MNR Perspective On MNR Perspective On Bioproducts & Bioenergy Bioproducts & Bioenergy

in Ontarioin Ontario

Dr. Jason KoivistoDr. Jason Koivisto

SAF-CIF SAF-CIF 20092009

DefinitionsDefinitionsA Bioeconomy (bio-based economy)A Bioeconomy (bio-based economy)

An economy where the basic building blocks for materials, chemicals, and An economy where the basic building blocks for materials, chemicals, and energy are derived from renewable biological resources, such as plant and energy are derived from renewable biological resources, such as plant and animal sourcesanimal sources

BioproductsBioproducts A product developed from biological materials. Bioproducts may replace or A product developed from biological materials. Bioproducts may replace or

enhance products derived from non-renewable resources. The term bioproduct enhance products derived from non-renewable resources. The term bioproduct encompasses biofuels, biocomposites, nutraceuticals, and other biobased encompasses biofuels, biocomposites, nutraceuticals, and other biobased products. products.

BiorefiningBiorefining Uses biomass as the feedstock in a dynamic refining process to produce Uses biomass as the feedstock in a dynamic refining process to produce

bioproducts. The concept is modeled on the process for refining crude oil.bioproducts. The concept is modeled on the process for refining crude oil.

Bioconversion Bioconversion The conversion of organic materials, such as wood, into usable products or The conversion of organic materials, such as wood, into usable products or

energy sources by biological or thermo-chemical processes.energy sources by biological or thermo-chemical processes.

DefinitionsDefinitions

BiomassBiomass Living or recently dead biological matterLiving or recently dead biological matter. Biomass is Biomass is

essentially a stored form of solar energy. Common essentially a stored form of solar energy. Common sources include agricultural crops and wastes, and sources include agricultural crops and wastes, and forestry residues.forestry residues.

Forest BiofibreForest Biofibre Forest biofibre includes tree tops, cull Forest biofibre includes tree tops, cull

trees or portions of trees, individual trees or portions of trees, individual and stands of unmerchantable and and stands of unmerchantable and unmarketable trees, and trees that may unmarketable trees, and trees that may be salvaged as a result of a natural be salvaged as a result of a natural disturbance.disturbance.

The Business of Bioproducts The Business of Bioproducts

Industry Canada, 2006

BioenergyBioenergy

Direct CombustionDirect Combustion Burning biomass in a woodstove, fireplace or boiler.Burning biomass in a woodstove, fireplace or boiler.

Cogeneration (Combined Heat and Power)Cogeneration (Combined Heat and Power) The simultaneous generation of both electric power and heat; the heat, The simultaneous generation of both electric power and heat; the heat,

instead of being discharged without further use, is used in some fashion instead of being discharged without further use, is used in some fashion (eg, in district heating systems).(eg, in district heating systems).

Co-firingCo-firing Burning of two fuels in the same combustion unit; e.g., bio-oil and Burning of two fuels in the same combustion unit; e.g., bio-oil and

natural gas, or wood pellets and coal.natural gas, or wood pellets and coal.

Bioprocess TechnologyBioprocess Technology

Gasification Gasification Uses high temperatures in the presence of oxygen to convert solid Uses high temperatures in the presence of oxygen to convert solid

biomass into a gas. The gas can be used for direct combustion, biomass into a gas. The gas can be used for direct combustion, cogeneration or chemical extractioncogeneration or chemical extraction

PyrolysisPyrolysis Is theIs the chemical breakdown of biomass in the absence of air at chemical breakdown of biomass in the absence of air at

temperatures above 250temperatures above 250°C. This process produces a bio-oil, syn-gas, °C. This process produces a bio-oil, syn-gas, char and ash which can be used for bioenergy or chemical extraction.char and ash which can be used for bioenergy or chemical extraction.

FermentationFermentation The anaerobic conversion of sugar to carbon dioxide and alcohol by The anaerobic conversion of sugar to carbon dioxide and alcohol by

microorganisms.microorganisms.

Bio-catalysisBio-catalysis Enzymes or microorganisms are used to perform chemical Enzymes or microorganisms are used to perform chemical

transformations on the organic compounds in the biomass.transformations on the organic compounds in the biomass.

CHAMBOST, V., MCNUTT,j.. STUART, P.R. Guided tour: Implementing the forest biorefinery (FBR) at existing pulp and paper mills. Pulp & Paper Canada 109(7/8):T83-T9I (July/August 2008).

