Increasing Pine Terpene Supply

Increasing Pine Terpene Supply
Gary Peter, Ph.D.
Professor
Forest Genomics Laboratory
School of Forest Resources & Conservation
University of Florida
[email protected]
Pine Chemicals Industry Supply
In 2010, US industry shipped
$1.92 billion in products & spent
$940.8 million (49% of shipment
value) on raw terpene supplies
Economic Benefits of the Pine Chemicals Industry, 2011,
Am. Chem. Council
~ Regional production
Gum
CTO
CST
Asia
92%
-
-
S. America
8%
6%
2%
Europe
-
40%
35%
N. America
-
50%
60%
Expanding Pine Chemicals Industry Is Limited By Supply
• Supply of terpenes constrain
industry growth not market
demand
– Decline in US pulp mills limit CST
& CTO supplies
• Since early 90’s, CTO supply has
decreased by >15%
• Competition for pine pulpwood for
OSB, pellets, biofuels?
– Change in pulping processes
affecting CST & CTO yields
– Chinese labor costs & number of
“tappable” trees negatively
affecting oleoresin supply
– China building internal processing
capacity
600
60
500
50
400
40
300
30
200
20
100
10
0
Years
Yield (m3/ha)
Silviculture & Tree Improvement Innovations have
Increased Harvest Volumes & Shortened Rotation Time
0
1940 1950 1960 1970 1980 1990 2000 2010
Wood Cost & Abundance
Total Yield
Rotation Age
Southeastern Forest Products is the
Largest Producer & Processor of Biomass
• Global supply leader of industrial wood products
– 15% of total / 25% of pulp & paper
•
•
•
•
Produces > 60% of supply of US wood products
Produces 75% of bioenergy in US in pulp mills
Wood pellets for electricity increasing rapidly
Recovers >400,000 Mg/y terpenes as co-product
Structural Changes Affecting Southern Pine Supply
• Changes in southern pine wood markets
– Recession in housing market dramatically
reduced demand for sawtimber
• Extensive thinning to wait out low prices
– Shift in sawtimber production from
Western CA to SE US
– P&P industry consolidation declining capacity
• Linerboard production is bright spot
– Engineered wood capacity stable
– Wood pellet mill capacity increasing
– Biofuels?
• Southern pine landowners largely independent from processing industry
– Emphasis on diversifying sources of revenue
• HBU - land development
– Land churn
• Conservation easements, leases, pinestraw, ecosystem services?
– REIT & TIMO structures limit research & development investment
• Limited innovation across supply chain & processing sector
– R & D spending lowest of any industry
Southern Pines: The Renewable Biomaterials,
Chemicals & Bioenergy Star
SUSTAINABLE
• Growth exceeds removals
• High harvest index
– Energy positive
– Carbon negative due to low inputs
• Largest biomass supply chain in
the world serves large markets
for “traditional” lignocellulose
products
• High value markets for mono- and
diterpenes collected as coproducts
• Wood & wood pellets for
electricity
• Lignocellulose biofuels from pine
being commercialized?
BIOLOGICALLY FEASIBLE
•
•
•
•
Grows on land not suitable for food
production
Year long carbon accumulation
Established growing systems based
on robust empirical knowledge
Early stages of domestication
– 3rd generation of breeding
– Genetic engineering & clonal
propagation methods developed
•
Naturally synthesizes & stores lipids
& terpenes in wood
– Inducible synthesis of terpenes in
wood
– Wood terpene content as high as
40% of wood dry weight
– Conserved biochemical pathway for
synthesis of terpenes
– Increased terpene synthesis good for
insect protection
– Pinene good for cloud formation
Opportunity: Tapping of Existing Slash
Pine Estate in US
• Genetically improved trees with good
management grow fast
• 5 million acres of slash pine in N. FL & S. GA
• Housing market recession has led to more
thinning of stands to prolong harvest and
promote future saw timber yields
– More large trees than recent history
• Landowners have strong incentive to obtain
value while trees are growing
Likely Scenarios for Oleoresin Tapping
of Slash Pine Plantations
Site
Indexa
(m)
Planting
density
(trees ha-1)
Timber production
21.4
1500
R1
Timber and oleoresin production
21.4
1500
22.8
1500
R2
Timber and oleoresin production with two-fold
increased oleoresin yield and higher tree growth
through genetics
R3
Timber and oleoresin production in high forest
productivity sites
25
1500
Timber and oleoresin production with decreased
planting density
Timber, pinestraw and oleoresin production.
