2. Overview of Forestry, and Wood Fuel Supply Chains... 3

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1 Contents 1. Introduction to PromoBio Project Overview of Forestry, and Wood Fuel Supply Chains Austria Forestry and Wood Fuel Supply and Use Harvesting Technologies Including Chipping and Drying Felling Forwarding Chipping Storage and Transport Logistics Wood Fuel Quality Finland Forestry and Wood Fuel Supply and Use General Forest Energy in Finland Supply Systems for Forest Chips Transport Logistics Wood Fuel Quality Quality Management Quality Standards Moisture Impurities Chemical Composition Particle Size Origin of Wood... 35

2 ii 3. Combustion Technologies and Heating Systems Parameters Influencing Biomass Combustion Processes Fuel Quality Combustion Temperature Mixing and Residence Time Process Control Biomass Boilers Top Feed Burners Underfeed Burners Horizontal Feed Burners Biomass Boilers Fuel Receiving and Storage Fuel Feeding Combustion Technology Stoker Combustion Grate Combustion Fluidised Bed Combustion Fuel Sampling Biomass District Heating Systems Applications for End Users Investment Costs and Profitability of Biomass Heating Plants Austria Investment, Operating Costs and Profitability Specific Investment Costs for Heating Plants Specific Investment Costs for Heat Distribution Network... 60

3 iii Electric Auxiliary Energy Demand of Biomass Boilers Profitability Calculation Heat Demand Density (q area ) Transport Performance (pnetwork) Connection Density (qnetwork) Thermal Losses from Heat Distribution Annual Efficiency Funding Possibilities Feed-in-tariffs Federal Funding Provincial Funding Sample Calculation for Realised Investment Example Finland Investment, Operating Costs and Profitability Funding Possibilities Sample Investment Calculation for a Realised Heating Plant Business Models Covering the Entire Wood Heat Supply Chain Case Studies from Austria: Development and Management of Wood Heat Business Associative Forest Management Communities (AFMC) Austrian Forest Communities Provincial Forest Communities Associative Forest Management Communities (AFMCs) Example AFMC-Gaming Profitability of AFMC-Gaming... 83

4 iv Organisation and Handling of Current Businesses within AFMCs Strengths and Weaknesses Applicability of Models from Austria Contracts and Economy Bioenergie NÖ Ltd. (Niederösterreich) Description Bioenergie NÖ EXAMPLE Heat Plant Hofstetten Grünau Biomass Logistic and Trade Centres Description of Biomass Logistic and Trade Centres Biomass Trade Centre Pölstal Case Studies from Finland: Development and Management of the Wood Heat Business Case VakkaLämpö Co-operative, Toivakka, Central-Finland Case Joutsan Ekowatti Oy (Ltd.), Joutsa, Central-Finland Contracts and Economy of Biomass Heating Business in Finland Contracts Business Models Investment by Customer Investment by Entrepreneur Large-scale Enterprise: A Network Model ESCo Franchising Biomass Heat Containers Short Description of Situation in Wood Fuel and Biomass Heating Business in Each Pilot Region Poland Description and Situation of the Region

5 v Costs, Operation and Applicability Romania Description and Situation of the Region Costs, Operation and Applicability Slovakia Description and Situation of the Region Costs, Operation and Applicability REFERENCES Acronyms The sole responsibility for the content of this book lies with the authors. It does not necessarily reflect the opinion of the European Communities. The European Commission is not responsible for any use that maybe made of the information contained therein.