Ministry of Natural Resources and Forestry
Forest Economics Section
Bioenergy:
Lighting a Fire
in Ontario
Megan Smith
Program Specialist – Forest Bioeconomy
Ministry of Natural Resources
and Forestry
November 4, 2014
H. Neufbrand, MNRF
Ministry of Natural Resources and Forestry
Forest Economics Section
Forest Industry Division
Vision:
• Dynamic industry, thriving communities,
sustainable forests
Mission:
• We promote and support a prosperous
forest industry while ensuring fair value for
the people on Ontario
Role:
• Develop a competitive business environment, facilitate
investment, promote transformation and stimulate demand
for Ontario’s forest products
Ministry of Natural Resources and Forestry
Forest Economics Section
Forest Bioeconomy Strategic Framework
Vision: Ontario is home to a competitive, sustainable, and dynamic bioeconomy
that takes full advantage of forest resources.
Goal: MNRF enables industry and communities in becoming leaders in developing products that
support the forest bioeconomy through industry process integration, collaboration and innovation.
Develop and
implement policies
that support the
diversification of
Ontario’s forest
bioeconomy.
Enhance
collaboration,
knowledge transfer
and information
sharing to promote
the forest
bioeconomy.
Enhance access to
biofibre and create
opportunities for
community/
Aboriginal
development.
Attract high value
investors and retain/
increase skilled
workforce in the
forest bioeconomy.
Maximize value from
forest-based
feedstocks and
by-product streams.
Research & Innovation: Stimulate innovation and commercialization through
research and collaboration.
Investment & Market Development: Drive industry transformation and new investment to
stimulate market demand for forest bioproducts.
Outreach: Provide the necessary tools to make informed decisions
regarding participation in bioeconomy supply chains.
Enabling Policy: Develop policies, programs and incentives to support
sustainable, bioproduct innovation and investment.
Coordination
Guiding Principles:
Alignment of initiatives and activities to provincial priorities.
Land and resource management practices support environmental, social and economic sustainability.
Ac
tio
n A
reas
Ob
jecti
ves
Ministry of Natural Resources and Forestry
Forest Economics Section
Ontario’s Forest Industry
Annual Utilization of Crown Resources:
0
5
10
15
20
25
30
35
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Vo
lum
e (
Mill
ions -
Cu
bic
Me
tre
s/Y
ear)
Scaling Year
Actual Unmerchantable Harvest
Actual Merchantable Harvest
Available Volume
Ministry of Natural Resources and Forestry
Forest Economics Section
Transforming Ontario’s Forest Products Sector
Develop a ‘new’ forest bioeconomy: • Economic activity based on the manufacture and use
of next generation products including energy in whole
or in part from bio-based resources on a sustainable
basis that spans the innovation continuum from basic
research to commercialization; and the supply chain
from feedstock to product.
maximize value of forest resources by utilizing all
forest residues and by-products of primary processes
integrate new products within the existing forest
products industry to maximize jobs and financial
returns
promote linkage, partnership and coordination
across the bioproduct value chain
S. MacPherson, MNRF
M. Smith, BIC
M. Smith, BIC
Ministry of Natural Resources and Forestry
Forest Economics Section
Forest Sector Revitalization
Goals: Examples of Initiatives:
• Expand green energy
production
• Produce value-added products
• Develop new export markets
• Attract foreign investment
• Promote Aboriginal economic
development
• Forest Bioeconomy Team (2008)
• Forest Biofibre Directive (2008)
• Centre for Research and Innovation in the Bioeconomy
(CRIBE) (2008)
• Provincial Wood Supply Competitive Process (2009)
• Forest Tenure and Pricing Review (2009)
• Ontario Forest Modernization Act (2011)
• Ontario Wood Brand (2011)
• Establishment of Ontario’s first Local Forest
Management Corporation (2012)
• Ontario Available Wood Report (2013)
• Economic Analysis of Public Policies Supporting the
Forest-Based Bioproduct Sector in Ontario and Other
Jurisdictions (2011)
• Exploring Small Scale Biomass Fired Organic Rankine
Cycle Technology as a Northern Ontario Energy Solution
(2013)
• Supporting Biomass Heat Project (2013)
J. Campbell, MNRF
Ministry of Natural Resources and Forestry
Forest Economics Section
Forest Biofibre Directive
Forest Biofibre – Allocation and Use:
• Provides general direction for the
allocation and use of forest biofibre
beyond traditional uses.
