Existing Wood-Based Production and Logistics Infrastructure
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Transcript of Existing Wood-Based Production and Logistics Infrastructure
Existing Wood-Based Production and Logistics Infrastructure
Tom Barnes, Executive Director, Michigan Association of TimbermenTom Barnes, Executive Director, Michigan Association of Timbermen
MREP Bioenergy & Geothermal Committee MeetingMichigan Public Service Commission
6 October 2010Traverse City Michigan
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Logging CapacityLogging Capacity
Michigan has roughly 1500 Logging CompaniesMichigan has roughly 1500 Logging Companies Harvesting approximately 4,000,000 cords annuallyHarvesting approximately 4,000,000 cords annually Two primary harvesting systems are Cut-to-Length (CTL) Two primary harvesting systems are Cut-to-Length (CTL)
Mechanized and Whole Tree MechanizedMechanized and Whole Tree Mechanized Products range from high valued veneer logs to energy chipsProducts range from high valued veneer logs to energy chips
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Logging CapacityLogging CapacityChallengesChallenges
Dwindling forest industry markets. Three pulp mills lost Dwindling forest industry markets. Three pulp mills lost between 2005 and 2006. One million tons of consumption between 2005 and 2006. One million tons of consumption lost!lost!
Operating cost continue to riseOperating cost continue to rise Lack of stability in existing marketsLack of stability in existing markets Work force challengesWork force challenges Finding or creating new markets to maintain our logging Finding or creating new markets to maintain our logging
capacitycapacity End result will and are going out of businessEnd result will and are going out of business Concern of having enough logging capacity once things turn Concern of having enough logging capacity once things turn
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OpportunitiesOpportunities Michigan has the 5Michigan has the 5thth largest timberland largest timberland
resourceresource
Woody biomass includes entire living and Woody biomass includes entire living and dead trees, brush, stems, logs and forest dead trees, brush, stems, logs and forest product manufacturing residuesproduct manufacturing residues
Some woody biomass components are un-Some woody biomass components are un-utilizedutilized
Existing infrastructure utilizing and Existing infrastructure utilizing and producing woody biomassproducing woody biomass
Potential for integrated forest Potential for integrated forest manufacturing processes to utilize manufacturing processes to utilize multiple forms of fibermultiple forms of fiber
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Michigan Forest Inventory AnalysisMichigan Forest Inventory Analysis2004 FIA Data – Million Oven Dry Tons, Percent2004 FIA Data – Million Oven Dry Tons, Percent
Saplings (trees < 5"), 79, 10%
Cull & Dead Bole (trees >= 5"), 45, 6%
Growing Stock Bole (trees >= 5"), 482,
60% Cull & Dead Tops/Limbs/Stumps (trees >= 5"), 16, 2%
Growing Stock Tops/Limbs/Stumps (trees >= 5"), 172,
22%
Source – LaCourt, Donna .2007. Wood Fiber and the Bioeconomy. Powerpoint Presentation. September 11, 2007 04/20/2304/20/23 55
Forestland OwnershipForestland Ownership
Forest Service15%
State and Local20%
Other Federal2%
Private63%
Source – LaCourt, Donna .2007. Wood Fiber and the Bioeconomy. Powerpoint Presentation. September 11, 2007
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Growth to Removal RatiosGrowth to Removal Ratios
3.17
4.91
2.8
3.33
0
1
2
3
4
5
6
Total Timberland National Forest State Private
Source – LaCourt, Donna .2007. Wood Fiber and the Bioeconomy. Powerpoint Presentation. September 11, 2007
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Availability of Unharvested GrowthAvailability of Unharvested Growth
Availability of Unharvested Growth
45%
17%
12%
4%
0%
18%2%
Individual Individual unavailableState State unavailableNational Forests National Forests unavailableCounty and Municipal County and Municipal unavailable
SocialSocial Public policy impacts fiber availability on public and private landsPublic policy impacts fiber availability on public and private lands Landowner behavior research indicates only 17% of Michigan non-industrial/non-institutional landowners Landowner behavior research indicates only 17% of Michigan non-industrial/non-institutional landowners
unwilling to harvestunwilling to harvest EconomicEconomic
Competition with other marketsCompetition with other markets Delivered wood costDelivered wood cost
Un-harvested Growth by Ownership13%
0%
18%
2%67%
National Forests
Other Federal
State
County and Municipal
Individual
Source – LaCourt, Donna .2007. Wood Fiber and the Bioeconomy. Powerpoint Presentation. September 11, 2007
