Forests and Energy: Growing Towards a Carbon Neutral ......Game Changer at ANC Alberta Deregulated...
Transcript of Forests and Energy: Growing Towards a Carbon Neutral ......Game Changer at ANC Alberta Deregulated...
Forests and Energy: Growing Towards a
Carbon Neutral Alberta
October 20,2010
ANC STORY
Began Production in 1990
Premium newsprint supplied to the Edmonton Journal, Calgary Herald, USA Today, Wall Street Journal, and others.
210 Full time employees, 125 FTE in woodlands, plus others
On going capital reinvestment to ensure ANC’s long-term viability and competitiveness
Only paper mill in Alberta
Mechanical Pulping 92% Yield
TMP Refining
Refiner Motors generate High Fiber Yields
Minimal waste streams for co-generation opportunities
Consume Significant Electricity- 95 Mega Watts
Rolls Leaving Winder
Alberta Electricity Deregulation
Game Changer at ANC
Alberta Deregulated in 2001 – market prices doubled
ANC Hedged with Acquisition of PPA from Coal Fired Electricity Generators
Alberta Carbon Tax in 2007 for major emitters
GHG required
for PPA
(Tonnes)
GHG credit
generated at
ANC (tonne)
Bought from Market (Tonne)
$$ spent
2010
(estimated)190,000 40,000 150,000 $2.0 million
2009 166,000 22,000 144,000 $1.84 million
2008 135,000 21,000 114,000 $1.5million
Carbon Management at ANC
Actively increasing carbon capture and storage with highly successful and prompt silviculture program
Multifaceted approach beginning in 2004
Forest Carbon Management a strategic goal in 2008
Simple pragmatic target of securing a carbon credit from forest management activities in 2010.
Business Case for Carbon Offsets
Carbon is an emerging business threat and opportunity for ANC
ANC is purchasing Alberta carbon credits –annual expenditures of $2 million
Afforestation and Reforestation represent a made in Alberta opportunity to offset rising offset expenses.
Yearly Natural Gas Usage
Natural Gas
4.22
3.303.07
2.75 2.622.90
2.25
120,000
240,000
360,000
480,000
600,000
720,000
840,000
960,000
1,080,000
1,200,000
2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
Yearl
y G
J
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
GJ/t
Yearly GJ GJ/tA
N
C
What Are the Results?
BEFORE – 2000Block 810-1012
AFTER – 2008Block 810-1012
IFM Example
Real Data on 1030 ha
2010/01/07 MMM 12
8 year old white spruce
ACTIVITIES
Use of sludge for remediating contaminated sites
Sludge spreading / forest productivity
Greenhouse Gas Credits
Sludge landspreading guidelines for pasture lands, hay lands, (non-incorporation)
SLUDGE UTILIZATION
0
20
40
60
80
100
120
140
160
Vo
lum
e (m
3/h
a)
Treated Control
June 98
August 98
August 99
August 00
August 01
August 02
August 03
August 04
August 05
August 06
August 07
0
100
200
300
400
500
600
700
800
7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Tree Age (years)
t C
O2
/ha
T reated
Control
Treated Projection
Control Projection
1998
sludge
applied
2007
Additional
369 Mg
CO2/ha
in 2012
annual measurements2012
CO2 Stored in Control and
Sludge Amended Treatments*
* Based on ARC factors0
100
200
300
400
500
600
700
800
7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Tree Age (years)
t C
O2
/ha
T reated
Control
Treated Projection
Control Projection
1998
sludge
applied
2007
Additional
369 Mg
CO2/ha
in 2012
annual measurements2012
0
100
200
300
400
500
600
700
800
7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Tree Age (years)
t C
O2
/ha
T reated
Control
Treated Projection
Control Projection
1998
sludge
applied
2007
Additional
369 Mg
CO2/ha
in 2012
annual measurements2012
Trees- Carbon Sink
Pine Trees with Increasing sludge
application
Current status –carbon credits not available to ANC
Sludge application classified as business as usual.
Forestry and Oil & Gas Integration
The forest industry has an abundance of forest residues (tops, limbs, slash, unmerchantable timber, Aspen, and potential for MPB killed wood).
Forestry and Oil & Gas Integration
Transportation costs prohibit forest biomass material from being shipped long distances for use at central mill sites.
Opportunities exist to replace traditional fossil fuels with renewable forest fuels. On the ANC FMA - the SemCAMS site offers a unique opportunity for a high efficiency cogeneration (CHP) plant utilizing both steam and electricity (supports the Provincial Energy Strategy).
Biofuel Recovery
Kaybob Oil and Gas Green Energy
Partnership
Prefeasibility Work Completed
Carbonization (Biochar) Platform
Carbonization process engineering (bioenergy and biochar production)
Carbon (biochar) sequestration + crop yield and quality enhancement: horticultural or agricultural uses; solid fuel and other industrial applications
Biochar technology scale-up and commercialization
Biochar: carbon-rich solid produced by low-temperature (400 - 600º C) pyrolysis of biomass under complete or partial exclusion of oxygen.
It is called Biocoal or Biocarbon when used as solid fuel.
Biochar
Horticultural Markets for Biochar
• Hydroponic Growth Media Market:Canada: equivalent to 17,360T/year of bone dry biochar (AB+BC=4,960T/yr, ON=12,400T/yr)
• USA: equivalent to 15,500T/yr of bone dry biochar
• Other Horticultural Markets (Peat Moss Replacements):Total peat moss mined in Canada: 1,200,000 -1,400,000T/year
• 120,000T/year consumed in Canada, the rest exported to USA
Horticultural Markets for Biochar
BiocharSawdust
Coir
Hydroponic Gardening
25
30
35
40
45
Rockwool Coir Biochar
Effect of Various Substrates on Yield of Tomatoes in 2009,
Number of Tomatoes/plant
Assumption: 5 t Biochar/ha
Arable land in Canada: 50x106 ha
Potential Biochar on arable land: 250x106 t
CO2 equivalent: 880x106 t
Canada’s total CO2 emissions: 640x106 t/year
Biochar is a potential storage of carbon to
reduce GHGs.
Biochar as Soil Amendment/Carbon
Sequestration – Huge Potential Area
Additional Projects
Biochar (pyrolysis of wood and biosolids)-horticultural products processed and bagged at ANC
Biochar sequestering for carbon credits
Waste wood streams to Enerchem Edmonton-gasification for fuel streams
Biofuels- Integrated to SemCAMS
Plug Screw Feeder Filtrate and air effluent stream characterization for hemicellulose and terpenesextraction for value added feedstock
Ongoing support and participation in AfforestationProtocols with C3 for application on public land.
Additional Projects
Mountain Pine Beetle Management and CO2 Dynamics in the Central Alberta Region
Conclusion
“On two previous occasions when the atmosphere contained very
high levels of carbon dioxide, the early Carboniferous and Cretaceous periods, beginning about 350m and 150m years ago respectively, they were reduced by the expansion of carbon-sequestering plants. Industrial burning of the fossil fuels laid down in the Carboniferous period, in the form of decaying plant-matter, is the main reason why there is now more carbon in the
atmosphere than there has been for 4m years.” The Economist –Sept 23,2010
Forests can play a role in the carbon neutral Alberta
Integrated practical carbon management strategies will be of strategic importance but are not for the faint of heart.