Applied Biorefinery Sciences, LLC ™
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Applied Biorefinery Sciences, LLC ™ 4736 Onondaga Blvd, #451 . Syracuse, NY 13219 jrhoward@abs-llc.us Experts in: • Biorefinery design & engineering • Feedstock supply • Hot water extraction • Chemical separation & recovery • Fermentation Applied Biorefinery Sciences . (315) 317-9166 Using forest resources to create: • Carbon-neutral, biodegradable products • Lasting, renewable energy alternatives • Permanent jobs for sustainable rural communities Forest Biorefineries Forest Biorefineries Feedstock Issues Joel R. Howard, Ph.D. Chief Executive Officer Applied Biorefinery Sciences, LLC jrhoward@abs-llc.us and Daniel Empie, Consulting Forester Forest Pond Forestry, LLC danempie585@hotmail.com Applied Biorefinery Sciences Forest Biorefineries Feedstock: What is it? Applied Biorefinery Sciences Forest Biorefineries Feedstock Applied Biorefinery Sciences Forest Biorefineries Feedstock = • woody biomass • chipped (match book size) Applied Biorefinery Sciences Forest Biorefineries wood chip image Applied Biorefinery Sciences Forest Biorefineries Feedstock: • why important? • is the “tail that will wag your dog” • biorefinery planning must START with Feedstock, or you are destined to fail Applied Biorefinery Sciences Forest Biorefineries Feedstock issues are: • • • • Quantity Reliability Logistics Sustainability Applied Biorefinery Sciences Forest Biorefineries Feedstock issue #1: • • • • Quantity Reliability Logistics Sustainability Applied Biorefinery Sciences Forest Biorefineries Feedstock - Quantity According to Thomas “Tip” O’Neill (House Speaker & Rep. Mass) “All politics is local.” Applied Biorefinery Sciences Forest Biorefineries Feedstock - Quantity According to Joel Howard (CEO, Applied Biorefinery Sciences) The “nutshell take-home” message here: “All wood supply is local.” Applied Biorefinery Sciences Forest Biorefineries Feedstock – Quantity (Chicken/Egg problem) Site selection Facility size This is really an iterative process, back and forth between these two decision points Applied Biorefinery Sciences Forest Biorefineries Feedstock – Quantity Start this discussion with Site selection Applied Biorefinery Sciences Forest Biorefineries Site selection is More than throwing a dart at a map Applied Biorefinery Sciences Forest Biorefineries Feedstock – Quantity Site selection Forested region is best − “biorefinery wood” usually low value − short haul distances more cost effective Applied Biorefinery Sciences Forest Biorefineries Applied Biorefinery Sciences Forest Biorefineries Feedstock – Quantity Site selection Forested region is best − “biorefinery wood” usually low value − short haul distances more cost effective Pick sub-region to match: − species requirements − business objectives Applied Biorefinery Sciences Forest Biorefineries Applied Biorefinery Sciences Forest Biorefineries Feedstock – Quantity Site Selection Forested region is best Pick a sub-region Pick a specific site − wood availability? −competing and future uses in the area −middle of a wood basket −consider the likelihood of intercepted wood supply − space? − utilities (heat, electricity, waste water, etc.)? − access (roads, rail)? Applied Biorefinery Sciences Forest Biorefineries X Applied Biorefinery Sciences Forest Biorefineries Feedstock – Quantity Site selection complete? Now, “size” the facility (dry tons/day) − Bigger is NOT necessarily better ∗ US wood using industry “grew-up” around: small-scale facilities and suppliers shorter haul distances cheap fuel ∗ Larger-scale facilities often outgrew the geographic landscape causing closure of facilities and export of jobs Applied Biorefinery Sciences Forest Biorefineries Feedstock – Quantity Site selection complete? Now, “size” the facility (dry tons/day) − Bigger is NOT better − Base facility size on ~75 mile haul radius Applied Biorefinery Sciences Forest Biorefineries Feedstock – Quantity After choosing facility location and size, Implement an in-depth wood resource study − Cost of the wood resource study? ∗ $25,000 to $50,000 Applied Biorefinery Sciences Forest Biorefineries Feedstock – Quantity After choosing facility location and size, Implement an in-depth wood resource study − Cost - $25,000 to $50,000 − Identify sphere of influence (120 miles) Applied Biorefinery Sciences Forest Biorefineries 120 miles? Applied Biorefinery Sciences Forest Biorefineries Feedstock - Quantity Site Selection An in-depth wood resource study entails Cost - $25,000 to $50,000 − Identifying sphere of influence (120 miles) − Getting generalized “sphere” data: ∗ acres forest land ∗ species composition ∗ annual growth rates, etc. Applied Biorefinery Sciences Forest Biorefineries Feedstock - Quantity Site Selection An in-depth wood resource study entails Cost - $25,000 to $50,000 − Identifying sphere of influence (120 miles) − Getting generalized “sphere” data − Assessing competitive wood use: ∗ sawmills, pulp mills, combustion, etc. Applied Biorefinery Sciences Forest Biorefineries Feedstock - Quantity An in-depth wood resource study entails Identifying sphere of influence (120 miles) Getting generalized data for the sphere Assessing competitive wood use Conducting personal interviews ~75 mi. : − political representatives, IDAs, EDAs − landowners − loggers and truckers Applied Biorefinery Sciences Forest Biorefineries Feedstock - Quantity Wood Resource Study Identifying sphere of Influence Getting generalized data for the sphere Assessing competitive wood use Conducting personal interviews (75 miles) Considering socio-economic factors: − Is cutting the forest acceptable?: − − − − Applied Biorefinery Sciences legal restrictions financial factors ecological factors ideological factors (human element) Forest Biorefineries Feedstock issue #2: • • • • Quantity Reliability Logistics Sustainability Applied Biorefinery Sciences Forest Biorefineries Feedstock - Reliability Determined as part of the wood resource study in your sphere: Long-term forest health (↑? or ↓ ?) Applied Biorefinery Sciences Forest Biorefineries Feedstock - Reliability Determined as part of the Wood Resource Study in your sphere Long-term forest health (↑? or ↓ ?) Wood industry competition: − Existing − Announced − Anticipated (rumored) Applied Biorefinery Sciences Forest Biorefineries Feedstock - Reliability Determined as part of the Wood Resource Study in your sphere Long-term forest health (↑? or ↓ ?) Wood industry competition Changing socio-economic values: − Societal dis-connect from origin of resources: ∗ People do not link consumption of goods with natural resource extraction: •Lumber comes from “lumber yard” •Stationery comes from “office supply store” •Beef comes from “grocery store” Applied Biorefinery Sciences Forest Biorefineries Feedstock - Reliability Determined as part of the Wood Resource Study in your sphere Long-term forest health (↑? or ↓ ?) Wood industry competition Changing socio-economic values: − Societal dis-connect from origin of resources: ∗ People do not link consumption of goods with natural resource extraction: ∗ Therefore, cutting the forest may be “unacceptable” Applied Biorefinery Sciences Forest Biorefineries Feedstock - Reliability Determined as part of the Wood Resource Study in your sphere Long-term forest health (↑? or ↓ ?) Wood industry competition Changing socio-economic values − Societal dis-connect from origin of resources − NIMBY (Not In My Back Yard): − Need for jobs Applied Biorefinery Sciences Forest Biorefineries Feedstock issue #3: • • • • Quantity Reliability Logistics Sustainability Applied Biorefinery Sciences Forest Biorefineries Feedstock - Logistics (Assuming available forest stands, then): Harvesting network − foresters, loggers, truckers − this could be a problem: ∗ ∗ ∗ ∗ ∗ long-term decline in wood use fewer loggers and truckers increased haul distances more mechanization increased cost of equipment Applied Biorefinery Sciences Forest Biorefineries Feedstock - Logistics (Assuming available forest stands) Harvesting network (not assured) Regional road and rail networks − quality/speed of travel − design − terrain − condition roads/rails Applied Biorefinery Sciences Forest Biorefineries Feedstock - Logistics Harvesting network (not assured) Regional road and rail networks − Quality/Speed of travel − Federal work standards (limit distance) ∗ Commercial truck drivers: • max 14 hours/day on duty • max 11 hours/day actually driving • 10 consecutive off-duty hours ∗ Railroad engineers: • max 12 hours on duty • 10 consecutive off-duty hours Applied Biorefinery Sciences Forest Biorefineries Feedstock - Logistics Harvesting network (not assured) Regional road and rail networks − Quality/Speed or travel − Federal work standards (limit haul distance) − As haul distance ▲: ∗ ∗ ∗ ∗ # fleet vehicles ▲ # deliveries/day ▼ road-use taxes ▲ family instability ▲ Applied Biorefinery Sciences Forest Biorefineries Feedstock - Logistics Regional road and rail networks Quality/Speed or travel Federal work standards (limit haul distance) Haul distance (“costs”) Wood prices: − Pulpwood prices ∗ 1978 - $3.00/cord ∗ 2008 - $10.00/cord − increased at ~4%/yr over last 30 years Applied Biorefinery Sciences Forest Biorefineries Feedstock - Logistics Regional road/rail network Quality/Speed or travel Federal work standards (limit haul distance) Haul distance (“costs”) Wood prices increased @ 4%/yr since 1978 Fuel − rail more efficient than truck − since 1978 fuel price