forest bioenergy harvesting business - metla · 2015. 6. 18. · • domestic resource: local work,...

© Natural Resources Institute Finland © Natural Resources Institute Finland

Forestry Contractor OSCAR Seminar 8-9th June 2015

Hämeenlinna, Finland

Arto Rummukainen

Natural Resources Institute Finland

8.6.2015

Forest bioenergy

harvesting business

© Natural Resources Institute Finland 2 12.6.2015 Rummukainen Forest bioenergy harvesting …

Thanks!

Idea

Antti Asikainen

Painting

Akseli Galle-Kallela

Climate change

Import dependency

Use of fossile fuels

Efficient forest fuel system

© Natural Resources Institute Finland

Why bioenergy?

• Bioenergy is usually based on renewable resources

• Climate effects better than fossil fuels (some doubts)

• Domestic resource: local work, spare on foreign exchange

• Good base for circular economy: bioeconomy

3 12.6.2015 Rummukainen Forest bioenergy harvesting …

Potential labour input in forest bioenergy harvesting by Asikainen 2012, Metla


Finnish energy structure



Forest utilisation for

bioeconomy grows



What is the job in bioenergy?


There are many enterprising possibilities



Methods to produce forest chips 2014 By Markus Strandström 2014 Metsäteho Oy


Material: 73 % of utilisation of forest chips in heat/power

plants, total 11,6 TWh

Raw material

4,7 TWh Small size whole trees or stems 41 %

4,0 TWh Cutting residuals 34 %

2,0 TWh Stumps 17 %

0,9 TWh Rotten pulp wood or logs 8 %

Chipping / crushing methods

- Road side chipping 57 %

- Terminal chipping 27 % Increasing

- Chipping at heat/power plant 16 %


Forest industry

connected to 400

plants utilising forest

energy

Energy companies

to 300

Other smaller ones

to 100

Suppliers have

Forest industry as

customer but also

new customers,

usually smaller

Who are the

customers?


Forest industry companies’ wood procurement units

learned, that energy wood business is an art itself Long time span, strong seasonality

Special scaling and quality, easily quality losses

Special machines, new enterprises

Good working solutions Supplier devoted to energy wood harvesting

Challenges Quality in harvesting and storage, material losses

First thinnings not profitable

One machine broken, the whole chain broken

State subsidies fluctuate too often and much

Learning period for both customer and supplier

Photo Arto Rummukainen


• Suppliers of forest industry companies, 70-80 %

– Side work for round wood harvesting &

transport

– Specialised to some of energy wood tasks:

• harvesting, chipping & transport

• Enterprises working directly for power plants

• Enterprises working for others supplying power

plants

• Enterprises & associations buying wood for

power plants

Work requires different machinery, time tables,

operating areas etc. compared to round wood

harvesting


Who are the energy enterprises?



Part time enterprising possible

• Heating period on winter, free time

in agriculture

• Reasonable investments possible

• Forest owner can sell work and

wood

• Crushing stumps and recycle

wood


Photos Arto Rummukainen

Customers’ requirements

• Small energy plants

– Dry, good quality chips

• Fluidisized bed grate power

plants

– Large variety of fuels

and qualities


Front-loaded costs in long process


1. Winter 50%

1. Autumn 15%

2. Spring 5%

2. Winter 30%

Photos Arto Rummukainen


Way to future

Increasing knowledge of bioenergy benefits

Bioenergy to schools

LONG TERM decisions to promote bioenergy

Forest industry is growing

Forest owners sell wood

Transferring forest estates to next generation easy



Infrastructure

Roads need to be upgraded

for 76 – 100 ton trucks

Bioenergy terminals needed

-permission, owner etc.

Improve the thermal

value of forest fuels

Circulating economy

Road net 1940 and 2014


Forest operations are the hot spot

• Common quality based

chip pricing system

• Minimising problems of

seasonality

• Building networks between

enterprises

• Education of operators and

enterprise owners

– Change of generation

easy

• Promoting method and

machine export




Natural

Resources

Institute Finland

&

VVT Technical

Research

Centre of

Finland

work together

for promoting

bioenergy

www.forestenergy2020.org



Kesla Hybrid chipper

250 kW Diesel engine with thyristor and electric engine

Spare 30 % diesel fuel



Thank you!

Arto Rummukainen

[email protected]

forest bioenergy harvesting business - metla · 2015. 6. 18. · • domestic resource: local work,...

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