Dr. Dominik Roser Whitehorse Yukon, March 16 th, 2016 Biomass supply chains

© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. FPInnovations in Brief Largest forest related research institute in the world ▫Over 500 employees ▫Facilities across Canada Major innovation programs in ▫Resource Assessment ▫Forest Operations ▫Wood Products ▫Pulp, Paper and BioProducts

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© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Challenges across Canada ▫High biomass costs when the recovery is direct from the forest ▫Low cost of competing energy prices ▫Integration with primary products to lower costs ▫Transportation distances ▫Availability of suitable & proven harvesting technologies for biomass 4

© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Feedstock characteristics  Moisture  White wood / bark content  Species  Particle size distribution  Contamination (sand, grit)  Ash content Increased specifications increase cost!

© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations.  Large boilers can handle a variety of biomass feedstock and moisture content  Small boilers are more sensitive to feedstock quality Feedstock characteristics Boiler size Quality requirements

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© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Fibre availability assessment  Tenure is one of the biggest issues in relation to availability ▫Who owns what?  Realistic assessment of fibre volumes is essential ▫How much is out there? ▫What is accessible and sustainable? ▫What type of biomass and it’s location? ▫How much does it cost?  Define parameters that are unique to each site ▫Public or Private forests? ▫Harvesting system used? ▫Local competition or integration potential? ▫Infrastructure? ▫Feasibility for export market? 13

© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Feasibility of biomass energy in communities  Estimate the heat and electrical power consumption;  Evaluate the feasibility of small- scale combustion technologies (cordwood/chip boilers, modular CHP units)  Evaluate the forest biomass requirements for each technology;  Assess the local availability, supply chains, and cost of forest biomass. 14

© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Slide 15 FPInterface  System selection  Cost estimation  Biomass flow management  Carbon ratio

© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Fibre availability Anahim Lake Hanceville Williams Lake Horsefly Williams Lake 10 year supply

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© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. BIOMASS LOGISTICS 18 The basic challenge: Transporting a low-value, low bulk-density material with a high moisture content over a long distance Importance of maximizing payload through comminution and compaction Photo Credit: Holman - John Deere (FERIC Winning Solutions 2006)

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© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Supply chain costs Residues from roadside stroke-delimber Pre-pilingComminution Transport: km one-way, live-floor chip van Other: - roads, supervision, overhead, maintenance, compliance, stumpage

© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Supply chains for community project Challenges of small(er) scale supply chains Quality of chips Moisture content Particle size distribution Supply flow and storage management 24

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© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Costs - cut-to-length operations Pre-piling Comminution Transport (40 km) Other: - roads, supervision, overhead, maintenance, compliance, stumpage y Forwarding

© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Biomass harvesting in commercial thinning operations 27

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© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Heating plants based on wood chips in Finland Source: METLA & VTT

© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Intensive Forest Mgmt in Finland  Main tree species ▫Pine (Pinus sylvestris) ▫Spruce (Picea abies) ▫Birch (Betula pubescens/pendula)  Rotation period years  Forest mgmt ▫Pre-commercial thinning ▫1-3 thinnings ▫Final felling ▫Soil preparation/Planting  Forest Ownership: ▫Public 29 %, Company 16 %, PNIF 55 %

© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Vitality in the local economy  Use of local renewable energy sources  Markets for low-quality wood: income instead of ”cleaning” costs  Thinnings - better silviculture and more valuable forests!  Improved fire resistance  New products and new customers for harvesting companies  New products and services for the forest industry  More dollars in the local economy – money circles in the region 33

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© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. ”Harvesting” of logging residue

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© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Thinnings play a key role to meet the demand 50-60m 3 /ha 20-30m 3 /ha

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© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Business process mapping Forest owner Forestry center Chairman Accounting office Chipping and transportation contractor Forest service company Cooperative Logging contractor

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© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Improving efficiency of biomass supply  Store the logging residues in a “ready to load” fashion  Air-dry the residues in the field  Tarping  Chip residues only when needed  Covered storage  Minimize biomass handling  implement Quality Control 49 Biomass storage Be the first to dry your biomass to 10% Biomass Storage

© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Chipper basics  Drum chippers ▫Brush ▫More fines  Disc chippers ▫Uniform feedstock  Knife wear ▫Fuel quality ▫Disposable knives  Hand fed vs. crane fed 50

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© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Transport energy not water 55%35% Transport cost 9.50 $/MWh5.50 $/MWh 15 $/green tonne 4 $/MWh for transporting water Little incentive to improve practices with payment on a green tonne basis Suppliers must be compensated for delivering clean, dry biomass

© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Training & Education  Difference between a good & bad operator in the study above was 11m 3 /h 57 Purfuerst & Erler 2011

© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Recipe for success  Holistic planning  Integrate  Selection and adaptation of existing technology  Proven technology, avoid to sophisticated and unproven technologies  Manage moisture & contaminants ▫Minimize handling  Machines must have full loads & be efficient  Avoid too complex supply chains (many steps)  Supply chains are usually more complex than anticipated  Invest in R&D 58 Supply chains Be the first to establish a network

© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. FPI support for communities  Training & Education  Biomass availability studies  3 rd party technology evaluations  Feasibility analysis of different technologies  Technical advice & implementation support  Supply chain design  Improving biomass quality  Technology transfer 59

© 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Biomass sampling Review and implementation of biomass sampling standards at the operational level  Biomass sampling procedures for hog fuel:  Sampling frequency  Sample size  Minimum Sample Increments  Sampling tools and techniques  Biomass sample separation and analysis 60 New publication

Forest Knowledge Expertise Welfare 61 Biomass Roadmap 61 Improve Policy Framework Invest in Education & Training Develop Technology & Supply Build strong Clusters Sustainable Community Energy

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