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Biochar-based Forest Restoration at a Far North Ontario Mine:
An Economic Analysis
by
Annonciade Murat
Recipient of the 2017-2018 Fred G. Jackson Prize for the best “Research Paper in Forest
Conservation” of the year at the Master of Forest Conservation (MFC)
A thesis submitted in conformity with the requirements
for the degree of the Master of Forest Conservation (MFC)
Faculty of Forestry,
University of Toronto
Supervisor: Dr. Sean Thomas
© Copyright by Annonciade Murat, February 2018
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
A. Murat
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ABSTRACT
The mining industry generates millions of tons of tailings in Canada that are a major concern for
the environment, commonly inhibiting the regrowth of vegetation and therefore presenting a long-
term risk for metals leaching, as well as reducing other environmental services of natural
ecosystems. Charcoal used as a soil amendment ("biochar”) has recently been proposed as a
mitigation tool for the restoration of these sites as it promotes plants growth and directly sequesters
carbon in the soil for hundreds to thousands of years. One critical step in examining operational
use of biochar are analyses that examine the economic and environmental costs and the benefits
of restoring mine tailings with biochar.
In this study, we investigate alternative economic and environmental solutions to restore the native
forest with biochar at the Goldcorp Musselwhite mine, located in the Ontario Far North Region,
Canada. Based on a discounted cash flow analysis, we reviewed the economic impacts of specific
biochar amendment rates coupled with different alternatives for biochar access. These alternatives
include the importation of high-carbon wood ash from an external supplier, the local production
of biochar, either through the use of a mobile pyrolyzer or a wood gasifier, using various
feedstocks, including local forest residues, wood pallets or imported wood-chips/sawdust. The
environmental benefits of each alternative were also measured in terms of C sequestration, with
an estimation of the potential carbon credit income that could be generated under proposed Ontario
cap-and-trade guidelines.
Our results indicate that the import of high-carbon wood ash from the Thunder Bay area would be
the least costly and easiest solution to implement for the mine. The possible utilization of high-
carbon wood ash in the restoration of mine tailings has multiple environmental and economic
benefits, as this material is usually sent to landfill at an economic and environmental cost for both
the companies and the public. We also conclude that technical, logistical, and cost barriers
currently limit the implementation of local biochar production in Ontario, and these limitations are
especially pronounced in remote sites such as the Ontario Far North region.
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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3
ACKNOWLEDGMENTS
I would like to thank the following persons for their time, help and patience throughout the bulk
of the research:
- My supervisor Dr. Sean Thomas
- The Faculty professors: Dr. Shashi Kant for his contribution to the economic analysis,
and Dr. Sally Krigstin for contributing to the chemical analysis
- The Phd Candidates Jillian Bieser, Nigel Gale and Jasmine Williams
- The environmental team of Musselwhite Mine
- My brother Guillaume Dechambre (BMO) for his help in designing and automating the Excel
Cash Flow analysis
- Brad Everatt (OMNRF, Sioux Lookout District), for having spent valuable time to explain to me
Ontario regulations; also Jay Flinders (Wood measurement section, OMNR) and Doug Reid
(Centre for Northern Forest Ecosystem Research, OMNRF) for their contributions
- Malcolm Cecil-Cockwell (Haliburton Forest) for the indispensable economic and technical
forestry data
- Marcin Lewandowski (Ecostrat) for his consulting expertise and essential economic data
- Olivier Lepez (Biogreen) for his professionalism and detailed quotation on the Pyrogreen, which
is one of the pyrolysis unit of Biogreen’s
- Jonah Levine (Biochar Solutions Inc) for detailed pricing and technical information on the BSI
Double pyrolysis unit, and for other technical data
- Gerry McKenna (Ontario Power Generation) for the technical details on their wood ash and his
colleague Darcey Bailey for pricing
- Brian Coghlan (Wood Ash Industries) for his help in calculating wood ash transportation cost
and for the in-depth technical knowledge about his wood ash
- Dale Thomas (Borealis Wood Power) for his comprehensive explanations on their innovative
Combined Heat and Power generator
- Grant Rawcliffe (Heizomat) for the detailed information on woodchippers
- Daves Miles (IMT Inc) for the pricing of the cross-belt separator (on a Sunday) and cooperation
- Dario Presezzi (Bioforcetech corp) and Nando Breiter (Carbon Zero)
- Stephanie Poirier (Canadian Wood Pallet & Container Association)
- Martin Kaiser and Ashleigh Marchl (Resolute Forest Products)
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Contents
INTRODUCTION ....................................................................................................................................... 6
Biochar, wood ash and charcoal: definitions ........................................................................................ 6
Biochar dosage ........................................................................................................................................ 7
Charcoal as a tool against climate change ............................................................................................ 7
Biochar production in Canada .............................................................................................................. 9
Economic analyses of biochar for mine tailing restoration ................................................................. 9
Current experiment of the University of Toronto at the Musselwhite mine, Ontario .................... 10
Specific project objectives and questions ............................................................................................ 11
METHODOLOGY ................................................................................................................................... 11
Clarification about units used in this report ...................................................................................... 11
System boundaries ................................................................................................................................ 11
Stakeholders ........................................................................................................................................ 11
Details on the experimentation ........................................................................................................... 13
1. biochar/wood ash rate of amendment ........................................................................................... 13
2. biochar/wood ash application ........................................................................................................ 13
Economic analysis ............................................................................................................................... 13
Alternatives considered ........................................................................................................................ 14
Option 1: Industrially produced high carbon wood ash is supplied by a third party, transported up to
the mine and applied on the mine tailings .......................................................................................... 15
Option 2: Biochar is produced on-site with a local pyrolyzis unit or a wood gasifier. ........................ 15
Economic costs ...................................................................................................................................... 18
Equipment prices ................................................................................................................................. 18
Energy consumption ............................................................................................................................ 19
Feedstock prices .................................................................................................................................. 22
Operating costs ................................................................................................................................... 23
Carbon assessment ................................................................................................................................ 28
Carbon price ........................................................................................................................................ 28
Carbon sequestration .......................................................................................................................... 28
Carbon emissions ................................................................................................................................ 29
Conversion between Carbon and CO2 ................................................................................................. 31
Estimating distances ............................................................................................................................. 31
Limitations of the study ........................................................................................................................ 31
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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RESULTS .................................................................................................................................................. 32
Time to completion of the project ........................................................................................................ 32
Discount rate.......................................................................................................................................... 34
Total costs .............................................................................................................................................. 34
The influence of transportation on final costs .................................................................................... 36
Relation between distance, conversion yield, moisture content and transportation cost .................. 36
The influence of time over costs .......................................................................................................... 38
Relation between labor cost and duration of the project ................................................................... 38
The impact of harvest cost .................................................................................................................. 39
Energy cost .......................................................................................................................................... 39
Cost of goods ....................................................................................................................................... 39
Net capital cost ................................................................................................................................... 40
Cost per ton of biochar ........................................................................................................................ 40
Environmental benefit of the projects ................................................................................................. 41
Potential carbon income ....................................................................................................................... 42
Other considerations and overview ..................................................................................................... 44
DISCUSSION ............................................................................................................................................ 45
CONCLUSION ......................................................................................................................................... 48
LIST OF PERSONAL COMMUNICATIONS ...................................................................................... 49
LITERATURE CITED ............................................................................................................................ 50
APPENDICES ........................................................................................................................................... 62
Appendix A: Literature review for biochar dosage ................................................................................. 62
Appendix B: A reel feed/mixer wagons allowing to mix and spread sand and biochar at the same time
................................................................................................................................................................ 64
Appendix C: Regulations ........................................................................................................................ 65
Appendix D: Pictures of the burnt forest near Musselwhite ................................................................... 67
Appendix E: Equipment prices ............................................................................................................... 68
Appendix F: calculation of crown forest charges ................................................................................... 69
Appendix G: an example of a 40ST container sized pyrolyzis unit ........................................................ 70
Appendix H: Decision Matrix ................................................................................................................. 71
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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INTRODUCTION
Mine tailings represent a difficult environment for plant establishment. Although this varies
greatly with tailings geochemistry, in many tailings the toxicity of metals, such as copper (Cu),
lead (Pb), nickel (Ni) and zinc (Zn), are a serious limiting factor to the development of even the
most metal-resistant plants (Wong, 2003). This often results in very limited vegetation recruitment
on tailings sites. In addition to metals toxicity, mine tailings sites are often characterized by
extreme pH values, low fertility, low water-holding capacity, and poor soil structure that further
limits plant establishment (Puga et al., 2016). However, the restoration of a vegetation cover is a
necessary step to the remediation of these sites as it stabilizes sites, limits contaminants’ leaching
to groundwater and transport of toxic particles by wind associated with soil erosion (Beesley et
al., 2013, Puga et al., 2016). Since 1990 mines in Ontario have been required by legislation to
“restore the site to its former use or condition” after the end of their operations (Ontario Mining
Act, 1990). Similar laws pertain elsewhere.
Biochar, wood ash and charcoal: definitions
It has recently been suggested that biochar could be an appropriate remediation tool for mine
tailings (Fellet et al, 2011, Beesley et al, 2011, Zhang et al, 2013; Fellet et al, 2014, Paz-Ferreiro
et al, 2014; Hossain et al, 2015). Referring to the use of charcoal as a soil amendment (Thomas
and Gale, 2015), biochar is a solid porous material produced by pyrolysis of organic residues
(Puga, 2016). Although a variety of pyrolysis processes have been developed, slow pyrolysis has
most commonly been used for the production of biochar, resulting in typical yields of 35-50 wt%
at temperatures ranging from 300-500 °C (Manya, 2012; Brownsort, 2009; Homagain et al, 2014).
Another product containing appreciable amounts of charcoal is wood ash, which is produced
through combustion in the presence of oxygen (Reed et al, 2017; Lucchini et al, 2014). Wood ash
has similar properties to wildfire residues: it increases soil pH and nutrient availability, but can
also increase concentrations of metals (Demeyer et al, 2001; Hannam et al, 2016). In general, field
and greenhouse experiments have confirmed that wood ash promotes plant growth on acid soils
(Demeyer et al, 2001). Wood industries and power generation plants produce large quantities of
wood ash that are used as a liming agent in some part of Canada (Quebec, British Columbia,
Alberta) or as both a fertilizer and a liming tool (New Brunswick, Nova Scotia) for agriculture
and/or forestry (Hannam et al, 2016). Nevertheless, in the rest of Canada, Ontario included, this
wood ash is often sent to landfill with a high economic and environmental cost for both the
companies and the public (Hannam et al, 2016). Wood ash produced industrially often contains a
mix of fine fly ash and of bottom ash (Omil et al 2013). In general, fine fly ashes have a lower
carbon content and higher concentration of heavy metals than bottom ash, therefore bottom ash,
with a higher charcoal content, is generally more desirable as a soil amendment (Omil et al, 2013).
Some bottom ashes are consider “high-carbon ash”, and overlap in properties with material
classified as biochar.
Charcoal, whether found in biochar or in high-carbon wood ash, generally has high adsorption and
holding capacity for heavy metals (Baker et al, 2011; Beesley 2013; Puga et al, 2016; Thomas and
Gale; 2015), and thus can reduce the metals bioavailability on mine tailings. For example, a study
by Baker et al. (2011) revealed that charcoal in contaminated mine area had 40 times the level of
metals found in the surrounding soils, suggesting that it successfully adsorbed the contaminants
from the soils. Such contaminants can be locked in the charcoal for very long periods of time, thus
preventing them from leaching into the soils (Thomas and Gale, 2015). Moreover charcoal has a
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
A. Murat
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high capacity in retaining plants nutrients (both cation and anions), as well as water in the soil
(Thomas and Gale, 2015). For these reasons, it has positive effects on plant growth – for instance
an average increase of 41% in tree growth was recorded after the addition of biochar (Thomas and
Gale, 2015).
Biochar dosage
The dosage of biochar necessary to obtain desired benefits for restoration is a critical input to any
analysis. Direct experiments in the context of mine tailings, industrial, poor or contaminated soils
are very limited. In general there is a consensus that an increase in biochar dosage will promotes
higher plant growth up to a saturation point. For instance, in a dose-response trial of two temperate
herbaceous species, plant biomass increased by 28% at 6 tons per hectare amendment rate, by 78%
at 13 tons per hectare and by 115% at 19 t/ha compared to non-treated plants; however, growth
response declined beyond 30-40t/ha (Gale and Thomas, 2018). A saturation point of 25 tons per
hectare was reported with mine tailings (Roberts et al, 2015), and between 26t/ha (Rajkovich et
al., 2012) to 180 t/ha (Rondon et al, 2007) in agricultural soils. When reviewing the literature
(Appendix A) for recommendations on amendment rates for poor forest or agricultural soils, mine
tailings, and industrial areas, contradictory recommendations were found. Some researchers (6
articles) have used application rates below 10t/ha (all except one concerned non-contaminated
soils). Others, the majority of which concerned contaminated soils, soil with low PH,
unconsolidated geological material, or mine tailings, recommend dosages of 10-15 t/ha (7 articles).
