Wood Energy From Forest To Market. Tom Kent Waterford Institute of Technology

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1 Wood Energy From Forest To Market Tom Kent Waterford Institute of Technology

2 Acknowledgements Society of Irish Foresters & Irish Timber Growers Association COFORD Wood Energy Research Group WIT Danish Forestry Extension Mr. Pieter Kofman

3 Overview Outline the developing markets for wood energy Describe actual & potential wood fuel supply chains Comment on the price potential of wood fuel

4 Total Primary Energy Requirement in 2006 Source: SEI PJ 000 TOE Oil Natural Gas Coal Peat Renewables (wind, hydro) Renewables (biomass) Imported Electricity Total % imported Divided equally between Electricity, Heating & Transport

5 Policy Targets for Wood Energy Energy White Paper 2007 Bioenergy Action Plan for Ireland RE Heating: 5% by 2010, 12% by 2020 RE Electricity: 30% biomass co-firing with peat by 2015 Biomass co-firing in Moneypoint by 2010 Development of Biomass-fired CHP

6 Developing Wood Heat Markets Delivered through Sustainable Energy Ireland Wood pellet & wood chip fired boilers Greener Homes Scheme: c installed boilers & stoves (100MW+) Pilot BioHeat Programme: : 20 installations 10MW capacity ReHeat Programme: : 111 installations 45MW capacity to Dec 07

7 Developing Electricity Generation REFIT Renewable Energy Feed In Tariff 0.072/kWh for biomass Extended to include co-firing Biomass CHP Capital Grant Scheme 30% capital grant support REFIT Tariff of 0.12/kWh

8 Demand for Solid Biofuels by 2020: 2.5 million tonnes Demand for Solid Biofuels by 2010 Heating 5% of total Electricity Co-firing with peat (5%) Moneypoint (trial only) 5000 Total (tonnes) Other developments: DPellet wood pellet manufacturers, Co. Kilkenny Material demand >100000m 3 /annum Biomass CHP Other markets: Out-wintering pads for cattle

9 Context - Available Irish Wood Fuel Source: COFORD, 2004 Source Quantity 2010 (green tonne) State & Private Forestry Thinnings & Clearfell residues 1,040,000 Wood Industry Residues Sawdust, Woodchip, Bark, Slabwood 250,000 Post consumer recovered wood Construction & Demolition Waste & Packaging 250,000

10 Forest Energy Project COFORD funded Partnership between WIT & DFE To secure marketable wood fuel of acceptable moisture content for sale as wood fuel from Irish first thinnings of softwoods and hardwoods

11 Forest Energy Project Working Sites 9 Softwood Sites 130 ha in total 5 Hardwood Sites 25 ha in total Cutover Peat (4 plots) 7Ha With thanks to landowners, forest managers and the Forest Service

12 Harvesting Wood for Energy 1 Wood, bark and branches are all acceptable fuel needles are not Possible to harvest additional biomass Possible to thin earlier economically Possible to thin no-thin sites

13 Harvesting Wood for Energy 2 Chipping only after at least one summer seasoning Allows needles to fall, nutrients to be returned Increases the energy value of wood Reduces transportation costs

14 Softwoods: Shortwood Thinning Standard thinning Machinery employed: 1. Harvester 2. Forwarder 3. Roadside chipper 4. Curtain-sider lorry Pulp, box & stake assortments Variation integrated thinning Pulp / energywood assortment seasoned and chipped

15 Softwoods: Whole tree thinning Alternative thinning Method employed: 1. Chainsaw 2. Silvatec Chipper 3. Chips forwarder 4. Container lorries Wholetree seasons in stand Variation chemical thinning Chipping by terrain chipper

16 Softwood Fuel Production Cost 2006 Harvesting Chipping Cost per m 3 Cost per GJ Pulp wood Harvester/Forwarder Jenz m energywood Harvester/Forwarder Jenz Whole tree Chainsaw Silvatec Whole tree (Chemical) Silvatec Silvatec Harvesting Chipping Cost per m 3 Cost per GJ Pulp wood Harvester/Forwarder MusMax m energywood Harvester/Forwarder MusMax Whole tree Chainsaw Silvatec Whole tree (Chemical) Silvatec Silvatec

17 Hardwoods Thinning Methods Wholetree method similar to softwoods Wholetree method variation extraction to roadside and seasoning in stack Shortwood methods firewood production Motor manual harvesting only Varied extraction systems Crop marking critical to harvesting productivity

18 2007 figures are for harvesting and extraction of 3m lengths to roadside only Hardwood Production Costs 2006 Harvesting Chipping Cost per m 3 Cost per GJ Whole tree Chainsaw Silvatec Whole tree Chainsaw TP Whole tree Feller buncher/forwarder Jenz Harvesting Extraction Cost per m 3 3m lengths Chainsaw Forwarder m lengths Chainsaw Quad m lengths Chainsaw Horse Does not include the cost of marking crop prior to thinning

19 Forest Energy Project Woodfuel quality testing to European Standards Investigating storage methods Assessing moisture content of standing trees Work study on firewood production methods

20 Price Potential of Woodfuel for Heating Market divided into domestic & commercial SEI produce quarterly report on delivered energy price by fuel Value of woodfuel estimated based on delivered energy cost of other fuels Current woodfuel price presented for comparison

21 Delivered Fuel Costs to Commercial Sector Fuel Comparison Mean Price Jan '08 Softwood Softwood cent/kwh /GJ Price/ton Price/m3 LPG Oil Natural Gas <73000kWh Wood Pellets Bulk Natural Gas >73000kWh Woodchip (SEI) Average Woodchip Price from roundwood Assumes woodchip supplied at 35% moisture content

22 Delivered Fuel Costs to Domestic Sector Fuel Comparison Mean Price Jan '08 Softwood Softwood cent/kwh Price/GJ Price/ton Price/m 3 LPG Oil Wood Pellets Bagged Natural Gas Peat Briquettes Coal Wood Pellets Bulk Average Woodchip Price Assumes woodchip supplied at 25% moisture content

23 Key issues to develop wood energy market 1. Production of quality wood fuel 2. Farm forest thinning programme 3. Forest residue harvesting programme 4. Continuity of afforestation 5. Guarantee of sustainability

24 In summary Wood energy market is here Particularly commercial heating Biomass CHP Standard shortwood thinning system is commercially viable, but also most expensive trialed Woodfuel is cheap but price should increase Get Thinning & Keep Planting!

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