1. BBE 3503-5503 – Markets and Marketing of Bio-based Products
The Bio-mass Resource Dr. Tim Smith Associate Professor, CEM & Bio-based Products Director, Forest Products Management Development Institute University of Minnesota
BBE – Markets and Marketing of Bio-based Products

2. Things to think about… What is biomass and do we have enough of it?
Where is it?
Can we meet consumption needs sustainably? Should we be concerned about deforestation? Biodiversity? Sustainable agricultural systems?
What other systems might be impacted by rapid growth in industrial bioproducts?
What influence does the resource have on the development/continuation of bioproducts markets?
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3. Bio-energy and Bio-power
Biomass is already making key energy contributions in the US - nearly 2.9 quadrillion Btu (quad) of energy in The largest domestic source of renewable energy.
Biomass currently supplies over 3 percent of the total energy consumption in the US — mostly through industrial heat and steam production by the pulp and paper industry and electrical generation with forest industry residues and municipal solid waste (MSW).
Biomass is particularly attractive because it is the only current renewable source of liquid transportation fuel.
Biomass consumption in the industrial sector will increase at an annual rate of only 2% through 2030.
But, biomass consumption in electric utilities will double every 10 years through Combined, biopower will meet 4% of total industrial and electric generator energy demand in 2010 and 5% in 2020.
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4. Bio-based Transportation Fuels and Bio-based Products
Transportation fuels from biomass will increase significantly from 0.5% of U.S. transportation fuel consumption in 2001 ( quad) to 4% of transportation fuel consumption in 2010 (1.3 quads), 10% in 2020 (4.0 quads), and 20% in 2030.
Production of chemicals and materials from bio-based products will increase substantially from approximately 12.5 billion pounds or 5% of the current production of target U.S. chemical commodities in 2001, to 12% in 2010, 18% in 2020, and 25% in 2030.
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5. (Wisner 2007)
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6. Composition of the Current Resource Base
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7. Summary of biomass resource consumption
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8. Annual biomass resource potential
Currently, slightly more than 75 percent of biomass consumption in the United States (about 142 million dry tons) comes from forestlands.
The remainder (about 48 million dry tons), which includes biobased products, biofuels and some residue biomass, comes from cropland.
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9. Summary of the Forest Biomass Resource
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10. UN Food & Agriculture Organization (FAO) Global Regions
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11. World Forest Cover (2000)
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12. Forest Cover to Wood Volume to Industrial Roundwood
Region
Forest Cover
Wood Volume
Industrial Roundwood
Fuelwood
Europe
27.0%
15.5%
13.3%
2.2%
South America
22.7%
8.8%
3.5%
5.3%
Africa
16.9%
16.7%
14.5%
North/Central America
14.2%
23.0%
18.9%
4.1%
Asia
14.1%
34.2%
7.2%
Oceania
5.2%
1.5%
1.3%
0.2%
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13. American industrial roundwood consumption and production to 2010
Source: Global Forest Products Model, 2003
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14. American industrial roundwood trade to 2010
Source: Global Forest Products Model, 2003
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15. Percent Protected Forest, 2000
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16. Conclusions We have enough wood in some places not enough in others.
Natural resources are global and local issues.
Availability of natural resources require infrastructure (physical, social, political).
Efficiency of resource utilization requires infrastructure and prosperity. Poverty is possibly the biggest obstacle to sustainability.
Deforestation is a problem, but not necessarily the fault of industry.
BUT, industry must be part of the sustainability solution.
Sustainability ≠ Protectionism
In global markets, sustainability goes beyond borders, forests, biodiversity, free trade, or fair trade – someone will grow more trees. The question becomes what impact do these activities have on the environment, economies, and societies.
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17. Forest and Forest Products Residues
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19. Summary of the Agricultural Biomass Resource
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23. (Wisner 2007)
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24. (Wisner 2007)
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25. (Wisner 2007)
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26. (Wisner 2007)
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27. (Wisner 2007)
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28. Agricultural Resource
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29. Significant Productivity Improvements
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