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LegendLargest SawmillsEnergyHardboardOSB
Pulpmill
VeneerOther Primary Mills
GS Removals ft0 - 45000004500001 - 90000009000001 - 1350000013500001 - 1800000018000001 - 22500000
3
Forest Product Primary Millsand Growing Stock Removals
USDA Forest Service Forest InventoryMapmaker Version 1.0 Michigan 2002RPA year Volume of All Removals fromGrowing Stock Inventory (cuft)
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MillMill TypeType LocationLocation VolumeVolume SpeciesSpecies
MenashaMenasha PulpPulp OtsegoOtsego 400 MTons400 MTons Mixed Hardwood, Mixed Hardwood, Sawmill ChipsSawmill Chips
Aspen Bay Pulp & FibreAspen Bay Pulp & Fibre PulpPulp MenomineeMenominee 400 MTons400 MTons Softwood, Aspen & Softwood, Aspen & MapleMaple
SAPPI Fine PaperSAPPI Fine Paper PulpPulp MuskegonMuskegon 500 MTons500 MTons Aspen & Mixed Aspen & Mixed HardwoodHardwood
GFP Strandwood Molding CorpGFP Strandwood Molding Corp Particle BoardParticle Board HancockHancock 20 MTons20 MTons AspenAspen
Georgia-PacificGeorgia-Pacific Particle Board Particle Board GaylordGaylord 600 MTons600 MTons Mixed Hardwoods, Mixed Hardwoods, Aspen, Red and Jack Aspen, Red and Jack Pine, Mill ResiduesPine, Mill Residues
Buskirk Lumber CoBuskirk Lumber Co SawmillSawmill FreeportFreeport 50 MTons50 MTons HardwoodsHardwoods
Michigan Primary Mill Closures From 2003 To The Present
Source – Weatherspoon, Anthony. 2007. Michigan Woody Biomass Inventory. Powerpoint Presentation. May 8, 2007
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Harvesting TypesHarvesting TypesCut-to-lengthCut-to-length
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Harvesting CostHarvesting CostCut-to-LengthCut-to-Length
Cutting & Cutting & ForwardingForwarding
($/Ton)($/Ton)
TransportationTransportation
($/Ton)($/Ton)
Transportation Per MileTransportation Per Mile
After First 20 MilesAfter First 20 Miles
($/Mile)($/Mile)
$15.25$15.25 $9.75$9.75 $0.15$0.15
Source – Personal communication with MAT Board Members
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Operational Cost To Harvest Forest ResidueOperational Cost To Harvest Forest Residue(Cut-to-Length Harvest(Cut-to-Length Harvest11))
** Sold tops on landing to a commercial chipping operation
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Whole TreeWhole Tree
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Harvesting CostHarvesting Cost
Cutting, Skidding & Cutting, Skidding & ChippingChipping
($/Ton)($/Ton)
TransportationTransportation
($/Ton)($/Ton)
Transportation Per MileTransportation Per Mile
After First 20 MilesAfter First 20 Miles
($/Mile)($/Mile)
$15.25$15.25 $8$8 $2$2
Source – Personal communication with MAT Board Members
Cutting & Cutting & SkiddingSkidding
($/Ton)($/Ton)
Loader CostLoader Cost
($/Ton)($/Ton)
TransportationTransportation
($/Ton)($/Ton)
Transportation Per MileTransportation Per Mile
After First 20 MilesAfter First 20 Miles
($/Mile)($/Mile)
$8$8 $2$2 $9$9 $0.50$0.50
Whole Tree including Chipping
Chainsaw Logging
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Operational Cost To Harvest Forest ResidueOperational Cost To Harvest Forest Residue(Whole Tree Harvest(Whole Tree Harvest11))
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Biomass InventoryBiomass Inventory
TOTAL WOODY BIOMASS ON TIMBERLAND IN MICHIGAN (2005 FOREST INVENTORY ANALYSIS)
86
126
167
87
32
47
58
31
7 7
1811
3 36 4
0
20
40
60
80
100
120
140
160
180
EUP WUP NLP SLP
FIA SURVEY UNIT
MIL
LIO
N T
ON
S
'MERCH_BIOMASS_GS_TMLD' 'TOPS_LIMBS_STUMPS_GS_TMLD'
'MERCH_BIOMASS_CULL_TMLD' 'TOPS_LIMBS_STUMPS_CULL_TMLD'
Source – Weatherspoon, Anthony. 2007. Michigan Woody Biomass Inventory. Powerpoint Presentation. May 8,
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Growing stock (commercial)Growing stock (commercial) CullCull SpeciesSpecies Possible at county levelPossible at county level Does not address availabilityDoes not address availability
Source – Weatherspoon, Anthony. 2007. Michigan Woody Biomass Inventory. Powerpoint Presentation. May 8, 2007
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John Deere Wood Energy Harvester John Deere Wood Energy Harvester 1490D1490D
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Bundling CostBundling Cost22
Potential production rate of 20 bundles per machine hour (8 bone dry tons {bdt}).
Cost of colleting biomass and creating “Composite Residue Logs” (CRL) would be about $16 per bdt.
Forwarding is estimated to cost $5 per bdt based on 4 loads per productive hour.
With a hauling cost of $0.10 to $0.20/ton-mile, a 50-mile haul would add $5 to $10 per bdt.
Chipping at the energy facility may incur an additional $3 per bdt.
Total cost to deliver chipped hog fuel from CRL’s would be about $29 to $34 per bdt.
