Regional Analysis of Woody Biomass Resources North Carolina‟s Southeast Region Prepared by: Gelbert, Fullbright & Randolph Forestry Consultants, PLLC 8394 Six Forks Road, Suite 203 Raleigh, North Carolina 27615 www.GFRforestry.com (919) 841-0089 The information contained in this report is the property of North Carolina’s Southeast Commission. The methodology for gathering the information is property of GFR Forestry Consultants and cannot be used without permission.© The information contained in this report is the property of North Carolina’s Northeast Commission. The methodology for gathering the information is property of GFR Forestry Consultants and cannot be used without permission.© Table of Contents A. Executive Summary B. Objective and Methodology of the Assignment 1. Data Collection 2. Terminology 3. Assumptions 4. Regional Historic Wood Prices Figure B.1 Southeast Region 15 Year Wood Cost 5. Current Market Price of Materials 6. Southeast Region Competition Figure B.2 Southeast Region Paper Mill Overlap Analysis Map Figure B.3 Southeast Region Competition Figure B.4 Southeast Region Competition Map 7. Southeast Region Sawmills and Residuals Figure B.5 Southeast Region Hardwood Sawmills Figure B.6 Southeast Region Hardwood Sawmills Map Figure B.7 Southeast Region Sawmill Residuals 8. Review of Logging Infrastructure 9. Southeast Region Land Use Changes Figure B.8 Southeast Region Timberland Ownership Change Figure B.9 Percent Loss of Total Crop & Forest Land, 1987-2007 Figure B.10 Projected Decrease in Total Forest and Crop Land, 2007-2027 C. Southeast Region Study Area 1. Study Area Figure C.1 Southeast Region Counties Figure C.2 Southeast Region Counties Map 2. FIA Data & Methodology 3. Summary of Southeast Region, North Carolina 4. Potential Opportunities Figure C.3 Southeast Region Pulpwood & Biomass Availability Figure C.4 Southeast Region Pine Pulpwood Volume Figure C.5 Southeast Region Hardwood Pulpwood Volume Figure C.6 Southeast Region Biomass Volume D. Southeast Region County Summaries 1. Bladen County, North Carolina Figure D.1 Bladen County Pulpwood & Biomass Volumes Figure D.2 Bladen County Pine Volume Figure D.3 Bladen County Hardwood Volume Figure D.4 Bladen County Biomass Volume Figure D.5 Bladen County Timberland Ownership Change 2. Brunswick County, North Carolina Figure D.6 Brunswick County Pulpwood & Biomass Volumes Figure D.7 Brunswick County Pine Volume Figure D.8 Brunswick County Hardwood Volume Figure D.9 Brunswick County Biomass Volume Figure D.10 Brunswick County Timberland Ownership Change 3. Columbus County, North Carolina Figure D.11 Columbus County Pulpwood & Biomass Volumes Figure D.12 Columbus County Pine Volume Figure D.13 Columbus County Hardwood Volume Figure D.14 Columbus County Biomass Volume Figure D.15 Columbus County Timberland Ownership Change 4. Cumberland County, North Carolina Figure D.16 Cumberland County Pulpwood & Biomass Volumes Figure D.17 Cumberland County Pine Volume NC Southeast Commission - Biomass Resource Study - September 2011 Page 4 Page 5 Page 5 Page 5 Page 5 Page 6 Page 6 Page 6 Page 6 Page 8 Page 8 Page 9 Page 9 Page 10 Page 10 Page 10 Page 11 Page 11 Page 12 Page 13 Page 13 Page 14 Page 14 Page 14 Page 14 Page 14 Page 15 Page 16 Page 17 Page 17 Page 18 Page 18 Page 19 Page 19 Page 19 Page 20 Page 20 Page 20 Page 20 Page 21 Page 21 Page 22 Page 22 Page 22 Page 22 Page 23 Page 23 Page 24 Page 24 Page 24 Page 24 Page 25 Page 25 Page 26 Page 2 of 43 Figure D.18 Cumberland County Hardwood Volume Figure D.19 Cumberland County Biomass Volume Figure D.20 Cumberland County Timberland Ownership Change 5. Hoke County, North Carolina Figure D.21 Hoke County Pulpwood & Biomass Volumes Figure D.22 Hoke County Pine Volume Figure D.23 Hoke County Hardwood Volume Figure D.24 Hoke County Biomass Volume Figure D.25 Hoke County Timberland Ownership Change 6. New Hanover County, North Carolina Figure D.26 New Hanover County Pulpwood & Biomass Volumes Figure D.27 New Hanover County Pine Volume Figure D.28 New Hanover County Hardwood Volume Figure D.29 New Hanover County Biomass Volume Figure D.30 New Hanover County Timberland Ownership Change 7. Pender County, North Carolina Figure D.31 Pender County Pulpwood & Biomass Volumes Figure D.32 Pender County Pine Volume Figure D.33 Pender County Hardwood Volume Figure D.34 Pender County Biomass Volume Figure D.35 Pender County Timberland Ownership Change 8. Richmond County, North Carolina Figure D.36 Richmond County Pulpwood & Biomass Volumes Figure D.37 Richmond County Pine Volume Figure D.38 Richmond County Hardwood Volume Figure D.39 Richmond County Biomass Volume Figure D.40 Richmond County Timberland Ownership Change 9. Robeson County, North Carolina Figure D.41 Robeson County Pulpwood & Biomass Volumes Figure D.42 Robeson County Pine Volume Figure D.43 Robeson County Hardwood Volume Figure D.44 Robeson County Biomass Volume Figure D.45 Robeson County Timberland Ownership Change 10. Sampson County, North Carolina Figure D.46 Sampson County Pulpwood & Biomass Volumes Figure D.47 Sampson County Pine Volume Figure D.48 Sampson County Hardwood Volume Figure D.49 Sampson County Biomass Volume Figure D.50 Sampson County Timberland Ownership Change 11. Scotland County, North Carolina Figure D.51 Scotland County Pulpwood & Biomass Volumes Figure D.52 Scotland County Pine Volume Figure D.53 Scotland County Hardwood Volume Figure D.54 Scotland County Biomass Volume Figure D.55 Scotland County Timberland Ownership Change E. Southeast Region Sustainability Figure E.1 Regional Sustainability Model F. Review of Programs 1. Review of the Renewable Fuel Standard Cellulosic Biomass Program 2. Review of the Biomass Crop Assistance Program 3. Review of Wood Certification Systems NC Southeast Commission - Biomass Resource Study - September 2011 Page 26 Page 26 Page 26 Page 27 Page 27 Page 28 Page 28 Page 28 Page 28 Page 29 Page 29 Page 30 Page 30 Page 30 Page 30 Page 31 Page 31 Page 32 Page 32 Page 32 Page 32 Page 33 Page 33 Page 34 Page 34 Page 34 Page 34 Page 35 Page 35 Page 36 Page 36 Page 36 Page 36 Page 37 Page 37 Page 38 Page 38 Page 38 Page 38 Page 39 Page 39 Page 40 Page 40 Page 40 Page 40 Page 41 Page 41 Page 42 Page 42 Page 42 Page 43 Page 3 of 43 A. Executive Summary The 2010 US Forest Service Forest Inventory Assessment (FIA) resource data indicates that within the Southeast Region of North Carolina there are 3.0 million acres of timberland supporting 29.5 million tons of pine pulpwood and 50.1 million tons of hardwood pulpwood potentially available for use by the biofuels industry (green tons). At the time of the 2010 assessment the annual growth was 2.1 million tons of pine and 1.2 million tons of hardwood. The removals were 960,000 tons of pine and 697,000 tons of hardwood. The percent difference in the growth to removals for the area was 73.3% for pine and 56% for hardwood, indicating more wood was grown than was removed. The total biomass for the region is 32.1 million tons. Land use changes that have diverted land from timberlands to development have not been significant across the region. Based on the 2010 FIA data, the region lost 2.1% (66,000 acres) of productive timberland compared to the 2002 survey. Future projections of forest and crop land are forecasted to be between 2% and 4% with the majority of the acres expected to be lost from crop land. Regional competition for wood is currently depressed for all products. The largest user in the region is the International Paper Mill at Riegelwood, NC. The mill makes different paper grades and fluff pulp, and consumes pine and hardwood pulpwood and biomass. Yildiz Entregre – USA has begun exporting pine chips from the Port of Wilmington. There is one large consumer of biomass for energy and power production. The Capital Power facility in Southport consumes 350,000 tons of biomass annually. There is a small chip mill run by Edwards Wood Products in Scotland County. Depending upon sourcing plan for a potential biomass using facility, the Edwards Wood Products mill could be viewed as a competitor or a supplier. Based on interviews with area wood suppliers, the region could use additional wood consuming facilities. The current market for pine and hardwood pulpwood delivered to facilities in the Southeast Region is $26.50 and $24.00 per ton, respectively. Hardwood sawmill residual chips are $28.50 and hardwood dust is $23 per ton. The annual production quantity of pine sawmill chips is approximately 456,800 tons and pine sawmill dust is 234,600 tons. The annual production quantity of hardwood sawmill and chip mill chips is approximately 308,750 tons and sawmill dust is 37,500 tons. The total hardwood usage is 1,480,000 tons. Estimated consumption that comes directly from within the region is 960,677 tons for pine and 546,357 tons for hardwood. Using our overlapping methodology, these estimates match very close to the FIA data estimates. Estimated total consumption of pine pulpwood within the region is 2,700,000 tons. It is important to note that some of the wood for the region‟s mills will come from outside of the Southeast Region. Current prices for pine pulpwood stumpage are $7.00 and hardwood stumpage prices are $2.00 per ton. Biomass stumpage prices are minimal and are reported at below $1 per ton. We believe that there is potential opportunity for a biofuels facility in Richmond and Sampson counties. The tons per acre for pine, hardwood, and biomass are good for these counties. The counties have little pressure from regional competition and currently do not have any wood using facilities. These areas also have a good transportation infrastructure for roads and rail. NC Southeast Commission - Biomass Resource Study - September 2011 Page 4 of 43 B. Objective and Methodology of the Assignment The information in this report will be used by North Carolina‟s Southeast Region to provide potential biofuels manufacturers with a basic understanding of the forest resources industry and forest materials available in the region. This report does not include any non-woody source of supply such as agricultural residues, municipal solid waste, or herbaceous crops. A finer level of site specific detail would be needed for a manufacturer to determine if a location is suitable. Disclosure: For this assignment Gelbert, Fullbright and Randolph Forestry Consultants, PLLC (GFR) synthesized information from anecdotal and empirical data as well as formal and informal interviews from various companies and individuals with knowledge of raw material resources in the Southeast Region of North Carolina. GFR did disclose the nature of the project to all companies and individuals that we used as a source. GFR is currently, and has in the past, provided resource consulting services to clients for similar projects. GFR will not release information in this report to parties other than the Biofuels Center of North Carolina and the North Carolina Southeast Commission unless a release is obtained. Requests for copies of this report should be channeled through GFR so that proprietary methods used in this report is not released. All client information is confidential. 