Additional recommendations (5 articles, mainly on agricultural soil) promote application ranges
of 20-26 t/ha, and the remaining (11 articles) propose rates between 40 and 120 t/ha (6 of which
relate to mine tailings or industrial soils). Overall recommendations for mine tailings and
contaminated soils seem to favor higher rates of application (above 40 t/ha), due to high content
in heavy metals and the generally low pH of soil. A few studies report positive vegetation response
on mine tailings with lower dosages, for instance with 10 t/ha (Phillips et al, 2016; Roberts et al,
2015). Kuttner and Thomas (2017) reported that biochar additions of 5, 10 and 20 t/ha on a poor
sand substrate successfully enhanced biomass growth by 14-250%. However, so far only one study
has considered a very low dosages: i.e., 1.5 t/ha on a heavy metal (cadmium) contaminated soil
(Zhang et al, 2016), with results showing positive outcomes on rice yield and reduced
accumulation of Cd into the plant.
Charcoal as a tool against climate change
Biochar/charcoal has also additional benefits as a mean of carbon storage, and has thus been
promoted as a management tool to fight climate change. Carbon dioxide is initially stored in the
plants and trees during the process of photosynthesis. When burnt (e.g., in wildfire or traditional
swidden agriculture) ~97% of the carbon stored is immediately released (Sombroek, 2003).
Similarly when dead wood is left for decay, approximately 50% of the carbon that was stored is
released into the atmosphere over a period of 5 to 10 years (Lehman et al, 2006), though this varies
with species and environmental conditions. However, when the wood is converted to biochar, most
of this carbon is stored almost permanently within the biomass (Lehman et al, 2006). Due to its
recalcitrant nature, charcoal decomposes very slowly (Thomas and Gale, 2015). The stable content
of carbon in the biochar is estimated to be at minimum 50% (Lehmann et al, 2006) and up to 68%
(Hammond et al, 2011) or even 80% (Galinato et al, 2011; Roberts et al, 2010), the rest being
released into the atmosphere during the first few years as CO2 (Roberts et al, 2010). The stable
content of charcoal can remain for a very long time, at least for more than 100 years (Hammond
et al., 2011; Lehman et al, 2006; Roberts et al, 2010; Thomas and Gale, 2015), or even up to
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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10,000-100,000 years (Spokas, 2010). In the Amazon basin of Brazil, “terra preta” soils appears
to have been amended with charcoal by Pre-Columbians from 500 BC to 1640 AD resulting in
very dark fertile soils that have persisted to the present day (Heckenberger et al. 2003; Sombroeket
al, 2003).
The initial carbon content of biochar depends mainly on the feedstock (Galinato et al, 2011;
Roberts et al, 2010) and is usually higher in wood due to the high quantity of lignin (Galinato et
al, 2011). The carbon content is also influenced by the mode of pyrolyzis (Galinato et al, 2011).
As temperature increases, the yield of biochar decreases, but the content of carbon increases
(Brownsort, 2009; Al-Wabel et al, 2013; Shaaban et al., 2014; Hu, 2014). For instance, Ogawa et
al (2006) reported that a temperature increase from 300 to 800°C, caused a biochar yield decrease
from 66.5% to 25.6%, but fixed carbon content increased from 55.8 to 93.5%. The amount of
initial carbon produced by slow pyrolysis typically ranges between 50 and 85% (Hammond et al,
2011; Galinato et al, 2011), but can be much higher (Ogawa et al, 2006). In Haliburton Forest,
which currently is the only known commercial producer of biochar in Ontario, carbon contents in
wood biochar have range between 77% and 87% (Gale et al, 2016; Gale et al, 2017; Kuttner and
Thomas, 2017; Mitchell et al, 2016). In wood ash, where carbon is generally oxidized and gasified
during the combustion process, the amount of carbon is usually much lower or even absent
(Demeyer et al, 2001). Wood ashes from boilers and cogeneration plants have carbon content
typically around 10-20%. However wood ash with higher carbon quantity, up to 30% or even 60%
(James et al, 2012) are not uncommon. The presence of “high carbon wood ash” can be caused by
a short residence time or poor aeration within the boiler system and/or by ash particles covering
the char, resulting in incomplete combustion (Demeyer et al, 2001; James et al, 2012).
It has been estimated that the utilization of sustainable biochar in agriculture could offset up to
12% of global GHG emissions annually and sequester up to 130 gigatons of carbon over the course
of 100 years (Woolf et al, 2010). As pointed out earlier, biochar or charcoal can facilitate
regeneration of the forest on mine tailings, further enhancing the benefits of carbon storage through
increasing live biomass. Such approaches could even generate substantial income in carbon credits
(IBI, 2017). In Canada recent proposals (Ontario Government, 2017a) will allow for the issuance
of offset credits to initiatives that avoid or reduce at least one ton of carbon dioxide. Some example
of initiatives includes “a tree planting project – trees absorb carbon and store the carbon, which
reduces the amount of carbon dioxide present in the atmosphere” (Ontario, 2017). The Ontario
Government (2017a) does not mention specifically biochar/charcoal-based projects, however
projects on “manure management project that captures and destroy methane gas” are being
considered. The general intent of the new regulation is to give “incentives […] to implement
project fighting climate change” (Ontario Government, 2017a). Since biochar is a soil amendment,
like manure, and stores carbon within the soil, while allowing the forest to regenerate (storing
additional carbon), it is likely that forest restoration at a mine tailing with biochar would qualify
for the issuance of a credit offset. In order to be eligible, the project should allow the carbon to be
sequestered for at least 100 years (Ontario Government, 2016). So far developing protocols on
reforestation have been focused on the managed crown forest with the Area of the Undertaking
(AOU), but the initiation of projects on managed Crown forests may allow future policies to be
developed for non-crown forests or even the Far North. Furthermore, since crown forest are already
required to meet some standards of excellence under the Crown Sustainable Forest Act (1994),
new forest protocols will require projects to go beyond “business-as-usual” or to bring in
“additional” benefits in order to be eligible for carbon offsets (Cheminfo, 2017). The future value
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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of carbon price in Ontario is for the moment unknown, and will likely vary depending on different
factors such as market, climate change, and technological innovation. According to Environment
and Climate Change Canada (2017a and b), the minimum carbon price should be $10 per ton, with
an increase of $10 per year to reach at least $50 per ton in 2050. When accounting for carbon
credit, the Intergovernmental Panel on Climate Change (IPCC) recommends considering a low
and a high price scenarios with values of $20 and $80 per ton of CO2 (IPCC, 2007; Roberts et al,
2010).
Biochar production in Canada
With 347 million hectares of forest, amongst which 270 million ha are boreal forests, Canada has
an estimated stock of about 47 billion m3 of wood (Natural Resources Canada, 2017c). The boreal
forests are often subject to major natural disturbance such as wildfire. It is estimated that between
1970 and 2010, the mean burned area in the boreal forest reached 2,900 km2 per year (Barrette et
al, 2015). Salvaged wood of dead trees following natural disturbance has been acknowledged as
an important opportunity for the production of bioenergy (IPPC, 2011), especially in area where
the wood is devoid of timber value (Barrette et al, 2015). Therefore large areas of the boreal forests
affected by wildfire could be a promising source of feedstock for biochar. It is not well known
how wood decay of wildfire-killed trees could affect the quality of biochar, but wood
decomposition in the boreal forest is generally slow (Barrette et al, 2015). One of the reasons for
low decomposition rate is the low temperature occurring for much of the year, preventing the
development of fungi and subsequent decay. In addition, standing dead stems can dry quickly (as
low as 30% moisture content), which further limits decomposition of the wood (Barrette et al,
2015).
In spite of important resources for bioenergy feedstock in Canada, little of this material is utilized
due to low prices of alternative fuels, as well as the high costs of harvesting and transportation
(Stokes, 1992). As a result, the collection of forest residues for bioenergy in Canada is usually not
a stand-alone enterprise, but is integrated in the supply chain of more valuable wood products, thus
reducing the overall cost of bioenergy production (Stokes, 1992). In Sweden, thinning operations
often occur prior to the final commercial harvesting to improve the general health of the forest
(Stokes, 1992). The majority of these first-thinning trees are between 6-10 cm DBH and they are
collected mainly for the production of bioenergy. Feller-bunchers or forwarders with grapple saws
are used to remove the small stems, allowing the recovery of more fuel wood at lower cost. Similar
operations are found in the UK and in Italy. Research is still ongoing for small-scale mechanized
harvesting system (Stokes, 1992). In the US, fuel harvesting is usually not profitable. However
California, thanks to government incentives, has a very active biofuel market derived from the
thinning of small trees. Wood chips are usually processed at roadside with a truck-mounted wood
chipper (Stokes, 1992).
Economic analyses of biochar for mine tailing restoration
Biochar is considered a low-cost material with the potential to result in net negative effects
on carbon balance, especially when derived from unclaimed local feedstock, such as forest
residues, or from wood/organic waste, and where transportation emissions are low (Jiang et al.,
2016; Puga et al., 2016; Thomas and Gale, 2015). In addition, the use of charcoal as a mine tailing
remediation tool could generate local employment and business opportunities (Keske et al, 2012).
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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Nevertheless there is currently a lack of economic studies on biochar-based mine tailing
restoration. The most closely related published studies rather have concentrated on agricultural
applications (McCarl et al., 2009; Galinato et al, 2011; Shackley et al., 2011; Dickinson et al, 2015)
and biochar production system (Field et al, 2013; Miller-Robbie et al, 2015).
Petelina et al (2014b) completed a life-cycle cost analysis of a potential biochar-based restoration
at the 53-ha Gunnar mine tailings in Saskatchewan. They concluded that a 3-year revegetation
project with commercially produced biochar at a rate of 100 t/ha would be cost-deterrent (Can
$20.4 Million), but that locally produced biochar would be much more cost-effective (Can $4.9
Million) and would have no net carbon impact on global warming (0t CO2eq/t biochar vs 3t
CO2eq/t biochar for commercially produced biochar). If the Gunnar mine study had considered a
lower rate of application (for instance 5 tons per hectare), the economic outcome would have
certainly been very different. As noted above, there is not a scientific concensus on optimal
application rates. Although a number of publications seem to favor high charcoal amendment
dosages on contaminated sites, lower dosages could be more economically feasible for the
restoration of mine tailings located in remote areas. In such areas, the transport of feedstock and
equipment can be challenging due to the distance from the suppliers. The use of energy (diesel,
propane, electricity) is also an important consideration in terms of cost and environmental impact.
Current experiment of the University of Toronto at the Musselwhite mine, Ontario
Located in the Ontario Far North region, the Musselwhite Gold mine (Goldcorp Canada
Ltd.), is currently looking for viable solutions to restore its mine tailings. The mine is located
approximately 76 km southeast of Round Lake First Nation, 130 km north of Pickle Lake and 728
km northwest from Thunder Bay. The tailings impoundment has an estimated area of 100 ha
(Email exchanges with Musselwhite mine’s Environmental Department, August 2017) that will
require restoration, but this area could increase depending on the future needs of the mine to
expand its operations. The tailings have appreciable concentrations of toxic metals and metalloids,
such as copper, iron, zinc, chromium, lead, thallium, selenium and arsenic, resulting from the gold
extraction processes. Many of these metals could potentially leach into the environment.. An
environmental study conducted by the mine in 2014 revealed that copper and arsenic surpass safe
concentration levels for humans and the environment as set in the Canadian Council of Ministers
of the Environment standards (Goldcorp, 2015). In addition of being contaminated with heavy
metals, the soils of these area are also slightly acidic (pH 6.2), which further limits the
establishment of vegetation cover. Closed areas of the tailings impoundment have been capped
with local sand at a depth of ~100 cm, and this approach is likely to be implemented at closure.
The University of Toronto has been conducting experiments on the Musselwhite mine tailings for
the past few years in order to test how biochar can promote forest restoration in this environment
(Dr. S. Thomas, J. Bieser and J. Williams, personal communication, 2017). The trials have used
both natural charcoal from an adjacent areas affected by wildfire and high-carbon wood ash
obtained from Wood Ash Industries, based in Kirkland Lake, Ontario. Positive responses from the
vegetation have been recorded both in small-scale field experiments and in the laboratory (J.
