Module 1: Understanding Bioenergy Resources Biomass is the most important renewable energy source used in the world today. It is used mostly in solid form and, to a lesser extent, in the form of liquid fuels and gas. Despite many factors favoring bioenergy, the utilization of bioenergy has increased at only a modest rate in modern times. Large scale utilization of biomass for energy is still limited to a few countries. In the United States, the forest products industry is probably the largest user of forest biomass, using it to generate more than 70% of its energy needs. Climate change, forest health, wildfires, rural development, and energy security are problems facing the United States today. The increased utilization of forest biomass can help solve these problems. Energy, economic, and environmental benefits can be derived from the use of biomass for bioenergy and bio-based products. This presentation about bioenergy is designed to provide an international and national look at the issues facing bioenergy.

Module 1: Understanding Bioenergy Resources Objectives Define woody biomass Define bioenergy Explain the benefits of using woody biomass for bioenergy Describe the role woody biomass plays in global bioenergy production Specific objectives for this lesson in the biomass training program include: Define woody biomass Define bioenergy Explain the benefits of using woody biomass for bioenergy Describe the role woody biomass plays in global bioenergy production Module 1: Understanding Bioenergy Resources

Module 1: Understanding Bioenergy Resources Outline Availability Utilization Biomass in the United States Benefits Promotion This lesson consists of 5 main topic areas including: Availability Utilization Biomass in the US Benefits Promotion Module 1: Understanding Bioenergy Resources

Module 1: Understanding Bioenergy Resources What is Woody Biomass? Woody biomass is the accumulated mass, above and below ground, of the wood, bark, and leaves of living and dead woody shrubs and trees. Woody biomass is the accumulated mass, above and below ground, of the wood, bark, and leaves of living and dead woody shrubs and trees. Module 1: Understanding Bioenergy Resources

Module 1: Understanding Bioenergy Resources What is Bioenergy? Energy produced from biomass including woody biomass, agricultural biomass, and other biological materials Includes electricity, heat, and transportation fuels Bioenergy is energy produced from biomass including woody biomass, agricultural biomass, and other biological materials. This includes electricity, heat, and transportation fuels. Module 1: Understanding Bioenergy Resources

Availability of Biomass OECD – commercial, industry-led Asia and Latin America – modern, commercial Africa – harvested informally Significant regional differences exist with regard to the availability and use of biomass resources in the world. In OECD countries, including the United States, most biomass used for energy is used commercially. In the United States, the forest products industry is the largest user of woody biomass for bioenergy. Over 70% of their energy requirement is derived from biomass from by-products of their manufacturing processes. In many parts of Asia and Latin America modern and commercial bioenergy options are readily available and significant. The Brazilian ethanol program, based largely on sugar cane, for example, is well-established and provides alternative fuel to the transportation sector and at highly competitive prices. In Africa, most of the biomass used in the continent is harvested informally and only a small part is commercialized. Traditional technologies predominate. In addition to woodfuels, other biomass fuels such as forest and crop residues, as well as animal waste, are common sources of bioenergy. Besides the amount of readily available biomass in the form of residues, and the potential for improved efficiency in technologies being presently applied, many countries still have land available for energy plantations. Integrating biomass harvesting for energy purposes with forestry and agricultural activities is another option. In most regions, the use of biomass still needs to become sustainable, this being true both where traditional and modern technologies are applied. Source: IEA 2003. Renewables Information. Paris Module 1: Understanding Bioenergy Resources

Utilization of Biomass Biomass is the most important renewable energy source in the world today 10.6% world total energy supply - 77.4% total renewable energy supply Solid biomass has grown at 1.8% Liquid biomass has grown at 84% Liquid Biomass 0.7% Renewable Municipal Solid Waste 1.20% Solid biomass/ charcoal 77.4% Biomass is the most important renewable energy source used in the world today. Although the use of renewable sources has increased constantly in the past three decades, their use has not kept pace with the use of fossil fuels, which has increased five times more in absolute terms. Many industrialized countries are major users of biomass. In Sweden and Finland, for example, biomass accounts for approximately one-fourth of the energy used. In Brazil, 27% of the energy comes from biomass, almost half being sugarcane based. In these countries, biomass is being used to feed modern and efficient systems, providing essential energy services. Other renewable energy sources such as solar, wind, and tide comprise a very small fraction, corresponding to less than 0.1% of the world total energy supply; while biomass corresponds to 10.6% of the world total energy supply and 77.4 % of the total renewable energy supply (at right). In general, biomass is mostly used in solid form and, to a lesser extent in the form of liquid fuels, renewable municipal solid waste and gas. However, recent trends show a faster increase in the use of liquid biomass and municipal waste than solid biomass. Notably, while the use of solid biomass increased by 1.8 percent per year in industrialized countries since 1990, liquid biomass has grown at an annual rate of 84 percent. Some opportunities are being realized particularly as a result of efforts to find new alternatives to fossil fuels in the transportation sector and in waste management. Nevertheless, considering the resource base that is readily available, for example in the form of residues from forestry and agriculture, and the great potential to grow more biomass, there is much more that can be done to enhance the role of bioenergy. In addition, interest in assessing biomass potential in different parts of the world has increased in the past few years in face of the implied pressure that bioenergy utilization can put on natural resources such as land and water. We are likely to see more of these types of studies in the near future. New technologies, for example for gasification of wood materials or black liquor in the pulp and paper industry, are likely to further increase the efficiency of biomass utilization. Gas from Biomass 0.50% Source: IEA 2003. Renewables Information. Paris Module 1: Understanding Bioenergy Resources

