An empirical financial analysis of integrating biomass procurement in sawtimber and pulpwood harvesting in eastern Canada

Abstract

Integrating forest biomass procurement in wood procurement for conventional products is a potential means of reducing bioenergy system supply costs. We studied forest harvest operations to procure biomass in the form of trees and tree sections, along with sawtimber and pulpwood. We evaluated the cost-effectiveness of the supply chain with a particular focus on harvest costs and the potential silvicultural savings from a reduced need for site preparation and reforestation. We compared four wood procurement scenarios of increasing intensity (from harvesting only sawtimber to harvesting sawtimber, pulpwood and biomass for bioenergy) at three sites in eastern Canada. Wood procurement intensity did not affect feedstock unit costs (CAD·m−3). At the stand scale, procuring biomass for bioenergy had limited impact on harvest costs (CAD·ha−1) for low-density stands with large trees. In contrast, high-density stands with small trees generated more feedstock for bioenergy (up to 50 m3·ha−1), but biomass procurement increased harvest costs. The cost-effectiveness of the wood supply chain did not vary significantly along the wood procurement intensity gradient we studied when silvicultural savings are considered. The proportion of biomass harvested, stand characteristics, and market conditions proved to be important factors that influence wood procurement profitability.