Sustainable Forest IndustriesOpening Pathways to Low-Carbon Economy
ACPWP-52 MontebelloJukka Tissari
FAO Forestry Department23 May 2011
Opening Messages
1. Forest industry is in the core of low-carbon economy
2. There is room for improvement within the three pillars of sustainability
3. There are much greater new pathways in de-carbonazing the economies
4. Innovation and partnerships are imperative
Forest industry is in the core of low-carbon economy
An intelligent extension to the nature’s production process and carbon cycle
Paper-making process
Liquid bio-fuels
Generation of electricity & heat
Chemical refining
Electricity grid
Transport fuel markets
District heating
Chemical markets
Recovered paper
Industrial roundwood & chips
Stumps, residues, bark, sawdust & recycled wood, processing waste
Pulp-making process
Pulp markets
Paper markets
Raw material flows
Electricity flows
PPuullpp aanndd ppaappeerr fflloowwss
Heat flows
Black liquor flows
Gas, liquid effluents and intermediary chemical flows
Water
Liquid bio-fuels and green chemicals
Water/wastewater flows
Wastewater treatment
Three Pillars of Sustainability in Forest Industries
1. Economic:• Issues: sound use of resources, innovation vs. market saturation,
overcapacity vs. competitiveness shifts, emerging countries’ development stages, cost of compliance (carbon, legality, certification)
2. Environmental:• Issues: certification, LCA, product & company carbon footprints,
energy savings and efficiency gains, lowered emissions to water and air, compatibility with energy and climate change policies
3. Social:• Issues: legality, employment, collaborative forestry, community
engagement, education, lifestyles
Responses of Forest Industries to Economic Sustainability
Issues:• sound use of
resources
• innovation vs. market saturation
• overcapacity vs. competitiveness / investment shifts
• emerging countries’ developmental stages
Responses: resource efficiency (fiber, water, chemicals) and recycling improved SFM, integrated land-use
proactive companies innovate & change business models mature markets home; growing emerging markets product and process innovation, partnerships, leveraging finance
value-added per cubic meter of industrial RW used grows in woodworking industry but falls in P&P, regain competitive position by relocating investments
unequal distribution of benefits of globalization copy or leapfrog steps in forest industry development
The Land Issue5 Fs
Food; [animal] Feed; Forest [conservation]; Fibre and Fuel
REDD+
Innovation Pathways of Sustainable Forest Industries
1. Meeting the multifunctional demands on forest resources and their sustainable management
2. Enhancing the availability and use of forest biomass for bio-based products and energy
3. Developing of intelligent, resource and energy efficient manufacturing processes
4. Developing of innovative products for changing markets and customer needs
Innovations along the Value Chains1. Forest harvesting: simultaneous localization and mapping,
real-time forest modeling and ICT, extracting multiple biomass streams: grass-root solutions for scaling up the bio-economy
2. Mechanical forest industry: mostly incremental innovationon existing products and processes, comb. heat & power, composite products and building systems, product carbon sinks and energy efficiency
3. Chemical forest industry: game-changers from bioenergy, biochemicals and biomaterials, biofuels, high-performance fibres, intelligent paper/packaging, nanotechnology, lowered GHG emissions through substitution of oil-based products
Past to present: Proprietary R&D and incremental innovations
Future: Increasingly open innovation approaches, partnerships, multidisciplinary teams, higher ambitions
Leapfrogging through Investments?• Old mills in the North: conversion into a biorefinery platform, energy and emission
improvements, continue weathering cyclical BAU, or divest• New mills in the South: best technologies and largest scale, energy improvements,
generate carbon offsets and credits• Old, small mills in the South: incremental improvements, or divest• Pace of change: BRICs make 20% of wood pulp, 30% of paper and board
Wood Pulp (mill. tons) Paper and Paperboard (mill. tons)
0
20
40
60
80
100
120
140
160
180
200
1965
1970
1975
1980
1985
1990
1995
2000
2005
BRICs
Developing
Developed
0
50
100
150
200
250
300
350
400
450
1965
1970
1975
1980
1985
1990
1995
2000
2005
BRICs
Developing
Developed
Responses of Forest Industries to Environmental Sustainability Issues:• certification
• lowered emissions in water and air
• compatibility with energy and climate change policies
Responses: voluntary compliance started before mandatory becoming enforced by new trade legislations linkages to FLEGT, forest carbon MRV
lowered process water usage, treatment and closing the loops emissions per unit of output, end of pipe capture
energy efficiency is improving in most regions and most parts of the industry process improvements, increased use of self- generated energy from waste, co-products and biomass seek political influence and inclusion of forest management into REDD+ and other climate change accords industry promotes wood and paper products as more environment, climate-friendly than alternatives de-carbonizing economies
