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Forest Products Society, Portland,                                                         June 20 2011  The Status of Den...
Overview  • Markets  • California situation  • Approaches      –   Go big      –   Go re-deployable      –   Go local     ...
Densified Wood Products  • Fire logs      – Wood (Presto logs, briquettes, pucks etc)  • Pellets      – Domestic      – Co...
Reminder: Typical US Pellet MillExample: 40,000 ton/yr pellet facility•100 BDT/day sawmill residues•Pay up to $50/BDT•$5.5...
General market situation  • Global installed capacity: ~20m tons  • US capacity: ~4.1m tons (69 mills)  • Raw material sho...
Densified fuels in California  • Anecdotal evidence suggests a    large residential market for    densified fuels exists  ...
California densified  fuels• In 2010 6 operational  mills (4 pellet, 2 fire  log)• All small <5,000 ton/yr• Based on local...
Why limited manufacturing capacity in CA?• Less sawmill residuals   – 27 primary wood processing facilities closed from   ...
California Biomass Power Plants                                http://ucanr.org/BiomassPower                              ...
Why limited manufacturing capacity in CA?• Less sawmill residuals   – 27 primary wood processing facilities closed from Ja...
Project Approaches  •   Go big  •   Go re-deployable  •   Go local  •   Go high value  •   Go micro                       ...
Go bigEnligna, Port of Sacramento• 184,000 BDT pellet mill for export  market• 5.8 MWe cogeneration facility• Raw material...
Go big – Enligna Approach  • Start with export market    (Europe/Asia) – long term supply    contracts  • Leverage existin...
Go big – Enligna Status • Conditional use permit in   place • AQ permit in place • Negotiations ongoing for sale   of proj...
Go re-deployable  Woodwork, Trinity County  • 10,000 tons/yr pellets  • Raw material:      – Small diameter trees      – T...
Go re-deployable - Approach • Rapidly re-deployable   BioJoule (UK) unit • Move equipment to site near   forest management...
Go re-deployable - Status    • Dead                                  Woody Biomass Utilization  http://ucanr.org/WoodyBiom...
Go local  Sonora Brick Mill  • 18,000 tons/yr brick mill in Sonora  • Raw material:      – Forest chips                   ...
Go local – Sonora Approach  •   Make a product that competes with cordwood  •   Uses forest waste  •   Forest health benef...
Go local – BMFP Status • USDA Forest Service Woody   Biomass Utilization Grant secured • Staged approach • Impacted by cha...
Go high value Goodwood Products, Watsonville • <2,000 tons/yr fire logs • Raw material:     – Forest residues     – Arbori...
Go high value – Goodwood Approach• Produce a desirable easy to use high  value fire log   – Existing stoves/fires   – “Cam...
Go high value – Goodwood Status  • Demand outstrips supply  • Partnership with moulding company to    outsource production...
Go micro  Red Rooster Fuels, Humboldt County  • 1,000 tons/yr pellets  • Raw material:      – Small diameter trees (Dougla...
Go micro – Approach• Capitalized pellet mill, debarkers and  chippers• Existing firewood producer• Husband and wife team• ...
Go micro – Status• Pellets well received• Demand outstripped supply• Manufactured pellets to order (no inventory  held)• S...
Conclusions  • Densified fuels are proven production    technologies serving existing markets  • Many new projects in USA ...
Thank yougmayhead@berkeley.edu             Help with:(510) 665-3662                    • Grantshttp://ucanr.org/WoodyBioma...
Project approaches•   Use alternative feedstocks•   Use different approaches to drying feedstock•   Use dry feedstock•   D...
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Session 10 ic2011 mayhead

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Transcript of "Session 10 ic2011 mayhead"

  1. 1. Forest Products Society, Portland, June 20 2011 The Status of Densified Wood Fuel Projects in California Gareth J Mayhead John R Shelly University of California Berkeley In partnership with: USDA Forest Service Region 5 Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  2. 2. Overview • Markets • California situation • Approaches – Go big – Go re-deployable – Go local – Go high value – Go micro • Conclusions Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  3. 3. Densified Wood Products • Fire logs – Wood (Presto logs, briquettes, pucks etc) • Pellets – Domestic – Commercial/dirty • Bricks Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  4. 4. Reminder: Typical US Pellet MillExample: 40,000 ton/yr pellet facility•100 BDT/day sawmill residues•Pay up to $50/BDT•$5.5-$7m build cost•24/7 operation•3-5 acre site•May also make fire logs•30-35 jobs Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  5. 5. General market situation • Global installed capacity: ~20m tons • US capacity: ~4.1m tons (69 mills) • Raw material shortages • Slow stove sales (low propane and oil prices, economy) • Price reductions in domestic pellets • In 2010 weak Euro impacted market for co-firing with coal (still a growth area) • Tough market at present but potential for future growth Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  6. 6. Densified fuels in California • Anecdotal evidence suggests a large residential market for densified fuels exists • 18 National Forests (20m acres) – Link to forest health projects? Source: USGS Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  7. 7. California densified fuels• In 2010 6 operational mills (4 pellet, 2 fire log)• All small <5,000 ton/yr• Based on local markets• 3 proposed mills• Larger scale 10,000- 200,000 ton/yr Source: USGS Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  8. 8. Why limited manufacturing capacity in CA?• Less sawmill residuals – 27 primary wood processing facilities closed from Jan 2000-June 2009*• Sawmill residuals are in demand by other markets: – Biomass power (~32 power plants) *Source: California Forestry Association Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  9. 9. California Biomass Power Plants http://ucanr.org/BiomassPower Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  10. 10. Why limited manufacturing capacity in CA?• Less sawmill residuals – 27 primary wood processing facilities closed from Jan 2000-June 2009*• Sawmill residuals are in demand by other markets: – Biomass power (~32 power plants) – Landscape amendments – Animal bedding• Other markets can often pay above $50/BDT for residuals• Other non-traditional feedstock sources (slash?) require a different approach to business *Source: California Forestry Association Woody Biomass Utilization http://ucanr.org/WoodyBiomass
