--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. Raymond O. Miller MSU’s Forest Biomass Innova3on Center, Escanaba, MI Presented to the Michigan Forest Bioeconomy Conference Grand Rapids, MI February 1, 2017

Transcript of --or-- Turning up the heat. -...

Page 1: --or-- Turning up the heat. - MiFBImifbi.org/wp-content/uploads/2017/03/Wood-Innovation-Ray-Miller.pdf · Turning up the heat. Raymond O. Miller MSU’s Forest Biomass Innovaon Center,

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.