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ORNL is managed by UT-Battelle for the US Department of Energy Cellulosic-based biofuels are strengthening rural investment & development in the United States or Opportunities for wood pellet production for energy in the Southeast US This presentation does not contain any proprietary, confidential, or otherwise restricted information. Virginia H. Dale ([email protected] ) The University of Tennessee, Knoxville, TN Keith L. Kline ([email protected] ) & Esther S. Parish ([email protected] ) Oak Ridge National Laboratory, Oak Ridge, TN Sustainable Landscape Management for Bioenergy and the Bioeconomy Joint IEA Bioenergy Task 43 & FAO Workshop October 11-12, 2018, Rome, Italy

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Page 1: Cellulosic-based biofuels are strengthening rural investment & … · 2020. 2. 26. · cleared for agriculture Soils: red clay or sandy Temperate climate: hot, humid summers, & cool

ORNL is managed by UT-Battelle

for the US Department of Energy

Cellulosic-based biofuels are strengthening rural investment & development in the United States

orOpportunities for wood pellet production

for energy in the Southeast US

This presentation does not contain any proprietary,

confidential, or otherwise restricted information.

Virginia H. Dale ([email protected])

The University of Tennessee, Knoxville, TN

Keith L. Kline ([email protected]) &

Esther S. Parish ([email protected])

Oak Ridge National Laboratory, Oak Ridge, TN

Sustainable Landscape Management for

Bioenergy and the Bioeconomy

Joint IEA Bioenergy Task 43 & FAO Workshop

October 11-12, 2018, Rome, Italy

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US DOE assessment approach is similar to that of FAO

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Application to growing US industrial wood pellet trade

Converted power plant, Drax, UK (www.bbc.com)

Parish et al. (2018) Ecology & Society

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4 Managed by UT-Battellefor the U.S. Department of Energy

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Re

mo

vals

(gr

ee

n M

T)

Year

Pulpwood Pellets Sawtimber

Dale et al. (2017) Forest Ecol & Mgmt

Wood based pellets are <3% of

wood products from SE US

?

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5 Managed by UT-Battellefor the U.S. Department of Energy

Pellet mills

Trains & shipping

companies

Member nations that use

bioenergy to displace

coal

Stakeholders concerned with parts of supply chain:

Stakeholders with cumulative perspective:

Environmental NGOs

EU policy makers

Feedstock production

Feedstock logistics

Conversion to pellets

Biofuel logistics

End uses

Landowners

Loggers

Saw mills

Pulp mills

Truckers

Stakeholders associated with different parts of wood based pellet production in the SE US

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Primary uses of forest lands

Timberland*

Recreation land

Urban land

Conserva-tion land

Forest conditions

Regeneration: planted or natural via

seeds or sprouts

Ownership: mostly private

Stand ages: 0-100 years

Management practices:

none, harvest, thinning, controlled burns, & state

BMPs

Forest composition: pines or mixed hardwoods

Topography: flat or rolling hills & occasional

wetlands

Environmental setting

Prior land use: most forests previously cleared for agriculture

Soils: red clay or sandy

Temperate climate:

hot, humid summers, & cool winters

Disturbances: insect outbreaks,

droughts, fire, ice storms, hurricanes,

& tornados

Pulp-

wood

Round

wood

export

None of

above,

chips

Sawmill

Paper mill

Residues

“Pre-commercial

Thinning”

Market options for forest products (the heavier the arrow the greater the

economic value)

Saw

timber

Feedstock for pellet

mill

Other uses:•Energy for

facility

•Particle board

•Fiberboard

*Timberlands are the only US forest lands currently providing biomass for wood pellet export. The US Forest Service defines

timberland as ‘‘nonreserved forest land capable of

producing at least 20 cubic feet of wood volume per acre per year.”

Influences on SE US export wood pellet production

Rare historical photo of

large trees in SE US

Davis (1996), Varner et al. (2005), Wear &

Greis, (2013), Parish et al. (2017)

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Primary uses of forest lands

Timberland*

Recreation land

Urban land

Conserva-tion land

Forest conditions

Regeneration: planted or natural via

seeds or sprouts

Ownership: mostly private

Stand ages: 0-100 years

Management practices:

none, harvest, thinning, controlled burns, & state

BMPs

Forest composition: pines or mixed hardwoods

Topography: flat or rolling hills & occasional

wetlands

Environmental setting

Prior land use: most forests previously cleared for agriculture

Soils: red clay or sandy

Temperate climate:

hot, humid summers, & cool winters

Disturbances: insect outbreaks,

droughts, fire, ice storms, hurricanes,

& tornados

Pulp-

wood

Round

wood

export

None of

above,

chips

Sawmill

Paper mill

Residues

“Pre-commercial

Thinning”

Market options for forest products (the heavier the arrow the greater the

economic value)

Saw

timber

Feedstock for pellet

mill

Other uses:•Energy for

facility

•Particle board

•Fiberboard

*Timberlands are the only US forest lands currently providing biomass for wood pellet export. The US Forest Service defines

timberland as ‘‘nonreserved forest land capable of

producing at least 20 cubic feet of wood volume per acre per year.”

