MNR Perspective On Bioproducts & Bioenergy in Ontario Dr. Jason Koivisto SAF-CIF2009

Definitions A Bioeconomy (bio-based economy) An economy where the basic building blocks for materials, chemicals, and energy are derived from renewable biological resources, such as plant and animal sources An economy where the basic building blocks for materials, chemicals, and energy are derived from renewable biological resources, such as plant and animal sourcesBioproducts A product developed from biological materials. Bioproducts may replace or enhance products derived from non-renewable resources. The term bioproduct encompasses biofuels, biocomposites, nutraceuticals, and other biobased products. A product developed from biological materials. Bioproducts may replace or enhance products derived from non-renewable resources. The term bioproduct encompasses biofuels, biocomposites, nutraceuticals, and other biobased products.Biorefining Uses biomass as the feedstock in a dynamic refining process to produce bioproducts. The concept is modeled on the process for refining crude oil. Uses biomass as the feedstock in a dynamic refining process to produce bioproducts. The concept is modeled on the process for refining crude oil.Bioconversion The conversion of organic materials, such as wood, into usable products or energy sources by biological or thermo-chemical processes. The conversion of organic materials, such as wood, into usable products or energy sources by biological or thermo-chemical processes.

DefinitionsBiomass Living or recently dead biological matter Biomass is essentially a stored form of solar energy. Common sources include agricultural crops and wastes, and forestry residues. Living or recently dead biological matter. Biomass is essentially a stored form of solar energy. Common sources include agricultural crops and wastes, and forestry residues. Forest Biofibre Forest biofibre includes tree tops, cull trees or portions of trees, individual and stands of unmerchantable and unmarketable trees, and trees that may be salvaged as a result of a natural disturbance. Forest biofibre includes tree tops, cull trees or portions of trees, individual and stands of unmerchantable and unmarketable trees, and trees that may be salvaged as a result of a natural disturbance.

The Business of Bioproducts Industry Canada, 2006

Bioenergy Direct Combustion Burning biomass in a woodstove, fireplace or boiler. Burning biomass in a woodstove, fireplace or boiler. Cogeneration (Combined Heat and Power) The simultaneous generation of both electric power and heat; the heat, instead of being discharged without further use, is used in some fashion (eg, in district heating systems). The simultaneous generation of both electric power and heat; the heat, instead of being discharged without further use, is used in some fashion (eg, in district heating systems).Co-firing Burning of two fuels in the same combustion unit; e.g., bio-oil and natural gas, or wood pellets and coal. Burning of two fuels in the same combustion unit; e.g., bio-oil and natural gas, or wood pellets and coal.

Bioprocess Technology Gasification Uses high temperatures in the presence of oxygen to convert solid biomass into a gas. The gas can be used for direct combustion, cogeneration or chemical extraction Uses high temperatures in the presence of oxygen to convert solid biomass into a gas. The gas can be used for direct combustion, cogeneration or chemical extractionPyrolysis Is the chemical breakdown of biomass in the absence of air at temperatures above 250°C. This process produces a bio-oil, syn-gas, char and ash which can be used for bioenergy or chemical extraction. Is the chemical breakdown of biomass in the absence of air at temperatures above 250°C. This process produces a bio-oil, syn-gas, char and ash which can be used for bioenergy or chemical extraction.Fermentation The anaerobic conversion of sugar to carbon dioxide and alcohol by microorganisms. The anaerobic conversion of sugar to carbon dioxide and alcohol by microorganisms.Bio-catalysis Enzymes or microorganisms are used to perform chemical transformations on the organic compounds in the biomass. Enzymes or microorganisms are used to perform chemical transformations on the organic compounds in the biomass.

CHAMBOST, V., MCNUTT,j.. STUART, P.R. Guided tour: Implementing the forest biorefinery (FBR) at existing pulp and paper mills. Pulp & Paper Canada 109(7/8):T83-T9I (July/August 2008). Current use of biofibre

Examples of High Value Bioproducts from Biofibre Replacement for Carbon Black Replacement for Carbon Black Carbon Fibres Carbon Fibres Nanocrystalline Cellulose Nanocrystalline Cellulose Tannins Tannins Sitosterol & Sitostanol Sitosterol & Sitostanol

Ontario’s Opportunity Potential feedstock supply and receptor capacity; Potential feedstock supply and receptor capacity; Close proximity to largest markets in North America Close proximity to largest markets in North America Skilled labour force and harvesting contractor capacity; Skilled labour force and harvesting contractor capacity;

Ontario’s Research Capacity Established research programs through Ontario Forest Research Institute; Established research programs through Ontario Forest Research Institute; R&D capacity with several universities actively engaged; R&D capacity with several universities actively engaged; Collaboration with Canadian Forest Services, Great Lakes Forest Alliance and FP Innovations Collaboration with Canadian Forest Services, Great Lakes Forest Alliance and FP Innovations Ontario making significant investments in 3 Research & Innovations Centres. Ontario making significant investments in 3 Research & Innovations Centres. Centre for Research and Innovation in the Bioeconomy - $25 M Queens Centre for Biomaterials Research - $21 M Bioindustrial Innovation Centre - $10 M

Government of Ontario Priority - Strong people, strong economy (a greener economy) MNR’s Our Sustainable Future – Conserve Biodiversity & Use Natural Resources in a Sustainable Manner MNR’s Strategic Objective – Economic Growth for Ontario Communities Bioeconomy Program’s Strategic Purpose – Contribute to the evolution of Ontario’s green economy by facilitating the sustainable use of natural resources for bio- based products. MNR’s Bioeconomy Program

