1. Dr. Dominik Roser Whitehorse Yukon, March 16 th, 2016 Biomass supply chains

2. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. FPInnovations in Brief Largest forest related research institute in the world ▫Over 500 employees ▫Facilities across Canada Major innovation programs in ▫Resource Assessment ▫Forest Operations ▫Wood Products ▫Pulp, Paper and BioProducts

3. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Background 3

4. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Challenges across Canada ▫High biomass costs when the recovery is direct from the forest ▫Low cost of competing energy prices ▫Integration with primary products to lower costs ▫Transportation distances ▫Availability of suitable & proven harvesting technologies for biomass 4

5. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Feedstock characteristics  Moisture  White wood / bark content  Species  Particle size distribution  Contamination (sand, grit)  Ash content Increased specifications increase cost!

6. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations.  Large boilers can handle a variety of biomass feedstock and moisture content  Small boilers are more sensitive to feedstock quality Feedstock characteristics Boiler size Quality requirements

7. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Institutional boilers  Moisture content of 35 % or less  Uniform chips size (3 mm > 90 % < 100 mm)  Uniform species mix (uniform wood density) Quality issues 7

8. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. The holistic planning process 8

9. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Knowing your resource 9

10. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Hog fuel 10

11. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Common forest biomass sources 11 Harvest residues Low quality roundwood Under-utilized standing trees Burnt & Insect killed Harvest residues Plantations

12. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Potential biomass sources 12 Early thinning Non-commercial stands Purpose grown crops Source: New Energy Farms, Arundo Donax FireSmart treatments

13. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Fibre availability assessment  Tenure is one of the biggest issues in relation to availability ▫Who owns what?  Realistic assessment of fibre volumes is essential ▫How much is out there? ▫What is accessible and sustainable? ▫What type of biomass and it’s location? ▫How much does it cost?  Define parameters that are unique to each site ▫Public or Private forests? ▫Harvesting system used? ▫Local competition or integration potential? ▫Infrastructure? ▫Feasibility for export market? 13

14. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Feasibility of biomass energy in communities  Estimate the heat and electrical power consumption;  Evaluate the feasibility of small- scale combustion technologies (cordwood/chip boilers, modular CHP units)  Evaluate the forest biomass requirements for each technology;  Assess the local availability, supply chains, and cost of forest biomass. 14

15. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Slide 15 FPInterface  System selection  Cost estimation  Biomass flow management  Carbon ratio

16. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Fibre availability Anahim Lake Hanceville Williams Lake Horsefly Williams Lake 10 year supply

17. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Biomass supply chains 17

18. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. BIOMASS LOGISTICS 18 The basic challenge: Transporting a low-value, low bulk-density material with a high moisture content over a long distance Importance of maximizing payload through comminution and compaction Photo Credit: Holman - John Deere (FERIC Winning Solutions 2006)

19. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Individual homes with firewood

20. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Pellet heating 20 Source: www.unendlich-viel-energie.de

21. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Pellet heating 21 Source: David Dubois

22. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Stroke Delimber / Processor Full-tree system (FT) Delimber-debarker-chipper (DDC) Full-tree system (FT) Cut-to-length systems (CTL) - harvesters - Traditional biomass supply chains

23. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Supply chain costs Residues from roadside stroke-delimber Pre-pilingComminution Transport: - 120 km one-way, live-floor chip van Other: - roads, supervision, overhead, maintenance, compliance, stumpage

24. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Supply chains for community project Challenges of small(er) scale supply chains Quality of chips Moisture content Particle size distribution Supply flow and storage management 24

25. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. The Matapedia experience  Gathering and positioning the residues  Forwarding to roadside  Seasoning at roadside for 2 years  Comminuting residues with a chipper  Delivery to a storage area 25

26. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Costs - cut-to-length operations Pre-piling Comminution Transport (40 km) Other: - roads, supervision, overhead, maintenance, compliance, stumpage y Forwarding

27. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Biomass harvesting in commercial thinning operations 27

28. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. burned site rehabilitation Biomass harvesting in a burned site rehabilitation 28

29. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Biomass harvest in Firesmart treatments

30. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. How does Europe do it? 30

31. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Heating plants based on wood chips in Finland Source: METLA & VTT

32. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Intensive Forest Mgmt in Finland  Main tree species ▫Pine (Pinus sylvestris) ▫Spruce (Picea abies) ▫Birch (Betula pubescens/pendula)  Rotation period 80-120 years  Forest mgmt ▫Pre-commercial thinning ▫1-3 thinnings ▫Final felling ▫Soil preparation/Planting  Forest Ownership: ▫Public 29 %, Company 16 %, PNIF 55 %

33. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Vitality in the local economy  Use of local renewable energy sources  Markets for low-quality wood: income instead of ”cleaning” costs  Thinnings - better silviculture and more valuable forests!  Improved fire resistance  New products and new customers for harvesting companies  New products and services for the forest industry  More dollars in the local economy – money circles in the region 33

34. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. 34 Finland BC

35. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. ”Harvesting” of logging residue

36. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Forwarding of logging residue

37. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Roadside chipping – large scale

38. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Thinnings play a key role to meet the demand 50-60m 3 /ha 20-30m 3 /ha

39. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Manual thinning

40. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Forest Knowledge Expertise Welfare 40

41. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Roadside chipping

42. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Integration of operations

43. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Integration of operations

44. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Supply chain considerations 44

45. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Business process mapping Forest owner Forestry center Chairman Accounting office Chipping and transportation contractor Forest service company Cooperative Logging contractor

46. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Poper storage saves dollars

47. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Storage and drying trials in Quebec 47

48. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Storage and drying trials in NS 48

49. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Improving efficiency of biomass supply  Store the logging residues in a “ready to load” fashion  Air-dry the residues in the field  Tarping  Chip residues only when needed  Covered storage  Minimize biomass handling  implement Quality Control 49 Biomass storage Be the first to dry your biomass to 10% Biomass Storage

50. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Chipper basics  Drum chippers ▫Brush ▫More fines  Disc chippers ▫Uniform feedstock  Knife wear ▫Fuel quality ▫Disposable knives  Hand fed vs. crane fed 50

51. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Choosing the right chipper is important 51 vs.

52. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Choosing the right chipper is important 52 Photo credit: Heizohack Photo credit: Vermeer Photo credit: Heizohack

53. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Typical European chippers 53

54. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Chipping in Quebec 54

55. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Transport

56. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Transport energy not water 55%35% Transport cost 9.50 $/MWh5.50 $/MWh 15 $/green tonne 4 $/MWh for transporting water Little incentive to improve practices with payment on a green tonne basis Suppliers must be compensated for delivering clean, dry biomass

57. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Training & Education  Difference between a good & bad operator in the study above was 11m 3 /h 57 Purfuerst & Erler 2011

58. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Recipe for success  Holistic planning  Integrate  Selection and adaptation of existing technology  Proven technology, avoid to sophisticated and unproven technologies  Manage moisture & contaminants ▫Minimize handling  Machines must have full loads & be efficient  Avoid too complex supply chains (many steps)  Supply chains are usually more complex than anticipated  Invest in R&D 58 Supply chains Be the first to establish a network

59. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. FPI support for communities  Training & Education  Biomass availability studies  3 rd party technology evaluations  Feasibility analysis of different technologies  Technical advice & implementation support  Supply chain design  Improving biomass quality  Technology transfer 59

60. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Biomass sampling Review and implementation of biomass sampling standards at the operational level  Biomass sampling procedures for hog fuel:  Sampling frequency  Sample size  Minimum Sample Increments  Sampling tools and techniques  Biomass sample separation and analysis 60 New publication

61. Forest Knowledge Expertise Welfare 61 Biomass Roadmap 61 Improve Policy Framework Invest in Education & Training Develop Technology & Supply Build strong Clusters Sustainable Community Energy

62. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. BC First Nations Forest Sector Technical Support Program Providing on-site assistance to develop and improve FN business opportunities and practices Capacity building Projects with several Bands to improve operational efficiencies in harvesting, transportation and wood products manufacturing

63. © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Nobody is perfect! 63

64. www.fpinnovations.ca Follow us on © 2015 FPInnovations. All rights reserved. Copying and redistribution prohibited. ® FPInnovations, its marks and logos are trademarks of FPInnovations. Dr. Dominik Roser Research Manager Phone: 604-222-5624 Cell: 607-837-6935 Email: dominik.roser@fpinnovations.ca