Influences on SE US export wood pellet production

Forest management decisions largely driven by

demand for higher price forest products than pellets

US Housing Starts

www.census.gov/starts

Th

ou

san

ds

of

ho

usi

ng

un

its

2000 2006 2008 2017

Time

1800

1160

200

Page 8: Cellulosic-based biofuels are strengthening rural investment & … · 2020. 2. 26. · cleared for agriculture Soils: red clay or sandy Temperate climate: hot, humid summers, & cool

Primary uses of forest lands

Timberland*

Recreation land

Urban land

Conserva-tion land

Forest conditions

Regeneration: planted or natural via

seeds or sprouts

Ownership: mostly private

Stand ages: 0-100 years

Management practices:

none, harvest, thinning, controlled burns, & state

BMPs

Forest composition: pines or mixed hardwoods

Topography: flat or rolling hills & occasional

wetlands

Environmental setting

Prior land use: most forests previously cleared for agriculture

Soils: red clay or sandy

Temperate climate:

hot, humid summers, & cool winters

Disturbances: insect outbreaks,

droughts, fire, ice storms, hurricanes,

& tornados

Pulp-

wood

Round

wood

export

None of

above,

chips

Sawmill

Paper mill

Residues

“Pre-commercial

Thinning”

Market options for forest products (the heavier the arrow the greater the

economic value)

Saw

timber

Feedstock for pellet

mill

Other uses:•Energy for

facility

•Particle board

•Fiberboard

*Timberlands are the only US forest lands currently providing

biomass for wood pellet export. The US Forest Service defines

timberland as ‘‘nonreserved forest land capable of producing at

least 20 cubic feet of wood volume per acre per year.”

Influences on SE US export wood pellet production

Kline et al. (2018)

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9 Managed by UT-Battellefor the U.S. Department of Energy

Biomass stranded without markets (“unloved wood”) • Eventually burns or decays • Reduces incentives to keep private lands forested

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Fuelsheds: Counties within

120 km (75 miles) of pellet

mills that supply ports

Considered 2 case study areas supplying wood to 2 major ports:• Savannah: mostly intensively managed pine plantations • Chesapeake (Norfolk): both pine & mixed hardwoods

Each fuelshed area has an area of ~12 million ha.

Dale et al. (2017) Forest Ecology and ManagementHodges et al. (in review)

Analyses

1. Compared forest

conditions before & after

periods when pellets were

produced using the FIA

2. Examined National

Woodland Owner Survey &

conducted survey for these

fuelsheds

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11 Managed by UT-Battellefor the U.S. Department of Energy

Results from analysis of FIA data for two fuelsheds

• Significant increases in• GHG sequestration

• Timberland volume in

plantations

• Areas with large trees

• # standing dead trees/ha in

naturally regenerating stands

• Savannah fuelshed had

declines in # standing dead

trees/ha in plantations

Dale et al. (2017) For Ecol & Mgt

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12 Managed by UT-Battellefor the U.S. Department of Energy

Based on checklist of indicators identified by McBride et al. (2011)

Among environmental indicators,

our focus now is on biological diversity

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13 Managed by UT-Battellefor the U.S. Department of Energy

(Source: www.fws.gov)

Example: Gopher tortoise (Gopherus polyphemus) [GT]

• Species of conservation concern

• Keystone species

• 80% of their range overlaps countries that source pellets

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14 Managed by UT-Battellefor the U.S. Department of Energy

Compared life-history characteristics of the gopher tortoise

Burrowing/

nesting

Sandy soils

Open canopy

Forage

Understory vegetation

Movement

/Basking

Open canopy

Habitat corridors

Reproduction

Species diversity

Habitat fragmentation

Mortality

Predators

• Birds, mammals, snakes, ants

Disease

• Upper respiratory tract disease (URTD)

Vehicle accidents

Hunting

To management practices for pellets

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15 Managed by UT-Battellefor the U.S. Department of Energy