Bieser, personal communication, 2017). In August 2017, a larger-scale experiment was set up over
12 plots of 10x10 m each, amongst which 9 were amended with high carbon wood ash at the
various amendment rates of 6.4, 12.8 and 19.1 t/ha and the remaining left without amendment for
control (Dr. S. Thomas and J. Williams, personal communication, 2017). Saplings, consisting of
two-thirds Jack pine (Pinus banksiana) and one-third mixed hardwoods (aspen (Populus
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
A. Murat
11
tremuloides), paper birch (Betula papyrifera) and willow (Salix bebbiana)) from nearby
regenerating forests, were transplanted into experimental blocks at a density at the upper range
used in operational forestry (3600 stems / ha: Dr. S. Thomas, personal communication, 2017). The
result of this experiment will inform the desirability of a potential full-scale wood char restoration
at the mine closure and provide data on responses to dosages that could likely be implemented at
this scale. To support this research, an economic analysis assessing the feasibility of biochar use
as a major component of restoration at the mine tailings is needed. Such a study should consider
the best alternatives to provide the wood char, as well their economic and environmental impacts.
Specific project objectives and questions
In this study we will assess the main alternatives available to effectively restore the mine
tailings with wood char. Using discounted cash flows in Excel, a detailed analysis on the economic
costs and environmental impacts in term of carbon sequestration/emission will allow quantitative
analyses of alternative options for restoration.
Questions addressed in this report include the following:
Is it better from an environmental and economic point of view to produce the biochar
on site (and if so from which feedstock, with what methods?), or to transport
biochar/wood ash from the supplier to the mine?
Could relatively low amendment rates of biochar (5-20 t/ha) be more economically
feasible for the restoration of mine tailings located in remote area?
Is producing biochar locally from salvaged dead trees following wildfire a sustainable
and economically viable option?
Of the alternatives examined, which is the lowest cost option?
We will qualitatively assess options in terms of environmental and social benefts.
METHODOLOGY
Clarification about units used in this report
All the quantities expressed as “tons” (“t”) in this report refer to tonnes or metric tons. There is no
mention to “US tons” unless otherwise specified.
System boundaries
Stakeholders
The Musselwhite mine needs a specific solution to sustain their commitment to the
“revegetation of disturbed sites” (Goldcorp, 2010) to meet provincial legal requirements.
Following the recommendations of a previous consulting work, the 2010 Closure amendment plan
included the design of a tailing overtop made of 1.0 m of sand and gravel or till on top of 0.3 m of
clay, coupled with 0.1 m of peat destined to provide a “growth medium” for native plants
(Goldcorp, 2010). At the time, the design appeared to be mainly a recommendation before
determination of “the final cover design”, yet the addition of 1.0 m of sand has been implemented
on certain unused mine tailings. Other measures taken so far include an inventory of the initial
vegetation (Goldcorp, 1995) and the identification of Jack pine as the preferred seedling species
for rehabilitated sites (Goldcorp, 2010). Nevertheless, the 2010 Closure amendment plan does not
include a specific plan on how to restore the vegetation on their now 100 ha mine tailings.
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
A. Murat
12
In the 1990 Mining Act, the Ontario government requires mines to “restore the area to its
original state” after closure, without specifying what is meant exactly. More recently, the 2009
revision to the Ontario Mining Act introduced additional specific requirements and guidelines,
including consideration of “success of natural revegetation and species present”, “use of native
species”, “application of soil to a depth sufficient to maintain root growth and nutrient
requirements”, and “the incorporation of organic materials, mulches and fertilizers based upon soil
assessment”. In addition, the Ontario’s 2016 Climate Change Action Plan and new Cap-and-Trade
proposals promote a low carbon economy. In this economy carbon sequestration could potentially
generate income for the industry. It is difficult to make any prediction until the Cap-and-Trade is
fully implement. However the government of Ontario made it clear that a carbon offset project
could be any “tree planting project – trees absorb carbon dioxide and store the carbon, which
reduces the amount of carbon dioxide present in the atmosphere” (Ontario, 2016a). Moreover,
quantification of the persistent carbon component of biochar could generate additional revenue on
Ontario carbon markets (IBI, 2017) although it is still unclear to what extent.
In the region of the Musselwhite mine can be found 13 First Nations communities, the closest
being the Kingfisher Lake First Nation. These communities are likely to be impacted by any local
project (or lack thereof) and by the mine tailings state. Musselwhite was one of the first mines in
Ontario to put in place a comprehensive agreement with local First Nations and 19% of their
employees are indigenous (Natural Resources Canada, 2017d). However, First Nations
communities are concerned about the potential environmental damages from mining activities
(Mining Watch Canada, ND). The restoration project could give them employment opportunities
and help them transition during the mine closure to other economic activities.
The general public is also an evasive, yet important stakeholder. Public outcry and negative
reports from NGOs, such as Mining Watch Canada (ND), could tarnish Goldcorp reputation. On
the other hand, successful land restoration, with an innovative technique such as biochar, could
positively impact Goldcorp’s corporate image.
Expected time frame
According to the most recent Closure Plan Amendment (Goldcorp, 2010), the mine is expected to
cease operations by 2028-2030, after which a monitoring period of 10 years would be implemented
(e.g., between 2028 and 2038). However delays could be expected if new unexploited ore resources
are found in the meantime. Since its implementation, the Musselwhite mine also has also
considered the “progressive rehabilitation” of unused sites, which as of 2009 consisted in a total
restored area of more than 21 hectares (Goldcorp, 2010).
Since at the present time both the exact closure time and the desired time frame are unknown, we
do not have a set time frame for this project. Instead for each alternative, we studied the minimum
achievable time given the technical and physical limitations in place. However since the life
expectancy of the main equipment items is estimated to be 20 years, we did not consider projects
with a longer completion time to be realistic.
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Details on the experimentation
1. biochar/wood ash rate of amendment
Our review of the literature shows that there is currently a lack of consensus in the literature
regarding the correct dosage to use and that further experimentation is needed. There seems to be
a slightly higher number of article defending rate of 40 t/ha or higher. However given the
remoteness of the mine and the difficulty to transport or produce biochar onsite, such high rates
would be physically difficult to implement on a large scale (100 ha). Looking at the lowest
application rate possible, dosages of 12.75 and 19.125 t/ha currently experimented at the mine
seem reasonable. Furthermore, since there is a lack of experimentation of small dosages on mine
tailings, the application rate of 6.375 t/ha (also currently tested at Musselwhite) seems an
interesting alternative to consider.
For simplification purpose, we will round up the current amendment rates of 6.375, 12.75 and
19.125 t/ha to 6, 13 and 19t/ha.
2. biochar/wood ash application
In order to limit the wind/water erosion to which the biochar dust is susceptible as pointed in
Kuttner and Thomas (2017), we will mix the biochar with sand on the mine tailings up to 10 cm
deep. Musselwhite has already been covering unused mine tailings with 1.0 m sand as
recommended in its 2010 Closure amendment plan, so we will not account for the cost of buying,
transporting and applying the sand. Sand and biochar will be mixed with a reel feed/mixer wagon
that mixes and spreads at the same time (See Appendix B).
Economic analysis
This economic study is based on a cost-benefit analysis. Cost-benefit is a tool used to measure the
strengths and weaknesses of a project and compare its alternatives in order to determine the best
option(s) (European Commission, 2015). In this study we focuse primarily on the costs generated
from the project, but also consider related benefits/income. The sums of these annual costs and
incomes, or cash flows, are calculated in an Excel spreadsheet model based on specific parameters
and items. Cash flows are the sum of all costs, consisting of biochar application, energy, labor,
harvesting, taxes and fees (crown charges), transportation costs. In some case, we consider
potential savings from electricity produced during the process. In addition, we also consider
environmental benefits, in term of CO2 gain – which hypothetically could also generate income in
terms of carbon credit.
Moreover, to allow comparison of the projects that occur in different times, annual future cash
flows are discounted to obtain their present value (European Commission, 2015). Discount rates
allow to actualize the cost of a future dollars to its present value, considering the fact that money
spent on a project could have been invested elsewhere by the company (Canada, 2007). Choosing
a discount rate is always a contentious and problematic aspect of cost-benefit analysis (Canada,
2007). According to the government of Canada, the typical discount rate for the evaluation of a
project in Canada was estimated to be 8%, but the social discount rate taken into account is much
lower at only 3% (Canada, 2007). In this analysis, since the discount rates should inform on the
cost of the decision for Goldcorp inc, the rate applied will refer the cost of the debt generated by
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the company. Consequently the analysis uses a discount rate of 3.7% corresponding to a 1 billion
dollars fixed rate bond issued by Goldcorp inc in 2017 and maturing in 2013 (MorningStar, 2017).
To acknowledge for the arbitrarily of this rate, a range of error for each considered amendment
rate (6, 13 and 19t/ha) will be calculated based on a variation in discount rate of +/- 1%.
The main parameters used for this analysis are a 20 year amortization period for the equipment,
amendment rates of 6, 13 and 19t/ha and an area to restore of 100 ha.
The present analysis studies costs minimization of the various options considered and their
environmental benefits (in terms of CO2 gain) – the combination of which should define the
optimum solution.
Alternatives considered
Due to the significant numbers of possibilities, we had to limit our study to a few outcomes.
Specifically, the search for new available feedstocks will be limited to a sustainable radius of
1,000km, both due to economic (transportation cost) and environmental (emissions of CO2)
reasons.
To reach the intended goal of a based biochar/wood ash forest restoration at the Musselwhite mine
tailings, the case study concentrates on the following scenarios (see figure 1 for summary):
Figure 1. Summary of options considered
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Option 1: Industrially produced high carbon wood ash is supplied by a third party, transported
up to the mine and applied on the mine tailings.
The wood ash comes from wood-fired co-generated power plants, located at a “reasonable”
distance of less than 1,000 km. We obtained the analysis of the wood ash, including carbon, basic
properties and main toxicants. In order to assess their relevance as soil amendment, the results of
these analysis were compared with the standard maximum allowable thresholds for toxicants as
listed in the International Biochar Initiative (IBI) for “Standardized Product Definition and Product
Testing Guidelines for Biochar That Is Used in Soil” (2014, Table 2). Whenever different property
values are available for each wood ash, we used the mean value in our estimates.
Three major suppliers of wood ash where found within the distance criteria. Wood ash Industries
Inc is located 1,588 km away from Musselwhite at Kirkland Lake Ontario, but it has been
supplying U of T with the wood ash used for the current and past experiments at the Musselwhite
tailings. As a result, we will include this option in our analysis. An experienced and licensed
wholesaler, Wood ash Industries Inc have been selling wood ash since 2002 for agricultural and
horticultural usage. The material originates from a wood fired co-generation power plant located
in Kirkland Lake, Ontario and has an average carbon content of 41.5% (Wood ash Industries, ND).
This is considered as a sub-option in which commercial wood ash is obtained “at a cost”.
Other major suppliers of wood ash were identified at Thunder Bay and Atikokan, which are
respectively 728 km and 651-690 km away from Musselwhite and the closest major city. Resolute
Forest Products (RFP) generates a large volume of bottom ash from their Thunder Bay pulp and
paper mill boilers. Laboratory analysis reviewed two ash samples valued at 65.4% and 43.2% ash
content respectively (University of Guelph, 2017). In addition, Ontario Power Generation (OPG)
transitioned from charcoal to wood biomass energy generation in recent years. The OPG Atikokan
cogeneration plant is located some 650 km away from the mine. OPG has another cogeneration
power station at Thunder Bay. Laboratory analysis obtained from the Atikokan power plant reveals
carbon content up to 92.05% (OPG, 2014). OPG contributes to Ashnet, a collaborative research
initiative studying the utilization of wood ash in forest soils (Canada, 2018). To simplify we
considered in this sub-option that wood ash would be obtained from Atikokan For
simplification, in this sub-option, we considered that wood ash would have a mean carbon content
of 66.88% (average of 65.5%, 43.2% and 92.05%) and it would be obtained from Atikokan within
the distance of about 700km. Since the wood ash from RFP and OPG is currently sent to landfill
(D. Bailey, personal communication, September 2017; A. Marchl, personal communication,
September 2017) at a significant cost for the companies, it is assumed that the wood ash could be
obtained at “no cost” or at a very small fee for the purpose of this restoration project. However,
the final pricing will be subject of negotiation with the supplier at the time of undertaking the
project
The regulations pertaining to the transportation, storage and application of wood ash are detailed
in Appendix C.
Option 2: Biochar is produced on-site with a local pyrolyzis unit or a wood gasifier.
No commercial producer of biochar could be found in a radius of 1,000km. In Ontario, the
Haliburton Forest & Wildlife Reserve Ltd. has a commercial biochar facility, but this is located
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2,000km from Musselwhite mine, which we did not consider sustainable both at a financial and
environmental levels.
Biochar could be produced on site with various technologies and feedstocks, which we will review
in the following paragraphs.
Possible feedstocks
In this option we consider the production of biochar from locally sourced or imported wood
biomass. Unfortunately, the trees cleared for the construction of Musselwhite were burnt gradually
to avoid any safety hazard from the accumulation of firewood (Environmental Department,
Goldcorp, personal communication, June 2017). As a result, there is very few to no forest residues
left on site.
