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BC Bugwood Envirochem Services Inc. Other results that follow from this study are: • Although some of the technologies appear to yield high returns at current product prices a detailed market analyses for the biomass products such as methanol, cellulignin etc. has not been conducted as part of this study. The ultimate success of these technologies will therefore depend on the future size of these markets, and prices that can be achieved for the products made from bugwood. • Assuming that enough bugwood can be found at an average distance of 150 km from the processing plant, transport costs do not constitute more than 20-25% of delivered feedstock costs. On-site processing using mobile equipment may not result in cost advantages when compared to stationary processing. • Transport costs for energy products made from bugwood are lower than for logs. For example, a tonne of methanol can be transported for about one-third of the cost of wood. However, life-cycle costs do not necessarily decrease due to lower transport costs, as processing costs can be substantial. The main reason for converting wood to other forms of energy, such as ethanol or methanol, is therefore not a cost reduction, but the opening of new markets for wood products. • An additional benefit of developing a bugwood biomass infrastructure, is the possibility that it could be integrated with biomass that is currently flowing to landfills, and non- energy recovery wood waste (beehive) burners. Inclusion of these “waste” woods and even non-stem wood as feedstock could reduce the combined biomass feedstock costs and extend the life of the biomass facilities beyond that of the bugwood supply. • More complex technologies with higher capital costs, such as the Lignol process or methanol production can yield higher returns than less costly technologies, such as bio- liquid production or pelletization. Whether a process yields the desired returns mainly depends on the market value of its products. • The greenhouse gas emission reductions achieved by various energy uses of bugwood vary by a factor of three, between 0.5 and 1.5 tonnes of CO2 per tonne of feedstock, between the various technologies. Higher emission displacements are achieved whenever high-carbon fuels, such as coal or automotive fuels, are displaced, and combined with a high conversion efficiency from wood to other fuels or energy types. To encourage the development of an industry that uses bugwood and wood residues in BC, it is recommended that support be given to the further development of technologies which are close to being commercial. Likewise, mechanisms to encourage the harvest of bugwood should be investigated and implemented. Options may include reduced cut block license fees, or reallocating bugwood – good wood harvesting costs, so that it is still economic for the forestry businesses to remove all of the wood, even though they may not be able to use the low-value bugwood for their primary operations. This is already happening in BC with low-cost cut licenses granted to bugwood users that also include significant amounts of merchantable wood. In addition the “shelf life” of bugwood should be more accurately quantified to define how many years standing dead trees can be used as sawlogs, pulp logs, or even biomass. This study further recommends the creation of a comprehensive bugwood-for-energy strategy for BC based on additional studies to identify markets, biomass energy facility locations, and coordination of the different approaches to bugwood utilization. The goal would be to use the bugwood resource; to enable accelerated rejuvenation of affected forests and to create new biomass energy industries that can source other forestry energy feedstocks to continue to function after the bugwood is no longer available. Page ivPDF Image | IDENTIFYING ENVIRONMENTALLY PREFERABLE USES FOR BIOMASS
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