5 international bioenergy conference and...

5th International BioEnergy Conference

and Exhibition

Prince George, British Columbia June 13–15, 2012

Table of Contents

Welcome .........................................................................................................................................1

Session 1 Around the World in Half a Day: Global Game Changers ...............................................................................................................2

1. Canada: BioEnergy Growth............................................................................................2

2. The European Union on its Way to 20-20-20 ...............................................................2

3. Global Market and Investment Perspectives..............................................................3

4. Industry Perspectives on New and Emerging Markets ............................................4

Session 2 The Future of Fibre.......................................................................................................................5

1. B.C. Forest Tenure System and Options for Fibre .....................................................5

2. B.C. Interior BioEnergy Fibre Supply: Evolving Impacts & Opportunities—”The Economic Balancing Act” ..........................6

3. Resolving Wildfire Risk in British Columbia through the Development of a Community-Based BioEnergy Sector .................................................7

4. Forest Products Sector View on Fibre and BioEnergy...............................................8

5. Biomass Outlook and Use for BioEnergy Applications............................................9Discussion ............................................................................................................................10

Luncheon Keynote Presentation Global Biomass Value Optimization: Next-Generation Alternative Fuels .........................................................................................11

Session 3 Sustainability: The International Experience...................................................................................................13

1. Opportunities and Options for B.C. in the Global Carbon Market .....................13

2. European Union Perspectives and Progress on Sustainability .............................14

3. BioEnergy: Carbon Neutral or Not?............................................................................15Discussion ............................................................................................................................15

Session 4 Outlook Bioeconomy .................................................................................................................16

1. B.C. Bioeconomy: Opportunities and Challenges ..................................................16

2. Sweden Story: Evolution of a Bioeconomy Leader.................................................17

3. Trees: New Zealand’s Future Oil Wells? ...................................................................17

4. Global Market Pulp Industry: Implications of BioEnergy/Bioproducts on Pulp Industry Cost Structure .................18Discussion ............................................................................................................................19

Concurrent Session 1 Advancements in Municipal and Community Energy .......................................................20

1. What Makes a Good District Energy Project ............................................................20

2. Community Biomass Gasification ..............................................................................21

3. Building Public Support for BioEnergy: UNBC’s Experience..............................22

4. Creating Renewable Heat for Future Generations . . . Today................................22Discussion ............................................................................................................................23

Concurrent Session 2 BioEnergy Deployment Today ................................................................................................24

1. Organic Rankine Cycle for Biomass-Fuelled Projects ............................................24

2. Putting the Pieces Together: The Biomass to Energy Puzzle—High Efficiency Moisture Reduction ......................25

3. Home-Brewed Fuel.........................................................................................................26

4. Biomass Gasifier for Energy Generation...................................................................27Questions .............................................................................................................................27

Concurrent Session 3 Pellets in the New Bioeconomy...............................................................................................29

1. The Canadian Wood Pellet Situation .........................................................................29

2. Wood Pellet Trade Scenarios .......................................................................................30

3. Canadian Clean Power Coalition: Delivering Results for Over a Decade ...............................................................................31

4. The Plan and Prospect for Biomass in Korea’s Genco ............................................32

5. Wood Pellet Shipping Strategies for Asian Markets ..............................................32

Concurrent Session 4 Advanced BioEnergy Technologies ........................................................................................33

1. Update on the “First Commercial LignoBoost™ Project” at Domtar in Plymouth, North Carolina............................................................................33

2. Biomass to Hydrogen Power: Clean Energy Systems and Green Hydrogen ...................................................................34

3. Lignol’s Flexible Biorefinery Technology .................................................................35

4. Conventional Energy Company into the State-of-the-Art Biofuel Business .......................................................................................36Discussion ............................................................................................................................36

Concurrent Session 5 First Nations, Remote Communities, and the Bioeconomy ...............................................37

1. First Nations and the Clean Energy Sector................................................................37

2. Overview: Batch Oxidation System™ Two-Stage Advanced Thermal Gasifier.............................38

3. Community-Scale BioEnergy .......................................................................................39

4. Energy Independence and an Economic Development Solution: A Woody Biomass Energy System for the Kwadacha First Nation..............................40Discussion ............................................................................................................................40

Concurrent Session 6 Torrefaction Technical Session................................................................................................42

1. Torrefaction .....................................................................................................................43

2. Torrefaction of Biomass: Overview and Summary of Andritz Activities ................................................................44

3. Torrefied Biomass as Clean Coal Replacement Fuel...............................................44

4. Bio-Coal: A Global Product for a Global Solution .................................................45

Luncheon Keynote Presentation..............................................................................................45Discussion ............................................................................................................................47

BIOENERGY CONFERENCE AND EXHIBITION 2012 PAGE 1

PRINCE GEORGE, BRITISH COLUMBIA • JUNE 14–15, 2012

Welcome SPEAKERS Don Zurowski Chair, International BioEnergy Conference and Exhibition Society Co-chair, 5th International BioEnergy Conference

Shari Green Mayor City of Prince George, British Columbia

Michael Weedon Executive Director, B.C. BioEnergy Network Co-chair, 5th International BioEnergy Conference

In 2004, Canada produced just under one million metric tonnes of wood pellets per annum with about 300,000 coming from British Columbia, said Don Zurowski. Pellets were then a recreational fuel; wood residuals were considered wood waste. However, Europe’s example showed this fibre could be considered an economic asset, opportunity, and environmental solution.

Today, Canada produces 3.6 million tonnes of wood pellets per annum with about two million coming from British Columbia, and a number of local bioenergy projects have flourished. Zurowski highlighted the Baldy Hughes community heating system, the University of Northern British Columbia wood pellet and biomass gasification plant, Prince George’s district energy system, the planned Conifex and West Fraser bioenergy cogeneration plants, and the Sinclar Group’s organic Rankine cycle cogeneration internal combustion heat recovery system. Moreover, the Northern BioEnergy Partnership has been established to facilitate projects. Zurowski said these advancements and projects indicate the bioenergy sector in British Columbia, and in Canada, is off to a good start.

Shari Green said Prince George brims with industrial achievement, entrepreneurial activity, and leadership in bioenergy technology and forest fibre management. She announced that the new district energy system is complete and operational, with a number of city buildings currently or soon to be online. This system allows the city to meet greenhouse gas (GHG) reduction goals, reduces reliance on non-renewable fossil fuels, and dramatically decreases air-borne particulates. Green applauded the innovative thinking and leadership of the bioenergy sector in creating projects that can help communities embrace renewable forms of energy.

Michael Weedon described the B.C. BioEnergy Network, a not-for-profit society focused on helping the sector work collectively. Through major capital investments, education and advocacy, and capacity building and development, B.C. BioEnergy Network is mandated to maximize the value of B.C.’s biomass resources, develop mission-driven research and demonstration projects, reduce GHG emissions, advance the bioenergy sector through domestic and international partnerships and networks, and leverage funding to support bioenergy technology and applications. With its partners, the organization has funded almost $80 million worth of projects involving solid wood residues, pulp and paper residues, harvesting and densification, heat and power systems, waste water, existing landfill waste, solid waste, and agriculture residues.

Weedon said B.C.’s bioeconomy creates jobs and economic and social development, fosters environmental benefits, and provides clean energy exports. Although challenges include scarcity of capital, cheap and abundant hydroelectricity and natural gas, a lack of information and sharing of best practices, and a poorly developed supply chain, British Columbia has sound



policies and regulations. The recent B.C. Bioeconomy report recommended establishing a clear, long-term vision, improving access to fibre, establishing a technology development strategy, developing markets for B.C. bioproducts, aggressively marketing, and integrating the bio-economy’s infrastructure needs into provincial initiatives. In this competitive race for clean, sustainable prosperity, continued commitment and resources are needed and partnering is essential for sector development, financing, and markets.

Session 1 Around the World in Half a Day: Global Game Changers MODERATOR Sandy Ferguson Director of Business Development and Marketing, B.C. BioEnergy Network Board Director, Canadian BioEnergy Association (CanBio) Canada

1. Canada: BioEnergy Growth BioEnergy is 6% of Canada’s energy mix, said Sandy Ferguson. In 2011, CanBio conducted the first comprehensive Canadian bioenergy data survey on the sector, focusing on primary bioenergy production. BioEnergy industries are growing, including pulp and paper and sawmill cogeneration, new independent power producers, pellets facilities, bioethanol capacity, pyrolysis oil conversions, small-scale combined heat and power (CHP) systems, community energy and district heating systems, and municipal and agricultural biogas. This growth in bioenergy means jobs—over 5,000 in direct production. The 2012 study will include new projects, biogas and greenhouses, initial work on secondary and tertiary production, and collaboration with the Northern BioEnergy Partnership.

2. The European Union on its Way to 20-20-20 SPEAKER Christiane Egger Deputy Manager, Upper Austrian Energy Agency Manager, Ökoenergie-Cluster Vice-President, FEDARENE Austria

After pointing to similarities in the energy mixes of the European Union (EU) and Canada, Christiane Egger outlined the headline target of the EU’s strategy for smart, sustainable, and inclusive growth: 20-20-20. By 2020, the EU plans to change its energy profile by cutting GHG emissions and energy consumption by 20% and increasing renewables by 20%.

The Renewable Energy Directive drives mandatory renewable energy targets for each member state. In addition to renewable energy action plans, biannual reports to the European Commission will show the progress of meeting targets. The 20-20-20 policy is based on the need to combat climate change, ensure the security of energy supply, address the affordability of energy, and create jobs. As an example, Egger pointed to energy savings within the building sector. By incorporating more renewables through following a nearly-zero-energy building concept, the development of bioenergy in the heating sector will increase.

The EU is not homogeneous in its response, Egger said. Latvia, Finland, Sweden, and Denmark have adopted ambitious targets, whereas the United Kingdom, Belgium, and Luxembourg lag behind. Achieving the 2020 targets will mean an investment of more than $100 billion and will



create 2.8 million jobs in the EU. Debate and negotiation have already started on post-20-20-20 goals.

Overall, the renewable energy mix to attain these targets is dominated by biomass, followed by wind, hydro, and solar. But while biomass dominates in heating and cooling systems, it lags behind in electrical production. The overall contribution of biomass is projected to be over 10% of the total final energy consumption. Egger said meeting energy targets is easier if total consumption is reduced through increased energy efficiencies. Currently, Europe imports only 5% of the domestic biomass used for heating and cooling; by 2020 these imports will increase. Wood pellets are the most important biomass imported and are used in large power plants, medium-sized district heating and CHP plants, household bulk pellet systems, and household bagged pellet systems.

In Upper Austria, renewable energy is 34% of total primary energy demand. Of this, 15% is biomass and 15% hydro. Renewable heating is 50% of total heating demand. Egger noted that nearly all the growth in the last 20 years has come from the biomass sector. By 2030, the government intends for all electricity and space heating to come from renewables and energy conservation. Egger said biomass is “good news” because there are so many ways to use it: automatic pellet heating, modern firewood boilers, district energy systems, and large scale CHP. The economic impact is significant—25% of all biomass boilers installed in the European Union are manufactured by Austrian companies. Egger said that by using financial incentives, regulatory measures, and information and training, policies can support an industry that provides jobs and growth: “Change doesn’t start in your wallet; it starts in your head.” In 1999, oil heating was in 36% of all new homes, whereas renewable energy technologies were in about 32%. In 2010, oil heating had disappeared from new construction and renewable heating systems accounted for more than 85%. Moving to renewable energy sources is possible if “we all work together,” Egger said.

3. Global Market and Investment Perspectives SPEAKER Milen Marinov Vice President, CleanTech Investment Banking Group, Jefferies & Company United States

Regarding investor mindset, Milen Marinov said investors ultimately care about growth and margin and are looking at the potential of next-generation bio-companies to provide growth, revenue, and margin. They prefer competitive cost structures that do not depend on government regulation; feedstock security, price, and volatility; “drop-in” capability; innovation that makes economic sense; and fast commercialization. Over the last four years, the uncertainty surrounding global markets has been hard on the bioenergy sector. Investors have learned to expect volatility and bad news in the markets. There is a sustained trend of risk aversion. Investors are pulling money out of riskier enterprises or are sitting on the sidelines and favouring the safety of U.S. Treasury and German bonds. Increasingly, investors see timber as an attractive alternative asset class, Marinov said.

Although bioenergy companies are typically innovative with trailblazing management styles, some are doing better than others. The renewable chemical and fuels initial public offerings (IPO) landscape includes companies using various feedstocks and technologies, including fermentation, gasification, thermochemical and catalytic processes, solar fuels, catalysis, and energy crops. The chain of production flows from biomass feedstock supplies through the intermediary steps of production to final products. Marinov said investors are wondering about monetizing the investments they have made in these companies. For emerging companies to be



able to build access to public and private capital markets, they not only must deliver on milestones and deal with technology but also must engage investors to manage expectations. After negative news surrounding the IPOs of a number of bioenergy companies at the start of 2012, the IPO markets have been almost completely shut for the sector. These “bad apples” in next-generation technologies have spoiled the investment climate, Marinov said. This low number of public companies means that investors must research private firms, which are usually not as well covered in the financial media. Such companies must work hard to attract and educate prospective investors on how their companies are different from those that have dragged the sector down. Fundamentally, the economics of emerging bio-companies must make sense.

Marinov said the companies in conversion technology far outnumber the companies that deal with feedstocks. The key is formulating a “story”—being able to articulate a value-chain approach and a total solution. It is not enough for a company to take a sugar and turn it into a value-added chemical. The company must also answer the questions of how much sugar it needs, where it will find the biomass, what kind of price it will pay, and what is the amount of supply. The disruptive potential of technological breakthroughs in producing biomass, although somewhat less for more traditional cellulosic biomass, means that companies should collaborate with conversion chain technologies to produce the total solution that investors prefer to see.

It is inevitable that the future belongs to renewables—more people means more income and more demand over the long run. Biofuel, green chemicals, biomass energy, and industrial roundwood are all projected to grow. Marinov said many investors are looking at longer time horizons and operate strategically. They realize that the renewables industry is capital-intensive with a longer runway to success. He also said society makes the biggest strides in embracing renewables during times of the largest oil price shocks.

As for natural gas, although its current low price creates challenges, natural gas also creates opportunities for a number of next-generation technologies, creating favourable pricing dynamics for C3 and C4 chemicals. Chemical and consumer companies have become interested in the biomass sector and are willing to invest in larger numbers and with larger amounts of money than ever before. Strategic partnerships within renewable chemicals and biofuels involving more mainstream companies such as Dupont, BASF, Chevron, Shell, and Dow have increased investment. These companies want to be in the forefront of disruption and are interested in diversifying feedstocks as a hedge against the volatility traditionally seen in oil.

4. Industry Perspectives on New and Emerging Markets SPEAKER Eric Bober Director, Strategy, Biorenewables, Nexant Inc. United States

Much of the explosion in biochemical production around the world is happening in new and emerging markets, said Eric Bober. Nexant, a global clean energy and chemicals company that focuses on energy efficiency, the smart grid, and energy and chemicals advice, has worked in many of these markets. Emerging markets such as China, India, Brazil, and Eastern Europe, with their strong populations and projected GDP growth, are attractive. The key drivers include feedstock supply; the desire to be green, environmental, and “a good social citizen”; and profitability. Issues surrounding deployment include proximity to accessible, available, high-quality, and priced-right feedstocks; market access and infrastructure needs; and the social and regulatory aspects of doing business in those markets.



Except for in Brazil, solid biofuel projects play only a small part in emerging markets. However, in the biochemical sector, over 2.5 million tonnes of biochemical production are in place and planned. Bober said biochemicals can, in some cases, be more competitive than traditional chemicals. Plus, biochemicals can meet customer environmental interest in renewables for both primary customers and the consumers of the final goods. He cited for example green PET and polyolefins used in plastic bottles. And as more companies get on board, the more interest there is in biochemicals. This is also fed by rapid technological advancements and the high price and volatile nature of fossil fuel costs. A renewably sourced project can offer more stable prospects. Biotechnologies are quickly being commercialized, and while they may be developed in mature markets, they can be deployed to emerging markets.

