1. Wood Innovations Grant Roger Swenson, Chief Development Officer
USFS 2018
Wood Innovations Grant
Discussions
December 8, 2016
Roger Swenson, Chief Development Officer
(801)

2. Topics Today
1. Pre-Application Period
- Where ideas are developed
2. Application
- What made the application successful
3. Award Period
- Working with the US Forest Service
- Working with technology partners

3.  Pre-Application Period - What does the USFS want !
1. Proposals that will lead to additional forest material productive use – “sooner rather than later”
2. A broad swath of ideas – they don’t tell you what to propose (beyond energy & wood products)
3. Work effort that is likely to succeed –to lead to something that can be established to make a difference

4. The CDI expertise is in fuels development and power generation
 What does the USFS want !
Our effort looked at a pyrolysis system is designed to produce pyrolysis oil & biochar as products
The CDI expertise is in fuels development and power generation
This company, Ameron called me for help in using the pyrolysis oil in power generation – they considered it a waste stream.
We proposed an evaluation CHP in hospitals using the pyrolysis oil from the systems and a demonstration of the unit

5.  Application - What does the USFS want !
1. Clarity in the work scope that meets the “preferences” put forth in the instructions
2. Applications that address all criteria requirements provided in funding opportunity instructions
3. Proposals for work efforts that are commercial and that do not appear to be basic research

6.  Application – Meet the criteria!
1. CDI proposed a cluster of CHP sites using pyrolysis oil as fuel in high value areas like California and Hawaii. (Very valuable power)
2. CDI got support from Kaiser Permanente Hospitals to analyze the economics – they have hospitals in both States
3. We got a letter of support from the Shasta-Trinity National Forest Supervisor. (They are busy people and can be hard to get to so start early – don’t pressure them)
4. Listen to the USFS Biomass Coordinator – the insight from many years of doing this are the most important aspect.

7.  Award Period – Meeting the work scope goals
1. Stay on top of established goals and budget (monthly budgets and work goals)
2. If there are technology or resource partners keep on top of clear communication of expectations and deliverables
3. When issues arise communicate with USFS and work out solutions

8. Award Period Insights from our efforts ;
Market Depth for part of the system output was a critical issue – biochar is not a mature product with demonstrated need. (Market push not demand pull)
Economics without Market Depth is challenging - in order to have a project with the potential for finance we need higher bio-char demand than the full market could absorb.
Pyrolysis oil that was projected to be a low value waste stream had to get a substantial value to make the systems economic.
Economies of scale were found to be very important - Small systems to tackle spot treatments are nice but the set-up and personnel costs can overwhelm the economics of operation on a per unit basis. In real estate it is location, location, location; in biomass conversion it is scale, scale, scale and that of course also depends on location.
These issues forced us to do the demo at a lower cost site. We had to adapt to get results.

9.  Summary -
1. Propose something that will make a difference now – that can lead to expanded use of forest materials (wood products or energy)
2. Communicate how the proposal will lead to a greater amount of biomass used in your application
3. Measure results as you progress and communicate with all stakeholders if you are awarded a grant.