New Forest Products

2008 Provincial Leadership Forum

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TOPIC SPONSOR

Joan Elangovan, M.Eng.Assistant Deputy Minister

Ministry of Forests and Range

Joan Elangovan was appointed Assistant Deputy Minister for Corporate Services in January 2007. Her portfolio includes planning, policy and legislation; financial control and budget management; organization development; and information management and technology. Recently she has also become the executive lead for Value-Added Strategies.

Joan joined the BC government in 1992. She worked in senior management positions in the social and economic development sectors, most recently, in the Ministry of Health, and the Ministry of Attorney General. Prior to joining the BC public service, she worked for Ontario Hydro. Joan has a Master of Engineering degree from the University of Toronto.

In her spare time, Joan enjoys reading, music and travel. Joan and her husband live in Victoria.

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COMPETITIVE ISSUES

John TalbotPerformance Management, Strategic

Business Development

FP Innovations

John Talbot has over thirty years of managerial experience in manufacturing, principally in the Province of British Columbia, Canada. Recent operating experience has been primarily in the wood products sector. John has intimate and practical knowledge of structural and value added wood manufacturing productivity issues, raw material supply, and strategic business planning / implementation.

John, formerly the Executive Director - Value Added manufacturing at the Crown Corporation of Forest Renewal BC, has had specific careers in labour relations and sales and marketing - developing / and implementing of export marketing programs.

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ENGINEERED WOOD PRODUCTS

Jean A. Cook, Ph.D.Manager Composite Products,

Resource GroupFP Innovations FORINTEK

Jean Cook is currently Research Manager of two departments: Composite Products and Resource Characterisation.

Jean holds a Ph.D. in Statistics from the University of Waterloo and joined Forintek in 1984 specialising in risk analysis – as applied to forest resource characterisation for value, product manufacturing process control and engineering properties of solid wood products.

As part of the management team since 1990, Jean has enjoyed working in the multidisciplinary teams formed by the sector to resolve various technical trade and regulatory issues in international markets.

She is currently the FPInnovations Board member of the Canadian Lumber Standards Accreditation Board and the Board member of the NSERC Strategic Network: ForValueNet.

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NEXT GENERATION PULP & PAPERNANOCRYSTALLINE CELLULOSE

BIO-REFINING

Gail Sherson, M. Eng.Director, Vancouver Laboratory and

Program Manager Fibre Supply and QualityFP Innovations PAPRICAN

Gail Sherson is with FPInnovations’ Paprican Division where she is Director of the Vancouver Laboratory and Manager of the Fibre Supply and Quality Research Program.

Gail is a graduate of the University of British Columbia with degrees in Chemical Engineering and Pulp and Paper Engineering. Gail joined Paprican almost three years ago, bringing extensive industrial experience with International Paper, Champion International, Nexfor, Fletcher Challenge and MacMillan Bloedel.

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NEXT GENERATION BUILDING SYSTEMS

Erol Karacabeyli, P.Eng.Manager Building SystemsFP Innovations FORINTEK

Erol Karacabeyli is a Registered Professional Engineer in British Columbia, Canada, and has over twenty years experience in the timber engineering research field. Holding two Masters Degrees he is a well-known specialist on seismic performance of timber structures, duration of load effects on lumber, panel and engineered wood products, and connections.

Erol is currently the Manager of the Building Systems Department in Western Laboratory of Forintek. Erol is an influential member in many national and international codes and standards committees whose mandates encompass the safety and reliability of wood structures.

Erol made significant contributions in wood engineering field, and published his findings in over 70 publications.

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Project Director

Werner HofstätterProject Director

Corporate Services DivisionMinistry of Forests

Werner Hofstätter holds an Honours Commerce Degree, a CSC, and has more than 25 years of experience working and consulting with all sizes of private and public sector organizations. He is currently Project Director of Value-Added Strategies in Corporate Services. He has held a variety of senior management and consulting positions in some of Canada’s largest organizations. He has worked with many industry sectors including transpor-tation, financial services, logistics and pulp & paper.In addition to publishing several articles on “Value-Based Management”, he has lectured in Finance at Carleton University. He is also a certified commercial diver, a trained volunteer fire-fighter and level III first responder.

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INNOVATIVE FOREST PRODUCTS

MAXIMIZING VALUE FROM

FOREST RESOURCES

“…it is a time for us to look to the future of forestry. Maybe it looks a little different than the forest industry that I remember as a kid and the forest industry that I

worked in the 1990’s.”

