The Future of Wood Bioenergy in the United States: Defining Sustainability, Status, Trends and Outlooks for Regional Development

The purpose of this volume is to provide the most accurate and up-to-date information available on viable options for wood bioenergy development. These papers examine the policy mechanisms that can help ensure sustainability over the longer term. Topics covered include how best to assess regional supply and availability of woody biomass, how best to pair appropriately scaled technologies with these supplies, and how wood bioenergy is developing differently in various regions of the US. This compilation also explores the current and future policy and regulatory framework and identifies ways to guide wood bioenergy development towards effective achievement of public policy goals for renewable energy, climate change mitigation, and natural resource sustainability.

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Section 1. Introduction. Ensuring Sustainability in the Development of Wood Bioenergy, V. Alaric Sample (Pinchot Institute for Conservation)   [Show Abstract]

• What Role Will Forests Play in America,s Long-Term Energy Future?, V. Alaric Sample (Pinchot Institute for Conservation)

Key topics

• The role of wood bioenergy in national/regional goals for renewable energy development and climate change mitigation Overview of current and new technologies for wood bioenergy production
• Overview of current and new technologies for wood bioenergy production
• Overview of current efforts to develop new technologies and expand existing technologies for wood bioenergy production
• Common information needs for wood bioenergy development and the sustainable utilization of local forest resources
• Sustainability dimensions- economic, social and environmental considerations while considering climate change adaptation and mitigation
• Heat, power and liquid biofuels: Competing options for biomass?

 

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Section 2. Developing realistic assessments of woody biomass supply and availability

Key topics

• Factors affecting supply from wood residues and byproducts from wood products industries
• Wood supply from sustainable forestry operations: distinguishing between inventory and availability
• Ecosystem restoration: effects on near-term and long-term sustainable supply
• Stabilizing wood supply from mixed ownership landscapes
• Potential role of short-rotation woody crops (including GMO)

Papers

• National and regional assessments of woody biomass availability in the US.
  • Summary of the "Billion Ton Study" Revisions, Ken Skog and Marilyn Buford (USFS) FORTHCOMING   [Show Abstract]

    Abstract: Nationwide county level supply curves have been estimated for forest and agricultural biomass in order to help evaluate their potential contributions to producing bioenergy and biofuels. These estimates are a revision to the potential supply estimates in the USDA/ DOE Billion ton biomass supply study. Forest biomass sources include logging residue, thinnings, other removals, unused mill residue, and conventional sourced wood (pulpwood size material). To make the estimates it is assumed that biomass will be supplied in integrated harvesting operations which also remove sawlogs and pulpwood. It is assumed that such removals can be estimated at the county level in two ways. First as a portion of recent estimates of logging residues and second by simulated thinning operations that use tops, branches and small trees for biomass. Supply from thinning dense forest stands is assumed to occur over 30 years as in the original Billion Ton Supply Study. Harvest and stumpage costs are estimated for each of these methods. Final supply estimates for each county assume supply that is half way between the two estimates. Preliminary forest and agricultural biomass supply estimates have been used to indicate that for about $40 per oven dry ton (odt) at roadside or farm gate forest and agricultural feedstocks could produce 16 billion gallons of cellulosic biofuels as called for under the 2007 Energy Independence and Security Act. Forests would provide 40 million odt of biomass per year at about $40 per odt to produce 4 billion of the 16 billion gallons of biofuel.

• State assessments of woody biomass supply.
  • Sustainable Forest Bioenergy: State Strategies and Incentives Overview, Marcia Patton-Mallory (USFS) and Francisco Aguilar (University of Missouri)   [Show Abstract]

    Abstract: The use of woody biomass as an energy feedstock is faced with significant opportunities and challenges. Some of the greatest opportunities are the capacity to generate locally produced energy, generate additional work opportunities for harvesters and loggers, provide more opportunities for commercial thinning, improve the health of forestlands, and create new jobs in the energy industry and achieve climate change mitigation goals. State policy and incentives are frequently used to value the co-benefits and non-market benefits of biomass used for energy, such as reducing hazardous fuels in areas where current infrastructure and markets are inadequate. Policies promoting use of woody biomass that previously had little to no commercial value could have effects on current wood product markets, so understanding and considering these linkages is an important dimension of the sustainability discussion. Additional removal of material from forestland can also result in undesired impacts on the forest resource if accomplished in ways that do not sustain the forest resource. Policy measures create conditions that allow the market to determine the most efficient way to accomplish goals, and use of financial incentives allows a direct measure of impacts on prices. Both types of incentives need periodic review and adjustment as new information becomes available.

  • An Estimation Procedure for Determining Woody Biomass Within Virginia, Bob Smith (Virginia Polytechnic Institute and State University)   [Show Abstract]

    Abstract: This project evaluated the types, quantities, and location of wood residues and other woody materials that could be available for use as bio-energy or other applications in the Commonwealth of Virginia. The residue information was collected through the survey of primary and secondary wood manufacturers, landfills, and loggers in Virginia, and then incorporated into a GIS system so that locations and quantities of various residues were known. By identifying the location and quantities of various woody materials in the most cost efficient manner, this project has the potential to develop new markets and increase jobs in a number of rural areas. From this information, strategies can be developed that will utilize biomass residues. This study provides valuable information toward the expanded use of bio-energy in Virginia.