Nevertheless, the area surrounding the mine has been repeatedly affected by wildfire over the past
40 years and a great amount of small dead trees and stumps with an average 10 cm DBH have been
identified as possible feedstock (see Appendix D for pictures) for local pyrolyzis. Wildfire near
the mine affected 2,700 ha in 1979, followed by 1,200 ha (25 km South from the mine) and 950
ha (7km to the South Easth of Musselwhite) in 1989 (Golder Associate, 1995). Then in 2011,
112,000 ha of the Sioux Lookout district were burnt (The Timmins Times, 2011). These dead
trees could therefore be a potential feedstock for local pyrolyzis.
Forest harvesting in the Ontario Far North Region is theoretically not impossible, although has not
been performed yet for environmental and economic reasons. The Ontario Far North Region
contains the largest intact forest in the world, the third biggest area of wetlands and the second
largest area of peatlands in the world (Ontario Far North Science Advisory Panel 2010). On the
economic side, the closest commercial forest from Musselwhite is the Whitefeather forest located
at 764 km South West of Musselwhite. The closest mills are in Thunder Bay, Ontario, 728 km
away from the mine. Aside from these economic considerations, any harvesting activity would
have to comply with both the Far North Act (2010) and the Crown Forest legislations. A formal
review process would need to be performed from the OMNRF (B. Everatt, personal
communication, August-December 2017). The required steps, including application,
documentation and consultations required with First Nations are included in Appendix C. Once
approved, any harvesting activity (including the harvest of dead trees) would be subject to the
crown charges consisting of stumpage fees and renewal charges.
When the wood feedstock is being harvested near the mine (approximately 5 km based on similar
estimation made by Petelina et al, 2014b), it is wood-chipped at roadside, transported to the mine
where it is processed into biochar through pyrolyzis or into wood ash through a wood gasifier. A
moisture content of 42% for the harvested trees was assumed as recommended per Homagain et
al (2014) in a review of biochar-based bioenergy in Northwestern Ontario. However it must be
noted that standing dead trees after wildfire disturbance could dry out quite rapidly to attain a
moisture content as low as 30% after a 1-year period (Barrette et al., 2015).
Alternatively, the Environmental Department of the mine (Personal communication,
August 2017) mentioned that the mine accumulates on a yearly basis approximately 1,400 m3 of
wood waste, mainly composed of wood pallets (. The 1,400 m3 wood waste/ wood pallets found
at the mine were converted from m3 to metric tons using a conversion ratio for Construction and
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Demolition (C&D) Other Recyclable Wood category from the U.S. Environmental Protection
Agency (EPA, 2016). According to EPA, waste wood can be classified in C&D. Since the first
C&D categories were “clean dimensional lumber” and “clean engineered wood” which usually
corresponds to destroyed hardwood floor and furniture and/or other “clean” wood, it seemed
reasonable to use instead “other recyclable wood”, which would typically include wood pallets. In
this classification 1 cubic yard in volume corresponds to 169 pounds of waste wood. Given the
fact that 1 cubic meter equals 1.3 yard and that 1 pound is equivalent to 0.00045 metric tons, then
1m3 of wood waste would corresponds to 0.1 tons (169 x 1.3 x 0.00045). Therefore there is
approximately 140 metric tons of wood pallets every year.
Most European countries have a standardized moisture content of 20% or less for wood
packaging (including wood pallets) in order to prevent the development of fungi (Timcon, ND).
Since 2005, Canada adheres to the International Standards for Phytosanitary Measure No 15
(ISPM) of the International Plant Protection Convention (IPPC). Any wood product packaging
being imported to or exported from Canada must now comply with the ISPM 15, where heat
treatment and, in some case, kiln dried treatment are being required to kill all risk of pest, mold or
fungi. Moreover, the majority of the Canadian softwood lumber for construction and housing has
been traditionally submitted to kiln drying, reducing the moisture content to an average of 9-20%
(Canada Border Services Agency, 2014). Compliant wood products wear the stamps “KDHT”
where KD means Kiln Drying and HT heat treatment. Therefore we estimate the maximum
moisture content of the wood pallet to be 20%. If most pallets are free of non-wood materials, they
nevertheless have nails (Badger, 2002) that need to be removed prior to pyrolyzis. When shredding
the wood pallets with a low speed shredder, an integrated band magnetic separator can be used to
remove the ferrous metals (G. Rawcliffe, personal communication, October 2017).
The possibility to import wood-chips, priced at $25-30 per ton and with an average 37.5%
moisture (M. Lewandowski., personal communication, September 2017), was also considered.
However, we could not find any supplier at a “reasonable distance” (less than 1,000 km). The
biggest mill in the area of Thunder Bay, with an annual capacity of 539,000 metric tons wood
(Resolute Forest Product, 2017), is run by Resolute Forest Products and would probably produce
enough woodchips to produce the desired quantity of biochar. However all the woodchips
produced are consumed in the manufacture of newsprint and kraft pulp at Resolute’s pulp & paper
mill (M. Kaiser, personal communication, September 2017). Nevertheless, for the purpose of this
analysis, we consider that the wood chips are purchased at and imported from Thunder Bay.
Assuming the price of wood pellets to be between $238-245 per ton (National Bank of
Canada, 2017; Wood Pellet Association of Canada, 2017), we consider the price of this feedstock
as cost-deterrent.
Pyrolysis parameters:
The above described feedstocks are converted into biochar either with the use of a pyrolyzis unit
or with a wood gasifier.
On-site field trials will be needed to determine the exact parameters of the pyrolyzis treatment.
However since the most desirable output is biochar, we estimated that slow/intermediate pyrolyzis
should be used. The highest biochar yield is obtained with slow/intermediate pyrolyzis (35-50wt%
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versus 15-25wt% for fast pyrolyzis) at 300-500°C and has traditionally been used for the
production of biochar (Manya et al, 2012, Brownsort, 2009, Homagain et al, 2014). At
temperatures ranging from 300-500°C, with a wood moisture content ranging from 10-15%,
slow/intermediate pyrolyzis yields range from 30-40% (Brownsort, 2009) to 35-50% wt (Manya
et al, 2012) versus 10-20% (Brownsort, 2009) or 15-25% (Manya et al, 2012) for fast pyrolyzis.
Therefore we asserted the use of intermediate pyrolyzis at 500 °C would produce at least 35%
yield from dry feedstock (with less than5% moisture content), which is also confirmed in
Homagain et al. (2014). It must be noted that the real yield would most probably vary depending
on the exact pyrolyzis parameters (temperature, pressure, residence time) and the type of feedstock
(Kloss et al., 2012).
It is assumed that the pyrolyzis units only operates for 300 days/year, the remaining 60 days being
used for maintenance. Since the wood gasifier is supposed to operate continuously to generate
enough electricity, we assumed that it would be operating for 340 days a year.
Both equipment units work with regular sized wood chips at a maximum moisture content of 10-
15%. Based on suppliers’ information, we assumed that the pyrolyzis/wood gasifier generates
enough energy to heat its container in winter and to dry the wood chips from the initial to the
desired moisture content.
The quantity of biochar obtained from initial feedstock is calculated as follow: B = (W-MC*W)*Y
Where B is the final quantity of biochar obtained, W is the weight of the wood feedstock, MC is
the moisture content and Y the yield (35% for the pyrolyzis unit, 10% for the wood gasifier).
Based on the Haliburton Forest biochar carbon content (Gale et al, 2016; Gale et al, 2017; Kuttner
and Thomas, 2017; Mitchell et al, 2016) we presumed the biochar in this study to have an average
of 85% in carbon when produced with the pyrolyzis unit. According to internal analysis provided
from the supplier of the wood gasifier, the average carbon content of the biochar produced is 62.7%
(Borealis Wood Power, 2014).
Economic costs
Whenever possible, we used real market prices to assess the cost of the restoration project. Values
reported were obtained directly from suppliers or online companies’ price listings. Other costs
were obtained from the literature, using Web of Science and Google Scholar searches.
For feedstock (wood chip) and soil amendment (wood ash), we primarily considered suppliers
located at a “reasonable” distance (less than 1,000 km) from the mine.
Equipment prices
When looking for pyrolyzer and wood gasifiers prices, we used Google and previous department
research (Ana Almira, BSc, major in forest conservation, 2015) to identify approximately 20
potential suppliers of biochar production systems, located in Canada, China, Europe and the USA.
Due to the remoteness of the mine, we only looked at container sized and/or “mobile” pyrolyzis
system that could easily be transported by truck to the mine. We inquired for system capacity
ranging from 1t to 6t per day and producing biochar as their main input. Suppliers were mainly
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contacted via email. As a result of these inquiries, 7 detailed quotations were obtained from
different suppliers. The prices, converted into CAD at the Bank of Canada conversion rate (as of
August 3, 2017), are included in Table 2. Since the pyrolysis supplied by Carbon Zero, a company
located in Switzerland, is the cheapest alternative, this is the one that we used in our economic
analysis.
Table 2: pyrolyzer and gasifier prices
Notes: *Prices are converted in CAD at the August 3, 2017 Bank of Canada exchange rates; **
the pyrolysis unit was purchased by Haliburton Forest, but the original supplier name is unknown.
Other equipment’s’ price (Appendix E), such as dryers and wood chippers, were assessed through
Google search and by questioning professionals.
For the production of biochar with a wood gasifier, we looked at locally available container-sized
wood gasifier plants with a tracking record in servicing remote communities and identified one
possible supplier (Borealis Wood Power), located in Ontario, Canada.
It is assumed that Goldcorp would purchase the pyrolyzis unit and other equipment and then sell
them at the residual accounting value at the end of the project. For amortization purpose and based
on information provided by the suppliers, the life expectancy of all equipment is estimated to be
20 years.
Energy consumption
The propane and electricity used to operate the pyrolyzis are calculated based on the information
supplied by one of the suppliers, Biochar Solutions Inc, for its ½ sized BSI unit, which produces
1 ton of biochar per day (J. Levine, personal communication, July-November 2017).
For the wood gasifier we are using the details provided by Borealis Wood Power (D. Thomas,
personal communication, September – November 2017) regarding its small CHP (Combined Heat
and Power) unit producing maximum 0.1 ton biochar per day. Energy and mass balance of these
specific pieces of equipment are presented in Figure 1.
Energy consumption from the wood chippers is provided by Heizomat Canada (Table 3). We
supposed that the energy produced by the pyrolyzer and the wood gasifier would be sufficient to
power up the dryer without the need of external output.
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Pyrolyzer and gasifier’s energy consumption is provided in Figure 2. Energy consumed by the
wood-chippers is detailed in Table 3. The wood chipper used for the forest residues (HM6-300)
has a shredding capacity of 2.5 green ton per hour (Appendix E). The one used for wood pallets
(SPE-1300) can shred up to 30 pallets, 5m3 or 0.5 tons of wood waste per hour (Appendix E).
1) Pyrolysis parameters: J. Levine, Biochar Solution (July-October 2017)
1) Gasifier parameters: D. Thomas, Borealis Wood Power Corp. (Sept-Nov 2017); 2) Energy
generated by: 2.a. Wood = 17.9MJ/Kg; 2.b. Biochar = 32Mj/Kg (Ronsse et al, 2013); 2.c. Propane
energy = 22.8Mj/L (The Physics Factbooks, 2002)
Figure 2.Mass Energy balance of the pyrolyzer and the gasifier
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Table 3: Energy consumption of wood chippers
The PTO chipper (HM6-300), used for the forest residues option, operates with a 100-130
HP farm truck (G. Rawcliff, Heizomat Canada, personal communication, November 2017):
Example of farm truck AGCO RT 130 DIESEL
HP 130
fuel used Diesel
fuel consumption at max power
(gal/hr)
8.28
fuel consumption (L/hr)
31.34
Source: Nebraska Tractor test laboratory
(https://tractortestlab.unl.edu/documents/AGCO%20RT130.pdf) and Tractor Data
(www.tractordata.com/farm-tractors/003/2/8/3281-agco-rt130.html)
The SPE-1300 Pallet Chipper can shred wood pallets and separate the nails from the wood
to avoid contamination in the final production. Its energy consumption is equivalent to a 22KW
diesel generator (Heizomat, https://www.heizomat.ca/chippers/) with the below estimated fuel
requirements:
Diesel generator’s fuel requirements: www.whisperpower.com/4/5/184/products/generators-sq-
series-(low-rpm)/m-sq-22-marine-(usa).htm
We considered that the electricity required to run the equipment would be produced through diesel
generators, which of course increases the cost of energy. The mine is connected to a small power
line running from Pickle Lake (approximately 100km away), but since it has a limited capacity, it
also uses diesel generators for additional requirements. Therefore it is likely that the use of diesel
generators may be required for this project. Besides we think that this calculation truly reflects the
cost of electricity for Far North Ontario remote communities that often rely on diesel generators
for their daily energy consumption (Canada, 2011).
The electricity generated by the wood gasifier is considered as an income, based on the cost that
would be occurring otherwise to produce the same amount of energy with a diesel generator.
