a growing bioenergy market – a strategic opportunity or ... · a market for biomass for heat and...

A Growing Bioenergy Market – A Strategic Opportunity or Imminent Threat to the Pulp

and Paper IndustryBioPro Atlanta

[email protected] 14th, 2011

Copyright Energy Launch Partners LLC 2011

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Three Global Mega Trends that will Shape our Future

• Energy cost will continue to rise and fossil fuels will rise faster than renewables

• Energy, economic competitiveness and quality of life are inexorably linked

• Environment will continue and grow as a political issue

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Renewable Energy is not a passing fad


Driving Energy Demand

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United Nations Development Program

While people want a better life for themselves and their children – energy use will rise


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Every country has a unique blend –liquid fuels are a unsolved global problem


Three Trends that will Shape the US Forestry Industry

• Western Europe will continue to grow as a market for biomass for heat and electricity

• The US needs many solutions to fossil liquid fuels. Only biomass can make carbon based liquids

• In the South East biomass is a long term competitor to coal in certain expensive deliver destinations

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Remember – only biomass and ag can make renewable liquid fuels

Solar WindGeothermal

Corn EthanolBiomass


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Renewables are “local” fuels


The European Market for Bio based Heat and Power will

continue to grow

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First big lesson:

In every energy market

………….who ever controls the raw material controls the profit

…………..who ever controls the land controls the raw material

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Second big lesson:

Bankers understand heat and power from biomass

-Bio Gas (methane) -Gasification to SynGas (H2 and CO)-Direct combustion

Venture capitalists and scientists understand liquid fuels – and liquid fuels are the future worlds BIG problem.

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Different Views


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Specific Threats

Pulp and Paper -Subsidized competition

Landowner- Regulation of private land use

Bioelectricity Producer- Regulated mandates

Pellets and Liquids- Pulp and Paper can pay “what ever it takes”


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Europe will follow its own politics – and they will continue to be the politics of carbon

Swedish Bioenergy


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Common Threats

• Land Conversion and not uncontrolled increase in stumpage is the threat to everyone

Georgia Forestry Commission


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• Do not demonize bioenergy•Make the definition broad•Publicize the contributions that a integrated fiber market has on our national competivness•Encourage increased supply

•A robust market for low, medium and high value products

•Utilization of residuals, urban wood• Encourage hi yield energy crops and transitional planting•Utilize public land to reduce fire and disease • Support development of accurate data

There are more Common Opportunities than Threats

Sweden’s definition is broad and publicly values the bioenergy contribution of the Pulp and Paper Industry


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Increase returns for landowners AND reduced delivered fiber and energy costs to all industry players

• Reduce supply chain costs through government investment

• Rail and transfer logistics•Energy Efficient harvest and road transport•Port facilities to support export•Commercialization facilities for new technologies• Focus on the “picks and shovels” manufacturing industries that can build new efficient conversion facilities

There are more Common Opportunities than Threats


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Some closing thoughts

After 20 years of intensive bioenergy, Scandinavian companies still compete locally but support each other nationally – there is a lesson there

Speak well of bioenergy –make trees and energy crops a positive for the public

It’s in no ones best interest to drive up prices by placing new energy plants in close proximity to existing Pulp and Paper plants

Increasing yield per acre benefits everyone

Thank [email protected]


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a growing bioenergy market – a strategic opportunity or ... · a market for biomass for heat and...

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