Browsing by Subject "bioenergy"

Dairy farms account for a large portion of the greenhouse gas emissions in the planet. Since cow manure provides a good medium for anaerobic digestion, this study analyzes the economic feasibility of installing a biogas plant adjacent to a 200-cow farm in Finland. The farms in this study produce only cow manure and grass silage to feed the digester. This paper focuses in comparing different scenarios such as electricity production for farm needs and the production of biofuels such as compressed biomethane as an additional business activity. After designing the farm economic model and the biogas installation, we provide an economic analysis of each scenario. The first one shows that it is not feasible to run the biogas business model based only on electricity savings for the farm. The second one proves that additional revenue streams such as biofuel production can revitalize and strengthen the financial model of the plant. Then, the sensitivity and reliability of the model is discussed by providing reasons (i.e. Finnish electricity tariff system) for the outcome of the results. The model reinforces the idea that farms must base their biogas business model on alternative side-streams and do not rely on energy production only. For further research, it is recommended that real life farm business models are incorporated as input data and a proven plant and CHP engine energy balance is secured.

Finnish forest industry is in the middle of a radical change. Deepening recession and the falling demand of woodworking industry´s traditional products have forced also sawmilling industry to find new and more fertile solutions to improve their operational preconditions. In recent years, the role of bioenergy production has often been highlighted as a part of sawmills´ business repertoire. Sawmilling produces naturally a lot of by-products (e.g. bark, sawdust, chips) which could be exploited more effectively in energy production, and this would bring more incomes or maybe even create new business opportunities for sawmills. Production of bioenergy is also supported by government´s climate and energy policies favouring renewable energy sources, public financial subsidies, and soaring prices of fossil fuels. Also the decreasing production of domestic pulp and paper industry releases a fair amount of sawmills´ by-products for other uses. However, bioenergy production as a part of sawmills´ by-product utilization has been so far researched very little from a managerial point of view. The purpose of this study was to explore the relative significance of the main bioenergy-related processes, resources and factors at Finnish independent industrial sawmills including partnerships, cooperation, customers relationships and investments, and also the future perspectives of bioenergy business at these sawmills with the help of two resource-based approaches (resource-based view, natural-resource-based view). Data of the study comprised of secondary data (e.g. literature), and primary data which was attracted from interviews directed to sawmill managers (or equivalent persons in charge of decisions regarding bioenergy production at sawmill). While a literature review and the Delphi method with two questionnaires were utilized as the methods of the study. According to the results of the study, the most significant processes related to the value chain of bioenergy business are connected to raw material availability and procurement, and customer relationships management. In addition to raw material and services, the most significant resources included factory and machinery, personnel, collaboration, and geographic location. Long-term cooperation deals were clearly valued as the most significant form of collaboration, and especially in processes connected to raw material procurement. Study results also revealed that factors related to demand, subsidies and prices had highest importance in connection with sawmills´ future bioenergy business. However, majority of the respondents required that certain preconditions connected to the above-mentioned factors should be fulfilled before they will continue their bioenergy-related investments. Generally, the answers showed a wide divergence of opinions among the respondents which may refer to sawmills´ different emphases and expectations concerning bioenergy. In other words, bioenergy is still perceived as a quite novel and risky area of business at Finnish independent industrial sawmills. These results indicate that the massive expansion of bioenergy business at private sawmills in Finland is not a self-evident truth. The blocking barriers seem to be connected mainly to demand of bioenergy and money. Respondents´ answers disseminated a growing dissatisfaction towards the policies of authorities, which don´t treat equally sawmill-based bioenergy compared to other forms of bioenergy. This proposition was boiled down in a sawmill manager´s comment: “There is a lot of bioenergy available, if they just want to make use of it.” It seems that the positive effects of government´s policies favouring the renewables are not taking effect at private sawmills. However, as there anyway seems to be a lot of potential connected to emerging bioenergy business at Finnish independent industrial sawmills, there is also a clear need for more profound future studies over this topic.

