyde

10 Temiscaming Bio-Refinery History Pulp production started in 1973 Lignosulfonates for fuel started in 1981 Lignosulfonate sales started in 1983 Ethanol started in 1991 Biogas started in 2006

11 Typical Forest Products Stream Forest Lumber Mill Pulp Mill Paper, Board, Other Mills Chips Pulp Paper, Boxes/Cartons, Tissue/Diapers, Specialties Biomass Landfill, slash burn or Power Boiler Lumber, Paneling, Etc. Cooking Liquor Chemicals Energy Recovery Plant Energy Waste and sludge WW Treatment

12 The Temiscaming Bio-Refinery Forest Lumber Mill Sulfite & High Yield Pulp Mills Coatings, Textiles, Food, Pharmaceuticals Paper, Board, Other Mills Chips Pulp Paper, Boxes/Cartons, Tissue/Diapers, Specialties Biomass Slash Lumber, Paneling, Etc. Cooking Liquor Ethanol, Lignosulfonates Chemicals Energy Recovery/ Power Plants Energy Anaerobic Treatment WW Treatment

13 Biochemical Flow Chart Wood Liquor Pulp Mills Evaporators Fermentation (Sugars) Effluent Pulp Dryer BioGas Anaerobic Plant Distillation Pulp Ethanol Steam Evaporators Boilers Lignosulfonates

14 Why are we interested? Biomass for fuel & chemicals Utilize biomass at its highest value Explore opportunities to enhance forest & forest floor biomass recovery & utilization Exploiting value from Heritage piles Managing biomass product mix for maximum energy efficiency Extract specialty chemicals from cooking liquors Continued development of the Tembec biorefinery model

15 Biomass Value Spectrum Pulp/Paper Mill Recovery Plant & Cogen Forest Chips Liquor Specialty Chemicals Lumber Mill Sawdust, Shavings Particle Board/MDF Bark Biomass Boiler & Cogen Pellet Plant Bio-Oil Fuels Roadside slash, Forest Floor, Alternate Species, Heritage Piles Drying Technology

16 Forest Biomass Development

17 Forest Biomass Utilization Experience Trial to supply Kapuskasing boiler 2006 FERIC study on block available material Evaluation of FERIC Bios Model 2007 Operational trial to validate block analysis Partial FERIC study area & partial underutilized species Results consistent with expectations» $30-40 / gmt within 100 km of Kapuskasing 2008 & , 000 gmt with revised operational handling

18 Operational Information

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22 Hot versus Cold

23 FERIC Time study: productivity results Productivity GMt/PMH ODt/PMH Moisture content Discharging into van % Discharging in piles %

24 Harvesting Challenges Sorting at the stump (feller buncher) and at roadside (grapple skidder). How to place bunches/ piles for efficient grinding. Distinguish bunches at night.

25 Snow & Ice Increase Moisture

26 Efficiency to Sort all Materials Roadside

27 Maximizing truck loads!

28 Forest Biomass Utilization Experience Trial experience Right equipment for ground conditions Track machine grinder Flexible loader Organize harvesting, piling, and grinding Manage moisture Season if area to be utilized in the future year Manage snow impact by keeping a tight operation Remove excessive amounts in the field prior to grinding

29 Forest Biomass Utilization Challenges Productivity per area to economically manage costs Grinder Capacity peak 80+ gmt / hour Northern winter only access moisture content management with snow conditions Year round access versus storage

30 Forest Biomass Utilization Challenges (cont.) Guidelines in selective or shelter wood applications to access the maximum potential and optimal efficiency Prescriptions in mixed wood forests Ability to extract tops of trees functionally and within existing guidelines Development trial required to analyze potential Stable primary industry to ensure access 1st available volume with and without a primary industry user

31 Maximum Annual Technically Available Biomass Hearst and Gordon Cosens Forests FERIC Study (By origin based on annual harvest) Biomass origin Roadside delimbing debris (ODT) Residual trees (ODT) Bypass (ODT) Max. technically available biomass (ODT) Hearst Gordon Cosens Total

32 Gaps in Inventory No attribute in the FRI Weakness of age of data years plus in the North (understood that process underway to update and correct) Poor data due lack of interpretation Species composition off up to 50% Sight class derived attribute from height and age but gaps exist Lack of full understanding of extraction of tops / branches (both policy and data issue) Especially in selective or shelter wood harvest areas in Southern forests

33 Gaps in Inventory (cont.) With LIDAR as with the Romeo & Hearst Forests We are looking forward to the detail of the information to provide feedback Forest type association by Joe Moore has provided some information at a high level Validated somewhat by FERIC bios model FERIC continuing to develop the Interface map with bios model information

34 What is needed as a new user for biomass? MNR data has been provided at a high level Further detail will be required to finalize costs estimates What is available and ultimately where? Tops / residual stems Merchantable Unutilized trees Ultimately what is the volume per hectare that may be extracted For the sophisticated user, to provide at a minimum a model to associate to forest type to estimate of available biomass volume Assurance to access material even if the primary user is not operating

35 Conceptual Pellet Mill Requirements Pellet plant 100,000 to 200,000 tons Requires 120,000 to 240,000 bdmt of wood Equivalent to a minimum of 240,000 m3 to 625,000 m3

36 MNR REFI Appendix 2 With only the MNR information provided, it would be a challenge to start a pellet mill with an economy of scale.

37 Questions?