NADF Forestry Expo, CRIBE, Scott Wiebe

NADF Forestry Expo
Thunder Bay, Ontario
April 23, 2015
Scott Wiebe PhD
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Outline of Presentation
1. Description and creation of CRIBE
2. Success! Examples of CRIBE
supported projects
3. Summary of Successes and
challenges.
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Ontario Government
recognized need to support and
change forest sector
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Recognizing the Need
80
70
60
50%
Reduction
50
40
30
20
10
0
2004
2005
Bio-Products
2006
Composite Solids & Panels
2007
2008
Pulp, Paper & Paperboard
2009
Sawmill
2010
Veneer Mill
Number of Medium & Large Mills by Product Sector by Year
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Government Programs Initiated During
Market Downturn
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•
•
•
•
•
•
•
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Forest Roads Program ($28-$75 million/yr)
Forest Resource Inventory ($10 million/yr)
Forest Sector Prosperity Fund ($150 million)
Loan Guarantee Program ($350 million)
Northern Pulp and Paper Electricity Transition Fund
($0.018 kWh or about $124 million over three years)
Northern Industrial Electricity Rate Program ($0.02 kWh,
nearly $450 million over three years)
Wood Promotion Program ($1 million/yr)
Special loans – St. Marys Paper, Terrace Bay Pulp
Centre for Research in the Bio Economy (CRIBE)
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CRIBE at a Glance
• $ 25 Million investment over 4 year
mandate; mandate since extended.
• Commercialization of research and
innovation.
• New products, processes, jobs and
businesses using forest biomass.
• Small lean organization with a senior
experienced Board of Directors.
• CRIBE funds up to 50%.
• Close coordination with other research
organizations (FPInnovations, BRI, SCA
etc.)
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Regional Clustering Opportunities
• FPInnovations: Thunder Bay
mill site
• BRI, Lakehead University
• Confederation College: site
of CRIBE offices
• 3 strategic pulp and paper
mills
• Champion to lead process
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CRIBE’S MISSION
1. Creating new jobs and skills in the workforce in the North
and in Ontario’s Forest Dependent Communities.
2. Creating and supporting existing businesses in the North.
3. Expanding and diversifying from traditional forest
products into new products with higher commercial value.
4. Developing new novel materials using forest biomass.
5. Enabling the manufacturing shift towards green products.
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Developing New Markets for the Forest Industry
Unique Lignin Extraction and Evaluation Facility
Partner: FPInnovations, Resolute Forest Products
Project: Lignin pilot plant and research lab.
Location: Resolute FP mill, Thunder Bay, ON
Benefits: -Bio Economy lab in Northern Ontario
provides essential data and product
development on an ongoing basis.
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FPInnovations Lignin Pilot Plant and Research Centre
Resolute Forest Products Thunder Bay mill site
• R & D facility integrated into operating facility:
• Full integration into existing kraft pulp operation: positives
and negatives
• Ability to accept liquor from other facilities
• Flexibility to test potential process additives
• Designed for sampling & testing from along entire process
from liquor to lignin
• Capability to test multiple reactor configurations
• Full independent operational lab and staff yet supported by
Resolute Forest Products
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FPInnovations Lignin Pilot Plant and Research Centre
• New Laboratory and
research facilities at
Resolute Forest
Products pulp mill.
• 6 Full time staff
supported by CRIBE
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Positive Spin-offs
1. Pilot plant has become a “test bed” for other
potential projects:
•
•
•
Thesis Chemistry: vanillin,SYA
Lignoworks Research network
Other paper mills utilizing facility to bench mark and test
lignins and other materials.
2. Collaboration with Lakehead University and BRI:
•
•
3.
Sharing of PF’s, graduate and coop students
Sharing of lab equipment and testing.
Commercial plant announced in July 2014 for
Alberta
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CRIBE Invests in Innovative Commercial Bio-fuels Plant
Something Unique, Something Brand New
Partner: Ensyn Technologies Inc.
Location: Renfrew, ON
Project: Expand Renfrew facility to full capacity for
Renewable Fuel Oil (RFO) production
Benefits:
14 new jobs; retain 14 jobs;
Improved residual and secondary fibre usage
in Ottawa valley.
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Ensyn Technolgies Inc. Renfrew Ontario Facility
Capital additions to Renfrew facility to increase RFO plant to full capacity.
