--or-- turning up the heat. -...
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Expanding the opportuni0es for sustainably capturing the economic, social, and
environmental poten0al of Michigan’s vast forest resources:
--or--
Turning up the heat. RaymondO.Miller
MSU’sForestBiomassInnova3onCenter,Escanaba,MIPresentedtotheMichiganForestBioeconomyConference
GrandRapids,MIFebruary1,2017
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Michigan’s Forests Today… • 54%ofMichiganiscoveredbyforests.• Forestindustryannuallycontributes$20billion&96,000jobs(fromdirect,indirect,andinducedeffects¹).• 5,000jobsinthewoodsupplychainfromforestry,logging,&trucking.• 8,000jobsinprimarymanufacturingoflumber,veneer,paper,&engineeredboard.
• 25,000jobsinsecondarymanufacturingofproductslikefurniture&paperboardproducts.
• Forest-dependentacUviUesaddanother$3billion&50,000jobs².• HunUngandtrapping.• Eco-recreaUon&tourism(hiking,biking,motorsports,sightseeing).• WatershedprotecUonandairqualityimprovements.• Ecosystemdiversity.
¹MDNR,ForestProductsIndustriesEconomicContribuUonstoMichigan’sEconomy:2016Update.²MichiganForestResourceAlliance,Michigan’sGrowingWithMichigan’sForests.
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Woody Biomass Availability Assessment
ShivanGC,RaymondMiller,andKarenPoder-WiderFullreportavailableat:hdp://msue.anr.msu.edu/program/info/wood_energy
SourceofWoodyBiomass
CurrentHarvestsofbolewood(4.60MMg/yr) 0.00RecoveredLoggingResidues(topwood&culls)fromCurrentHarvests 0.95RecoveredMortalityfromTimberlands(bolewood&topwood) 1.52RecoveredUnusedGrowth(bolewood&topwood) 0.93
3.40MillResidues 0.01ShortRotationWoodCropPlantationPotential 2.42RecoveredWoodfromUrbanTreeMortality 1.20RecoveredUrbanWoodWaste 1.00
4.63
TOTALUNTAPPEDMICHIGANWOODYBIOMASS
AdditionalBiomassAvailability Estimate(milliondryMg/yr)
8.03
Table1:PotentialnewsourcesofwoodybiomassforanexpandedbioeconomyinMichigan.
NewBiomassFromMichigan'sNaturalForests
NewbiomassFromNon-forestSourcesinMichigan
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There’s Room for “Growth”
1. ExpandtradiUonalforestproductssector,parUcularlyinfinishedsecondaryproducts–wherethemostjobsare.• Increase“importsubsUtuUon”bybuildingmoreofwhatwebuyhereinMichigan.
2. Growthe“nextgeneraUon”offorestproducts:• Compositepanels,• Glue-laminatedbeams,• Laminatedveneerlumber,• Cross-laminatedUmbers
3. Developandmarketadvancedmaterialsfromwood.• Sugarbasedfermentedproducts,cellulosenanocrystals,etc.• Ligninbasedglues,preservaUves,carbonfibers,etc.• Advancedbio-charcarbon
4. Expandtheuseoflocally-producedthermalenergy.
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Did he say the future is wood heat? Sure! Wait un0l you see the new tricks we can do with fire…
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Shall we push the “green energy” boulder up the hill again?
• Between1973and1980oilwentfrom$20to$115.JimmyCartersaidreplacingoilwasthe“moralequivalentofwar.”Round1ofrenewableenergyacUvitybeganinearnest.
• By1986oilwasbackto$23usheringinthe“Who-gives-a-damn”SUVera.
• Between2000and2008oilsoaredto$154.Leadto“EnergyPolicyActof2005”&“EnergyIndependenceandSecurityActof2007”andRound2ofrenewableenergyacUvity.
• By2016oildroppedto$32andnaturalgaspriceshita20-yearlow;usheringinthepresent“buryourheadsintheoilsands”era.
MeanwhileatmosphericCO2levelshaverisen22%(from330ppmin1973to404ppmin2017)andtheannualaveragetemperatureoftheearthhasincreasedby1Celsiusdegree(almost2F˚).
PoorKingSisyphus!
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So, why ADVANCED Wood Thermal?
