Agriculture and
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     The Virginia AG &
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     2007-2008

    

 

 
 

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High Cost of Energy:
Future Savings Lying in our Forests

A summary of presentations at VFA’s Annual Convention General Session, April 21, 2007
by Neil Clark and Terence Cooper

Nearly 200 members of VFA attended the general session on Saturday




Speakers at Saturday's General Session included (pictured from top, left) Bob Smith, THomas R. Fox, Kenneth Tucker, Steven W. Burton, and William S. Bulpitt, P.E.

Presenters included Bob Smith, Professor, College of Natural Resources, Virginia Tech; Thomas R. Fox, Associate Professor, Department of Forestry, Virginia Tech; Kenneth Tucker, President and CEO, Lignetics, Inc.; Steven W. Burton, Research Scientist, MeadWestvaco Corporation; and
William S. Bulpitt, P.E., Senior Research Engineer, Georgia Tech Strategic Energy Institute

 
Natural resources have been expected to provide the food, feed, and fiber to meet our basic needs. Now they are being called on to produce one more ‘F’—fuel. Oil has maintained a less than $20 per barrel price throughout the 1990s moving up to $30 per
barrel from 2000-2004 and most recently maintaining a price of over $60 per barrel (EIA 2007). Many remembrances of the 1970s oil embargo come to mind, along with the major efforts at developing alternative fuel sources. All that was brought to a screeching halt in the 1980s as crude oil again became readily available. Today there is a call for bio-energy from those concerned with national security, global warming, air-quality, residue disposal costs, enhancing forest management, and revitalizing the agricultural economy. The Energy Future Coalition in its 25x’25 vision calls for farms and forests to provide 25 percent of the total energy consumed in the United States by 2025, while continuing to produce affordable food, feed, and fiber. In 2006, 18 small enterprises were awarded $4.2 million from the U.S. Department of Agriculture to develop innovative products and renewable energy from woody biomass from national forests (Loyd & Valetkevitch 2006). And President Bush has mentioned energy production from wood chips in his State of the Union addresses. These evidences point to a mounting seriousness of meeting some of our energy needs from forests.
There are many alternate ways to create energy (heat, electric, transportation) from biomass. In this regard, there are several factors that need to be addressed when choosing the most promising alternative: feedstock availability including transportation, processing efficiency, capital investment for facilities, and compatibility with delivery infrastructure. Here we will focus on forest and wood sources of biomass, not forgetting that agriculture and municipal solid waste are also large contributors to the renewable energy strategy.

Logging and land clearing debris can be chipped on site and used or sold for fuel if within reasonable haul to generation plant.

Forest Feedstocks
Estimates are that U.S. forest lands can sustainably produce 368 million dry tons of biomass annually (Perlack et al. 2005). There are several options that can be used to produce woody biomass for energy production in the United States.
Considerable research has been done to develop biomass plantations with species such as hybrid poplar and willow. However, in the South, there are no operational plantations of these species currently being established. In contrast, there are over 30 million acres of pine plantations in the southern United States. Many of these plantations could be managed for bioenergy production.
If state-of-the-art management that integrates both improved genotypes and intensive silviculture, growth rates of loblolly pine in the South can exceed 10 tons per acre per year. Southern yellow pine would be the most suitable source as it is the greatest current stocking, suited to the soils and climate, and having many years of research that demonstrate the potential to increase biomass production through intensive management. Planting densities, thinning, and fertilization regimes may be adjusted if feedstock for energy is the desired product.
Biomass production also fits within more traditional management regimes where sawtimber is the desired final product. Thinning is typically needed once or twice in the rotation to produce sawtimber. Substantial amounts of biomass for energy could be produced in the thinnings with sawtimber produced at the end of the rotation.
A significant advantage of using southern pine plantations for biomass production is that harvesting and transportation systems are already in place and could easily be adapted to deliver biomass to ethanol or other biomass energy plants. This may not apply to other species being investigated for energy production.