Energy Efficiency, Water & Emissions• Despite increased output levels, the global pulp and paper industry consumed
only marginally higher amount of steam and electricity in 2009 than in 2000
• Strive to improve performance against BAT has resulted in 15% energy savings, mainly from the better circulation and re-use of process water, larger scales of mills and higher consistencies of pulp
• Water consumption declined from 37 bill. m3 to 31 bill. m3 in 2000-2010
• Producers in the USA pledge by 2020 to: increase the paper recovery for recycling >70% improve energy efficiency in purchased energy use by min. 10% reduce the intensity of the industry’s GHG emissions by min. 15% consider an impressive 50% freshwater reduction target
• P&P producers in Brazil raised the use of black liquor & biomass to 84% of energy 2009• Europe's industry has lowered its specific CO2 emissions (measured in kt of CO2 / kt of
product) by 42% in1990-2009
Greenhouse Gas Emissions
• Globally, direct emissions intensity (direct GHG emission per product ton) declined by 13% in the pulp and paper industry, and by 16% in the wood products industry between 2002-2007
• Total GHG emissions from the forest products value chain were 890 mill. tons CO2 equivalent per year
• Net sequestration of CO2 from the atmosphere back into the forest products industry value chain was 424 mill. tons CO2e in 2007
• Nearly a half of the emissions were offset by product sinks; out of manufacturing related emissions, the products sequestered 86%
Responses of Forest Industries to Social Sustainability
Factors:• collaborative
forestry
• community engagement
• employment
• education
• lifestyle changes
Responses:
out-grower schemes, conflict resolution capacity & dialogue to engage local communities in wood production and SFM
other than productive activities: schools, health knowledge of local conditions, social structures in communities and cultural aspects
mostly local workforce, including seasonal / part-time direct vs. indirect, multiplier effects higher mechanization and efficient processes
basic & vocational, community members & payroll staff, skills & safety
educating consumers and designers, specifiers low-carbon products promotion, communication
Engage Communities in SFM and biomass production
When competing land uses, subsistence farming and landless people come across unprepared industry...
... it may be too lateInter-cropping
Silvipastures
Communication on sustainabilityResearch on the CSR claims of the Top-100 global pulp, paper, and packaging producers (Han 2010):
Top claims were:“Resource and energy use”“Sustainable forestry”“Pollution and waste management”“Mitigating climate change”“Community support”“Health, safety, and well-being”
The least claimed were:“Ethical leadership”“Responsible/fair remuneration” of the workforce“Promoting social and economic inclusion” in the supply chains“Mapping key stakeholders and their main concerns”
Inclusive communication on difficult technical details
The industry is:
improving sustainability of resource use employing local workforce recycling discarded products back into production, energy increasing energy security and efficiency reducing product carbon footprints
The punch line is about reconciling production with consumption: sustainable products and energy for responsible consumers
Three steps of effective communication:
(i)demonstrate mastery of the technical issues(ii)demonstrate caring about the matter(iii)propose a plan to fix things
Repositioning Forest Industry• Forest-based carbon: green-blue solutions (REDD+, CDM, VCM)
• Sawnwood and wood-based panels: a solution-provider to the “Built Environment and Living Habitat” cluster
• Pulp industry: a biorefinery platform for “Green Energy, Chemicals and Materials” cluster
• Paper and packaging board industry: partner for the “Intelligent Media and Functional Packaging” cluster
Quote: ”A recent AF&PA survey revealed that 80% of the American youth opined they cannot live without paper.”
Pathways of Forest Industry: break out of BAU Tonnages: slowing growth of basic
P&B business in traditional markets
Shares: consumption growth shifting to Asia, Latin America, Africa
2050 population age pyramids are explanatory: compare India, China, Africa (Ethiopia)
The Energy PathwayNuclear 6%
Renewables 13%
Coal 25%
Gas 21%
Oil 35%
77%
9%8% 4%
87%
15%
Bioenergy
Hydro
Other RenewablesMunicipal and Industrial Waste
Agricultural Crops and By-Products
Woody Biomass
Recovered Wood 6%
Agriculture 10%
MSW and Landfill Gas 3%
Charcoal 7%
Forest Residues 1%
Black Liquor 1%
Fuelwood 67%
Wood Industry Residues 5%
Energy Crops 3%
Agricultural By-products
4%
Animal By-products
3%
World primary energy mix
Biomass sources in primary energy mix
IPCC prediction: 77% of primary energy could come from renewable in 2050 (407 Exajoules, needs $12 trillion investments by 2030!)