Hon. Pat Bell, National Forest Day

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OBJECTIVE

1. Update you on some of the latest innovations in forest products and technologies

2. Generate discussion on what role, if any, the Government should play in creating an environment that encourages innovation and commercialization

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TODAY’S AGENDA

1. ENGINEERED WOOD PRODUCTS

2. NEXT GENERATION BUILDING SOLUTIONS

3. BIO-REFINING etc.4. COMPETITIVE ISSUES

• QUIZ, DISCUSSION and PRIZES

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Engineered Building Products

What are they?Construction materials used for structural elements in buildings.

Successful Engineered Products have (1)demonstrated and reliable

performance in service and(2)are competitively priced

Examples are steel, concrete and…

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Structural grades of lumber & panels that have recognized engineering properties

2004

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The definition in the wood industry is:EWP = Composite wood substitutes for solid wood

Better use of small and low grade logs (all species)

Parallam™

Veneer Strip Lumber

Oriented Strand Lumber

LaminatedVeneer Lumber

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Typical Wood Composite Manufacturing Process

Mat formingStranding

(*Courtesy of SBA)

Little resin used(<10%)

Resin blendingDrying

Very high Temperature used(150 – 350 0C)

Heat

Hot pressing*

(up to 220 0C)

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Reliability and Cost CompetitivenessProcess Interactions impact EWP Demand

?ALBERTA

RESEARCHCOUNCIL

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• Moisture Meters in Dryers and Forming Line

• Weight Scale in Forming Line

• Thickness Gauges in Finishing Line

… START WITH SENSOR

TECHNOLOGY…

ALBERTARESEARCH

COUNCIL

Solution: Look inside the process

Relate process parameters to end product attributes

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On-line measurement of wood MC to reduce energy costs and reduce plywood delamination

$750,000 per mill,per year

Innovate to both reduce costs and improve end product attributes

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This poster provides several examples of other substitutes for solid lumber, timbers and beams

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Novel concepts – « open web studs »

P

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An EWP Success Story

OSB has captured 85% of the North American new home sheathing markets from plywood.

Why? It is now perceived by the NA home construction industry as a lower price product that performs as well as plywood in home sheathing.

It took 20+ years for OSB to capture significant market share from plywood in sheathing markets

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Cook Observation

There is no shortage of new ideas for wood products and systems that COULD be used in construction

Which have the potential to be perceived by the construction industry as viable substitutes for concrete and

steel?

I believe these are the “engineered wood products” that will attract sustained investment to the sector

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From commodity productsto building solutions

Commodityproducts

Commodityproducts

Solutions Solutions

SystemsSystems

Components Components

Knowledge

Production & Distribution

Production & Distribution

Engineering &Process development

Engineering &Process development

Support the design teamSupport the design team

Conception & engineering

Conception & engineering

Services

Integrated Systems

Roofs

Walls Flooring

Indoor / Outdoor Systems

Lumber Plywood OSB

LVLPSL

Paneling & Siding

Fencing &Decking

Lars Sandberg, Timwood

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Opportunity for Wood: Non-Residential Buildings

Prince George Airport Courtesy of Equilibrium Consulting

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% of area

19%8%

74%

49%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% of buildings

Additional that could be wood

Currently are wood-frame

US Non-Residential Buildings - Current and Potential Market Share

US Non-Residential Buildings - Current and Potential Market Share

Source: WPC 2006Source: WPC 2006

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Wood-Based Building Systems

• Best bets• 6 Storey Light Wood Frame Construction

(currently limited to 4) • 6-10 Storey Heavy Frame Buildings with

Concrete Core (new)• Cross Laminated Timber Applications (new)• Roof and Floor Applications • Non-structural walls in Concrete & Masonry

Buildings• Post Disaster/Low Cost Shelter

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First Best Bet: 6 storey Light wood-frame construction in Canada (currently limited to 4)

• BC Premiere’s support made a

difference

• FPInnovations and CWC are

supporting BC Building and Safety

Policy Branch in pursuing regulatory

changes to increase the limit on

wood-construction from four to six

storeys

• Validation by US/Japan/Canada

earthquake simulation test (FII

support) (NEESWood) of a 6-storey

wood-frame building (test specimen

is built BC lumber)

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Second best bet: 6-10 storey Heavy Frame Buildings with Concrete Core

● Developing several design concepts for use of wood in mid-rise construction, including hybrid wood/concrete and wood/steel

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Second best bet: 6 storey Heavy Frame Buildings with Concrete Core

Owner: CSN FONDACTIONArchitect: Gilles Huot, GHA Atelier d’architectureStructural Engineer: Bureau d’Études Spécialisées inc.