However, challenges to growing the emerging sector remain: the entrenchment of the traditional chemical industry; competition from low natural gas prices, especially in markets that deal with biomass composed of C3 and lower carbon; and difficult IPO capital markets. Emerging markets may also need to address social issues, such as relationships with indigenous peoples, nutritional value chains, and different domestic uses for renewables than what the global market requires. Plus, feedstock supply attributes can vary. There are regions where feedstocks are abundant, available, the right kind, and compatible with the technologies and globally desired products. But in other areas, feedstocks may be limited, inaccessible, and expensive to produce. The same is true of the environmental aspect—small, older, less efficient facilities may be more polluting than larger, newer, more efficient ones.

Bober concluded that to help projects become more financially acceptable in the global market, emerging market technologies should be based on solid business plans and evaluated on their own merits.

Session 2 The Future of Fibre MODERATOR Roger Harris Partner, Harris Palmer

1. B.C. Forest Tenure System and Options for Fibre SPEAKER Blair Pigeon Senior Timber Tenures Forester, B.C. Ministry of Forests, Lands and Natural Resource Operations Canada

On B.C.’s Crown lands, forestry is managed through various tenures within management areas, said Blair Pigeon. Once the Chief Forester has determined the allowable annual cut (AAC), the Minister of Forests, Lands and Natural Resource Operations apportions the cut and provides either area- or volume-based tenure rights to harvest. Area-based tenures include tree farm licences, community forest agreements, First Nations woodlot licences, and woodlot licences. Volume-based tenures are managed in timber supply areas and include forest licences, short-term timber sale licences, pulpwood agreements, and various small licences to cut.

In the last 10 years, the number of tenures has risen by 75% for two reasons: first, the need to promptly harvest mountain pine beetle-killed wood as soon as possible; and second, a process of forest reallocation—the redistribution of 20% of the volume from major licensees to First Nations, community forests, woodlots, and B.C. Timber Sales. This increase in licences has



meant increased opportunities. However, in the next 10 years, the AAC will decline due to the beetle-induced timber shortfall, and the number of licences will also decrease.

Fibre can be secured through partnerships with existing tenure holders, fibre supply agreements, roadside chipping and waste removal agreements, the purchase of existing tenures, bidding on tenures, and trading fibre. To address demand for biomass access, new forms of tenure are being developed. The restricted forest licence—a non-replaceable forest licence—was introduced in 2009 and modified in 2012 to include bioenergy and biochemicals and to further support the pellet industry. The Minister can specifically apportion the wood volume to the pellet industry, bioenergy, and biochemical plants.

Another new fibre tenure opportunity being developed, the Fibre Supply Licence to Cut, is intended to provide access to road and landing waste that is unused by the primary harvester. This tenure will address those situations where business-to-business opportunities cannot be fostered. Pigeon noted that although the primary harvesters will have first right of refusal for that wood, they can no longer burn the wood on site.

2. B.C. Interior BioEnergy Fibre Supply: Evolving Impacts & Opportunities—”The Economic Balancing Act”

SPEAKER Jim Girvan Principal, Management Decision and Technology Ltd. Canada

Jim Girvan addressed issues of woody biomass supply. As of 2011, roughly 14 times the British Columbia Interior’s annual cut has been beetle-killed, affecting the mid-term timber supply. To cope with the large amount of dead wood, the government raised the AAC. However, due to global market slowdowns, the amount of actual harvest decreased. In 2009, the Interior harvest was about half of what the industry was capable of utilizing. Hence, much dead timber remained standing. This large amount of biomass has resulted in a significant increase in bioenergy production and fibre consumption. Girvan noted, however, that this consumption is increasing at the same time as the supply from sawmills is decreasing. Due to the beetle-induced reduction in sawlog supply and the global economic recession, 22 Interior sawmills—the source of about 50% of the residual fibre currently being consumed—have closed. In addition, significant consumption of pulp log fibre occurs in the area’s 10 pulp mills, and much sawdust and shavings fibre goes to pellet and board plants, as well as to two large sawdust pulping mills.

As fibre consumption increases and sawmill production decreases, the biomass sector will increasingly rely on post-harvest waste and curtailment. While hog fuel is currently in reasonable balance, the volume of potential biomass projects being considered will create a significant gap in the availability of fibre from sawmills in the mid-term. Although a significant amount of wood will be available over the next 10 years, eventually, as the AAC comes down and no downstream fibre consumers curtail, virtually all of this fibre will be needed to support operations, raising concerns about sustainability. As for the undercut, this supply of fibre will be drawn down to support pulp mills and pellet plants.

Girvan said fibre costs to the consumer are also important. Residuals and waste wood are significantly cheaper to procure than standing timber.

In summary, Girvan stressed the following points:



• Virtually all lower-cost sawmill residual fibre supply is committed, and competition will push prices higher.

• Available fibre supply reflects roadside residual fibre, non-sawlogs and AAC undercut (standing dead timber). • There is short-term availability only. • Current consumers will require annually generated volumes as AAC falls.

• The cost of fibre required to support bioenergy projects is forecasted to rise with growing competition. • Existing consumers will fight to retain supply. • New consumers will force market prices up.

Girvan listed the following keys to success for new bioenergy projects: • The ability to pay will be key to securing supply.

• Ensure sustainable supply of fibre to support financing. • Partner with those who control the fibre to ensure supply.

For further information, Girvan recommended the report The B.C. Mountain Pine Beetle: Evolving Impacts & Opportunities, available at Woodmarkets.com.

3. Resolving Wildfire Risk in British Columbia through the Development of a Community-Based BioEnergy Sector

SPEAKER Robert Gray Fire Ecologist Principal, RW Gray Consulting

Robert Gray said the bioenergy sector can help to economically reduce excess forest density, which is an artifact of past fire management practices and utilization standards, and a major stressor of B.C.’s forest ecosystem health. Exacerbating the situation is climate change. Decreasing precipitation and increasing temperatures benefit forest pests and diseases, increasing forest mortality. Gray said social, ecological, and economic consequences of density-fuelled wildfires include higher insurance claims, threats to power infrastructure and supply, threats to homes and businesses, threats to domestic water supplies, watershed damage, impacts on the treasury and taxpayers, and potential wildfire impacts on the mid-term timber supply.

Opportunities for wildfire-preventative biomass reduction depend on scale, Gray said. Individual dwelling and district energy systems use very little feedstock on an annual basis, whereas the industrial-sized bioenergy projects use large quantities. By combining the two scales, a significant reduction in fuels can be achieved around communities. BioEnergy industries allow rural communities to economically and quickly treat hazardous fuels, decrease energy costs for municipal buildings, decrease carbon tax payments, increase employment, increase the municipal tax base, and diversify the local and regional economies.

The perceived lack of biomass supply is a challenge for biofuel harvests, yet different inventories can provide different answers regarding the profile of the fibre. In southeastern British Columbia, the remote sensing–based Vegetation Resources Inventory estimates 14% volume of unmerchantable timber; ground-based inventories suggest 35%; and actual amounts recovered in harvest operations come in at 60%. If a company relies on both dimensional



lumber and waste wood-based electricity, unmerchantable stands become uneconomical. Adding a high-value-added product such as pellets into the mix improves the bottom line.

Another problem is the lack of integrated harvest decision support tools that quickly and economically assess the feasibility of these marginal stands. As well, the concept of the megaproject must be replaced by a network of interconnected nodes along established transportation corridors, which will benefit more communities with smaller-scale facilities and better economics. Other business models, such as the boom and bust model—moving in, harvesting forest density for bioenergy plants, and then moving on—should also be considered.

Unfortunately, using bioenergy to solve ecosystem restoration and wild land–urban interface issues is often hampered by the need to provide long-term “sustainable” forestry as per forest certification standards. Gray said, “[BioEnergy] is the means to an end—the ‘end’ being healthy, resilient, and sustainable ecosystems and rural communities.”

4. Forest Products Sector View on Fibre and BioEnergy SPEAKER Mark Feldinger Senior Vice President, Forestry, Environment and Energy, Canfor Corporation Canada

Mark Feldinger presented Canfor’s take on the economics of biomass. Canfor is Canada’s larger producer of dimension lumber and is a majority owner of Canfor Pulp Products. The company uses biomass from its mills in the bark-fired thermal oil and steam energy systems that power its kilns, shaving-fired thermal oil energy systems, combined heat and power systems, whitewood pellets, and non-energy uses.

Feldinger said the challenges around tenures and sourcing are economic. If the economic return exists, the processes will be supported and the materials will be utilized. Risk/reward decisions must be supported by looking at all the variables. The sawmill residual biomass is largely fully utilized. Other major supplies included roadside debris grinding where transportation cycle times are critical, beetle-killed juvenile stands or remote stands with limited or cost-prohibitive sawlog volumes, and purposive direct harvesting (which is usually destined for the pulp mills due the higher value of roundwood chips.) Sawmill residuals are usually cheapest, followed by roadside residuals, and then biomass harvesting. Feldinger said the costs of various sources of fibre will increase as operations move to less accessible areas. The costs associated with purposive harvesting—planning, road construction, inefficient harvesting due to piece size and number, and reforestation—can make biomass extraction prohibitively expensive.

Canfor sees short-term activity in roadside debris biomass for the next five years due to underutilization. In the longer term, a stable mid-term supply situation is required before significant capital investment can occur. Unfortunately, the dispersed nature of beetle-killed timber, its often juvenile stand structure, and remote locations result in significant extraction costs. Plus, stand deterioration adds to the challenges and costs of harvesting. These factors are severe hurdles to the economic solutions of using this wood.

However, as Feldinger pointed out, “You need to have a product to pay the piper.” Consequently, the sector is developing higher-value products. Solid fuel densification involving torrefaction can lead to energy density freight savings and avoidance of capital expenditures. Liquid fuels such as syngas and others are feeding a global, hungry, and expanding transportation market. Plus, biochemical and nano-technology applications are operating in lieu of, or associated with, pulp production.



Feldinger added that in terms of cogeneration, investments are tied to BC Hydro pricing and supply policies and the growing public disdain for the cost of incremental electricity. Politically, the appetite for pursuing such projects is diminishing, which leads to uncertainty and thus deflects potential investment. These challenges are reinforced by the current low price of natural gas, another hurdle to investment.

5. Biomass Outlook and Use for BioEnergy Applications SPEAKER Mark Ryan Research Manager, Forest Operations, FPInnovations Canada

Mark Ryan outlined the sources, drivers, and constraints of forest-origin biomass, and covered some of the biomass and feedstock supply assessments conducted by FPInnovations in B.C.’s Interior. Currently sources include harvest residues, under-utilized standing trees, sort-yard and chipping terminal debris, burnt and insect-killed stems, early thinnings and FireSmart treatments, non-productive stands, stump wood, and energy plantations. Drivers include the availability of high volumes, the prospect of new business opportunities and employment, the offset of fixed harvesting costs when integrating operations with traditional harvesting, the improvement of forest health by removing fire danger, offset reforestation activity costs, and the production of new revenue streams. Constraints include increased complexity of the supply chain, multiple locations of biomass at various sizes, numerous suppliers with different sizes of operations, the current linkage with sequence and dispersion of conventional harvest and its susceptibility to fibre downfall, increased exposure to seasonal variability affecting quality and volume, greater regulatory requirements, and ownership issues.

Ryan stressed that supply costs are often the forgotten component of bioenergy networks. Feedstocks represent more than 50% of operational costs. In purposive harvesting, costs rise to 75%. FPInnovations modeled the operational and tactical planning platform for biomass supply and costs by integrating conventional products and silviculture operations. In validation trials—on grinding residues from beetle-killed pine stands—roadside biomass recovery costs included not only grinding and chipping costs but also transportation costs. However, the biomass costs of incidental trees or small timber stands are higher due to the costs of full harvest activities.

Ten-year biomass supply assessments done in five Interior timber supply areas mapped areas according to biomass costs. At $60 per oven dry tonne (odt) and below, the economics work for using residues for co-heat and power or pellet stock. However there is a huge amount of biomass on the landscape above $60/odt—a function of distance, accessibility, low bulk fibre density, and, usually, high moisture content. Ryan pointed out some of the sensitivities of this costing: working time, fuel price, grinder efficiency, road speeds, and truck fuel efficiency. He said if the fuel price hits $2 per litre, biomass volume reduces to 57%. In the Burns Lake timber supply area, the projected yearly roundwood and biomass harvests show a dramatic fall-down in merchantable timber that results in an equally dramatic drop in biomass supply—a function of relying on biomass residues.

Bioproduct opportunities will modify the way forests are viewed and managed, Ryan said, offering the following conclusions:

• Integration and cooperation are key requirements for all players. • Heat, CHP, and pellet feedstock opportunities exist in the short term.



• The lowest-cost opportunities are roadside residues. • Transportation distance can be costly. • Harvesting of incidental dead pine, stands with low merchantable volume, or FireSmart

thinning are expensive but could be beneficial. • The sector must find methods of economically harvesting stands. Ryan mentioned the fibre supply management plan of the Kwadacha First Nation in Fort Ware, a community surrounded by beetle-killed timber. This project, done in conjunction with the B.C. BioEnergy Network, assessed the fibre supply from FireSmart treatments for a small co-heat and power facility. Because there is no active harvesting in the area, the biomass must come from purposive harvesting.

Discussion With respect to revenue streams, a participant asked what government can do regarding BC Hydro pricing policies to open up economically unfeasible tracts of biomass.

Girvan said B.C. has a large amount of cheap electricity. The end product price must allow producers to pay for the raw material to be able to optimize the final product. However, projects such as the Site C dam can overshadow opportunities for residual biomass-produced electricity. He said it ultimately comes down to social trade-offs and values.

Gray added, “The interesting irony is that the very threat to the infrastructure is this biomass material we cannot access because of pricing.”

Feldinger said biomass opportunities exist in non-grid rural communities that heat with diesel generators, and these opportunities are challenging BC Hydro. At larger scales, the question is whether BC Hydro is willing to take some economic fuel risks. Currently it does not seem so, and this is the biggest bottleneck to future projects.

In smaller, rural community projects, small heat and power systems are often the Holy Grail, Ryan said, yet the systems he saw in Finland and Denmark are still working to solve the gas cleanup problems. Questioning whether these systems are ready for remote communities in B.C., Ryan said communities should look at heat first and later integrate clean power technologies as they become a proven reality.

A participant asked whether any analysis has been done regarding the contribution to the fibre basket from municipal waste streams. For example, can the wood aspect of this waste be collected and delivered to biomass facilities?

Feldinger said municipal waste streams are opportunities—from methane capture to recycling and extraction—that have been proven worldwide. Canfor has not looked at this specifically.

Girvan said that on the coast there is a significant ongoing utilization of wood from the waste stream to augment the sawmill residual wood. Companies like Cloverdale Fuel ship two to three barges a week to power boilers and pulp mills. He said all the mills on the coast are increasing capacity.

A participant asked the speakers whether, given mid-term fibre availability, they would recommend a government policy for a single-pass harvesting for the lumber and bioenergy uses or something else to deal with the economics.



Feldinger replied that a special legislative committee is looking at land base constraints with respect to the mid-term timber supply. One of the constraints is the concept of what is needed for seral stages on the landscape. This is an opportunity but should be looked at in the context of what it means for other resources: water quality, wildlife habitat, and visual aesthetics. This will be a value decision driven by more than economics.

The extent of beetle-killed timber affects the mid-timber supply, said Girvan. He set out a series of questions that must be considered:

• How fast can we harvest? • Do we retain other resource values? • Once that wood is gone, can we go into places set aside from harvesting? Girvan said it comes down to social choices and how quickly, or slowly, society will have to adapt to the new forest-based economy. He wondered, of the industries that exist today, who will survive, or whether somebody new will come in to utilize the fibre.

A participant asked how much the government has used the two newer bioenergy-focused licences.

Pigeon said the restricted eligibility forest licences, which have been around since 2009, were first set up for a number of different processing facilities, including secondary manufacturers; pellets, grinders, and wood chippers; and pulp and paper. The licences are currently being expanded to include bioenergy and biochemical opportunities, and regulations should be in place soon. This is the case for the road and landing type tenures as well. In the southern Interior, some five restricted eligibility forest licences have been awarded recently and have allowed for the regulations to be test-driven. As for the road and landing type tenures, these are new and are waiting for Cabinet approval. Both of these licences will probably be more common in the future.