Current use of biofibre

Examples of High Value Bioproducts Examples of High Value Bioproducts from Biofibrefrom Biofibre

Replacement for Carbon BlackReplacement for Carbon Black Carbon FibresCarbon Fibres Nanocrystalline CelluloseNanocrystalline Cellulose TanninsTannins Sitosterol & SitostanolSitosterol & Sitostanol

Ontario’s OpportunityOntario’s Opportunity

Potential feedstock supply and receptor capacity;Potential feedstock supply and receptor capacity; Close proximity to largest markets in North AmericaClose proximity to largest markets in North America Skilled labour force and harvesting contractor Skilled labour force and harvesting contractor

capacity;capacity;

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Motor Vehicle Manufacturing

Plastics and Rubber Products Manufacturing

Chemical Manufacturing

Petroleum and Coal Products Manufacturing

Productive Forest Area

Cropland and Pasture Area

Ontario’s Research CapacityOntario’s Research Capacity Established research programs through Ontario Forest Research Institute;Established research programs through Ontario Forest Research Institute; R&D capacity with several universities actively engaged; R&D capacity with several universities actively engaged; Collaboration with Canadian Forest Services, Great Lakes Forest Alliance and Collaboration with Canadian Forest Services, Great Lakes Forest Alliance and

FP InnovationsFP Innovations Ontario making significant investments in 3 Research & Innovations Centres.Ontario making significant investments in 3 Research & Innovations Centres.

Centre for Research and

Innovation in the Bioeconomy - $25 M Queens Centre for Biomaterials

Research - $21 M

Bioindustrial Innovation

Centre - $10 M

Government of Ontario Priority - Strong people, strong economy (a greener economy)

MNR’s Our Sustainable Future –

Conserve Biodiversity & Use Natural Resources in a Sustainable Manner

MNR’s Strategic Objective – Economic Growth for Ontario Communities

Bioeconomy Program’s Strategic Purpose –Contribute to the evolution of Ontario’s green economy by

facilitating the sustainable use of natural resources for bio-based products.

MNR’s Bioeconomy ProgramMNR’s Bioeconomy Program

MNR’s Bioeconomy TeamMNR’s Bioeconomy Team

Forest Bioeconomy CoordinatorDr. Jason Koivisto

Knowledge Development/ Transfer Specialist *

Brady Irwin

Program Specialist – Forest Bioeconomy*

Joe Maure

Provincial BioeconomyNetwork

(Multi-ministry)

MNR’s One window for bioeconomy initiatives

* New ^ matrixed

Economics Specialist – Forest Bioeconomy*

Dr. Indrajit Majumdar

Policy Analyst – Forest Bioeconomy*

Karry Anne Campbell

WAMS – Forest Analyst ^

SO Regional forest industry

liaison officer ^Ian Manson

FSCS - Forest Business Analyst ^

SIRD - Science Management Coordinator^

FPS – Senior Policy Advisor ^

RES - Alternative Energy Program

Officer^

WAMS - 3 Regional Forest Industry

Liaison Officers ^

FSD – Kapuskasing Area Supervisor ^

MNR’s Role in Developing MNR’s Role in Developing Ontario’s BioeconomyOntario’s Bioeconomy

Defining the resource potentialDefining the resource potential

Improving access to biofibreImproving access to biofibre

Science knowledge development and transferScience knowledge development and transfer

Community involvement and socio-economic Community involvement and socio-economic developmentdevelopment

Defined Resource PotentialDefined Resource Potential

Continue model and information developmentContinue model and information development Spatial analysis capabilitySpatial analysis capability

Link to FERIC economic modelLink to FERIC economic model

Develop yield estimates by speciesDevelop yield estimates by species

Support operational trials Support operational trials

Incorporate biofibre estimates into Forest Incorporate biofibre estimates into Forest

Management PlansManagement Plans

Available Forest Available Forest BiomassBiomass

Available Harvest & Actual Harvest (million m³)

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1 m3 = 0.276 cords

Forest Biomass SourceAnnual Volume - Million m³ - green

Mill Residues (hog fuel, sawdust, bark) - listed as 'waste' on Annual Mill Return

0.6

Older Slash Piles - (Piled but not burnt due to improper indices, timing issues)

2.0

Slash (branches) from current forest harvest operations

1.3

Unutilized but available harvest volume

9.6

Slash (branches) and Bark asssociated with unutilized but available harvest volume

1.5

Private Lands 1.0Total 16.0

Improved Access to BiofibreImproved Access to Biofibre

Review the use of existing forest resource Review the use of existing forest resource commitmentscommitments

Facilitate and support access to biofibreFacilitate and support access to biofibre

Initiate policy discussion on MNR’s role on Initiate policy discussion on MNR’s role on private landprivate land

