Economic Analysis of Secondary Fuel Quality Treatment for Wood Chips from Forest Residues

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1 Economic Analysis of Secondary Fuel Quality Treatment for Wood Chips from Forest Residues 49th International Symposium on Forestry Mechanization Kathrin Schreiber, Dr. Daniel Kuptz, Fabian Schulmeyer Warsaw, September 7th 2016 Bayerische Landesanstalt für Wald und Forstwirtschaft

2 Research Project qualis Joint research project German Association of Bioenergy (BBE) Technology and Support Centre (TFZ) Bavarian State Institute of Forestry (LWF) University of Applied Science and Arts Hildesheim/Holzminden/Göttingen (HAWK) German Biomass Research Centre (DBFZ) Funding Federal Ministry of Food and Agriculture (BMEL) National Agency of Renewable Resources (FNR) 2

3 Motivation for the project Wood chips from forest residues are often directly used as fuel for regional, small scale heat production in small combustion units < 1 MW High emissions due to high shares of needles and bark are likely Revision of PM and CO thersholds in the German federal emission control act (1.BImSchV) Critical value for emissions Nominal Heat Output (kw) Particle matter (g/m³) CO (g/m³) Level 1: Level 2: since January 1st, , (0.5)* 4 1, * small combustion units > 500 kw Correct handling of the combustion unit depends on customer Filter technology for small combustion units < 1,000 kw is costly Improvement of the fuel quality through secondary quality treatment advisable 3

4 Approach of the project Online survey amongst wood chips suppliers in Germany (n = 91) Annual production aprox. 850T Oven Dry Ton (ODT) Various questions about secondary treatments steps for Assortment 1: used in combustion units < 100 kw Assortment 2: used in combustion units > 100 kw 1000 kw Raw material Quality parameters Applied technology. 4

5 Common secondary treatment steps: Drying 5

6 Common secondary treatment steps: Screening 6

7 Setup of the case study Drying Technology Drying Container Screening Technology Star Screen Time study to identify relevant parameters Sampling of wood chips to detect quality changes Economic analysis to determine the production cost 7

8 Setup of the time study Jenz HEM 593 S biogas Contai ner Contai ner Container Komptech Multistar S Storage Raw material: Forest residues, Norway spruce (Picea abies) Sampling Chipping with JENZ HEM 593 Transport to the biogas plant for drying Screening (time study) Indoor Storage Machine Producer Model Chipping Chipper JENZ HEM 593 Transport Truck Scania R 480 Drying Container DIY- Construction Screening Star Screen Komptech Multistar Transport Wheel loader Volvo L110 G 8

9 Results: quality analysis Raw Material Final Product Moisture Content 51.0 (± 3.0) w-% 13.1 (± 2.7) w-% Particle Size Classification (ISO ) Not classifiable P45S Fines 17.7 (± 6.6) w-% 2.5 (± 1.9) w-% Ash Content (wf) 7.4 (± 4.33) w-% 1.9 (± 0.70) w-% Net. cal. value (wf) 18.5 MJ/kg 19.1 MJ/kg Net. cal. value (ar) 7.8 MJ/kg 16.3 MJ/kg Nitrogen (wf) 0.47 w-% 0.20 w-% Potassium(wf) 1,404 mg/kg 1,018 mg/kg 9

10 Economic Analysis Determination of relevant parameters during time study Throughput rate Weight and share of the different fractions Additional Information supplied by the company Cost of purchase (raw material) Investment cost of the machinery Operating hours Maintenance cost for the property Number of employees 10

11 Star screen Komptech Multi Star Value Unit Investment cost 213, [ ] Operating hours 1621 [PMH 15 /year] Salvage value 53, [ ] Depreciation 15 [years] Interest factor 4.00 [%] Throughput [LCM*/PMH 15 ] Cost for screening 0.26 [ /LCM] 1.50 [ /ODT] * Loose Cubic Meters 11

12 Production cost for the wood chips Process step Information Cost [ /LCM] Cost [ /ODT] Purchase of raw material Forest residues Unchipped forest roadside moisture content 51% JENZ HEM 593 Chipping 278 kw drive power 61.6 LCM/PMH /PMH 15 Scania R480 with two containers Transport Average distance 70 km Revenue load 60 LCM per drive 1.43 /km Drying Container Container Investment cost 5,500 Annual 1,350 LCM/ Container Container drying Drying Outsourced Screening Manipulation by wheel loader Komptech Multi Star /PMH 15 Output LCM/PMH 15 Volvo L110G/ /PMH 15 Operating time PMH 15 /LCM Property and buildings Bituminized forecourt Machinery hall for screen Storage depot wood chips

13 Comparison with sales revenues Sales revenues for wood chips: dried, screened and delivered: /ODT (South Bavaria Spring 2016, MC 20) untreated wood chips delivered: /ODT (MC 50) Production cost for the high quality wood chips of this case study dried, screened and delivered: /ODT untreated wood chips delivered: /ODT /ODT High quality wood chips Untreated wood chips Sales revenue Production cost Marginal return

14 Conclusion There is a market for high quality wood chips to meet the threshold values of the german emission legislation Some producers already provide high quality wood chips Secondary treatment steps improve the quality of wood chips from forest residues Production of high quality wood chips can be profitable New markets for niche products, e.g. fines as litter for animals can add to the profit 14

15 Thank you for your attention Bavarian State Institute of Forestry (LWF) Department 4 Forest Technology, Business Management, Timber Kathrin Schreiber +49 (0) 8161 / Kathrin.Schreiber@lwf.bayern.de