1. Dominik Roser, Ph.D. Advanced Bioeconomy Feedstocks Conference June 9-10, 2015 New Orleans British Columbia and Biomass Availability

2. © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. About FPInnovations  A private non-profit Canadian corporation  Supports competitiveness of the Canadian forest sector through science, technology and innovation  Facilitates collaboration between industry, government, suppliers and colleges/universities 2  Focused on real business needs and opportunities, for today and for the future  A proven track record of delivering bottom-line impact and positive return on investment

3. © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Canadian fiber supply Canada:  400 million ha forest land ▫8% private land ▫78% Provincial Crown land  140 million m 3 /a annual cut Finland:  21 million ha forest land ▫70% private ▫30% public  55 million m 3 /a annual cut British Columbia:  One of the largest public forests on earth  Only 5% private ownership  10% protected areas  63 million m 3 /a annual cut

4. © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Features of Forest Tenure in BC  British Columbia has a complex tenure system with 14 different tenure types  30% of the harvesting rights are area based  70% of the harvesting rights are volume based (rights to harvest a certain amount within a broad area)  52% are long term (>20 years)  48% are short to medium term (<20 years)  Development of tenures to support the evolution of the bio-energy industry  Area-based tenures to provide First Nations with viable forest-based economic opportunities and employment  More local community control of forest resources (community forest agreements)

5. © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Mountain Pine Beetle in BC  Approximately 18 million ha have been affected by MPB  In the interior, MPB affected stands may mean lower harvest levels and lumber production and reduced sawmill residuals  MPB stands have provided a new source of fibre from harvest residues

6. © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Industry transformation The industry has transformed considerably of the last decade:  15 years ago most residues were burned in beehive burners  BC was hit by the MPB  The federal and provincial governments have done a lot to support the transformation of the industry  Industry has and is investing to modernize their operations  300 MW of bioenergy added through the Pulp and Paper Green Transformation Program  Quebec is the frontrunner in community heating  The pellet industry in BC was established as the pioneer of the bioenergy industry in Canada  Today integrated companies have added bioenergy into their strategic portfolios across the country  Residual forest biomass is starting to be recognized as a product - not waste  The bioeconomy is a reality in Canada

7. © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Bioenergy capacity in BC 7 Source: 2014 CanBio Report on the Status of Bioenergy in Canada

8. 8 Finland BC

9. © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Potential Availability Harvest Residues Sawmill Residues/ hog fuel Roundwood British Columbia biomass sources

10. © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Feedstock cost is key to competitiveness Delivered wood cost to mill is the single largest component of final product cost (40 to 60%) Failures of bioenergy projects are often due to insufficient attention to the feedstock supply (volumes, costs, quality & fluctuations) Currently no high value product for biomass, therefore low cost is expected

11. © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Biomass price ranges in BC 11 Harvest ResiduesSawmill Residues & hog fuel Roundwood 40 – 120 10 – 6080 – 120 CAD$/dry tonne 7 – 4329 – 87 58 – 72 US$/dry ton (short) Exchange rate 0.80 CAD/USD

12. © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Fibre availability in BC Williams Lake 10-year supply Hanceville Williams Lake Horsefly 45% of Provincial cut has been analyzed for harvest residue availability There is lots of biomass around but sustainable and economically-viable volumes need to be established Harvest residue availability is approximately 6 – 15 % of roundwood production at a price of $60/odt Anahim Lake

13. © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. British Columbia  Depending on the region, there are large untapped volumes of harvest residues available  The interior has a tighter fibre supply, particularly in certain areas  Existence of established supply chain  Relative closeness to shipping ports is a major advantage  Challenges around quality/contamination with harvest residues  Burning of harvest residue piles is becoming more challenging  Potential sources of residues may become available from thinnings, FireSmart treatments, right-of-ways, road sites, urban forestry 13

14. © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Reducing the cost of biomass supply 14 250,000 odt/y at $60 520,000 odt/y at $70 760,000 odt/y at $80

15. © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Integration of operations

16. © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. New technology development & implementation 16

17. © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Technology & Know-how transfer 17 Be the first to dry your biomass to 10% Biomass Storage

18. © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Conclusions  There is lots of biomass but sustainable and economic volumes need to be established on a local case-by-case basis with major tenure holders  Development of residue recovery systems ▫ Better integration with conventional harvest ▫ Tailored biomass supply chains  Value of residues need to be recognized ▫ not a mature market ▫ Treat biomass as a product not waste  New breakthrough technologies are required to: ▫ Develop innovative logistic solutions ▫ create clean white wood from harvest residues 18

19. www.fpinnovations.ca Follow us on © 2013 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Dr. Dominik Roser Research Leader Phone: 604-222-5624 Cell: 607-837-6935 Email: dominik.roser@fpinnovations.ca