Pinestraw raking between age 8 and 15.
21.4
1000
21.4
1500
Timber and two-fold increase in production due to
genetics
21.4
1500
Scenariosb
Baseline
R4
R5c
R6
Description
a Height
reached by the stand's dominant and co-dominant trees at a reference age of
25 years. bAll scenarios: weed control prior establishment, banded weed control at age
1, fertilization at ages 5 and 15.c Weed control at ages 7,11 and 15. Fertilization at age
11.
Susaeta, Peter, Hodges, Carter, 2014, Biomass & Bioenergy
• Growth and yield models for slash pine stands
reported by Pienaar et al. (1996) and modified
to allow fertilizations (Bailey et al. 1999) and
thinnings (Bailey et al. 1982, Pienaar, 1995)
were used to determine the merchantable
volume of sawtimber (st), chip-and-saw (cns)
and pulpwood (pw). The stem diameter at
breast height and merchantable top diameter
used to define the three forest products were
29.2 and 17.8 cm for st, 19.1 and 15.2 cm for
cns and 11.4 and 7.6 cm for pw.
• Based on Hodges and Johnson (1997) and
Hodges (2000) the annual borehole oleoresin
production is calculated as function of the
diameter at breast height:
– 𝑣𝑟 = 𝑛(0.086𝑑𝑏ℎ −0.826)
• In this equation, 𝑣𝑟 is the oleoresin yield in
kilograms (kg) per hectare (ha), 𝑑𝑏ℎ is the
average tree diameter measured at breast
height (cm) and 𝑛 is the number of trees per ha.
The expression between parentheses on the
right hand side represents the oleoresin yield
per tree.
• We consider that the borehole oleoresin
tapping is conducted for a period of three years,
and the initial age of tapping 𝑡𝑟 is set when the
𝑑𝑏ℎ ≥ 23 cm.
Present Value of Tapping Pine Trees for
Oleoresin with Current Costs & Prices
Scenario
Site
index
Stocking Age of Rotation
tapping
age
𝑡𝑟- 𝑡𝑓
Timber
mass at
harvest
Oleoresin
mass
R
Present values over one rotation
Oleoresin
Timber
Pinestraw
Total
𝑃𝑉𝑟
𝑃𝑉𝑓
𝑃𝑉𝑠
𝑃𝑉𝑡
Mg ha-1
Mg ha-1
23
327
n.a
21-23
23
341
3.0
190
1826
1500
19-21
22
371
3.05
213
25
1500
17-19
22
420
3.11
R4
21.4
1000
17-19
22
275
R5
21.4
1500
20-22
23
R6
21.4
1500
21-23
23
m
Tree ha-1
..……years…….
Baseline
21.4
1500
n.a
R1
21.4
1500
R2
22.8
R3
..…………………..US$ ha-1………………
n.a
1796
n.a
Land
Increase in
expectation 𝐿𝐸𝑉 from
value
oleoresin
tapping
𝐿𝐸𝑉
%
1796
2692
n.a
n.a
2016
2950
9.6
2384
n.a
2597
3892
8.9
240
3391
n.a
3631
5447
7.2
2.15
166
1703
n.a
1870
2802
9.7
366
3.04
202
2176
727
3105
4544
4.6
341
6.00
379
1826
n.a
2208
3228
19.9
The average stumpage prices for southern pine sawtimber, chip-and-saw, and pulpwood between 2008 and 2012 were
assumed as $35 m-3, $21 m-3, and $12 m-3, respectively (Timber Mart South, 2008-12). The price of pinestraw was
assumed to be $0.5 bale-1 (Susaeta et al. 2013). Oleoresin prices for landowner $0.19 – 0.40 kg-1 (Hodges, unpublished).
Table above reports values at $0.19 kg-1
Susaeta, Peter, Hodges, Carter, 2014, Biomass & Bioenergy
Oleoresin Tapping More than Offsets Reductions
in LEV Incurred by Extending the Rotation Past
Optimal Harvest Age
•
•
Optimal rotation age occurs when LEV is maximal. Returns decrease when harvesting is
delayed.