Luncheon Keynote Presentation Global Biomass Value Optimization: Next-Generation Alternative Fuels INTRODUCTION Greg Stewart President, Sinclar Group Forest Products

SPEAKER Andrew Soare Analyst, Lux Research Inc. United States

Greg Stewart commented on the importance of partnerships in embracing bioenergy. The Sinclar Group, which has been installing bioenergy systems in its mills since 1985, is a 50% partner of Premium Pellet in Vanderhoof, B.C., and is involved with Nechako Green Energy. Other projects and partnerships include supplying hog fuel to the University of Northern British Columbia’s Nexterra gasification system and Prince George’s district energy system.

Andrew Soare described Lux Research, an independent global research and advisory firm providing over 150 clients with strategic advice and primary research on new business opportunities derived from science-based innovation and emerging technologies. Alternative fuels and bio-based materials and chemicals are just two of Lux’s 15 coverage areas. Feedstocks,



including food crops, woody biomass, agricultural residues, and algae, lead to different conversion processes, including synthetic biology, gasification, or high-heat, high-pressure thermochemical reactions, which in turn lead to fuel production, such as ethanol, bio-coal, gasoline, hydrogen, and natural gas. This value chain is changing, Soare said. As technology developers work on new conversion processes to monetize further value from feedstocks, the next-generation alternative fuel feedstocks are coming online.

BioEnergy technologies use just a small amount of available biomass today, but if they expand, feedstock will become a local and global constraint, Soare said, adding that currently biofuel is about 2% of petroleum use. While first-generation feedstocks—corn, cane sugar, and vegetable oils—are commercially available, easy to convert, and have existing supply chains, their total production does not compensate for current levels of petroleum production. Thus tapping into agricultural and forestry waste is vital.

Challenges exist in lowering the costs of non-food cellulosic materials and waste feedstocks: high capital costs, heterogeneous materials, and difficulties in conversion. For instance, making money from a process such as torrefaction depends on the right mix of economics and the production of an energy-dense product comparable to coal. Some companies are small-scale operations, others are large-scale; still others are both. For example, Renewable Fuel Technologies bases its torrefaction business on using mobile equipment to access and process forest and agricultural waste, whereas Topell Energy operates on a larger scale, building facilities that are based on demand.

Soare said that in the United States cellulosic fuel production is expected to rise over the next 10 years due to the Renewable Fuel Standard. However, this mandated nature of biofuels does not preclude company failures. Not all technologies are economical, and partnerships are essential to mitigate risk. Many large corporations, such as BP, GS Caltex, and BASF, are aligning with start-up companies to unlock sugars from cellulosic feedstocks and are developing new processes, such as enzymatic, catalytic, dilute acid, supercritical fluid, concentrated acid, and steam, to convert feedstocks into higher-value chemicals. In addition, other biofuel processes such as pyrolysis and gasification are being used to convert wood into oils and syngas. For example, INEOS Bio is building its first cellulosic ethanol plant in Florida that will use a proprietary organism to convert the syngas to ethanol. Waste asset owners such as Waste Management are also on board, aligning themselves with conversion companies to monetize waste. Interestingly, non-energy companies also see opportunities. Two steel mills in China, Baosteel and Shougang, are partnering with conversion companies to convert their flue gas into ethanol.

Tapping into outside bioenergy expertise and technology is key to entering the market. These operations operate across a landscape of networked company partnerships—a complex network of key biological developers and corporations such as GE, NRG, DSM, Total, Kior, Shell, and others. Through such partnerships, large companies take a portfolio approach to developing new technologies and unlocking the value of biomass products. The majority of these new partnerships still focus on research and development. Soare said that while it is expected that as an industry matures it will commercialize, the reality is that the bioenergy sector is still very much science-oriented. However, he predicted that the range of biomass conversion technologies with varying risk/reward technologies will scale up. As the industry moves to new feedstocks, new alliances are forming and growing the industry, providing big opportunities. Although investors are leery of being on the forefront, initial proof of commercial profitability will undoubtedly attract future investors.



Session 3 Sustainability: The International Experience MODERATOR David Moffat Managing Director, Business Development, Pacific Carbon Trust Canada

David Moffat said this session would tackle two critical issues: the sustainability of bioenergy and how to monetize that sustainability through carbon markets. The Pacific Carbon Trust (PCT) is a B.C. Crown corporation with two mandates: to make the B.C. government and the private sector carbon neutral and to grow the carbon economy. In less than two years, British Columbia has become the third-largest carbon market in North America. PCT helps companies to fuel switch to biomass from coal. PCT’s activities and projects include a methane gas capture system in the Foothills Boulevard Regional Landfill near Prince George and a carbon offset purchasing program related to bio-coal.

“We recognize the potential of bio-coal to add further value and jobs from B.C.’s forests and to reduce emissions,” Moffat said. “We aim to be a source of bio-coal for our European buyers and have set 20% of our offset portfolio in future years to purchase offsets related to bio-coal.”

1. Opportunities and Options for B.C. in the Global Carbon Market SPEAKER Phil Cull Director of Sourcing, Offsetters Canada

Offsetters provides a full suite of carbon management services. Phil Cull said carbon markets are now a significant piece of international markets, $176 billion in 2011. Of this, the majority is made up of the EU Emissions Trading System (ETS). Cull reviewed the changes in price of EU Allowances—the trading price of one tonne of carbon under the ETS—since 2008, noting that it stabilized for a second time “at a very low level, and that hasn’t been great news.”

A number of developments suggest strong EU support for a price on carbon, such as the inclusion of the airlines into the EU ETS in 2012, the extension of Kyoto by the EU, and the contemplation of policy intervention by the EU. However, considerable uncertainty remains, including the increased risk profile from the new stipulation that offsets be developed only in least developed countries.

In Alberta, Cull said the cap and trade system is growing rapidly, and the demand for offsets will grow. BioEnergy is an eligible project type for offsets and also qualifies under the renewable energy call of the Climate Change and Emissions Management Corporation. Alberta Environment has recently strengthened auditing requirements and disallowed historical crediting. It is looking at increasing targets and raising the price ceiling for offsets. This will make offsets more valuable.

In British Columbia, the provincial government purchases 700,000–1,000,000 tonnes of offsets per year, and municipalities participate under the voluntary Climate Action Charter. The government suggested it will commit to cap and trade and the Western Climate Initiative (WCI) by 2015. BioEnergy is accepted as a project type, so the government will purchase from these projects, thereby providing additional incentive. Fuel-switching projects have occurred in a number of scenarios: the greenhouse sector, residual waste from sawmills, and coal displacement in cement manufacture.



Significant progress has been made on the development of a North American carbon market with the WCI, but a number of the previously committed jurisdictions have delayed implementation. Quebec and California are starting January 1, 2013, and a price for carbon is developing. The cap starts in 2013, affecting large facilities (greater than 25,000 tonnes of CO2) and the electricity sector. In 2015 the program will cover fuel suppliers—transportation, residential, and commercial—through 2020.

2. European Union Perspectives and Progress on Sustainability SPEAKER Jean-Marc Jossart Secretary General, AEBIOM–European Biomass Association Belgium

Jean-Marc Jossart said the AEBIOM–European Biomass Association represents and promotes the interests of bioenergy stakeholders, including 32 national associations and about 80 companies. Its location in the Renewable Energy House, with sectors such as wind and solar, provides “synergy and visibility to the politicians.”

The European Union has passed energy and climate legislation that mandates that 20% of energy will come from renewables by 2020. The EU Renewables Directive has specifics for each sector: for example, 10% of the transport sector. Each country has its own national action plan with ambitious objectives, targets, and monitoring plans. Of the renewable goal, just over half will be bioenergy as heat, fuels, and electricity, and of this total, 62% will be heat. Jossart said member states intend to double bioelectricity production in the coming 10 years, which will result in a large increase in demand for pellets. Currently the United States, followed by Canada and Russia, is the leader in pellet exports to the European Union.

Sustainability is a key focus of discussions in this context of change. A number of initiatives are ongoing, including mandatory criteria for transportation biofuels and criteria for solid and gaseous biomass for heat and electricity. Jossart said controversies exist regarding legislation on sustainability criteria among member states, industry, and non-governmental organizations (NGOs). He added that AEBIOM argues for mandatory sustainability criteria at the large scale because “the bioenergy sector needs credibility, to gain public confidence and policy support, increase imports, and for financial support schemes.”

Various certification schemes are emerging, such as the Green Gold Label from Germany and ENplus. The latter is coordinated by the European Pellet Council, which represents pellet producers to the EU. It is being implemented by AEBIOM. Jossart said ENplus has been used only in the small-scale heating market, but industrial grade and sustainability are under discussion, and interest is growing in many countries. The Initiative Wood Pellet Buyers have nine sustainability principles including air and water quality, biodiversity, and carbon stock. AEBIOM is currently collaborating with them on potential criteria for ENplus.

“Carbon debt is really a big issue now in Europe,” said Jossart. NGOs are arguing that biomass emits CO2 instantly when it is burned, and it takes time before the same quantity of carbon is taken over by new biomass growth. Biomass is currently considered a zero-emission fuel, but this may change. People may be paid to leave carbon in standing forests. Jossart concluded, “In reality, good management of the forest can simultaneously produce much biomass and increase the carbon stock on the land. That is what is happening in Europe.”



3. BioEnergy: Carbon Neutral or Not? SPEAKER Dr. Elaine Oneil Executive Director, Consortium for Research on Renewable Industrial Materials United States

Dr. Elaine Oneil said the topic of whether forests are carbon-neutral sources of energy is a controversial one, leading the United States Environmental Protection Agency to establish a scientific advisory panel to examine the situation. Currently emissions from biomass are considered carbon neutral, and a ruling that changes this would result in chaos at the federal policy level.

Dr. Oneil set the context for the recent work of the Consortium for Research on Renewable Industrial Materials (CORRIM), noting that the Energy Independence and Security Act of 2007 (EISA) mandates aggressive renewable fuel targets with enormous dependence on cellulosic biofuels for 2022. In addition, EISA requires a full life-cycle inventory and analysis (LCIA), and fuels must meet specific targets with regard to carbon dioxide reduction efficiency relative to fossil fuel. CORRIM research publications are available on their website at www.corrim.org.

CORRIM LCIA work demonstrates a hierarchy of total energy use and GHG emissions over the life cycle and across a range of products. In order to compare the relative GHGs of wood products and fuels to comparable non-wood products, CORRIM developed a carbon emission reduction metric (C:C ratio), which varies by the feedstock type, source location, and what it displaces. Hierarchy data exist for the range of bioenergy products on the market. Results indicate that solid wood applications have a greater fossil fuel displacement and a greater GHG reduction potential than using wood for fuel. However, many parts of the tree are currently underutilized and can contribute substantially to bioenergy needs. Linking LCIA data to the land where the feedstock is produced shows the range and substantial benefits that accrue from using wood products to displace fossil fuel–intensive products and fuels.

Dr. Oneil said, “The bottom line is you can warehouse carbon in the forest, but it doesn’t add up to the kinds of benefits from using forests to offset fossil fuels. But this requires sustainable forest management where forest removals are set no higher than growth.” Dr. Oneil concluded that “Biofuel production is not as carbon beneficial as solid wood products, but it can use more of the low-value wood and can also provide for energy independence goals and rural development. The biggest limiting factor is economic: the low cost of fossil fuels makes the development of biofuels less favourable than it could otherwise be.”

Discussion A participant asked whether there is a short answer to the carbon debt question.

Dr. Oneil said no and noted the need for research to clarify under what conditions forest practices are sustainable. Jossart agreed, saying, “There won’t be a short discussion with NGOs . . . They have other priorities; they don’t care about energy—they just care about biodiversity.”

A participant asked whether an LCIA had been done on biochar. It is “on the to-do list,” Dr. Oneil replied.



Session 4 Outlook Bioeconomy 1. B.C. Bioeconomy:

Opportunities and Challenges SPEAKER Michael Weedon Executive Director, B.C. BioEnergy Network Canada

In the low fossil fuel price environment experienced most of this century, save for the last 10 years, Canada’s abundant biomass resources have largely been wasted. However, the price of oil has increased rapidly in the last 20 years; coal is at a crisis point in the United States; and electricity costs have increased.

Energy return on energy invested (EROI) is the ratio of energy out over energy in. Weedon said, “EROI is an important concept as we try to understand the competitive factors of bioenergy and fossil fuel.” The cost in energy to get energy has changed dramatically since 1930 when the EROI was 100, to the oil sands, which is about 6, to the Enbridge Northern Gateway project, which is estimated to be 2.4.

New technologies, including biorefining, will revolutionize the energy industry. “The game is changing,” Weedon said. “Replanting our forests so we have a truly sustainable resource will be essential.”

Weedon reviewed seven opportunities for bioenergy development. The one with the greatest immediate potential is the utilization of existing waste streams, including crops, wood residue, and municipal waste. Nanaimo, B.C., is using landfill gas to create energy, Weedon said. In B.C. a key opportunity is the promotion of torrefied fuels to replace coal. Torrefaction is the processing of wood at elevated temperatures in the absence of oxygen to increase energy density and reduce logistics costs.

New pathways for high-value fossil fuel replacement applications must be promoted, Weedon said. Projects to produce and distribute thermochemical clean syngas and transportation fuel demonstration projects are cutting-edge. For example, International Composting Corporation is advancing its technology to use compost to make gas into liquid biodiesel transportation fuel.

Weedon highlighted other steps industry and supporters must take:

• Promote biochemical production demonstration projects for biomethane, ethanol, biodiesel, and high-value chemicals, ideal for the pulp and paper industry.

• Promote low-cost drying best practices and technologies to enhance feedstock supply and reduce costs; this holds potential to reduce costs for B.C. forestry, utility, industry and municipalities.

• Support CHP woody biomass systems to replace diesel in off-grid communities, such as First Nations communities.

• Encourage an integrated resource mindset in forestry, municipalities, and agriculture to improve energy utilization, reduce costs and further develop the bioeconomy.



2. Sweden Story: Evolution of a Bioeconomy Leader

SPEAKER Bengt-Erik Lofgren President, AFAB Sweden

Sweden is a country without fossil fuel resources, yet its GDP is on par with Canada’s, said Bengt-Erik Lofgren. It is on the forefront of renewable energy; for example, the carbon footprint is on every fast food meal. “Chris [Egger] said this morning everything starts in the mind, so in the Swedish mind we know we are not just living on Earth, we are also part of it,” said Lofgren. He added that if everyone lived as in North America we would need six planet earths. This does not mean “we are thrown back to the 1800s.”

In 1991, Sweden implemented a carbon tax, which has been raised three times. “We had brave politicians. Everyone said you’re going to kill Swedish industry,” said Lofgren. Currently the tax is about $150–$163 per tonne compared to $25 per tonne in British Columbia.

“Sweden has been forced to sacrifice,” Lofgren said. Swedish GDP increased by 48% while CO2 emissions went down 30%. “We make business being green.” The use of biomass increased by 80%, and in 2010 32% of total energy used was biomass. Other results include the following:

• 35,000 jobs were created in mainly rural areas. • $18.2 billion stays in local economies. • The export industry is stimulated. • Economic stability is increased. In the 1980s, there was fighting between the pulp, paper or wood industry, and green energy, but “the enemies of yesterday are friends of today,” Lofgren said. As of 2011, 40% of new cars are powered by fuels such as biomethane and biodiesel. A plant is producing compressed and liquid biogas from vegetable waste products from the grain trade and food production; another is producing fuel through gasification of black liquor from pulp mills.

In the heating sector, pellets are much cheaper than heating oil and electrical heat. Sweden’s pellet use is over 10% of the world market. Pellets are used in many ways—residentially, and in CHP plants of various sizes. Agri-waste is used to form pellets for energy use, avoiding the landfill and previous methane leakage.

The changes in Sweden have involved few direct subsidies to the renewables industries. Lofgren said, “We have let all of the renewables be competitors with each other.” He concluded that given the EU’s ambitious energy goals for 2020, small countries like Sweden can show that “it can be profitable to be green.”

3. Trees: New Zealand’s Future Oil Wells? SPEAKER Trevor Stuthridge General Manager, Sustainable Design, Scion New Zealand

Dr. Trevor Stuthridge said Scion, a Crown Research Institute in New Zealand, is similar in scope and mandate to Canada’s FPInnovations. Dr. Stuthridge highlighted New Zealand’s potential to be a leading global participant in the new bioeconomy. New Zealand extracts



3.1 million m3/yr of fossil oil while it grows 22 million m3/yr of wood. Dr. Stuthridge said the country’s Forest Stewardship Council–certified plantation forests store 32 million tonnes of carbon, which readily offsets the 15 million tonnes per year of GHGs it generates.