• 1/3ofallenergyusedinMichiganisforspaceheat.• ManyMichigancommuniUesaresurroundedbywoodfuel.• Advanced,clean,efficientwoodthermalsystemsofvariousscalesareavailabletoday–offtheshelf.• NotcapitalintensivecomparedwithstarUngawholenewindustry.• FeedstockandlogisUcsystemsexistorsimpletocreate.• Savesusersmoneyandruraleconomiesareimproved.
It’snotyourgrandfather’swoodstoveanymore!
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Examples in Michigan
• SchoolsheaUngwithwood:• Mid-PeninsulaSchoolinRock,MI• NorthCentralSchoolsonPowers,MI• NorthDickinsonCountySchoolinFelch,MI• Republic-MichigammeSchoolsinRepublic,MI
• MarinerNorthinCopperHarbor,MI.hasathermalmicrogrid.• InsUtuUonaldistrictheaUngat
• CentralMichiganUniversityinMt.Pleasant,MI.• PinecrestMedicalCareFacilityinPowers,MI• Bordine’sNurseryinGrandBlanc,MI
• InsUtuUonalCHPsystematthe• VAMedicalCenterinBadleCreek,MI.• L’Anse-WardenElectricCompany
• And6dedicatedelectricgenerators• Cadillac,Genesee,Grayling,Hillman,Lincoln,&McBain
CasestudiesonMichiganWoodEnergyTeam’swebsite:hdp://msue.anr.msu.edu/program/info/wood_energy
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Successful project drivers • UniquefinancialopportuniUesoccur(e.g.cheapbiomass).• TheUmecomestoremodelorreplaceoldequipment.• Desiretobe“green”andsetagoodexample.• OpportunitytobedisUnctinthemarket.• IncenUveslikecostsharing,grants,ortaxbenefits.• Loanguaranteesorlow-costloans.• FreeuniversityoragencyexperUse.• Favorableandstablepoliciesareadopted.• Favorableregulatory,inspecUon,andinsuranceclimates.
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SupplyChainModelforBulkWoodPelletResidenUalHeaUng
Growstreesforfeedstock,receives“stumpage”
payments
Harveststrees&deliversfeedstocktopelletmill
Convertsrawfeedstockintoconsumer-gradepellets
Sells,installs,andservicesheaUngsystems
Deliverspelletstohomes
Enduserofequipmentandpelletfuel
Savesbigmoney??
FeedstockGrower
FeedstockProcessor
(feedstockbroker)PelletMill Distributor
(pelletbroker)ResidenUalCustomer
ThisIShappeningNOWbothinEuropeandinNewEngland
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What do we need to make this work in Michigan?
1. Sensibleregulatoryandinsuranceenvironment.
2. Competentsystemdesigners,installers,andmaintainers.
3. Sustainableandaffordablesourceoffuel.
4. Bulkfueldeliverysystem.5. Sufficientnumberofcustomers
withinanareatosupportthewholesystem.
6. Incen3vestogetthingsstarted.
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Over18%ofMIhouseholdsheatwithLPgas,oil,or
electricity.
So,almost700,000householdsare
spendingmorethan$1,300/yrforheat.
CompiledbyShivanGCfromUSEnergyInformaUonAdministraUon(EIA)-hdp://www.eia.gov/
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Thesehouseholdsareconcentratedintheblue-coloredcounPes–usuallyplacesinneedofruraleconomic
developmentANDabundantwood
resources.
CompiledbyShivanGCfromUSEnergyInformaUonAdministraUon(EIA)-hdp://www.eia.gov/
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Impacts and Implica0ons
• UsingdomesUcenergyretainswealthinMI.• Createsnewruraljobsto:
• Growfeedstock• Processandhandlefuel• Design,install,&maintainthermalsystems• ManufactureandselladvancedheaUngsystems
• LocalcommuniUesandciUzenssaveenergydollars.• Fossilcarbonemissionsarereduced.• Robustmarketsforlow-valuebiomassenablesmanagementtosustainforesthealthandproducemorehighervalueproducts.
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Notexactlytrue…theUSusedpencilstoounUltheFischerPenCompanydevelopedthespacepenattheirownexpense.NowboththeUSandtheRussiansbuyandusethespacepenbecausepencilscreatedebrisinthecabinandareflammable–twospacehazards.Butthismakesanicephoney-balonyallegory.