Peter Ince U.S. Forest Service Forest Products Laboratory Madison, WI PROJECTING SUPPLY AND DEMAND RELATED TO BIOENERGY Topics: 2010 RPA Forest Assessment U.S. Forest Products Module (USFPM) FIA/TPO data elements in USFPM Potential Future Bioenergy Data Needs The U.S. Forest Service produces 50-year projections of forest resource trends in the RPA Assessment reports every five years: Recent RPA Assessment Reports (2002, 2007) 2010 RPA FOREST ASSESSMENT RPA research includes long-range modeling of trends in wood supply and demand P S D Q 2010 RPA FOREST ASSESSMENT Developing Long-Range Forest Product Market Projections for the 2010 RPA Assessment . . . Approach: Global Forest Products Model (GFPM) U.S. Forest Products Module (USFPM) RPA Scenarios (based on IPCC SRES) Linkages to other RPA Models . . . 2010 RPA Models and Scenario Analysis IPCC Global Scenarios Socioeconomic Variables Bioenergy Forecasts Global Forest Products Model Translation / Downscaling Climate Forecasts US Forest Products Module (USFPM) Timber harvest & supply Translation / Downscaling Forest Dynamics Model Domestic Macroeconomics and Demographics Forecasts Forest area supply Land Use Model Forecasted Forest Conditions and Land Use Forecasted Wood Products and Timber Outputs and prices Carbon Accounting Ecosystem Services Wildlife, Water, Recreation, Forage Landscape Structure For the 2010 RPA Assessment, we developed the “U.S. Forest Products Module” (USFPM) within the Global Forest Products Model (GFPM): 2010 RPA FOREST ASSESSMENT Rationale for global model & linkages: Globalization of forest product markets Global expansion of biomass energy Forest impacts of global climate change Global forest & market interactions 2010 RPA FOREST ASSESSMENT RPA Assessment Objectives: To Provide Long-Range Information (50-year projections) about the Status and Trends of the Nation’s Renewable Resources on Forests and Grasslands ----------------------------------------------- Special focus of 2010 RPA Assessment IPCC Global Socioeconomic and Climate Scenarios . . . with global bioenergy outlook 2010 RPA FOREST ASSESSMENT Some basics about USFPM (U.S. Forest Products Module for 2010 RPA): We built USFPM to run inside the GFPM (when we USFPM we also run the global analysis) USFPM expands what was originally a single region GFPM (USA among 180 other countries) run in the USFPM models timber supply, timber harvest, and forest product production in the three U.S. subregions (North, South, West): We model U.S. wood supply and demand at several market levels in USFPM . . . Harvest Timber (standing trees, or stumpage) Mills Timber Product Outputs (delivered logs & chips) Forest Product s We model “wood fuel feedstock” demand = harvested fuelwood and fuel residues. . . Harvest Mills TPO Timber Fuelwood Harvest Wood Fuel Feedstock Fuel Residues Compared to the GFPM, USFPM has a much more completeregional supply structure for wood and wood fiber, with base year (2006) timber supplies calibrated precisely to Forest Service regional FIA data and TPO data by species group: GFPM USFPM Industrial Roundwood Fuelwood Softwood Sawtimber Hardwood Sawtimber Softwood Non-Sawtimber Hardwood Non-Sawtimber Other Indust. Rndwd. Other Fiber Pulp Wastepaper Other Fiber Pulp Recovered Paper Softwood Ag. SRWC Hardwood Ag. SRWC Mill Residues Sawlogs/Veneer logs Other Indust. Rndwd Harvest Residue Fuel Feedstock Pulpwood/Comp. FIA/TPO data elements in USFPM (corresponding to data in RPA “Forest Resources” report, GTR-WO-78 ): Sawtimber & Non-Sawtimber harvests (HW/SW) Timber Product Outputs per unit of timber harvest Harvest Residues per unit of timber harvest Fuel & Fiber (Mill) Residue outputs (HW/SW) Forest Inventories & Net Annual Growth (HW/SW) (GTR-WO-78) USFPM also allows “cascading” economic substitution of raw materials into fiber or energy products based on prices