1. Data Collection: GFR utilized its internal data, acquired publicly available data, phone surveys and other research to estimate the quantities of forest resources suitable for the production of biofuels. Unless otherwise stated all wood volume data and cost is expressed as green tons (i.e. 50% moisture content). This report will report on: a. Hardwood & pine pulpwood prices – current and historic volumes and prices b. Biomass prices – current volumes c. Current competitors for the materials including an estimate of their wood consumption d. Manufacturing residue (sawmills) e. Land use changes f. Reported future competitors for the materials g. Complementary sources of hardwood, pine, and biomass mill residuals 2. Terminology used in this report: a. „ pulpwood‟ means low value trees that are not suitable for lumber. b. „biomass‟ means waste material from a sawmill, chip mill, or material remaining after a logging operation. Biomass will typically include bark and may have some level of soil attached. We also use the term biomass to describe the growing stock in the FIA data. c. „roundwood‟ means that the wood will be processed as a whole tree. d. „in-woods whole tree chips‟ means chips produced in the forest from roundwood without bark, limbs and tops. e. „sawmill chips‟ and „sawmill dust‟ refers to material produced at a manufacturing facility as a bi-product of the lumber making process. These chips and dust will be free of bark. f. „dirty chips‟ are trees that have been processed with a biomass chipper that include the bark. 3. Assumptions: GFR Forestry Consultants, PLLC has prepared this report based on current information and assumptions that we believe are reasonable. The information and assumptions used in preparing this report are subject to uncertainties. Therefore, the conclusions drawn from this information are uncertain and the actual results may differ materially from those projected. The information should be considered a “snapshot” of the current markets and future consideration of the region for a biofuels facility should verify all data. The “Potential Opportunities” section in the report is based on our previous experience with biofuels companies and the types of locations NC Southeast Commission - Biomass Resource Study - September 2011 Page 5 of 43 that they have interest in. A specific biofuels company may have very different economic and resource requirements that would likely alter the assumptions we made in our determining our “Potential Opportunities”. 4. Regional Historic Wood Prices: The fifteen year wood cost data for the region shows a gradual increase in stumpage and delivered cost. The majority of the increases have come from logging and transportation cost. The delivered rate for pine pulpwood over the period was $11.88 to $25.71 per ton and $7.24 to $24.34 per ton for hardwood pulpwood. Stumpage prices have stayed relatively flat in a range from $2.24 to $8.92 per ton for pine pulpwood and $.69 to $5.62 per ton for hardwood pulpwood. It is important to note that these wood cost are the average prices for the year. A given quarter may be significantly higher or lower based on weather condition and other factors in the market. Southeast Region Wood Cost $30.00 $25.00 $ / ton $20.00 Pine Stumpage $15.00 Pine Delivered $10.00 Hdwd Stumpage Hdwd Delivered $5.00 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 $0.00 Figure B.1 Southeast Region 15 Year Wood Cost 5. Current Market Price of Materials: Based upon our market knowledge and the responses to our phone surveys we have found the following ranges represent current market prices for fiber delivered to the mills in the region. a. b. c. d. e. f. g. Hardwood roundwood Hardwood whole tree chips Hardwood dust Hardwood Sawmill Chips Pine roundwood Pine whole tree chips Biomass $23.00 to $25.00 per ton $30.00 to $35.00 per ton $22.00 to $25.00 per ton $27.00 to $30.00 per ton $25.00 to $28.00 per ton $35.00 to $38.00 per ton $21.00 to $25.00 per ton *All delivered prices include freight 6. Southeast Region Competition: The competition for pine and hardwood pulpwood within the region is a paper mill, a chip exporting facility, and 1 biomass facilities. The paper mill and exporting facility utilizes roundwood and chips and the biomass facilitie utilize only dirty chips. The mills are: a. International Paper – Riegelwood, NC NC Southeast Commission - Biomass Resource Study - September 2011 Page 6 of 43 b. Yildiz Entregre – USA, Wilmington, NC c. Capital Power, Southport, NC The International Paper, Riegelwood paper mill produces various paper products and fluff pulp. The mill is the largest consumer of pulpwood products in the region. Yildiz Entregre – USA is a pine chip exporter out of the Port of Wilmington. The estimated 40,000 tons of chips per month are exported to Turkey to be used in the manufacture of medium density fiber board. Yildiz appears to be a solid business for the area but previous export markets shipping from the same location have been temporary in nature. It is reported that Yildiz has potential to export more than 40,000 tons per month if the vessels and wood are available for shipment. Capital Power in Southport is a combined heat and power facility producing 103 megawatts of electricity and 1080 million pounds per hour of steam for the adjacent Archer Daniels Midland plant. The facility has the capacity to use 350,000 tons of biomass per year. It is important to note that mills outside the region will have an effect on the region. The effect of those mills outside the region will be accounted for in the Phase Three site specific study. The competition for hardwood pulpwood has remained stable with IP Riegelwood being the primary consumer. IP Riegelwood is the largest consumer of hardwood pulpwood in the region. It was reported that some hardwood pulpwood was being chipped for the power plants due to high inventory levels at the paper mill. The competition for pine pulpwood has increased since the Yildiz Entregre port facility opened in 2011. Yildiz Entregre and IP Riegelwood are the primary consumers of pine pulpwood in the area. The biomass power facility consumes approximately 350,000 tons of biomass for power a year. Based on the relatively high prices reported for the Capital Power facility at Southport, there may be some pine and hardwood pulpwood being utilized for this plant. Typically, these type facilities would utilize waste material that cannot be used by the paper mill. The IP Riegelwood mill biomass consumption has not been included because they create a considerable amount of their own biomass from the processing of pulpwood. However, they do purchase fuel chips from in-woods producers. It is important to remember that not all of this volume will be procured from within the identified region. Also, the direct competition for a specific site will vary from the total consumption of these mills. Typically, the majority of wood procured by a facility will come from within 75 miles of the facility for paper mills and 50 miles for biomass mills. Paper mills have the ability to make purchases further than 75 miles and sawmills tend to make purchases closer than 75 miles. Biomass facilities typically procure waste wood from within 50 miles. To correct for wood that is procured outside the region we have used GFR‟s Geographical Information System (GIS) and applied an overlap methodology to estimate the volumes that would be procured in the region. Figure B.2 below illustrates the procurement area of the regions paper mill and export facility and show the significant areas outside of the Southeast Region from which wood can be purchased. Based on this analysis we have determined that 960,677 tons of pine pulpwood, 546,357 tons of hardwood is in theory consumed within the region. This overlap methodology analysis allows us to “true up” the effect of wood usage in the region. The analysis does not, however, take into effect mills outside the region that will procure wood from within the region. The Phase Three site specific studies will take into affect all facilities around a site both inside and outside the Southeast Region. NC Southeast Commission - Biomass Resource Study - September 2011 Page 7 of 43 Figure B.2 Southeast Region