Regional Analysis of Woody Biomass Resources. North Carolina s Southeast Region

Transcription

1 Regional Analysis of Woody Biomass Resources North Carolina s Southeast Region Prepared by: Gelbert, Fullbright & Randolph Forestry Consultants, PLLC 8394 Six Forks Road, Suite 23 Raleigh, North Carolina (919) 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.

2 Table of Contents A. Executive Summary Page 4 B. Objective and Methodology of the Assignment Page 5 1. Data Collection Page 5 2. Terminology Page 5 3. Assumptions Page 5 4. Regional Historic Wood Prices Page 6 Figure B.1 Southeast Region 15 Year Wood Cost Page 6 5. Current Market Price of Materials Page 6 6. Southeast Region Competition Page 6 Figure B.2 Southeast Region Paper Mill Overlap Analysis Map Page 8 Figure B.3 Southeast Region Competition Page 8 Figure B.4 Southeast Region Competition Map Page 9 7. Southeast Region Sawmills and Residuals Page 9 Figure B.5 Southeast Region Hardwood Sawmills Page 1 Figure B.6 Southeast Region Hardwood Sawmills Map Page 1 Figure B.7 Southeast Region Sawmill Residuals Page 1 8. Review of Logging Infrastructure Page Southeast Region Land Use Changes Page 11 Figure B.8 Southeast Region Timberland Ownership Change Page 12 Figure B.9 Percent Loss of Total Crop & Forest Land, Page 13 Figure B.1 Projected Decrease in Total Forest and Crop Land, Page 13 C. Southeast Region Study Area Page Study Area Page 14 Figure C.1 Southeast Region Counties Page 14 Figure C.2 Southeast Region Counties Map Page FIA Data & Methodology Page Summary of Southeast Region, North Carolina Page Potential Opportunities Page 16 Figure C.3 Southeast Region Pulpwood & Biomass Availability Page 17 Figure C.4 Southeast Region Pine Pulpwood Volume Page 17 Figure C.5 Southeast Region Hardwood Pulpwood Volume Page 18 Figure C.6 Southeast Region Biomass Volume Page 18 D. Southeast Region County Summaries Page Bladen County, North Carolina Page 19 Figure D.1 Bladen County Pulpwood & Biomass Volumes Page 19 Figure D.2 Bladen County Pine Volume Page 2 Figure D.3 Bladen County Hardwood Volume Page 2 Figure D.4 Bladen County Biomass Volume Page 2 Figure D.5 Bladen County Timberland Ownership Change Page 2 2. Brunswick County, North Carolina Page 21 Figure D.6 Brunswick County Pulpwood & Biomass Volumes Page 21 Figure D.7 Brunswick County Pine Volume Page 22 Figure D.8 Brunswick County Hardwood Volume Page 22 Figure D.9 Brunswick County Biomass Volume Page 22 Figure D.1 Brunswick County Timberland Ownership Change Page Columbus County, North Carolina Page 23 Figure D.11 Columbus County Pulpwood & Biomass Volumes Page 23 Figure D.12 Columbus County Pine Volume Page 24 Figure D.13 Columbus County Hardwood Volume Page 24 Figure D.14 Columbus County Biomass Volume Page 24 Figure D.15 Columbus County Timberland Ownership Change Page Cumberland County, North Carolina Page 25 Figure D.16 Cumberland County Pulpwood & Biomass Volumes Page 25 Figure D.17 Cumberland County Pine Volume Page 26 NC Southeast Commission - Biomass Resource Study - September 211 Page 2 of 43

