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Developing small and medium scale woodfuel supply chains
  
 
June 2005 Symposium
 

 The presentations given at the Northern WoodHeat Symposium, Joensuu 5-9 June 2005 are summarised below. Click on the title to read the presentation summary  - each one can also be downloaded in full.

Day 1

Day 2

 

Forest Machinery Session

 

Day 1

 

Cornerstones of Efficient Supply of Forest Fuels

Professor Penti Hakkila, VTT Processes

The use of forest chips (wood chips) is a key development in wood energy. This presentation outlines the necessary conditions for the use of forest chips as a viable fuel. Throughout the supply chain, the production cost of forest chips has to be minimised. However, forest chips also have to fulfill customer needs in terms of value-for-money heating and year-round security of supply. Stages of the supply chain are examined, and means of economic and technical improvement proposed. Three improvement strategies are suggested: a centralized system where all the activities in the terrain, at the landing and at the plant are close together thereby reducing the logistic cost; large scale production reducing the marginal production cost ; baling which could among other things save time spent on handling. The context for the interest of forest industries and governmental policy is also discussed.

 

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Policy and awareness raising of Scottish woodfuel use

Forestry Commission Scotland

Scotland’s energy policy is a response to both EU targets to increase renewable energy production and to the Kyoto protocol target to reduce greenhouse gas emissions. The development of bioenergy and woodenergy in particular is well suited to the situation in Scotland. Around a third of the electricity delivered in Scotland is used for heat which emphasises the importance of technologies such as wood energy which can produce heat directly. The population in the Highlands of Scotland is scattered - wood energy would therefore be an environmentally friendly and economic solution to energy demands, suppressing the high cost of electricity transmission and enhancing the local economy.

The development of wood energy in Scotland is supported by different sources of funding available to communities and individuals, and to businesses and suppliers. It is also supported by Forestry Commission Scotland which promotes woodfuel development through various avenues including research programmes and  a Woodfuel Usage Survey.  Finally woodfuel development is stimulated by several development projects which aim increase the knowledge and interest in wood energy.

 

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Introducing wood fuels to the geothermal and treeless Iceland: realistic or just plain stupid?

Loftur Jonsson, Iceland

Iceland has few forest resources, and enjoys cheap and clean heating from geothermal energy. However, wood energy utilisation has become relevant for remote areas where the cost of power supply is high, and the markets for Iceland’s existing forest resources are poor. Whilst wood energy in Iceland is not a solution as a whole, it has the potential to complement the main electricity and heating production by geothermal sources, and to provide a useful and sustainable additional output for Iceland’s forest industry.

 

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Woodfuel supply chain modelling in Iceland using GIS

Bernd Moeller, Aalborg University/LBHI

A case study of the Hallormsstađur Forest in Iceland was used to develop a wood fuel supply chain model based on GIS utilisation. This model could be helpful in analysing the feasibility of an area for woodfuel supply. The model consists of mapping of two kinds of data for each potential area: energy demand and forest resources. The combination of these data enables calculation of, among other things, transportation cost and thus selects the best sites for a possible afforestation programmes or woodfuel harvest sites. However, there are limitations to the model: these include the lack of both geographical forest data (existing maps are spatially imprecise) and energy consumption data by individual household and industries (there is no direct link between size of building and consumption).

 

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Feasibility Study Iceland

Timo Tahvanainen and Lauri Sikanen, Metla

This presentation is the first report on the Regional Wood Energy Feasibility Study, carried out in Hallormstadir in Iceland. The goal of the study is to promote the sustainable use of forestry and forest resources for the benefit of Hallormstadir area. Goals and guidelines were identified for the establishment of a wood energy supply chain in this area as well as possibilities and restrictions for the use of forest energy and forest fuel resources.