and costs – i.e. if demand or prices for fuel or pulpwood become high enough, they can consume higher value inputs: Sawlogs Agric. SRWC Pulpwood/Composite Logging Residue 60% of logging residue can be recovered and used for fuel feedstock, but this requires a price higher than current fuelwood price, to pay for residue recovery expense Fiber Residue Fuel Residue Fuel Feedstock PROJECTING SUPPLY AND DEMAND RELATED TO BIOENERGY FIA/TPO data relevant to bioenergy in USFPM include . . . Fuelwood Harvest & Logging Residue supplies, modeled as “by-products” of timber harvest activities in USFPM Fuel Residue (mill residue) supply, modeled in USFPM as “by-products” of forest product production activities Fuel Feedstock demand = Total wood demand for energy including fuelwood, fuel residues, and “cascading” supplies of pulpwood, SRWC, logging residues, etc. Summary USFPM model developed for 2010 RPA using FIA/TPO fuelwood harvest, fuel residue and logging residue data USFPM also models potential “cascading” use of logging residues, pulpwood, Ag. SRWC, and even sawlogs for energy (but only if economical to do so) The “Fuel Feedstock Demand” encompasses all wood demands for energy (not differentiated by end use) PROJECTING SUPPLY AND DEMAND RELATED TO BIOENERGY RPA Wood Energy Scenarios (IPCC) According to IPCC (and RPA scenarios), the peaking of global petroleum output will occur within the next couple of decades . . . IPCC (SRES): World petroleum output peaks during 2020-2030 in all three of our scenarios . . . Peaking of oil causes subsequent massive increases in bio-energy { 250 200 Exajoules (=10 18 joules) 300 150 100 A1B A2 B2 50 0 2100 2090 2080 2070 2060 2050 2040 2030 2020 2010 2000 1990 RPA Scenarios: We calibrate U.S. demand growth for wood fuel feedstock to IPCC scenarios on biomass energy production, as shown here . . . Exajoules (=1018 joules) 50 ~6X A1B A2 B2 40 ~5X 30 20 ~2X 10 0 2060 2050 2040 2030 2020 2010 2000 Projections calibrated to 6 EJ primary biomass energy in 2000 (as in B2 scenario) Massive (~6X) increase in U.S. wood fuel feedstock demand (2010-2060) is a feature of A1B scenario. Energy demands eat into pulpwood, mill residues & harvest residues . . . U.S. Fuel Feedstock Output by Source & A1B Projection (MMCM) 800 700 600 500 400 300 200 100 0 1970 1980 RW Harvest Harvest Residue 1990 2000 Fuel Residue Howard RW 2010 2020 SW Pulpwood TPO Fuel Residue 2030 2040 HW Pulpwood 2050 2060 Fiber Residue Total U.S. wood harvest (all sources) more than triples(!) in A1 scenario, with expanding wood energy & net exports: USFPM A1 Projection - Total U.S. Wood Harvest (MMCM) 1,800 Residue Removal 1,600 Agric. SRWC 1,400 Non-Sawtimber 1,200 Sawtimber 1,000 800 600 400 200 0 2000 2010 2020 2030 2040 2050 2060 Total U.S. wood harvest (all sources) is lower in the A2 scenario, with lower wood energy and lower net exports: USFPM A2 Projection - Total U.S. Wood Harvest (MMCM) 1,800 Residue Removal 1,600 Agric. SRWC 1,400 Non-Sawtimber 1,200 Sawtimber 1,000 800 600 400 200 0 2000 2010 2020 2030 2040 2050 2060 Total U.S. wood harvest (all sources) is lowest in the B2 scenario, with not quite a doubling in harvest by 2060: USFPM B2 Projection - Total Forest Biomass Supply (MMCM) 1,800 Residue Removal 1,600 Agric. SRWC 1,400 Non-Sawtimber 1,200 Sawtimber 1,000 800 600 400 200 0 2000 2010 2020 2030 2040 2050 2060 Potential Future Bioenergy Data Needs USFPM calibrated to current FIA/TPO data (WO-GTR-78) does not require additional wood bioenergy data However, if bioenergy use expands, future RPA models (2015 RPA?) may need more detailed wood energy data, such as harvest and residue volumes by more detailed wood energy categories (conventional fuelwood, wood for fuel pellets, wood biomass burned for electric power, wood biomass for liquid fuels, etc.) PROJECTING SUPPLY AND DEMAND RELATED TO BIOENERGY