3 Figure D.18 Cumberland County Hardwood Volume Page 26 Figure D.19 Cumberland County Biomass Volume Page 26 Figure D.2 Cumberland County Timberland Ownership Change Page Hoke County, North Carolina Page 27 Figure D.21 Hoke County Pulpwood & Biomass Volumes Page 27 Figure D.22 Hoke County Pine Volume Page 28 Figure D.23 Hoke County Hardwood Volume Page 28 Figure D.24 Hoke County Biomass Volume Page 28 Figure D.25 Hoke County Timberland Ownership Change Page New Hanover County, North Carolina Page 29 Figure D.26 New Hanover County Pulpwood & Biomass Volumes Page 29 Figure D.27 New Hanover County Pine Volume Page 3 Figure D.28 New Hanover County Hardwood Volume Page 3 Figure D.29 New Hanover County Biomass Volume Page 3 Figure D.3 New Hanover County Timberland Ownership Change Page 3 7. Pender County, North Carolina Page 31 Figure D.31 Pender County Pulpwood & Biomass Volumes Page 31 Figure D.32 Pender County Pine Volume Page 32 Figure D.33 Pender County Hardwood Volume Page 32 Figure D.34 Pender County Biomass Volume Page 32 Figure D.35 Pender County Timberland Ownership Change Page Richmond County, North Carolina Page 33 Figure D.36 Richmond County Pulpwood & Biomass Volumes Page 33 Figure D.37 Richmond County Pine Volume Page 34 Figure D.38 Richmond County Hardwood Volume Page 34 Figure D.39 Richmond County Biomass Volume Page 34 Figure D.4 Richmond County Timberland Ownership Change Page Robeson County, North Carolina Page 35 Figure D.41 Robeson County Pulpwood & Biomass Volumes Page 35 Figure D.42 Robeson County Pine Volume Page 36 Figure D.43 Robeson County Hardwood Volume Page 36 Figure D.44 Robeson County Biomass Volume Page 36 Figure D.45 Robeson County Timberland Ownership Change Page Sampson County, North Carolina Page 37 Figure D.46 Sampson County Pulpwood & Biomass Volumes Page 37 Figure D.47 Sampson County Pine Volume Page 38 Figure D.48 Sampson County Hardwood Volume Page 38 Figure D.49 Sampson County Biomass Volume Page 38 Figure D.5 Sampson County Timberland Ownership Change Page Scotland County, North Carolina Page 39 Figure D.51 Scotland County Pulpwood & Biomass Volumes Page 39 Figure D.52 Scotland County Pine Volume Page 4 Figure D.53 Scotland County Hardwood Volume Page 4 Figure D.54 Scotland County Biomass Volume Page 4 Figure D.55 Scotland County Timberland Ownership Change Page 4 E. Southeast Region Sustainability Page 41 Figure E.1 Regional Sustainability Model Page 41 F. Review of Programs Page Review of the Renewable Fuel Standard Cellulosic Biomass Program Page Review of the Biomass Crop Assistance Program Page Review of Wood Certification Systems Page 43 NC Southeast Commission - Biomass Resource Study - September 211 Page 3 of 43

4 A. Executive Summary The US Forest Service Forest Inventory Assessment (FIA) resource data indicates that within the Southeast Region of North Carolina there are 3. million acres of timberland supporting 29.5 million tons of pine pulpwood and 5.1 million tons of hardwood pulpwood potentially available for use by the biofuels industry (green tons). At the time of the assessment the annual growth was 2.1 million tons of pine and 1.2 million tons of hardwood. The removals were 96, tons of pine and 697, 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 FIA data, the region lost 2.1% (66, acres) of productive timberland compared to the 22 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 35, 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 $26.5 and $24. per ton, respectively. Hardwood sawmill residual chips are $28.5 and hardwood dust is $23 per ton. The annual production quantity of pine sawmill chips is approximately 456,8 tons and pine sawmill dust is 234,6 tons. The annual production quantity of hardwood sawmill and chip mill chips is approximately 38,75 tons and sawmill dust is 37,5 tons. The total hardwood usage is 1,48, tons. Estimated consumption that comes directly from within the region is 96,677 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 2,7, 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. and hardwood stumpage prices are $2. 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 211 Page 4 of 43

5 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. 5% 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 211 Page 5 of 43

6 $ / ton 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. $3. Southeast Region Wood Cost $25. $2. $15. $1. $5. Pine Stumpage Pine Delivered Hdwd Stumpage Hdwd Delivered $. 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. Hardwood roundwood $23. to $25. per ton b. Hardwood whole tree chips $3. to $35. per ton c. Hardwood dust $22. to $25. per ton d. Hardwood Sawmill Chips $27. to $3. per ton e. Pine roundwood $25. to $28. per ton f. Pine whole tree chips $35. to $38. per ton g. Biomass $21. to $25. 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 211 Page 6 of 43

7 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 4, 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 4, tons per month if the vessels and wood are available for shipment. Capital Power in Southport is a combined heat and power facility producing 13 megawatts of electricity and 18 million pounds per hour of steam for the adjacent Archer Daniels Midland plant. The facility has the capacity to use 35, 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 211. Yildiz Entregre and IP Riegelwood are the primary consumers of pine pulpwood in the area. The biomass power facility consumes approximately 35, 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 5 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 5 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 96,677 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 211 Page 7 of 43