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Discovering the Potential of Next Generation Ethanol
Design bio-refining process and pre-treatment process to recover
chemical streams from forest biomass.
Partner: G2 BioChem and Lakehead University
Location: Chatham and Thunder Bay, ON
Project: Cooperative project between Greenfield and Lakehead U to
develop new sugar extraction techniques for wood.
Benefits: Combining cutting-edge biorefining processes
with the development of value-added product uses to bring
new jobs and investment to Northern Ontario
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Developing New Revenue Streams for Pulp Mills
Develop pre-treatment process to extract and recover clean sugars and apply
to pulp and paper technology.
Partner: GreenField Ethanol Inc: Project #2
Location: Chatham and Terrace Bay, ON
Project: Pre-treatment process to extract pure sugar
streams from pulping process.
Benefits: If successful, this technology will lead to
significant economic and operational gains for pulp mills
by providing new revenue streams as well as a more
efficient way to perform current processes.
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New Bio-Energy Learning & Research Centre
Support new biomass boilers and fuel testing lab at Confederation College
Partner: Confederation College
Location: Thunder Bay, ON
Project: Assist in the development of fuel
testing lab and biomass boilers.
Benefits:-Training facility for other small
biomass boiler projects
-Emission control testing and
benchmarking.
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Building with Cross-Laminated Timber (CLT)
CRIBE Invests in the Future of Ontario’s Solid Wood Industry
Partner: Laurentian University
Location: Sudbury, ON
Project: Support CLT installation in new School
of Architecture.
Benefits: Future architects of Northern Ontario
will have first hand knowledge of using
advanced wood materials such as CLT.
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Wood fibre in composite car parts
Wood Fibre Added to Auto Parts Manufacturing
Partner: Magna Exteriors and Interiors
Location: Vaughan, ON
Project: Developing new advanced techniques to utilize
wood fibre in car parts and composites.
Benefits: This initiative will help create jobs in the
automotive, pulp and paper, and packaging industries.
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Packaging & Building Products from Wood Fibre
CRIBE Partners to Develop New Green Technology that allows wood fibre to
be used in a number of new products and packaging applications.
Partner: GreenCore Composites
Location: Sarnia, ON
Project: Expanding markets for the use of wood fibre in
the composite market.
Benefits:- finding new novel uses for wood
fibre in composites.
- direct linkage to downstream markets other
than forestry.
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Making a Difference in Ontario
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Making a Difference in Ontario
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Summary of Successes
and Challenges
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Observations from first 5 years
1. Downturn of 2006-2010 has had a profound effect
on the Industry as a whole:
•
Remaining industry cautiously looking at new
initiatives; need for a paradigm shift!
• Most projects (pilot/demo) are large and have
significant inherent risk. Industry has high aversion
to risk.
2. Overall loss of forest industry capacity in Northern
Ontario is problematic and significant.
3. Interest in renewable resources and biomass is
high from the downstream end with non-forest
industries.
4. A critical mass of research skill sets is being
developed here in Northern Ontario.
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Challenges
• High input costs
o Delivered fibre
o Transportation
o Energy
• Labour
o Lack of skilled labour
o High labour costs
o Aging demographics in rural Ontario
• Regulatory burden, low competitiveness and limited
innovation
• Imbalance between sawmill wood chip supply and
ongoing pulp mill demand
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Opportunities
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Forest Sector
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Available, certified wood supply
Traditional users in decline but new users showing interest (pellets, bio-chemicals,
etc.)
Building code to allow for 6 story wood frame construction
Good transportation infrastructure with a proximity to US markets
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A large chemical manufacturing capacity in the South
Significant value added wood product manufacturing in the South
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Growing aboriginal communities
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Communities in forested areas & seeking stronger engagement in the forest sector
Growing youth populations
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Path Forward
Getting Costs Down
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Lower delivered wood costs
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Reduce energy use/costs
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Increase lumber recovery
Increasing Value of Products
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Diversify portfolio of solid wood products
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Develop link between forest fibre supply and southern Ontario bio-chemical
producer demand
First Nations
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Work with all stakeholders in developing First Nation forestry and forest
products businesses and provide unbiased, third party support.
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“To us, research isn’t just about
creating new products. It’s about
creating new approaches and
bringing together the right partners.”
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