Modeled the ability of oleoresin tapping to offset declines in LEV from loss of timber
value when the rotation is extended
LEV declines by 10% 3-4 years after optimal harvest age due to loss in timber revenue
and increased costs associated with interest
LEV ($/ha)
•
6000
5000
4000
3000
2000
1000
0
LEVf
LEVr
LEVps
369 1010
5078
4580 1064 981
319 724
296
668 555 1112
278 495 3574 3225
3184
2672 2423
2588 2672 2298
Scenario-Harvest Age
Susaeta, Peter, Hodges, Carter, 2014, Biomass & Bioenergy
Advantages to Landowner for
Terpene Enhanced Pines
•
•
New product •
with large
•
market
TEP
Existing pine chemicals industry in SE
High demand for terpene feedstock
Limited global supply
Efficient conversion of pinene to jet fuel
Early
revenue
• Living trees tapped before harvest
• Install taps or sell tapping rights
• Synergy with pinestraw raking
Greater
management
flexibility
• Terpene revenue offsets loss from
late harvest
• Offsets revenue loss from lower
initial stocking
• Potential for higher price for
energywood and pulpwood
Synergy with
existing
market
• Tree growth and terpene yield are
positively correlated
• Tapping does not affect final yield and
wood quality
Potential Tree Features Correlated
with Oleoresin Flow & Yield
• Morphology
– Stem diameter
– Crown size
– Radial growth rate
• Anatomy
– # of longitudinal & radial
ducts
– Diameter of ducts
– Interconnectivity of
ducts
• Physiochemical
– Mono/di ratio
– Pressure on oleoresin in
ducts
– Frictional resistance to
flow on walls of ducts
– Oleoresin viscosity
Increasing Pine Oleoresin Supply
Genetics
• Developing cost effective
borehole tapping
• Tree size & health with
stimulators
– Age
– Stand treatment history
• Thinning
– Fertilization
• Pinestraw raking
– Fertilization
– Chemical inducers
• Methyl jasmonate
• Ethephon
• MeJ + Ethephon
– Second year tapping of MeJ
treated trees
• Experimental design detects
interactions between stand and
tree features with inducers
Plantation
Tapping
Oleoresin
Gum
Turpentine
Rosin
St. Florida & DOE/ARPA-E
Oleoresin Yield Data 2013 (11 weeks)
Site
Mean
DBH
(cm)
Range
DBH
(cm)
Mean
Crown
Height
Mean
Crown
Width
(m)
Mean
Yield
(kg/tree)
22
Thinned @
16
8.5
5.912.4
17%
3.58
0.70
16
Thinned @
14
7.8
5.810.6
20%
3.68
0.69
Unthinned
7.3
5.710.6
18%
Control
3.17
600
700
688.2
680
22
16
14
400
200
0
Site
0.68
MeJ
1200
1000
800
600
400
200
0
884.3
MeJ
MeJ+Eth
489.6
412
Control
943.2
Ethephon
Treatment
Oleoresin Yield (gm/day)
14
800
Treatment Mean
Oleoresin yield (gm/tree)
Silviculture
35
30
22
25
20
15
10
5
0
1-16
17-34
Days
34-72/90
Oleoresin yield (gm/tree)
Age
Mean Oleoresin yield
(gm/tree)
Summary of Sites
16
14
1200
1000
800
600
400
200
0
Control
Ethephon
MeJ
Treatment
MeJ+Eth
Tree Features Correlated with Oleoresin
Flow & Yield with Borehole Method
•
Phenotypic Correlations
Significant main effects
– Site, chemical treatment, DBH, & crown
width/volume
•
Significant interactions
– Site with chemical treatment, DBH, &
Crown width/volume
– Chemical treatment with crown
width/volume
*
*
*
*
*
*
*
*
*
DBH
Height
Crown
Volume
DBH
Height
Crown
Volume
Oleoresin
yield
1
0.451
0.633
0.201
1
0.420
0.189
1
0.213
Increasing Pine Wood Terpene Content:
Through Genetics
Genetics
Breeding
Plantation
USDA/DOE
Genetic engineering
DOE/ARPA-E
What traits can justify investment?
• Long development cycle + long rotation
– Focus on traits that are good for large and stable markets
• Going to scale
– Sufficient value to landowner and other businesses in the supply chain
• Good for all markets
– Increased growth/yield/diameter of defect free trees are only things that pay
– Juvenile wood stiffness
– Increased wood terpene content
Stem Terpene Traits Are Heritable & Genetically
Correlated
• Across site heritability of 0.2-0.25
• Genetic correlations of 0.14 – 0.38
Westbrook et al., 2013, 2014 New Phytol.