Two national-level strategies support bioeconomy opportunities. The Forest and Wood Products Industry Strategic Plan seeks to increase annual exports from NZ$5 billion to NZ$12 billion through greater production of engineered wood products, biofuels and bio-based co-products. The New Zealand BioEnergy Strategy seeks to provide 25% of the country’s energy needs, including 30% of transportation fuels, by 2040.

Scion leads New Zealand’s largest bioenergy R&D program, New Zealand Lignocellulosic Biofuel Initiative. Its aim is to convert softwoods into high-quality sugars and lignin for biofuels and biochemical production. “Adopt and adapt” and “virtual scale-up” philosophies are used in the program in a structured approach. Comprehensive techno-economic analyses, sophisticated GIS wood supply models, and exergy and life-cycle analyses are used to optimize processes. “Outcomes suggest New Zealand may be able to generate wood-derived sugars at a cost comparable to that from sugarcane,” said Dr. Stuthridge. “Use of New Zealand’s abundant geothermal energy resource, located in its forests, could greatly improve process economics.”

Scion is also looking beyond biofuels. Examples given included wood fibre–based plastic composites to replace fibreglass and metal components and microbial production of biopolymers from pulp waste waters. A proprietary Waste 2 Gold technology could eliminate organic waste landfilling by conversion to biomethane, commodity acetic acid, and fertilizers.

As a reality check, Dr. Stuthridge said replacing 60% of New Zealand’s transportation fuels would require new forest plantings equivalent to the current estate and investment in infrastructure for 24 new large-scale pulp and paper mills.

Dr. Stuthridge said, “56% of our timber goes offshore as unprocessed logs. Higher-value-added products, such as smart packaging, would encourage more on-shore processing, reduce dependence on fossil oils, and potentially increase our wood-based export revenues fivefold. It’s an exciting bioeconomy vision.”

4. Global Market Pulp Industry: Implications of BioEnergy/Bioproducts on Pulp Industry Cost Structure

SPEAKER Gordon Floe Senior Consultant, Pöyry Canada

Gordon Floe showed a graph of the cost of supply curve for bleach softwood kraft pulp (BSKP). Mills produce several grades of BSKP each, with somewhat different prices. Floe pointed out that where the demand line intersects the supply line is where the price should be, theoretically.

Floe said a cost modelling process was conducted with two categories: technical and economic. Technical analyses had mill (mill scale, integration, energy balance and manning) and machine components (capacity, technical age, and furnish). Economic analyses had regional components (unit prices, exchange rates, location and delivery, productivity, and investment level). These components were combined to examine the cost structure of pulp mills. Data generated were then used to generate cost and supply curves that estimate how a mill should perform given a range of parameters. Actual costs may vary, for example, if there has been down time.



Referring to the ambitious EU energy targets mentioned by other speakers, Floe said that several years ago Pöyry assessed the impact on the pulp sector of support programs, specifically REN subsidies. The model generated the cumulative cost curve for market BSKP producers of six selected countries and positioning of the representative mills in it with and without REN subsidies. The result was that incentives lower the overall cost curve in regions where they are provided. A lowered cost curve changes the position of the marginal supplier and would have an impact on revenues generated by the mill.

Floe said he also examined cost competitiveness in Canadian BSKP and found the exchange rates have a significant impact on the positioning of the cost curves. Product is “born in Canadian dollars, but the selling price is in U.S. dollars or Euros. The effect is to move the mill up the curve.”

Pöyry modelled the scenario of mills selling 25% of generated power to grid at $100/MWh and buying back at the local grid rate. The impact was a lowering of the overall curve, which makes the mill more competitive with respect to other generations.

A forest biorefinery can utilize incoming biomass and other raw materials effectively for simultaneous production of fibres (paper and market pulp and sawn wood), chemicals, and energy (electricity or fuels). This integrated production increases the fibre paying capability (FPC) where FPC is the inverse of the cost curve: mill net selling price less conversion costs. Specifically, the sale of bioenergy by-products can lower mill conversion costs and increase FPC. The key is to understand the FPC of various potential products that can be made from fibre in order to make strategic decisions, Floe concluded.

Discussion A participant asked Lofgren how the Swedish government overcame the pushback when it introduced its policies.

Lofgren said Swedish politicians of1991 are heroes today. Political decisions were necessary because if the polluters do not pay for the full cost, then bioenergy can never compete with coal. Politicians want to be re-elected. They used the polluters-pay principle and turned it around to ask why taxpaying citizens should have to pay for the polluters’ pollution. The policy began with a low level of carbon tax. Newer politicians then understood the need and did not reverse it. “In British Columbia you have all the toys. . . . You can look at Sweden and see how it turned out,” Lofgren said.

Stuthridge said, “We don’t have the toys. New Zealand is very much a market-driven government. . . . In many cases we watch internationally to see what works,” for example, seeing what the European Union is doing with the airlines.



Concurrent Session 1 Advancements in Municipal and Community Energy MODERATOR David Dubois Green Heat Initiative

David Dubois said Green Heat Initiative works with communities to facilitate the installation of green heat systems, raise awareness about heating with biomass, and help develop the bioenergy heating industry in British Columbia. The environmental drivers of district energy in B.C. are GHG reductions, fuel efficiency and reduction, and fossil fuel reduction. The main economic driver is energy cost savings, along with economic, resource, and business development. Rural communities have higher energy costs than urban areas, which have higher emissions, such as particulates.

1. What Makes a Good District Energy Project SPEAKER Pernille Overbye Market Manager, Rambøll Denmark

Pernille Overbye said Denmark is a small country with a big district energy sector—approximately 450 systems. The government passed the first heat supply law in 1979 stipulating heat planning and later required cogeneration of heat and power.

Very high energy taxes made it easier to compete. The municipality or consumers own the district energy system (DES); the DES is a not-for-profit where all profits become improvements or lower heating charges. In Denmark, “we focus on heat, not on electricity—electricity is almost a by-product of heat production,” Overbye said.

A good DES is well planned and efficient with clear goals and articulated needs. Technical efficiency includes the hydraulic optimization of network design, production, and operation. Important design features should also focus on lowering heat charges and coordination with other services, strive for the lowest supply and return temperatures (maximize delta T), and realize that different types of customers have different heat needs.

Institutional efficiency stems from law-making and social structuring. “You need to encourage competition between fuels [by taxing your] very cheap gas,” Overbye said. Building codes make DES more feasible than electrical or fuel systems. Socio-economic assessment is also needed since one size does not fit all.

Financial efficiency measures include low interest rates and high rates of return where some customers pay more. A stable energy policy as in Denmark is important: obligatory connection ensures payback in the scheme. About 70% of the total cost lies in the network. Installation costs depend on several factors.

In the end “it’s all about money; few of us will pay more just because its green,” said Overbye, offering the following recommendations:

• Design the network and install it as cheaply as possible, but not with cheap products. • Optimize and plan for customers and who connects. • Think about ownership and operation of the model. • Consider that pipe infrastructure is a long term investment; systems repairs should be



doable by local people; and changes in fuel or heat sources are likely over a 50-year period. “We are 40 years ahead of most other countries,” Overbye said. Denmark integrates solar thermal, geothermal, and large-scale heat pumps into heat networks at large scale.

2. Community Biomass Gasification SPEAKER Graeme Bethell CEO, Güssing Renewable Energy North America Canada

Graeme Bethell said Güssing is a small town in the southeast of Austria. In the 1990s it was an agricultural town in crisis with a declining commuter population. After much consideration, Güssing focused on renewable energy to reinvigorate itself. Bethell said, “They realized the biggest cost was fossil energy” from elsewhere, $9 million in the 1990s. Today, local farmers and foresters supply feedstock, and $19 million is recirculating in the town.

Change started with conservation in 1989–90, then a small DES in 1996, then a biomass gasification plant in 2001. Fame brought an EU technology centre, followed by many businesses that recognized the availability of “a lot of cheap heat,” Bethell said. More economic development followed, including biosynthetic natural gas with a methanization plant. The Technical University of Vienna (TUV) has been involved throughout.

Today the town operates on 100% renewable energy and sells electricity back to the national grid. “Global energy costs fluctuate, but Güssing’s stays stable much to the desire of local businesses,” Bethell said.

He highlighted other benefits as well:

• The GHG footprint has greatly decreased since 1990. • More than 50 new companies have opened since 2005. • More than 1,500 new jobs have been created. • The population has almost doubled. • A vibrant ecotourism industry has attracted 30,000 visitors. The Güssing gasification reactor was developed at TUV. It differs fundamentally from other wood gasification procedures. It is the first-ever industrial fast internally circulating fluidized bed gasification system. High-temperature steam is injected into the reactor instead of air. It produces syngas that is hydrogen-rich and low in tar and nitrogen, with a high heating value. This gas is “very easily cleaned up and provided to engines.” Heat, electricity, synthetic natural gas, synthetic diesel, and gasoline fuels all result. Emissions are relatively low.

Bethell also reviewed a number of projects in Güssing and California that would produce a range of bioproducts such as fuels, alcohols, and other chemicals.

Bethell said interested communities need to link with partners, such as research and development institutions and investors, and establish power purchase agreements. The rewards include being “branded as a 21st century–type community.”



3. Building Public Support for BioEnergy: UNBC’s Experience

SPEAKER Rob van Adrichem VP External Relations, University of Northern British Columbia Canada

Six years ago the University of Northern British Columbia (UNBC) decided to use the campus as a model for renewable energy. Rob van Adrichem said the project fit with UNBC’s regional focus, its ambition to be Canada’s green university, and the availability of fuel in the form of wood biomass. Partnerships have been essential; for example, Lakeland Mills continues to provide sawmill residue even after its recent fire.

In the past, “any waste material was burned, with lots of heat wasted to the atmosphere and no value generated,” said van Adrichem. With the gasification system completed in 2011 by Nexterra Systems, syngas is produced and the resultant heat piped into the campus.

The UNBC bioenergy project was selected as the number one campus sustainability project in North America by the Association for the Advancement of Sustainability in Higher Education. UNBC president George Iwama, in a short video, emphasized the linkages between teaching, research involving students at the enhanced forestry laboratory, innovation, and the community in this project. As an example, van Adrichem pointed to a collaboration with a local pellet mill to determine that pellets with different moisture content could be used in the gasification system.

Social media such as YouTube and Facebook reflect public interest in this project, particularly from youth and students. On campus, the story on reduced emissions compared to natural gas was the “most liked” in 2011. This is important, considering the aging workforce, employee shortages, and the need to engage, attract, and retain youth in educational institutions.

In the annual Globe and Mail survey on Canadian universities, students gave A grades to UNBC and two other universities in the environmental category, indicating this was a reason to attend UNBC. These awards are important outside validation for the community. Equally important is “internal belief and commitment. Our bioenergy project would not have been possible without staff, curious faculty, and alumni keen to share,” van Adrichem said.

He concluded that, “Communities, industry and the university share in leadership.”

4. Creating Renewable Heat for Future Generations . . . Today SPEAKER Stephen Bearss Renewable Energy Representative, Fink Machine Canada

Stephen Bearss said Fink Machine has been a distributor for Viessmann-KOB commercial biomass plants for the past 12 years. “The business began when Burkhard Fink was building log homes and using waste fuel to heat his shop, then escalated from there,” said Bearss.

“Our systems take the principles of gasification to create low-emission, high-efficiency burning systems.” Almost 50 systems have been installed in settings such as government, residential, educational, and industrial, including a hospital in Oregon and a First Nation community in Westbank, British Columbia.



Bearss recently did a presentation for the City of Vancouver in which he said biomass can contribute to six of the 10 goals in the draft Greenest City 2020 Action Plan as follows:

• Green Economy Goal 1: Biomass systems bring in investment and operational jobs up and downstream.

• Climate Leaders 2: Biomass is deemed neutral and is carbon-tax exempt. • Green Buildings 3: All buildings on district energy using biomass for space, hot water

and/or process heat now use a carbon-neutral energy by end use. • Zero Waste 5: Land waste can be premium grade fuel since it has a high energy value. • Clean Air 9: The Greater Vancouver Regional District has an air quality bylaw, Bylaw 1087,

that is achievable with European technology. • Food Target 10: Increasing numbers of community gardens and food production in the

urban areas can benefit from a biomass DES that produces a clean ash fertilizer. Fink installed a DES in Enderby, B.C. that was operational in eight months, in December 2011. “Because it’s onsite—it’s our building—our pricing, our cost was cheaper ($550,000). Still, a system of our size doesn’t need to be $3 million or $4 million or $5 million,” Bearss said. Benefits include 400 tonnes of reduction of GHGs annually, sources of fuel from the local area, and a return on investment of 10 years. Customers save 10% to 18% on their utility bill from improved efficiencies and do not have to pay carbon taxes. Currently there are 11 industrial and commercial customers in the system, and there is flexibility to tie more in.

Discussion A participant asked about heat pumps to integrate various resources.

Overbye said for larger-scale systems appropriate scale heat pumps with thermal stores are used in the district heating system—huge tanks that store heat. In other cases where it is not the best option to have DES, “We’ll have heat pumps for individual homes.”

A participant asked about the cost of gasification systems and restrictions related to feedstock quality.

Bethell said the cost varies with plant size. For small plants it is about $5 million/MWh, and unit price declines with economies of scale. Highly saturated feedstock will impact plant efficiency. Twenty percent moisture is ideal for gas. If particle size is fine, “you’ll get carryover of that particle into your flue gas” and it may need to be recycled.

A participant asked about staffing requirements and the need for power engineers for community systems.

Bearss said that qualifications depend on the system. Dubois said it depends on whether the system is steam or hot water. Overbye said keep the system simple and small, alarm it, and have locals service it. At UNBC, van Adrichem said, two more staff were added for the plant operation since the change from natural gas.

A participant asked how communities get the money to do this.

Overbye stressed the unique government-supported situation in Denmark, adding that it would therefore be possible to get a low-interest loan. Pension funds and others see it as a secure investment.



A participant from Austria said models can be private, such as some local farmers joining together to form a company. Once a community knows exactly who will connect, if it is a good project, they will find a financing institute.

Dubois said municipality buy-in is needed at least in leadership, if not ownership.

A participant said Canada tends to be large-scale; the hope is the country will move to different types of projects. In Prince George, projects received some grants because of the large-scale environmental benefits. In the North, other funding may be available, for climate change for example. A variety of angles are possible, including the value of job creation. Leaders or champions can be important—for example, the Mayor of Güssing, and a councillor in Sheffield, England, on a waste incineration plant.

Concurrent Session 2 BioEnergy Deployment Today MODERATOR Pearse Walsh Director, Business Development, B.C. Safety Authority Canada

Pearse Walsh described the B.C. Safety Authority (BCSA), an independent, not-for profit organization charged with administrating and regulating safety standards through the Safety Standards Act. An innovator in regulatory oversight, BCSA takes a systems, risk-based perspective and promotes the safe installation and use of technical equipment through education, permits, and licences. Walsh said safety does not just rely on prescriptive codes, standards, and regulations; clients know best the hazards and risks. For instance, European biomass boilers can now be imported if they meet the essential safety requirements of European Commission directives and European standards. BCSA also uses an alternative safety approach process that aligns safety with technological innovation.

1. Organic Rankine Cycle for Biomass-Fuelled Projects SPEAKERS Kristen Cofrancesco Sales & Business Development Manager, Pratt &Whitney United States

Alan Fitzpatrick President, Nechako Green Energy

Kristen Cofrancesco provided background on Pratt & Whitney Power Systems, a United Technologies company that provides land-based power generation—gas turbines and organic Rankine cycle (ORC) units—and has 30 years of experience as a world leader in ORC biomass applications. Pratt & Whitney has a majority interest in Turboden, an Italian manufacturer of ORC technology and thermal fluid dynamic design. Worldwide, there are over 300 units, mostly in Germany, Italy, and Austria, where interest in renewables and energy prices is high coupled with plentiful biomass and incentives. In British Columbia, the company is involved with the Nechako Green Energy and West Fraser projects.