Benefits vs costs to GT of practices associated with pellets production (example)

• Midstory thinning

– Better cover, burrowing sites, & conditions for thermoregulation

– Improved conditions for movement

– Higher survival rates from disease

– Loss of herbaceous vegetation due to equipment traffic

• Removing standing dead trees

– Improved conditions for movement

– Collapse or damage to burrows

– Loss of herbaceous vegetation due to equipment traffic

– Decreased clutch sizes and/or egg quality resulting from low quality forage

– Increase in exposure to predators

(Source: www.srs.fs.usda.gov)

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16 Managed by UT-Battellefor the U.S. Department of Energy

Benefits vs costs toGT of practices associated with pellets production (example)

• Midstory thinning

– Better cover, burrowing sites, & conditions for thermoregulation

– Improved conditions for movement

– Higher survival rates from disease

– Loss of herbaceous vegetation due to equipment traffic

• Removing standing dead trees

– Improved conditions for movement

– Collapse or damage to burrows

– Loss of herbaceous vegetation due to equipment traffic

– Decreased clutch sizes and/or egg quality resulting from low quality forage

– Increase in exposure to predators

(Source: www.srs.fs.usda.gov)

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17 Managed by UT-Battellefor the U.S. Department of Energy

Considered categories for indicators of progress toward socioeconomic sustainability

Social well being

External

trade

Energy

security

Profitability

Resource

conservation

Social

acceptability

Based on checklist of indicators identified by Dale et al. (2013)

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18 Managed by UT-Battellefor the U.S. Department of Energy

As pellet production (by capacity) increased, so did jobs & economic output

-50

50

150

250

350

1990 1997 2004 2011 2018

Savannah fuelshed

Capacity (10,000 tons)

Number of jobs

Output ($M)

-50

50

150

250

350

2003 2010 2017

Chesapeake

Source: US Energy Information Agency (EIA) surveys of mills producing

densified biomass (https://www.eia.gov/biofuels/biomass/#table_data)

& Josh et al. (2013) Table 4

fuelshed

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19 Managed by UT-Battellefor the U.S. Department of Energy

Consideration of noncorporate forest land owners’ perspectives regarding wood-based energy

Survey of ~900 family forest land owners in eastern US on biomass for energy:

• Concern for the environment is paramount

• Potential impacts on existing industries are a concern

• There was a willingness to support use of biomass for energy as long as

1. Land health is not compromised

2. The price is right

Hodges et al. (2016) based on data from the Forest Service

National Woodland Owner Survey (Butler et al. 2016)

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0

10

20

30

40

50

Veryimportant

Important Moderatelyimportant

Of littleimportance

Notimportant

Notapplicable

To enjoy beauty or scenery

To protect nature for biologicaldiversity or wildlife habitat

For land investment

For privacy

To pass land on to my children orother heirs

For timber products**

0

10

20

30

40

50

60

Veryimportant

Important Moderatelyimportant

Of littleimportance

Notimportant

Notapplicable

For hunting or other recreationaluse**

For tax benefits

For firewood

For woody biomass for energy otherthan firewood

For NTFP

I have no other higher valued optionfor the land

Number of responses

Recent mail survey reveals diverse reasons that

landowners keep their land in forest in two fuelsheds

Hodges et al. (in review)

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0

10

20

30

40

50

60

70

Strongly agree Somewhat agree Neutral Somewhat disagree Strongly disagree

I would be proud to supply wood that could serve as a long-term, renewable energysourceWoody biomass-based energy is a viable alternative to fossil fuels

The use of forest biomass for energy is limited to woody materials that lack othermarketsThe value of my forest is higher than it otherwise would have been because of thegrowing demand for wood pelletsWoody biomass-based energy has more environmental costs than benefits

Num

ber

of re

sponses

Largely neutral forest landowners’ responses regarding

awareness of woody biomass for energyHodges et al. (in review)

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0 20 40 60 80 100

Access to nutritious foodGlobal warming

Fossil fuel useFamily members retained in the region

Forest insect outbreaksTree diseases

Potential for wildfireInjuries related to forest harvesting

Water qualityConservation of habitats that support rare species

Air qualitySoil erosion

Abundance of game animalsArea of naturally regenerated forests

US energy securityUse of Best Management Practices

Area of forests in plantationsForest productivity

Regional economic growthJobs

Income for forest owners

Large increase Some increase No effect Some decrease Large decrease

Percent of responses

Diverse landowners’ perspectives regarding potential

effects of bioenergy productionHodges et al. (in review)