Forest energy harvesting has increased significantly in recent years. The extraction of forest energy is usually done with conventional forwarders. The productivity of extraction work is, however, quite poor due to a low material density, which results in a small load size. The objective of the study was to increase the productivity of forest energy extraction via solutions that increase the load size. The first method that was studied involved widening the load space hydraulically. The other solution was based on compressing the load with hydraulically tiltable stakes. The study was conducted as a development study. The field studies were carried out in the summer and autumn of 2011 on harvesting sites managed by Metsähallitus and Metsäliitto in the Jyväskylä region. The study material comprises a total of 139 loads. There was a significant difference in raw density between the logging residues and stump pieces for the widening and compressing load space solutions. For this reason, it does not make sense to compare the two load space solutions to each other. The analyses were based on the reported load scale tonnes. Both load space alternatives increased the load size by 20-30 per cent depending on the assortment. For logging residues, the increase in efficient hour productivity for extraction was 13 per cent and for stump pieces it was 30 per cent. With the compressing load space, the efficient hour productivity for full trees increased by 17 per cent. For logging residues, the increase was 5 per cent and for stump pieces it was 12 per cent. Compression was not a successful method for stump pieces and even for logging residues the benefits were mainly based on the increased load space. Compressing the load is mainly beneficial when extracting full trees. The project was carried out together with Osuuskunta Metsäliitto (now Metsä Group), Metsä-Multia Oy and Ponsse Oyj. The modelling work was done by Metsäteho Oy. This study shows results of Metsähallitus project “Maastokuljetuksen kehittäminen”. The project is part of the EffFibre (Value through Intensive and Efficient Fibre Supply) research and development programme coordinated by Forestcluster Ltd.

Climate change has been found to be one of the most serious challenges humankind has to face in the future. The link between climate change and forests is based on trees’ ability to use carbon dioxide as a raw material for growth. The growing stock sequesters carbon dioxide from the air to itself and ultimately as the forest is harvested the carbon stored is released and it moves from carbon pool of forests to another carbon pool. As the concept of emissions’ trading is applied to the investigation, a price for sequestered and released carbon can be determined. With the market price for carbon dioxide known, a net present value for the revenues and costs during the forest’s rotation period can be calculated. Using wood for different purposes, however, can result in various climatic benefits. These climatic benefits are described in this study by carbon displacement factors which can be used in determining how much the costs of releasing carbon from forests can be deducted. This study investigates the significance of forest management in a stand level from the climate change mitigation point of view in three Norway spruce (Picea abies, L.) and three Scots pine (Pinus Sylvestris, L.) stands as the previous carbon accounting aspects are taken into consideration. Stand Management Assistant (SMA) software is used in the optimization and simulation calculations. The SMA software is used for calculating the carbon accounting net present values and average carbon storages during the rotation periods of the stands included in the study with different intensities of bioenergy biomass harvesting. This way the level of biomass harvesting for bioenergy that returns with the highest net present value for carbon accounting and/or the highest average carbon storage can be calculated. The calculations are made with two interest rates, two carbon dioxide prices and with climatic benefits from bioenergy or with climatic benefits from bioenergy and forest products included. According to the results it can be stated that the intensification of forest biomass recovery for bioenergy production does not always result in the optimal climate change mitigation. The use of Norway spruce is considered of being the most potential forest-based bioenergy source in Finland. As the climatic benefits from bioenergy use were only taken into consideration, the intensification of recovery of Norway spruce biomass for bioenergy seemed to be most profitable. If, however, the climatic benefits from forest products are included in the investigation as well, the bioenergy use of Norway spruce is no longer optimal for the climate change mitigation. The climatic benefits from Norway spruce material use exceed the benefits from bioenergy use. This means that biomass recovery for bioenergy production does not necessarily result in optimal climate change mitigation.