Cofrancesco summarized the ORC process. Heat transfer thermal oil vaporizes an organic working fluid to create electricity in a closed-loop system. A feed pump delivers organic working fluid to regeneration coils to be initially heated. This fluid moves to the evaporator, where thermal oil further preheats and vaporizes it. This vapour turns the turbine to create



electricity. From there, the vapour moves to the condenser-regenerator. The condensed fluid is then returned to the feed pump to complete the loop. The hot water output can be used for various applications, such as district heating, wood drying, or ambient heat for greenhouses or other buildings. There is also electrical output. Units include electricity-only, standard heat recovery, high-efficiency plants, and combined heat and power (CHP).

Alan Fitzpatrick said that by October 2012, Nechako Group will have the first sawmill in Canada to employ ORC technology, a Turboden 22 CHP unit that allows for future heat or sawdust drying. Fitzpatrick said the company is “not afraid to be first . . . not afraid to be innovative.” He added, “The spirit of innovation is really not about technology; it’s about a way of thinking.”

Although the company is continually looking for efficiencies, opportunities for integration, and ways to make waste streams into revenue streams, it had never considered heat as a waste product. Once it selected the Turboden technology and the technology partner, the Nechako Group negotiated for almost a year with BC Hydro for a power contract.

Fitzpatrick said the forest resource will be transformed from just lumber to lumber, pellets, and energy of one form or another. The company’s goal is to achieve full-cycle resource integration, and it is considering providing assistance to other companies looking at these processes. Fitzpatrick stated, “We really want to get into the energy generation game” and learn about, and look for, expansion opportunities.

Canada is ahead of the United States in installing OCR technologies, Cofrancesco said. Companies are looking at utilizing their waste as fuel to offset internal energy consumption, to sell energy back to the grid, or to use the hot water heat for drying purposes. Pratt &Whitney’s newest customer, West Fraser Timber, is installing two super-high-efficiency Turboden units at its Chetwynd, B.C., site that will generate 6,000 kW each. Cofrancesco said OCR technology can take just about any heat source, including exhaust gases from turbines, steam, or biomass combustion.

2. Putting the Pieces Together: The Biomass to Energy Puzzle—High Efficiency Moisture Reduction

SPEAKER Larry Taylor President and CEO, Altentech Power, Inc. Canada

Larry Taylor reviewed the realities that every business, even biomass densification businesses, must face as they strive for sustainability and profitability. They must carefully, and regularly, examine and review each component of their operations, from raw materials to selling price, to improve efficiency, increase safety, enhance consistency and quality of product, and expand profitability.

Taylor said the demand for fossil fuel alternatives is rising in both existing and emerging markets. On the other hand, capital costs and the general costs of production are also rising, as are energy costs, which have a negative impact on energy-consuming processes such as biomass drying. Taylor cautioned that although the biomass-to-energy industry is still young, it is becoming a highly competitive race needing the right people and right equipment. Companies must ensure that they have up-to-date, cutting-edge technologies that will give the greatest chance of success.



Altentech has developed just such a technology, Taylor said—a vertical vacuum drying system for removing moisture from biomass and other materials. The biomass is tightly controlled as it moves through multiple contact zones that help reduce extreme heat, air turbulence, and explosive particulate. This technology reduces energy consumption, enhances product consistency, reduces operating costs, meets or exceeds emission standards, addresses safety and insurance issues, and provides a return on investment. In the fall of 2011 at the Eagle Valley pellet plant in Princeton, Altentech ran sawdust drying tests on their smallest dryer, the D10, to validate critical performance projections and assumptions. As compared to a triple pass drum dryer, the unit uses 40% less thermal energy and about half the electrical energy, resulting in projected savings of around $200,000 per year. Taylor added that the larger D30 unit consumes less than half the thermal energy, less than half the electricity, and less than half the yearly operating costs, resulting in projected savings of over $700,000. Plus, in terms of particulates, the Altentech system, with its tight control of the biomass, results in emissions of fewer than 50 mg/m3 using only minor filtration. Taylor concluded that Altentech’s biomass drying process brings a more cost-effective and safer technology to the market.

3. Home-Brewed Fuel SPEAKER Mike Jennings President, Northland Chipper Sales Ltd. Canada

Mike Jennings asked, “Why brew your own?” in regard to small-scale, cost-effective, green fuels for small communities. Small communities are often surrounded by energy, often in several forms. Benefits of local energy include reduced costs of transport, improved silviculture, fire suppression, creation and extension of employment, and reduction of the carbon footprint.

To answer the question of “how?” Jennings pointed to the chipping of local biomass by communities. Although a typical tree chipper (drum, disc, and screw styles) can produce tonnes of chips per hour, the chips are not consistent enough for home furnaces. Filters can be applied to the chippers that can break the chips into pieces smaller than matchsticks. The capacity of the chipper should be in the range of one to four tonnes per hour, with a one-inch screen filter that processes six to eight tonnes per hour. However, there is still a cost for drying and storing chips. Jennings suggested using compost fabrics, such as Compostex, that allow the material to dry and breathe. Five hundred square metres of fabric should be able to protect around 70 tonnes of chips.

Jennings described the use of chips for home heating. In a home in Smithers, B.C., 6–8 bone-dry tonnes of chips were required for the winter, with another 11.5 tonnes required for the rest of the year. At 25% moisture content, that amount drops to 8–10 tonnes. He showed an example of an outside hopper that held the equivalent of 30–40 gallons of diesel or about 220 pounds of propane.

Referring to community systems, Jennings pointed to the Kluane First Nation in Burwash Landing, Yukon, which has been making chips for fuel for 17 years to heat the administration, youth and elders’ buildings as well as the business centre, council chambers, and the maintenance and carpentry shop—“all on 33–50 tonnes of home-brewed fuel a year.”

Jennings shared the following comments from the community:

• The community uses 20–30 cords of wood. • It is essential to have a person dedicated to ensuring that the system functions reliably.



• Keep the and chips consistent to avoid feeding problems • Use the chipper for brush clearing and make it available to be rented out. Jennings said the community feels that the system works and “keeps the dollars local instead of paying for fuel.” He thanked the community for its participation and concluded that small-scale, cost-effective, green fuel is indeed possible for remote communities.

4. Biomass Gasifier for Energy Generation SPEAKER Kris Luzynski Principle, Krann Engineering Canada

Kris Luzynski described the application and operations of the Krann biomass gasifier for energy generation. In a two-stage process, the fuel is first converted to a mixture of combustible gases known as syngas (gasification), and in the second stage this syngas is burned producing clean, hot flue gas (combustion). This heat is transferred by water, thermal oil, or air in a heat exchanger. The cooled flue gas is then exhausted through the stack.

Luzynski said Krann offers turnkey small-footprint systems from 1–12 megawatts, which corresponds to systems of 3 million–40 million BTU/hr. For a 10-million BTU/hr system, the envelope is 54 by 41 feet, which encompasses the working floor, hydraulics, conveyance system, gasifier, boiler, and exhaust.

Krann offers various types of boilers and dryer systems, and Luzynski noted that their portable systems (up to one megawatt, three million BTUs per hour) can fit on one truck and are fully wired. The gasifier and furnace systems are shipped separately and connected on site. The preferable fuel is hog fuel or shavings, but occasionally oversize pieces will go through the system. If too large, they must be screened out or hydraulically broken to fit. Other fuels include agricultural by-products, construction and demolition materials (hogged), compost and refuse-derived fuels, and treetop trimmings.

Luzynski listed the system’s advantages as lower emissions, higher heat transfer efficiency and lower ash deposit, ability to use high moisture fuel, small footprint, comparable price to conventional systems, ability to process high ash content fuels, fast response to heat demand and high turndown, and unsupervised operation. Applications include boilers, greenhouse heating, veneer and rotary dryers, lumber kilns, wood waste energy generations, CHP systems, and direct drying of wood chips in pellet production.

Questions A participant asked Luzynski whether, regarding the burning of construction waste, there are restrictions to the cleanliness and composition of that material, including any regulations about paint and other chemicals. Luzynski said he was not sure of the regulations, but in terms of combustion, the systems can handle paint and plastics. Often there is too much metal in construction wood and that may cause some problems.

A participant asked what the temperature range is for fuel gas to run the ORCs. Cofrancesco said the temperatures depend on the design parameters of the units. Some are designed for specific temperature up to 310 degrees Celsius. Other high-efficiency units range from 310–315 degrees Celsius, and standard heat recovery units have lower temperatures of 240–250 degrees Celsius.

Walsh asked the panel to speak to the challenges of first deployment.



Cofrancesco said that in Europe there are more than 200 deployments of ORC already, but in Canada, despite the technology’s track record and longevity, there seems to be a mentality of “Where’s the first one in our area?” She said customers must be committed and aware and have the resources to put behind their project. Proper planning and taking time to evaluate the project are essential steps in figuring how to best utilize waste heat sources—in many cases it is CHP.

Fitzpatrick said there are many challenges to being first. But if companies have a strong vision of where they want to go, they do not let challenges win. He said just keep working toward that vision and do not be afraid of being first.

Originally, the concept of moisture reduction before combustion was not recognized as being particularly important. Taylor said it is essential to invest the time in education and be prepared to deliver specific performance guarantees proven through third-party validations. As well, incentives can be used to encourage early adopters to the program.

Jennings said 17 years ago the Kluane First Nation realized that it made sense to use biofuels, and the community has been using biofuels ever since. He suggested also considering the use of Compostex for storing chips—it is easy to handle, lightweight, useful for overflow situations, inexpensive, and will protect the fuel.

Finding financing is a difficult task, Luzynski said. There are many interested clients, and they must approach many funders to build their projects. Plus, the competition from low natural gas prices hurts bioenergy businesses.

Walsh asked the panel to comment on some game changers that will impact the economics of the bioenergy sector.

Cofrancesco said BC Hydro has offered programs to customers ranging from offsetting their own electricity consumption to money for new projects to cover capital costs and upgrade of facilities. She added it is very important to have local incentives available as well as carbon offset credits.

Fitzpatrick said people in British Columbia are used to ample supplies of power. However, this situation will not go on forever. The prices for green energy products will increase as the demand for energy increases. The bioenergy sector offers a solution that is environmentally friendly, giving companies in the sector a competitive edge in the market. Fitzpatrick said as companies like Nechako Green Energy become more efficient with the technology and learn new ways of bringing in their residuals, the formula of affordability will change.

Taylor added that wood waste is now seen not as a waste but as a commodity with increasing value, and its value must be maximized in some way.

Jennings said that in smaller communities, the major cost is the chipper. Utilizing the chipper for silviculture and fire suppression helps to amortize the costs over a greater range. Getting more uses out that tool helps with the economics.

Luzynski said control of the fuel supply is critical. Having a steady and quality-consistent fuel supply preferably from one source is important. As well, it is difficult to sell a system that has a long return on investment. The lower price of natural gas only adds to this difficulty.

A participant asked whether any heat and power systems are being developed for households, and Jennings suggested speaking to the suppliers who have furnaces in the exhibition.



Walsh asked Taylor to comment on the criticality of the dryness of biomass fuel.

Taylor replied that in the densification process, the biomass needs to be 8% to 10% before it can be run through a pelletizer or go through torrefaction. Regarding direct-to-combustion, he said there is disagreement among engineers as to whether it makes more sense to evaporate moisture content inside the boiler or whether the moisture is removed beforehand. Generally there are higher efficiencies when drier fuel is used, especially with a cost-saving drying process.

Walsh asked Jennings to comment on the economics of taking fuel from the bush to the plant, looking at the distances and how critical the maximum radius can be.

Jennings said that when it comes to small-scale biomass operations at the community level, it is not necessary to go very far for the fuel—transportation is not a big issue. The big economic issue is justifying the cost of the equipment compared to the amount of chips needed.

A participant asked how long it takes and to what extent Compostex brings moisture down to the needed 8% to 10% moisture content.

Jennings said he knows of no studies done on Compostex. However, the drier the wood, the more efficient the process will be. By protecting the fuel from getting more wet, Compostex fabric helps to lower the moisture content. In smaller communities, very low moisture content is not necessary because the infrastructure that is used can accept higher moisture content fuel. If the fuel is to be densified, then Compostex can protect an overflow situation from getting worse. The advantage of small communities is that they can let the chips sit for a year. Using Compostex to protect the feedstock is an easy and cost-effective way to get maximum benefits from the drying process.

A participant asked whether, regarding the ideal 8% to 10% moisture content, the efficiency of gasification changes based on moisture of the feedstock.

Luzynski said Krann takes anything from 8% to 60% moisture content. More water in the fuel means the heat transfer in the boiler is less. Having to evaporate the water consumes energy that is not recoverable, and the boiler’s efficiency decreases. Either in the boiler or upstream from the boiler, energy must be used to evaporate that water, he said.

Concurrent Session 3 Pellets in the New Bioeconomy MODERATOR Robert Tarcon Premium Pellet Chair, Wood Pellet Association of Canada

1. The Canadian Wood Pellet Situation SPEAKER Robert Tarcon Premium Pellet Chair, Wood Pellet Association of Canada

The pellet industry started in 1998 with the first ocean-bound cargo, said Robert Tarcon. “By 2011, 1.2 million tonnes a year was being shipped from Canada to Europe, 90% from western Canada.” Another smaller market is Asia. Canada currently has a 1.9-million tonne capacity, but this capacity is not fully being produced. There are plans to increase production in Ontario.



Pellet plants in Ontario tend to be smaller than operations in western Canada. Tarcon said, “In eastern Canada, logistics relating to the supply chain, such as availability of rail, terminal, storage, and loading, remain challenges.”

The primary fibre sources for the industry tend to be log residue and sawmill residue. For industry growth to occur, sources from sustainably managed forests are needed. Sawmill residues have proven to be one of the best sources, but emerging now are the possibilities of low-grade logs, tops, branches, and logs unsuitable for lumber products.

Tarcon said, “300% growth in the Canadian pellet sector by 2020 is possible due to continuing growth in demand from Europe, China, Japan, and South Korea.” Coal power emissions are also currently under review in Canada, and this process may help the industry. Due to shorter travel distances to Asia from western Canada, that market could hold promise for western Canada. Korea’s power companies are increasingly seeking renewable power sources. In Japan, nuclear power is unpopular, and there is a need for other renewable sources of power, such as biomass, which can be encouraged through feed-in tariffs. The Canadian market also holds potential as 60 million tonnes of coal per year are currently used for power, and new regulations could come into effect from 2015 to reduce carbon emissions, which would encourage the use of biomass, which has been deemed to have zero emissions.

The wood pellet industry exists for two reasons: it is carbon neutral, and it is sustainable. This acceptance depends on society’s perspectives. However, some coal producers have put out negative information about the pellet industry’s lacking carbon neutrality, including allegations of cutting down forests and damaging the environment, Tarcon said. To rebut those arguments, wood pellet producers must work together as an industry, he said. Misinformation about the pellet industry must be countered with scientific facts, by conducting business to the highest ethical standard, and by having positive information campaigns. He said pellet mills that are working on a sustainable scheme undergo three to four audit’s a year, and the Green Gold Label is being endorsed as a sustainability standard by the Wood Pellet Association of Canada.

Tarcon said Europe will continue to dominate the pellet market, but there will be some opportunity for domestic power markets in eastern Canada.

2. Wood Pellet Trade Scenarios SPEAKER Vaughan Bassett Vice President Sales and Logistics, Pinnacle Renewable Energy British Columbia

Based out of Prince George, B. C., Pinnacle Renewable Energy is the largest pellet producer in the world and exports over a million tonnes of pellets a year, said Vaughan Bassett. Europe dominates the global market mainly for residential heating and electricity with approximately 15 million tonnes per year, while North America uses 2.5 million tonnes per year primarily for residential and industrial heating. The rest of the world currently uses 0.5 million tonnes. The pellet market is tiny compared to the market for coal, but there is great potential for growth.

Bassett said 55% of pellets used move across international borders; therefore, export is important. Canada is one of the top exporters in the world. North America and Europe currently dominate the pellet trade, which is driven by renewable energy policies in Europe. By 2020 there could be demand in Europe ranging anywhere between 20 million and 80 million tonnes. However, there is a great deal of uncertainty in predicting demand as some of the variables are unknown.



Bassett said there currently there is a need to reinforce the established science that pellets are carbon neutral, as well as to grow the supply chain of people, assets, and safety, and to drive down logistics costs. It is also important to develop markets in Europe, the Korean Renewable Portfolio Standard, and domestic co-firing.

Finally, Bassett said, the pellet industry must find a forum to get involved in development of energy policies.