• Developing supply projections on predominantly public forest landscapes.
  • Catherine Mater (Mater Engineering) and Ed Gee (USFS)
• Developing supply projections on predominantly private forest landscapes.
  • Potential Impact of Bio-Energy Demand in the South, Bob Abt (North Carolina State)   [Show Abstract]

    Abstract: The purpose of this research note is to identify key issues in the use of woody biomass as an energy source in the U.S. South and to investigate the likely consequences of these issues on the resource and the existing wood-based industry. Key characteristics of existing wood demand and potential energy-based demand are explored along with the unique spatial and temporal aspects of forest resource supply. The demand analysis focuses on the potential wood consumption implications of renewable energy policy, recently announced capacity, and the implications of how differences in price sensitivity will affect the current industry. Over the next 5 -10 years the emerging role of conservation, wind, solar, energy crops and other renewable infrastructure are not likely to develop as fast as renewable energy demand. This will favor the use of wood as a feedstock in the first wave of bio-energy production. If the policy driven targets are to be met, logging residuals may play a relatively minor role as a feedstock. Its role may become more important after initial price impacts in the roundwood market. Even the short run changes in harvest quantities from bio-energy projects already announced can significantly impact the supply of "downstream" wood products dependent on larger trees. Given the inelastic (low price responsiveness) of supply and demand in wood markets, price impacts will be larger than harvest impacts. Bio-energy demand is likely to be less sensitive to wood price than existing industry in the short-run. This will lead to a decrease in existing industry capacity as bio-energy capacity increases.

  • Forest Fuel Reduction and Biomass Supply: Perspectives from Southern Private Landowners, Jim Gan (Texas A&M)   [Show Abstract]

    Abstract: Removing excess biomass from fire-hazardous forests can serve dual purposes: enhancing the health and sustainability of forest ecosystems and supplying feedstock for energy production. Considerable efforts have been made to estimate the quantity of this biomass available on the ground, yet availability does not necessarily translate into actual supply. This seems especially evident for non-industrial private forests given the diversity of ownership objectives and the lack of incentives. This study assesses the perception and behavior of private forestland owners in the southern U.S. with respect to thinning overstocked forests for bioenergy production. Landowner perception is then integrated with the USDA Forest Service,s Fuel Treatment Evaluator to estimate the biomass supply from fuel treatments on non-industrial private timberlands in the U.S. South. Due to competing uses for lumber and pulp/paper products, only about one-third of this biomass source could be used as bioenergy feedstock. Between 6% and 66% of landowners would consider thinning overstocked forests for bioenergy purposes depending upon whether financial incentives and technical assistance are provided. Accounting for competing uses, landowner willingness, accessibility, and recovery loss, annual feedstock supply from southern private treatable timberlands is estimated between 1 million and 12 million dry tons. The average production cost is proximately $45/dry ton. Government cost shares, biomass market development, and technical assistance could significantly stimulate private landowners to procure biomass from fire-hazardous forests while mitigating wildfire risk.

• Potential for biomass supply from short-rotation woody crops.
  • Tim Volk and Ed White (SUNY Syracuse) FORTHCOMING
• Genetic improvement of forest plantations for bioenergy applications.
  • Short Rotation Woody Crops for Industrial Applications, Maud Hinchee (ArborGen, LLC)   [Show Abstract]

    Abstract: Purpose-grown trees have the potential to be a significant portion of the bioenergy solution in the Southeastern United States. Trees are a biomass source with existing end-use markets and associated infrastructure and provide a "living inventory" with a variety of benefits over annually harvested energy crops. The economic feasibility of utilizing tree woody biomass is improved by increasing productivity through alternative silvicultural systems and improved genetics. Improved productivity will achieve the ultimate goal of producing large amounts of biomass in a short period of time within a close proximity to the processing facility. Biotechnology can be used to improve productivity by enhancing growth in native species or through genetic improvements that allow highly productive, non-native species to be grown in the United States. Traditional breeding and selection as well as the introduction of genes for improved growth and stress tolerance have been shown to achieve high growth rates and improve site adaptability in Populus species. Several growth genes have achieved growth improvements of 20 to 40% in Populus through a variety of mechanisms. Traditional breeding and biotech gene insertion along with a tissue culture production process called somatic embryogenesis are being used to achieve growth improvements and reduce rotation times in Loblolly Pine. Growth increases that nearly double normal biomass production have been achieved through biotech gene insertion. A highly productive tropical Eucalyptus hybrid, E. grandis x E. urophylla, has also been improved through biotechnology. The introduction of a plant gene that improves freezing tolerance allows for survival at winter temperatures typically experienced in areas of the Southeastern United States while maintaining tree productivity. The yields achieved with Freeze-Tolerant Eucalyptus are predicted to meet or exceed those that have been defined by the DOE and others for the long-term feasibility of renewable energy production and meet delivered cost targets. Alternative management systems including high density plantings and coppice management further improve the economics for this hybrid.