Largest increase expected for

• Income for forest owners

• Jobs

• Regional economic growth

• Forest productivity

• Use of best management

practices (BMPs)

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23 Managed by UT-Battellefor the U.S. Department of Energy

0 20 40 60 80 100

Access to nutritious foodGlobal warming

Fossil fuel useFamily members retained in the region

Forest insect outbreaksTree diseases

Potential for wildfireInjuries related to forest harvesting

Water qualityConservation of habitats that support rare species

Air qualitySoil erosion

Abundance of game animalsArea of naturally regenerated forests

US energy securityUse of Best Management Practices

Area of forests in plantationsForest productivity

Regional economic growthJobs

Income for forest owners

Large increase Some increase No effect Some decrease Large decrease

Percent of responses

Diverse landowners’ perspectives regarding potential

effects of bioenergy production

Factors related to climate change

are largely neutral:

• Fossil fuel use

• Global warming

Hodges et al. (in review)

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24 Managed by UT-Battellefor the U.S. Department of Energy

0 20 40 60 80 100

Access to nutritious foodGlobal warming

Fossil fuel useFamily members retained in the region

Forest insect outbreaksTree diseases

Potential for wildfireInjuries related to forest harvesting

Water qualityConservation of habitats that support rare species

Air qualitySoil erosion

Abundance of game animalsArea of naturally regenerated forests

US energy securityUse of Best Management Practices

Area of forests in plantationsForest productivity

Regional economic growthJobs

Income for forest owners

Large increase Some increase No effect Some decrease Large decrease

Percent of responses

Diverse landowners’ perspectives regarding potential

effects of bioenergy production

Access to nutritious

food is neutral

Hodges et al. (in review)

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0 100

Certification of forestland is not required

Other neighbors harvesting biomass

A landowner cooperative including neighbors that negotiates…

Assurance that forests in owner’s region will not be over-harvested

Assurance that woody biomass for energy will increase our …

Evidence that HWB for energy improves species composition in…

Assurance of no interference with sawtimber production on my…

Nearby markets

Assurance of a long-term market for woody biomass for energy

Assurance of reduced fire and disease risk to the owner’s forest

Technical assistance for HWB in a manner that improves stand…

Woody biomass price as high as pulpwood

Very Unlikely Somewhat Unlikely Neutral Somewhat likely Very Likely

Percent of responses

Diverse views on effects of markets & policy on

willingness to sell biomass for energy

(HWB = harvesting woody biomass) Hodges et al. (in review)

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26 Managed by UT-Battellefor the U.S. Department of Energy

Pellet production allows forest owners to conduct

forest management (e.g., thinning) that reduces

risks of fire & insect outbreaks

Parish, Dale, Kline (2017) World Biomass

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27 Managed by UT-Battellefor the U.S. Department of Energy

Benefits of producing wood pellets in the SE US

• Provide rural jobs

• Mitigate climate change• By replacing coal

• By enhancing forest sequestration in forests with improved management

• Reduce inefficiencies

• Improve forest habitat

• Retain forests• As demand for wood increases, net

forest area typically expands

• Decrease risks of • Insect outbreaks & disease

• Destructive wildfire

• Cowie et al. (2013) IEA Bioenergy

• Dale + 34 authors (2017) GCB Bioenergy

• Dale et al (2017) Forest Ecol & Mgt

• Forest2Market (2017)

• Miner et al. (2014) Journal of Forestry

• Parish et al. (2018) Ecology & Society

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28 Managed by UT-Battellefor the U.S. Department of Energy

https://cbes.ornl.gov/

Thank you!

This research is supported by the U.S. Department of Energy (DOE)

Bio-Energy Technologies Office and performed at Oak Ridge National

Laboratory (ORNL). Oak Ridge National Laboratory is managed by

the UT-Battelle, LLC, for DOE under contract DE-AC05-00OR22725.

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29 Managed by UT-Battellefor the U.S. Department of Energy

References• Butler BJ, Hewes JH, Dickinson BJ, Andrejczyk K, Butler SM, Markowski-Lindsay M (2016) USDA Forest Service National Woodland Owner Survey: national, regional, and

state statistics for family forest and woodland ownerships with 10+ acres, 2011-2013. Res. Bull. NRS-99. Newtown Square, PA: US Department of Agriculture, Forest Service, Northern Research Station. 39 p.