Paper Mill Overlap Analysis Map Southeast Region Competition Paper Mill Chip Export International Paper - Riegelwood Yildiz Entregre USA Figure B.3 Southeast Region Competition NC Southeast Commission - Biomass Resource Study - September 2011 Page 8 of 43 Figure B.4 Southeast Region Competition Map 7. Southeast Region Sawmills and Residuals: The pine and hardwood sawmills in the region could be considered complementary to the biofuels industry. Sawmills produce residual chips and dust from the manufacture of lumber. A telephone survey of manufacturing locations that produce woody residuals was conducted. All manufacturers for the Southeast Region were pine and hardwood sawmills. We estimate that there are 765,550 tons of clean chips and 272,100 tons of dust produced annually. The chips typically are sold to the paper mills and the dust is either used at the sawmill for steam and lumber drying or will be sold to wood burning power plants. Most mills also produce a small amount of shavings that may be usable to the biofuels industry. It is important to note that shavings are typically priced too high for use as a biofuels feedstock. Some of the respondents would not divulge their annual production of residuals. We were, however, able to get an estimate based on the annual board footage that the mill produces and applied that to industry conversion rates based on the type of sawmill. The Georgia Pacific mill at Whiteville, NC is currently closed. The company said they have plans to re-open the facility as the economy improves. We have included the GP facilities residuals in our analysis for this report. There have been a significant amount of hardwood sawmills that have closed over the past 10 years. The Edwards Wood Products Chip Mill at Laurinburg is the only hardwood chip mill in the region. We have elected to count this mill as complementary to the biofuels industry since these chips do not go outside the region. The combined sawmill and chip mill hardwood chip production is 250,000 tons annually. The chips are supplied to an area paper mill. NC Southeast Commission - Biomass Resource Study - September 2011 Page 9 of 43 Southeast Region Hardwood Sawmills Sawmill County Turn Bull Lumber Bladen Marsh Road Lumber Corbett Package Co Edwards Wood Products Bladen New Hanover Scotland Figure B.5 Southeast Region Hardwood Sawmills Figure B.6 Southeast Region Hardwood Sawmills Map Figure B.7 shows an estimate of the amount of chips and dust produced by the mills in the region. It is important to note that some of the residual may go outside the region for use at pulp and paper mills. Southeast Regional Saw & Chip mill Residuals Product Pine Hardwood Chips 456,800 308,750 Dust 234,600 37,500 Shavings 97,080 Figure B.7 Southeast Region Sawmill Residuals NC Southeast Commission - Biomass Resource Study - September 2011 Page 10 of 43 8. Review of Logging Infrastructure: There is a well-established supply infrastructure for the Southeast Region for all products. The majority of the crew types in the region produce roundwood. This source has historically been the least expensive segment of delivered material. There is also a significant amount of in-woods chipping capacity as well. The in-woods chipping crews have the ability to provide paper quality debarked pine and hardwood chips. Several of the contacts we spoke with said that there have been several fuelwood (chips not debarked and unsuitable for the manufacture of paper) chippers added to round wood crews over the past few years to supply the wood-fired power plants. The wood suppliers that we interviewed reported that there has been a significant amount of logging capacity lost to downsizing or business closure over the past several years. Mill closures have decreased the demand for wood, thus putting a strain on the logging operations. Anecdotal evidence from surveys suggests that currently most logging jobs in the area are operating at less than full capacity. Survey respondents reported that on average they could produce an additional 15% of current production volume if markets allowed. Our experience has shown that both logging and trucking will expand and contract with economic conditions and the wood markets. In this region, additional consumption from biofuels facilities is not expected to be an issue from the logging infrastructure side of the equation. 9. Southeast Region Land Use Changes: We have utilized information from the Natural Resources Conservation Services (NRCS) Natural Resource Inventory (NRI) for the land use change portion of the report. The data documents North Carolina‟s land use over the past 20 years. The data is collected similar to the way the FIA data is collected. The data can be used on a regional basis but is limited on a county by county basis. For future projections we have utilized a report prepared by the Environment North Carolina Research and Policy Center (ENCRPC). The report was originally published in 2007 but we believe the projections are still relevant. It is important to remember that the maps below include forest and crop land. As a result, we believe the percent change figures over-estimate the impact land use changes may have to forest land. We “true the data up” with the regional data provided by the FIA survey. The majority of the Southeast Region from 1987 to 2007 lost between 5% and 8% of its forest and crop land to development. The exception to that is Sampson County which lost between 8% and 11%. Based on the FIA data for 2010, the productive forest land in the region lost 2.1% (66,000 acres). The statistical error rate for the forest land data is 3.03%. Therefore, we believe this is a good estimate of loss. Figure B.9 below shows the land ownership in the region. The balance of the Timberland acres lost is in crop land and Other Forestland. It stands to reason that crop land, although more expensive per acre, is less expensive to site prepare and develop than forest land. Much of the region remains rural and forest land and crop land are still the best uses of the land. Also, much of the land in the coastal region has poorly drained soils, subject to high a water table. In an effort to expand development, agriculture and production forestry, coastal plain landswere converted from swamps by ditching and draining.. The land that was easiest to drain is developed and used for crop land. The remaining lands could be drained, but still may not have been suitable for development and crop land. These remaining lands were then used for production forestland. In more recent years, Federal and State law have placed strict limitations on the practice of ditching and draining of wetlands; making the conversion of wetlands increasingly less likely. These lands are typically the last acres to be developed and are, in fact, expected to remain forestland into the foreseeable future. Looking forward, the ENCRPC has projected that from 2007 to 2027 the loss of crop and forest land in the region will be between 2% and 4% of the land base. We believe the trend of developing crop land before forestland will continue and thus have little effect on the NC Southeast Commission - Biomass Resource Study - September 2011 Page 11 of 43 commercial/production forestland in the region. Based on their projections we believe that land use changes with forestland will be minimal. NC Southeast Region Timberland Ownership Change 2010 Ownership by Type Land Use - Major Timberland Other Forestland Nonforest Census Water Total 5,077,349 3,041,925 24,196 1,690,680 320,550 Wildlife/Fed 6,049 6,049 - Dept of Defense 96,654 96,654 - State/County 222,048 215,999 6,049 - Private 2,741,369 2,723,222 18,147 - Other 2,011,229 1,690,680 320,550 2002 Ownership by Type Land Use - Major Timberland Other Forestland Nonforest Census Water Total 5,098,606 3,107,696 6,288 1,676,946 307,677 Wildlife/Fed - Fed/Defense 106,989 106,989 - State/County 135,959 135,959 - Private 2,871,035 2,864,748 6,288 - Other 1,984,622 1,676,946 307,677 Change (2002-2010) Timberland Other Forestland Nonforest Census Water Acres (65,771) 17,908 13,734 12,873 Figure B.8 Southeast Region Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 2011 Page 12 of 43 Figure B.9 Percent Loss of Total Crop and Forest Land, 1987-2007 *data from the NRCS and ENCRPC 2007 report Figure B.10 Projected Decrease (%) in Total Forest and Cropland, 2007-2027 *data from the NRCS and ENCRPC 2007 report NC Southeast Commission - Biomass Resource Study - September 2011 Page 13 of 43 C. Southeast Region Study Area: 1. Study Area: The 11 counties in the Southeast Region constitute the study area. See Figure C.1 for counties involved. Southeast Region Counties Bladen Hoke Robeson Brunswick New Hanover Sampson Columbus Pender Scotland Cumberland Richmond Figure C.1 Southeast Region Counties Figure C.2 Southeast Region Counties Map 2. FIA Data and Methodology: GFR utilized the U.S. Forest Service Forest Inventory and Analysis (FIA) data for this project. FIA reports on status and trends in forest area and location; in the species, size, and health of trees; in total tree growth, mortality, and removals by harvest; in wood production and utilization rates by various products; and in forest land ownership. The Forest Service has significantly enhanced the FIA program by changing from a periodic survey to an annual survey. The survey consists of sampling forest and non-forest data from permanent plots established from years of NC Southeast Commission - Biomass Resource Study - September 2011 Page 14 of 43 surveys. The surveys are conducted annually with up to 20% of the plots taken in a given year. It should be noted that the larger the sample size of the survey the