 

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Section 3. Evaluating alternative technologies for wood bioenergy facilities

Key topics

• Liquid biofuels from woody biomass
  • Adaptation of existing wood processing plants for joint production (e.g., pulp/paper mills re-engineered to produce paper and biofuels)
  • Characteristics of stand-alone biofuels facilities
• Electric power production
  • Large centralized wood-fired powerplants and smaller distributed wood-fired powerplants
• Combined heat and power
  • Integrated power generation and wood processing
  • District heating for facilities and communities
• Wood pellet production
  • Production for local and domestic markets
  • Production for industrial export
• Green energy for existing businesses e.g. food processing, breweries, improving carbon footprint of corn ethanol facilities

Papers

• Status of research, development, commercialization of wood-based cellulosic ethanol facilities [literature review].
  • Cellulosic Ethanol Production: Status of Conversion Technologies in the United States, Puneet Dwivedi (University of Florida) and Dr. Janaki R.R. Alavalapati (Virginia Polytechnic Institute and State University)   [Show Abstract]

    Abstract: Rising reliance on foreign energy coupled with increasing greenhouse emissions have compelled policy makers to promote cellulosic feedstock for ethanol production. This study evaluates existing technologies available for converting cellulosic biomass into ethanol. Technical details of existing conversion technologies are discussed followed by their current adoption status. Economics of cellulosic ethanol production using existing conversion technologies and emerging conversion technologies have also been characterized. It is expected that the review will be helpful in allocating resources efficiently for streamlining the whole initiative of cellulosic ethanol production.

• Adaptation of existing pulp & amp; paper facilities to produce advanced biofuels.
  • Repurposing a Kraft Pulp and Paper Mill to the Production of Ethanol, Richard Phillips (North Carolina State University)   [Show Abstract]

    Abstract: Wide commercial production of cellulosic ethanol has been impeded because of both high capital investment, and scarcity of low cost biomass feedstock. Both issues can be mitigated by Repurposing an existing kraft pulp mill to ethanol production, and attractive financial returns can be earned. Under "Reasonable but Optimistic" assumptions, capital cost required to produce ethanol from Forest Biomass can be reduced by 40-50% (compared to Greenfield Dilute Acid Process), and cash costs of $1.60 per gallon can be achieved. We have prepared a rigorous process simulation model of a 6-step ethanol production process that includes: (1) hot water pre-cooking of the wood to extract hemicellulosic material; (2) high yield kraft pulping to reduce lignin content and physically open up the fiber structure; (3) enzymatic hydrolysis of the pulp stream using a cocktail of cellulose enzymes found in our lab to efficiently convert hardwood cellulosic material to simple sugars; (4) fermentation of the streams produced in Steps (1) and (3); (5) distillation of the ethanol produced in Step (4) to 95% (V/V) in water; (6) dehydration of the ethanol solution to 99% + concentration using molecular sieves. A number of cases were simulated and financial pro forma analysis was prepared on each case. The financial outcomes are most significantly impacted by assumptions for ethanol revenues per gallon and less so by fiber cost or cost of hydrolysis enzymes. We conclude that our technical approach has significant financial merit, with only minor compromises for re-using existing mill equipment. Repurposing takes advantage of proven manufacturing equipment and skilled operating personnel in place, and, perhaps most important, takes advantage of existing supply chain of growth, harvesting and delivery of forest biomass, without creating new demand. Further simplification of the process is currently under study, along with opportunities to repurpose the Forest as well as the conversion plant.

  • Bob Byrne (Flambeau River Biofuels) FORTHCOMING
• Factors affecting the establishment of wood-fired electric power plants in the US.
  • Biomass Power for Utility Applications, Tom Johnson (Southern Company)   [Show Abstract]

    Abstract: In the Southeast renewable energy resources for large-scale power generation (i.e., 20 to 100 MW) are limited primarily to biomass. Biomass resources are relatively plentiful in our region compared to other areas of the U.S. due to the high degree of forestation and the large presence of pulp, paper, and wood products industries. However, most of the relatively inexpensive residues from wood processing and harvesting are currently utilized in existing industry boilers and in other wood waste markets. In the future low value and underutilized standing timber may represent a significant new source of biomass fuels. This may help to relieve some of the upward pricing pressures that would be experienced from commercial implementation of several relatively large-scale biomass power plants. Poultry litter could also be used as a resource to produce renewable power, but there are significant issues related to increased contaminant levels. There are two basic methods for generating power from biomass: (1) biomass co-firing in existing power plants and (2) biomass-only utilization in dedicated plants. Biomass co-firing includes co-milling with coal, direct injection through separate burners, and direct injection by a spreader grate. This paper offers an overview of technology options for large scale biomass power plants. Dedicated biomass power plants include currently commercial technologies such as spreader grate boilers, fluidized-bed boilers, and circulating bed boilers coupled to traditional steam power cycles. One of the lowest cost options for biomass involves co-firing in an existing pulverized coal unit. It is a low capital investment approach to biomass combustion. Over the past decade several methods of biomass co-firing using a variety of fuels have been tested and evaluated by Southern Company with some successes. Traditional forms of biomass power plants, such as the spreader grate boiler, are usually not very efficient, but they are fairly reliable, accept a wide variety of fuels, and have a considerable experience base. Their low efficiency and large capital investment make the renewable energy from these plants relatively expensive.