The price of diesel is estimated to be $0.89 per liter (Natural Resources Canada, 2017b). The
propane, used for the pyrolysis unit, costs $90.90 cents per liter (Natural Resources Canada,
2017a).
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Feedstock prices
Wood ash
According to the commercial supplier, Wood Ash Industries (B. Coghlan, personal communication
August 2017), wood ash can be supplied in bulk at a price of $400 per truckload of 40 tons
($10/ton). At the time this report was written, and for the sole purpose of UofT experimentations
at the mine, OPG (Ontario Power Generation) offered to provide a “small quantity” of wood ash
for free (D. Bailey, personal communication, September 2017). Nevertheless, if a full scale
restoration was being undertaken by Goldcorp, contractual negotiations would need to determine
the final pricing (D. Bailey, personal communication, July 2018). The wood ash produced at the
Atikokan power plant is sent to landfill (D. Bailey, personal communication, September 2017) and
not sold commercially. Thus we assume in this analysis that it might be obtained free of charge.
Wood chips/sawdust
Wood chip/sawdust price ($45/ton on average and $30/tons respectively) and moisture content
values were provided by a consulting company Ecostrat Inc, Toronto, Ontario (M. Lewandowski,
personal communication, September 2017) and from Haliburton Forest (M. Cecil-Cockwell,
personal communication, October 2017).
It must be noted that we could not find any major supplier of wood chips at a maximum distance
of 1,000 km. Resolute Forest Products produce an important amount of wood chips and sawdust,
but wood chips are fully used in the production of pulp and paper and sawdust transformed into
value-added wood pellets (M. Kaiser, personal communication, September 2017).
A summary of all the feedstock prices and characteristics are available in table 4.
Table 4: Feedstock used. Prices and main characteristics
Based on feedstock characteristics and pyrolyzer/gasifier parameters, table 5 presents the
feedstock to biochar conversion factors.
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Table 5: Initial feedstocks-biochar/wood ash conversion factors (“conversion yield”). For
each alternative, number of tons needed to obtain 1 dry ton of biochar/wood ash.
Note: * there is no conversion needed for wood ash, therefore we consider its yield to be 100%.
Operating costs
Harvesting – operating costs and crown fees
The cost of harvest is difficult to estimate due the remoteness and the specificity of the site. In the
Crown boreal forests of the North Ontario, harvesting costs range between $55 and 100/m3 (D. E.
B. Reid, personal communication, August 2017). This largely depends on the cost of transportation
to the mill, so if the harvest occurs near the mine then the cost would likely be at the lowest of the
range, that is $55/m3 (D. E. B. Reid, personal communication, August 2017; M. Cecil-Cockwell,
personal communication, October 2017). Harvesting costs were calculated using the 2016 average
of Quebec harvesting costs reported by the government of Quebec (2016), which is $51.79/m3.
Since the government of Quebec (2016) reports that in 2014 Ontario harvesting cost (operations
only) were higher by $1.45 per cubic meter, we estimated this operating cost to be $53.24/m3.
The composition of the wood feedstock is based on a consultant report (Golder Associates, 1995)
made for the Environmental Impact Statement of the Musselwhite mine project. As pointed out by
Golder Associate (1995), there has been no previous vegetation study in the area. Zoladeski and
Maycock (1990) give a general description of the forest types in the region. Sim et al (1989)
produced a field guide for the forest ecosystem classification (FEC) in north-western Ontario
(Golder Associate, 1995) but Musselwhite mine is located north of the zone described by Sim et
al (1989) (Golder Associate, 1995). No recent inventory of the area has been found. According to
the Golder Associate report (1995), the most common trees at the Musselwhite mine site and
nearby were Black spruce (Picea mariana), followed by Jack pine (Pinus banksiana), Trembling
aspens (Populus tremuloides) and White birch (Betula papyrifera). Golder Associate (1995) did
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not include specific inventory data in their report, therefore we are taking the assumption, based
on their description, that the tree cover was composed at 90% by conifers such as Black spruce
(50%) and Jack pine (40%), while the remaining (10%) consisted of various hardwood species,
such as Trembling aspen. The density of green wood in Ontario is on average 437 kg/m3 for Black
spruce, 418 kg/m3 for Jack pine and 387 kg/m3 for Trembling aspen (Gonzales, 1990). This results
in a total average density of 0.4244 tons per m3 or 2.36 (1/0.4244) m3 per ton (Table 7).
Since the price of harvest is $53.24./m3, the price of harvest per ton will be $125.44
(53.24x(1/0.4244)).
Table 6: Average density of Musselwhite forest wood based on a hypothetical forest
composition and Gonzales (1990) wood densities:
In addition, based on email exchange with the OMNR Sioux Lookout District (B. Everatt, personal
communication, August-December 2017), unless a salvage rate was applied, the harvest would be
charged the full current stumpage fee, plus the specific renewal rate. Stumpage fee per m3 are
found on the website of the government of Ontario (Ontario, 2017b, see Appendix F for details of
the calculation). For the onsite production of biochar to be used as soil amendment, the category
fee to be used would be the “NES” (Nowhere Else Specified) column (B. Everatt, personal
communication, August-December 2017). This amounts to $9.75/m3 for Black spruce/Jack pine
as of October 2017. The harvest may also contain hardwood such as poplar (Populus spp.), White
birch (Betula papyrifera) or other hardwood. Since it is unknown how much hardwood would be
present in the residues, we estimate the stumpage fee of hardwood based on an average of the 3
rates. For “other hardwood” we took the assumption that the residues would qualify for the
cheapest category of $1.52/m3 since the only wood harvested would be the stems of dead burnt
trees that are usually of small size (Appendix D). In this high stumpage fee scenario, the maximum
would be $9.04/m3. However in a low stumpage fee scenario the OMNRF would recognize the
operation as a “bioproduct” harvest, then the rate falls to $1.11/m3 (J. Flinders, personal
communication, December 2017). In order to be eligible for the “bioproduct” rate, the mine would
need to obtain a license for the production of bioproducts (J. Flinders, personal communication,
December 2017). Licensing can be obtained through registration with the Canadian Food
Inspection Agency (CFIA) after submitting a “Fertilizer and Supplement Registration
Application” (Schock, 2014). Such application can be a lengthy process as the CFIA processing
time is 1 year from the date of submission (Schock, 2014). More details about the content of the
application are being included in Appendix C, but we invite readers to consult Schock (2014) for
detailed description about the process and requirements. Another option would be to have the
harvest recognized as a salvage operation, in which case only 75% of the regular fee is paid (B.
Everatt, personal communication August-December 2017). A renewal rate may also apply, but
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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such rates are very case specific and are determined by the district when the harvesting license in
acquired. Based on the closest forest management unit (FMU), the Whitefeather forest (764 km
South from Musselwhite), and with the previous harvesting assumptions, the renewal rate would
be on average $3.65/m3.
Total crown charges would range between $10.56/tons and $29.90/tons (Table 7).
Table 7: Total estimated crown charges:
Given the current indecision regarding crown charges, we presents results for the highest (Regular
rate – “Nowhere Else Specified” / NES) and the lowest (salvage rate Bioproduct) fee scenarios.
Biochar/wood ash application cost
The application cost of biochar/wood ash, including implement cost, fuel and labor, was estimated
to be $26.69 per ton of biochar based on Dutta and Raghavan (2014) biochar life cycle analysis in
Quebec
Labor cost
The cost of labor was estimated to be $25/hr. One technician is needed to operate the pyrolyzis
unit/wood gasifier. Another one is required for operating the wood chipper in summer for 3 months
per year. Harvesting can only be performed in summer, so we only accounted for the cost of harvest
labor over a period of 3 months (in summer). Modern commercial equipment required for the
operation would include a bundling machine able to withstanding harsh off road driving conditions
and a wood chipper at roadside with a grapple. With such equipment, a crew of 2 members could
expect to collect up to 200 tons per day (M. Cecil-Cockwell, personal communication, Oct 2017).
However the initial capital cost of this machinery is expensive (Table 8). Contracting the closest
commercial forest, the Whitefeather forest, located 764 km away, might be possible. However it
is not guaranteed that they would be willing to lend their men and machinery during their busy
harvesting season – unless for a substantial contracting fee. Therefore we are considering instead
a more labor intensive option with 3 local workers bundling up forest residues with a small grapple
skidder, dragging them with another cable skidder to roadside where they would be chipped in a
truck mounted chipper and blown directly into a reasonable sized loading truck. We took the
assumption that their maximum productivity would be 50 green tons per day.
The below tables 8-10 compare the equipment and workforce scenario, as well as the productivity
under the two scenarios and the time needed for completion of the harvest.
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Table 8: Harvest Equipment and workforce scenarios
Commercial forestry process More labor intensive option
Equipment bundling
machine
road side
chipper with a
grappler
small grapple
skidder
small grapple
skidder with
cables
small grapple skidder
charge residues into
the wood chipper
Price 567,000 1 150,000 2 20,000 3 20,000 66,000 4
Process
create bundles
and drag them
to roadside
chipped and
blown into a
loading truck.
create
smaller
bundle
drag the
bundles to
roadside and
load into
chipper
chipped and blown
into a loading truck.
Labor 2 crew member can perform 200
tons/day 5 3 crew member can perform 50 tons /day
Sources: 1(Rummer and al, 2004); 2(G. Rawcliffe, Heizomat Canada, personal communication,
October 2017.); 3(price of a John Deere 548D 1987 Grapple Skidder, Forestry equipment sales,
Oct 2017); 4(G. Rawcliff, Heizomat Canada, personal communication, Oct. 2017); 5 (M. Cecil-
Cockwell, personal communication, Oct. 2017).
Table 9: quantity of wood biomass to be harvested:
Note: More wood is needed for the wood gasifier because of the lowest biochar productivity
compared to a pyrolyzis unit.
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Table 10: time needed to complete harvesting for each option (pyrolyzis unit/gasifier unit)
and given the harvest productivity rate.
Transportation costs
For the cost of the pyrolyzis unit transportation via truck, a quotation received from one of the
suppliers (D. Presezzi, personal communication. August 2017) was used as a reference after
calculating the road transportation price per km ($5/km).
Cost of sea shipping of the pyrolysis where estimated from Searates.com as recommended by
Hashim and Aktas (2016).
All transportation costs are based on a 40’ST container size (12(L)x2.4(W)x2.6m(HI)) which
corresponds to the average size of our mobile pyrolysis (see Appendix G for an example picture).
This cost is not included in the discounted cash flow, but rather considered as a part of the capital
cost and as such it is also amortized.
Since our analysis is based on the theoretical assumption that the pyrolysis unit is purchased
from the firm Carbon Zero, we calculated the pyrolysis transportation cost from Aston, Switzerland
where the company is located (Table 12).
The wood gasifier transportation is calculated on a 2,094km road distance from Etobicoke,
Ontario, Canada, where its supplier is located (Table 11).
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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Table 11 cost of transportation per pyrolyzer/gasifier
Note: *USD Sea shipping costs converted into CAD at a rate of 1.3 (Bank of Canada, August
3rd 2017 exchange rate); ** the supplier of the Haliburton Forest pyrolyzer is unknown and
therefore we did not calculate shipping cost for this unit. Other transportation costs, such as
transportation of harvested biomass, wood ash, wood chips/sawdust were assessed based on two
quotations received internally by the Musselwhite mine’s Environmental Department
(Musselwhite mine, August 2017) and by the commercial wood ash supplier, Wood Ash Industries
(B. Coghlan, personal communication, August 2017). According to both quotations the transport
of a 40 ton truckload of wood ash between Kirkland Lake and Musselwhite mine would be priced
at$5,000 per truckload for a 1,588 km distance, resulting in a rate of 0.08 $/t-km.
Carbon assessment
Carbon price
The Ontario carbon price is still unknown as the Cap-and-Trade system is still in the process of
being implemented. However based on the Canadian Federal Government’s declarations, we took
into account a minimum ($10/t) and a maximum ($50/t) carbon price scenarios (Environment and
Climate Change Canada, 2017a and b).
Carbon sequestration
1. Carbon content of the forest restoration
Since the new forest protocols require a “beyond business-as-usual” approach, it is unlikely that
“actions required by law” (Cheminfo, 2017), such as restoring mine tailings to its initial vegetation
state as required under the Mining Act (1990), will be eligible for carbon offsets. Therefore we
will not include the amount of CO2 sequestrated from the regenerated forest in this analysis.