 

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Day 2

 

Woodfuel in Scotland

Fiona McPhie, Highland Birchwoods

In the North of Scotland, the population is widely scattered, and the electricity transmission infrastructure is inadequate to cope with distributing additional energy to new households. Yet, a large amount of the requirement for electricity is for heat. Woodfuel is therefore a highly appropriate energy source as it produces heat directly. The Highlands have a considerable potential woodfuel resource as there is a large reservoir of low grade timber which lacks viable markets.

The current wood energy situation in Scotland is in its early stages, but already there is a growing demand for woodfuel. There are a number of woodfuel research and development projects; these include  Northern WoodHeat, H&I Woodfuel Development Programme and the North Sea Bioenergy pellets project. Funding opportunities for people wishing to install woodfuel heating systems are provided by the Scottish Community and Householder Renewable Initiative and the Highlands and Islands Community Energy Company. Northern WoodHeat in Scotland will be setting up four supply chains in different geographical areas where harvesting, extraction, drying, chipping, transport, logistic and boiler trials will be carried out.

 

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Possibilities and limitations of woodfuels in Scotland

Lauri Sikanen and Dominik Roeser, METLA

This presentation outlines the possibilities and limitations of woodfuel use in Scotland concentrating mainly on the case study of  the Wick District Heating Scheme in Caithness. The foundations for a viable woodfuel industry in Scotland already exist: there are existing timber harvesting professionals and systems which create a supportive base for woodfuel harvesting. Further, there is a strong will for development of woodfuel supply chains at the local scale, as promoted by the Forestry Commission as land owners and Highland Council as decision makers. However, there are also some factors which may limit the development of woodfuel supply chains. The large distance between the possible woodfuel harvesting sites and the small volume of wood required need to be considered in particular during the firewood supply chain feasibility study. There is a not a strong tradition of woodfuel use in Scotland, and raw material production is seldom the landowners’ objective. Another challenge is to overcome the high moisture content of the wood by integrating drying into the supply chain.

 

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Heat Energy Entrepreneurship in Finland

Asko Puhakka , North Karelia Polytechnic

This presentation discusses models of heat entrepeneurship in operation in Finland. One such model is where an entrepreneur or a group of entrepreneurs invests in and owns a heating plant and also takes care of the fuel supply and maintenance work. The owners then sell heat energy to the customer as a comprehensive service and the price for the heat could be set in relation to the energy unit (€/MWh). Another possibility could be that the local authority or the customer owns the heating plant. In this case, energy entrepreneurs could manage the fuel supply and technical maintenance work. Whilst local authorities may have environmental incentives to adopt the latter system, they still need to know the investment cost, the repayment period and the interest rate.

 

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E-Trade of Woodfuel

Timo Tahvanainen, Metla

Mottinetti is a Finnish marketing service which uses Internet to sell woodfuel. Mottinetti ensures the link between the firewood user and the firewood producer. It offers security to the customer with the guarantee of quality service and delivery terms. It also offers  security to the producers by supplying them with a ready market and constant demand. Finally, it is also adapted to a large range of customers and sells an assortment of types of woodfuel.

The development of this service is ongoing, and it is progressively replacing the previous small Finnish firewood market.

 

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Cost structure of supply chains in Finland- METLA Finnish Forest Research Institute

 Juha Laitila, Metla

This presentation details how The National Wood Energy Technology Programme has conducted a comparison of the procurement cost (in €/m3 or €/MWh) of the three main sources of forest fuel i.e. logging residue from final felling, stumps from final felling and small diameter trees from early thinning. The comparison includes each step of the supply chain. First of all, extraction is studied - the cost of slash piling of the logging residue is compared to stump uprooting and felling/bunching of thinnings. Then, the chipping operation cost at road side is compared to chipping at the power plant. Finally, the cost of transportation is calculated as a function of the transport distance and load volume. The results of the study reveal that the procurement cost of the trees from early thinning, 2 €/m3, is by far the highest because of the high logging cost. The procurement costs of logging residues and stumps from final felling cost respectively 0.7 and 1.3 €/m3. In all cases, large scale operations reduce the cost of employment and machinery and justifies chipping at the plant. Finally, matching the right type of supply chain to the right site requires GIS-based studies and cost analyses.

