Bioenergy: Lighting a Fire in Ontario BioHeat FINAL… · Bioenergy: Lighting a Fire in Ontario ... promote transformation and stimulate demand ... Wood Heating Systems

Ministry of Natural Resources and Forestry

Forest Economics Section

Bioenergy:

Lighting a Fire

in Ontario

Megan Smith

Program Specialist – Forest Bioeconomy

Ministry of Natural Resources

and Forestry

November 4, 2014

H. Neufbrand, MNRF



Forest Industry Division

Vision:

• Dynamic industry, thriving communities,

sustainable forests

Mission:

• We promote and support a prosperous

forest industry while ensuring fair value for

the people on Ontario

Role:

• Develop a competitive business environment, facilitate

investment, promote transformation and stimulate demand

for Ontario’s forest products



Forest Bioeconomy Strategic Framework

Vision: Ontario is home to a competitive, sustainable, and dynamic bioeconomy

that takes full advantage of forest resources.

Goal: MNRF enables industry and communities in becoming leaders in developing products that

support the forest bioeconomy through industry process integration, collaboration and innovation.

Develop and

implement policies

that support the

diversification of

Ontario’s forest

bioeconomy.

Enhance

collaboration,

knowledge transfer

and information

sharing to promote

the forest

bioeconomy.

Enhance access to

biofibre and create

opportunities for

community/

Aboriginal

development.

Attract high value

investors and retain/

increase skilled

workforce in the

forest bioeconomy.

Maximize value from

forest-based

feedstocks and

by-product streams.

Research & Innovation: Stimulate innovation and commercialization through

research and collaboration.

Investment & Market Development: Drive industry transformation and new investment to

stimulate market demand for forest bioproducts.

Outreach: Provide the necessary tools to make informed decisions

regarding participation in bioeconomy supply chains.

Enabling Policy: Develop policies, programs and incentives to support

sustainable, bioproduct innovation and investment.

Coordination

Guiding Principles:

Alignment of initiatives and activities to provincial priorities.

Land and resource management practices support environmental, social and economic sustainability.

Ac

tio

n A

reas

Ob

jecti

ves



Ontario’s Forest Industry

Annual Utilization of Crown Resources:

0

5

10

15

20

25

30

35

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Vo

lum

e (

Mill

ions -

Cu

bic

Me

tre

s/Y

ear)

Scaling Year

Actual Unmerchantable Harvest

Actual Merchantable Harvest

Available Volume



Transforming Ontario’s Forest Products Sector

Develop a ‘new’ forest bioeconomy: • Economic activity based on the manufacture and use

of next generation products including energy in whole

or in part from bio-based resources on a sustainable

basis that spans the innovation continuum from basic

research to commercialization; and the supply chain

from feedstock to product.

maximize value of forest resources by utilizing all

forest residues and by-products of primary processes

integrate new products within the existing forest

products industry to maximize jobs and financial

returns

promote linkage, partnership and coordination

across the bioproduct value chain

S. MacPherson, MNRF

M. Smith, BIC

M. Smith, BIC



Forest Sector Revitalization

Goals: Examples of Initiatives:

• Expand green energy

production

• Produce value-added products

• Develop new export markets

• Attract foreign investment

• Promote Aboriginal economic

development

• Forest Bioeconomy Team (2008)

• Forest Biofibre Directive (2008)

• Centre for Research and Innovation in the Bioeconomy

(CRIBE) (2008)

• Provincial Wood Supply Competitive Process (2009)

• Forest Tenure and Pricing Review (2009)

• Ontario Forest Modernization Act (2011)

• Ontario Wood Brand (2011)

• Establishment of Ontario’s first Local Forest

Management Corporation (2012)

• Ontario Available Wood Report (2013)

• Economic Analysis of Public Policies Supporting the

Forest-Based Bioproduct Sector in Ontario and Other

Jurisdictions (2011)

• Exploring Small Scale Biomass Fired Organic Rankine

Cycle Technology as a Northern Ontario Energy Solution

(2013)

• Supporting Biomass Heat Project (2013)

J. Campbell, MNRF



Forest Biofibre Directive

Forest Biofibre – Allocation and Use:

• Provides general direction for the

allocation and use of forest biofibre

beyond traditional uses.

Goals:

• Create and support new opportunities

to diversify Ontario’s economy

• Encourage the use of forest biofibre to

reduce Ontario’s dependence on fossil

fuels

Source: FPAC



Forest Biofibre

• Forest resources from Crown forests that are

not normally being utilized for conventional

forest products and that are made available

under an approved forest management plan

Includes:

• tree tops, cull trees or portions of trees;

• individual and stands of unmerchantable and

unmarketable trees; and

• trees that may be salvaged as a result of a

natural disturbance.