Nevertheless, it is worth noting that the restoration of the forest will have an important
environmental benefit. The Far North Ontario, covering more than 42% of Ontario landmass
(Ontario, ND), is home to one of the largest unmanaged boreal forests in the world (Gonsamo et
al, 2017). The region is known for being the largest soil carbon storage in the world, but little is
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known about the carbon stored by its forests (Gonsamo et al, 2017). The total vegetation carbon
stock for the period 1901-2004 was estimated to be on average 20.2 t Carbon per hectare for non-
wetland Far North Ontario forests (Gonsamo et al, 2017). For the period 2007-2100, Gonsamo et
al (2017) estimate that the Far North Ontario forest will store between 19.1 and 22.6 g of carbon
per m2 and per year under various scenarios. At Pukaskwa National Park, located 315 km West
from Thunder Bay, Ontario, Canada, Nalder and Merriam (1995), estimated that the carbon stored
by trees peaks when they reach 30 year-old (3.97 kg carbon per m2) then slowly decreases over
time, reaching 3.45 carbon per m2 at 100 years. In a study located 150 km North of Thunder Bay,
from 49827’N to 49838’N and from 89829’Wto 89854’W, and at the limit of the Far North
Ontario, Seedre and Chen (2010), estimated that the total live vegetation regenerating 92 years
post fire disturbance accumulates on average 109.2 t C/ha. Given the similarity of treatment
between fire disturbance and the addition of biochar/wood ash, we could reasonably estimate that
the 100 ha regenerated forest could accumulate at least 1,000 tons of carbon (3670 tons of CO2).
Besides carbon sequestration, the Canadian boreal forest also delivers other ecosystem services,
such as flood control and water filtering, biodiversity, pest control by boreal birds, nature-related
activities, biodiversity values, estimated at $154 per hectare (Anielski and Wilson, 2009).
2. biochar: carbon content and valuation
As per Roberts et al (2010), there is two approaches to value GHG offset, either value the total life
cycle GHG emission in the entire biochar system or to value only the stable C in the biochar. For
this study we chose the second method.
We base our estimation on the stable carbon stored in the biochar for at least 100 years. As
reviewed earlier, the stable carbon is a minimum of 50% (Lehmann et al, 2006), up to 68%
(Hammond et al, 2011) or 80% Galinato et al, 2011; Roberts et al, 2010). Based on these figures,
we conservatively estimate that 60% of the initial carbon content is stable (table 11).
Table 12: stable carbon content for each feedstock.
Carbon emissions
Following Gifford (1984) and Lal (2004) classifications, we have grouped our emissions source
in 3 categories:
1. Primary emissions from mobile operations
Primary emissions as per Lal (2004) include mobile operations such as transport, harvesting, tillage
and application
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The carbon emission from the transport of feedstocks (wood ash, woodchips, harvested
wood) and equipment (pyrolyzis unit, wood gasifier, wood chipper, etc.) to the mine were
calculated using the following formula (Mathers et al., 2014):
Greenhouse gas emissions = D x W x EF
Where D is the Distance traveled (in miles), W is the Weight of the shipment and EF the mode’s
specific emission factor (CO2 per Ton-miles)
Data for the mode’s specific emission were taken from the latest United States Environmental
Protection Agency (EPA, 2015) ( emission factor data sheet, according to which the CO2 emission
factor equals 0.146 kg per ton-mile for medium and heavy-duty truck.
For the weight of the pyrolyzis unit, we used the gross weight (maximum cargo weight that a
container can carry, including the weight of the container itself) of a 40’ST container as
approximately 30,480 kg (Searates, N.D.a).
Harvesting fuel consumption is estimated to be 3.2 L/m3 by Wyatt and Fredeen (2014)
when assessing the harvest of deadwood in BC for the production of wood pellet. Considering an
emission factor of 2.66 kg of CO2 per liter of diesel (Natural Resources Canada, 2016), the CO2
emission per m3 of wood harvested is 3.2 x 2.66 = 8.5 kg CO2 per m3.
For the carbon emission generated during the application of biochar, Dutta and al (2014)
indicated the carbon emission to be “5 Mg per hectare”. To date, this is the only estimate published
for the application of biochar. However looking at other fuel consumptions (EPA, 2015; Wyatt and
Fredeen, 2014; Lal, 2004), we believe that it was meant to be 5 kg/ha, which is what we used in
our analysis. Indeed when reviewing the literature on farm’s carbon emission, Lal (2004) shows
that fertilizer spreading generates between 5.1 and 10.1 kg of Carbon Equivalent (CE) per hectare.
Even the “most intensive C operations” such as corn silage (13.2-26.0 kg CE/ha), corn harvesting
(8.5-11.5 Kg CE/ha), Forage harvesting (9.2-18.0 kg CE/ha), tillage (1.2-20.1 kg CE/ha) are very
far from reaching one ton of CE per hectare.
2. Secondary sources of emission
Secondary sources of emission as per Lal (2004) would include carbon emission from
manufacturing (pyrolyzis), and storing.
We do not take into account carbon emissions from pyrolyzis or wood combustion. During
the process of pyrolyzis (and to a greater extent wood gasification) there is indeed volatile carbon
released into the atmosphere from the wood (Brownsort, 2009). However the process is considered
as “carbon neutral” because it would have occurred anyway through decomposition of the wood
(Brownsort, 2009). Besides, the pyrolyzis process stabilizes carbon into the biochar, and as such
can be considered as a carbon sink rather than a carbon source.
Moreover, in order to avoid double accounting, we do not account for the carbon emissions
generated during the production of wood ash since these emissions would have been accounted in
the primary cause of carbon emission (electricity generation from combustion of wood pellets by
the co-generation plant). Besides, the wood ash is considered as a waste by the industry generating
it and it would have be sent to landfill if not used as a soil amendment.
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Last, we do not account for the volatile carbon released by wood ash/biochar during their
storing period. Volatile carbon is already discounted from the analysis since we only consider the
amount of stable carbon in the calculation of carbon sequestered.
3. Tertiary source of emissions
Carbon emission from the acquisition of raw material, fabrication of equipment and building.
We consider the emission from the acquisition of the raw material to be already included in the
primary and secondary sources. For simplification purpose, we will not take into account carbon
emissions from the fabrication of equipment and building.
Conversion between Carbon and CO2
Greenhouse gas impacts are measured in term of CO2 emission. Whenever necessary we convert
carbon into CO2. Taking into account the atomic mass of carbon (12 atomic mass), and the atomic
mass of CO2 (44 atomic mass units because it includes two oxygen atoms, each with a weight of
16 atomic mass units), we know that 1 ton of carbon equals 3.67 ton of carbon dioxide (44/12) or
that 1 ton of carbon dioxide corresponds to 0.28 tons of carbon.
Estimating distances
To calculate the GHG emissions and economic costs, distance had to be estimated. For distances
travelled via roads, Google maps estimations were used with the shortest road available.
For sea transport routes, we used the online resource of Searates.com (Searates, N.D.b) to estimate
distance between ports as recommended by Hashim and Aktas (2016).
Limitations of the study
Storage costs were not taken into account because the biochar could be easily stored on site
and because we assumed that in the summer it would be applied immediately onsite. However the
construction of a small storage unit may be necessary for the winter months. The biochar could
also be stored under tarps at a lower cost.
We did not estimated the environmental and health impact of not performing a mine restoration
tailings and therefore we are unable to estimate the benefits generated in this regard by the
restoration.
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RESULTS
Time to completion of the project
The time to completion varied with the alternative and the amendment rates, ranging from 2 years
(the shortest) for forest residues/woodchips/sawdust with pyrolysis at an amendment rate of 6t/ha
to 169.6 years (the longest) for wood pallets with gasifier at an amendment rate of 19t/ha (Table
13).
Based on our time constraint (less than 20 years), only the following alternatives were considered
viable (Table 13): wood ash (all amendment rates), Forest residues (all amendment rates with the
pyrolyzis unit, but only 6 tons per hectare with the wood gasifier), wood chips/sawdust with
pyrolyzis (all amendment rates) and only at 6 tons per hectare for the wood gasifier. Within a
timeframe of 20 years, the wood pallet option would only be eligible at a rate of 5t/ha, when
converted to biochar with a pyrolyzis unit, and at a rate of 2t/ha with the gasifier (Table 13, Figure
3).
Table 13: relation between equipment used, amendment rates and viability of outcomes.
The main factors that defined the duration of the project were the daily production capacity of the
pyrolysis/ wood gasifier unit and the limitation of available resources. For instance, wood gasifier
has only a maximum capacity of 1 green ton per day, producing a maximum of 0.1 tons biochar
as output. As a result, with a minimum amendment rate of 6 tons biochar per hectare, the shortest
time to completion for this alternative would be 17.6 years. Another alternative, the production of
biochar from wood pallet with a pyrolyzis unit, was limited by the low amount of yearly wood
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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33
waste available (only 140 tons per year). When working on the resolution of this alternative it
became quickly evident that a pyrolyzis unit with a daily capacity of 1 ton would be under-utilized
since there is a maximum daily wood waste amount of 0.41 tons (140 divided by 340 operating
days) so we tested the use of the wood gasifier. However the wood gasifier would only attain the
target in 53.6 years for 6t/ha because the average char yield is limited to 10% (compared to 20%
with a pyrolyzis unit). Even with a low capacity, the wood gasifier could process up to 1 ton of
wood waste per day, which is more than twice the amount currently available. Wood ash, not being
a limited resource, is viable in any amendment rates. In fact the completion of the project under
this alternative could have been shorter if the number of truck had not been limited to 1 vehicle
every 2 weeks during the 4 summer months.
A continuous analysis (Figure 3) revealed that the options forest residues/wood chips/sawdust with
the pyrolyzer could be eligible to a maximum amendment rate of 60t/ha within the time frame
limit of 20 years, whereas a maximum of 32t/ha of wood ash could be applied within the same
period. Again the limitations for the wood ash option are mainly set by the transportation
parameters. Increasing the number of truck per week would allow to reach or exceed the
performances of the other alternatives.
Figure 3. Continuous analysis of the relationship between time of completion per option and
amendment rate, within a 20-year timeframe limit.
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Discount rate
Considering a possible error range of +/- 1% in the discount rate, and based on the differences in
cash flows obtained for the amendment rates of 6, 13 and 19t/ha at 3.7% and at 2.7% or 4.7%
discount rates, we calculated that the error range in resulting cash flows was +/- 2% for 6t/ha
amendment, +/-4% for 13t/ha and +/- 6% for 19t/ha. These error ranges will be represented in the
next bar charts in the form of error bars.
Total costs
The cheapest option (Figure 4) considered was by far the wood ash –even when obtaining the
wood ash at a cost (High price scenario) and from Kirkland Lake, which is twice as far as suppliers
found in Thunder Bay. Restoring the tailings with wood ash does not require any capital cost,
energy budget (there are no major equipment used –except maybe for the “sprayer” which is
accounted for in the application cost) and it involves minimum labor cost (there is only the labor
for applying the wood ash, which we considered to be included in the application cost).
The most expensive options are forest residues with gasifier at a rate of 6 tons per hectare and
forest residues with pyrolysis at rates of 13 and 19 tons per hectares. For forest residues with
gasifier, the electricity income generated allows to considerably decrease the total costs, but is not
sufficient to offset costs such as labor and harvest (Appendix H).
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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Figure 4. Total discounted cash flows for eligible options, with (zebra colors) or without
(plain colors) electricity income and within a high (H)* or a Low (L)** price scenario
Note: *High pricing scenario includes: commercial wood ash, forest residues with a regular NES
crown charge and wood chips. ** Low pricing scenario includes the following feedstock: free
wood ash, forest residues with a salvage rate bio-product crown charge and sawdust.
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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The influence of transportation on final costs
Between 91 and 98% of the operating costs for the wood ash alternatives consist in transportation
costs (Appendix H).
Switching to a commercial option ($10/ton of wood ash) would slightly increase the total costs for
wood ash (Table 13), especially as you increase the total amount of feedstock, but overall would
not greatly affect the cost per ton of wood ash. However, Wood Ash Industries Inc being located
at Kirkland Lake (1588 km away from Musselwhite), which is much farther than Thunder Bay
(only 728 km), it would raise the cost of transportation by 54% (Table 14).
Table 14 Wood ash – comparison between free and at cost option. The real difference of
pricing consists in transport, rather than in the purchase cost.
The cost of transportation is also important for the alternatives involving wood chip/sawdust,
representing between 20 and 41% of total cost for these options (Appendix H).
Relation between distance, conversion yield, moisture content and transportation cost
Aside from distance, an important factor is the amount of feedstock required to produce the
intended quantity of biochar. This quantity varies with the capacity of the pyrolyzis unit/wood
gasifier (conversion yield) and the moisture content of the original feedstock. Lower capacity
pyrolysis/gasifier requires more feedstock, therefore increase transportation cost. In addition the
moisture content weights down the feedstock, increasing the cost in transportation (Table 15 and
Figure 5).
Table 15 Transportation costs in dollars per ton-kilometer ($/t-km)
$/t-km is calculated as: 𝑇𝑜𝑡𝑎𝑙 𝑡𝑟𝑎𝑛𝑠𝑝𝑜𝑟𝑡𝑎𝑡𝑖𝑜𝑛 𝑐𝑜𝑠𝑡 ($)
(𝑡𝑜𝑡𝑎𝑙 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑜𝑓 𝑏𝑖𝑜𝑐ℎ𝑎𝑟 𝑜𝑟 𝑤𝑜𝑜𝑑 𝑎𝑠ℎ (𝑡𝑜𝑛𝑠)∗𝑑𝑖𝑠𝑡𝑎𝑛𝑐𝑒 (𝑘𝑚))
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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Note: transport cost is not discounted for simplification reason.