8 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 211 Page 8 of 43

9 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 765,55 tons of clean chips and 272,1 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 1 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 25, tons annually. The chips are supplied to an area paper mill. NC Southeast Commission - Biomass Resource Study - September 211 Page 9 of 43

10 Southeast Region Hardwood Sawmills Sawmill County Turn Bull Lumber Bladen Marsh Road Lumber Bladen Corbett Package Co New Hanover Edwards Wood Products 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 456,8 38,75 Dust 234,6 37,5 Shavings 97,8 Figure B.7 Southeast Region Sawmill Residuals NC Southeast Commission - Biomass Resource Study - September 211 Page 1 of 43

11 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 2 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 27 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 27 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, the productive forest land in the region lost 2.1% (66, acres). The statistical error rate for the forest land data is 3.3%. 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 27 to 227 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 211 Page 11 of 43

12 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 Ownership by Type Total Wildlife/Fed Dept of Defense State/County Private Other Land Use - Major 5,77,349 6,49 96, ,48 2,741,369 2,11,229 Timberland 3,41,925 6,49 96, ,999 2,723,222 - Other Forestland 24, ,49 18,147 - Nonforest 1,69, ,69,68 Census Water 32, ,55 22 Ownership by Type Total Wildlife/Fed Fed/Defense State/County Private Other Land Use - Major 5,98,66-16, ,959 2,871,35 1,984,622 Timberland 3,17,696-16, ,959 2,864,748 - Other Forestland 6, ,288 - Nonforest 1,676, ,676,946 Census Water 37, ,677 Change (22-) Acres Timberland (65,771) Other Forestland 17,98 Nonforest 13,734 Census Water 12,873 Figure B.8 Southeast Region Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 211 Page 12 of 43

13 Figure B.9 Percent Loss of Total Crop and Forest Land, *data from the NRCS and ENCRPC 27 report Figure B.1 Projected Decrease (%) in Total Forest and Cropland, *data from the NRCS and ENCRPC 27 report NC Southeast Commission - Biomass Resource Study - September 211 Page 13 of 43

14 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 211 Page 14 of 43

15 surveys. The surveys are conducted annually with up to 2% 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 6% 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 4 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. is the amount of wood that has grown from the Total Available stock. e. are an estimate of the material that has been removed due to logging activity. f. The percent difference in to 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 22 FIA data and the 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 2 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 2 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 2 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 211 Page 15 of 43

16 Both the pine and hardwood stocks appear to be sustainable based on the growth to removals aspect. There is 1.6 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 6% productive forestland and has lost 2.1% since the 22. The 6% 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.%. 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 1.34 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 4 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 211 Page 16 of 43

17 Southeast Region Pulpwood and Biomass Volumes Pine Pulpwood Total Available 29,548,878 2,7,586 96, ,885,62 1,69, ,139,381 1,384, ,216,87 899,412 Average 2,77,919 1,78,335 % Difference*** 73.3% Hardwood Pulpwood Total Available 5,149,698 1,239,86 697, ,93, , ,226, , ,371, ,537 Average 1,232,851 74,192 % Difference*** 56.% Biomass* Total Available 32,154, ,621, ,147, ,74,154 * only approx. 5% can be recovered ** All volumes in green short tons *** % Difference in vs. Figure C.3 Southeast Region Pulpwood & Biomass Availability Southeast Region Pine Pulpwood Volume 2,5, 2,, 1,5, 1,, 5, Figure C.4 Southeast Region Pine Pulpwood Volume NC Southeast Commission - Biomass Resource Study - September 211 Page 17 of 43

18 199 Southeast Region Hardwood Pulpwood Volume ,6, 1,4, 1,2, 1,, 8, 6, 4, 2, Figure C.5 Southeast Region Hardwood Pulpwood Volume Southeast Region Biomass Volume ,, 33,5, 33,, 32,5, 32,, 31,5, 31,, 3,5, 3,, 29,5, 29,, Biomass Figure C.6 Southeast Region Biomass Volume NC Southeast Commission - Biomass Resource Study - September 211 Page 18 of 43