better the data will be. This means that much of the county level data will have larger error rates. The county level data should only be used to obtain a general idea of the resources for the county. We also examine the region as a whole which provides a much better estimate of the volumes and acres in terms of error rates. The Phase Three site specific data is expected to be the best way to look at the region and will provide better information to biofuels companies. It should be noted that the volumes listed in this report are the best data available for a project of this scale. The FIA “Timberland” option was used for the volume, growth, and removals data so that only forests that can be legally or logistically harvested were used in the volume determinations. As an example the volumes of wood from a National Wildlife Recreational Area would not show up in the “Timberlands” option because it wouldn‟t normally be available for harvest. We feel it is best to use the “Timberlands” option because it provides the most accurate data for this type of project. The FIA timber data is characterized as follows: a. Pulpwood size includes trees from a 5” diameter at breast height (dbh) to an 11” dbh tree. b. Biomass is all material 1” to 4.9” dbh above ground (tops, limbs, and saplings). We advise that only 60% of the biomass can or will be harvested. c. Total Available is the amount of wood available to harvest that is suitable for the biofuels industry. This category could be thought of as the growing stock in the area. The category includes all volume from a 5” dbh tree to a 40” dbh tree and trees classified pulpwood, topwood, or Grade 4 & 5 sawtimber. Grade 4 & 5 sawtimber isn‟t accepted by area sawmills due to defects and thus can be used as a lower value product. We have not included any higher value sawtimber data in this report due to the cost of the logs. d. Growth is the amount of wood that has grown from the “Total Available” stock. e. Removals are an estimate of the material that has been removed due to logging activity. f. The percent difference in Growth to Removals is a way to determine if more volume is being grown or being removed from an area. The land and ownership data from FIA is characterized as follows: a. The FIA data for land and land use change is derived from the US Census Bureau. The total acres for any given county from the 2002 FIA data and the 2010 FIA data show acreage differences due to a change in how the Bureau of Census calculated the acreage between the two samples. This change in methodology only allows us to see basic trends in forestland acreage and not exact acre change. b. “Timberland” is considered forests that have the ability to grow more than 20 cubic feet of timber per acre per year thus indicating a productive forest. c. “Other Forestland” is considered forests that do not have the ability to grow more that 20 cubic feet of timber per acre per year. These forest are typically dry mountain ridge tops or swamps that contain water most of the year. d. “Non-forest” is land that has never supported forests or land formerly forested where timber production is precluded by development or other uses. e. “Census Water” are Streams, sloughs, estuaries, canals, and other moving bodies of water 200 feet wide and greater, and lakes, reservoirs, ponds, and other permanent bodies of water 4.5 acres in area and greater. 3. Summary of Southeast Region, North Carolina: The Southeast Region as a whole has good growing stock for pulpwood and biomass. The pine pulpwood stocks have a percent difference in growth to removals of 73.3% and hardwood is 56% both indicating more growth than removals. NC Southeast Commission - Biomass Resource Study - September 2011 Page 15 of 43 Both the pine and hardwood stocks appear to be sustainable based on the growth to removals aspect. There is 10.6 tons per acre of biomass per timberland acre across the region. This is a moderately high amount of biomass per acre and indicates that the pine and hardwood pulpwood will be sustainable in the future. The logging and soil conditions in the region range from wet swamps in many of the eastern counties to dry rolling hills in the western portion of the region. In general when the soil conditions are wet, we see higher logging cost. As a result of this trend the areas to the east would typically expect to have overall higher logging and delivered cost, and will have difficulty delivering wood in the winter. There is a good infrastructure of “shovel” logging crews that can work in wetter soils. Logging conditions in the western portion of the region are much better for most of the year and result in overall lower logging cost. These areas typically have “conventional” logging crews that do not need specialized logging equipment to operate in wet weather condition. The region as a whole has almost 60% productive forestland and has lost 2.1% since the 2002. The 60% productive forestland is higher than many of the areas we have studied and speaks to the large amount of forest products available to the area. Overall growth for hardwood in the region is similar to other areas we have studies and is at 2.5%. The pine stocks however are growing at an average rate at 7.0%. For pine to grow in the coastal areas of the region the land must be ditched and drained. There is considerable swamp and low lands in the areas close to the coast with year round standing water that will cause growth rates overall to be much lower for hardwood. There is considerable biomass growing stock also available providing for future feedstocks for the biofuels industry. 4. Potential Opportunities: We have listed below potential opportunities for biofuels production in the region. It should be noted that our thoughts on potential opportunities are based on assumptions for the end product for a biomass using facility including, feedstock characteristics, supplier profile, pricing parameters. If a biofuels facility has a different set of economic characteristics for their project then more/less opportunities are possible. Richmond County in the western portion of the region appears to be a good location for a biofuels facility. The county has 8.9 tons per acre of pine pulpwood and 6.6 tons per acre of hardwood pulpwood. The biomass portion of the feedstocks is 10.34 and is one of the top biomass areas in the region. Reports from area wood dealers stated that the area has very little demand for wood purchases because of the distance to current wood markets. The closest consumer of wood is the Domtar Paper Mill in Bennettsville, SC. The county sits between two small chip mills in Anson and Scotland County and is close to the region‟s largest residuals market at Edwards Wood Products. There is also very good access to rail services in the southeastern portion of the county. Sampson County in the northern portion of the region also has biofuels location potential. The county has 6.58 tons per acre of pine pulpwood and 9.27 tons per acre of hardwood pulpwood. The biomass portion of the feedstocks is 9.85 tons per acre. The counties to north outside of the region have few markets for pulpwood. There are no significant wood consuming facilities in the county. There is very good transportation infrastructure with Interstate 40 and a CSX rail line to Clinton. This county also has a very high growth to removals difference indicating more potential feedstocks are being grown than removed. NC Southeast Commission - Biomass Resource Study - September 2011 Page 16 of 43 Southeast Region Pulpwood and Biomass Volumes Pine Pulpwood 2010 2007 2002 1990 Total Available 29,548,878 Average Hardwood Pulpwood 2010 2007 2002 1990 Growth 2,070,586 1,885,620 2,139,381 2,216,087 2,077,919 2010 % Difference*** Total Available Growth 50,149,698 1,239,806 1,093,625 1,226,415 1,371,557 1,232,851 Average 2010 % Difference*** Biomass* Total Available 2010 32,154,642 2007 30,621,410 2002 32,147,338 1990 33,704,154 * only approx. 50% can be recovered ** All volumes in green short tons *** % Difference in Growth vs. Removals Removals 960,328 1,069,348 1,384,254 899,412 1,078,335 73.3% Removals 697,032 668,556 919,641 675,537 740,192 56.0% Figure C.3 Southeast Region Pulpwood & Biomass Availability Southeast Region Pine Pulpwood Volume 2,500,000 2,000,000 1,500,000 Growth 1,000,000 Removals 500,000 0 1990 2002 2007 2010 Figure C.4 Southeast Region Pine Pulpwood Volume NC Southeast Commission - Biomass Resource Study - September 2011 Page 17 of 43 Southeast Region Hardwood Pulpwood Volume 1,600,000 1,400,000 1,200,000 1,000,000 800,000 Growth 600,000 Removals 400,000 200,000 0 1990 2002 2007 2010 Figure C.5 Southeast Region Hardwood Pulpwood Volume Southeast Region Biomass Volume 34,000,000 33,500,000 33,000,000 32,500,000 32,000,000 31,500,000 31,000,000 30,500,000 30,000,000 29,500,000 29,000,000 1990 2002 2007 Biomass 2010 Figure C.6 Southeast Region Biomass Volume NC Southeast Commission - Biomass Resource Study - September 2011 Page 18 of 43 D. Southeast Region County Summaries: 1. Bladen County, North Carolina: The significant wood using industry in the county is Turn Bull Lumber. The sawmill located in Elizabethtown produces grade lumber and sawmill residuals. There is a biomass to power facility in the county but is currently not operating. The general logging and soil conditions in the county are characterized as good but can be limiting during periods of high precipitation. The growth to removals for pine is positive at 92.8% indicating there is almost twice the growth to removals. The hardwood resource is currently limiting showing a -24.5% difference in growth to removals indicating more hardwood is being removed than is growing. All previous surveys show a positive growth to removals difference. It is unknown when or if this trend will turn around. Typically, as a resource is reduced to these levels logging activity moves out of the area and the resource will recover. The biomass portion of the forestland has 9.4 tons per timberland acre and is considered moderate for future pine and hardwood pulpwood growth potential. The county appears to be losing timberland to non-forest sources but still is 71.7% productive forestland. Bladen County, NC Pulpwood and Biomass Volumes Pine Pulpwood Total Available Growth Removals 2010 2,671,366 315,279 115,416 2007 354,922 152,693 2002 294,549 153,760 1990 317,280 171,340 320,507 148,302 Average 2010 % Difference*** 92.8% Hardwood Pulpwood Total Available Growth Removals 2010 2,795,898 178,411 228,955 2007 151,632 63,952 2002 211,370 153,207 1990 168,854 89,550 177,567 133,916 Average 2010 % Difference*** -24.8% Biomass* Total Available Tons/acre 2010 3,729,232 9.39 2007 3,725,502 2002 4,095,270 1990 3,938,976 * only approx. 