Notes: 1) transport cost is not discounted for simplification reason, 2) for conversion yields see
Table 5
Figure 5. Impact of the conversion factor on the unit cost of transportation ($/t-km). both
the moisture content and the capacity of the conversion equipment (pyrolysis/wood gasifier)
impact the cost of transportation.
For instance, for the same transportation distance (728 km), the cost of transportation is higher for
woodchips than for wood ash because the conversion factor (Table 5) is also higher (8.1 with the
pyrolyzer and 16.1 with the wood gasifier for woodchip, versus 2.0 for wood ash). Furthermore
with the same distance (728 km) and the same feedstock (wood chips), the cost of transportation
is increased when the capacity of conversion of the pyrolysis unit/wood gasifier is decreased. The
yield of a wood gasifier is only 10% against 20% for a pyrolyzis unit, thus the conversion factor
is increased by 50%, resulting in a 50% increase in of transport cost ($/ton of biochar). The cost
of transportation is low for the forest residues because they are located nearby (5 km away), even
though the forest residue conversion factor (8.6 for the pyrolyzer, 17.24 for the gasifier: Table 5)
is high with the wood gasifier.
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
-
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
$/t
-km
Co
nve
rsio
n y
ield
Relation between $/t-km and conversion yield
s/t-km Conversion yield
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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The influence of time over costs
Since it takes more time to obtain higher quantity of biochar/wood ash, time also has an impact on
the overall cost of the budget. As a result, he longer the project is, the higher are the total expenses
(Figure 6).
Figure 6. Impact of time of total discounted cash flow (electricity income excluded) for 3
alternatives. For simplification we excluded from this graph the alternative with gasifier.
Increase in costs in relation to time can be explained by the yearly recurrence of certain linear
costs. For instance the labor cost of a technician to control the pyrolyzis unit/wood gasifier is
constant over time and does not vary with the quantity of biochar produced over year. In addition,
we considered the cost of the pyrolyzis unit/wood gasifier to be constant over time, regardless of
the amount of feedstock processed. If the equipment is underutilized due to a lack of feedstock,
for instance due to a lack of local wood waste/wood pallet, then the project will take longer to
complete and overall costs will increase. In general, the shorter the project, the cheaper overall it
will be.
Increase in costs and in duration can also be caused by the limited capacity of the equipment itself.
For instance, the wood gasifier has a lower production yield, resulting in a higher demand in
feedstock amount and longer processing time to reach the intended target. Similarly, converting
wood pallets/wood waste into biochar would take longer and be more expensive than expected for
similar quantities due to the underutilization of the pyrolyzis unit, resulting in higher energy costs.
Relation between labor cost and duration of the project
One important effect of time is the increase of labor costs over time. Labor costs is almost constant
over time. Whether the pyrolyzis unit runs at its maximum capacity or not, it will still require the
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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presence of a technician to control and monitor the machine. Some harvesting and wood-chipping
labor may vary with the quantity of wood required. Labor is the highest expense for most of the
project -except for wood ash which only “labor” expense is considered as already included in the
cost of application. Wood ash excluded, labor costs represents 27% of all expenses on average.
For the options woodchips/sawdust with gasifier and forest residues with gasifier at 6t/ha, the labor
costs represent respectively 46-49% and 39-42% of the total costs (considering the low and high
price scenarios). This is mainly caused by the long duration of the project (17.6 years for both),
during which the fixed annual labor costs accumulate.
The impact of harvest cost
The harvest costs constitute between 68 and 70% of the alternative involving forest residues and
pyrolysis (at 6, 13 and 19t/ha) and mainly explain why these alternatives are the most expensive.
For example at an amendment rate of 19t/ha with pyrolyzis, the harvest costs can amount up to
2.2-2.5million (low-high costs scenarios). Obtaining a Bio-product salvage rate rather than a
regular full NES rate to calculate the crown charge can save up between $100,000 and $300,000
(table 16)
Table 16: the impact of crown charge categories on the cost of harvest. Switching for a NES
regular fee scenario to a Bio-product-salvage rate can allow saving up to 100 - 300 thousand
dollars.
Energy cost
Although it is theorized that the equipment would run on diesel generator, which is much more
costly that the power grid electricity, the energy cost is minor (1-8%) compared to other costs.
Pyrolysis is usually very energy efficient due to the fact that the energy is mainly derived from the
pyrolyzed wood and therefore there is very little external energy consumed. The wood gasifier
doesn’t consume any energy –except for a few seconds at the start (D. Thomas, personal
communication, September – November 2017). A small energy consumption was added when
wood-chipping is needed (for forest residues).
Cost of goods
Although the cost of goods does not usually constitute a major portion (between 7% for the
commercial wood ash and 30% for the wood whips with pyrolysis), it is important to note that the
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moisture content can greatly influence this cost. For example, the wood ash having 49% moisture
content, this doubles the weight and therefore increases the purchase price.
Net capital cost
Although the initial purchase price of equipment, such as a pyrolyzer, a gasifier or a dryer are far
from being insignificant, they do not make an important part of the total expenses (3-19%) since
it is considered that the equipment can be sold at the end of the project at its salvage or amortized
value. However the duration of the project has a negative impact on this cost since the older the
equipment, the lower its accounting value.
Cost per ton of biochar
Although the total cost of the project usually increases with processing time and quantity produced,
there is a general decrease of the price per unit ($/ton) when increasing the total quantity produced
(Figure 7).
Figure 7. Unit price ($) per ton of biochar/wood ash. High pricing scenario only. No
electricity or CO2 income included.
This decrease in unit price is due to economies of scale in fixed cost – in particular the capital cost
and the labor cost. When increasing the quantity of biochar produced, the decrease in unit price is
particularly steep for options using the gasifier because the cost of investing in a gasifier is higher
(CAD 515,000) than in a small pyrolysis unit (CAD 156,000). Biochar generated from wood
pallets with a gasifier has the highest unit price because there is very little produced. With the
amount of waste available, there is a production of 11.2 tons of biochar maximum per year, while
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
A. Murat
41
the wood gasifier optimum capacity is 34 tons per year. In this situation, the wood gasifier is clearly
under-utilized, while yearly fixed cost such as labor costs may be still accumulating. The pyrolysis
is also clearly under-utilized with wood waste, but the price is lower because the capital cost is
less expensive.
Amongst all the options, the unit price for wood ash is the least expensive at the rate of 6, 13 and
19t/ha, while wood chips with gasifier at 6t//ha and forest residues with pyrolysis at 13 and 19t/ha
are the most expensive options (Figure 6 and table 17).
Table 17. Unit price ($/ton) for each options in low pricing and high pricing scenarios and
for the total discounted cash flow without income or CO2 income.
Environmental benefit of the projects
For an amendment rate of 6t/ha (Figure 8), the wood gasification options, both for forest residues
and for the wood chips, rank by far as the highest in terms of gain of CO2 – 4,804 tons of CO2 for
the forest residues and 4,624 tons for the woodchips. This is mainly due to the emission of CO2
avoided (4,535.2 tons of CO2 for both forest residues and wood-chips) when producing electricity
with a wood gasifier rather than with a diesel generator.
For higher rates and other options, the CO2 gains are quite similar.
Amongst higher amendment rates, the conversion of forest residues, with a total CO2 gain between
783 and 2,612 tons (for amendment rates of 6 and 19t/ha), ranks the highest in terms of
environmental benefit. Emissions from transportation, between 2.6 and 8.2 tons of CO2 for
amendment rates ranging from 6 to 19t/ha, are almost insignificant since the harvest is local.
Emissions generated by harvest (between 103.7and 328.5 tons of CO2) and by wood-chipping
(between 172.5 and 546.2 tons of CO2) are more important, but the carbon sequestrated by the
biochar application (between 1,123 and 3,556.2 tons of CO2) is largely sufficient to offset them.
This option is followed closely by wood ash generating only 360 to 1,143 tons of CO2 gain for the
commercial wood ash, but up 796 to 2,525 tons for the “free” wood ash. Higher CO2 emissions
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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42
from transportation –between 186.8 and 591.6 tons of CO2 – are generated for the commercial
wood ash , while the free wood ash being located closer generates much less CO2 during transport
between 85.6 and 271.2 tons of CO2. In addition the amount of carbon content is lower in the
commercial wood ash compared to the free wood ash. The commercial wood ash, with a carbon
content of 41.5%, stores between 548.3 and 1,736.3 tons of CO2, while the free wood ash (66.8%
of estimated carbon content) can stores between 883.7 and 2,798.3 tonsof CO2. Cautions should
be applied when taking into account the amount of CO2 sequestrated with the wood ash options
as carbon contents were obtained from a limited number of internal analysis that have not been
published nor verified through repeated experimentation. Besides, the amount of carbon could vary
greatly with the samples obtained or depending on the mix of fly ash (lower carbon content) and
bottom ash (higher carbon content).
The option wood-chips with pyrolyzer has a lower environmental benefit (between 732 and 2,402
tons in terms of gain of CO2), mainly because of transportation emission (between 352.3 and
1,115.5 tons of CO2 emitted), which is partly compensated by the high amount of carbon (85%)
assumed in biochar.
Figure 8. Environmental benefit in terms of CO2 gain (in tons)
Potential carbon income
Given the gain of CO2 described previously, there is a potential for the mine to generate future
income within the future Ontario cap and trade. The exact price of carbon credit is for the moment
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
A. Murat
43
unknown, but as pointed earlier the federal government required the price to be minimum $10 per
ton of CO2 and to be increased to at least $50/ton by 2050 (Environment and Climate Change
Canada, 2017a and b). Therefore, the potential income can be estimated with a conservative low
carbon price of $10/t and with an optimist high scenario of $50/ton.
In this framework, the lowest CO2 income would be $7,290 (free wood ash, low carbon price and
an amendment rate of 6t/ha), while the highest would be between 130,000 (forest residues with
pyrolyzis, high carbon price and an amendment rate of 19t/ha) and 172,803 (wood chips with
gasifier, high carbon price and a rate of 6t/ha).
Total results are presented in Figure 9 and table 18.
Table 18. Potential carbon income to be expected
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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Figure 9. Potential carbon income with a low and a high carbon price
Other considerations and overview
A decision matrix (Appendix H), giving an overview of the main strengths (underlined in green)
and weakness (red) of each option, was compiled. Apart from the economic and environmental
considerations reviewed above, some external considerations such as employment, logistics, time,
etc. were reviewed for each option. The main strengths for the gasifier option is energy
independence (all feedstocks), with added benefit in employment generated when coupled with
forest residues due to local employment opportunities generated from the harvest. However this
option’s main weaknesses are the very high cost, as well as the time and the complicated logistics
of harvesting in the Far North. The main weakness for the wood ash is the lower gain in carbon –
especially when the wood ash is obtained from Kirkland Lake and “at a cost”. However this
weakness is resolved when supplying the wood ash from Thunder Bay (option “free wood ash”).
Some of the main strengths of this option include recycling benefits and ease of the logistics.
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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45
DISCUSSION
In our analysis, we made the initial hypothesis that smaller quantities of biochar would be
more economically feasible due to the challenge of transporting feedstock and equipment to a
remote area. Looking at our result, it appears that transportation has indeed a great impact on costs
and is a limiting economic factor. However, it also turns out that the cost per ton of biochar
decreases as quantities increases, due to economies of scale, provided there is no limitation in
resources and equipment.
In term of economic considerations, wood ash is the cheapest alternative and thus may be
preferred to restore the mine tailings. This is also the easiest to implement since apart from the
regular transport of wood ash from Thunder Bay, very little logistics would be required. However,
this is not the most environmentally friendly option due to the accumulation of CO2 emissions
from repeated transportation. It is estimated that, with a capacity of 40 tons per truck and a wood
ash moisture content of 49%, between 30 and 90 trucks would be needed in total. The regular
incoming traffic could have an impact on the road, disturb wildlife and/or nearby communities. In
addition, wood ash could generate air-borne fine particles, which may be considered as a health
and safety hazard for the mine and nearby communities. Nevertheless, the recycling of wood ash
is also a great environmental benefit for the society since this material is currently being sent to
landfill at an environmental and economic cost for the public.