• Factors affecting the enhancement of electrical co-generation in conjunction with pulp and paper manufacturing.
  • Barriers to the expansion of electrical co-generation by the wood products industry in the United States, Irene Kowalczyk (MeadWestvaco)   [Show Abstract]

    Abstract: Cogeneration or combined heat and power (CHP) is energy efficient and environmentally friendly compared to stand alone power plants. The Public Utility Regulatory Act (PURPA) created significant incentives that expanded the use of CHP from 1978 to 1998. Since then, as the reserve capacity to meet peak power demand has decreased, new rules designed, at least on the surface, to increase the grid's reliability have stifled increases in CHP and other distributed power sources. The Federal Energy Regulatory Commission's (FERC) Regional Transmission Organizations (RTO's) and Independent System Operators (ISO"s) created significant regulatory barriers for new CHP installations to gain access to the grid and generate favorable returns despite the development of interconnection standards. The Clean Air Act's New Source Review (NSR) is a significant burden for smaller CHP facilities especially in non attainment areas even though CHP reduces criteria pollutants. And finally the Energy Policy Act of 2005 reversed all of the remaining CHP incentives created by PURPA even to the point that "behind the meter" facilities are less likely to install CHP. And, if policy makers are not careful, CHP with all of its inherent environmental benefits could be discouraged by cap and trade rules as well.

• Evolution of technologies for facility-level CHP, community-scale district heating, and residential heating with wood pellets
  • Stabilizing Energy Costs for Communities Using Local Biomass, Tim Maker (Biomass Energy Resource Center)   [Show Abstract]

    Abstract: With the oil price shocks of the 1970s some institutional building owners in northern tier states began looking for alternatives to oil for heat. The most widely available, low-cost renewable alternative in rural, forested areas was woodchip fuel. In the early 1980s a small number of schools and hospitals in the Upper Midwest, Eastern Canada and New England led the way in installing automated heating plants using this fuel. Now, with oil prices again rising sharply, there is renewed interest in both biomass heating -- woodchip and pellet -- and combined heat and power (CHP) in the institutional, municipal, and public-sector markets. Market demand may well lead to pressure on the current suppliers of wood energy equipment to grow rapidly and to improve the performance of their products. This paper traces the evolution of a technology, much of which was originally imported from Europe, through twenty years of modification and "Americanization" to the current day. There is now interest in going back to Europe to find sources of mature technology: more products, available in greater volume than has been manufactured in the U.S. to date.

  • Developments in the Domestic Wood Pellet Industry, Charles Niebling (New England Wood Pellet)   [Show Abstract]

    Abstract: Wood pellet manufacturing and consumption began in the United States some three decades ago. In the intervening years, the industry has grown steadily, with a recent acceleration in response to rapidly rising fossil energy prices and global energy instability. Today, some 2 million tons per year are manufactured for domestic heating, and for export markets to supply rapid growth in Europe driven by EU carbon and renewable energy policies. Pellet fuel manufacturing is concentrated in northeast, northcentral and Pacific Northwest regions. Some new large capacity plants have come on line in the south primarily to feed export markets. The scale of future plant development will be increasingly influenced by wood supply logistics and freight costs, with freight cost in particular constraining the upper limit of plant design capacity. Rising oil and gas prices in the U.S. are catalyzing technology advances in the use of pellet fuels for high efficiency/low emissions heating, industrial process heat, and combined heat & power technologies. The likelihood of regional or federal carbon emissions regulations will accelerate this trend. However, federal and state energy policy currently provides disproportionate incentives and subsidy investments for use of biomass in electric generation and cellulosic ethanol production, but not in thermal energy technologies -- despite the efficiency advantages of converting biomass into heat. Access to this finite renewable energy resource must be based upon parity in the application of incentives that are not biased in favor of certain technologies, but instead favor policy outcomes such as reduced demand for foreign fossil energy, increased energy efficiency, lower air emissions, and carbon mitigation.

 

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Section 4. Economic considerations in the development of wood bioenergy

Key topics

• The changing economics of wood bioenergy
  • Transportation and the dual effect of oil prices
  • Price response to increasing local wood demand
• Effects of national, state and local policy frameworks
  • Differential incentives for achieving specific policy goals
  • Renewable portfolio standards and climate action plans: state and national
  • Grid connectivity and utility regulatory considerations

Papers

• Factors influencing private capital investment in wood bioenergy development.
  • Renewable Energy Investment Preferences, Francisco Aguilar (University of Missouri)   [Show Abstract]

    Abstract: Federal and State level regulations promote the use of renewable energy feedstocks through financial incentives and mandatory standards. However, private sector investments must accompany public efforts to support an emerging woody bioenergy industry. Preferences for renewable energy investments among individuals in the United States are studied giving particular emphasis to wood bioenergy investments. Results suggest that the most important factors determining investment preferences are return on investments and their geographic location, particularly favoring energy investments within the United States. Specific to wood biomass energy, positive perceptions about forest management are fundamental to a favorable view towards wood bioenergy investments. Private investments are contingent on the capacity to demonstrate that wood energy is financially competitive to other comparable investment options, such as the stock market and other renewable energies, and the belief that harvesting of woody biomass can result in healthy forest management.