Ontario’s Forest Biofibre PolicyOntario’s Forest Biofibre Policy The Directive guides the use and allocation of Crown The Directive guides the use and allocation of Crown

forest biofibreforest biofibre

Same allocation / disposition process as for Crown Same allocation / disposition process as for Crown timbertimber

Priority for aboriginal opportunitiesPriority for aboriginal opportunities

Reinforces need to comply with all Forest Reinforces need to comply with all Forest Management Planning / EA requirementsManagement Planning / EA requirements

Pricing of BiofibrePricing of BiofibreEffective April 1, 2008

Unmarketable Fibre Unmerchantable Fibre

Minimum Charge $0.00/m3

Residual Value $0.00/m3

Forestry Futures $0.00/m3

Forest Renewal $0.00/m3

Total $0.00/m3

UndersizedTops & Branches

Scaling Manual StandardsUnused Roundwood

Minimum Charge $0.00/m3

Residual Value $0.00/m3

Forestry Futures $1.07/m3

Forest Renewal $0.25/m3 minimum*

Total $1.32/m3 minimum

*Forest Renewal is a minimum of $0.25/m3 – set by District Managers basedon renewal needs

Price is for 10 years to be reviewed after 5 years$ collected go only to forest silviculture & inventory

1 m3 = 0.276 cords

Biofibre Harvest Volumes by FMU Biofibre Harvest Volumes by FMU up to Nov. 08up to Nov. 08

1 m3 = 0.276 cords

Biofibre Harvest Volumes by FMU Biofibre Harvest Volumes by FMU up to April ‘09up to April ‘09

1 m3 = 0.276 cords

1 m3 = 0.276 cords

Ministry of Natural Resources' Staged Ministry of Natural Resources' Staged Competition for Crown Wood Supply in Competition for Crown Wood Supply in

Ontario Ontario

Stage One – Request for Expression of Stage One – Request for Expression of InterestInterest Deadline was March 3Deadline was March 3rdrd, 2009, 2009 Over 130 proponent applicationsOver 130 proponent applications

Stage Two - Wood Supply Competitive Stage Two - Wood Supply Competitive Process Process

Stage One Proposed UsesStage One Proposed Uses

Science & Knowledge Development Science & Knowledge Development and Transferand Transfer

Develop a knowledge management strategy and Develop a knowledge management strategy and transfer plan on bioeconomy matterstransfer plan on bioeconomy matters

Assess science capacity and knowledge and Assess science capacity and knowledge and determine mechanisms to fill gapsdetermine mechanisms to fill gaps

Engage in science networks at provincial, national Engage in science networks at provincial, national and international leveland international level

Collaboration effort with FP Innovations and Collaboration effort with FP Innovations and Universities to support the transformation of the Universities to support the transformation of the forest sectorforest sector

Investigate climate change benefits of bioeconomy Investigate climate change benefits of bioeconomy projectsprojects

Collaborate and conduct research as part of the Great Collaborate and conduct research as part of the Great Lakes Forest AllianceLakes Forest Alliance

MNR’s Fast Pyrolysis MNR’s Fast Pyrolysis Transportable Biorefinery ProjectTransportable Biorefinery Project

New forest derived products New forest derived products New business opportunities New business opportunities

Develop and demonstrateDevelop and demonstrate Research integration of the technology within existing Research integration of the technology within existing

forest harvesting operations.forest harvesting operations.

Community Involvement and Community Involvement and Socio-Economic DevelopmentSocio-Economic Development

Social and economic comparative analysisSocial and economic comparative analysis Community combined heat and powerCommunity combined heat and power

Support community development initiativesSupport community development initiatives

Engage other Ministries to develop ways to Engage other Ministries to develop ways to engage Aboriginal and rural communitiesengage Aboriginal and rural communities

ConclusionConclusion

There is a great deal of interest in making use of There is a great deal of interest in making use of Ontario’s forests to support the development of the Ontario’s forests to support the development of the bioeconomy.bioeconomy.

Ontario is actively supporting a series of initiatives to Ontario is actively supporting a series of initiatives to advance the development of a forest bioeconomy.advance the development of a forest bioeconomy.

We’re willing to entertain partnerships to advance We’re willing to entertain partnerships to advance areas of common interest as they relate to the use of areas of common interest as they relate to the use of forest resources for the bioeconomy.forest resources for the bioeconomy.

Questions????Questions????

Dr. Jason KoivistoDr. Jason KoivistoMNR – Industry Relations BranchMNR – Industry Relations Branch

945-6758945-6758jason.koivisto@ontario.cajason.koivisto@ontario.ca