Approximately half the total delivered cost is due to bundling function.
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Bundle FactsBundle Facts33
Standard Bundle 30” x 10’Standard Bundle 30” x 10’ Standard Bundle weighs an average of 1,000lbStandard Bundle weighs an average of 1,000lb Average Production 15 – 30 Bundles/hourAverage Production 15 – 30 Bundles/hour Standard Bundle contains enough heat energy to Standard Bundle contains enough heat energy to
produce 1MW of electrical powerproduce 1MW of electrical power Approximately 16 bundles could power the average Approximately 16 bundles could power the average
home for 1 yearhome for 1 year 2 standard bundles equals the amount of energy in a 2 standard bundles equals the amount of energy in a
refined barrel of oil and equal 6 mcf of natural gasrefined barrel of oil and equal 6 mcf of natural gas Biomass is carbon neutralBiomass is carbon neutral
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Retail Price for the 1490D is $450,000.Retail Price for the 1490D is $450,000. Hourly owning cost would be roughly Hourly owning cost would be roughly
$58/scheduled machine hour (smh).$58/scheduled machine hour (smh). Operating cost includes fuel, lube, repair and Operating cost includes fuel, lube, repair and
maintenance, chainsaw and twine operating maintenance, chainsaw and twine operating cost would be $50/smhcost would be $50/smh
Adding Labor total cost to operate $130/smh.Adding Labor total cost to operate $130/smh.
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SummarySummary
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MarketsMarketsBiomassBiomass
Co-GenerationCo-Generation Combined Heat and Power FacilitiesCombined Heat and Power Facilities Wood pellet productionWood pellet production
Residential GradeResidential Grade Industrial GradeIndustrial Grade
Wood to Ethanol ProductionWood to Ethanol Production
TraditionalTraditional High and Low Grade SawmillsHigh and Low Grade Sawmills Pallet MillsPallet Mills Board Production – OSB, Particle, Paneling etcBoard Production – OSB, Particle, Paneling etc PulpPulp04/20/2304/20/23 3232
Timber Harvesting Issues Timber Harvesting Issues Transportation Transportation
Biomass facility delivery distance less then 50 milesBiomass facility delivery distance less then 50 miles Rising fuel cost will increase production costsRising fuel cost will increase production costs
Stumpage priceStumpage price Ever increasing stumpage pricesEver increasing stumpage prices Many cases stumpage prices for forest residue are Many cases stumpage prices for forest residue are
excessiveexcessive Delivery PricesDelivery Prices
Prices for biomass are typically lower then production costPrices for biomass are typically lower then production cost Raw material cost typically largest expenseRaw material cost typically largest expense
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Harvest Removal ConcernsHarvest Removal Concerns
Site QualitySite Quality Nutrient depletionsNutrient depletions Increased site temperaturesIncreased site temperatures Greatest impact on poor sitesGreatest impact on poor sites
Deer/Elk Densities Deer/Elk Densities Increased browsing on natural regenerationIncreased browsing on natural regeneration Forest residue protects regenerationForest residue protects regeneration
Seed SourceSeed Source Removal of forest residue could impact natrual regneration Removal of forest residue could impact natrual regneration
for certain tree species, ie Jack Pine.for certain tree species, ie Jack Pine.
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Benefits of Biomass RemovalBenefits of Biomass Removal
Creates a “park-like” appearance for the landownerCreates a “park-like” appearance for the landowner Job creation in rural communitiesJob creation in rural communities Hazardous fuel reduction, lowers fire riskHazardous fuel reduction, lowers fire risk Markets for non-merchantable fiberMarkets for non-merchantable fiber
Salvage Timber – insect or fire damageSalvage Timber – insect or fire damage Lowers dependency on petroleum based productsLowers dependency on petroleum based products Increases utilization of our renewable resourceIncreases utilization of our renewable resource
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Wood Is Good!Wood Is Good!
Wood is available year round.
Logging & transportation infrastructure for wood is well developed and proven.
Forestry for energy production is environmentally sound
Less site disturbance We’ll make more
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Any Questions?
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ReferencesReferences
1.1. Peterson, Donald; The Cost of Extracting Logging Peterson, Donald; The Cost of Extracting Logging Residues Residues for Biomass Fuels, Great Lakes Region, for Biomass Fuels, Great Lakes Region, September September 2005.2005.
2.2. Rummer, Bob; Len, Dan; and O’Brien, Obie; Rummer, Bob; Len, Dan; and O’Brien, Obie; Forest Forest Residues Bundling Project: New Technology for Residues Bundling Project: New Technology for Residue Residue RemovalRemoval, May 2004. Southern Research , May 2004. Southern Research Station, Auburn, Station, Auburn, Alabama.Alabama.
3.3. Timber Jack 1490D Product Brochure.Timber Jack 1490D Product Brochure.4.4. The use of trade names or references to specific The use of trade names or references to specific
company or products in this publication does not imply company or products in this publication does not imply endorsement; they are intended only as an aid to the endorsement; they are intended only as an aid to the reader.reader.
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