The use of sawdust/woodchips at the lowest amendment rate would be relatively cheap,
due to the savings in harvest operations and chipping, but the cost raises rapidly as the quantity
increases due to the cost of transportation. At an amendment rate of 6t/ha, woodchips/sawdust with
a wood gasifier is amongst the most “environmentally friendly” options due to avoided CO2
emissions from the production of electricity. This gain of CO2 could potentially generate $166,409
in a high carbon price scenario. Electricity generated set aside, this option would not offer any real
advantage compared to the wood ash alternative. Sawdust would be needed in a greater volume
than wood ash, requiring more transportation, which would increase the transportation and
emission costs, as well as bring added safety and health hazard in terms of road traffic (between
58 and 172 trucks required when using the pyrolyzis unit for conversion) and air-bone fine
particles. The transportation of wood chips over long distance would certainly generate less air-
bone particles than sawdust, but at a higher purchase price. The production of woodchip/sawdust
with a wood gasifier is amongst the most expensive option as it would require almost 18 years,
resulting in high labor cost and higher transportation cost due to the lower yield of the wood
gasification. In this option, 201 trucks would be required to bring the necessary feedstock to the
mine. Currently there are probably no suppliers in Thunder Bay who can satisfy such a high
demand in feedstock. Resolute Forest Products is the largest producer of wood chips/sawdust in
the area, but all their feedstock is used for their production of pulp and paper and convert into
value-added wood pellets (M. Kaiser, personal communication, September 2017).
The use of wood pallets would have been an interesting option since it would reduce
significantly transportation, which is an important source of CO2 emission besides being
financially expensive. However, at a rate of 2t/ha, this option only generates between $2,743 (with
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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46
a pyrolizer) and $10,757 (gasifier) carbon credit income within an optimist price scenario,
compared to a carbon credit income of $70,237 for forest residues-gasifier at the same rate and
same carbon price. This is mainly due to the limitation of feedstock requiring to extend the duration
of the project up to 18 years for a total quantity as low as 200 tones. Looking at the rate of 6, 13
and 19t/ha, the amount of yearly wood waste is not sufficient at this time to allow taking this
option. The underutilization of the equipment may considerably extend the timeframe of the
project and raise financial expenses. Besides, all wood pallets may not be proper to be used as a
soil amendment. In particular, contamination concerns may arise, especially with plywood and
painted pallets. In Canada, most pallets are manufactured from green or KD-HT material, and thus
free from chemicals (Canadian Wood Pallet & Container Association, August 2017). Rare
chemical treatments occur however, such as anti-fungal with aspen wood pallets. Certificate or
details on chemical treatment may be obtained from the suppliers. Nevertheless, used pallets may
come into contact with various chemicals during their usage, which is often difficult to control or
trace. Last, pallets from other countries might be at risk of methyl bromide treatments which are
forbidden in Canada (CWPCA, August 2017). In spite of the above, several landscape companies
have been using wood pallets (to the exclusion of plywood and treated/painted pallets) in their
mulch/biochar mix (Ecochips website, conversation with sale on Aug 24, 2017; Roth, 2017;
Thunder Bay Eco Depot website). Provenance and chemical composition of the wood pallets
would need to be determined with the suppliers before confirming their eligibility. For this option
to be viable, additional sources of wood waste should be found to meet the capacity of the pyrolyzis
unit. In this perspective, we recommend that, should further forest harvesting be required due to
possible expansion of the mine, the lumber be conserved for future restoration project.
Alternatively, a pyrolysis with a lower capacity could be used. It is not certain however that a
lower capacity pyrolyzis would result in much lower capital investment. Being in a niche market,
with a limited number consumers and suppliers, even lower capacity pyrolyzis units remain
expensive, especially since they still require a high level of research-development. Besides, labor
cost will probably remain constant as the hire of a technician for the pyrolyzis unit will still be
required.
The production of biochar from forest residue with a wood gasifier was an interesting
alternative since it could have benefited either the mine or the local community by providing
energy independence and employment opportunities. Besides this is also a very environmentally
friendly option, due to the fact that important amount of CO2 is avoided by not producing
electricity with diesel generators. However, the high cost of collecting forest residue, combined
with the low daily capacity of the machine (in term of biochar production), makes it one of the
most expensive alternatives for a low biochar output (up to 600 tons produced in almost 18 years).
This option would only be viable if low biochar amendment rates are proven to promote an
effective revegetation on mine tailings, which in the current state of research is still unclear. In
order to produce more biochar within a reasonable amount of time (less than 20 years) and increase
the daily production capacity, additional investments would be required. For instance, an
additional wood gasification unit could be installed. Such an investment would be partially
balanced by the additional benefits in the CO2 avoidance, as well as added revenue in electricity
production. In addition, the production of power from forest residues can only be viable if it
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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47
reaches a breakeven point with electricity derived from diesel generators (Stokes, 1992). To
achieve this breakeven point, more research would be needed to reduce the costs of harvest
(Stokes, 1992).
The cost of the capital is an important consideration in any biochar plant facility, however
interesting funding alternatives exist. First of all, as pointed out in this analysis, CO2 sequestrated
and avoided could result in CO2 income in the future when carbon policies are fully implemented.
Secondly, alternative funding may be available for the development of environmental- and/or
community-friendly projects. For example, building a partnership with the nearby community
could allow funding from the federal government to switch the community from diesel generated
to biomass derived electricity. In exchange the mine could receive the production of biochar at a
minimal cost and use it for the restoration of its mine tailings. In 2016, a funding of $317k was
awarded by the ecoEnergy Innovation initiative (ecoEII), an initiative funded by the Canadian
federal government, to fund the Kwadacha Community Energy Project, made from a partnership
between BC Bioenergy Network and the Kwadacha Nation, a remote First Nation community in
BC (Natural Resources Canada, 2017e). The project funded the installation of a wood gasification
plant sold by Borealis Wood Power and producing electricity for the community from wood chips
(Borealis, 2017; Fredericks, 2018). This feedstock was provided by several nearby licensed
sources, including the the Kwadacha First Nation’s woodlot licence (Natural Resources Canada,
2017e)
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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CONCLUSION
Biochar is an innovative and effective solution with undisputable advantages in terms of carbon
sequestration and associated climate change mitigation, which could benefit significantly the
corporate image of Goldcorp Inc at the Musselwhite mine.
It is considered in the literature as a low-cost tool, especially if produced locally and with local
unclaimed wood feedstock and wood waste. However, our research indicates that, in the Far North
Ontario, the high cost of the equipment and of forest residue harvesting remain a barrier for the
development of local biochar production. More research is needed to come up with less expensive
solutions that could greatly benefit both the restoration of mine tailings and the economic
development of remote communities in the Far North.
On the other hand, we found out that wood ash is an unclaimed and disregarded feedstock that is
often sent to landfill with a high financial and environmental costs, both for the companies
generating it and for the society supporting the ecological consequences. Yet, wood ash can be
successfully used for forest restoration, storing carbon in the soil, while allowing the renewed
vegetation to uptake even more carbon from the atmosphere. Because so far wood ash has been
mostly regarded as a waste, it can be obtained at very low cost or free of charge, which is an
important economic consideration. Thanks to its low cost, it may allow Goldcorp to decrease
significantly, the amount of accounting provisions set aside for their tailings restoration and
mitigation.
By showing the cost-effectiveness and feasibility of such a project, we hope to inspire other mines
in using biochar/wood ash for their restoration and mitigation strategy. More economic analysis
and research are needed in this field to promote and resolve the challenges related to the local
production of biochar for mining restoration.
Biochar-based forest restoration at a Far North Ontario mine: an economic analysis
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49
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APPENDICES
Appendix A: Literature review for biochar dosage
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Appendix B: A reel feed/mixer wagons allowing to mix and spread sand and biochar at the same
time
Source: http://www.postequip.com/farm-equipment/reel-feed-mixers.php
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Appendix C: Regulations
Biochar
Any biochar producer or supplier should undergo a registration with the Canadian Food Inspection
Agency (CFIA) which requires the submission of a “Fertilizer and Supplement Registration
Application” including the following information (Shock, 2014; CFIA, 2017):
- identification and description of all materials used in the production of the end-product, the
source and proportion of these materials (“Constituent Materials”);
- identification and description of “Other Qualities”, including physical characteristics, such as
color, phase, etc., the detailed method of manufacture, quality assurance and quality control
forms;
- the Signing Authority;
- the results of Test Analysis;
- a Safety Rationale;
- a Proposed Marketplace Label (if any);
- the Registration Fee ($350 CAD);
- Fee for Safety Data Review ($500+HST CAD)
More details about the application process and categories can be found in Shock (2014).
Moreover, any research applied to biochar, as “any product that are not registered or contain a
novel trait”, requires an “Application for Research Authorization” from the CFIA “prior to the
release into the Canadian environment for research trial purposes” (CFIA, 2017 and P. Wher,
CFIA, Pers. Comm. 2017).
As pointed earlier, a processing time of 1 year is necessary after submission of the application
(Shock, 2014).
Wood ash
The transport of wood ash requires approval from the Ministry of the Environment and
Climate Change (MOECC). The transport must use a “waste management system” defined under
the Environmental Protection Act (Hannam et al, 2016), which requires either
1) to register with the MOECC under the environmental Activity Sector Registry as a « Solid Non-
Hazardous Waste Management System » (See Environmental Activity & Sector Registry (EASR)
User Guide - Non-Hazardous Waste Transportation Systems for registration process & see Ontario
Regulation 351/12 for criteria to meet regulation),
Or 2) submit an Environmental Compliance Approval (ECA) application for a “Soil Conditioner
Waste Management Sytem” (see Guide to Applying for an Environmental Compliance Approval)
Or 3) use a company that already has an ECA from MOECC to transport wood ash (Hannam et al,
2016).
The storage and application of wood ash on non-agricultural site also involves obtaining
an ECA from MOECC as per the Environmental Protection Act (see Guide to Applying for an
Environmental Compliance Approval for details). Since there is no specific guidelines, an approval
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will be made on a case-by-case basis. (Consult Thunder Bay OMECC local District office at 1-
807-475-1205).
In addition, before any approval for land application can be obtained, the following analysis
will be needed:
- Wood ash analysis for the concentration of 11 trace metals (arsenic, cadmium, chromium, cobalt,
copper, mercury, molybdenum, nickel, lead, selenium and zinc). If the wood ash exceed allowable
limits, then it will not be eligible for use a soil amendment
- A chemical analysis of the receiving soil
- Additional analysis (PH, moisture content, etc.) as required
Harvesting in the Far North Ontario
The area that could potentially be harvested around the mine is supervised by the Sioux Lookout
District, Ontario Ministry of Natural Resources and Forestry (OMNRF). A step-by-step process is
described below following the recommendations of this District (B. Everatt, OMNRF Sioux
Lookout District, pers. Comm., August-December 2017)
A formal, written application must be submitted to the (OMNRF), Sioux Lookout District, by the
Signing Authority of the project.
The application must include:
• A detailed map showing the location where the harvesting is to take place and the location
where the mobile pyrolysis unit would be located.
• The size of the area to be logged (shape file of the area is preferred)
• A description of trees to be harvested (live/dead, degree of char, etc.)
• A description of how trees are to be utilized ( will all parts of the tree be utilized, will
slash/debris be left on site and if so how will the slash/debris be dealt with, are harvested
trees to be transported off site and if so where)
• A description of the type of equipment to be used in the logging process
• The time period when logging would take place
• The reason/purpose of the logging (full project description)
Once the application has been received, the OMNRF will begin their review process to
determine if what is proposed can be approved and, if approved, what authorizations/permits
would be required.
The review would include the following steps:
• A review by the Far North Branch to determine if proposed project can proceed
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• A review of fish, wildlife, and species at risk potentially impacted by the proposed project
(30 days processing time)
• A review of timber values that may be impacted by the proposed project
• A review of the Lands related values that may be impacted by the proposed project
• A review of any Land Use planning initiatives that may be impacted by the proposed
project
• A notification/consultation with all First Nations who may have concerns/be impacted by
the proposed project (6-7 weeks processing time)
• The determination of any Crown charges that would be applied to the wood being harvested
Appendix D: Pictures of the burnt forest near Musselwhite
(Credit photos: Jasmine William, August 2017)
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Appendix E: Equipment prices
All prices are in CAD, conversion rates as of August 3rd 2017 Bank of Canada
* the pyrolyzis unit was purchased by Haliburton Forest, but the original supplier name is
unknown.
** Other cost includes rental of a truck loading station + installation cost. They are not taken into
account in our LCA for simplification purposes.
*** we only obtained shipping rate for P-Fice/Bioforcetech, so we estimated other shipping rates
based on the $-km rate for this one.
Wood-chipppers:
* The wood chippers considered in this analysis are the PTO chipper (HM6-300) for forest residues
and the SPE-1300 Pallet Chipper for the wood pallets.
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Appendix F: calculation of crown forest charges
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Appendix G: an example of a 40ST container sized pyrolyzis unit
Source: http://www.biogreen-energy.com
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Appendix H: Decision Matrix
Notes for Appendix H:
For simplification purpose, we averaged the cost of harvesting forest residues between NES regular crown charge and Bio-product
salvage rate. For the same motivation, saw-dust and woodchips prices were averaged in a single woodchips/sawdust average price.
Areas in grey show non-eligible options (due to time constraint).
Cells in red show the worst performance and in green the best result.