3. Canadian Clean Power Coalition: Delivering Results for Over a Decade

SPEAKER David Butler Executive Director, Canadian Clean Power Coalition

The Canadian Clean Power Coalition is an association of leading coal and coal-fired electricity producers with membership also from government agencies and research organizations. David Butler said the mandate of the coalition is to research technologies with the goal of developing and advancing commercially viable solutions that lower coal power plant emissions.

The coalition has been looking at carbon capture for the last 10 years. SaskPower is one member organization that will be moving ahead on carbon capture. The organization says it needs to look at biomass more closely as a possibility for reducing carbon emissions.

Proposed coal regulations would require new plants to have 0.375 tonnes of carbon dioxide per megawatt hour versus the current allowable 0.9 tonnes of carbon dioxide per megawatt hour. Butler said, “Problems with the new regulations are that there are no ways included to buy your way out or benefit from over-compliance.” He said some current studies “look at commercially viable technologies to meet these regulatory requirements, and one is biomass firing.”

A recent study examined various biomass sources across Canada to determine the economic merit of using biomass to reduce carbon. One conclusion is that 100% reliance on biomass would be too expensive in capital and supply costs. Most of the cost associated with using biomass is the cost of securing the biomass. Co-firing of biomass in older plants with shorter remaining lifespans holds potential due to lower capital costs, but in newer plants using biomass will be challenging because natural gas and coal are cheaper. In order to have co-firing as an option, the members of the Canadian Clean Power Coalition would like to see continuing government subsidies, proven biomass technologies, fewer plant modifications, and fuel standards for biomass. Also, they would like to use low-cost fuels such as in co-firing.

Butler said a regulatory framework making carbon reductions mandatory is needed. Regulatory approval for co-firing remains an issue. High GHG credits are also important. “Prices and long-term consistent supply of biomass have been an issue,” he said. More storage capacity is needed.

There is also a need to better understand the fuel. Currently test-firing is under way, and the coalition would like to do more with torrefied materials. Butler said the focus is on looking at what fuels are available in proximity to the various plants. Whether co-firing is less costly than carbon capture is still a question, he added. Moreover, it is not clear whether there is enough biomass available to refine these costs.



4. The Plan and Prospect for Biomass in Korea’s Genco SPEAKER Yon-Gyun Roh Korea East-West Power Co., Ltd.

Yon-Gyun Roh outlined emerging needs for renewable energy sources in Korea. Increasingly, Korean power companies call for renewable power sources, including biomass, and the government is implementing a tender process.

The Korea East-West Power Company is the biggest power company in that country. Currently one-third of its power is nuclear. The utility company must use at least 2% renewable energy, or it will be penalized. The Korea Electric Power Corporation comprises five power companies. Possibilities for renewable energy include by-product gases, landfill gases, hydraulic power, onshore wind, tidal or dam power, bioenergy, wood biomass full firing, offshore wind or fuel cell. By 2022 the projected renewable energy mix would include 2.1% biomass, but there are some questions about the ability to achieve this. The permit processes are complicated around these sectors. Also, the availability of wood chips in Korea is limited, Roh said; “wood chips and pellets come from Canada, Indonesia and Malaysia.”

Other available alternatives are palm kernel shells, empty fruit bunches, rice husk pellets and bio-coal. Canada is also a source of bio-coal. The biomass can be used in the power plants either by co-injecting with coal or co-firing. The older utilities want to obtain the cheapest biomass available. There remain some issues around the logistics of unloading and storage of the biomass. Currently no utility company has a discharge facility, but these could be built.

A big question is the cost of biomass versus the cost of the other available options. The companies will be deciding on the most cost-effective options and will seek the cheapest biomass options. The price of product from Canada is considered high, but the product is also considered to be of good quality, with stable quantity. However, “Canada would have to lower costs,” Roh said. In the future, the market will likely be a sellers’ market, he said. Biomass is currently being used from Southeast Asia, but the quantity is limited. In the future they will have no choice but to import from Canada.

5. Wood Pellet Shipping Strategies for Asian Markets SPEAKER Ben Vandenberghe Shipbroker, CTL Westrans Shipbrokers Canada

“Shipbrokers are a source of market information and look at freight from a global perspective,” said Ben Vandenberghe. There are three different sizes of shipments. Large shipments are 20,000 to 50,000 metric tonnes, and due to economies of scale they have the lowest cost. From Vancouver there are smaller shipment options for 5,000 to 15,000 metric tonnes. Some pulp and lumber companies hold five-year contracts on vessels, and there may be space available on those vessels. For shipments of less than 5,000 tonnes, containers are the most viable option; 22 to 24 tonnes of pellets would fit into a 20-foot container, and 26 to 28 tonnes fit into a 40-foot container.

Vandenberghe said the main thing to consider is supply and demand. “There are currently more ships than cargo, but there are also high costs of fuel.” For the route between Vancouver and Asia, there is a good supply of vessels, and to ship there would be easier than trying to move cargo to elsewhere in the world. Vandenberghe said considerations include the possibility



of sharing space and the availability of facilities. A lack of port facilities in Korea makes exporting to that country more challenging. Rail and trucking options to the shipping must also be considered. Bagged products require a lot of handling, while high stacking would be required in ship holds, which might also pose challenges. Wood chips can utilize more standard storage.

Concurrent Session 4 Advanced BioEnergy Technologies MODERATOR Russell Girard Manager, Sustainable Development Technology Canada

Russell Girard said Sustainable Development Technology Canada (SDTC) is a not-for-profit foundation formed by the Government of Canada over 10 years ago. It manages two funds: the SD Tech Fund of $590 million, which is allocated to various demonstration projects; and the Next-generation Biofuels Fund of $500 million, which fosters some costs of first-of-kind fuel technologies. SDTC assists the late-stage development and pre-commercial demonstration development of technologies with positive environmental and other benefits through partnerships between the public and private sector. SDTC also ensures the dispersion of clean technologies in relevant Canadian and international markets.

SDTC has supported 62 projects for a cumulative investment of $167 million, and consortium partners have funded almost $600 million that focuses on use of biomass and waste for conversion to value-added products such as bio-coal, biodiesel, and bioethanol.

Key observations include the following:

• Challenges occur in getting initial and additional funding. • Project scale can be too ambitious and must be well rationalized. • Delays frequently occur with advanced technologies; new discoveries occur in the process,

and this necessitates further validation that then requires more time and money.

1. Update on the “First Commercial LignoBoost™ Project” at Domtar in Plymouth, North Carolina

SPEAKER Gene Christiansen General Manager Business Development – Innovations Metso-LignoBoost™ Technology United States

Gene Christiansen said Domtar purchased the first commercial LignoBoost™ Technology (LBT) installation from Metso. The LBT plant will be in commercial operation in early 2013 with two more companies finalizing their projects this summer.

Christiansen described two partners with mutual need. Metso is a global supplier of sustainable technology and services to a number of sectors, to the tune of $10 billion a year, including one-third of its value in pulp and paper. It has over 300 biomass boilers worldwide. Domtar’s Plymouth mill in North Carolina was looking for incremental pulp, and Domtar corporate is interested in new products.



Innventia and Chalmers University of Technology did the R&D, and Innventia patented the LBT. In 2006, a LBT demonstration plant was built in Bäckhammar, Sweden—24 U.S. tons, one-third to one-quarter of the size of the commercial plant being built. In 2008, Metso acquired the LBT from Innventia, and since then the companies have collaborated on its commercialization. “Prices were too high in the pre-engineering phase, so we went back and did some value engineering to lower the cost. It took us one full year to go from concept to ready for a contract,” said Christiansen.

The LBT process separates and collects lignin from pulping liquor. Carbon dioxide is added to the black liquor, which precipitates out the lignin. Lignin is then run through a press, washed then filtered, brought into an acid state, conditioned, filtered, and pressed again. Christiansen said, “The heart of this plant is a vertical plate pressure filter—not a new piece of equipment. It operates in the mining industry, but this is a new application of it.”

Separation of a portion of the mill’s total lignin production off-loads the recovery boiler and allows an increase in pulp production capacity. The lignin recovered will be used for internal applications (as fuel in the lime kiln instead of fossil fuels) and external applications, for the chemical industry, or as fuel. Lignin is a great binder for pellets and can be synthesized into dispersants, activated carbons, phenol/benzene, carbon fibre, etc. Lignin can be converted to carbon fibres after purification, but this is a long-term venture of five to 10 years requiring more R&D.

“This project is a potential game changer because it will allow pulp mills to have a new, more profitable value stream from a product that was traditionally burned in a recovery boiler,” Christiansen said.

2. Biomass to Hydrogen Power: Clean Energy Systems and Green Hydrogen

SPEAKER Dr. Sam Weaver President, Proton Power United States

“We make cheap hydrogen from biomass; clean, green, sustainable, and renewable,” said Dr. Sam Weaver. The Cellulose to Hydrogen Power technology (CHyP) takes any kind of biomass up to 45% moisture, puts it through a chip unit that is carbon negative and makes fuel and co-products plus water, heat, and biochar that can be used as fertilizer. It cleans up the gas and cools it down. The gas can then be used in an internal combustion engine or cleaned further and put it into a Ballard hydrogen fuel cell.

Dr. Weaver listed the general advantages of CHyP engines:

• Costs are competitive with hydrocarbon fuels. • It eliminates the need for hydrogen distribution and storage systems. • The systems are scalable to suit the application. • The cellulose fuel is renewable. • The by-product of burning hydrogen is water. • Much of the fuel can be waste products. • The process is carbon neutral.



In addition to fuel cells, gas from the CHyP can be used in a range of applications to supplement in diesel fuel generators (up to 80% hydrogen equipment payback can occur in less than one year) or natural gas generators (up to 100% hydrogen with equipment payback in two to four years). Wood waste generates power where the toxic ash produced is non-leachable. This reduces the volume entering landfills by 96% and eliminates the need for expensive lining (equipment payback in two to three years). Liquid fuel production ($1.27/gallon) and automotive fuel as a diesel supplement are also options.

The University of Tennessee is currently using a Proton Power Systems bio-oil system as a research unit and producing bio-oil and biochar. These systems can be manufactured at a variety of scales—for example 3, 20, and 500 MWe.

Weaver showed a graph of the relationship of energy to wealth expressed as GDP per capita, noting “the average income is $850 per year because they don’t have access to energy.” Weaver concluded, “BioEnergy is an enabling technology for the other renewables. It’s the biggest business opportunity in history, but it’s also what the world needs—more energy and more jobs—and you’re right in the middle of the opportunity to do that.”

3. Lignol’s Flexible Biorefinery Technology SPEAKER Raymond Ma Senior Vice President Corporate Development, Lignol Innovations Canada

Lignol Innovations is a 10-year-old Canadian biorefinery company based in Burnaby, B.C. Raymond Ma said the core of Lignol’s technology is organosolv extraction, which has been around for many years.” Lignol Innovations has invested $50 million to date and has established a strong and expanding patent portfolio. Its parent company, Lignol Energy Corporation, is a public company listed on TSX Venture Exchange.

Over the years, Lignol Innovations has received significant government support. “We started out looking at cellulosic ethanol. In recent years we have branched out to look at other chemicals and advanced fuels,” said Ma. “We are entering the final pre-commercialization phase: completing pilot plant work, establishing off-take agreements, and pursuing initial commercial projects with partners.”

Lignol Innovations has made advances in a number of biochemical production processes. The process can break down wood biomass into lignin, hemi, and cellulose and, through each of these pathways, produce a range of products. For example, “our new process allows us to go straight to xylose recovery and fermentation,” Ma said. Another advance is an increase in enzyme activity of 25%, which significantly lowers the cost of production. Ma said, “A bug can ferment both C5 and C5 sugars, converting them as if it were feeding on glucose alone, with no lag phase and a 95% conversion rate, or it can ferment the C5 into oil.” A breakthrough has also been made in a hybrid lignin resin system for greener and cheaper oriented strand board manufacturing.

Ma said Lignol Innovations works to maximize value from biomass in three large sectors: biofuels, biochemicals, and biomaterials. “We’ve completed a design study and can achieve a 20% reduction in energy consumption, since it’s one of the top three costs of our biorefinery.”

Ma concluded that Lignol Innovations’ products and process reflect what government and society want. “We have a great GHG reduction profile. We bring energy security, and we believe our technology has the potential to bring transformation to our forest industry in



British Columbia. And lastly, there’s always a new bug out there that can produce a better product for us.”

4. Conventional Energy Company into the State-of-the-Art Biofuel Business

SPEAKER Jouko Parviainen Joensuu Regional Development Company, Wenet network Finland

Finland has the highest solid biomass per capita consumption in the EU, 1.4 tonnes of oil equivalent, said Jouko Parviainen. Fortum, an energy company owned by the state of Finland, is one of the conventional giants of Northern Europe. It is positioning itself to be a major player within renewable energy sources, including biomass plants in Finland, Sweden, and the Baltics.

Fortum will invest about €20 million to build a pyrolysis oil plant using Metso technology in Joensuu, Finland. It will be integrated into the CHP plant. Construction has begun, with completion scheduled for fall 2013. The plant’s bio-oil capacity will be 30 MW with annual production of 50 000 t, 210 GWh; it will require 225,000 s-m3/year of forest biomass.

The plant will make bio-oil using fast pyrolysis, which decomposes wood in an oxygen-free atmosphere at high temperature. Its viscosity is between those of light and heavy fuel oil. Further, integrated pyrolysis will produce bio-oil as a product as well as heat for CHP and district heating production.

Joensuu is located in Finland’s easternmost province, North Karelia. Parviainen said it was chosen as the site because of high availability of biomass: 85% is forested, of which 75% is privately owned. “Our forest owners are keen to improve their forest value by using small stem trees for this plant,” Parviainen said. Half the energy used in North Karelia is wood energy. Not surprisingly, Joensuu is regarded as a European capital of forestry and forest energy with leading expertise since the 1980s. More than two-thirds of forest harvesting machines sold in Europe come from East Finland, including John Deere and Ponsse.

Wenet is an example of strong collaboration between organizations, research institutions, and about 30 companies. It was founded in 2004 and is a network of experts from the region that cooperates with other Finnish partners and partners abroad. Soon, an employee involved in the network will come to work with FPInnovations in British Columbia, Parviainen said.

In February 2013, Wenet will host the 4th International Event on Wood Energy and Modern District Heating Solutions.

Discussion A participant asked whether other product streams are occurring in Finland. Parviainen said a program exists for biorefineries, and the pyrolisis oil is the first step.

A participant asked Weaver how much more benefit would there be to using purified lignin instead of the whole biomass in that system. Weaver replied, “We don’t really care. If it’s cheaper we’re interested; other than that, we can use any form.”

A participant said Ma’s process is a solvent-based process; therefore, no mineral chemicals are coming in, whereas the LignoBoost process uses sodium, sulphur, and so on in the process. The participant asked what the differences are in types of value-added products. Christiansen said



the difference is sodium and some ashes, which is why the second stage washing gives the opportunity to remove some of that. The next steps depend on the end user.

Ma said, “One key difference is that lignin from our process can be used to make carbon fibre.”

Concurrent Session 5 First Nations, Remote Communities, and the Bioeconomy MODERATOR Angeline Nyce Davis LLP

Angeline Nyce applauded the outstanding calibre of the participants and speakers and noted the importance of networking and collecting information on technologies, facilities, and partnership opportunities. She also commended the large presence of UNBC, noting the importance of academia reaching out and building partnerships with the community.

Nyce introduced herself as a lawyer with Davis LLP specializing in Aboriginal, corporate and commercial, and forestry law, a registered professional forester, and a member of the Nisga’a-Tsimshian First Nation. She said that for her, the benefits of bioenergy are personal. She grew up in a small community—Gitwinksihlkw—in the Nass Valley and remembers her family having a woodstove for heat and a diesel generator for power operating 10 yards away from the house. So the small community projects being discussed at this conference were very “close to home.”

1. First Nations and the Clean Energy Sector Dave Porter CEO, First Nations Energy and Mining Council Canada

Dave Porter said the commitment to build processes and institutions necessary for “shared decision making about the land and resources and for revenue and benefit sharing” is moving forward. First Nations have created and developed the B.C. First Nations Mountain Pine Beetle Action Plan (2005), the B.C. First Nations Forestry Council (2006), the First Nations Energy Plan and Working Group (2007), and the First Nations Mineral Exploration and Mining Action Plan (2008).