• Economics of forest biomass recovery.
  
  • Economics and Logistics of Biomass Utilization: The Superior National Forest, Dalia Abbas (University of Minnesota) and Don Arnosti (Institute for Agricultural and Trade Policy)   [Show Abstract]

    Abstract: Forest fires pose a great risk to nearby communities and dwellings. Many forest managers work to reduce such risks by managing fuels. Efforts are underway to understand the economics and the logistics required to extract harvested forest biomass for utilization instead of the conventional disposal method of piling and burning on-site. Benefits from biomass utilization are multiple and include reduced impacts to air quality, improved forest health, economic opportunities, local renewable energy production and climate change mitigation. Trials in the Superior National Forest examined the feasibility of using conventional equipment to extract and utilize forest biomass compared with disposal of biomass with pile and burn techniques. Factors that increase the costs of biomass utilization include: machinery down-time, distance to end users, low biomass price, size of the harvest unit, forwarding distance, the number of machines hauled to sites to complete small sized operations, the modest amount of biomass removed per acre and applying prescriptions that were not designed for extraction logistics. Interviews with forest machine operators during and after the trials helped clarify factors and logistical considerations which could be applied to help reduce the cost of future operations.

  • Economics of forest biomass removal for bioenergy, Alexander Evans (Forest Guild)   [Show Abstract]

    Abstract: Interest in removing low-grade wood from forests has increased because of rising fossil fuel costs, concerns about carbon emissions from fossil fuels, and the risk of catastrophic wildfires. For example, there were at least 65 major new wood-to-energy projects in 2008, with many more in the planning stages (RISI Inc. 2008). Most existing forest practice rules and recommendations did not anticipate this increased extraction of woody biomass and offer no specific guidance on how much removal is healthy for ecosystems. This report reviews a new set of guidelines developed to address increased use of woody biomass from forests. The following sections explore definitions of woody biomass and the motivations for establishing guidelines for the harvest of woody biomass. The report assesses existing guidelines and provides recommendations for future forestry guidelines focused on woody biomass removal.

• Effect of oil prices on the economics of wood bioenergy.
  • Effects of Oil Price on Wood Bioenergy, Nina Eichacker (University of Massachusetts)   [Show Abstract]

    Abstract: This paper reviews existing literature about biomass as an alternative energy resource. It lists important negative and positive externalities related to harvesting biomass, examines the history of the use of biomass as an energy source in the United States, and presents the findings of different empirical studies related to the implementation and feasibility of harvesting biomass. Based on the findings, I conclude that any policy intended to promote the usage of biomass as alternate resource will be a good way to promote more sustainable energy usage and create jobs as long as there is significant cooperation between government agencies, private firms, and local communities.

• Bioenergy expansion effects on existing wood products industries: competitor or partner?
  • Effects of Renewable Energy Mandates on the Sustainability of Forests in the Southeastern U.S., Greg Comatas and Jeff Shumaker (International Paper)   [Show Abstract]

    Abstract: The potential for renewable energy production in the Southeastern United States rests heavily on its forest biomass. The Southeastern Forest represents 29% of the total forest acres in the U.S., and this complex biological system provides sustainable, cost competitive supply for 60% of our nation's traditional timber product output. Poorly crafted mandates or economic incentives for renewable energy can cause severe harm to this biological and economic system, creating conflict between the forest products industry and renewable energy producers that may endanger the long term sustainability of Southeastern forests. The existing federal Renewable Fuel Standard and proposed Renewable Portfolio Standard can drive demands for biomass to unsustainable levels, compromising biological processes and the values that society obtains from the Southeastern Forest. This paper shows that renewable energy mandates, if not materially offset by other, more weakly positioned renewable resources in the Southeast, could lead to a substantial increase in regional biomass demand. This increase could change the character of the forest, compromise forest values and reduce the quantity of fiber available for use in forest products.

• Wood bioenergy development as a component in regional/state/community strategies for sustainable economic development.
  • Wood bioenergy development as a component in community strategies for sustainable economic development, Mike DeBonis (Forest Guild)   [Show Abstract]

    Abstract: Wood bioenergy plays a significant role in national and local efforts to develop renewable energy sources to improve energy security, combat global climate change, and reduce the risk of wildfires. Wood bioenergy also holds tremendous promise as an economic development tool for rural, forest-based communities. Appropriately-scaled biomass facilities developed through a collaborative process can support community social and economic goals while improving forest health. The development of policies and incentives has been instrumental in providing the regulatory and financial support needed to move bioenergy projects forward. Yet, most of the existing incentives to develop renewable energy are weighted heavily towards large-scale electricity and bio-fuels facilities, and often exclude thermal and community-scaled biomass applications.