Biomass in the United States Domestic energy production 9% renewable: 47% biomass: 72% wood-based 2% Wind 45% Hydroelectric 5% Geothermal The United States is covered by approximately 595 million acres of forestlands. Utilizing only trees that are currently considered to be pre-commercial, non-merchantable, and residues from timber harvesting operations and “healthy forest and fire hazard reduction” operations, these forestlands can produce a total of approximately 368 million dry tons of biomass annually. Yet, even with such a large available resource in the United States, only 9% of our domestic energy production is in the form of renewable energy. Forty-seven percent of that energy is from biomass (EIA 2004). While wood-based biomass is not as highly publicized as other forms (corn, sugarcane, etc.), it accounts for 72% of the source material for biomass generated energy. Our consumption of renewable energy is even lower, with only 6% of our total consumption being from renewable sources. Biomass accounts for approximately 47% of the renewable energy consumed in the U.S. 47% Biomass 1% Solar Source: Energy Information Administration 2004 Module 1: Understanding Bioenergy Resources

Biomass & Forest Products Forest products industry is largest user of forest biomass 70% of energy in-house Created from by-products The forest products industry is probably the largest user of forest biomass, generating more than 70% of its energy in-house, most of which comes from by-products (black liquor from the papermaking process, bark, hogged fuel, and dirty chips) of its manufacturing process. Module 1: Understanding Bioenergy Resources

Biomass & Forest Products The process of merchandising wood products from the forest is a well-developed process. As trees are harvested they are accumulated at a central location and sorted into the highest value products. These products are then transported to manufacturing facilities for processing into the targeted products. Primary products include lumber, paper, fiber board, oriented strand board, pulp, and other wood composites. Chips bark, and other by-products created from these processes are used to produce boiler fuel for the manufacturing processes. "Clean" chips and wood flakes can be used to produce such commodities as paper, oriented strand board, particle board, etc. "Dirty" chips are used to produce energy for the facility, mulch, etc. In some cases, residual logging debris, under-sized trees, and other woody biomass are converted into wood chips by an in-woods chipper. These residue materials can be used for the production of electricity, dyes, inks, adhesives fuels, chemicals, and many other bio-based products. However, this material is most frequently left on site and unutilized because of handling and transportations costs as well as the lack of markets. Dirty chips are another by-product used to generate energy for the forest products industry. Module 1: Understanding Bioenergy Resources

Module 1: Understanding Bioenergy Resources Benefits of Biomass Environmental Benefits Economic Benefits Energy Benefits There are many benefits related to the utilization of biomass for bioenergy. These include: Environmental benefits Economic benefits Energy benefits Module 1: Understanding Bioenergy Resources

Environmental Benefits Carbon sequestration Reduced greenhouse gas emissions The global climate change agenda is a promising new platform whereby renewable technologies can receive support to gain new markets.  Images of the Arctic Sea show that the ice boundary has shrunk significantly since 1979. In this context, bioenergy is an attractive alternative to help reduce fossil fuel use. The need for renewable energy alternatives to mitigate climate change, the possibility to produce biomass resources on a sustainable basis, the opportunity to address rural socio-economic problems by promoting bioenergy, and the restructuring of energy markets favoring small-scale decentralized generation are some of the factors that make bioenergy options particularly interesting in many countries. Besides being renewable, bioenergy can bring about other environmental benefits including the recovery of degraded land, reduction of soil erosion, and protection of watersheds. Carbon sequestration, the removal of carbon dioxide from the atmosphere into long-lived carbon pools, and the mitigation of greenhouse gases, are of prime importance in reducing global climate change. Carbon sequestration pools associated with forests can include above-ground living biomass (trees and shrubs), living biomass in soils (roots, soil organic matter, etc.), and products created from biomass (lumber, paper, etc.) . Forests utilize carbon dioxide in photosynthesis and emit less carbon dioxide than fossil fuels when burned. The carbon cycle (left) is basically a closed cycle when using forest biomass to produce bioenergy and the process of burning forest biomass is essentially a carbon neutral process. Module 1: Understanding Bioenergy Resources