19 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 2,671, , , , , , , ,28 171,34 Average 32,57 148,32 % Difference*** 92.8% Hardwood Pulpwood Total Available 2,795, , , ,632 63, ,37 153, ,854 89,55 Average 177, ,916 % Difference*** -24.8% Biomass* Total Available Tons/acre 3,729, ,725, ,95, ,938,976 * only approx. 5% can be recovered ** All volumes in green short tons *** % Difference in vs. Figure D.1 Bladen County Pulpwood & Biomass Volumes NC Southeast Commission - Biomass Resource Study - September 211 Page 19 of 43

20 Bladen County, NC Pine Pulpwood Volume Bladen County, NC Hardwood Pulpwood Volume 4, 25, 35, 3, 2, 25, 2, 15, 15, 1, 1, 5, 5, Figure D.2 Bladen County Pine Volume Figure D.3 Bladen County Hardwood Volume Bladen County, NC Biomass Volume 4,2, 4,1, 4,, 3,9, 3,8, Biomass 3,7, 3,6, ,5, Figure D.4 Bladen County Biomass Volume Bladen County, NC Timberland Ownership Change Ownership by Type Total State Private Other Land Use - Major 552,935 48, , ,966 Timberland 396,969 48, ,827 - Nonforest 146, ,334 Census Water 9, , Ownership by Type Total State Private Other Land Use - Major 572,643 37,25 374,468 16,971 Timberland 411,673 37,25 374,468 - Nonforest 141, ,839 Census Water 19, ,131 Change (22-) Acres Timberland (14,74) Nonforest 4,495 Census Water (9,499) Figure D.5 Bladen County Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 211 Page 2 of 43

21 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 199 s and early 2 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 Total Available 2,48,59 323,81 229, , , , , , ,336 Average 327, ,995 % Difference*** 34.% Hardwood Pulpwood Total Available 3,7,4 174,7 26, ,967 29, ,44 16, ,84 13,436 Average 148,955 73,25 % Difference*** 147.1% Biomass* Total Available Tons/acre 3,888, ,736, ,759, ,66,522 * only approx. 5% can be recovered ** All volumes in green short tons *** % Difference in vs. Figure D.6 Brunswick County Pulpwood & Biomass Volumes NC Southeast Commission - Biomass Resource Study - September 211 Page 21 of 43

22 Brunswick County, NC Pine Pulpwood Volume 27 5, 45, 4, 35, 3, 25, 2, 15, 1, 5, Figure D.7 Brunswick County Pine Volume 199 Brunswick County, NC Hardwood Pulpwood Volume , 18, 16, 14, 12, 1, 8, 6, 4, 2, Figure D.8 Brunswick County Hardwood Volume Brunswick County, NC Biomass Volume 27 3,95, 3,9, 3,85, 3,8, 3,75, 3,7, 3,65, 3,6, 3,55, 3,5, Biomass Figure D.9 Brunswick County Biomass Volume Brunswick County, NC Timberland Ownership Change Ownership by Type Total Dept of Defense State Private Other Land Use - Major 697,297 6,49 12,98 41, ,296 Timberland 47,93 6,49 12,98 389,756 - Other Forestland 12, ,98 - Nonforest 133, ,617 Census Water 143, , Ownership by Type Total Other Federal State Private Other Land Use - Major 688,615 6, ,26 258,32 Timberland 424,26 417,739 - Other Forestland 6,288 6,288 - Nonforest 118, ,366 Census Water 139, ,936 Change (22-) Acres Timberland (16,123) Other Forestland 5,81 Nonforest 15,251 Census Water 3,743 Figure D.1 Brunswick County Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 211 Page 22 of 43

23 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 1.8% drop in Timberland over the past 8 year. Columbus County, NC Pulpwood and Biomass Volumes Pine Pulpwood Total Available 2,29,965 21,94 149, ,39 14, ,114 35, , ,366 Average 257,85 185,715 % Difference*** 34.% Hardwood Pulpwood Total Available 4,972, , , ,94 128, , , ,794 86,288 Average 197,547 11,746 % Difference*** 55.2% Biomass* Total Available Tons/acre 4,858, ,713, ,296, ,238,962 * only approx. 5% can be recovered ** All volumes in green short tons *** % Difference in vs. Figure D.11 Columbus County Pulpwood & Biomass Volumes NC Southeast Commission - Biomass Resource Study - September 211 Page 23 of 43