• Wood bioenergy effects on stabilizing energy costs for local communities.
  • Stabilizing Energy Costs for Communities Using Local Biomass: Economics of Community-Scale Wood Heating and CHP, Tim Maker and Adam Sherman (Biomass Energy Resource Center)   [Show Abstract]

    Abstract: Municipalities and communities are negatively impacted not only by high fossil fuel costs, but also by volatility in fuel pricing -- particularly for heating oil. When prices rise sharply and unpredictably, budget impacts can be difficult to manage. There is a growing body of experience, accumulated over the last twenty years, indicating that use of local biomass -- principally woodchips -- delivers significant, reliable cost savings with little fuel price volatility. Communities in rural forested areas are beginning to think about new models for community energy based on the large-scale replacement of fossil fuels with local renewable fuels provided on a sustainable basis. There is a growing interest and demand for woodchip and pellet fuel systems to be used in municipal, institutional and commercial buildings, and in downtown district energy systems. While the economics of heating single buildings with biomass fuels are well understood, that is not true of district energy systems or the community-wide economic impact of replacing fossil fuels with local biomass fuels in many individual buildings. This paper discusses both the micro and macro scales of economic impact from substituting local biomass fuel for fossil fuels in heating and medium-scale CHP applications.

  • Creating a biomass utilization business for managed forest owners, Steve Mueller (International Woodfuels) FORTHCOMING   [Show Abstract]

    Abstract: Pellet manufacturing in the US is at a unique market development crossroads at the end of 2008, with more than 66 plants in operation and another 20+ in construction, almost 100% of which are dedicated to provide home-heating fuel supply. With an unprecedented increase in home heating costs during the winter of 2007/08, homeowners sought to 'solve' for the three-fold increases in heating costs by purchasing pellet stoves to a point where, by mid-spring of 2008, such appliances were simply not available for delivery in the fall of 2008. The capital to build new pellet production (currently estimated to be 30+ percent below installed appliance demand) is largely unavailable given the extraordinary financial market conditions. As such, this paper evaluates the dynamic economic conditions that will impact the wood fiber supply markets for new pellet fuel energy demand over the next 3-4 years.

 

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Section 5. Environmental considerations in the development of wood bioenergy

Key topics

• Principles for ensuring environmental sustainability in woody biomass production
• Ecological considerations relating to silviculture, tree retention and leaving adequate coarse woody materials
• Ecological considerations relating to land conversion
• Practices for intensively managed forest plantations and short-rotation woody crops
• Addressing community-level environmental considerations
  • Local facility considerations (air quality, water quality, water supply)
  • Sustainable community economic development considerations
• Improving the economics of sustainable forest management
  • Creating value for private forests
  • Bioenergy effects on forest land conservation and sustainable management
  • Financing ecosystem restoration on public forests
• Life cycle analysis of wood bioenergy and biofuels systems

Papers

• Ecological sustainability concerns in woody biomass harvesting.
  • Considerations for a Sustainable Wood Biomass Industry, Will McDow (EDF)
• Factoring woody biomass management into state BMPs/forest practices regulation.
  • Overview of state initiatives to develop woody biomass harvesting guidelines, Alexander Evans (Forest Guild)
  • Developing Woody Biomass Harvesting Guidelines for Wisconsin's Forestland, Darrell Zastrow (Wisconsin DNR)   [Show Abstract]

    Abstract: Higher energy prices and incentives to produce renewable energy have increased nationwide interest in bio-fuels, and demand for sources of biomass. The potential expansion of a wood-based bio-energy industry could benefit Wisconsin's economy by creating additional markets for forest products, creating jobs and reducing reliance on fossil fuels. However, concerns have been raised about sustainability and the environmental impacts of increased removal of woody biomass from Wisconsin's forests. Harvest of woody biomass for energy is not currently widespread in Wisconsin, but several bio-energy projects are developing which could quickly increase demand for the State's wood based resources. In response, the Wisconsin Council on Forestry sponsored the development of biomass harvesting guidelines designed to ensure that woody biomass is a sustainable forest product and that increased extraction does not compromise the long-term productivity of Wisconsin's forestland. Wisconsin's Forestland Woody Biomass Harvesting Guidelines provide recommendations and considerations applicable to stand and site-level management, and were designed to limit the impacts of increased harvesting of woody biomass on: a) biodiversity conservation, b) soil nutrient depletion, c) physical properties of soil, and d) water quality.

