Seeing The Forest

Producing next-generation ethanol in the New North is one step closer to reality with a recently completed report that shows enough raw material exists in the region to support the effort. For more than a year, officials at New North, Inc. have explored the opportunities surrounding cellulosic ethanol production.

Cellulosic ethanol is a biofuel made from wood, grasses and non-edible plant material. Trees are a particularly promising source of ethanol because they grow year round and require less fertilizer and water. They also contain more carbohydrates (the chemical precursors of ethanol) than food crops like corn do.

In March, New North, Inc. commissioned Resource Analytics, Inc. of St. Paul, Minn., to conduct a study to determine the feasibility of producing cellulosic ethanol at the former NewPage paper mill in Niagara. Phase one of the study, completed in August, showed significant supplies of raw materials such as chipped logging residue, agricultural forage crops and roundwood logs are available within a 65-mile radius of the plant.

“Advanced biofuels is one of the targeted industry clusters of the New North,” says Jerry Murphy, New North executive director. “As Wisconsin moves forward with large scale commercialization and production of cellulosic ethanol, we’re going to be prepared to attract development by promoting our resources and highlighting Northeast Wisconsin’s assets. This study will help us make the case to potential biofuel producers that the New North is an ideal location for a cellulosic ethanol facility.”

Jan Hacker, forestry consultant and owner of Resource Analytics, is enthusiastic about the results of phase one. “This is a terrific opportunity for the region, given the state of the paper industry right now,” she says.

In her assessment, Hacker conducted an overview of area forest resources, including the classification of all lands in the project area; ownership and timberland characteristics; forest type, stand size, class and growing stock volumes; removal from timberland in 2007; and estimates for logging residue generation.

Phase one also included reviews of government policies related to logging and harvesting, as well as agricultural forage crops and sources of roundwood (sections of timber in a raw, unmanufactured state). Hacker’s report notes that the closure of NewPage’s Niagara and Kimberly mills has resulted in a glut of roundwood supply in the procurement area.

The analysis of agricultural forage crops suggests this could be a valuable source of supplemental feedstock for a cellulosic ethanol plant. The ability of a cellulosic ethanol plant to use both sources of material, in addition to chipped logging residue, improves the flexibility of procurement options and strategies. The study also investigated potential suppliers of logging residues and roundwood, seasonal variations related to supply and the cost of transporting wood.

Hacker says phase two of the feasibility study, expected to be released later this fall, will address production levels and harvest techniques, as well as existing contracts and pricing strategies.

The economic impact of large-scale ethanol production extends well beyond a single facility.

“Second generation ethanol production will involve hundreds of millions of dollars of infrastructure investment,” says Murphy. “It will involve pipelines, trucking, railroads and staging areas. It will affect the way we harvest timber, collect, slash and move wood.”

Currently, corn is easier and less expensive to process into ethanol compared to cellulosic ethanol. However, U.S. Department of Energy studies conducted at Argonne National Laboratory of the University of Chicago have found cellulosic ethanol reduces greenhouse gas emissions by 85 percent over reformulated gasoline.

By contrast, starch (corn) ethanol, which most frequently uses natural gas to provide energy for the process, may not reduce greenhouse emissions at all, depending on how the starch-based feedstock is produced.