Forest Product Manufacturing in Georgia

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Forest Product Manufacturing and

Sustainability in Georgia

Legislator’s Orientation at GFA

Forsyth, GA

December 3, 2014

Devon Dartnell

Georgia Forestry Commission

1-800-GA-TREES

www.GaTrees.org

2

•Native tropical forests

– Hardwoods

– Many species

– Non-sustainable forestry

•Plantation

– Hardwoods and softwoods

– Few species

– Very intensive forestry

– Sustainable

•Boreal (taiga) and temperate native forest

– Mainly softwood

– Few species

– Extensive forestry

– Sustainable management

Source: McKinsey team analysis, 2005; Cubbage and Siry 2001

Southern US Forests in a Global Context

Title

Direct Impacts

• Output - $16.4 billion

• Jobs – 49,497

• Wages & Salaries - $3.1 billion

Total Impacts

$28.9 billion

135,732 jobs

-

50,000

100,000

150,000

200,000

250,000

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Job

s

US

$ M

illio

n

Output Employment

Economic Impact of Georgia’s Forests

2013 Timber Product Output Survey

Pulpmills, 12

Sawmills, 86

Veneer & Panel Products, 11

Post and Pole, 15

Chipmills, 21

Miscellaneous, 34

179 Primary Wood-Using Mills Operating in Georgia

At least 49 primary mills export now, compared to 45 in 2009 Mills report that 100% of residues are utilized 10 new mills since 2009

Forestry Management, Logging, and Misc. Forest

Products6%

Lumber, Veneer, Plywood, Panels

13%

Pulp and Paper Products

67%

Furniture, Windows, Doors, Machinery, Pre-

fab Buildings14%

Economic Output by Sector

Source: “Economic Benefits of the Forestry Industry in Georgia:”,by Bill Riall, Enterprise Innovation Institute,

Georgia Institute of Technology

Economic Impact Trends by Sector

Source: “Economic Benefits of the Forestry Industry in Georgia:”,by Bill Riall, Enterprise Innovation Institute,

Georgia Institute of TechnologyNote: Output is inflation adjusted to 2010 US dollars

-

5,000

10,000

15,000

20,000

25,000

30,000

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

2004 2005 2006 2007 2008 2009 2010

Em

plo

ym

en

t

Th

ou

san

ds $

Forest Mgt. Output Pulp and Paper Output Lumber & Panels Output

Forest Mgt. Jobs Pulp and Paper Jobs Lumber & Panels Jobs

Forest Resource Use Trends in Georgia

Source: Timber Product Output Reports, Southern Research Station, US Forest Service, 2011

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1995 1997 1999 2001 2003 2005 2007 2009

Tho

usa

nd

Gre

en

To

ns

Softwood

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1997 1999 2001 2003 2005 2007 2009

Tho

usa

nd

Gre

en

To

ns

Hardwood

Other Industrial

Posts, poles and pilings

Fuelwood

Composite panels

Pulpwood

Veneer logs

Saw logs

Annual timber utilization ranges from 40 – 50 million green tons.

0

10

20

30

40

50

60

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

$ p

er

gre

en

to

n

Acr

es

in T

ree

Pla

nti

ng

Tree Planting Pine sawtimber Pine CNS Pine pulpwood

CRP Tree PlantingIncentives

Forest Product Markets Affect Reforestation

8

Timberland Acreage Through Time in Georgia

21.4

25.8

23.6

24.6 24.4

18

19

20

21

22

23

24

25

26

27

28

1936 1953 1961 1972 1982 1989 1997 2004 2009 2010

Mill

ion

Acr

es

Survey Year

Source: US Forest Service FIA Data 2010

Top Ten US States in Total Timberland Acreage

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Acr

es

Private

Public

All ownerships Private ownership

91% of Georgia’s Timberland is private - #1 in the U.S.!

Georgia Timberland Ownership – 24.4 mil ac

Georgia Forest Industry Leads Nation

UGA Forestry

Workshop

Statesboro, GA

April 25, 2012

Nathan McClure

Source: Johnson, et al; The South’s Timber Industry – An Assessment of Timber Product Output, 2009; Southern Research Station, USFS, 2011.

