Woody Biomass Markets in Ohio: Current Use and Emerging Opportunities

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Woody Biomass Markets in Ohio Current Use and
Emerging Opportunities
Matt Bumgardner U.S. Forest Service Northern
Research Station mbumgardner_at_fs.fed.us
Community Energy Solutions Heating Rural Schools
Facilities with Woody Biomass Hocking College -
Logan, Ohio January 16, 2009
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Outline

• Overview of solid hardwood markets
• How this affects residue and biomass markets
• Residue/biomass availability and opportunities in
  Ohio

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Eastern hardwood lumber production

• - Four years of decline from 1999-2003
• (this last happened in 1966-1970)

Source W. Luppold, U.S. Forest Service
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Ohio hardwood lumber production,1996-2007
Source W. Luppold, U.S. Forest Service
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Residue Production in Ohio-follows markets for
solid wood products!
Hardwood lumber production in Ohio declined by
26 over the period.
-30
-62
Source Ohio TPO Database
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China to overtake U.S. as largest manufacturer
Recent headline

• 2007
• U.S. 20 of worlds mfg. output
• China 13
• Forecast for 2009
• U.S. 16
• China 17 (11,783 billion)

Source Financial Times 8/10/08
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Employment, U.S. wood household furniture
industry
Source Bureau of Labor Statistics, 2008
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Nonupholstered household wood furnituremajor
U.S. import sources
(Customs Value)
Data International Trade Administration
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Hardwood lumber consumption trends
Construction and remodeling now about 2X larger
than furniture
Includes cabinets, flooring, and millwork
Luppold and Bumgardner. 2008. Forest Products
Journal. 58(5)6-12.
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Ohios role in furniture manufacturing
Data source Bureau of Labor Statistics 2007
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Ohios role in cabinet manufacturing
Data source Bureau of Labor Statistics 2007
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U.S. consumption of wood household furniture
and cabinets
Consumption domestic shipments imports -
exports
Shipments Census ASM (http//www.census.gov/mcd/
asmhome.html ) Imports Exports ITA
(http//www.ita.doc.gov/td/ocg/imptab.htm ) NAICS
337122 337110
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Value of private constructionin the U.S.
In October 2008, there was a 10-month supply of
existing homes on the market A healthy level
is closer to 5-6 months
Sources U.S. Census Bureau, Tables C30 and C50
National Association of Realtors
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Housing starts
Down 62 from peak in 2005
SF starts (mil.)
Source U.S. Census Bureau
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0.26
85.9
(398,895 MW-h)
(133,461,552 MW-h)
PUCO. Ohio Biomass Energy Program. Spring 2008
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Projected bioenergy facilities and feedstocks,
U.S. South
Stewart. 2009. International Forest Industries.
715-16.
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Feedstock Sourcing for Bioenergy Industries,
U.S. South
Includes municipal tree waste, storm debris,
yard trimmings, agriculture feedstocks, tire
scraps, land clearing
Stewart. 2009. International Forest Industries.
715-16.
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Location and capacity of southern pulpmills
Johnson and Steppleton. 2008. Southern Pulpwood
Production, 2006. SRS-134.
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Volume of removals from Ohio forests, 2007
Logging residues are 37
Assuming 0.015 dry tons/cu. ft.
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Ohio primary mill residues (hardwood)
TPO database, RPA 2007 Wiedenbeck and
Sabula Ohio Roundwood Utilization by the Timber
Industry, 2006. NRS-32
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Pallet recycling estimate(more in a moment)
Secondary residues estimate

• Total (sawdust coarse) 196,862 dry tons

• Total grounded (coarse) 89,899 dry tons

Urban tree residues estimate

• Total (coarse) 134,431 dry tons

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From 2007 combined mill, logging, urban tree, and
pallet recycling residues, Ohio might produce
Conversion factors from Stewart 2008 (10,250
grn tons/MW) and EIA (8,600 Btu/dry lb.)
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Comparison with WV (total biomass availability
from logging, milling, pallet recycling)

• W. Virginia
• (2.4 mil. dry tons)
• Logging residue 55
• Mill residue 39
• Primary 80
• Secondary 20
• Pallet urban tree 6

• Ohio
• (1.4 mil. dry tons)
• Logging residue 47
• Mill residue 38
• Primary 64
• Secondary 36
• Pallet urban tree 15

WV data Grushecky 2007
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In reality, there are MANY competing uses for
residues
Chips
Percentage of sawmills selling residues to
various markets, March 2008
Sawdust
Shavings
Hardwood Review Weekly. Rising returns for wood
waste. April 25, 2008
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Uses of primary residues in Ohio
Wiedenbeck and Sabula Ohio Roundwood
Utilization by the Timber Industry, 2006. NRS-32
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N. Carolina Pallet Recycling Studyuses for
recycled pallets
Out of 33.6 million pallets recycled in 2003
Buehlmann, Bumgardner, Fluharty. 2009. J. of
Cleaner Production. 17271-275
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NC Pallet Recycling Studyproducts made from
residuals
Buehlmann, Bumgardner, Fluharty. 2009. J. of
Cleaner Production. 17271-275
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Fixing vs. Grinding Pallets

• Average selling price of 4.75 per recycled
  pallet
• Average pallet weight of 43 lbs. (at 19 MC)
• Price 220 / ton

- Buehlmann, Bumgardner, Fluharty. 2009. J. of
Cleaner Production. 17271-275
- Hardwood Review Weekly. Rising returns for
wood waste. April 25, 2008
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In addition, relationships with suppliers can be
important

• As pellet manufacturers move into the area and
  aggressively purchase material, the farmers are
  really struggling to purchase the material they
  need for bedding.
• We have pity on the farmers we could sell for
  more to the pellet industry.
• A paper company just visited to tell us they
  were raising the price they would pay for
  sawdust, but were still getting more from the
  farms.

Hardwood Review Weekly. Rising returns for wood
waste. April 25, 2008
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Other possible biomass sources in Ohio

• MSW and CD landfills
• possibly an additional 2 million dry tons
• (Jeanty, Warren, Hitzhusen 2004)
• roundwood harvesting . . .

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Resource data

• Provided by Rich Widmann, U.S. Forest Service,
  Forest Inventory and Analysis, Newtown Square, PA

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Distribution of forest land in Ohio based on the
Multi-Resolution Land Characteristics project,
1992. The MRLC uses data from the Landsat
satellite to map land across the Nation.
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Ohio Forest Land Area
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Ohio growing stock volume by inventory year
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Components of above ground tree biomass on
timberland in Ohio, 2006
Recall that total logging, mill, and urban
residues is about 1.4 million dry tons, equal to
less than 1 of this total
Tree biomass in Ohio equals 510 million dry tons,
an average 66 dry tons per acre
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Average annual components of change in growing
stock volume, Ohio, 1991-2006
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Average annual net growth, removals, and G/R
ratio for major species, Ohio, 1991-2006
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Summary

• Heightened interest in wood residues in Ohio and
  worldwide
• Many competing uses for this material
• from traditional (e.g. farming) to newer (e.g.,
  pellets)
• more planned capacity than supply in many regions
• Relationships with suppliers can be important
• Some wood-based residue is left unused in Ohio
• greatest volume is in logging residue, but will
  this material pay its way out of the woods?
• Also significant opportunities from solid waste
  streams

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Summary

• More mill and logging residue and possibly
  roundwood could be directed at energy production
  if price structures shift
• supply and demand dynamics in specific regions
• If you are interested in biomass supply in Ohio,
  pay attention to broader industry trends!
• globalization
• housing/construction markets

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Questions?