increased @ 5%/yr Applied Biorefinery Sciences Forest Biorefineries Actual diesel fuel prices $0.49 in 1978 ~$2.40 May 2009 Applied Biorefinery Sciences Forest Biorefineries Actual diesel fuel prices $0.49 in 1978 49 carried forward 31 yrs to $2.40 = 5%/yr increase Applied Biorefinery Sciences ~$2.40 May 2009 Forest Biorefineries Feedstock - Logistics Regional road/rail network Quality/Speed or travel Federal time limitations Haul distance (economics) Wood prices increased @ 4%/yr since 1978 Fuel − rail more efficient than truck − fuel price rise increased 5%/yr since 1978 − which means transportation costs rising faster than supply chain income Applied Biorefinery Sciences Forest Biorefineries Feedstock - Logistics Regional road/rail network Quality/Speed or travel Federal time limitations Haul distance (economics) Fuel A “right-sized” facility = shorter haul distances more efficient use of people and equipment more stable work force greater density of sustainable rural communities Applied Biorefinery Sciences Forest Biorefineries Feedstock issue #4: • • • • Quantity Reliability Logistics Sustainability Applied Biorefinery Sciences Forest Biorefineries Feedstock - Sustainability Sustained yield forest management: Part of long-term European forestry for centuries Part of U.S. forestry practice for at least 70 years Means ensuring perpetual forest to meet owner objectives: recreation wildlife wood resources wilderness aesthetics or some combination of the above Applied Biorefinery Sciences Forest Biorefineries Feedstock - Sustainability Sustained yield forest management How does it work? Assume the forest is your money divided and managed in numerous separate bank accounts that “grow” everyday (compound interest) − If you withdraw only accrued interest from the accounts, the original principle never decreases − As a group, the accounts will yield income in perpetuity Applied Biorefinery Sciences Forest Biorefineries Feedstock - Sustainability Sustained yield forest management How does it work? Assume the forest is your money collecting interest Similarly, by understanding how trees and forests grow, you can remove portions of the forest every year and never decrease the original “principle” growing stock The forestry profession knows how to do this Forest industry has been sustainably managing their forests for decades; it is in their best interest to NOT run out of wood for lumber or paper. Applied Biorefinery Sciences Forest Biorefineries Compare these forest stands BC NW-PA Applied Biorefinery Sciences BC et al N-NY Forest Biorefineries Compare these forest stands • Both can be improved by removing the small diameter trees: • But without a market no one can afford to spend time cutting them BC NW-PA Applied Biorefinery Sciences BC et al N-NY Forest Biorefineries Compare these forest stands • Biorefineries: • use small otherwise unmerchantable wood, and • therefore provide the means for improving forests BC NW-PA Applied Biorefinery Sciences BC et al N-NY Forest Biorefineries Feedstock - Sustainability Sustained yield forest management How does it work? So, the good news? Biorefinery feedstock: is low quality wood hot water extraction does not compete with wood used for lumber, pulp, fiberboard, or pellets removal actually improves the forest by leaving space for better trees to grow allows management of forest stands previously viewed as “unmerchantable” Applied Biorefinery Sciences Forest Biorefineries Summary Applied Biorefinery Sciences Forest Biorefineries Feedstock issues are: • • • • Quantity Reliability Logistics Sustainability Applied Biorefinery Sciences Forest Biorefineries Feedstock issue #1 • Quantity f(x) : – – – – site selection facility size competition (wood demand) economic climate (prices) Applied Biorefinery Sciences Forest Biorefineries Feedstock issue #2 • Quantity • Reliability f(x) : – regional forest health/condition – political/social issues – economic influences Applied Biorefinery Sciences Forest Biorefineries Feedstock issue #3 • Quantity • Reliability • Logistics f(x) : – wood availability – efficient transportation – managing human resources Applied Biorefinery Sciences Forest Biorefineries Feedstock issue #4: • • • • Quantity Reliability Logistics Sustainability for: – wood resources – alternative fuels – rural communities Applied Biorefinery Sciences Forest Biorefineries Two “take home” messages: Applied Biorefinery Sciences Forest Biorefineries #1 - Feedstock is critical to biorefinery success and, Applied Biorefinery Sciences Forest Biorefineries #2 - Feedstock issues are: • • • • Quantity Reliability Logistics Sustainability Applied Biorefinery Sciences Forest Biorefineries Questions? Applied Biorefinery Sciences Forest Biorefineries