M. Smith, MNRF

J. Maure, MNRF

J. Maure, MNRF



Forest Biofibre Directive

Pricing:

• Incentive to develop and support existing industry

• New category added to Ontario Crown Timber Charges

Minimum Charge $0.00/m3

Residual Value $0.00/m3

Forestry Futures $0.00/m3

Forest Renewal $0.00/m3

Total $0.00/m3

Undersized

Tops & Branches

Scaling Manual Standards

Unused Roundwood

Minimum Charge $0.00/m3

Residual Value $0.00/m3

Forestry Futures $1.08/m3

Forest Renewal $0.25/m3 minimum*

Total $1.33/m3 minimum

Unmarketable Fibre Unmerchantable Fibre

Bioproduct: Production of chemicals & materials, energy from the combustion

of wood or biogas, liquid fuels, and solid fuels for commercial or industrial uses



Provincial Wood Supply Competition

• Attract new investment in the forest sector, and support new

and innovative ventures

• Identify companies and allocate previously unutilized Crown

wood volumes

• Single largest wood supply competition

in Ontario

• 33 projects representing 3.7 million m3

• Unallocated fibre represented in

Ontario Available Wood Reports

Bioenergy 28%

Lumber 31%

Panel Products 3%

Pellets 23%

Pulp & Paper 13%

Value-added 2%



Ontario Available Wood Report

• Available from: https://www.ontario.ca/environment-

and-energy/available-wood-supply-report-

management-unit-summary



Ontario Available Wood Report



Ontario’s Green Economy

Ontario’s Green Policies:

• Green Energy Act

• Feed-in Tariff Program

• Cessation of coal-fired

electricity at Ontario’s power

plants

Ontario’s Bioenergy Sector:

• Evolving, but no provincial strategy

• Needs developmental support

• MNRF’s initiatives



Supporting Biomass Heat

Why Support

Biomass Heat?



Opportunities

Potential Heat Users:

• Residential – primary and secondary heat

• Commercial / Institutional (M.U.S.H. sector,

SME’s, multi-unit residential) – space and

water heating

• Industrial – space and process heat

Considerations:

• Using local fibre (forest, agriculture) and

urban wood waste

• Bagged and bulk delivery systems

• Developing the supply chain to support

future higher value bioproducts

K.A. Campbell, MNRF



Opportunity – Areas Without Natural Gas

Ontario’s Natural Gas Transmission Network and Franchise Distribution Areas:

Source: Making Choices: Reviewing Ontario’s Long-Term Energy Plan, Ontario Ministry of Energy, 2013



Natural Gas Lines and Service Area

in the Blue Sky Region of Ontario

Facilities Consuming Wood

Source: Roadmap for Biomass Industry Development in the

Blue Sky Region of Ontario, TorchLight Bioresources, 2013

Opportunity – Blue Sky Region

Source: Queen’s Printer for Ontario, 2014



Opportunity – North Shore of Lake Superior

• Area comprised of six

municipalities and six

First Nation communities

• Primary heat sources: oil

(34%), wood (32%) and

electricity (30%)

• Wawa – primarily oil heat

Source: NSFC

Source: MNRF

Source: NSFC



Opportunity – Remote Communities

Northwestern Ontario:

• 32 diesel dependent

communities

• 35 million litres of diesel

fuel used annually

• Distributed energy?

• Combined heat and

power?



Supporting Biomass Heat Project

Goal:

• To improve the business and policy environment

for the use of solid biomass fuels for heat in

Ontario

Approach:

• Multi-ministry & multi-partner to leverage efforts

and resources

• Coordinated & streamlined

• Multi-faceted – policy, research & development,

investment & market development, outreach

• Short, medium and long term objectives &

deliverables

M. Smith, BIC

South Shore Education Centre

– Nipissing Village



Wood Heating Systems <3MW ECA Interim Guidance

• Gather information

• Wood fuel characteristics

• Combustion/gasification technologies

• Air emission performance indicators

• International jurisdictional best practices

• Equipment manufacturers survey

• Stakeholder Working Group and Technical

Specialists Working Group

• Development of a new interim guidance

document for small-scale wood combustion

ECA permits in Ontario

Our Lady of Mercy Catholic School - Bancroft

M. Smith, BIC

M. Smith, BIC



Wood Pellet Supply and Distribution Logistics

• Marketing plan for commercial

wood pellet applications

• GIS logistical analysis



Bio-Heat Community of Practice

Developing a Bio-Heat Community of Practice:

• People who share a common interest and who work together

to expand their individual and collective capacity to support

the development of a domestic biomass heat market over

time.

• MNRF is committed to helping develop Ontario’s

Bio-Heat Community of Practice

• Hosted workshop in Feb 2014

• Monthly e-newsletter

• Participate in partners’ outreach

activities

M. Smith, MNRF

To sign-up for the e-newsletter contact:

[email protected]



Discussion Paper and Jurisdictional Review

• Internal government discussion paper

– ‘Biomass Heat: What’s in it for

Ontario?’

• Highlight the environmental, social &

economic reasons to support biomass

heat

• Jurisdictional review to illustrate

successes of other regions

• Associated workshop & facility tour



Lighting Fire in Ontario

Creating the Initial Spark…

• Identify bioenergy

‘champions’ and get them

involved

• Create a strong, unified

voice and coordinate

activities among all parties

• Identify the most promising markets and develop

niches locally

• Focus on a few single ‘asks’ that can be accomplished in

2-3 years

• Communicate, celebrate & showcase successes!

M. Smith, BIC



Contact Information

Megan Smith

Program Specialist – Forest Bioeconomy

Ministry of Natural Resources

Forest Industry Division

Sault Ste. Marie, ON

[email protected]

(705) 945-5843

S. MacPherson, MNRF M. Smith, MNRF

mailto:[email protected]

Documents

Bioenergy: Lighting a Fire in Ontario BioHeat FINAL… · Bioenergy: Lighting a Fire in Ontario ... promote transformation and stimulate demand ... Wood Heating Systems