3-03: Using a total forest solution approach to create synergy, not conflict, in biomass supply

The emergence of biofuel and biochemical markets creates the potential for a conflict of objectives with the traditional forest products industry.  Timberland owners serving in the role of biomass supplier, welcome the new markets as a way to create new revenue streams, increase the value of existing, marginal products and market underutilized resources.  Most pulp and paper companies, who divested their forestland assets, worry that the increased competition will tension their fiber supply and hurt their competitiveness.  Biomass conversion facilities producing biofuels and biochemicals, require feedstocks that conform to the facility’s production process with minimal on-site conditioning.  Bio-energy producers and utilities need scale fuel supply that is stable over the long term in volume, price and quality.  Each of these biomass users has different biomass quality, quantity and price tolerances.

Satisfying these many different objectives requires a comprehensive and integrated approach, including not just the direct value chain participants,  but those that may be indirectly affected.  An optimized, total solution for biofuel and biochemical producers combines the best available biomass for the intended use (including energy crops) with the traditional markets off the forest hectare.  A “total forest” solution establishes forest plantations to supply lumber and pulp/paper markets, whose higher value can support the land acquisition and management costs and offsets the cost of biomass production for fuels and chemicals.  The harvest residuals and a dedicated biomass crop, grown interstitially to the trees, can produce abundant, reliable and affordable fuel for the biofuel and biochemical producers.