MNR’s Bioeconomy Team Forest Bioeconomy Coordinator Dr. Jason Koivisto Knowledge Development/ Transfer Specialist * Brady Irwin Program Specialist – Forest Bioeconomy* Joe Maure Provincial Bioeconomy Network (Multi-ministry) MNR’s One window for bioeconomy initiatives * New ^ matrixed Economics Specialist – Forest Bioeconomy* Dr. Indrajit Majumdar Policy Analyst – Forest Bioeconomy* Karry Anne Campbell WAMS – Forest Analyst ^ SO Regional forest industry liaison officer ^ Ian Manson FSCS - Forest Business Analyst ^ SIRD - Science Management Coordinator^ FPS – Senior Policy Advisor ^ RES - Alternative Energy Program Officer^ WAMS - 3 Regional Forest Industry Liaison Officers ^ FSD – Kapuskasing Area Supervisor ^

MNR’s Role in Developing Ontario’s Bioeconomy Defining the resource potential Defining the resource potential Improving access to biofibre Improving access to biofibre Science knowledge development and transfer Science knowledge development and transfer Community involvement and socio-economic development Community involvement and socio-economic development

Defined Resource Potential Continue model and information development Continue model and information development Spatial analysis capability Spatial analysis capability Link to FERIC economic model Link to FERIC economic model Develop yield estimates by species Develop yield estimates by species Support operational trials Support operational trials Incorporate biofibre estimates into Forest Management Plans Incorporate biofibre estimates into Forest Management Plans

Available Forest Biomass 1 m 3 = cords

Improved Access to Biofibre Review the use of existing forest resource commitments Review the use of existing forest resource commitments Facilitate and support access to biofibre Facilitate and support access to biofibre Initiate policy discussion on MNR’s role on private land Initiate policy discussion on MNR’s role on private land

Ontario ’ s Forest Biofibre Policy The Directive guides the use and allocation of Crown forest biofibre The Directive guides the use and allocation of Crown forest biofibre Same allocation / disposition process as for Crown timber Same allocation / disposition process as for Crown timber Priority for aboriginal opportunities Priority for aboriginal opportunities Reinforces need to comply with all Forest Management Planning / EA requirements Reinforces need to comply with all Forest Management Planning / EA requirements

Pricing of Biofibre Effective April 1, 2008 Unmarketable FibreUnmerchantable Fibre Minimum Charge $0.00/m 3 Residual Value $0.00/m 3 Forestry Futures $0.00/m 3 Forest Renewal $0.00/m 3 Total $0.00/m 3 Undersized Tops & Branches Scaling Manual Standards Unused Roundwood Minimum Charge $0.00/m 3 Residual Value $0.00/m 3 Forestry Futures $1.07/m 3 Forest Renewal $0.25/m 3 minimum* Total $1.32/m 3 minimum *Forest Renewal is a minimum of $0.25/m 3 – set by District Managers based on renewal needs Price is for 10 years to be reviewed after 5 years $ collected go only to forest silviculture & inventory 1 m 3 = cords

Biofibre Harvest Volumes by FMU up to Nov m3 = cords

Biofibre Harvest Volumes by FMU up to April ‘09 1 m 3 = cords

Ministry of Natural Resources' Staged Competition for Crown Wood Supply in Ontario Stage One – Request for Expression of Interest Stage One – Request for Expression of Interest Deadline was March 3 rd, 2009 Deadline was March 3 rd, 2009 Over 130 proponent applications Over 130 proponent applications Stage Two - Wood Supply Competitive Process Stage Two - Wood Supply Competitive Process

Stage One Proposed Uses

Science & Knowledge Development and Transfer Develop a knowledge management strategy and transfer plan on bioeconomy matters Develop a knowledge management strategy and transfer plan on bioeconomy matters Assess science capacity and knowledge and determine mechanisms to fill gaps Assess science capacity and knowledge and determine mechanisms to fill gaps Engage in science networks at provincial, national and international level Engage in science networks at provincial, national and international level Collaboration effort with FP Innovations and Universities to support the transformation of the forest sector Collaboration effort with FP Innovations and Universities to support the transformation of the forest sector Investigate climate change benefits of bioeconomy projects Investigate climate change benefits of bioeconomy projects Collaborate and conduct research as part of the Great Lakes Forest Alliance Collaborate and conduct research as part of the Great Lakes Forest Alliance

MNR ’ s Fast Pyrolysis Transportable Biorefinery Project New forest derived products New forest derived products New business opportunities New business opportunities Develop and demonstrate Develop and demonstrate Research integration of the technology within existing forest harvesting operations. Research integration of the technology within existing forest harvesting operations.

Community Involvement and Socio-Economic Development Social and economic comparative analysis Social and economic comparative analysis Community combined heat and power Community combined heat and power Support community development initiatives Support community development initiatives Engage other Ministries to develop ways to engage Aboriginal and rural communities Engage other Ministries to develop ways to engage Aboriginal and rural communities

Conclusion There is a great deal of interest in making use of Ontario’s forests to support the development of the bioeconomy. There is a great deal of interest in making use of Ontario’s forests to support the development of the bioeconomy. Ontario is actively supporting a series of initiatives to advance the development of a forest bioeconomy. Ontario is actively supporting a series of initiatives to advance the development of a forest bioeconomy. We’re willing to entertain partnerships to advance areas of common interest as they relate to the use of forest resources for the bioeconomy. We’re willing to entertain partnerships to advance areas of common interest as they relate to the use of forest resources for the bioeconomy.

Questions???? Dr. Jason Koivisto MNR – Industry Relations Branch