Porter said the clean energy sector—run-of-river hydro, wind, natural gas, and biomass—is supplying long-term economic opportunities for First Nations. In B.C., the level of First Nations’ involvement is unprecedented—130 First Nations have some relationship to the clean energy sector. Projects are typically located right where First Nations live. And clean energy developers have developed “a positive, respectful, and mutually beneficial relationship with First Nations” as exemplified by memoranda of understanding with Clean Energy B.C. and the B.C. BioEnergy Network. In addition, First Nations communities value the lighter environmental impacts of clean energy.

Porter also noted that long-term business deals—20- to 40-year revenue and cash-flow agreements—are being struck. Importantly, First Nations not only are being employed by these projects but also are becoming equity partners, actively involved in developing clean energy opportunities. For instance, over the last four years, the Hupachasulth, Taku Tlingit, and Tlaquiot have become owner-operators of multi-million dollar run-of-river hydro projects. First Nations such as Blueberry River, Doig River, McLeod Lake, Talhtan, Squamish and others, have entered into impact benefit agreements with private sector developers. First Nations are also



leaders. For example, the T’sou-ke First Nation has installed solar panels on all of its buildings to demonstrate responsible energy planning for the long term.

Porter said the B.C. First Nations Forestry Council helped develop the B.C. government’s new First Nations forest woodlot licence, an area-based tenure that includes the ability to incorporate First Nations’ values into forest management plans. Currently, First Nations hold over 17% of British Columbia’s AAC—11.3 million m3. This significant amount of tenure fosters opportunities for advantageous, long-lasting, and positive relationships with a bioenergy industry that brings both technology and markets to the table. Porter added that many First Nation communities are not connected to the grid; they are remote and rely on “dirty diesel.”

The First Nations Energy and Mining Council is working with the B.C. BioEnergy Network and the community of Kwadacha to establish a bioenergy pilot project in that community. Porter stressed the need for an energy strategy, a common vision that links up all the provinces and territories of Canada. First Nations must be involved with this strategy because they are owners of, and live on, the land base. Porter noted the need to create a specific program—the B.C. First Nations Clean Energy Program—to consolidate funding and help First Nations engage and partner with the clean energy sector right from pre-feasibility through to implementation. He stressed that cooperation and building partnerships between First Nations and the private sector is essential for driving change.

2. Overview: Batch Oxidation System™ Two-Stage Advanced Thermal Gasifier

SPEAKER Alistair Haughton, Chief Operating Officer, Waste to Energy Canada

Alistair Haughton’s company, Waste to Energy Canada (WTEC), provides integrated waste management solutions. Although the company originated in solid waste and municipal waste management, it has expanded into wood fibre and biocrop wastes. WTEC’s system is a batch oxidation system (BOS), a two-stage advanced thermal gasifier that has been deployed globally in various projects for 15 years.

Haughton highlighted the strong relationships and strategic partnerships that WTEC has developed worldwide in Canada, Scotland, Malaysia, Indonesia, the Caribbean, Iceland, and other countries. To stay abreast of current knowledge, WTEC is committed to the research and development of technologies as well as to technology integration.

Haughton said the BOS system is ideal for decentralized applications, allowing separate communities to each have their own facility. WTEC’s system takes municipal waste such as sewage, transforms it to potable water, and then uses the bio-solids in the gasifiers to offset the biomass supply. This modular, scalable system of advanced thermal gasification can be operated as a batch or continuous process, is robust and simple to operate with a long service life and low capital costs, uses “as-is” solid wastes, can handle liquid waste fuels separately, needs a small amount of fuel to start but is self-sustaining thereafter, and allows for heat from the hot flue gas to be recovered for various uses such as district heating, steam, electricity, central chilling, and desalinated water. Acceptable waste materials include municipal solid waste, wood fibre, industrial and commercial, construction and demolition, medical and pharmaceutical, tires (whole or shredded), fish and animal remains, waste water bio-solids (sludge), biomass crops, and hazardous waste.



Dealing with First Nations “comes down to ownership, traditions, and respect,” Haughton said. WTEC has worked with groups such as the Ahousaht, the Kelly Lake Métis Society, the Vuntut Gwitchin, and the Tl’azt’en Nation. He said the company’s business model is based on finding holistic approaches that will serve these small communities long-term and provide benefits, especially in terms of ownership. WTEC provides the “full package,” including investments, leveraging of the project to enable First Nations’ control for the long term, and the ability to tie into specific opportunities.

For the Tl’azt’en Nation, WTEC will install a three-tiered project owned and operated by the community. At the front end, a small BOS system will eliminate all municipal waste; a mobile system will be deployed to remediate the landfill. Through training and developing a business model, the local community can extend its experience outwards to other communities. The next stage will be a small-scale biomass gasifier to provide centralized heating for the school, administrative buildings, and a small greenhouse. A larger system is planned for the sawmill that has potential to sell energy to the grid and/or to private customers such as the mining industry. A commercial greenhouse is also tied to this project. Haughton mentioned the potential for carbon credits as well; WTEC has been awarded tradable Renewable Obligation Certificates (ROCs) because the electricity is being generated from a renewable source. Parties are already interested in purchasing the ROCs that are being generated from the Tl’azt’en Nation project.

3. Community-Scale BioEnergy SPEAKER David Wilson Vice President, Poncho Wilcox Energy Corporation Canada

David Wilson said the biomass and cellulose-based Crucible Pyrolysis Process is a small-footprint, self-contained process operating at 93% efficiency that produces water, char, and syngas. The syngas produced can be used for heat production or run in reciprocating engine gensets to produce electricity. The char produced has many uses: soil enhancement, filtration, bio-coal, and biocarbon.

The technology has been three years in research and development, Wilson said. Currently, a commercial-scale pilot plant in Australia is running with a one tonne per hour feedstock rate that produces about four megawatts of thermal and 1.2 megawatts when run through a generator. In Canada, two projects—for a wood products mill in central B.C. and for a post-secondary institution—are planned for 2013.

The unit’s small size and low capital cost make it affordable for remote and First Nation communities, and its 93% efficiency rating means that the process requires less feedstock, which works well with small licence holdings such as community forests. The simplicity and reliability of the process and machinery also make the system appropriate for small communities. It can be monitored remotely, is fully automated, and requires low maintenance. The efficient internal dewatering process means the system can work well in humid coastal climates and with high moisture species such as poplar and hemlock. Wilson added that it has excellent load following capability and can easily follow the variable demand of off-grid communities. These communities also benefit from the jobs created from the plant operation and feedstock collection, the potential revenue stream, the opportunities for community heat, the reduction in expensive diesel and propane, and the potential to enhance food security by heating greenhouses.



Wilson said that when working with First Nations it is important to manage expectations—projects do not happen quickly and building relationships takes time. Most First Nations are bombarded with opportunities and are stretched to, or beyond, capacity. He said it is vital to provide help, especially in finding third-party expertise. Wilson advised that that First Nations hold at least 50% of the equity of the project, and added that trust and equality are fundamental to effective partnerships.

4. Energy Independence and an Economic Development Solution: A Woody Biomass Energy System for the Kwadacha First Nation

SPEAKER Dawn Bursey Executive Director, Kwadacha First Nation Canada

Dawn Bursey described the work completed to date in the planned bioenergy heat and power system in Fort Ware, a community surrounded by beetle-killed timber. A tripartite agreement between the B.C. BioEnergy Network, the B.C. First Nations Energy and Mining Council, and the First Nations Forestry Council led to a pre-feasibility study on meeting the community’s green energy and self-sufficiency goals. For now, the project is in the first phase—the installation of a heat-only system to be located near the school. The second phase involves installing a CHP unit, and the third phase will involve the establishment of a greenhouse. The only use for diesel will be as an emergency backup for power generation.

Many resources were used in developing this project. A 2010 BC Hydro report evaluated the energy supply options and determined the cost of power to be 67 cents per kilowatt-hour. Green Heat Initiative produced a heat audit that analyzed the heat loads of the community, provided a preliminary design, and estimated the cost of a hydronic (hot-water) district energy system. The Biomass Energy Resources Centre (BERC) and B.C. BioEnergy Network evaluated and ranked the responses to the community’s call for expressions of interest. FPInnovations developed a sustainable harvest plan that evaluated the fibre supply options, looked at the feedstock utilization by different systems, and assessed the amount of fibre available by managing the fire risk (60 years of harvesting exists within 10 kilometres). In addition, R. Radloff & Associates assessed the engineering design and cost for a precinct heat-only biomass energy system in terms of community density, and the displacement of propane and diesel for electric heating. The cost savings to fuel switching were significant.

Currently for Phase 1, funding opportunities are being pursued, the business plan is being validated, an environmental assessment is scheduled, and an energy purchase agreement is being negotiated with BC Hydro. By the summer of 2013 the bioheat system should be installed, hooked up, and commissioned. The review, evaluation, and selection process continues for Phase 2. The four technologies under consideration include an advanced combustion system using an ORC generator, an advanced gasification system using a reciprocating engine generator, a lower-cost gasification system using a reciprocating engine generator, and a hydrogen gas system using a diesel or spark ignition reciprocating engine. Bursey said the greenhouse planned for the final phases of the project offers numerous advantages and benefits to the community—chief of which is food self-sustainability.

Discussion A participant asked Bursey what her approach is for getting locals to eventually run the plant, and considering the technology, whether it would be very difficult to staff.



Dr. Scott Stanners of the B.C. BioEnergy Network said this community of 300 lacks plumbers and electricians, so capacity development is very important. It is part of B.C. BioEnergy Network’s process to educate the band and band council as well as the community. Having everyone on board is vital, he said, and fitting community champions into various aspects of the project is important. Dr. Stanners said most of the work would go into harvesting the wood and into wood preparation, and much of the daily maintenance would be handled by the community. Currently community members are responsible for the diesel generators.

A participant asked Bursey why the decision was made to capitalize on an existing water project.

Bursey said a roads and water project is currently under way. She said the community was trying to coordinate the logistics of laying of the pipes for the heating system with that project. However, the timing did not work out, although the community is still hoping to dig some ditches for the pipes before the crush goes down.

A participant asked for a list of the top three things that communities can use from outside help, what is the appropriate help, and what are key issues where some communities lack capacity.

Porter replied that what industry brings to the table is technology, marketing, and fibre. But to kick-start projects, First Nations need access to capital and investment funds, and they need the policy framework to support funding. They also need favourable policies from organizations such as BC Hydro to encourage these projects. Of great importance for First Nations is the number of small, remote, and off-grid communities that can benefit from these technologies.

Nyce added that First Nations bring location and assets—the ability to build on reserve lands.

Haughton said industry is there and the feedstock is there; the government has just not caught up with either industry or communities. Although there is much talk about incentives, there is not much real incentivizing for industry or communities. Also, there is little access to funding, especially for First Nation communities.

It is a very slow process, Bursey said.

Porter said that for the most part, BC Hydro has had a monopoly. It should be flexible and understand that it must give to create opportunities. BC Hydro has some real influence.

Nyce said First Nations and other clients express the same challenges with dealing with policy and the slow movement of policy towards the technology and the partnerships that are forming. It becomes necessary for small internal committees to have expertise in developing and moving policy along. Governments must reconnect and collaborate with communities.

Porter advised that industry representatives and First Nations start to engage with the NDP, which could potentially form the next government, on policy issues. But this must be done before the party is elected.

Wilson noted that despite BC Hydro’s rhetoric around engaging First Nations, the process of obtaining an energy purchase agreement is as lengthy and expensive as it is for other applicants. This is one of the biggest roadblocks, he said.

A participant asked what a reasonable, real-world time frame is in developing projects.

Haughton said the technology can easily be deployed to ground in 18 to 24 months. If the power is going to a community grid, it can be staged. The turbines and so on can be brought on



at a later stage. However, the initial agreement process can take years and hundreds of thousands of dollars. In one project, the idea was to engage an off-take client—the community first—and then to engage a larger private off-taker in order to go directly to the private dollars.

Porter said First Nations would be willing to work with industry representatives and individual companies to push BC Hydro.

A participant asked how companies engage First Nations, what the first step is and whom they contact.

Wilson said that when his company engages First Nations, it approaches Chief and Council. But this is not a quick process; it takes a long time to build a relationship. Plus, most First Nations are bombarded with opportunities and take more notice of partnership opportunities, especially ones with at least 50% equity: “Basically, they are looking for equality.”

Haughton said his firm does not solicit; “we operate by word of mouth, and people come to us.” Usually they have already worked through the initial stages and are ready to proceed. It is important to bring financial capacity to the table and the ability to follow through at a quick pace and maintain motivation. Haughton said it can also be taxing working with industrial clients; sometimes language barriers are an issue. It is important to show good faith and be willing to share in equity. He said the bioenergy sector is about to become another run-of-river scenario: “There are people clamouring over each other to get to feedstocks and start a business.” Opportunities exist and are attractive to equity investors. More large financial institutions are willing to invest in, and fund, projects, allowing for equity as well as debt.

Nyce said participants from the banking sector earlier said their bottom line is cost. She asked whether a smaller project be able to compete on cost compared to a larger one that carries more risk.

A participant asked Bursey whether there is a protocol in place for contacting Chief and Council in the Kwadacha First Nation. She asked what the best opportunity for engagement is, and whether there is a time or a season that everyone is gone out on the land harvesting.

Bursey replied that although people can contact her directly, typically they contact the Chief directly either through the office or on his cell phone. If he is not available, then they can talk to her.

Porter said B.C. BioEnergy Network has built a good relationship with First Nation interests and is a good place to ask whether there are any First Nations interested in partnerships.

Concurrent Session 6 Torrefaction Technical Session MODERATOR Michael Weedon Executive Director, British Columbia BioEnergy Network Canada

Michael Weedon shared some comments from CIBC World Markets and Bloomberg New Energy Finance that were provided at the NSERC Bioconversion Network Pretreatment Workshop in Vancouver in June 2012. According to CIBC data, investments in energy plants using biomass have hovered around $9 billion to $10 billion per year since 2007. Europe is the



leader followed by China; China wants to increase biomass power substantially by 2020, and the European Union expects to double biomass capacity by 2020.

According to CIBC, upward pressure on biomass prices is expected. Europe and Asia are the centres for biomass demand. Also, there could be a 40% increase in biomass demand by 2014 for co-firing by Europe. Biomass is seen to have a wide range of costs depending on local conditions and scale, and the current relatively low cost position of bio-electricity is likely to deteriorate. Biomass is different than most renewable sources of energy as it provides a baseload of power and optionality, CIBC data show.

CIBC also predicts that torrefied (versus conventional wood pellet) is the better investment option as costs are approximately 20% lower for the entire value chain. Torrefaction is seen as the next big development in biomass; however, questions remain about technological and economic barriers. According to Bloomberg, power plants could co-fire large amounts of biomass using a variety of feedstocks with little reduction in output and efficiency, limited changes to the plant, and reduced transport and storage costs. Bloomberg predicts that when torrefaction reaches commercial scale, it will grow and potentially overtake the pellet industry.

1. Torrefaction SPEAKER John Swaan Development Manager, Horizon BioEnergy Netherlands

John Swaan provided a brief overview of the operations of Horizon BioEnergy engineering firm in the Netherlands. The company’s head office is in Weert, Netherlands, and there is an operation facility, Stramproy Green Coal, at Steenwijk, on the other side of the country. The firm’s operations include sales, installations, and engineering, and the facility at Steenwijk is a demonstration plant selling green coal. This plant employs 25 people and provides 2.5MWh of electricity capacity from 45 to 90 tonnes of bio-coal (briquette).

Swann said Horizon BioEnergy is currently doing some pellet testing. In 2002 the first reactor produced 50 kilograms, and by 2004 the number had risen to 500 kilograms. By 2009, the firm constructed a commercial-size reactor for 5.6 tonnes per hour, and operation started in 2010. The fluid bed was the chosen technology. Vibration moves the product along. The gas is pulled off, directed to the oxidizer, and then used for the torrefaction reaction. With gas injection, control and stability are maintained at all stages.

The process commences with the wood chip receiving. The size, distribution and moisture are just as important as in the white wood pellet industry. The chips are then classified and screened. The drying has a 40–50% moisture input and an output of 8–10% moisture. The syngas oxidizer is used for the torrefaction at 5.6 tonnes per hour at 270–300 degrees Celsius. The output moisture is 0–1%. Cooling, crushing, and grinding to make the briquettes follow. The briquettes are then screened, cooled, stored, and transported. For the bio-coal specifications, 21–23 GJ per tonne is the expected average. The moisture content will be 2–6%. Ash is 1–4%, and this number would be better with better fibre sources.

