Wood Energy From Forest To Market Tom Kent Waterford Institute of Technology
Acknowledgements Society of Irish Foresters & Irish Timber Growers Association COFORD Wood Energy Research Group WIT Danish Forestry Extension Mr. Pieter Kofman
Overview Outline the developing markets for wood energy Describe actual & potential wood fuel supply chains Comment on the price potential of wood fuel
Total Primary Energy Requirement in 2006 Source: SEI PJ 000 TOE Oil 376 8744 Natural Gas 168 3907 Coal 69 1605 Peat 29 674 Renewables (wind, hydro) 9 209 Renewables (biomass) 9 209 Imported Electricity 6 140 Total 666 15488 90% imported Divided equally between Electricity, Heating & Transport
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
Developing Wood Heat Markets Delivered through Sustainable Energy Ireland Wood pellet & wood chip fired boilers Greener Homes Scheme: c. 5000 installed boilers & stoves (100MW+) Pilot BioHeat Programme: : 20 installations 10MW capacity ReHeat Programme: : 111 installations 45MW capacity to Dec 07
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
Demand for Solid Biofuels by 2020: 2.5 million tonnes Demand for Solid Biofuels by 2010 Heating 5% of total 284000 Electricity Co-firing with peat (5%) 150000 Moneypoint (trial only) 5000 Total (tonnes) 439000 Other developments: DPellet wood pellet manufacturers, Co. Kilkenny Material demand >100000m 3 /annum Biomass CHP Other markets: Out-wintering pads for cattle
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
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
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
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
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
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
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
Softwood Fuel Production Cost 2006 Harvesting Chipping Cost per m 3 Cost per GJ Pulp wood Harvester/Forwarder Jenz 46.05 6.53 4.3m energywood Harvester/Forwarder Jenz 52.43 6.78 Whole tree Chainsaw Silvatec 14.31 2.03 Whole tree (Chemical) Silvatec Silvatec 24.62 3.58 2007 Harvesting Chipping Cost per m 3 Cost per GJ Pulp wood Harvester/Forwarder MusMax 48.50 7.59 4.3m energywood Harvester/Forwarder MusMax 40.20 6.27 Whole tree Chainsaw Silvatec 26.80 4.28 Whole tree (Chemical) Silvatec Silvatec 39.60 5.91
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
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 27.84 2.85 Whole tree Chainsaw TP280 26.88 2.82 Whole tree Feller buncher/forwarder Jenz 44.36 4.07 2007 Harvesting Extraction Cost per m 3 3m lengths Chainsaw Forwarder 51.65 3m lengths Chainsaw Quad 87.61 3m lengths Chainsaw Horse 133.71 Does not include the cost of marking crop prior to thinning
Forest Energy Project Woodfuel quality testing to European Standards Investigating storage methods Assessing moisture content of standing trees Work study on firewood production methods
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
Delivered Fuel Costs to Commercial Sector Fuel Comparison Mean Price Jan '08 Softwood Softwood cent/kwh /GJ Price/ton Price/m3 LPG 8.4 23.33 271.27 166.94 Oil 7.01 19.47 226.38 139.31 Natural Gas <73000kWh 4.51 12.53 145.65 89.63 Wood Pellets Bulk 3.98 11.06 128.53 79.10 Natural Gas >73000kWh 2.88 8.00 93.01 57.24 Woodchip (SEI) 2.68 7.44 86.55 53.26 Average Woodchip Price from roundwood 3.00 8.33 96.88 59.62 Assumes woodchip supplied at 35% moisture content
Delivered Fuel Costs to Domestic Sector Fuel Comparison Mean Price Jan '08 Softwood Softwood cent/kwh Price/GJ Price/ton Price/m 3 LPG 9.89 27.47 319.39 196.55 Oil 7.01 19.47 226.38 139.31 Wood Pellets Bagged 6.64 18.44 214.43 131.96 Natural Gas 5.47 15.19 176.65 108.71 Peat Briquettes 5.22 14.50 168.58 103.74 Coal 4.5 12.50 145.32 89.43 Wood Pellets Bulk 4.4 12.22 142.10 87.44 Average Woodchip Price 3.00 8.33 114.92 61.29 Assumes woodchip supplied at 25% moisture content
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
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!