Harvesting Biomass
Trees are used for a wide range of products throughout Virginia. Obviously high quality portions of trees used for veneer, sawtimber, ties, poles and other
valuable products will continue to be used in their appropriate category. In addition to this relatively small proportion of valuable material, there are vast quantities of lower-value limbs, tops, cull, and small diameter material that can be chipped and used for everything from engineered wood products, to pulp and paper, to specialty products, to energy.
There are also many other residues generated from wood products industries, landfills and loggers in Virginia that could be available for use as bio-energy or other applications. A study by Parhizkar and Smith (2007) surveyed primary and secondary wood manufacturers, landfills, loggers across Virginia and incorporated these data into a GIS for spatial analysis. This study estimates that 10 million green tons of wood residues are produced per year, most of which is produced by primary manufacturers and used for pulp and paper. However there are still 1.9 million tons of solid wood biomass, primarily from construction debris and woody brush, disposed of each year. Using woody debris and residues will reduce wildfire risk and wood waste while providing management opportunities to improve the health and sustainability of the forests in Virginia.

Solids Combustion—Tried and True
Wood has been combusted for home heating and cooking from time immemorial. The combustion process itself has evolved from burning whole logs and branches in a open-air fire, to charcoal creation for efficient transport and high-temperature applications, to mechanical processing such as chips, pellets, and compressed logs for various stoves and utilities. Beyond local or niche applications pellets and chips will likely be the products of interest when it comes to industrial-scale heat or electricity production for transportation and air-quality purposes.
The machinery for creating wood chips is readily available and can convert large quantities of material very rapidly with minimal maintenance. The chips can be made to be fairly uniform in size and moisture content for a consistent and thorough burn. There are an increasing number of business, college, and industrial electricity generation facilities that are utilizing wood chips in their boilers.
The wood pellet process originated in Germany some 200 years ago, therefore it cannot be viewed as a new technology. Like the alcohol industry, it is an old industry with a new life resulting from economic and environmental changes.
The rejuvenation of the wood pellet industry began with the oil embargo of 1974. At this time sawmills and kilns in Oregon and Washington were looking for help with reliable energy. Shavings and sawdust were recognized, but storage was a problem as was fuel efficiency. These problems were overcome with the redevelopment of the wood pellet process. Recent interest in this industry has resulted in the development of high efficiency wood stoves and furnaces resulting in 1.2 million tons of bagged pellets sold in 2006.
Europe is the main consumer of wood pellets largely due to the high carbon taxes imposed for the burning of fossil fuels. This market should increase in the U.S. at a local, if not national level, as there is more emphasis placed on green energy and low emissions.

Wood waste from manufacturing plants, harvesting operations and landfills can be utilized to produce clean, carbon neutral energy while increasing revenue for wood producers. (Photo courtsey of Dan Georlich)

Wood Gases and Liquids
Combustion is an easy way to convert wood to energy for direct heat or conversion to electricity, but not very convenient for the needs of our transportation industry which is a major contributor to greenhouse gas emissions. For this purpose the fuel needs to be transformed into a liquid (some popular forms being ethanol, methanol, propanol, butanol, etc.), with ethanol being one of the more popular forms due to relatively efficient conversion and the availability of government subsidies. Currently, it is easier and cheaper to create ethanol from corn, cane sugar, or sugar beets than it is from wood or cellulose. The cost of production for corn is in the range of $1.00-$1.15 per gallon with $1.26 per gallon per year capital expenditure required to build and maintain the facility (Shapouri et al. 2006). Hydrolyzing wood to 
sugars, which is currently quite challenging, costs approximately $2.35 per gallon and greater than $4 per gallon per year of capital expenditure is required to build and maintain the facility. However, many research agencies and private companies are working hard to lower these costs to make this fuel competitive with ethanol from corn.

Cofiring plants like the Dominion Power plant in Pittsylvania can provide some of the nearest term and lowest cost options for reducing air pollutant emissions from electric power generation. (photo courtsey of Dan Georlich)

There are no cellulose-to-ethanol plants currently in operation in the U.S., but a number of plants are under development. In general, the processes used fall into two categories: gasification of the feedstock, and pretreatment and fermentation of the feedstock.
There are several ethanol plants under development using gasification processes. One recently announced is the 100 million gallon per year Range Fuels project slated to be built in Soperton, Ga. In this two-staged process the gas will be passed through a proprietary catalytic process which will result in the production of liquid ethanol and methanol.
There are also several plants under development using enzyme and fermentation processes. One promising project is being developed by a startup company in Georgia with the cooperation of Georgia Tech and University of Georgia researchers. This company (C2 Biofuels) plans to license several pine to ethanol plants in the southeast, each capable of producing 50 million gallons per year (Touchstone 2006).
Research is continuing to develop more efficient ways of utilizing wood and other biological feedstocks in the production of energy. Chevron together with the Georgia Institute of Technology are conducting research in: identification of high impact technologies which will result in the commercialization of cellulosic biofuels; understanding the characteristics of biofuel feedstocks; development of regenerative sorbents; and improvement of sorbents used to produce high-purity hydrogen.

