Ministry of Natural Resources. Dr. Indrajit Majumdar. Harnessing Biomass II Conference November 22 nd 2011

Transcription

1 Ministry of Natural Resources Dr. Indrajit Majumdar Harnessing Biomass II Conference November 22 nd 2011

2 Presentation Overview Background Methodology Key Findings Recommendations Next Steps Questions

3 Background Develop a better understanding of the current and future business environment issues facing the evolving forest bioeconomy Study focused on industries that use forest-based biomass for the production of advanced biochemicals, biomaterials, advanced biofuels, and other bioproducts - not bioenergy

4 Methodology Three lines of inquiry Jurisdictional Reviews Competitiveness Surveys Case Studies Comparative Analysis Strengths, Weaknesses, Opportunities and Threats (SWOT) Recommendations

5 Background - T heoretical F ramewor k competitiveness analysis Governmental Policies Firm Strategy, Structure and Rivalry Factor of Production Conditions Demand Conditions Related and Supporting Industries

6 K ey Findings Factor Conditions & Firm Strategy Factor Conditions Firm Strategy Strengths / O pportunities Weaknesses / Threats Strengths / O pportunities Weaknesses / Threats Largely underutilized forest resources Low cost and available woody material Large and extensive forest industry Limited access to capital High transportation costs Promote clusters that are already starting to emerge in Ontario Lack of investment in marketing and branding Lack of emphasis on customer training and education program unlike competitors like Borregaard

7 K ey Findings Market & Related & Supported Industries Strengths / O pportunities 5% ethanol and 2% biodiesel mandates Large and growing export market (the US) High demand for dissolving pulp and bio-fibres presents significant opportunities Markets Weaknesses / Threats Small and underdeveloped domestic market Poor customer / end-user awareness of benefits Related & Supporting Industries Strengths / O pportunities Extensive wood, pulp and other related industries Companies may be more willing to take risks and seek opportunities in the bioproduct sector Weaknesses / Threats Lack of coordination and partnership Limited involvement by large companies, who can better promote partnership and linkage

8 Recommendations Promoting linkage, partnership and coordination across the bioproduct value chain Focus on innovation: increasing the effectiveness of R&D Improving the economics of the bioproduct sector feedstock

9 Promoting linkage, partnership and coordination Ontario needs an industry champion obtain industry buy in Rationalize and coordinate government ministries / agencies that play a role in the bioproducts sector Develop a clustering strategy

10 Promoting linkage, partnership and coordination ON is emerging as a major North American centre for biotechnology R&D, innovation & industrial growth

11 Focus on innovation: increasing the effectiveness of R & D Use R&D funding to promote industry linkage Focus R&D on end use/commercialization

12 Focus on innovation: increasing the effectiveness of R & D Lignin Pilot Plant Centre for Research and Innovation in the Bioeconomy - $25 M Queens Centre for Biomaterials Research - $21 M Biomass Trials FPI NCC Bioindustrial Innovation Centre - $10 M

13 Improving the economics of the bioproduct sector Support the bioenergy sector Marketing and branding Consider targets for higher value added bioproducts

14 Improving the economics of the bioproduct sector TARGET 5% Ethanol Mandate 2% Biodiesel Mandate 15,700 MW by 2025 TARGET??? " If you don't know where you are going, you will wind up somewhere else." - Yogi Berra

15 Use feedstock availability to encourage domestic and FD investments in the sector Use feedstock availability to partner with Midwestern US

16 40 Available Forest Biomass Available Harvest Volume & Actual Harvest - Ontario Crown (All Sp) ON shares 15 border crossings with the US by road, rail and water Volume (million m³) Year Total Available Total Actual

17 Next Steps Communicate study recommendations and implications through workshops and conferences Follow up study Identify industry and institutional around for cluster development Provincial forest bioproduct sector strategy development Provincial bioeconomy strategy development

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19 Questions?? "We cannot solve our problems with the same thinking we used when we created them." Albert Einstein Dr. Indrajit Majumdar MNR Industry Relations Branch

20 The best technology and product mixes vary by region, depending on products available (pulp, sawmilling, bioenergy, other bioproducts), provincial policies (including energy policies) and hauling costs. Making efficient and economic use of waste streams is crucial. Industry needs to forge partnerships outside itself (e.g., with chemical and energy sectors). Hemicellulose can be refined to ethanol More efficient use of processing of raw materials and waste streams to produce current and new products

21 Chemrec - Sweden