• Cowie A, Berndes G, Smith T (2013) On the timing of greenhouse gas mitigation benefits of forest based bioenergy. IEA Bioenergy ExCo: 2013:04 www.ieabioenergy.com/publications/on-the-timing-of-greenhouse-gas-mitigation-benefits-of-forest-based-bioenergy.

• Dale VH, RA Efroymson, KL Kline, MH Langholtz, PN Leiby, GA Oladosu, MR Davis, ME Downing, MR Hilliard. (2013). Indicators for assessing socioeconomic sustainability of bioenergy systems: A short list of practical measures. Ecological Indicators 26:87-102 http://dx.doi.org/10.1016/j.ecolind.2012.10.014

• Dale VH, KL Kline, ES Parish, AL Cowie, TC Smith, NS Bentsen, G Berndes, et al. (2017). Status and prospects for renewable energy using wood pellets from the southeastern United States. GCB Bioenergy. GCB Bioenergy doi: 10.1111/gcbb.12445. http://onlinelibrary.wiley.com/doi/10.1111/gcbb.12445/full

• Dale VH, Parish ES, Kline KL, Tobin E (2017) How is wood-based pellet production affecting forest conditions in the southeastern United States? Forest Ecology and Management 396: 143-149. doi.org/10.1016/j.foreco.2017.03.022 https://authors.elsevier.com/a/1UxyW1L~GwCo5V

• Davis MB (editor) (1996) Eastern old growth forests: prospects for discovery and recovery. Island Press, Washington, DC. 383 p.

• Ellefson PV, Moulton RJ, Kilgore MA (2002) An assessment of state agencies that affect forests. Journal of Forestry 100 (6), 35-41.

• Hewes J, Butler B, Liknes GC, Nelson MD, Snyder SA (2014) Map of distribution of six forest ownership types in the conterminous United States. Res. Map NRS-6. Newtown Square, PA: U.S. Department of Agriculture, Forest Service, Northern Research Station. [Scale 1: 10,000,000, 1: 34,000,000.] https://www.nrs.fs.fed.us/pubs/46386

• Hodges DG, Larson EC, Finley JC, Luloff AE, Willcox AS, Gordon JS (2016) Wood bioenergy and private forests: perceptions of owners in the eastern United States. In: Forest Economics and Policy in a Changing Environment: How Market, Policy, and Climate Transformations Affect Forests—Proceedings of the 2016 Meeting of the International Society of Forest Resource Economics. Frey, Gregory E.; Nepal, Prakash, eds. 2016. e-Gen. Tech. Rep. SRS-218. Asheville, NC: U.S. Department of Agriculture Forest Service, Southern Research Station.

• Kline Kl, Parish ES, Dale VH (2018) The importance of reference conditions in assessing effects of bioenergy wood pellets produced in the southeastern United States. World Biomass. DCM Productions, United Kingdom.

• McBride, A, VH Dale, L Baskaran, M Downing, L Eaton, RA Efroymson, C Garten, KL Kline, H Jager, P Mulholland, E Parish, P Schweizer, and J Storey. 2011. Indicators to support environmental sustainability of bioenergy systems. Ecological Indicators 11(5) 1277-1289.

• Parish ES, Dale VH, Kline KL, Abt R (2017) Reference scenarios for evaluating wood pellet production in the Southeastern United States. WIRES Energy and Environment.

• Parish ES, Herzberger AJ, Phifer CC, Dale VH (2018) Transatlantic wood pellet trade demonstrates telecoupled benefits. Ecology and Society 23 (1):28. [online] URL: https://www.ecologyandsociety.org/vol23/iss1/art28/

• Oswalt SN, Smith WD (2014) US forest resources facts and historical trends. USDA Forest Service FS-1035. https://www.fia.fs.fed.us/library/brochures/docs/2012/ForestFacts_1952-2012_English.pdf

• Miner RA, Abt RC, Bowyer JL, et al. (2014) Forest carbon accounting considerations in US bioenergy policy. Journal of Forestry, 112, 591–606.

• Varner JM, Gordon DR, Putz E, Hiers JK (2005) Restoring fire to long-unburned Pinus palustris ecosystems: Novel fire effects and consequences for long-unburned ecosystems. Restoration Ecology, 13, 536-544.

• Wear DN, Coulston JW (2015) From sink to source: Regional variation in US forest carbon futures. Sci. Rep. 5, 16518; doi:10.1038/srep16518

• Wear D, Greis J. (2013) The Southern Forest Futures Project: Technical Report Gen. Tech. Pre. SRS-178. United States Department of Agriculture. Forest Service, Research and Development, Southern Research Station, 553 pg.