24 Columbus County, NC Pine Pulpwood Volume 27 35, 3, 25, 2, 15, 1, 5, Figure D.12 Columbus County Pine Volume 199 Columbus County, NC Hardwood Pulpwood Volume , 2, 15, 1, 5, Figure D.13 Columbus County Hardwood Volume Columbus County, NC Biomass Volume 27 7,, 6,, 5,, 4,, 3,, 2,, 1,, Biomass Figure D.14 Columbus County Biomass Volume Columbus County, NC Timberland Ownership Change Ownership by Type Total State Private Other Land Use - Major 69,62 17, ,23 229,533 Timberland 379,528 17, ,23 - Nonforest 216, ,691 Census Water 12, , Ownership by Type Total State Private Other Land Use - Major 618,664 6, , ,235 Timberland 421,429 6, ,141 - Nonforest 183, ,87 Census Water 13, ,365 Change (22-) Acres Timberland (41,91) Nonforest 32,821 Census Water (523) Figure D.15 Columbus County Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 211 Page 24 of 43

25 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 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 Total Available 863,726 78,4 27, ,793 46, ,577 4, ,576 51,92 Average 73,996 32,524 % Difference*** 94.5% Hardwood Pulpwood Total Available 2,316,259 6,899 59, , , ,965 55, ,668 55,897 Average 89,976 71,18 % Difference*** 2.4% Biomass* Total Available Tons/acre 2,64, ,523, ,96, ,576,456 * only approx. 5% can be recovered ** All volumes in green short tons *** % Difference in vs. Figure D.16 Cumberland County Pulpwood & Biomass Volumes NC Southeast Commission - Biomass Resource Study - September 211 Page 25 of 43

26 Cumberland County, NC Pine Pulpwood Volume 27 9, 8, 7, 6, 5, 4, 3, 2, 1, Figure D.17 Cumberland County Pine Volume 199 Cumberland County, NC Hardwood Pulpwood Volume , 16, 14, 12, 1, 8, 6, 4, 2, Figure D.18 Cumberland County Hardwood Volume Cumberland County, NC Biomass Volume 3,, 2,9, 2,8, 2,7, 2,6, Biomass 2,5, 2,4, 2,3, Figure D.19 Cumberland County Biomass Volume Cumberland County, NC Timberland Ownership Change Ownership by Type Total Fed/Defense State/County Private Other Land Use - Major 415,499 31,971 19, , ,596 Timberland 222,94 31,971 19, ,336 - Nonforest 192, , Ownership by Type Total Fed/Defense State/County Private Other Land Use - Major 48,212 21,961 13,496 17,161 22,594 Timberland 25,618 21,961 13,496 17,161 - Nonforest 22, ,594 Change (22-) Acres Timberland 17,286 Nonforest (9,998) Figure D.2 Cumberland County Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 211 Page 26 of 43

27 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 Total Available 677,698 48,11 18, ,612 21, ,551 2, ,536 16,191 Average 54,7 14,574 % Difference*** 88.1% Hardwood Pulpwood Total Available 1,53,712 58,169 9, ,425 7, ,688 9, ,711 17,12 Average 5,498 11,164 % Difference*** 142.1% Biomass* Total Available Tons/acre 2,149, ,42, ,864, ,276,74 * only approx. 5% can be recovered ** All volumes in green short tons *** % Difference in vs. Figure D.21 Hoke County Pulpwood & Biomass Volumes NC Southeast Commission - Biomass Resource Study - September 211 Page 27 of 43

28 Hoke County, NC Pine Pulpwood Volume 27 9, 8, 7, 6, 5, 4, 3, 2, 1, Figure D.22 Hoke County Pine Volume 199 Hoke County, NC Hardwood Pulpwood Volume , 6, 5, 4, 3, 2, 1, Figure D.23 Hoke County Hardwood Volume Hoke County, NC Biomass Volume 2,5, 2,, 1,5, 1,, Biomass 5, Figure D.24 Hoke County Biomass Volume Hoke County, NC Timberland Ownership Change Ownership by Type Total Fed/Defense State Private Other Land Use - Major 237,87 58,635 5,799 15,618 67,819 Timberland 17,51 58,635 5,799 15,618 - Nonforest 67, , Ownership by Type Total Fed/Defense State Private Other Land Use - Major 243,127 78,741-99,321 65,66 Timberland 178,61 78,741-99,321 - Nonforest 65, ,66 Change (22-) Acres Timberland (8,1) Nonforest 2,753 Figure D.25 Hoke County Timberland Ownership Change NC Southeast Commission - Biomass Resource Study - September 211 Page 28 of 43