Georgia leads Nation in pulpwood production

AAAAAAAAAAA

0 2 4 6 8 10 12

Oklahoma

Kentucky

Tennessee

Texas

Virginia

Arkansas

Florida

North Carolina

Louisiana

South Carolina

Mississippi

Alabama

Georgia

Cords (million)

Softwood

Hardwood

Sta

te

Pulpwood Production by State and Broad Species, 2011¹

All Forest Types Growth, Removals, Mortality

-250,000,000

250,000,000

750,000,000

1,250,000,000

1,750,000,000

2,250,000,000

1983-1989 1989-1997 1997-2004 2005-2010

Net Growth

Removals

Net Gain/Loss

Cu

bic

Fe

et

Survey Period

Georgia’s forest volume growth is exceeding removals

• 78% more cubic feet of volume than fifty years ago

• Georgia’s Forests Growth exceeds removals by 41%

• Excess growth is 20 million tons / year

Georgia’s Forest Volume Growth

Bioenergy is Renewable Energy

Coal26%

Natural Gas17%

Petroleum37%

Nuclear12%

Hydro 1%

Wood 5%

Fuel Ethanol2%

Other biomass

0%

Solar 0%

Wind0%

Renewable8%

Georgia Total Energy Consumption Profile: 2009

Coal21%

Natural Gas25%

Petroleum 37%

Nuclear9%

Hydro 3%

Geothermal0%

Solar 0%

Wind1%

Biomass4%

Renewable8%

U. S. Total Energy Consumption Profile: 2009

Bioenergy Drivers

2005 - 2014

Energy Security

Economies of Rural America

Environmental Concerns – primarily

by European Countries

Forestry

Dependency Based

on Employment

The Forest Bioenergy Concept

Forests Conversion Facility

Energy Product

•Logging residues

•Forest thinnings

•Timber harvests

•Mill by-products

•Wood Waste

•Wood boilers

•Co-firing

•Gasification

•Fermentation refineries

•Pellet mill

•Heat

•Steam

•Electricity

•Ethanol

•Pellets

Forest Biomass Feedstocks

Logging residues –

integrated harvest system

Logging residues: 2-

pass harvest system

Mill residues

Small diameter

timber – thinnings,

etc.Urban wood

waste

Understory hazard

fuel reduction

Forest Bioenergy Projects in GeorgiaAnnounced and Operating

Appling County Pellets (FRAM)

Georgia Biomass LLC

Biomass-to-Electricity

MultiTrade Rabun Gap

Rollcast – Piedmont

Green Energy

Cellulosic Biofuels

Range Fuels Project bought by LanzaTech

GFC provides forest resource information

to assist companies with facility location

Local Sustainability is the Key

1. Procurement area: < 75 mile radius

2. Use FIA and TPO data – retrieve by county and use combined results

3. Identify specific biomass sources Timber buyers and loggers Mills Land clearing contractors Landowners

4. Explore possibility of supply contracts

Timberland by Forest Type and Age –

75 mi radius of Cordele

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

0-5years

6-10years

11-15years

16-20years

21-25years

26-30years

31-35years

36-40years

41-45years

46-50years

51-55years

Acr

es

Planted pine Natural pine Oak / pine group

Oak / hickory group Bottomland hardwood Nonstocked

Source: Forest Inventory and Analysis program, US Forest Service, 2011 data

Pine Volume Trends by Tree Diameter

75 mi radius of Cordele

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

Cu

bic

Fe

et

Wood Volume in Pines by Diameter Class - 75 mile radius Cordele

2002

2005

2008

2011

Source: Forest Inventory and Analysis program, US Forest Service, 2011 data

Annual Wood Growth and Removals –

75 mi radius of Cordele

-

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

Cu

bic

Fe

et W

oo

d

Growth

Removals

Difference

27% (4.1 mgt)

21% (2.4 mgt)

Source: Forest Inventory and Analysis program, US Forest Service, 2011 data

Documenting Sustainability Through

Forest Certification

American Tree Farm System (1941);

NIPF Landowners

Forest Stewardship Council (1993);

Corporate & NIPF Landowners

Sustainable Forestry Initiative (1995);

Industry Lands and Some Public Lands

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Acr

es

Other forestland

ATFS

SFI

FSC

U.S. South

17% “certified”FSC1%

SFI10%

Tree Farm6%

Other Forests

83%

Opportunities & Challenges – certified forests

Summary

Georgia leads the nation in forest acreage, wood

production, and forest products as a result of

strong infrastructure

Increases in forest wood volume continue with a

slight shift to larger trees

Bioenergy has always been integral to the forest

products industry

Electrical power production and wood pellet

production have recently successfully developed

as a part of our forest products industry

Policy and markets will demand documented

sustainability in the future

Questions

32

Devon DartnellGeorgia Forestry Commissionddartnell@gfc.state.ga.uswww.gatrees.org

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