Demonstration building in Quebec City;• Based on the objectives of Quebec’s use of wood in the non-residential sector policy (May 2008)• Has received go ahead from Régie du bâtiment pending a few modifications• 60 000 ft2 in total• Above ground structure combines concrete core and heavy glulam• Below ground parking garage in

reinforced concrete ( 53 parking spaces)• Total Height; 22.8 m• Built under the NBCC 2005• LEED GOLD

• Planned occupancy Fall 2009

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Third best bet: Cross Laminated Timber

Massive wood plates, X-lam or Jumbo plywood

Murray Grove Building, London, GBWorld Tallest Wood Building

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Cross Laminated Timber

Elevator shaft or stair case with CLT

Courtesy of KLH

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Fourth best bet: Roof and Floor Applications

Richmond Speed Skating Oval

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Fourth best bet: Roof and Floor Applications

Courtesy of CWC WoodWorks

• High Strength to weight ratio makes wood systems very suitable

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Stockholm 2004 Wood Walls in Concrete Building

Fifth best bet: Non-structural walls in Concrete & Masonry Buildings

Not common in North America

Sixth best bet: Post-Disaster/Low Cost Shelter

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Recent disasters – houses destroyed

• 2004 Tsunami 150,000 homes• 2005 Pakistan earthquake 500,000 homes• 2005 Hurricane Katrina 275,000 homes• 2006 Indonesia earthquake 140,000 homes

Earthquake

2006 JavaHurricane

2005 USA

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Wood Framing – Proven Earthquake Performance

Undamaged houses – N. American framing

Hyogo-ken Nambu (Kobe) quake, 1995

Post WWII House Collapsed

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Earthquake simulation test in USAEarthquake simulation test in USA(showing no structural damage)(showing no structural damage)

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CONCLUDING REMARKS

• Wood-based building systems offer a lot of potential in new applications

• FPInnovations launched an initiative “Next Generation Building Solutions” • Funded largely by NRCan• Multi-disciplinary collaborative research with design

community• A large component in wood-based composites • Designed to play a major role in increasing use of

wood in residential and non-residential construction

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Next Generation Building Solutions

Example: FPInnovations Vancouver Laboratory

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Next Generation Pulps & Papers Innovation & technology that

take full advantage of Canada’s unique fibre characteristics

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1. Paper giving instant visible indication of pathogens.

2. High speed manufacture: coating or printing.

Intelligent Paper: SafetyBio-reactive Paper Products

SARS mask: detect viral contamination deactivate the pathogen protect the user

Sentinel Project

University Partnerships

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Advanced Bioproducts – Nanocrystalline cellulose

• Smallest physical sub-unit of cellulose

• Crystallite dimensions, 200 nm long, 10 nm wide

• 8,000 times thinner than a human hair.

• FPInnovations Lab Process: Production, 2 kg/week

• Ready for 1 tonne per day NCC demonstration plant

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amorphous region

acid hydrolysisH2SO4

TEM image of nanocrystals

crystalline region

microfibril :

Nanocrystalline Cellulose (NCC)

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Nano-Crystalline Cellulose (NCC)

OpacityColour

Porosity Stronger than Steel

Nano-Crystalline Cellulose (NCC)

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NCC in the Everyday World?

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The forest biorefinery:

• An integrated set of processes• Multiple products, a single site:

• Solid wood, panels• Pulp, paper• Heat, power• Transportation fuels• Chemicals

• Maximize the value from each component of the feedstock

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Potential pathways to new products

LigninNovel

productsChemicalprocesses

Hemi-cellulose Ethanol,

othersFermentationprocesses

Synthesisproducts

Bark,sludge

Residues Gasification,pyrolysis

PolymersChemicalprocesses

Novelproducts

Sludge,effluent

(Bio) chemicalprocesses

Pulpmill

Pulp, Paper

Chips ConventionalprocessesCellulose

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Main pathways to fuels and chemicals

• Lignin• Resins: $400+ per tonne of lignin• Substitute for carbon black in tires: $1000+ per tonne?• Carbon Fibres

