1. Virginia’s Forests and the Emerging Biomass Industry Dean Cumbia Director, Forest Management Division

2. 15.9 Million Acres Virginia Forest Cover

3. Virginia Forestland Acres

5. 1992 16.0 million acres 2012 15.9 million acres Reduction in total acres since 1992. Most significant reduction of ownership has been with forest industry. Forest Ownership

6. Volume (Billion cu. ft.) Since 1940, total volume has more than doubled from 15.5 to 33.6 billion cubic feet. YEAR Forest Growth (Volume of Live Trees on All Timberland)

8. VDOF inspects over 5,000 harvests annually with an average size of 40 acres. Forest Harvesting (1.6% of total forest land/yr)

9. Total Volume/Net Growth/Removals

11. Southern Piedmont Growth to Removals Ratio Source: USFS FIA Ratio

12. ( Purchasers of dirty chips/wood fuel for direct combustion in a boiler) Dominion VA Power - Hurt, VA 80 MW Electricity generation Wood fuel purchased to supplement heat and power production at the manufacturing facilities of : Georgia Pacific - Big Island, VA Greif Packaging - Riverville, VA RockTenn - West Point, VA RockTenn - Hopewell, VA White Birch Paper / Bear Island Paper Co. Ashland, VA Domtar Paper Co. - Kingsport, TN Provided by VA Tech Current Biomass (wood fuel) Consumption

13. (by 4 th quarter 2013) (Purchasers of dirty chips/wood fuel for direct combustion in a boiler) Additional Capacity Northern VA Electric Coop. - South Boston – 50 MW MeadWestvaco – Covington - 75 MW Dominion Virginia Power – Altavista – 51 MW Dominion Virginia Power – Hopewell – 51 MW Dominion Virginia Power – Southampton Co. 51 MW Dominion Virginia Power – Wise Co. Co-firing up to 20% biomass in 585MW plant Potential increase of 300+ MW of electricity generation Possible additional consumption of 3+ Million tons Anticipated Wood Fuel Consumption Provided by VA Tech

15. Source: VDOF-Research LobDSS Model Potential Yield of Loblolly Pine

16. Southern U. S. Forecast ( from USFS Southern Forest Futures Project, Wear and Greiss 2011) Woody biomass harvest is expected to increase from 54 to 113% over current levels, but has a high level of uncertainty. Timber harvest residues and urban wood waste could meet part of this demand, but timber (pulpwood) harvesting would likely be needed as well, depending up level of demand.

17. Southern U. S. Forecast cont. ( from USFS Southern Forest Futures Project, Wear and Greiss 2011) Forest products markets could accommodate a 40% expansion in harvesting at current levels of productivity- Or a 70% expansion with moderate productivity growth assumptions. With demand, prices should increase, fostering increased investment in forest management.

18. Virginia Summary Virginia has a solid forest resource base, well-developed forest industry and infrastructure. Loss of forest land and resource availability will continue to be a concern. Productivity, improved management, and the market can help to meet future demands

19. Acknowledgements Charlie Becker – VDOF Forest Utilization and Marketing Manager John Pemberton- Forest Inventory and Analysis Coordinator Dr. Scott Barrett – Virginia Tech, College of Natural Resources and the Environment U. S. Forest Service, Southern Forest Futures Project, David Wear and John Greiss, 2011

20. Keeping our Forests Working…and Growing