Environmental Benefits Forest health Reduce wildfire risk Reduced mortality due to insect and disease Recovery of degraded land A primary reason for the recent high incidence of wildfires is the over abundance of available fuel wood. At the forest level, the use of biomass for bio-based products may help decrease the risk of wildfires. Creating a healthier forest by removing brush, small diameter trees, damaged trees, and other fuel sources can lessen the possibility of large, high intensity wildfires as well as mortality caused by insect and disease (see the Healthy Forests Initiative). A healthier forest can also support a larger diversity of wildlife. The use of sustainable forest biomass for bioenergy and bio-based products will benefit forests, wildlife, and humanity. Module 1: Understanding Bioenergy Resources

Module 1: Understanding Bioenergy Resources Economic Benefits Landowners Increased income potential Reduced site preparation costs Communities New markets for forest products Economic diversification During the recent past, Southern forest landowners have been faced with declining pulpwood markets which utilize small diameter and low value tress. Removal of these trees is necessary to provide growing space and other resources for the production of larger, higher-value products. Additional markets need to be developed to replace this market for small diameter trees. In addition, a significant portion of harvested timber is left on site in the form of logging residues. Finding or developing markets for this material can provide an additional income source for landowners. Removing this material from the site after harvesting can also reduce site preparation costs for the new tree crop. *Presenters should replace the top graphic related to carbon prices with new information that can be obtained by visiting the Chicago Climate Exchange website at: http://www.chicagoclimatex.com/ For communities dependent on timber, market changes can have dramatic impacts on employment, stability, and viability. Many of these rural communities need additional markets in which to trade timber products. Sustainable forestry for bioenergy and bio-based products can provide one solution to the problems faced by timber-dependent communities in the South. Harvesting logging residues, building processing facilities, and utilizing the products created can bolster economic conditions in Southern rural communities. Developing a bioenergy industry within a community also has the potential to diversify the economy from one based on traditional forest products into an economy based on newer high value products such as energy and other bio-products. Module 1: Understanding Bioenergy Resources

Module 1: Understanding Bioenergy Resources Energy Benefits Reduced fossil fuel use Renewable source Improved energy security The world as a whole and the United States, in particular, is facing an increasingly worrisome energy future. The United States uses more energy from fossil fuels and less from renewable energy sources than the world-wide average. On a world-wide basis, roughly 80% of the total energy supply comes from fossil fuel sources, 13% from renewable energy sources, and 7% from nuclear power. In the United States, 86% of the total energy consumed comes from fossil fuels, 6% from renewable energy sources, and 8% from nuclear power. A rapidly industrializing world, with China, Brazil and India in the lead, is significantly increasing the global demand for fossil fuel energy supplies. In contrast, estimated recoverable reserves of coal, oil, and natural gas have only remained stable due to improved extraction technology. Most of the largest oil fields in the world were discovered and brought into production decades ago and are facing serious, near-term declines in oil output. Price increases for oil and natural gas are believed to be all but inevitable.   The United States is particularly vulnerable to oil supply disruptions or price increases since it imports over 50% of its crude oil consumption. Crude oil is imported from Canada, Mexico, and Venezuela in addition to the Middle East. More efficient and effective utilization of biomass will increase the amount of renewable energy sources used and help to lessen the dependence on fossil fuels and foreign supplies of fossil fuels. In this context, biomass emerges as an attractive modern energy source provided it can be economically utilized. All types of energy services can and are being provided today using biomass, with the reliability, safety, and efficiency required by the modern economy and society. Geopolitical considerations also have come to play an important role in energy security. As a result, many countries have realized the need to improve the efficiency of energy generation, distribution, and consumption, and to harness local resources as a way to increase the security of the energy supply, reverse fossil fuel dependency, and improve trade balance.  Module 1: Understanding Bioenergy Resources

Module 1: Understanding Bioenergy Resources Energy Potential Forest residues Ethanol potential Southern advantage The South has tremendous energy potential for using forest residues for ethanol production. Using cellulosic ethanol, the advantage clearly lies with the Southern states. Source: Mabee et al. 2006 Module 1: Understanding Bioenergy Resources