  11. 11. Project Approaches • Go big • Go re-deployable • Go local • Go high value • Go micro Source: USGS Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  12. 12. Go bigEnligna, Port of Sacramento• 184,000 BDT pellet mill for export market• 5.8 MWe cogeneration facility• Raw material: – Construction and demolition (hog fuel) – Forest: bole material (chipped or ground including bark) Source: USGS – Slash subject to specification – Agricultural waste – Arboricultural waste Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  13. 13. Go big – Enligna Approach • Start with export market (Europe/Asia) – long term supply contracts • Leverage existing port facilities • Develop local markets for: – Domestic pellets – Commercial pellets - supplying institutional boilers (BioEnergy Solutions) • 360o sourcing radius • Diversified feedstocks to manage supply risk Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  14. 14. Go big – Enligna Status • Conditional use permit in place • AQ permit in place • Negotiations ongoing for sale of project Source: Enligna Source: Enligna Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  15. 15. Go re-deployable Woodwork, Trinity County • 10,000 tons/yr pellets • Raw material: – Small diameter trees – Tops Source: USGS Source: BioJoule Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  16. 16. Go re-deployable - Approach • Rapidly re-deployable BioJoule (UK) unit • Move equipment to site near forest management operation • Relocate when work is complete • Partnership with existing pellet manufacturer to sell product • Bed dryer • Small scale CHP sized to heat load • Automated – few staff required Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  17. 17. Go re-deployable - Status • Dead Woody Biomass Utilization http://ucanr.org/WoodyBiomassSource: BioJoule
  18. 18. Go local Sonora Brick Mill • 18,000 tons/yr brick mill in Sonora • Raw material: – Forest chips Source: USGS Source: BMFP Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  19. 19. Go local – Sonora Approach • Make a product that competes with cordwood • Uses forest waste • Forest health benefits a selling point • Use of a novel bed drying system • Build on existing brand • Develop local commercial markets Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  20. 20. Go local – BMFP Status • USDA Forest Service Woody Biomass Utilization Grant secured • Staged approach • Impacted by changing market conditions • Grant cancelled • Dead Source: BMFP Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  21. 21. Go high value Goodwood Products, Watsonville • <2,000 tons/yr fire logs • Raw material: – Forest residues – Arboricultural waste – Mill residues Source: USGS Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  22. 22. Go high value – Goodwood Approach• Produce a desirable easy to use high value fire log – Existing stoves/fires – “Campfire in a box” – High end resorts• Niche marketing based on environmental benefits Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  23. 23. Go high value – Goodwood Status • Demand outstrips supply • Partnership with moulding company to outsource production Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  24. 24. Go micro Red Rooster Fuels, Humboldt County • 1,000 tons/yr pellets • Raw material: – Small diameter trees (Douglas fir) – Tops (Douglas fir) Source: USGS Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  25. 25. Go micro – Approach• Capitalized pellet mill, debarkers and chippers• Existing firewood producer• Husband and wife team• Local markets (stoves and animal bedding)• Bagged or bulk delivery Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  26. 26. Go micro – Status• Pellets well received• Demand outstripped supply• Manufactured pellets to order (no inventory held)• Streamlining system to produce 10 ton batches• Relocation due to site issues Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  27. 27. Conclusions • Densified fuels are proven production technologies serving existing markets • Many new projects in USA = oversupply • Projects need to identify their market niche • Project finance is challenging • Projects exist in California • Recession has impacted implementation • New approaches are needed to be successful (scale, feedstocks, products, markets) Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  28. 28. Thank yougmayhead@berkeley.edu Help with:(510) 665-3662 • Grantshttp://ucanr.org/WoodyBiomass • Technologyhttp://twitter.com/WoodyBiomass • Markets • Networks • Healthy skepticism Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
  29. 29. Project approaches• Use alternative feedstocks• Use different approaches to drying feedstock• Use dry feedstock• Develop non-seasonal markets• Produce a product that competes with cordwood• Partner with an existing densified fuel manufacturer – Technical expertise – Market access• Manage costs - leverage existing assets• Serve local markets – reduce transport costs• Grow production capacity gradually with market growth• Serve export markets to grow local markets Woody Biomass Utilizationhttp://ucanr.org/WoodyBiomass
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