purpose grown trees as an economical and sustainable
TRANSCRIPT
Purpose Grown Trees as an Economical and Sustainable Feedstock Source for Bioenergy Production
2009 TAPPI International Bioenergy and Bioproducts Conference
October 14, 2009
2009 TAPPI IBBC 2
A Global Leader in Tree Improvement, Production & Sales
• The largest producer of trees for planting• >275 million trees sold per year
• Technology leader• Unique platform is built• Most forestry field / regulatory
trials• Pipeline of world-class elite
germplasm• Global with business operations in:
• Southeast U.S.• New Zealand & Australia• Brazil
• A team with experience, skill and credibility for delivering operational, technical and business success
Summerville, SC – Global HQ
Campinas, SP, BR–S. America HQ
Whakatane, NZ –Australasia HQ
Americas• 250MM Sales• 33% share of pine market• 20% share of hardwood market
Australasia• 23MM Sales• 45% NZ Radiata market• 20% Australia softwood market
2009 TAPPI IBBC 3
Demand for Woody Biomass is Growing
Advanced Biofuels
Demand Drivers
Pellets (Heat & Power)
Electricity (Direct & Co-firing)
Pulp, Paper & Wood Products
2009 TAPPI IBBC 4
Trees Have Fundamental Advantages as a Biomass Feedstock
Living Inventory
“Storage on the Stump”
• Reduced storage and inventory holding costs• Reduced losses due to shrinkage and
degradation• Mitigation against annual yield fluctuations
Year Round Harvest
• Reduced infrastructure and capital needs for harvest and transport of biomass
Multi-Year Rotation
• Fewer acres planted annually improves deployment feasibility
• Extended periods with limited disturbance reduces environmental impact
Established Market
• Multiple end uses provide landowner flexibility• Sustainable production practices in place• Efficient harvest and transport systems
developed
2009 TAPPI IBBC 5
Bio
mas
s D
eman
d
Demand Drivers Over Time
Pulp, Paper & Wood Products
Pulp, Paper & Wood Products
Electricity Direct & Co-
firing
Electricity Direct & Co-
firing
Advanced Biofuels
As Demand for Woody Biomass Increases, there is a Focus on Improving the Productivity of Trees
Electricity Direct & Co-firing
Bio
mas
s/A
cre
ArborGen Product Improvements Over Time
Improved Control
2009 TAPPI IBBC 6
Several Technologies Improve Tree Productivity
Improved Germplasm
Management Systems
Biotech Improvements
• Improved growth • Stress tolerance• Improved wood quality
2009 TAPPI IBBC 7
Biotechnology Brings a Step-Change in Tree Productivity
Time and Product Testing
Val
ue
Seedlings• Elite Material•MCP – opportunity for near-term landowner gains
Varieties• Genetic Uniformity• Increased Productivity• Improved Product Mix• Management Efficiency
Value-Enhanced Traits• Increased Growth Rates• Stress Tolerance• Improved Wood Quality• Breakthrough Applications
Improved Control
2009 TAPPI IBBC 8
Case Study: Hardwood Productivity Potential through the Application of Knowledge & Technology
11,576kWh/dry ton biomass 2100 gallons ethanol/dry ton biomass
Biomass Yield
Biopower Yield 1
Ethanol Yield 2
Baseline
Naturally Regenerated
0.5 Dry Ton/Acre/Year
800 kWh/Acre/Year
150Gallons/Acre/Year
Planted Trees
5 to 7
7,900 to 11,000
500 to 700
Biomass Management
6 to 8
9,500 to 12,600
600 to 800
Potential
Biotech Improvements
17.5 to 22+
27,600 to 35,500
1,800 to 2,300
2009 TAPPI IBBC 9
Case Study: Pine Productivity Potential through the Application of Knowledge & Technology
11,576kWh/dry ton biomass 2100 gallons ethanol/dry ton biomass
Biomass Yield
Biopower Yield 1
Ethanol Yield 2
Baseline
Currently Planted
3 Dry Tons/Acre/Year
4,600kWh/Acre/Year
290Gallons/Acre/Year
Biomass Management
4 to 6
5,700 to 9,500
360 to 600
Improved Germplasm
7 to 9
11,000 to 14,800
700 to 940
Potential
Biotech Improvements
11 to 13
18,000 to 21,000
1,140 to 1,330
Improved Control
2009 TAPPI IBBC 10
High Productivity Enables Close Proximity
• A processor consuming one million dry tons of wood from forest residues would require 35 miles to support it.