50% can be recovered ** All volumes in green short tons *** % Difference in Growth vs. Removals Figure D.1 Bladen County Pulpwood & Biomass Volumes NC Southeast Commission - Biomass Resource Study - September 2011 Page 19 of 43 Bladen County, NC Hardwood Pulpwood Volume Bladen County, NC Pine Pulpwood Volume 250,000 400,000 350,000 200,000 300,000 250,000 150,000 200,000 Growth 150,000 Removals Growth 100,000 100,000 Removals 50,000 50,000 0 0 1990 2002 2007 1990 2010 Figure D.2 Bladen County Pine Volume 2002 2007 2010 Figure D.3 Bladen County Hardwood Volume Bladen County, NC Biomass Volume 4,200,000 4,100,000 4,000,000 3,900,000 3,800,000 Biomass 3,700,000 3,600,000 3,500,000 1990 2002 2007 2010 Figure D.4 Bladen County Biomass Volume Bladen County, NC Timberland Ownership Change 2010 Ownership by Type Land Use - Major Timberland Nonforest Census Water Total 552,935 396,969 146,334 9,632 State 48,142 48,142 - Private 348,827 348,827 - Other 155,966 146,334 9,632 2002 Ownership by Type Land Use - Major Timberland Nonforest Census Water Total 572,643 411,673 141,839 19,131 State 37,205 37,205 - Private 374,468 374,468 - Other 160,971 141,839 19,131 Change (2002-2010) Timberland Nonforest Census Water Acres (14,704) 4,495 (9,499) Figure D.5 Bladen County Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 2011 Page 20 of 43 2. Brunswick County, North Carolina: There are two significant wood using industries in the county. Coxwood Industries purchases pine sawtimber to be used as power poles. All of their residual products are used in a boiler system to produce steam. The Capital Power Southport facility purchases biomass to burn for steam and electricity. The general logging and soil conditions in the county are characterized as wet and can be limiting during periods of high precipitation. Specialty wet weather logging crews are able to work on these soils in almost any weather conditions. The growth to removals for both pine and hardwood are positive indicating that the resource is sustainable. The biomass portion of the forestland has 9.5 tons per timberland acre and is considered moderate for future pine and hardwood pulpwood growth potential. Like many coastal NC counties, Brunswick County experienced significant residential development in the 1990‟s and early 2000‟s and appears to be losing timberland to other forestland and nonforestland sources but still is 58% productive forestland. Brunswick County, NC Pulpwood and Biomass Volumes Pine Pulpwood 2010 2007 2002 1990 Total Available 2,480,059 Average Hardwood Pulpwood 2010 2007 2002 1990 Total Available 3,070,004 Average Biomass* Total Available 2010 3,888,996 2007 3,736,646 2002 3,759,418 1990 3,660,522 * only approx. 50% can be recovered ** All volumes in green short tons *** % Difference in Growth vs. Removals Growth 323,810 297,458 232,949 455,928 327,536 2010 % Difference*** Growth 174,007 168,967 102,044 150,804 148,955 2010 % Difference*** Tons/acre 9.53 Removals 229,606 293,906 298,132 166,336 246,995 34.0% Removals 26,546 29,453 106,563 130,436 73,250 147.1% Figure D.6 Brunswick County Pulpwood & Biomass Volumes NC Southeast Commission - Biomass Resource Study - September 2011 Page 21 of 43 Brunswick County, NC Hardwood Pulpwood Volume Brunswick County, NC Pine Pulpwood Volume 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 1990 2002 2007 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Growth Removals 2010 1990 Figure D.7 Brunswick County Pine Volume 2002 2007 Growth Removals 2010 Figure D.8 Brunswick County Hardwood Volume Brunswick County, NC Biomass Volume 3,950,000 3,900,000 3,850,000 3,800,000 3,750,000 3,700,000 Biomass 3,650,000 3,600,000 3,550,000 3,500,000 1990 2002 2007 2010 Figure D.9 Brunswick County Biomass Volume 2010 Ownership by Type Land Use - Major Timberland Other Forestland Nonforest Census Water 2002 Ownership by Type Land Use - Major Timberland Other Forestland Nonforest Census Water Brunswick County, NC Timberland Ownership Change Total Dept of Defense State 697,297 6,049 12,098 407,903 6,049 12,098 12,098 133,617 143,679 Total 688,615 424,026 6,288 118,366 139,936 Other Federal 6,288 State Private 401,854 389,756 12,098 - Other 277,296 133,617 143,679 Private 424,026 417,739 6,288 Other 258,302 118,366 139,936 Change (2002-2010) Acres Timberland (16,123) Other Forestland 5,810 Nonforest 15,251 Census Water 3,743 Figure D.10 Brunswick County Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 2011 Page 22 of 43 3. Columbus County, North Carolina: Columbus County has the most wood using facilities in the region. The West Fraser Sawmill at Armour, NC is a large consumer of pine sawtimber. This mill has significant pine residuals that would be useful to the biofuels industry. International Paper has a paper mill at Riegelwood, NC that consumes significant volumes of pine and hardwood pulpwood. Georgia Pacific has a plywood mill and sawmill at Whiteville that is currently closed. The general logging and soil conditions in the county are characterized as wet and can be limiting during periods of high precipitation. The growth to removals for both pine and hardwood are positive indicating that the resource is sustainable. The biomass portion of the forestland has 12.8 tons per timberland acre and is considered high for future pine and hardwood pulpwood growth potential. The county has 62% productive forestland but has shown a 10.8% drop in Timberland over the past 8 year. Columbus County, NC Pulpwood and Biomass Volumes Pine Pulpwood 2010 2007 2002 1990 Total Available 2,029,965 Average Hardwood Pulpwood 2010 2007 2002 1990 Total Available 4,972,135 Average Biomass* Total Available 2010 4,858,592 2007 4,713,124 2002 5,296,580 1990 6,238,962 * only approx. 50% can be recovered ** All volumes in green short tons *** % Difference in Growth vs. Removals Growth 210,940 194,039 292,114 331,245 257,085 2010 % Difference*** Growth 197,717 175,094 184,585 232,794 197,547 2010 % Difference*** Tons/acre 12.80 Removals 149,607 140,532 305,358 147,366 185,715 34.0% Removals 112,230 128,121 116,345 86,288 110,746 55.2% Figure D.11 Columbus County Pulpwood & Biomass Volumes NC Southeast Commission - Biomass Resource Study - September 2011 Page 23 of 43 Columbus County, NC Pine Pulpwood Volume Columbus County, NC Hardwood Pulpwood Volume 350,000 250,000 300,000 200,000 250,000 200,000 150,000 150,000 Growth Growth 100,000 Removals Removals 100,000 50,000 50,000 0 1990 2002 2007 0 2010 1990 Figure D.12 Columbus County Pine Volume 2002 2007 2010 Figure D.13 Columbus County Hardwood Volume Columbus County, NC Biomass Volume 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 Biomass 2,000,000 1,000,000 0 1990 2002 2007 2010 Figure D.14 Columbus County Biomass Volume Columbus County, NC Timberland Ownership Change 2010 Ownership by Type Land Use - Major Timberland Nonforest Census Water Total 609,062 379,528 216,691 12,842 State 17,298 17,298 - Private 362,230 362,230 - Other 229,533 216,691 12,842 2002 Ownership by Type Land Use - Major Timberland Nonforest Census Water Total 618,664 421,429 183,870 13,365 State 6,288 6,288 - Private 415,141 415,141 - Other 197,235 183,870 13,365 Change (2002-2010) Timberland Nonforest Census Water Acres (41,901) 32,821 (523) Figure D.15 Columbus County Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 2011 Page 24 of 43 4. Cumberland County, North Carolina There are no significant wood using facilities in the county. The general logging and soil conditions in the county are characterized as dry for much of the county and many areas can be accessed year round. Loggers from the coastal areas will move to this region in the wetter months to operate on dryer soils. The growth to removals data for both pine and hardwood is positive. The biomass portion of the forestland has 11.85 tons per timberland acre and is considered high for future pine and hardwood pulpwood growth potential. The county has 53% productive forestland. Cumberland County, NC Pulpwood and Biomass Volumes Pine Pulpwood 2010 2007 2002 1990 Total Available 863,726 Growth 78,040 76,793 78,577 62,576 73,996 Average 2010 % Difference*** Hardwood Pulpwood Total Available Growth 2010 2,316,259 60,899 2007 36,372 2002 96,965 1990 165,668 89,976 Average 2010 % Difference*** Biomass* Total Available Tons/acre 2010 2,640,572 11.85 2007 2,523,270 2002 2,906,810 1990 2,576,456 * only approx. 