Co-operation and Integration in Wood Energy Production

Abstract The aim of the study was to investigate the effects of co-operation and integration in large-scale wood energy production. The total procurement cost and yield of forest chips (small-sized trees and logging residues) delivered to the consumption plant were calculated for three harvesting strategies. In Alternative 1 individual stands were harvested. In Alternative 2 the harvesting of smallsized trees and logging residues was integrated within forest holdings. Alternative 3 included both co-operation between neighbouring forest holdings and the integration of harvesting. In integrated harvesting, small trees and logging residues were jointly chipped at intermediate storages. The study material consisted of forest management planning information and forest maps, in digital form, for privately owned areas totaling 15000 ha, of which 3720 ha was forest. GIS data and costs models were used in constructing a production model for a power plant consuming 100000 m3 of forest chips per year. Integration raised the harvestable small energy wood yield by 30.5% (Alternative 2) and 31.5% (Alternative 3). The corresponding values for all forest chips were 12.9% and 13.3%. The average cost of forest chips was 3.4% lower in Alternative 2 and 4.9% lower in Alternative 3 than in individual stand harvesting. The cost effects on the total production cost of small tree chips were greater than on the production cost of logging residues. Co-operation and integration broaden the raw-material base for wood energy and make the supply more even.