The plant is not yet producing puck briquettes but the firm is working on that. Swann said there is no standardization for assessing hydrophobic properties of the product, but the product does not fall apart. He said that while working with the utilities the firm must look at these issues, including reliability, which is the primary issue.



Swann gave an overview of the basic economics of torrefaction. He said when production and conversion costs and the estimated selling price for the product are factored in, the margin seems to be higher on the torrefaction product than on white wood pellets. He assessed a $43 per tonne margin.

Swann said the most significant issues to be addressed are continuous control for the heat and quality output, and these remain the challenges Horizon BioEnergy is working on.

2. Torrefaction of Biomass: Overview and Summary of Andritz Activities

SPEAKER Klaus Trattner Senior Manager, Head of Process, Research and Development, Andritz Austria

Klaus Trattner provided an introduction to Andritz, a global company with approximately 17,000 employees. Andritz has production sites in North America and focuses on five business areas: hydro, pulp and paper, separation, metals, and feed and biofuel. Three of these operations—pulp and paper, separation, and feed and biofuel—involve torrefaction.

Trattner said torrefaction is a mild form of thermal conversion with controlled carbonization with a temperature of 250–300 degrees Celsius without oxygen. The objective is to improve the fuel properties of biomass. The process involves five steps: feed, dry, torrefaction (250–300 degrees Celsius for approximately 30 minutes), densification, product handling, and shipping. It is important to feed back the gases from the torrefaction to use in the drying process as an energy source, Trattner said.

Andritz is following two technology paths with two designs. The first is specialized for large quantities over 250,000 or more tonnes per year. ECN, a Dutch design, is used for these operations, and Demoplant, a pilot plant in Denmark, is using this technology; a pressurized vertical reactor pellet plant is used. The second, the ACB design, utilizes a rotating indirectly heated drum reactor briquette plant. This is the technology used for small to medium-sized plants averaging 50,000 to 250,000 tonnes per year. These plants have flexibility for feed material. There is an ACB process demonstration plant with industrial design in Frohnleiten, Austria. This plant could be up-scaled to industrial design. This plant, which uses locally sourced spruce and pine chips and sawmill residue, has been achieving good moisture content. The product is producing good density, but improvements are still being sought.

Trattner said Andritz can supply turnkey operations for biomass production facilities. Three components are required: raw material, agreements for product, and technology; and he said Andritz can assist with the technology.

3. Torrefied Biomass as Clean Coal Replacement Fuel SPEAKER Hiroshi Morihara CEO, HM3 Energy Technology United States

HM3 Energy is a very small company with some interesting technology. It was started in 2008, switched from a focus on ethanol to bio-coal, and has received a number of grants to develop torrefaction technology. Hiroshi Morihara said HM3’s product has 20% more energy than coal due to less moisture, and it has potential as a coal replacement.



HM3 has been working on both torrefaction and densification. Morihara said a fine balance with water and surface area must be achieved, and the material has to be made to be hydrophobic. It is important to torrefy just the right amount to get to proper density, Morihara said. “The concept of densification is simple, but it is not easy.” The lignin from the tree may evaporate during the torrefaction process.

Morihara said HM3 has completed the functional design of the first commercial plant layout with capacity for 130 tonnes per day. The equipment design has been completed. The company looked at an example of the cost of exporting to Korea and found that the torrefied briquettes have a lower cost compared with pellets—less than half the price.

4. Bio-Coal: A Global Product for a Global Solution

SPEAKER John Bennett President, Global Bio-Coal Energy Inc. Canada

Global Bio-Coal Energy (GBCE) is five years old. John Bennett said he feels bullish about this area in British Columbia. His company has good fibre supply and technology and the support of university research and the B.C. BioEnergy Network. It has a site at 17 Mile House where it uses the Wyssmont torrefier out of Montreal. “The Wyssmont machine has been around for over 40 years,” Bennett said, “and there are over 600 in North America.”

Bennett GBCE is the only company to use this technology as a torrefier rather than a dryer. Rotating trays are used, bark and any wood including sawdust can be fed in, and product is produced within 33 minutes.

Bennett said the dust from torrefied products is less explosive than wood products due to the low heat used, and to date there has never been a fire with a Wyssmont product. For wood sources, the company uses slash from logging operations. GBCE works with one company that takes all of its product for the European market. That company looks after all transport. Bennett said, “Whereas the white pellet industry has a challenge with transport costs, our product is shipped with coal around the world for $17 per tonne.” He said that is because GBCE works with a company that has its own vessels. The total cost to deliver is $43 per tonne. Bennett said there is an awareness in the pellet industry about the need to torrefy, and he is willing to talk to pellet producers about working together. “I am not concerned about competition because the market is so big.”

Luncheon Keynote Presentation INTRODUCTION Don Steele Chairman and CEO, Pacific BioEnergy

SPEAKER Doug Konkin, Deputy Minister, B.C. Ministry of Forests, Lands and Resource Operations Canada

Don Steele introduced Deputy Minister Doug Konkin, who has served in government in forestry and other portfolios for a number of years, as the “father of the biomass trade.”



Steele provided context for the deputy minister’s role. “What we’re stressing is the fibre that’s available,” he said. “In the past, government created policies that led us to the solid wood industry and have served us well till today. Through the last two decades, the softwood lumber tariff issue was the big topic, and also the coastal industry started to decline to where it is today.” Mountain pine beetle has also been a big issue and is related to “the emergence of the new kid in town, the biomass business.”

Steele said that having worked in this area now for 10 years, “I can say that this industry is maturing considerably. . . . When I fly over the Nazko region, I look around and see biomass, coal, and oil and [Deputy Minister Konkin] is the guy to decide how we’re going to get along.”

Deputy Minister Doug Konkin thanked all the conference participants and organizers. He said that in preparing his speech he looked on the Internet for bioenergy jokes and was surprised not to find any. “I don’t know if this industry is quite big enough that people are making fun of it yet,” he said.

Konkin said bioenergy is important in British Columbia—clean energy, renewable power, climate action, and innovation. He said, “$2 natural gas has an impact on my thinking.” A bioenergy plant is being built in Mackenzie that will heat 20,000 homes. Canfor is hoping to reopen its sawmill and have a cogeneration plant. BC Hydro has established a number of projects that will heat 321,000 homes. In Nanaimo, the Nanaimo Forest Products’ Harmac mill will be generating and selling clean power to BC Hydro.

“We recently introduced the new forest sector strategy in April—it does plug into bioenergy—establishing clear, long, bioeconomy vision, more fibre, and more market development,” said Konkin. “When I look in the future I see a lot of economic shocks coming at us, a lot of uncertainty. If we’re going to have resilient communities we need to maximize the diversity we take advantage of.”

To work on this, the B.C. Ministry of Forests, Lands and Resource Operations participates in the B.C. BioEnergy Network and FPInnovations. On the bioeconomy, it is trying to look forward with some tenures. “I hope we never have to use those tenures, but they provide a lever, incentives for partnership,” said Konkin. “It can be difficult to get fibre; people are holding onto something that they think will continue to have value.” The deputy minister said it is essential to plan for how to use fibre to maximize its value; aggressive, forward-looking partnerships are needed in the next two to five years across the traditional forest industry and the bioenergy industry.

The prediction of the average climate-warming scenario is in fact happening, Konkin said. In addition, very-high-degree days that were rare are occurring more frequently at much higher temperatures. “There’s no smooth transition coming where forests are going to convert to grasslands. There will be dramatic shocks and changes,” he said. To manage forests in this area, fuel management and fibre optimization are critical. “There will be changes to the fibre basket—changes that will make us look at the fibre in a different way, hundreds of thousands of hectares that we’ll have to look to converting to protect our communities.”

Konkin stressed the critical role of partnerships in promoting resilience. “We’ve been a little slow in delivering this stuff and we’re committed to buckling down and getting it done,” he concluded.



Discussion A participant said she just moderated a session on First Nations remote communities and the bioeconomy, and asked where the deputy minister sees First Nations in that mix.

Konkin said participation initially might be more on the bioeconomy side with new opportunities, but eventually partnerships would spread across the whole forest resource sector.

A participant said that from Portland to Prince George many trees are growing very close together, skinny and tall. He asked whether the province would be doing some thinning so that trees will grow faster and the bioenergy industry can do better.

The deputy minister said trees grow a lot faster in Portland, and economics of thinning are completely different here. Thinning programs have been conducted, but when money is scarce, as it is now, late-stage fertilization or regeneration of some of these stands is a priority.

A participant asked the deputy minister about climate change and the forest sector.

Konkin said a lot of research is being done on species. However, the predicament, for example in Kaslo, is that there are trees now and in 50 years there will be grasslands. The breeding program is attempting to maximize the temperature at which trees can survive. Climate adaptation and fuel management are also important. Memoranda of understanding between the existing agency, traditional industry, First Nations, others, and communities are required. “We need to get out there in terms of conversion—you can envision a fire that could wipe out a great part of our remaining supply. There will be much more discussion of this spearheaded by the [B.C. government’s Mid-Term Timber Supply Review] Committee,” he said.

5th International BioEnergy Conference

and Exhibition

Prince George, British Columbia June 13–15, 2012

Table of Contents

Welcome .........................................................................................................................................1

Session 1 Around the World in Half a Day: Global Game Changers ...............................................................................................................2

1. Canada: BioEnergy Growth............................................................................................2

2. The European Union on its Way to 20-20-20 ...............................................................2

3. Global Market and Investment Perspectives..............................................................3

4. Industry Perspectives on New and Emerging Markets ............................................4

Session 2 The Future of Fibre.......................................................................................................................5

1. B.C. Forest Tenure System and Options for Fibre .....................................................5

2. B.C. Interior BioEnergy Fibre Supply: Evolving Impacts & Opportunities—”The Economic Balancing Act” ..........................6

3. Resolving Wildfire Risk in British Columbia through the Development of a Community-Based BioEnergy Sector .................................................7

4. Forest Products Sector View on Fibre and BioEnergy...............................................8

5. Biomass Outlook and Use for BioEnergy Applications............................................9Discussion ............................................................................................................................10

Luncheon Keynote Presentation Global Biomass Value Optimization: Next-Generation Alternative Fuels .........................................................................................11

Session 3 Sustainability: The International Experience...................................................................................................13

1. Opportunities and Options for B.C. in the Global Carbon Market .....................13

2. European Union Perspectives and Progress on Sustainability .............................14

3. BioEnergy: Carbon Neutral or Not?............................................................................15Discussion ............................................................................................................................15

Session 4 Outlook Bioeconomy .................................................................................................................16

1. B.C. Bioeconomy: Opportunities and Challenges ..................................................16

2. Sweden Story: Evolution of a Bioeconomy Leader.................................................17

3. Trees: New Zealand’s Future Oil Wells? ...................................................................17

4. Global Market Pulp Industry: Implications of BioEnergy/Bioproducts on Pulp Industry Cost Structure .................18Discussion ............................................................................................................................19

Concurrent Session 1 Advancements in Municipal and Community Energy .......................................................20

1. What Makes a Good District Energy Project ............................................................20

2. Community Biomass Gasification ..............................................................................21

3. Building Public Support for BioEnergy: UNBC’s Experience..............................22

4. Creating Renewable Heat for Future Generations . . . Today................................22Discussion ............................................................................................................................23

Concurrent Session 2 BioEnergy Deployment Today ................................................................................................24

1. Organic Rankine Cycle for Biomass-Fuelled Projects ............................................24

2. Putting the Pieces Together: The Biomass to Energy Puzzle—High Efficiency Moisture Reduction ......................25

3. Home-Brewed Fuel.........................................................................................................26

4. Biomass Gasifier for Energy Generation...................................................................27Questions .............................................................................................................................27

Concurrent Session 3 Pellets in the New Bioeconomy...............................................................................................29

1. The Canadian Wood Pellet Situation .........................................................................29

2. Wood Pellet Trade Scenarios .......................................................................................30

3. Canadian Clean Power Coalition: Delivering Results for Over a Decade ...............................................................................31

4. The Plan and Prospect for Biomass in Korea’s Genco ............................................32

5. Wood Pellet Shipping Strategies for Asian Markets ..............................................32

Concurrent Session 4 Advanced BioEnergy Technologies ........................................................................................33

1. Update on the “First Commercial LignoBoost™ Project” at Domtar in Plymouth, North Carolina............................................................................33

2. Biomass to Hydrogen Power: Clean Energy Systems and Green Hydrogen ...................................................................34

3. Lignol’s Flexible Biorefinery Technology .................................................................35

4. Conventional Energy Company into the State-of-the-Art Biofuel Business .......................................................................................36Discussion ............................................................................................................................36

Concurrent Session 5 First Nations, Remote Communities, and the Bioeconomy ...............................................37

1. First Nations and the Clean Energy Sector................................................................37

2. Overview: Batch Oxidation System™ Two-Stage Advanced Thermal Gasifier.............................38

3. Community-Scale BioEnergy .......................................................................................39

4. Energy Independence and an Economic Development Solution: A Woody Biomass Energy System for the Kwadacha First Nation..............................40Discussion ............................................................................................................................40

Concurrent Session 6 Torrefaction Technical Session................................................................................................42

1. Torrefaction .....................................................................................................................43

2. Torrefaction of Biomass: Overview and Summary of Andritz Activities ................................................................44

3. Torrefied Biomass as Clean Coal Replacement Fuel...............................................44

4. Bio-Coal: A Global Product for a Global Solution .................................................45

Luncheon Keynote Presentation..............................................................................................45Discussion ............................................................................................................................47



Welcome SPEAKERS Don Zurowski Chair, International BioEnergy Conference and Exhibition Society Co-chair, 5th International BioEnergy Conference

Shari Green Mayor City of Prince George, British Columbia

Michael Weedon Executive Director, B.C. BioEnergy Network Co-chair, 5th International BioEnergy Conference

In 2004, Canada produced just under one million metric tonnes of wood pellets per annum with about 300,000 coming from British Columbia, said Don Zurowski. Pellets were then a recreational fuel; wood residuals were considered wood waste. However, Europe’s example showed this fibre could be considered an economic asset, opportunity, and environmental solution.

Today, Canada produces 3.6 million tonnes of wood pellets per annum with about two million coming from British Columbia, and a number of local bioenergy projects have flourished. Zurowski highlighted the Baldy Hughes community heating system, the University of Northern British Columbia wood pellet and biomass gasification plant, Prince George’s district energy system, the planned Conifex and West Fraser bioenergy cogeneration plants, and the Sinclar Group’s organic Rankine cycle cogeneration internal combustion heat recovery system. Moreover, the Northern BioEnergy Partnership has been established to facilitate projects. Zurowski said these advancements and projects indicate the bioenergy sector in British Columbia, and in Canada, is off to a good start.

Shari Green said Prince George brims with industrial achievement, entrepreneurial activity, and leadership in bioenergy technology and forest fibre management. She announced that the new district energy system is complete and operational, with a number of city buildings currently or soon to be online. This system allows the city to meet greenhouse gas (GHG) reduction goals, reduces reliance on non-renewable fossil fuels, and dramatically decreases air-borne particulates. Green applauded the innovative thinking and leadership of the bioenergy sector in creating projects that can help communities embrace renewable forms of energy.

Michael Weedon described the B.C. BioEnergy Network, a not-for-profit society focused on helping the sector work collectively. Through major capital investments, education and advocacy, and capacity building and development, B.C. BioEnergy Network is mandated to maximize the value of B.C.’s biomass resources, develop mission-driven research and demonstration projects, reduce GHG emissions, advance the bioenergy sector through domestic and international partnerships and networks, and leverage funding to support bioenergy technology and applications. With its partners, the organization has funded almost $80 million worth of projects involving solid wood residues, pulp and paper residues, harvesting and densification, heat and power systems, waste water, existing landfill waste, solid waste, and agriculture residues.

Weedon said B.C.’s bioeconomy creates jobs and economic and social development, fosters environmental benefits, and provides clean energy exports. Although challenges include scarcity of capital, cheap and abundant hydroelectricity and natural gas, a lack of information and sharing of best practices, and a poorly developed supply chain, British Columbia has sound