50% can be recovered ** All volumes in green short tons *** % Difference in Growth vs. Removals Removals 27,974 46,198 4,020 51,902 32,524 94.5% Removals 59,443 113,358 55,733 55,897 71,108 2.4% Figure D.16 Cumberland County Pulpwood & Biomass Volumes NC Southeast Commission - Biomass Resource Study - September 2011 Page 25 of 43 Cumberland County, NC Hardwood Pulpwood Volume Cumberland County, NC Pine Pulpwood Volume 90,000 180,000 80,000 160,000 70,000 140,000 60,000 120,000 50,000 100,000 Growth 40,000 80,000 Removals 30,000 60,000 20,000 40,000 10,000 20,000 0 1990 2002 2007 Growth Removals 0 2010 1990 Figure D.17 Cumberland County Pine Volume 2002 2007 2010 Figure D.18 Cumberland County Hardwood Volume Cumberland County, NC Biomass Volume 3,000,000 2,900,000 2,800,000 2,700,000 2,600,000 Biomass 2,500,000 2,400,000 2,300,000 1990 2002 2007 2010 Figure D.19 Cumberland County Biomass Volume 2010 Ownership by Type Land Use - Major Timberland Nonforest Cumberland County, NC Timberland Ownership Change Total Fed/Defense State/County 31,971 19,597 415,499 31,971 19,597 222,904 192,596 - Private 171,336 171,336 - Other 192,596 192,596 2002 Ownership by Type Land Use - Major Timberland Nonforest Total 408,212 205,618 202,594 Private 170,161 170,161 - Other 202,594 202,594 Fed/Defense 21,961 21,961 - State/County 13,496 13,496 - Change (2002-2010) Acres Timberland 17,286 Nonforest (9,998) Figure D.20 Cumberland County Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 2011 Page 26 of 43 5. Hoke County, North Carolina: There are no significant wood using facilities in the county. A significant amount of the county‟s forestland is made up of Fort Bragg Army Instillation. The general logging and soil conditions in many areas of the county are characterized as dry. The growth to removals data is positive for both pine and hardwood indicating a sustainable and growing pulpwood forest. The biomass portion of the forestland has 12.6 tons per timberland acre and is considered high for future pine and hardwood pulpwood growth potential. The county has 72% productive forestland but a large portion of the county is within Fort Bragg‟s boundaries. Fort Bragg has an active forest management program on the base but it is primarily Long Leaf Pine restoration and is not likely to contribute significantly to the wood supply. Hoke County, NC Pulpwood and Biomass Volumes Pine Pulpwood 2010 2007 2002 1990 Total Available 677,698 Growth Removals 48,101 18,674 40,612 21,355 47,551 2,077 82,536 16,191 54,700 14,574 Average 2010 % Difference*** 88.1% Hardwood Pulpwood Total Available Growth Removals 2010 1,530,712 58,169 9,850 2007 64,425 7,830 2002 35,688 9,965 1990 43,711 17,012 50,498 11,164 Average 2010 % Difference*** 142.1% Biomass* Total Available Tons/acre 2010 2,149,208 12.64 2007 2,042,274 2002 1,864,300 1990 1,276,074 * only approx. 50% can be recovered ** All volumes in green short tons *** % Difference in Growth vs. Removals Figure D.21 Hoke County Pulpwood & Biomass Volumes NC Southeast Commission - Biomass Resource Study - September 2011 Page 27 of 43 Hoke County, NC Pine Pulpwood Volume Hoke County, NC Hardwood Pulpwood Volume 90,000 70,000 80,000 60,000 70,000 50,000 60,000 50,000 40,000 30,000 40,000 Growth 30,000 Removals 10,000 10,000 0 0 2002 2007 Removals 20,000 20,000 1990 Growth 1990 2010 Figure D.22 Hoke County Pine Volume 2002 2007 2010 Figure D.23 Hoke County Hardwood Volume Hoke County, NC Biomass Volume 2,500,000 2,000,000 1,500,000 1,000,000 Biomass 500,000 0 1990 2002 2007 2010 Figure D.24 Hoke County Biomass Volume Hoke County, NC Timberland Ownership Change 2010 Ownership by Type Land Use - Major Timberland Nonforest Total 237,870 170,051 67,819 Fed/Defense 58,635 58,635 - State 5,799 5,799 - Private 105,618 105,618 - Other 67,819 67,819 2002 Ownership by Type Land Use - Major Timberland Nonforest Total 243,127 178,061 65,066 Fed/Defense 78,741 78,741 - State - Private 99,321 99,321 - Other 65,066 65,066 Change (2002-2010) Timberland Nonforest Acres (8,010) 2,753 Figure D.25 Hoke County Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 2011 Page 28 of 43 6. New Hanover County, North Carolina: There are two significant wood using facilities in the county. Corbett Packaging has a veneer mill that purchases hardwood logs and produces wood waste for the Capital Power facility. Yildiz Entregre – USA purchases pine roundwood and chips at the Port of Wilmington for export to Turkey. A large part of the county is the City of Wilmington. The county has only 19% timberland and is the most populated county in the region. This area could be considered for a biofuels facility if the facility needed export capabilities from the port. Both pine and hardwood appear to be sustainably managed but there is very little resource in the county. The biomass portion of the forestland has 3.2 tons per timberland acre and is considered very low for future pine and hardwood pulpwood growth potential. New Hanover County, NC Pulpwood and Biomass Volumes Pine Pulpwood 2010 2007 2002 1990 Total Available 333,683 Growth 30,140 32,021 18,177 14,424 23,690 Average 2010 % Difference*** Hardwood Pulpwood Total Available Growth 2010 213,704 13,448 2007 8,566 2002 10,325 1990 23,942 14,070 Average 2010 % Difference*** Biomass* Total Available Tons/acre 2010 136,430 3.18 2007 138,014 2002 136,092 1990 195,186 * only approx. 50% can be recovered ** All volumes in green short tons *** % Difference in Growth vs. Removals Removals 9,192 9,865 0 7,492 6,637 106.5% Removals 9,215 7,532 11,500 2,514 7,690 37.4% Figure D.26 New Hanover County Pulpwood & Biomass Volumes NC Southeast Commission - Biomass Resource Study - September 2011 Page 29 of 43 New Hanover County, NC Pine Pulpwood Volume New Hanover County, NC Hardwood Pulpwood Volume 35,000 30,000 30,000 25,000 25,000 20,000 15,000 20,000 Growth 15,000 Removals 10,000 10,000 0 2002 2007 Removals 5,000 5,000 1990 Growth 0 2010 1990 Figure D.27 New Hanover County Pine Volume 2002 2007 2010 Figure D.28 New Hanover County Hardwood Volume New Hanover County, NC Biomass Volume 250,000 200,000 150,000 100,000 Biomass 50,000 0 1990 2002 2007 2010 Figure D.29 New Hanover County Biomass Volume New Hanover County, NC Timberland Ownership Change 2010 Ownership by Type Land Use - Major Timberland Nonforest Census Water Total 221,104 42,901 78,375 99,828 State 4,454 4,454 - Private 38,447 38,447 - Other 178,203 78,375 99,828 2002 Ownership by Type Land Use - Major Timberland Nonforest Census Water Total 224,433 46,120 80,219 98,094 State 7,905 7,905 - Private 38,215 38,215 - Other 178,312 80,219 98,094 Change (2002-2010) Timberland Nonforest Census Water Acres (3,219) (1,844) 1,734 Figure D.30 New Hanover County Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 2011 Page 30 of 43 7. Pender County, North Carolina: There is no significant wood using facilities in the county. The general logging conditions in the county are considered wet natured with most sites available for harvest six to eight months out of the year. The growth to removals for the county is good with pine and hardwood growth twice that of removals. The biomass portion of the forestland has 9.3 tons per timberland acre and is considered moderate for future pine and hardwood pulpwood growth potential. The productive timberland acres in the county are 72% and appear to be growing with acres being removed from cropland. The Angola and Holly Shelter Game Lands are in this county. Both areas have active forest management programs but should not be considered as open market sources as they are government managed. Pender County, NC Pulpwood and Biomass Volumes Pine Pulpwood Total Available Growth Removals 2010 2,739,071 322,756 108,078 2007 260,549 112,073 2002 553,457 305,604 1990 456,140 109,996 158,938 Average 398,225 2010 % Difference*** 99.7% Hardwood Pulpwood Total Available Growth Removals 2010 3,920,945 109,108 28,347 2007 77,791 25,630 2002 166,869 72,468 1990 137,989 72,705 49,788 Average 122,939 2010 % Difference*** 117.5% Biomass* Total Available Tons/acre 2010 3,954,030 9.30 2007 3,747,884 2002 3,578,550 1990 4,409,288 * only approx. 50% can be recovered ** All volumes in green short tons *** % Difference in Growth vs. Removals Figure D.31 Pender County Pulpwood & Biomass Volumes NC Southeast Commission - Biomass Resource Study - September 2011 Page 31 of 43 Pender County, NC Hardwood Pulpwood Volume Pender County, NC Pine Pulpwood Volume 180,000 600,000 160,000 500,000 140,000 120,000 400,000 300,000 200,000 100,000 Growth 80,000 Removals 60,000 20,000 0 2002 2007 Removals 40,000 100,000 1990 Growth 0 2010 1990 Figure D.32 Pender County Pine Volume 2002 2007 2010 Figure D.33 Pender County Hardwood Volume Pender County, NC Biomass Volume 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 1990 2002 2007 Biomass 2010 Figure D.34 Pender County Biomass Volume Pender County, NC Timberland Ownership Change 2010 Ownership by Type Total State Private 592,405 58,540 378,708 Land Use - Major 425,150 52,491 372,659 Timberland 12,098 6,049 6,049 Other Forestland 116,446 Nonforest Census Water 38,711 - Other 155,157 116,446 38,711 2002 Ownership by Type Land Use - Major Timberland Other Forestland Nonforest Census Water Other 166,438 137,190 29,248 Total 590,701 424,263 137,190 29,248 State 47,817 47,817 - Private 376,446 376,446 - Change (2002-2010) Acres Timberland 887 Other Forestland 12,098 Nonforest (20,744) Census Water 9,463 Figure D.35 Pender County Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 2011 Page 32 of 43 8. Richmond County, North Carolina: There are no significant wood using facilities in the county. The general logging conditions in the county are considered good with most sites available for harvest ten months out of the year. The growth to removals for the county is very good for both pine and hardwood. The hardwood growth has decreased over the past two surveys year but removals also reduced. The biomass portion of the forestland has 10.3 tons per timberland acre and is considered high for future pine and hardwood pulpwood growth potential. The productive timberland acres in the county are steady at 76%. Reports from industry professionals indicated that Richmond County could have potential for a Phase Two site. Richmond County, NC Pulpwood and Biomass Volumes Pine Pulpwood Total Available Growth Removals 2010 2,193,625 235,833 152,886 2007 247,435 117,999 2002 231,723 124,459 1990 198,442 80,846 119,048 Average 228,358 2010 % Difference*** 42.7% Hardwood Pulpwood Total Available Growth Removals 2010 1,627,154 72,729 33,162 2007 58,131 37,075 2002 189,303 105,757 1990 113,932 22,729 49,680 Average 108,524 2010 % Difference*** 74.7% Biomass* Total Available Tons/acre 2010 2,539,940 10.34 2007 2,404,704 2002 2,696,994 1990 2,385,222 * only approx. 