New Markets for Forest Products - Maine October 2024.pdf

Presentation to Maine forest industry members on new markets for forest products coming to the estate.

1. New Maine Forest Product Markets
October 2024
Eric Kingsley
Innovative Natural Resource Solutions LLC
[email protected]
Phone [phone]
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8. Sample Wood Innovation Grants
AmountDescription Company
$300,000Planning for OSB/OSL Mill in Jay, MaineGodfrey Forest Arizona, LLC
$1,000,000Durgin and Crowell Wood Energy Combined Heat and
Power System
Durgin & Crowell Lumber
$300,000Lumber Grade OptimizationCersosimo Lumber Company
$300,000Renewable Natural Gas Plant Installation, Testing and
Training
Vermont Renewable Gas, LLC
$1,000,000Combined Heat and Power Equipment ExpansionGutchess Lumber Company
$300,000Ossipee Mountain Land Company Kindling Upgrade
Project
Ossipee Mountain Land
Company
$295,000Wood Fiber Production for Mulch and Soil
Enhancement
Brentwood Distribution, LLC
$300,000Burn More Bark Engineering Sylvamo, NA Ticonderoga Mill
$300,000Colton Enterprises Kiln Dried Firewood Equipment &
Energy System Upgrades
Colton Enterprises, Inc

9. Sample Community Wood Grants
AmountDescription Company
$999,998Penobscot River Thermally Modified Wood
Treatment Facility
Teeline, Inc
$1,000,000Combined Biomass Heat and Power ProjectHancock Lumber
$710,930Renewable Energy Initiative: Biomass Boiler
Systems for Sustainable Schools
Southwest VT Supervisory Union
$1,500,000Expanding the Market Reach and Manufacturing
Capacity of Innovative Wood Fiber Insulation Board
Timber HP
$1,000,000Combined Heat & PowerBritton Lumber

10. We are at an Inflection Point in Forest
Products Manufacturing in the Northeast
•Pulp and Paper, Lumber will remain core products, but the range
of products we make from wood in New England is about to
expand
•A new focus on bio-based products, driven by:
•Addressing climate change (often replacing oil)
•Keeping manufacturing in the U.S.
•A desire for prosperous rural economies
•We will see many products, lots of innovation, some failures,
some successes
•Generally smaller scale users than big users we’re used to

11. Standard Biocarbon
Enfield, Maine
•A product that is used in
agricultural applications,
environmental remediation,
and carbon sequestration
•Co-located at Pleasant River
Lumber sawmill in Enfield,
Maine
•Operating now
•Several other biochar projects
(Maine, Vermont, maybe NY)
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12. Timber HP –Wood-Based Insulation
Madison, Maine
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13. Timber HP –Wood-Based Insulation
Madison, Maine
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14. Timber HP
•2 (of 3) lines running
•Producing batts and loose fill
•Pause on completion of the 3
rd
line
•Ran out of money for this line, making boards (half of capacity)
•Expect to have complete 1Q 2025
•Raising a Series B -$60 million
•For 2025, a big step up in wood consumption
•When operating at full capacity, will use about 250,000 green tons
•Nowhere near that number now, not in 2025
•“We’re fortunate to be in Maine” –relationships, state government

16. Castlerock
(formerly Ensyn)
•Collaboration between Ensyn, developers, and early stageinvestors
•Over 20 years of production at a facility in Renfrew, Ontario
•Selling a heating oil product (for institutions) or drop-in for refining
•Used for heating at Memorial Hospital, North Conway, NH
•Used for heating at Bates College, Lewiston, Maine
•Air permit in hand
•Katahdin Region former pulp mill location
•Using RFS-qualified feedstock (slash)
•Meeting with potential suppliers
•Bonding, about $200 million, expected 1Q 2025

17. Biofine–Levulenic Acid
Lincoln, Maine
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18. Biofine
•Approaching FID (Final Investment Decision)
•Engineering complete
•All permits submitted to DEP, expect in Q1 2025
•Offtake in place
•Produce a drop-in home heating oil substitute
•Long-term lease at Lincoln mill
•Received feedstock plan approval from EPA
•RFS restrictions (slash, etc.)
•Going to investors in the next few months, both debt and equity

19. Renewable Fuel Standard
•Administered by EPA
•Restricts feedstock to:
•Slash (tops and branches)
•Pre-commercial thinnings
•Planted trees and tree residue from
a timber plantation established
before December 2007
•Only from non-federal lands
•New Sustainable Aviation Fuel
(SAF) requirements are more
flexible
Percent of Private Timberland that Was
Established via Planting
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20. Home Heating Fuels
(Or, why biofuel firms in the Northeast are focused on a heating oil replacement)
Source: Washington Post
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21. Godfrey Forest Products
•Oriented Strandboard
manufacturer in Jay, Maine
•Former pulp and paper mill site
•Developer has previous successes,
including mill in New Limerick,
Maine
•Expect to use primarily pine, but
some other species as well
•Draft air permit in hand
•No town permits necessary
•except shoreline
•Working on lining everything up,
and “moving along”

22. The Northeast is Going to Be Fine…
•For better or worse, the forest industry is accustomed to
boom-and-bust cycles, andhas experience handling
them.
•We have markets, and are incredibly well positioned
compared to other parts of the country
•We have the forest resource and supply infrastructure
(landowners, loggers, entire forest industry ecosystem)
that would make other regions jealous
•We live in close proximity to(and are part of) the greatest
collection of consumersin the history of the world
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23. The Wood
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24. The Markets
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25. Eric KingsleyInnovative Natural Resource Solutions LLC
Phone [phone]
Email [email protected]
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