1. Rayonier Confidential and Proprietary Information Biomass issues for wood transactions (green weight vs dry weight) FIA user group meeting and Biomass/Bioenergy workshop John Paul McTague - NCASI BMG-Chairman & Rayonier Inc.

2. Rayonier Confidential and Proprietary Information Problem with green weight  Green weight remains relatively constant as the increase in moisture content compensates for the decrease in specific gravity.  Moisture content and specific gravity vary greatly with age of tree, and position in the bole.

3. Rayonier Confidential and Proprietary Information Green weight is a poor and inaccurate way of determining biomass

4. Rayonier Confidential and Proprietary Information Forest products industry has had an interest in estimating dry weight yields since 1965

5. Rayonier Confidential and Proprietary Information Dry Weight  Dry weight is a function of specific gravity  Highly correlated to pulp yield and strength characteristics  Rapid measurement and computation of dry weight is problematic

6. Rayonier Confidential and Proprietary Information Moisture content is a function of physiographic region, site quality, species, size, and age

7. Rayonier Confidential and Proprietary Information Effect of age on dry weight density

8. Rayonier Confidential and Proprietary Information Effect of tree size on dry weight density

9. Rayonier Confidential and Proprietary Information CHST will provide eligible material owners (EMOs) matching payments at the rate of $1 for each $1 per dry ton paid, up to a maximum of $45 per dry ton

10. Rayonier Confidential and Proprietary Information Washington Post, January 10, 2010 – ‘program has gone awry’

11. Rayonier Confidential and Proprietary Information Three Three options under consideration, seeking comment:  > Option 1: $/$ match up to $16/dry ton for heat, power or biobased products. Match up to $45/dry ton for cellulosic ethanol or advanced biofuels. Inconsistent on whether or not this includes pellets  > Option 2: Match up to $45/dry ton. No payments made for conversion of biomass unless material is converted to heat or power above facility’s historical baseline as established by the Deputy administrator  > Option 3:  >> Match up to $45 per dry ton for facilities that »>>> Convert from fossil fuel consumption to biomass »>>> For eligible material showing exceptional promise for producing innovative advanced biofuels »>>> For every ton of remewable biomass above a facility’s historical baseline  >> Match of $16/dry ton for sale of eligible material to BCFs that do not increase renewable biomass consumption above historical baseline

12. Rayonier Confidential and Proprietary Information Eligible material for BCAP payment Eligible material: thinned trees, tops and branches, salvage, chips and bark Ineligible material: mulch, pulp, black liquor, finished lumber New proposed rules February, 2010

13. Rayonier Confidential and Proprietary Information Solid wood Chips and bark

14. Rayonier Confidential and Proprietary Information Problem: moisture meters can not be used if the moisture content exceeds the fiber saturation point (fsp) Below 30% moisture content (dry weight basis) The traditional kiln drying technique must be used if the moisture content > 30% (dry weight basis)

15. Rayonier Confidential and Proprietary Information Near infrared prediction of moisture content works well with consistent chip material, controlled light, and consistent height to material Alternatives to kiln drying of samples

16. Rayonier Confidential and Proprietary Information In Sweden, the STFI extracts large cores from load at scale house If the process is speeded up, the core could heat up, dry, and give an incorrect estimate of moisture content

17. Rayonier Confidential and Proprietary Information STFI schema

18. Rayonier Confidential and Proprietary Information Investigate the applicability of NIR spectroscopy for estimating the moisture content and specific gravity of wet-stored logs NIR widely used to rapidly estimate many wood properties, mainly lab-based measurement Studies indicate that NIR can be used on green logs Alternatives: a NCASI funded project at the University of Georgia

19. Rayonier Confidential and Proprietary Information NIR testing I IIIII IV SED LED ~ 16’ (4.9 m) × × × × × × × × SED: Small-end diameter LED: Large-end diameter

20. Rayonier Confidential and Proprietary Information Collecting NIR spectra on green discs custom-made holder

21. Rayonier Confidential and Proprietary Information  Probes are coaxial cables soldered to stainless steel rods. The soldered assembly is potted in hard plastic resin Alternatives: a NCASI funded project at the University of Georgia Estimating moisture content of wet deck storage logs with TDR

22. Rayonier Confidential and Proprietary Information Wood sample with TDR probe

23. Rayonier Confidential and Proprietary Information Initial Analysis  Points with seemingly consistent distances were second inflection and second dropoff point

24. Rayonier Confidential and Proprietary Information Initial Analysis

25. Rayonier Confidential and Proprietary Information In the West, it’s common to estimate board foot volume for the truckload as a function of green weight and piece count

26. Rayonier Confidential and Proprietary Information Hypothesis: It is easier to construct a green weight-dry weight prediction equation than build a green weight – Scribner MBF Dec. C volume relationship  Why not estimate dry weight as a function of green weight and other auxiliary variables such as: number of logs, average diameter, and stacking factor? Vol (mbf) = 1.836 + 64.79 Weight (lbs)R 2 = 0.29 Vol (mbf) = 2.466 + 79.35 Weight (lbs) – 0.085 (number of logs on truckload) R 2 = 0.58

27. Rayonier Confidential and Proprietary Information Lasers can mounted at the scale house to instantaneously scan the load and estimate number of stems and diameter

28. Rayonier Confidential and Proprietary Information Estimate of piece count and diameters