Applied Biorefinery Sciences, LLC
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- Baldric Cameron Dorsey
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1 , LLC 4736 Onondaga Blvd, #451. Syracuse, NY (315) Experts in: Biorefinery design & engineering Feedstock supply Hot water extraction Chemical separation & recovery Fermentation Using forest resources to create: Carbon-neutral, biodegradable products Lasting, renewable energy alternatives Permanent jobs for sustainable rural communities
2 Feedstock Issues Joel R. Howard, Ph.D. Chief Executive Officer, LLC and Daniel Empie, Consulting Forester Forest Pond Forestry, LLC
3 Feedstock: What is it?
4 Feedstock
5 Feedstock = woody biomass chipped (match book size)
6 wood chip image
7 Feedstock: why important? is the tail that will wag your dog biorefinery planning must START with Feedstock, or you are destined to fail
8 Feedstock issues are: Quantity Reliability Logistics Sustainability
9 Feedstock issue #1: Quantity Reliability Logistics Sustainability
10 Feedstock - Quantity According to Thomas Tip O Neill (House Speaker & Rep. Mass) All politics is local.
11 Feedstock - Quantity According to Joel Howard (CEO, ) The nutshell take-home message here: All wood supply is local.
12 Feedstock Quantity (Chicken/Egg problem) Site selection Facility size This is really an iterative process, back and forth between these two decision points
13 Feedstock Quantity Start this discussion with Site selection
14 Site selection is More than throwing a dart at a map
15 Feedstock Quantity Site selection Forested region is best biorefinery wood usually low value short haul distances more cost effective
16
17 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
18
19 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)?
20 X
21 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
22 Feedstock Quantity Site selection complete? Now, size the facility (dry tons/day) Bigger is NOT better Base facility size on ~75 mile haul radius
23 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
24 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)
25 120 miles?
26 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.
27 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.
28 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
29 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?: legal restrictions financial factors ecological factors ideological factors (human element)
30 Feedstock issue #2: Quantity Reliability Logistics Sustainability
31 Feedstock - Reliability Determined as part of the wood resource study in your sphere: Long-term forest health (? or?)
32 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)
33 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
34 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
35 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
36 Feedstock issue #3: Quantity Reliability Logistics Sustainability
37 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
38 Feedstock - Logistics (Assuming available forest stands) Harvesting network (not assured) Regional road and rail networks quality/speed of travel design terrain condition roads/rails
39 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
40 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
41 Feedstock - Logistics Regional road and rail networks Quality/Speed or travel Federal work standards (limit haul distance) Haul distance ( costs ) Wood prices: Pulpwood prices $3.00/cord $10.00/cord increased at ~4%/yr over last 30 years
42 Feedstock - Logistics Regional road/rail network Quality/Speed or travel Federal work standards (limit haul distance) Haul distance ( costs ) Wood prices 4%/yr since 1978 Fuel rail more efficient than truck since 1978 fuel price 5%/yr
43 Actual diesel fuel prices $0.49 in 1978 ~$2.40 May 2009
44 Actual diesel fuel prices $0.49 in carried forward 31 yrs to $2.40 = 5%/yr increase ~$2.40 May 2009
45 Feedstock - Logistics Regional road/rail network Quality/Speed or travel Federal time limitations Haul distance (economics) Wood prices 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
46 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
47 Feedstock issue #4: Quantity Reliability Logistics Sustainability
48 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
49 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
50 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.
51 Compare these forest stands BC NW-PA BC et al N-NY
52 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 BC et al N-NY
53 Compare these forest stands Biorefineries: use small otherwise unmerchantable wood, and therefore provide the means for improving forests BC NW-PA BC et al N-NY
54 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
55 Summary
56 Feedstock issues are: Quantity Reliability Logistics Sustainability
57 Feedstock issue #1 Quantity f(x) : site selection facility size competition (wood demand) economic climate (prices)
58 Feedstock issue #2 Quantity Reliability f(x) : regional forest health/condition political/social issues economic influences
59 Feedstock issue #3 Quantity Reliability Logistics f(x) : wood availability efficient transportation managing human resources
60 Feedstock issue #4: Quantity Reliability Logistics Sustainability for: wood resources alternative fuels rural communities
61 Two take home messages:
62 #1 - Feedstock is critical to biorefinery success and,
63 #2 - Feedstock issues are: Quantity Reliability Logistics Sustainability
64 Questions?
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