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Future geothermal opportunities in wood processing Ian Suckling, Peter Hall and Michael Jack Above Ground Geothermal Technologies Workshop July 2014

Ian Suckling, Peter Hall and Michael Jack - NZ … · Future geothermal opportunities in wood processing Ian Suckling, Peter Hall and Michael Jack Above Ground Geothermal Technologies

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Future geothermal opportunities in wood processing

Ian Suckling, Peter Hall and Michael Jack Above Ground Geothermal Technologies Workshop July 2014

Wood processing is energy intensive

Processing plant Wood Wood product

Electricity

Water

Process

heat

Chemicals

2011 Energy intensity (PJ per Billion $)

Business weighted average 2.3

Agriculture, forestry & fishing 3.4

Wood, pulp, paper & printing 19.0

Basic metals 16.3

Combustion

Co-location of Geothermal and Forest

Resources

Talk outline

• Forestry sector

• Existing synergies

• Future opportunities

Industrial symbiosis

Residue opportunities

Biofuels

• Conclusions

Current:

High log export volumes

Low productivity wood

processing

Selling into mature markets

Future:

Greater on-shore wood

processing

Innovative solid wood products

New fibre-based products,

biofuels and biochemicals

Exports: $4.5 B → $12 B (2022)

New Zealand wood flows – 2012

Redrawn from: FOA/MPI - NZ Plantation Forest Industry Facts & Figures 2012/2013

Total log input

27.5

Log & chip exports

14.1 51%

On-shore processing

13.3 49%

Poles

0.4 Sawlogs & peelers

8.4

Plywood

1.2

Sawmills

7.3

Plant

residues

3.8

Pulp

3.7 Reconstituted panels

0.9 Energy

61.1 GPJ

Forest residues

n/a

4.5

Volumes in millions m3 roundwood equivalents

Existing synergies

Kawerau site

• Electricity

• Process steam for 4 existing wood processing facilities

largest industrial direct use of geothermal energy in the

world for over 50 years

Wood drying

• 2006 - 20 MW direct heat plant installed at Tenon’s Taupo wood

processing plant

• Replaced natural gas, cutting fuel bill & carbon footprint

• Led to significant efficiency gains

WoodScape analysis of impact of geothermal

P. Hall - Analysis of wood processing opportunities in Kawerau using the WoodScape model (2013)

http://embracechange.co.nz/images/uploads/content-images/ISK_WoodScape_2013_Nov_V3.pdf

Future opportunities Industrial symbiosis

Residue opportunities

Biofuels

Industrial symbiosis

• Industrial symbiosis is an association between two or more

industrial facilities or companies in which the wastes or co-

products of one become the raw materials for another.

• Industrial symbiosis can help companies:

Reduce raw material and waste disposal costs

Earn new revenue from residues and byproducts

Divert waste from landfill and reduce carbon emissions

Open up new business opportunities

• Opportunities will be site-specific

http://www.wrap.org.uk/content/what-industrial-symbiosis

Industrial symbiosis – Kalundborg, Denmark

M Chertow – J. Industrial Ecology 11(1): 1 (2007).

Traditional wood processing

Wood Wood product

Process

steam

Combustion

Residues

Conversion

process

Two inefficiencies:

1. Combustion

2. Reduced temperature

Industrial symbiosis

Wood Wood product

Geothermal

heat

Residues

Conversion

process 1

Conversion

process 2

Biochemical

or biofuel

Residue opportunities

• Bark Wood adhesives

Nutraceuticals

Biofuels

Horticultural applications

• Sawdust Pellets

Biofuels

Biochemicals

Bioplastics

• Lignin Surfactants and binders

Aromatic chemicals

Carbon fibre

WoodScape analysis: separate plants

Wood Sawn

lumber

Residues

Industrial

sawmill

Wood Plywood

Residues

Plywood mill

Biofuel Biofuel plant Wood

residues

350,000 m3/yr

350,000 m3/yr

340,000 m3/yr

182,000 m3/yr

178,000 m3/yr

45 M L/yr

172,000 m3/yr

168,000 m3/yr

Weighted ROCE 15.6%

WoodScape analysis: industrial symbiosis

Wood Sawn

lumber Industrial

sawmill

Wood Plywood Plywood mill

Biofuel Biofuel plant

350,000 m3/yr

350,000

182,000

178,000

45 M Litres

172,000

168,000

+17% gain in weighted ROCE: 15.6% → 18.3%

Geothermal heat

Biofuels - cellulosic ethanol

Feedstock

Sugar solution

Enzymatic hydrolysis

Pretreatment

Ethanol

Fermentation

Enzymes

Residue (process heat & electricity)

New Zealand Lignocellulosic Biofuel Initiative

Chips

Refining

Saccharification

residue

Sugar

syrup

Preheating

Lignin

Pressate

syrup

Heat & power

Enzyme

hydrolysis Attrition

Neutralisation Acid

hydrolysis

Research driven by techno-economic model

Capital Operating

Re

lati

ve P

rod

uct

ion

Co

sts

Operating cost

-

100

200

300

400

500

600

700

Op

era

tin

g C

osts

, $/t

on

ne s

ug

ars

Conclusions

• Strong regional opportunities for synergies between

geothermal resources and wood processing

Additional uses for geothermal

Improve utilisation of wood resource

Industrial symbiosis opportunity

• Opportunities

Reduce conventional wood processing costs

Re-direct wood residues from process heat to saleable

co-products

Enhance viability of new bioproduct opportunities

Thank you

[email protected]

+(64) 7 343 5867