Module 1: Understanding Bioenergy Resources Energy Potential Agricultural residues Ethanol potential Midwestern advantage If traditional ethanol is used produced, the advantage clearly lies with the Cornbelt region of the US. Source: Mabee et al. 2006 Module 1: Understanding Bioenergy Resources

Module 1: Understanding Bioenergy Resources Promoting Biomass Market Formation Bioenergy systems Biofuels Challenges Bioenergy needs to be considered from a systems perspective. Like the fuel chain, energy systems are composed of a variety of technologies for energy generation, distribution, and use which tend to cause significant environmental impacts. Even if individual technologies can sometimes be simple, the internal logistics of energy systems can be quite intricate. Single technological solutions are seldom sufficient to create an efficient energy delivery chain that is competitive with conventional solutions. It is at the systems level, in which various specific technologies are included, industrial processes integrated, and resources well managed that bioenergy can become a mainstream alternative. In order for biomass to become a viable alternative energy source market formation and challenges related to bioenergy utilization need to be addressed. Market formation will include the formation of bioenergy systems and bioefuels. Module 1: Understanding Bioenergy Resources

Module 1: Understanding Bioenergy Resources Market Formation System-level focus across entire value chain Biomass production Harvesting, transport, processing Utilization and energy generation capacity Direct combustion Conversion technology Consumer demand Marketing messages Reliable and affordable Enables secure energy future Conditions for the implementation of different energy systems vary among regions. For example, natural resource availability, existing infrastructure, and the types of services on demand are likely to define technology choices and systems options. Policies and priorities may also imply more or less favorable conditions for given technologies and solutions, setting the development path, promoting, or rejecting opportunities. The existing energy infrastructure is entangled and is heavily dependent on non-renewable resources. This infrastructure has been reliable because the technologies to deploy and use fossil fuels are well-developed, synergies exist with other industries, and there are markets for these fuels operating internationally. There is also often an established practice of subsidizing fossil fuels either directly as a way to retain jobs, or by not internalizing the full costs implied in their deployment and utilization. Therefore, the costs of shifting energy systems towards renewable alternatives are not simply the costs of developing new technologies and creating markets for them, but also the costs of shifting towards new infrastructure systems and other associated costs. Energy systems such as a combined heat and power plant produce commodities that are an essential part of industrial production systems and people's lives all over the globe. Energy systems need to be reliable and affordable, and transformation of their organization should not put security of supply at risk. Thus, when we think of bioenergy utilization in a context where modern energy services are already being provided, our initial focus is with the techno-economic transition per se and how we can put new technological solutions, and perhaps also services, into place with minimum disturbance in the quality of services provided. It is a matter of finding the right entrance for the new solution either by simply shifting smoothly towards a new fuel (i.e. from coal to biomass in district heating or electricity generation) or by adding a new service dimension as a way to stimulate change (i.e. reduction of carbon emissions). Bioenergy offers the possibility of harnessing domestic, rural-based, low-carbon and sustainable energy sources in both industrialized and developing countries. But concerted action is needed to develop bioenergy systems as the experience of the European Union illustrates. Also developing countries have, in many cases, identified their biomass potential but many still lack the institutional base to develop bioenergy systems and plan for their sustainability. Module 1: Understanding Bioenergy Resources

Biofuels Opportunities Solid fuels Pellets, briquettes Liquid fuels Ethanol Bio-diesel Biofuels have traditionally been used in the same geographic region in which they are produced. This has been changing rapidly in the past years. For example, in Northern Europe solid biofuels trade has grown steadily for a decade. High taxes on fossil fuels, a well-developed burning capacity for solid fuels and new restrictions in waste legislation in Europe have created the base for biofuel markets. More recently, liquid biofuels for transportation have contributed to create global biofuel markets. While the possibility of using local and regional potential for bioenergy is a great advantage, the transformation of biofuels into commodities and the formation of international markets shall determine the extent to which bioenergy will become a major modern energy source in the coming decades. The formation of biofuel markets is likely to benefit developing countries which, in general, have favorable conditions for growing biomass. Module 1: Understanding Bioenergy Resources

