5EURES Training June 2006, Joensuu, Finland

1. Estimation of Forest Fuel Potential Lauri Sikanen & Timo Tahvanainen Finnish Forest Research Institute Joensuu 5EURES Training June 2006, Joensuu, Finland

2. Aim of the lecture To describe approaches of estimating forest energy resources and availability AND To take a look to the influence of laws, regulations and subsidies to forest energy procurement

3. Definition of forest fuel Wood-based fuels Energy Forest Forest Biomass Recycled wood Short Rotation Forestry Used wood from Construction Demolition Wooden Packages Secondary residues Primary residues Roundwood for energy Traditional firewood Forest Residues Logging residues Residues from first and intermediate thinnings Stumps Industrial Residues Bark Sawdust Shavings and chips Endings and cross-cut ends Black liquor

4. Small scale users: Farms, private houses etc. 40 – 500 kW FUELS

5. Medium scale users: Municipality size 0.5 – 20 MW FUELS

6. FUELS Large scale users: City sizefor example: Alholmens KraftThe biggest biofuel energy plant in the world - 550 MW combined heat and power Total use of wood fuels 1 500 GWh/a Forest residues 150 000 m3 = 300 GWh/a www.alholmenskraft.com

7. Quality as restriction Quality requirement Boiler size

8. Transportation of woodfuel fractions Proportion of solids in uncompacted logging residues and tree-sections,wood chips and conventional pulpwood. All loads have the same solid content. (After Nilsson 1983).

9. Small diameter trees from early thinnings • -Harvesting costs are high • - Cost difference to logging residue chips is about 10 - 15 €/m³ • - Resources difficult to locate, measure and get to market • - Integration with roundwood harvesting is weak • Logging residues and stumps from final fellings • - A side product of final cuttings • - Accumulation easy to estimate and locate • - Integration with roundwood harvesting is great • - Harvesting costs are quite low • Rounwood from final fellings • - Effective operations • - Traditions exist • - Good quality chips • (Industrial residues) • (Energy wood plantations) The main sources of forest fuels

10. Unmerchantable stem top C&H Whole stem 65% Industrial roundwood sawlog and pulpwood Foliage H 7% C 3% Branches H 14% C 18% Crown Crown Stump H&C 14% Roots Parts of the tree and their share of dry mass H= hardwoods C=conifers (Young et al. 1964)

11. Information sources Availability of forest energy and industrial roundwood can be estimated by the same methods. Forest energy should be considered as a ”new timber assortment” Forest statistics Harvesting databases of forest companies Forest inventories Aerial fotography Satellite imagery

12. Example 1. Availability of harvesting residues. • Statistics of all final cuttings made in one • year on the certain area (should be sustainable in long term) • Site characteristics • Accumulation of industrial roundwood by species • Forwarding distance Accumulation of energy fractions are estimated according to tree characteristics (see slide Availability 3) • Possible restrictions considered • Minimum accumulation • Maximum forwarding distance • Maximum transporting distance Accumulatoin and transporting costs are estimated

13. Example 1. Availability of harvesting residues. Spruce stand, final cutting Energy accumulation > 100 m3/ha

14. m3/km2 > 60 45 - 60 30 - 45 15 - 30 < 15 100 km Vaasa Example 1. Availability of harvesting residues. All annual final cuttings in Joensuu surroundings Availability polygons constructed from the similar material for Vaasa surroundings

15. Systematic clusterwise sampleplots of NFI9 Municipal level estimates of shares of development classes 3,4 and 5 Expansion factor area represented by each sample plot in each municipality Simulation of thinning cuttings Crown-masses by Hakkila’s (1991) models Transportation distances from logging residue study (Asikainen et al. 2001) Theoretical potential Example 2. Estimation of the forest energy potential of young forests in Finland Methods 1/2

16. Restrictions Estimated technical potential Theoretical potential Example 2. Estimation of the forest energy potential of young forests in Finland Methods 2/2 • Accumulation of industrial roundwood, max. 25 m3/ha • Accumulation of energy fraction, min. 25 m3/ha • Peatland stands and stands on mineral soil with site • poorer than Myrtillus-type were excluded • Minimum for mean stem size, 10 dm3 • Suggested cutting is urgent or delayed

17. Example 2. Estimation of the forest energy potential of young forests in Finland Results 1/2 Availability of forest chips from young stands when using different stand selection criterias with 100 km procurement radius Accumulation, m3/year

18. Example 2. Estimation of the forest energy potential of young forests in Finland Results 2/2 Development classes in harvesting potential Vaasa Accumulation, m3/year Distance, km Joensuu Distance, km