Goals:
• Create and support new opportunities
to diversify Ontario’s economy
• Encourage the use of forest biofibre to
reduce Ontario’s dependence on fossil
fuels
Source: FPAC
Ministry of Natural Resources and Forestry
Forest Economics Section
Forest Biofibre
• Forest resources from Crown forests that are
not normally being utilized for conventional
forest products and that are made available
under an approved forest management plan
Includes:
• tree tops, cull trees or portions of trees;
• individual and stands of unmerchantable and
unmarketable trees; and
• trees that may be salvaged as a result of a
natural disturbance.
M. Smith, MNRF
J. Maure, MNRF
J. Maure, MNRF
Ministry of Natural Resources and Forestry
Forest Economics Section
Forest Biofibre Directive
Pricing:
• Incentive to develop and support existing industry
• New category added to Ontario Crown Timber Charges
Minimum Charge $0.00/m3
Residual Value $0.00/m3
Forestry Futures $0.00/m3
Forest Renewal $0.00/m3
Total $0.00/m3
Undersized
Tops & Branches
Scaling Manual Standards
Unused Roundwood
Minimum Charge $0.00/m3
Residual Value $0.00/m3
Forestry Futures $1.08/m3
Forest Renewal $0.25/m3 minimum*
Total $1.33/m3 minimum
Unmarketable Fibre Unmerchantable Fibre
Bioproduct: Production of chemicals & materials, energy from the combustion
of wood or biogas, liquid fuels, and solid fuels for commercial or industrial uses
Ministry of Natural Resources and Forestry
Forest Economics Section
Provincial Wood Supply Competition
• Attract new investment in the forest sector, and support new
and innovative ventures
• Identify companies and allocate previously unutilized Crown
wood volumes
• Single largest wood supply competition
in Ontario
• 33 projects representing 3.7 million m3
• Unallocated fibre represented in
Ontario Available Wood Reports
Bioenergy 28%
Lumber 31%
Panel Products 3%
Pellets 23%
Pulp & Paper 13%
Value-added 2%
Ministry of Natural Resources and Forestry
Forest Economics Section
Ontario Available Wood Report
• Available from: https://www.ontario.ca/environment-
and-energy/available-wood-supply-report-
management-unit-summary
Ministry of Natural Resources and Forestry
Forest Economics Section
Ontario Available Wood Report
Ministry of Natural Resources and Forestry
Forest Economics Section
Ontario’s Green Economy
Ontario’s Green Policies:
• Green Energy Act
• Feed-in Tariff Program
• Cessation of coal-fired
electricity at Ontario’s power
plants
Ontario’s Bioenergy Sector:
• Evolving, but no provincial strategy
• Needs developmental support
• MNRF’s initiatives
Ministry of Natural Resources and Forestry
Forest Economics Section
Supporting Biomass Heat
Why Support
Biomass Heat?