Forest Industry Pathways for Bioenergy, Fuels
Thermo-Chemical
Combustion Gasification Pyrolysis
Fuel Gases (CO + H2)
Char & Liquids
No AirPartial airExcess air
Liquid transportfuels
SNG, Hydrogen
Bio-Chemical Physical
Hydrolysis & Fermentation
PelletsBriquettes
Heat & Power
Heat & Power
Heat & Power
Liquid transport fuels
Heat & Power
1
2
3 4
5 6 7
8
9
Torrefiedpellets
Bio-carbon
Heat & Power
Sugar is the Future’s Oil?• Cellulose and hemi-cellulose contains C5, C6 sugars• Stable, long polysaccharides, difficult to break up, lignin impact• Cane, corn easier to process into bioethanol
Main Sugars from Biomass
Sugar to convert
Fuels and Chemicals(or building blocks)
Glucose (C6) EthanolFructose (C6) Glycerol, lactic acid, 1,3-
propandediol, (OH-) propionic acid
Xylose (C5) Butanol, 1,4 succinic, fumaric and malic acids
Arabinose (C5) Itaconic acid, xylitol, levunic acid
Mannose Galactose
(C6) Citric acid , lysin, gluconic acid, 2,5 furan-dicarboxylic acid
Path:
Crystalline cellulose >>
Glucose>>
Fermentation >>
Fuels & chemicals
Solid and Liquid Biofuels: a Growing Energy Cargo Wood pellets for
energy & chips to pulp: the fastest growing forest product segments(15-20 mill. tons/yr. both)
Global fuels market: $4 trillion.
Biofuels: from 55 mill. tons (oil-eq) to 750 mill. tons 2050
What are the Projects in Cellulosic Ethanol Biorefinery Pathway?
North America:• Not one single technical setup, but several fuel types, technical options and local
configurations• High levels of public support in pilot & demonstration plants in the USA (46 biorefinery
projects funded); Renewable Fuel Standard 2 from EPA• DOE: $564 mill. to 19 integrated biorefinery projects, 8 focusing on wood biomass,
USDA $47 mill. to eight new biorefinery projects (inc. Domtar) • Forerunners mainly outside forest industry: Cobalt, KiOR, Codexis, Mascoma, INEOS,
Enerkem, Bluefire Ethanol, etc.• The US pulp industry benefited from alternative fuel mixture credit for black liquor, now
cellulosic biofuel tax credit in place• In Canada, Fed. Gov’t invests in mill upgrades under Pulp & Paper Green
Transformation Program ($1 bill.) & Transformative Technologies Pilot Scale Demonstration Program (Tolko, Cascades, Canfor)
• Others: G2 BioChem, Rentech, Lignol, Woodland Biofuels
What are the Other Projects for Biofuels Biorefinery Pathway?Worldwide:
Type of biorefinery CompaniesSyngas from forest residues: FT-diesel, chemicals Stora Enso & Neste Oil, Varkaus, Finland
Choren, Freiberg, Germany
TRI, USA
Nexterra, Canada
Syngas from black liquor: FT-diesel, Chemrec, Sweden, Smurfit-Kappa millBioethanol and chemicals from wood SEKAB, Örnsköldsvik, SwedenBioethanol and acetic acid from hemicelluloses Value Prior to Pulping (VPP): Agenda 2020, the U.S.
Department of Energy and eight pulp and paper companies
Biodiesel from tall oil Sunpine, SwedenBioethanol from straw Abengoa, Salamanca, Spain
Dong Energy, Denmark
Ensus Carlyle, UK
FT-diesel from straw FZK, GermanyPyrolysis oil from forest biomass Ensyn, Canada & Honeywell, Chevron, Tolko IndustriesFast pyrolysis to produce power and transport fuels from oil palm biomass
Premium Renewable Energy, Malaysia with Ensyn
Hemicelluloses to buthanol NewPage, Flambeau River, Wisconsin, USAPulp mill biorefinery concept Stora Enso & Metso, Finland, Domtar, CanadaCellulosic ethanol from wheat straw, paper mill waste Chempolis, Finland & two papermills in China
Bioethanol from straw and forest waste Borregaard, Norway
Timeframe: 3-5 years before large commercial scale mills operate
Intermediate Pathway: Chemicals • Chemicals industry uses some 10 different raw materials (fossil fuels, minerals, salt,
water and biomass, etc.)• Some 85% of all chemicals are produced from 20 base chemicals (ethane, propane,
butane, ammonia, benzene, methanol, chlorine, etc.)• Base chemicals are converted to some 300 intermediate chemicals (acetic acid,
formaldehyde, urea, ethane oxide, acetaldehyde, etc.)• Some 35,000 consumer products (plastics, solvents, detergents, pharmaceuticals,
etc.) are produced from the intermediates • Canada’s BioPathways Project estimated a $200 billion market for green chemicals
• Integrating forest industry platforms into these chains & processes opens up innumerous end use segments, where consumption is rising especially in emerging economies
• A huge opportunity for forest-based sector, but raw material concerns (availability, most valuable use, cost) require strategic assessment.
ThankYou!