50% can be recovered ** All volumes in green short tons *** % Difference in Growth vs. Removals Figure D.36 Richmond County Pulpwood & Biomass Volumes NC Southeast Commission - Biomass Resource Study - September 2011 Page 33 of 43 Richmond County, NC Hardwood Pulpwood Volume Richmond County, NC Pine Pulpwood Volume 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 300,000 250,000 200,000 150,000 100,000 Growth Removals 50,000 0 1990 2002 2007 2010 1990 Figure D.37 Richmond County Pine Volume 2002 2007 Growth Removals 2010 Figure D.38 Richmond County Hardwood Volume Richmond County, NC Biomass Volume 2,750,000 2,700,000 2,650,000 2,600,000 2,550,000 2,500,000 2,450,000 2,400,000 2,350,000 2,300,000 2,250,000 2,200,000 1990 2002 2007 Biomass 2010 Figure D.39 Richmond County Biomass Volume 2010 Ownership by Type Land Use - Major Timberland Nonforest Census Water Richmond County, NC Timberland Ownership Change Total Wildlife/Fed State/County 321,304 6,049 21,996 245,586 6,049 21,996 66,267 9,451 - Private 217,541 217,541 - Other 75,718 66,267 9,451 2002 Ownership by Type Land Use - Major Timberland Nonforest Census Water Total 335,306 275,200 57,507 2,600 Private 246,245 246,245 - Other 60,106 57,507 2,600 Change (2002-2010) Timberland Nonforest Census Water Figure D.40 Acres (29,614) 8,760 6,851 Pender County Timberland Ownership Change Wildlife/Fed 6,288 6,288 - State/County 22,667 22,667 - NC Southeast Commission - Biomass Resource Study - September 2011 Page 34 of 43 9. Robeson County, North Carolina: There are no significant wood using facilities in the county. The general logging conditions in the county are considered good with most sites available for harvest nine months out of the year. The growth to removals for the county is good for both pine and hardwood. The biomass portion of the forestland has 12.2 tons per timberland acre and is considered high for future pine and hardwood pulpwood growth potential. The productive timberland acres in the county are increasing and currently are at 55%. Area wood dealers report that much of the wood from this county will go to a Domtar Paper Mill in Marlboro County, SC. Robeson County, NC Pulpwood and Biomass Volumes Pine Pulpwood Total Available Growth Removals 2010 1,517,752 204,570 98,803 2007 162,050 109,097 2002 144,588 59,938 1990 57,245 64,971 83,202 Average 142,113 2010 % Difference*** 69.7% Hardwood Pulpwood Total Available Growth Removals 2010 3,954,526 163,506 147,353 2007 147,728 193,387 2002 109,235 142,962 1990 138,931 77,574 140,319 Average 139,850 2010 % Difference*** 10.4% Biomass* Total Available Tons/acre 2010 4,102,926 12.15 2007 3,788,052 2002 4,278,994 1990 4,512,710 * only approx. 50% can be recovered ** All volumes in green short tons *** % Difference in Growth vs. Removals Figure D.41 Robeson County Pulpwood & Biomass Volumes NC Southeast Commission - Biomass Resource Study - September 2011 Page 35 of 43 Robeson County, NC Pine Pulpwood Volume Robeson County, NC Hardwood Pulpwood Volume 250,000 250,000 200,000 200,000 150,000 150,000 Growth 100,000 Growth 100,000 Removals 50,000 50,000 0 1990 2002 2007 0 2010 1990 Figure D.42 Robeson County Pine Volume 2002 2007 2010 Figure D.43 Robeson County Hardwood Volume Robeson County, NC Biomass Volume 4,600,000 4,400,000 4,200,000 4,000,000 Biomass 3,800,000 3,600,000 3,400,000 1990 Removals 2002 2007 2010 Figure D.44 Robeson County Biomass Volume Robeson County, NC Timberland Ownership Change 2010 Ownership by Type Total State/County Private 327,179 Land Use - Major 608,543 10,564 327,179 Timberland 337,743 10,564 Nonforest 264,462 Census Water 6,338 - Other 270,800 264,462 6,338 2002 Ownership by Type Land Use - Major Timberland Nonforest Census Water Other 260,624 255,885 4,739 Total 599,502 338,878 255,885 4,739 State/County - Private 338,878 338,878 - Change (2002-2010) Acres Timberland (1,135) Nonforest 8,577 Census Water 1,599 Figure D.45 Robeson County Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 2011 Page 36 of 43 10. Sampson County, North Carolina: There are no significant wood using facilities in the county. The general logging conditions in the county are considered good with most sites available for harvest seven months out of the year for conventional logging. The growth to removals for the county is very good for both pine and hardwood. The growth to removals is double for both pine and hardwood. The biomass portion of the forestland has 9.85 tons per timberland acre and is considered moderate for future pine and hardwood pulpwood growth potential. The productive timberland acres in the county are decreasing and currently are at 44%. Sampson County, NC Pulpwood and Biomass Volumes Pine Pulpwood Total Available Growth Removals 2010 1,790,302 210,618 38,955 2007 150,726 47,684 2002 191,396 84,653 1990 169,092 49,171 180,458 55,116 Average 2010 % Difference*** 137.6% Hardwood Pulpwood Total Available Growth Removals 2010 2,522,500 149,435 26,319 2007 150,407 26,049 2002 94,290 74,700 1990 173,903 120,830 142,009 61,974 Average 2010 % Difference*** 140.1% Biomass* Total Available Tons/acre 2010 2,687,094 9.85 2007 2,472,324 2002 2,349,170 1990 3,229,970 * only approx. 50% can be recovered ** All volumes in green short tons *** % Difference in Growth vs. Removals Figure D.46 Sampson County Pulpwood & Biomass Volumes NC Southeast Commission - Biomass Resource Study - September 2011 Page 37 of 43 Sampson County, NC Hardwood Pulpwood Volume Sampson County, NC Pine Pulpwood Volume 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 250,000 200,000 150,000 Growth 100,000 Removals 50,000 0 1990 2002 2007 2010 1990 Figure D.47 Sampson County Pine Volume 2002 2007 Growth Removals 2010 Figure D.48 Sampson County Hardwood Volume Sampson County, NC Biomass Volume 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 Biomass 1,000,000 500,000 0 1990 2002 2007 2010 Figure D.49 Sampson County Biomass Volume Sampson County, NC Timberland Ownership Change 2010 Ownership by Type Total State Private 262,740 Land Use - Major 612,790 10,096 262,740 Timberland 272,836 10,096 Nonforest 339,886 Census Water 68 - Other 339,954 339,886 68 2002 Ownership by Type Land Use - Major Timberland Nonforest Census Water Other 315,184 313,285 1,899 Total 584,864 269,680 313,285 1,899 State 9,988 9,988 - Private 259,692 259,692 - Change (2002-2010) Acres Timberland 3,156 Other Forestland 0 Nonforest 26,601 Census Water (1,831) Figure D.50 Sampson County Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 2011 Page 38 of 43 11. Scotland County, North Carolina: There is one significant wood using facility in the county. Edwards Wood Products is a large manufacture of hardwood pallet stock. This hardwood sawmill will produce large volumes of sawmill residuals that will be of use to the biofuels industry. Edwards Wood Products also has a chip mill that produces hardwood chips for their paper mill customers. The general logging conditions in the county are considered good with most sites available for harvest nine months out of the year. The growth to removals for the county is good for both pine and hardwood with growth being twice the removals tonnage. The biomass portion of the forestland has 8.9 tons per timberland acre and is considered moderate for future pine and hardwood pulpwood growth potential. The productive timberland acres in the county are decreasing but are still significant at 67%. Scotland County, NC Pulpwood and Biomass Volumes Pine Pulpwood Total Available Growth Removals 2010 1,085,794 90,501 11,137 2007 69,016 17,948 2002 54,300 46,254 1990 71,180 33,801 71,249 27,285 Average 2010 % Difference*** 156.2% Hardwood Pulpwood Total Available Growth Removals 2010 876,803 62,376 15,613 2007 54,511 36,170 2002 25,741 70,440 1990 21,029 0 40,914 30,556 Average 2010 % Difference*** 119.9% Biomass* Total Available Tons/acre 2010 1,257,198 8.96 2007 1,132,002 2002 1,056,212 1990 1,052,532 * only approx. 