Ministry of Natural Resources and Forestry
Forest Economics Section
Opportunities
Potential Heat Users:
• Residential – primary and secondary heat
• Commercial / Institutional (M.U.S.H. sector,
SME’s, multi-unit residential) – space and
water heating
• Industrial – space and process heat
Considerations:
• Using local fibre (forest, agriculture) and
urban wood waste
• Bagged and bulk delivery systems
• Developing the supply chain to support
future higher value bioproducts
K.A. Campbell, MNRF
Ministry of Natural Resources and Forestry
Forest Economics Section
Opportunity – Areas Without Natural Gas
Ontario’s Natural Gas Transmission Network and Franchise Distribution Areas:
Source: Making Choices: Reviewing Ontario’s Long-Term Energy Plan, Ontario Ministry of Energy, 2013
Ministry of Natural Resources and Forestry
Forest Economics Section
Natural Gas Lines and Service Area
in the Blue Sky Region of Ontario
Facilities Consuming Wood
Source: Roadmap for Biomass Industry Development in the
Blue Sky Region of Ontario, TorchLight Bioresources, 2013
Opportunity – Blue Sky Region
Source: Queen’s Printer for Ontario, 2014
Ministry of Natural Resources and Forestry
Forest Economics Section
Opportunity – North Shore of Lake Superior
• Area comprised of six
municipalities and six
First Nation communities
• Primary heat sources: oil
(34%), wood (32%) and
electricity (30%)
• Wawa – primarily oil heat
Source: NSFC
Source: MNRF
Source: NSFC
Ministry of Natural Resources and Forestry
Forest Economics Section
Opportunity – Remote Communities
Northwestern Ontario:
• 32 diesel dependent
communities
• 35 million litres of diesel
fuel used annually
• Distributed energy?
• Combined heat and
power?
Ministry of Natural Resources and Forestry
Forest Economics Section
Supporting Biomass Heat Project
Goal:
• To improve the business and policy environment
for the use of solid biomass fuels for heat in
Ontario
Approach:
• Multi-ministry & multi-partner to leverage efforts
and resources
• Coordinated & streamlined
• Multi-faceted – policy, research & development,
investment & market development, outreach
• Short, medium and long term objectives &
deliverables
M. Smith, BIC
South Shore Education Centre
– Nipissing Village
Ministry of Natural Resources and Forestry
Forest Economics Section
Wood Heating Systems <3MW ECA Interim Guidance
• Gather information
• Wood fuel characteristics
• Combustion/gasification technologies
• Air emission performance indicators
• International jurisdictional best practices
• Equipment manufacturers survey
• Stakeholder Working Group and Technical
Specialists Working Group
• Development of a new interim guidance
document for small-scale wood combustion
ECA permits in Ontario
Our Lady of Mercy Catholic School - Bancroft
M. Smith, BIC
M. Smith, BIC
Ministry of Natural Resources and Forestry
Forest Economics Section
Wood Pellet Supply and Distribution Logistics
• Marketing plan for commercial
wood pellet applications
• GIS logistical analysis
Ministry of Natural Resources and Forestry
Forest Economics Section
Bio-Heat Community of Practice
Developing a Bio-Heat Community of Practice:
• People who share a common interest and who work together
to expand their individual and collective capacity to support
the development of a domestic biomass heat market over
time.
• MNRF is committed to helping develop Ontario’s
Bio-Heat Community of Practice
• Hosted workshop in Feb 2014
• Monthly e-newsletter
• Participate in partners’ outreach
activities
M. Smith, MNRF
To sign-up for the e-newsletter contact:
Ministry of Natural Resources and Forestry
Forest Economics Section
Discussion Paper and Jurisdictional Review
• Internal government discussion paper
– ‘Biomass Heat: What’s in it for
Ontario?’
• Highlight the environmental, social &
economic reasons to support biomass
heat
• Jurisdictional review to illustrate
successes of other regions
• Associated workshop & facility tour
Ministry of Natural Resources and Forestry
Forest Economics Section
Lighting Fire in Ontario
Creating the Initial Spark…
• Identify bioenergy
‘champions’ and get them
involved
• Create a strong, unified
voice and coordinate
activities among all parties
• Identify the most promising markets and develop
niches locally
• Focus on a few single ‘asks’ that can be accomplished in
2-3 years
• Communicate, celebrate & showcase successes!
M. Smith, BIC
Ministry of Natural Resources and Forestry
Forest Economics Section
Contact Information
Megan Smith
Program Specialist – Forest Bioeconomy
Ministry of Natural Resources
Forest Industry Division
Sault Ste. Marie, ON
(705) 945-5843
S. MacPherson, MNRF M. Smith, MNRF