NADF Forestry Expo Thunder Bay, Ontario April 23, 2015 Scott Wiebe PhD 1 Outline of Presentation 1. Description and creation of CRIBE 2. Success! Examples of CRIBE supported projects 3. Summary of Successes and challenges. 2 Ontario Government recognized need to support and change forest sector 3 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 4 Government Programs Initiated During Market Downturn • • • • • • • • • 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) 5 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.) 6 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 7 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. 8 9 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. 10 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 11 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 12 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 13 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. 14 Ensyn Technolgies Inc. Renfrew Ontario Facility Capital additions to Renfrew facility to increase RFO plant to full capacity. 15 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 16 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. 17 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. 18 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. 19 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. 20 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. 21 Making a Difference in Ontario 23 Making a Difference in Ontario 24 Summary of Successes and Challenges 25 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. 26 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 27 Opportunities • Forest Sector • • • • 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 • • A large chemical manufacturing capacity in the South Significant value added wood product manufacturing in the South • Growing aboriginal communities • • Communities in forested areas & seeking stronger engagement in the forest sector Growing youth populations 28 Path Forward Getting Costs Down • Lower delivered wood costs • Reduce energy use/costs • Increase lumber recovery Increasing Value of Products • Diversify portfolio of solid wood products • Develop link between forest fibre supply and southern Ontario bio-chemical producer demand First Nations • Work with all stakeholders in developing First Nation forestry and forest products businesses and provide unbiased, third party support. 29 “To us, research isn’t just about creating new products. It’s about creating new approaches and bringing together the right partners.” 30
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