Applied Biorefinery Sciences, LLC ™

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Applied Biorefinery Sciences, LLC ™
4736 Onondaga Blvd, #451 . Syracuse, NY 13219
[email protected]
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
[email protected]
and
Daniel Empie, Consulting Forester
Forest Pond Forestry, LLC
[email protected]
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:
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•
•
•
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)
ƒ Site selection
ƒ 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
ƒ 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
ƒ Forested region is best
− “biorefinery wood” usually low value
− short haul distances more cost effective
ƒ Pick sub-region to match:
− species requirements
− business objectives
Applied Biorefinery Sciences
Forest Biorefineries
Applied Biorefinery Sciences
Forest Biorefineries
Feedstock – Quantity
Site Selection
ƒ Forested region is best
ƒ Pick a sub-region
ƒ 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
ƒ Site selection complete?
ƒ Now, “size” the facility (dry tons/day)
− Bigger is NOT necessarily better
∗ US wood using industry “grew-up” around:
ƒ small-scale facilities and suppliers
ƒ shorter haul distances
ƒ 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
ƒ Site selection complete?
ƒ 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
ƒ After choosing facility location and size,
ƒ 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
ƒ After choosing facility location and size,
ƒ 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
ƒ 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
ƒ 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
ƒ Identifying sphere of influence (120 miles)
ƒ Getting generalized data for the sphere
ƒ Assessing competitive wood use
ƒ Conducting personal interviews ~75 mi. :
− political representatives, IDAs, EDAs
− landowners
− loggers and truckers
Applied Biorefinery Sciences
Forest Biorefineries
Feedstock - Quantity
Wood Resource Study
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ƒ
ƒ
ƒ
Identifying sphere of Influence
Getting generalized data for the sphere
Assessing competitive wood use
Conducting personal interviews (75 miles)
ƒ Considering socio-economic factors:
− Is cutting the forest acceptable?:
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−
−
−
Applied Biorefinery Sciences
legal restrictions
financial factors
ecological factors
ideological factors (human element)
Forest Biorefineries
Feedstock issue #2:
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Quantity
Reliability
Logistics
Sustainability
Applied Biorefinery Sciences
Forest Biorefineries
Feedstock - Reliability
Determined as part of the wood
resource study in your sphere:
ƒ Long-term forest health (↑? or ↓ ?)
Applied Biorefinery Sciences
Forest Biorefineries
Feedstock - Reliability
Determined as part of the Wood
Resource Study in your sphere
ƒ Long-term forest health (↑? or ↓ ?)
ƒ 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
ƒ Long-term forest health (↑? or ↓ ?)
ƒ Wood industry competition
ƒ 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
ƒ Long-term forest health (↑? or ↓ ?)
ƒ Wood industry competition
ƒ 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
ƒ Long-term forest health (↑? or ↓ ?)
ƒ Wood industry competition
ƒ 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:
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•
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•
Quantity
Reliability
Logistics
Sustainability
Applied Biorefinery Sciences
Forest Biorefineries
Feedstock - Logistics
(Assuming available forest stands, then):
ƒ 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)
ƒ Harvesting network (not assured)
ƒ Regional road and rail networks
− quality/speed of travel
− design
− terrain
− condition roads/rails
Applied Biorefinery Sciences
Forest Biorefineries
Feedstock - Logistics
ƒ Harvesting network (not assured)
ƒ 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
ƒ Harvesting network (not assured)
ƒ 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
ƒ Quality/Speed or travel
ƒ Federal work standards (limit haul distance)
ƒ Haul distance (“costs”)
ƒ 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
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ƒ
ƒ
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Quality/Speed or travel
Federal work standards (limit haul distance)
Haul distance (“costs”)
Wood prices increased @ 4%/yr since 1978
ƒ 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
ƒ
ƒ
ƒ
ƒ
Quality/Speed or travel
Federal time limitations
Haul distance (economics)
Wood prices increased @ 4%/yr since 1978
ƒ 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
ƒ
ƒ
ƒ
ƒ
Quality/Speed or travel
Federal time limitations
Haul distance (economics)
Fuel
A “right-sized” facility =
ƒ
ƒ
ƒ
ƒ
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:
•
•
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•
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?
ƒ 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?
ƒ Assume the forest is your money collecting interest
ƒ 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
ƒ The forestry profession knows how to do this
ƒ 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:
ƒ is low quality wood
ƒ hot water extraction does not compete with wood
used for lumber, pulp, fiberboard, or pellets
ƒ removal actually improves the forest by leaving
space for better trees to grow
ƒ 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:
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•
•
•
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
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