• Biotechnology can reduce the area needs by over 90 percent
Processing Facility
Forest Residues
Planted Trees
Biomass Management
Biotech Improvements
Assumptions:• One million dry tons/year consumption• 20 percent land utilization
2009 TAPPI IBBC 11
Pipeline of Conventional and Biotech Products to Address Biomass Markets in the Southeast
Eucalyptus
Conventional Eucalyptus, South Florida Eucalyptus,
Freeze Tolerant Eucalyptus (FTE), FTE-Gen2
Populus
Short-Rotation Populus(SRP), SRP-Gen2
Pine
Pine Seedlings (OP, MCP™), Varieties, Short Rotation Loblolly (SRL),
SRL-Gen2
2009 TAPPI IBBC 12
High Productivity in Freeze Sensitive Tropical Eucalyptus
27 Months Growth –Central Florida
Pulpwood Yield Potential:
7.5 – 12.5 dry tons/ac/yr
Biomass Yield Potential:
12.5 – 17.5 dry tons/ac/yr
Eucalyptus Example
2009 TAPPI IBBC 13
Freeze Tolerant Eucalyptus (FTE) Demonstrated in Multiple Field Trials
• Results from first winter in South Carolina
• Results from second winter in Alabama
Field results indicate freezing tolerance to ~16°F (- 8°to - 9°C)
Control
Lead Lines + Control
Lead Line
Eucalyptus Example
2009 TAPPI IBBC 14
Growth Rates Comparable to the Brazilian Standard
• Tree volumes were calculated for lead biotech lines in 27 month trials in central Florida and southern Alabama using an accepted volume equation from Brazil
• Full rotation (seven years) volume projections were made using an accepted growth and yield model from Brazil
Eucalyptus Example
Central Florida
Southern Alabama
Height (ft) 48 40DBH (in) 4.5 4.5Yield (dry tons/acre) 18 16
Central Florida
Southern Alabama
Site Index (ft) 113 105Basal Area (ft2/acre) 211 175Yield (dry tons/acre) 52 42MAI (dry tons/acre/year) 15 12
2009 TAPPI IBBC 15
• Southeastern pine plantations represent the largest market for planted trees in the United States
• Landowner management decisions are currently driven by sawtimber production
• Biomass focused management regimes have the potential to improve biomass productivity and provide high returns to landowners
Purpose Grown Pine has Excellent Potential as a Bioenergy Feedstock
PineExample
2009 TAPPI IBBC 16
• Hybrid sawtimber + biomass planting in South Carolina at age six• 27 dry tons/acre @ thinning (eight years)
• 106 dry tons/acre @ clearcut (Sawtimber: 65, CNS: 22, Biomass: 19)
Broad crown/ large branched
OP biomass take-out row
Narrow crown/ small branched MCP sawtimber
row
Improved Productivity with Alternative Management Regimes
• High density varietal pine trial in Georgia at age six• Projected to yield 62 dry
tons of biomass per acre @ age 11
Sawtimber Tree
Biomass Tree
Sawtimber Tree
Biomass Tree
8’
4’10’
PineExample
2009 TAPPI IBBC 17
Summary
• Demand for woody biomass is on the rise
• Trees have numerous supply chain advantages over alternatives
• Trees are and will be managed to meet sustainability targets• ArborGen technology and insight is revolutionizing productivity
potential
• Increased yields
• Shortened rotations
• Increased environmental adaptability
• Higher quality wood• Trees have the advantage of filling the raw material requirements for
multiple markets (pulp and paper, energy, wood products)