Challenges in Bioenergy Supply and Market Development Integration Competitiveness and Mainstreaming Sustainability Biofuel Supply and Market Development: Increasing internationalization of commodity markets for biofuels requires standardization and regulations that are still under development. Policy makers need to find ways of balancing local supply with imported fuels in order to retain the positive community impacts of biomass production and guarantee energy security. Transnational bioenergy companies are emerging. Integration: A more rapid and effective development of bioenergy, with the reliability and cost efficiency commercially required, demands integration and coordination. In logistical terms, bio-based industrial clusters may emerge to promote the desired synergies. This poses challenges also in terms of designing multi-sectoral policies. Competitiveness and Mainstreaming: In the near future, bioenergy will benefit from the formation of carbon markets and incentives being provided to increase the use of renewables. But as bioenergy becomes a mainstream alternative, it will have to deal with decreasing incentives and increasing cost competitiveness. Conditions for designing strategies for the segment are changing significantly. Sustainability: As biofuel markets grow and bioenergy evolves from a peripheral to mainstream alternative in the energy sector, close monitoring of the impacts of large-scale biomass utilization is necessary to guarantee the environmental sustainability of bioenergy systems. Module 1: Understanding Bioenergy Resources

Module 1: Understanding Bioenergy Resources Creating Synergies Energy sector Greater use of by-products for fuel Sale of excess electricity to the grid Agriculture Cooperate in market development for ethanol Bioenergy is intrinsically multi-sectoral and, therefore, cannot be considered within the realm of the energy sector alone. Actually, bioenergy is better stimulated when integrated with other business sectors and industrial processes. The biomass resource chain, for example, is closely linked with the forest and agriculture sectors. Energy There are a number of cost efficient measures to assist biofuels and bioenergy integration into the forest industry. Recent studies show that, by using the best technology commercially available, the pulp and paper industry can make a great amount of biofuel available to the market, if only energy efficiency is given high priority. Gasification of black liquor alone has the potential to double power generation in the sector once it reaches a stage of commercial breakthrough. Upgraded solid biofuels such as pellets are mainly produced from by-products of saw mills. The largest portion of the by-products is used either to meet the industries' internal energy demand, or as raw material in the pulp industry. Only a fraction is upgraded to biofuels. In the long run, however, depending on how the price relation among various products evolves, it is realistic to expect that saw mills will use solid biofuels of lower quality to meet internal energy needs, and their own by-products to produce other fuels, i.e. pellets, thereby better exploiting the value and economy of the by-product. Bioenergy generation companies need vertical integration of the fuel chain to guarantee quality biofuels derived from waste handling and forestry activities. The sector also needs to advance integration in consumer markets in order to exploit the full potential and qualities of bioenergy. But there are barriers to such integration. For example, biofuel and bioenergy production are at the margin of core activities of most forest companies. Other non-technical barriers include issues related to the distribution of business ownership, as well as the sharing of responsibility for management and risks. In the long run, cost-efficient bioenergy production could be integrated into forest fiber production and wood-using industries, and become an important component of the forest industries, particularly in temperate zones. In this context, effective ways of sharing the costs for guaranteeing the long-term production capacity of the forestland, for example the application of ash resulting from the bioenergy process to enhance forest stands site productivity need to be developed. Agriculture Agricultural policy reforms are needed in many countries today due to the high costs of subsidies. This is the case in Europe and North America. In addition, developing countries are pushing for more open markets for agricultural products as an important part of increasing free trade. In Europe, pending reforms may impact the development of energy crops. The EU Common Agricultural Policy (CAP) (http://www.tiscali.co.uk/reference/encyclopaedia/hutchinson/m0037992.html) reforms have two goals: an increasing market orientation of the sector, and the reinforcement of structural, environmental, and rural development aspects of sustainable agriculture (European Commission 2002). Aspects that could favor bioenergy, such as the multi-functionality of agriculture, are among the principles driving agricultural policy in the EU today. Although there are no specific non-food policies, a number of measures related to agri-environment and structural measures in particular, provide opportunities for the development of non-food crops. Module 1: Understanding Bioenergy Resources

Module 1: Understanding Bioenergy Resources Conclusions Forest biomass is an attractive renewable energy source. It provides environmental, economic, and energy benefits to society. Challenges and barriers do exist. Market development Collaboration Education Module 1: Understanding Bioenergy Resources

Module 1: Understanding Bioenergy Resources Credits: Photos Slide 10: Chyrel Mayfield, Texas A&M University Slide 12: NASA Slide 13: www.climatechange.ca.gov Slide 14: Chicago Climate Exchange, U. S. Department of Labor Slide 15: EIA Petroleum Supply Annual 2002, Vol. 1 Slide 16: Warren Mabee, University of British Columbia Slide 17: Warren Mabee, University of British Columbia Module 1: Understanding Bioenergy Resources