50% can be recovered ** All volumes in green short tons *** % Difference in Growth vs. Removals Figure D.51 Scotland County Pulpwood & Biomass Volumes NC Southeast Commission - Biomass Resource Study - September 2011 Page 39 of 43 Scotland County, NC Hardwood Pulpwood Volume Scotland County, NC Pine Pulpwood Volume 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 1990 2002 2007 80,000 70,000 60,000 50,000 Growth 40,000 Growth Removals 30,000 Removals 20,000 10,000 0 2010 1990 Figure D.52 Scotland County Pine Volume 2002 2007 2010 Figure D.53 Scotland County Hardwood Volume Scotland County, NC Biomass Volume 1,300,000 1,250,000 1,200,000 1,150,000 1,100,000 Biomass 1,050,000 1,000,000 950,000 1990 2002 2007 2010 Figure D.54 Scotland County Biomass Volume Scotland County, NC Timberland Ownership Change 2010 Ownership by Type Total State Private 13,463 126,890 Land Use - Major 208,540 13,463 126,890 Timberland 140,353 Nonforest 68,187 - Other 68,187 68,187 2002 Ownership by Type Land Use - Major Timberland Nonforest Other 70,640 70,640 Total 202,239 131,598 70,640 State 13,261 13,261 - Private 118,337 118,337 - Change (2002-2010) Acres Timberland 8,755 Nonforest (2,453) Figure D.55 Scotland County Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 2011 Page 40 of 43 E. Southeast Region Sustainability: Figure E.1 below shows a theoretical model of the pulpwood (pine and hardwood) available each year considering two different theoretical forest rotation lengths – 30 and 35 years. The purpose of the model is to determine how many tons would be available each year using certain assumptions. First we determined the average tons per acre (26.2) using the total available pulpwood tons divided by the total timberland acres. We then determined the acres available to harvest in a 30 year (101,398 acres) and 35 year (86,912 acres) forest rotation length. We then multiply the acres available for harvest by the average tons per acre. This tells us (in theory) how many pine and hardwood pulp tons would be available under the two different rotations lengths each year. We then add the estimated area residuals (1,134,730 tons) and subtract the total effective competition for the region (1,507,034 tons). The remaining volume is the theoretical amount of pine and hardwood pulpwood that will be available each year to harvest. Based on the model there is a significant amount of pine and hardwood pulpwood that would be available each year as a feedstock for the biofuels industry. It is important to note that sustainability rates will vary based on 1. The major species type – pine or hardwood 2. The location of the facility 3. The effective competition within the procurement radius of the facility The forest rotation length has been decreasing over the past decade. Traditionally timberlands in this area have been grown to 50 years and older. Current timberland management is closer to a 30 year forest rotation length. Regional Sustainability Model - Pine and Hardwood Pulpwood 3,041,925 Total Timberland Acres * Total pulp tons Average tons / acre ** Rotation Length in years Acres harvested yearly Average tons available/year Plus Area Residuals Less Effective Area Competition 79,698,576 26.2 30 Yrs 101,398 35 Yrs 86,912 2,656,619 1,134,730 2,277,102 1,134,730 1,507,034 1,507,034 Est. of Available Pulpwood 2,284,316 1,904,799 * acres for the region ** Total pulp and topwood tons divided by Total Timberland Acres ***acres exclude Federal and Wildlife lands Figure E.1 Regional Sustainability Model NC Southeast Commission - Biomass Resource Study - September 2011 Page 41 of 43 F. Review of Programs 1. Review of the Renewable Fuel Standard (RFS) Cellulosic Biomass Program: The RFS2 provides incentive to develop and produce biofuels from cellulosic sources. The Environmental Protection Agency (EPA) is responsible for establishing and implementing regulations to ensure that the nation‟s transportation fuel supply contains the mandated biofuels volumes. Some of the specifics of the program for biofuels are: a. A credit-trading program where 1 gallon of cellulosic biomass ethanol or waste derived ethanol is equal to 2.5 gallons of renewable fuel. b. A cellulosic biomass industry producing 250 million gallons in 2013 c. Loan Guarantee Programs of $250 million per facility d. $650 million Grant Programs for cellulosic ethanol e. The program creates an Advanced Biofuels Technologies Program of $550 million. The current version of the RFS contains significant restrictions that add cost and reduce the available feedstocks for the program. The significant drawback of the program as it relates to the biomass feedstocks are: f. The eligible feedstocks allowed by the EPA at this time are restricted to wood grown from plantations, logging debris left over after timber harvest, or material from pre-commercial thinnings. This restrictive definition of allowable feedstocks will prevent much of the hardwood that is available in the region to be used by the biofuels industry. g. Mill residuals are not allowed as a feedstock for the biofuels industry. h. The RFS has a requirement that the wood being used by the biorefinery must be under a land management plan and be certified in a “silvicultural product certification system”. The systems available to the private landowner in the Southeast Region would be the American Tree Farm System or the Sustainable Forestry Initiative. Both of these certification systems have a cost and could prove to be prohibitive to the landowner or the biorefinery. The cost to certify forest for the RFS depends on the volume of wood coming from an individual landowner. There are many firms working to get the RFS changed to allow a better mix of feedstocks that represent the forest of North Carolina. It is thought that the RF3 will incorporate changes that better reflect the available feedstocks while maintaining environmental quality and sustainability. 2. Review of the Biomass Crop Assistance Program: The Biomass Crop Assistance Program (BCAP) provides financial assistance through matching payments to owners and operators of agricultural and non-industrial private forest land who wish to establish, produce, and deliver biomass feedstocks to a qualified biomass conversion facility. For the purposes of this report we will only look at forest biomass. The program is administered through the Farm Services Agency of the US Department of Agriculture and was initiated to incentivize loggers and landowners to collect biomass feedstocks and deliver them to approved facilities. The facilities would use the feedstocks to produce energy. BCAP provides two categories of payment assistance: a. Matching payments: a matching payment is available to a producer of biomass IF the biomass is collected for: i. Improvement of forest health (pre-commercial thinnings) ii. Restoration of ecosystems iii. Fuel load reductions to mitigate fire hazards NC Southeast Commission - Biomass Resource Study - September 2011 Page 42 of 43 There is very little of this activity in the region and therefore prevents landowners and biomass producers from participating in the program. b. Establishment payments: The program allows for an annual payment for the establishment and maintaining of biomass feedstock farms. These project areas are established specifically to grow biomass to produce energy. The biomass could then be harvested and supplied to an approved energy producing facility and a matching payment be received for the feedstock. There are currently no project areas that have been established in North Carolina. 3. Review of Wood Certification Systems: There are three main forest certification schemes that are utilized in the U.S. They are: American Tree Farm System (ATFS), the Forest Stewardship Council (FSC), and the Sustainable Forestry Initiative (SFI). The majority of the land that is certified in North Carolina is ATFS and SFI. The three standards have similarities in that they all provide for good sustainable forest management while protecting other values of the forest. FSC and SFI are typically used for larger landowners (greater than 10,000 acres) that need on-product labeling and can afford the cost associated with this type of certification. ATFS is designed to allow a smaller landowner to certify their wood sustainable while operating within a certification framework that provides for the majority of the standards that FSC and SFI require. The major attributes for these certification system are: a. Management plans – management plans provide a road map for the landowner insure they are periodically reviewing issues associated with their forest. We like to say the management plan is the road map accounts for the landowner‟s objectives and spells out ways to accomplish those objectives. b. Laws – the systems require that the landowner abide by all applicable laws. c. Reforestation and Afforestation – the systems require that the landowner insure that a harvest forest be regenerated either by natural or planting. d. Environmental – this requirement insures that the landowner use best management practices to provide for air, water and soil protection e. Wildlife and Biodiversity – this requirement provides some framework for the landowner to improve wildlife habitat and consider biodiversity in their forest management f. Aesthetics – the systems require that the landowner consider the visual aspects of management with an emphasis on harvested sites g. Historic, Archeological, Cultural, Geologic, Biologic, or Ecological Characteristics will be considered in the property and a plan will be in place to protect these features. h. Use of professionals, contractors, contracts, harvest monitoring – this standard encourages landowners to work with professionals for forest practices to insure that the activities are done correctly. The certification systems have other requirements but the above list captures the majority of the requirements. The certification systems are designed so that good forest management is applied and that sustainability of forest products is insured. These systems do have a cost to the landowner but they are a good tool to insure sustainability of the resource while considering other important aspects. The systems also give buyers of forest products knowledge about how the forest was managed, harvested, and reforested. That being said, in this region the markets have not been willing to pay significantly more for the wood produced from certified sustainable forest. NC Southeast Commission - Biomass Resource Study - September 2011 Page 43 of 43
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