  • Environmental Effects of Forest Biomass Removal, Joe Misek (Oregon Department of Forestry)   [ Show Abstract ]

    Abstract: Concerned about the health of Oregon's forestlands, increasingly large and frequent wildfires, and associated expenditures and impacts, the 2005 Oregon Legislature directed the Oregon Department of Forestry along with other agencies to work to improve forest health by looking at market strategies that increased the utilization of woody biomass in a sustainable manner. The Legislature also asked the State Forester to develop a report every 3 years that would articulate scientific understandings of the environmental effects woody biomass utilization has on plant, wildlife, soil, water, and air resources. This first report produces findings and State Forester recommendations. The potential environmental outcomes of woody biomass removal are complex and inter-related. Effects may be positive, negative or a mix of both. Very few studies identified in this report address the effects of forest biomass removal specifically. Most information came from research on the effects of thinning and fuel reduction treatments. We look forward to adding to this report over time.

• Guidelines for socially acceptable use of forest biotechnology in woody biomass plantations.
  • Responsible Use of Biotechnology, Adam Costanza (Institute for Forest Biotechnology)   [Show Abstract]

    Abstract: Biotechnology is being used as a tool to grow trees with special characteristics. When used responsibly, society and the environment can benefit from advanced tree breeding technologies. The next few years will be a time of rapid expansion for biotech trees throughout the world in an attempt to meet global demand for forest products and to protect future forests against increasing demand. The world will benefit from a mechanism to determine which uses of this technology will bring benefit and other advantages. The Institute of Biotechnology, along with a broad set of stakeholders from around the world, is developing principles for the Responsible Use of biotech trees. Through a highly transparent and open process we can enhance the benefits of these trees while minimizing criticism.

• Consideration of sustainable woody biomass management forest certification programs.
  • Forest fuel harvesting: a review of environmental risks, criteria and indicators and certification standards for environmental sustainability, Brenna Lattimore and Tat Smith (University of Toronto)   [Show Abstract]

    Abstract: Biomass from sustainably managed forests can contribute to the energy profile of the United States by providing a homegrown and renewable energy source that off-sets fossil fuel use, reducing overall carbon emissions. Forest bioenergy feedstock production and harvesting systems range from small-scale fuelwood gathering to large-scale industrial plantations and removals of virtually all above-and-below ground biomass from intensively managed forests. Across this wide range of options for production and extraction, there is an equally wide range of potential impacts. It is critical that forest biomass procurement systems do not adversely impact forests or the environment; therefore, effective standards and planning tools, based on the best available scientific knowledge, must be in place to prevent these impacts and hence ensure a sustainable industry. Sustainable forest management (SFM) certification schemes are one mechanism for applying measurable environmental standards (in the form of criteria and indicators, or C&I) to forest management systems. We will examine how existing SFM certification schemes and frameworks, such as C&I and Adaptive Forest Management, can be used to help guide sustainable biomass operations. We first present a basic introduction to the potential impacts of biomass production and harvesting on soil and water resources, site productivity, and biodiversity in the forest, as well as issues related to greenhouse gas balances and global and supply-chain impacts. We then propose a number of principles and example criteria for sustainable biomass production that would address these potential impacts (from a complete set by Lattimore et al. 2009). Finally, we will briefly introduce current SFM certification standards and discuss how these might be adjusted for forest fuel production and harvesting, using an Adaptive Forest Management framework, to help ensure the sustainability of the emerging forest bioenergy sector.

  • Sustainability indicators for woody biomass harvesting, Pankaj Lal (Virginia Polytechnic and State University)   [Show Abstract]

    Abstract: Bioenergy production has significantly increased in the last decade and the President,s call to substitute one-fifth of gasoline consumption in the next decade is expected to further this surge. This surge includes unleashing cellulosic ethanol produced from wood and plant residues. However, concerns are being raised on whether or not cellulosic ethanol production and conversion is economically viable, socio-culturally tenable, and ecologically sustainable. In order to avoid potential pitfalls and ensure the sustainability of wood based biofuel systems a set of indicators needs to be developed. Some of these indicators can be based on similar standards on forestry certification, energy balances, greenhouse gas emission reductions and codes and guidelines for biomass harvesting. This paper discusses sustainability indicators encompassing ecological, economic, and social principle for harvesting woody biomass that is used to produce bioenergy. A suite of approaches for implementation of a woody biomass certification system and the extent to which existing standards and certification systems reflect these indicators is elaborated. A way forward to promote these operational strategies is also suggested.

• Maintaining climate mitigation benefits and addressing air quality concerns.
  • Sustainable Development of Biofuel Potentials from Forest Biomass Resources: A Framework to Examine the Long-term GHG balances and Sustainability Impacts, Peter Tittmann and Sonia Yeh (University of California) FORTHCOMING

 

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Section 6. Regional outlooks for sustainable wood bioenergy development Papers

• Outlook for the South, David Wear (USFS) FORTHCOMING
• Outlook for the Lake States, Dennis Becker (University of Minnesota)   [Show Abstract]

  Abstract: The Lake States region of Minnesota, Wisconsin and Michigan offers significant potential for forest bioenergy and biofuels production. Nearly seven million dry tons of additional biomass from public and private lands could be utilized beyond what is currently used for pulp and paper production, engineered wood products, and various bioenergy applications. This paper examines the sustainability of regional biomass use in the context of an existing forest products industry, projected resource needs over the next decade, and impacts on price and feasibility. The region is distinct for its renewable energy and biofuels standards, use of biomass harvest guidelines, and the magnitude of third-party forest certification. The cumulative effect of these initiatives on resource competition and active forest management are discussed in the context of an emerging Lake States bioeconomy.