Biorefineries
The pulp and paper industry is critical for sustainable forest management, and is a current leader in the use of biomass and cogeneration utilizing wood wastes. Pulp mills are already well-versed in the extraction and manufacturing of multiple products. This can be expanded into a bio-refinery, much in the same way that petroleum refineries produce value-added byproducts with the leftovers from gasoline production. Pulp mills can add energy to the rosins, terpenes, lignins and activated carbon value-added products gleaned in the paper making process. Wood derivatives can be used in the manufacture of plastics, adhesives, surfactants, etc. The threats of the petroleum industry can become the opportunities of the bio-based sector. Disruptive markets are ripe for entry of new innovative technologies and improvements in quality.
Under the current model of a paper mill, the pulp mill is the cost center and paper mill is the profit center making the paper mill the center for innovation. A bio-refinery model allows more valuable products to be derived from earlier processes. Biofuel production, gasification, bio-chemicals and bio-materials refining offer some great opportunities. Currently 99 percent of lignins are used for fuel at a value of $50-$500 per ton. Higher value products can be derived netting 10 times that value if sufficient demand exists. If nothing is done U.S. pulp and paper mills are sure to experience lost opportunities and a decline in global competitiveness.

Conclusion
Wood has an increasing place in the bio-energy market as
cellulose is the most abundant renewable resource. Wood, or any existing biofuel, can not currently compete directly with fossil fuels in a completely market-based economy. Approximately 60 percent of the electricity produced in the U.S. comes from plants fueled with coal, but this resource is under great pressure from concerns about global warming, renewable portfolio standards and potential carbon taxes. Nuclear energy is experiencing much renewed interest, but questions remain to be answered on standardized plant designs, safe operating standards, waste fuel disposal and actual construction costs. However in situations where renewable or carbon neutral energy is mandated; biofuels will be a component. And wood fiber will be a strong competitor among competing biofuels due to its abundance, low input cost, high transportation density, steady supply rates and non-competitive usage.
If 30 percent of our energy resource is mandated to be renewable, representing the equivalent of more than 1.5 billion kWh of electricity and over 45 billion gallons of gasoline, there is quite a long ways to go considering only six percent of our energy currently is produced from renewable sources. Already some partnerships are being created between petroleum-based and wood-based industries.
With so many energy possibilities, it seems to be a footrace. Energy demand continues to increase, while costs and restrictions also increase on just about every energy generation solution from nuclear to coal. There is room for a diversified energy portfolio and in fact it may well take all of the solutions we can find to meet our future energy needs.

References

  • 25x’25. 2007. 25x’25 Action Plan: Charting America’s Energy Future. http://www.25x25.org/storage/25x25/documents/
    IP%20Documents/ActionPlanFinalWEB_04-19-07.pdf
  • Energy Information Administration. 2007. United States Spot Price FOB Weighted by Estimated Import Volume (Dollars per Barrel) http://tonto.eia.doe.gov/dnav/pet/hist/ wtotusaw.htm
    Loyd, E. & Valetkevitch, H. 2006. USDA News Release No. 0138.06
    Parhizkar, O., Smith, R. 2007. A Geographic Perspective on the Current Biomass Residue Availability in Virginia.
  • Perlack, R. et al. 2005. Biomass as feedstock for a bioenergy and bioproducts industry: the technical feasibility of a billion-ton annual supply. DOE/GO-102005-2135 ORNL/TM-2005/66.
    Shapouri, H., OEPNU/OCE, USDA, and Salassi, M. 2006. The economic feasibility of ethanol production from sugar in the United States. http://www.usda.gov/oce/EthanolSugar
    FeasibilityReport3. 69 pp.
  • Touchstone, V. 2006. Alternative Fuel Technology Company Locates in Georgia. The Georgia Centers of Innovation: Agriculture: The Big Picture - 6/27/2006. http://agriculture.
    georgiainnovation.org/news/details/3

Neil Clark is Associate Extension Agent, ANR, Forestry and Natural Resources—Southeast District, Tidewater Agricultural Reserach and Extention center. Terence Cooper is a member of the VFA Magazine Editorial Committee.
 

   

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