• Hemicellulose• Ethanol, lactic acid:

• $300 per tonne of hemicellulose• Fuel, plastic precursor

• Xylose, Xylitol (sugar substitute)

• Polymer precursors: • $700+ per tonne

XXX

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Thermo-chemical processes

• Gasification• Generates a combustible gas• Burn to displace Bunker C or natural gas• Synthesize hydrocarbon products

• Methanol• Synthetic Diesel

• Leaders in this field: Enerkem, Nexterra

• Pyrolysis• Generates a combustible liquid• Burn to displace Bunker C• Extract chemicals, food products

• Resins, phenolics for board grades• BBQ sauces, flavourings

Both processes produce fuels or

synthetic chemicals

Both can operate on low value, mixed

residues

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Boiler Replacement with a Gasifier at Kruger Products in New Westminister

FPInnovations Partnership with Nexterra

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Optimize Current & FutureProduct Streams

Time

Introduction

Growth

Maturity

Decline

Stop and Fix

New launches

Pro

fita

bili

ty

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The Real Measure of Environmental Impact

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The zero-carbon house?

29 tonnes of CO2 are captured in a typical house. Offsets five years of driving the family car.

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RO

CE

fo

r C

anad

ian

Pro

du

cers

%

Canadian Forest Products Industry

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DISCUSSION

QUIZ

??? ?

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Engineered Wood

Products

Building Systems

Bio-Refinering

Key Messages

ONE

TWO

THREE

FOUR

FIVE

ONE

TWO

THREE

FOUR

FIVE

ONE

TWO

THREE

FOUR

FIVE

ONE

TWO

THREE

FOUR

FIVE

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

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What type ofengineered wooden beams are capable of

replacing steel beams?

Glulam, Parallel Strand Lumber, PSL

or Parallam®

EWP – Question #1

Back

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What % of plywood that has been replaced by

OSB in new North American residential

construction?

About 85%

EWP – Question #2

Back

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Which 2 continents use the majority

of the world’ssoftwood sawn lumber?

North Americaand Europe

EWP – Question #3

Back

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What percentof a typical EWP

is resin? Less than 10%

EWP – Question #4

Back

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What continent leadsthe world in EWP

production for light-frame construction?

NorthAmerica

EWP – Question #5

Back

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Which wooden floor and wall panels have passed the 45 minute burn test?

X-Lam, Cross-Lamor

“Massive Plywood”

Building Systems – Question #1

Back

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How many stories tallwill light wood,

residential buildings soon be allowed?

Up to six stories

Building Systems – Question #2

Back

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Approximately what percent of US non-

residential construction could be wood-based?

More than90 percent

Building Systems – Question #3

Back

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In which city is the world’s tallest wooden

building? London, England

Building Systems – Question #4

Back

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Approximately how many homes have

been destroyed by natural disasters

since 2004?

More thanone million!( 1,065,000 )

Building Systems – Question #5

Back

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How many times thinner than a human hair is a

Nanocrystalline cellulose particle?

Bio-Refining – Question #1

8,000 timesthinner than a

human hair

Back

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From whatprocess stream

can lignin be extracted?

From the black liquor created in the chemical pulp

process

Bio-Refining – Question #2

Back

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Name one of the products that can be

manufactured using the lignin extracted from

black-liquor?

Carbon fibres, “Carbon Black”,

others

Bio-Refining – Question #3

Back

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Who are the two leading companies

in the field of gasification?

NexterraAnd

EnerKem

Bio-Refining – Question #4

Back

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Name 3 types of fuel that can be

derived in the bio-refining process?

Bio-ethanol, bio-diesel and

syngas

Bio-Refining – Question #5

Back

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What can you do to promote getting more

value from the forest?

Group Discussion

Key Messages – Question #1

Back

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Does anything you currently do make it

harder for industry to extract more value from

the forest?

Any other views?

Key Messages – Question #2

Back

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Given what you have heard today - what role should the

Ministry of Forests and Range

play in fostering this industry?

Key Messages – Question #3

Any otherfeedback?

Back

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What will you dodifferently or think

differently as a result of today’s presentations?

Group Discussion

Key Messages – Question #4

Back

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What intrigued you the most from the

presentations you heard today and why?

Key Messages – Question #5

Anybody Else ?

Back

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Special Thanks To:

FP Innovations ForintekPaprican