Today’s ForestsTomorrow’s Markets

March 31/09 to April 1/09Sault Ste Marie, Michigan

Global Trends in the Forestry Sector

By Frank DottoriFADCO Consulting Inc.

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1.0 Status of Today’s Forests

1.1 Canada

Eastern – Overcut

Western – BC-Beetle

Central – Manitoba – Excess/soft wood

– Saskatchewan – Excess/hard wood

– Alberta – Excess/hard wood

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1.2 US

West – Limited/ENV.

North East – Overcut

South East – Balance

Central - Overcut

1.0 Status of Today’s Forests

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1.0 Status of Today’s Forests

1.3 Europe

Scans – Short Fall

West – Balanced

East – Excess/Old

Russia – Excess/Old

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1.0 Status of Today’s Forests

1.4 South America

Chile – Balanced

Brazil – Plantation Growth

Other – Plantation Growth

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1.0 Status of Today’s Forests

1.5 Asia

South East Asia – Plantation Growth

Indonesia – Overcut

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1.0 Status of Today’s Forests

1.6 General

World will move to plantation forests with hybrids. Sam, Sea

Little growth in North America and Europe

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2.0 Today’s Markets

2.1 Lumber

Mostly North America and Northern Europe for housing

Little in rest of the world due to climate, culture, insects

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2.0 Today’s Markets

2.2 Today’s Markets

Building products, Engineered wood growing as above

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2.0 Today’s Markets

2.3 Pulp and Paper News

Continuing decline in usage/capita in developed countries

Electronic/high tech age

Growth by volume as standard of life/education improves – 2nd and 3rd world.

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2.0 Today’s Markets

2.4 Personal Products

Continued growth as quality of life improves

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2.0 Today’s Markets

2.5 Packaging

Growth driven by health and quality concerns

Thin/Less/Recycle

Limits tonnage not surface

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3.1 – Plantation Type Forests in South America and South East Asia

Supply commodity Pulp

3.0 Tomorrow’s Forests

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3.0 Tomorrow’s Forests

3.2 Manage Forests Europe/North America

Environmental Pressures

Certification FSC other

Multiple use

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3.0 Tomorrow’s Forests

3.3 Climate Change

Species change in natural forests

Harvesting issues – Northern Canada

Disease

Insects

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3.0 Tomorrow’s Forests

3.4 New Vision

Solar Powered – Natural

Carbon Cycle/No GHG

Renewable, Sustainable

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3.0 Tomorrow’s Forests

3.5 Cost of Wood

Fossil fuel alternative

Will increase

Energy Equivalent

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4.0 Tomorrow's Markets

4.1 - Lumber

Will remain most profitable sector for North America and Europe and grow moderately

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4.0 Tomorrow's Markets

4.2 Engineered Wood

Will grow with increase use of Hard Wood species

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4.0 Tomorrow's Markets

4.3 Pulp and Paper

Moderate to slow world growth

Decline North America and Western Europe

Growth South East Asia but will be moderate due to technology

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4.0 Tomorrow's Markets

4.4 Tissue/Packaging

Continued Growth

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5.0 Tomorrow’s Potential Markets

5.1 Forests are Solar Energy Power

Knowledgeable Environmentalists and Politicians will soon recognize this (solar cells, batteries, pollution)

Replacement for fossil fuels with no GHG effect

Renewable/Sustainable/Come with battery/Storage

Industry needs to exploit virtues of forests

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5.0 Tomorrow’s Potential Markets

5.2 Energy

Biomass to electricity and heat power

Technology available need equivalent support to other sources

Wood to gas/liquid fuels

Still technical and economic challenges

Rapid progress, lots of R&D dollars spent (3-5 yrs)

Big players

Be careful

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5.0 Tomorrow’s Potential Markets

5.2 Energy Cont’d

Biomass to Liquid Fuels

Very Difficult at technical/economic level (5 to 10 yrs)

Biomass to pellets

Technology and economics acceptable depending on alternative fuels, cost and legislation (now).

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5.0 Tomorrow’s Potential Markets

5.3 Wood to Biochemical's

Lignin, Phenols, Acidic Acid, Alcohols, Polyethylene etc.etc.

Challenging technically and economically (3-10 yrs)

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5.0 Tomorrow’s Potential Markets

5.4 Will it Happen

Yes but watch the hype

Major Challenges

Lots of dollars committed

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5.0 Tomorrow’s Potential Markets

5.5 Do We Need It

Yes, if we believe GHG threatens planet

Nuclear and Forests are the major options

Forests are best by far

Problem only 10% of solution

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5.0 Tomorrow’s Potential Markets

5.6 What is Greenfield Doing

Two prong approach

Thermo chemical – Gasification

Biochemical – enzymes/yeast

Objective: Transportable fuels and Biochemical’s

Challenging but progressing well

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6.0 Conclusion

Life comes from the sun and the earth

Cellulose (trees and vegetation) are the carbon cycle or life cycle

Forests will be Forever as long as the planet exists

Our survival depends on forests

Lets protect them, use them wisely

Help save the planet

Solve economic issues today by planting trees for the future