19. Young birch stand in the urgent need of thinning Energy accumulation > 50 m3/ha

20. Young pine stand, first thinning 20 m3/ha > Energy accumulation > 50 m3/ha

21. Production methods of chips from small-sized trees

22. Supply chains for logging residues (or log chips)

23. Brief analysis of technology selection for Highlands • FACTS • Low bearing capasity of soil • Rounwood for fuel • Existing harvesting traditions/entrepreneurs • Several medium scale using places apart from each other • Plenty of small using places apart from each other • High moisture content of roundwood • Chip burning boilers • Gasification • EFFECTS ON SUGGESTED TECHNOLOGY • Terrain chipping almost out of question • Harvesters and forwarders already exist and are effective • Large number of professionals already know what is the name of the game • Chipping at plant out of question • Mobile effective chipper with large enough feeding capacity • Farm scale chippers and local part-time operators needed • Storing (with covering) over the summer

24. Selection of harvesting technology • Complex analysis • Annual need for forest fuels and other fuels • Annual availability of forest fuels • - fuel mix (residues, small trees, stumps) • - transport distances in the forest/on road network • Location of plant (centre of a town or in the sub urban area)? • Size of plant yard (storage)? • Municipal DH plant/Industrial CHP plant? • Dominating technology to produce chips to DH plants • Need for GIS-based availability and cost analysis

25. 35 30 Management 3 25 Road transport 20 Chipping at roadside Cost, €/m 15 Forwarding to roadside 10 Felling 5 0 Residues, 40 km Residues, 80 km Small trees, 40 km Small trees, 80 km Cost structure of forest fuels in Finland

26. 2.3 p/kWh 2.0 p/kWh Rural development Unit Costs of Fuel Chips Delivered to PlantRoadside Chipping, £ / tonne (preliminary calculations)

27. Wick • Annual use 3 500 tonnes / boiler • With £40 / tonne => £140 000

28. Availability of logging residues in different parts of Finland Asikainen et al 2001

29. Loose residues Stand chipping Terminal chipping Baled residues Relative price at the mill Annual harvesting amount, m3 Relative price of fuel with different procurement methods Asikainen et al 2001

30. Basis of scenarios biomass reserve in Finnish forests Residues from integrated operations 15 Mm3 Residues from integrated operations 7-11 Mm3 Stumwood from integrated operations 15 Mm3 Stumwood from integrated operations 1-2 Mm3 Theoretical biomass potential 35 Mm3 Technically harvestable potential 10-16 Mm3 Separate fuelwood operations 5 Mm3 Separate fuelwood operations 2-3 Mm3 Integrated harvesting of industrial raw material and fuel Separate harvesting of forest fuel Residues from integrated operations 4 Mm3 Stumwood from integrated operations 0-1 Mm3 Goal of the Action Plan for 2010 5-6 Mm3 Separate fuelwood operations 1 Mm3 (Hakkila 2004)

31. Scotland

32. Scotland

33. Scotland

34. Subsidies & legislation

35. Policy instruments needed Bioenergy has to be a profitable business for: • energy companies • contractors • forest owners… Taxes and subsidies to adjusts price-competiveness • subsidies for investments (20-30 %) • taxes for fossil fuels (1.6-6.3 €/MWh) • subsidies for green electricity (6.9 €/MWh) • subsidies for collecting fuel wood from young forests • 0 – 5.5 €/MWh  Long-term national energy policy to secure investments • Make the market mechanism work for bioenergy!

36. 35 30 Management 3 25 Road transport 20 Chipping at roadside Cost, €/m 15 Forwarding to roadside 10 Felling 5 0 Residues, 40 km Residues, 80 km Small trees, 40 km Small trees, 80 km Harvesting subsidies in Finland Max 11 € / m3

37. Harmful effects of subsidies Easily drives over-estimated investments Can disturb the development of market mechanisms Can make development of efficiency slower Example: Powerful support for wood energy installations at the same time with increasing oil price created the demand of pellets last winter in Germany and Austria bigger than supply. Runnig out of pellets in market gave bad reputation for whole business. Long term objective should be to make business without subsidies

38. LEX Legislation • In every country, legislation has to be known before adopting approaches from elsewhere. • Examples: • Max payload of trucks in Finland = 40 tonnes • in UK = 22 tonnes • In Russia, all timber has to harvested to roadside • Large amounts of wastewood is harvested but almost nobody use it! In Spain and Portugal, large amounts of biomass harvested with state support in order to prevent forest fires.

39. § • Legislation has to be • considered at least: • In emissions (environmental laws) • In transportation (traffic laws) • In harvesting (forest laws & environmental laws)

40. builds the future of forest sector through research Thank you for your attention