 

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Enertree - A decision support tool for forest energy utilisation

-Karri Passanen, Metla

Enertree”, developed by METLA the Finnish Forest Research Institute, is a decision support tool for forest energy utilisation. It is aimed at all kinds of forest landowners and will help them to manage their forest resources, and to address multicriteria decisions. Environmental consequences are integrated using ecological indicators, and the profitability of the solutions are calculated through economic indicators.

 

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Moisture in woodfuels and drying of wood chips 

Mikko Helin, North Karelia Polytechnic

High moisture content of wood chips reduces their heating value, and can cause problems with boiler function, therefore it is necessary to find efficient ways of drying chips. Air-drying can be done using either unheated or heated air. Solar energy or integrated heating combining chip drying with the heat from the boilers are two possibilities. Benefits from drying wood chips are more significant if there is already a building for the dryer as this requires a smaller investment.

 

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Woodfuel and the local economy

Lasse Okkonen, North Karelia Polytechnic

This presentation gives an overview of the calculation of the economic impact of a new activity for a region; the particular case of a woodfuel supply chain is investigated.

As a general rule, the economic impact is the sum of the direct (jobs and income), indirect (employment and income changes occurring in other businesses or industries in the region that supply inputs to the project industry) and induced (effect of the household spending in the local economy) economic impact. To be more accurate the multiplier effect, i.e. the additional activities generated by the new one, has to be taken into account. 

The economic impact generated by the development of a woodfuel supply chain at local scale is one of the steps of the decision making process. The relevant indicators for evaluation of the benefits of a small scale woodfuel plant are those measuring the effect on employment and income. Significant gains can be expected in these fields without displacing conventional large scale energy supply systems. Neither should they damage the supply-chains of competing activities.

 

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Bioenergy Solutions - Thermia

Thermia is a Finnish-Swedish group which produces central heating boilers, bio energy systems and heat pumps. Thermia manufactures boilers for all fuels; oil, gas, wood, pellets, wood chips and also electricity. This presentation focuses on Bio heating systems which combine boilers and fuel storage. This allows easy maintenance and the volume of the silo determines the fuel fill interval.

 

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Forestry machinery Session

 

Bundles of Energy from the Forest –a Finnish Success Story

Ari Saarenmaa, John Deere Forestry

John Deere is a Finnish forestry enterprise which has a strong interest in the use of forest by-products - logging residues -  to produce fuelwood. Finnish policy in response to the EU energy policy and the Kyoto protocol requires an increase in the level of renewable energy production. As a consequence, the economic benefits expected from bioenergy such as wood energy are increasing and John Deere has decided to explore this promising new market. Attention is focused on the design of new forest machines and harvest methods to combine producing sawlogs for timber production and bundling residues for fuelwood production.

 

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KESLA Oy 

 

Kesla is a Finnish forestry enterprise which produces forest machines, trailers, harvesters, chippers and timber loaders.

 

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Naarva grip Janne Haikio, Pentin Paja Oy

 

Pentin Paja Oy is an engineering, manufacturing and sales company, specialising in forest construction equipments, sold under the brand name Naarva. An important area of their operation is also maintenance and installation services for the local industrial plants.

This presentation focuses on the machine “Naarva-Grip” which is a combination of felling head and grapple and which could especially be useful for the harvest of several small trees at the same time during thinning operations for woodfuel utilisation.

 

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Click on the flags below to find out more information about Northern Woodheat in these countries.

Scotland Finland Iceland

For more information about Northern WoodHeat, the website updates or woodfuel use in general contact:

The Project Manager,
Highland Birchwoods,
Littleburn Road,
Munlochy IV8 8NN


Email: info@northernwoodheat.net

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