Potential Progress with Breeding
Predicted first generation gains from breeding
individuals from top 5% of genetic distribution
Fold gain in trait means
from current generation
Resin canal
number
Xylem growth
increment
Oleoresin
drymass
Maximize individual traits
1.10
1.11
1.44
Maximize trait combination
1.08
1.07
1.37
• Oleoresin flow can be increased 1.4-fold and resin canal number 1.1-fold
in one generation
• Across-site genomic prediction models are robust to environmental
variation among sites
• Oleoresin yield is positively genetically correlated with tree size
Commercial Production of Terpene Biofuels in Pine
Team
Technology
Synergistic Strategies to Increase Wood Terpene to 20%
Pine Genetics & Wood Properties
Activation
J. Davis
Triple
Resin
Capacity
M. Davis G. Peter
Metabolic Engineering of Terpene Biosynthesis
Pathway
25%
Greater
Flux
Enzymes
1.5x More
Efficient
J. Keasling J. Kirby G. Papa B. Simmons
Pine Biotechnology & Valuation
R. De la Torre L. Pearson W. Rottmann
Target Fuels Jet – pinene dimers
Diesel - bisabolane
Pine Terpene Biosynthesis Occurs via
an Evolutionarily Conserved Pathway
• Mono- and diterpene
synthesis occurs via the
DXS or MEP pathway in
plant plastids
– High flux pathway
• Conserved with microbes
– Enzymes and regulation
are well studied
– Biochemical engineering
to increase production in
microbes is focus of
many research groups
Resinosis: Increasing Wood Terpene Content
Heartwood/Lighterwood
• Terpenes accumulate in
tracheids, ray cells & resin
canals
– 10-40% terpene/DW
Heartwood
Sapwood
Sapwood
• Terpenes accumulate in
resin canals and possibly ray
cells
– 2-8% terpene/DW
Terpene Enhanced Pine - Overview
Resinosis
Improved
enzymes
Increased
carbon flux
Discovery
Increased
Resin
canal
#/volume
Increased
terpene
synthesis
Combinatorial
engineering
Five fold
increase in
wood
terpene
20% wood terpene
Technoeconomic Modeling
Forest tree growth Value Chain Analysis & Proposition
Terpene recovery Germplasm providers
Commercialization Partners
Fuel production
Landowners
Harvesting/transport
Wood processors
Fuel synthesis
Pulp & paper
Biofuel Producers
Wood products
Bioenergy
Oleochemical Refiners
Flavor & Fragrances
Increasing Terpene Supply Adds Value Across Supply Chain
VALUE PROPOSITION
• Existing markets
• Knowledge of recovery
• Chemical transformations
for large industrial and
consumer markets
• Competes with petroleum
derived chemical
feedstocks
• Efficient conversion of
pinenes to jet fuel
Seedling
Provider
• Higher price seedlings
• Enables planting more trees/acre
• Potential for faster rotations
Landowner
• Live tree recovery of terpene increases
returns with addition of new product
• No effect on final wood yield
• Potential for increased wood value
Pulp &
Paper
• Higher profits from greater terpene coproduct yields
• No or limited additional CAPEX
Wood
Industry
• Enables recovery during wood drying to give
new product and additional profits from
terpene co-product
Chemical &
Fuels
Industry
• Increased supply for existing pine
oleochemicals industry
• Low cost hydrocarbons for conversion to
biodiesel & jet fuels
Biorefinery
• Increased fuel/co-product yields &
decreased costs from bio- & thermochemical platforms
Bioenergy
• Increased BTU/mass wood
Acknowledgements
• COLLABORATORS
• University of Florida
– John Davis, Chris Dervinis, Alan
Hodges, Jennifer Lauture,
Hemant Patel, Alejandro
Riveros-Walker, Andres Susaeta,
Yongsheng Wang, Jared
Westbrook
•
ArborGen
– Les Pearson, Will Rottmann
• NREL
– Mark Davis, Robert Sykes, Liz
Ware
• University of California, Berkeley
– Jay Keasling, Jim Kirby, Gabriella
Papa, Blake Simmons
• SUPPORT
• DOE/ARPA-E
– ArborGen
– Univ. California, Berkeley
– Univ. of Florida
• State of Florida
• Forest Biology Research
Cooperative
– ArborGen, Plum Creek Timber,
Rayonier, Weyerhaeuser

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