• Outlook for the Northeast, Ian MacFarlane (Northeast Area Assoc of State Foresters) FORTHCOMING
• Outlook for the interior West, Jay Jensen (Western Forestry Leadership Council)   [Show Abstract]

  Abstract: This paper explores perspectives from around the intermountain west as it relates to advancing sustainable woody bioenergy. It will attempt to paint a 5-10 year forward looking picture for the region. There are a unique set of variables at play in this region of the country with the predominance of federal land ownership being the most salient and overriding factor, as much of the woody biomass supply is found on or near federal lands. This federal land overlay creates an interesting political dynamic which complicates and sharpens decisions around woody biomass development, or any development for that matter. And as new, evolving challenges appear on the horizon, such as climate change, the prospects for sustainable woody bioenergy in the intermountain west over the next 5-10 years will be a delicate agreement between communities, industry, stakeholders and government.

• Outlook for the Pacific Coast, Catherine Mater (Mater Engineering) FORTHCOMING
• Outlook for Alaska, Marcia Patton-Mallory (USFS)   [Show Abstract]

  Abstract: Alaskan communities, particularly in rural areas of the State, are facing difficult social, economic and environmental choices as a result of rising energy costs. However, the high cost of energy is aligned with interest in developing opportunities for appropriately scaled forest products industries and markets to meet the economic development and sustainability interests of Alaskan communities. In Alaska, as in other regions of the country, the viability of biomass utilization and bioenergy are contingent upon the existence of a primary forest products industry, equipment, a trained workforce, road access, and public support. Although in some communities a firewood/cordwood business and energy system could be established in the absence of a forest products industry. The Alaska Wood Energy Development Task Group, Renewable Energy Alaska Project, and the Alaska Villages Initiative are examples of collaborative efforts seeking opportunities to support and utilize wood energy while responding to forest management needs related to thinning, insect outbreaks, and community wildfire protection.

 

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Section 7. Policy implications

Key topics

• Start-up incentives: reducing risk for initiating private investment without creating long-term economic dependencies or distorting market development
  • What are the public goals to be achieved
  • Designing the structure and duration of incentives to facilitate private capital investment and efficient functioning of economic markets
  • Public policy targets: renewable portfolio standards (power production), renewable fuel standards, Low Carbon Fuel and Energy Standards
  • Incentives: Renewable fuel production tax credits; carbon registries and differentiation of GHG emissions from low-carbon/renewable sources; earning and utilization of renewable energy credits
• Public, private, and partnership roles in addressing continuing research needs
  • Optimizing the scale and distribution of facilities from the standpoint of forest sustainability
  • Incorporating bioenergy production into existing wood processing industry

Papers

• Near-term policy priorities and goals: Perspectives from forest industry, energy industry, state government, forest landowners, conservation organizations, forest-based communities.
  • National Policy and Incentive Survey and Overview: Forest-Derived Woody Biomass, Jesse Caputo (Environment and Energy Study Institute)   [Show Abstract]

    Abstract: Woody biomass is a renewable resource with a lot of potential as a low-carbon substitute for fossil fuels in the production of energy and bio-based products. Expanded use of woody biomass from forests can help fight climate change, increase energy security, bolster rural economies, and complement forest management for a number of goals and objectives. The ability of woody biomass to help achieve these goals, however, depends on the extent to which increased utilization is economically viable, as well as the extent to which that use will complement sustainable forestry objectives. Thus far, federal incentives have largely focused on the production of renewable transportation fuels and co-products. Input from stakeholders indicates that future policies should focus on improving forest sustainability, increasing research capabilities, and improving the economics of biomass utilization. Additionally, the production of heat and power should be given equal attention to the production of liquid transportation fuels as an important and highly efficient use for woody biomass.

• Sustainable expansion of wood bioenergy: reconciling the goals of the 2007 Energy Policy Act and the 2008 Farm Bill.
  • Stakeholder Views on the Definition, Opportunities and Challenges of Woody Biomass as an Energy Feedstock, Francisco Aguilar (University of Missouri)   [Show Abstract]

    Abstract: A survey of public and private forest sector stakeholders explored perceptions on items that should be included in a definition of woody biomass and prospects for different renewable energy platforms. The study also elicited opportunities and challenges of woody biomass to become a sustainable energy feedstock. Of all wood-to-energy platforms combustion was rated with the highest potential, followed by cellulosic ethanol, gasification and pyrolysis. The capacity to generate energy locally and to create additional work opportunities for harvesters and loggers were classified as prime opportunities. A major barrier to the use of wood as an energy feedstock is the costs of harvesting and transporting biomass material to an energy facility. Prospects for additional income to landholders are dim and can limit the supply of woody biomass.

 

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Section 8. Summary and synthesis

• What Role Will Forests Play in America's Long-Term Energy Future?, V. Alaric Sample (Pinchot Institute for Conservation)