Evaluating the Economic Incentives of Biomass Removal on Site Preparation for Different Harvesting Systems in Australia

Michael Berry,John Sessions

doi:10.3390/f11121370

Abstract

Research Highlights: This study evaluated the impacts of biomass recovery on site preparation costs while proposing a mathematical model and framework to catalogue the benefits depending on harvesting system. Background and Objectives: Biomass as a viable product depends on the requisite costs of production compared to the price paid by relative markets. The removal of biomass directly impacts site preparation costs, and the operational and economic ramifications of this should inform the feasibility of biomass harvesting and market viability. The relative incentives for biomass removal depend on the quantity, presentation, and location of the residues and are thus a result of the commercial sawlog harvesting system. This incentive also largely depends on the required work to prepare a site for replanting. Materials and Methods: This study developed a mathematical model to connect the concepts of site preparation, harvesting, and biomass costs and revenues to determine the maximum net revenue. This work also developed a framework for understanding and calculating the key model inputs related to site preparation and the relative economic site preparation incentive for biomass harvesting. The framework was then illustrated by using industry data from plantations in Queensland, Australia. Results and Conclusions: The analysis identified a potential reduction in site preparation costs due to biomass harvesting of USD 75–450 ha−1, with a greater incentive when using cut-to-length harvesting systems compared with whole-tree harvesting due to the greater volume of residues after cut-to-length harvesting. For example, a removal of 20 t ha−1 of recoverable biomass after cut-to-length harvesting may equate to an economic incentive of USD 22 t−1. Depending on the biomass market, this incentive may represent a significant percentage (or even exceed) the biomass market price. The combination of biomass market price plus site preparation economic incentive may make biomass an attractive market opportunity, even in challenging biomarkets.

Highlights

Forest harvest residues are increasingly seen as potentially viable products for energy production or a critical feedstock for emerging bio-chemical products
In order to populate the key site preparation variables to evaluate the model, we developed a cost matrix framework to evaluate the relative impact of biomass removal on site preparations for future harvest under both CTL and whole tree (WT) harvesting operations in Queensland, Australia
For CTL systems, biomass harvesting incentives are approximated as a lower slash level, with the difference being the economic incentive for biomass removal

Summary

Introduction

Forest harvest residues are increasingly seen as potentially viable products for energy production or a critical feedstock for emerging bio-chemical products. Biomass as a viable feedstock or product depends on the requisite costs of production compared to the price paid by relative markets (e.g., biofuels, pellets, torrefied wood) In this context, biomass is material that is generated during traditional stump-to-truck forest harvesting operations (tree felling, field or landing processing, forwarding, or skidding) and typically includes tops, unmerchantable species, undersized trees, crooked pieces, broken pieces, branches, and leaves. Australia has recently met its 2020 20% renewable energy target (largely via solar and wind) but has no specific goals for domestic bioenergy usage, which is well below the Organization for Economic Cooperation and Development (OECD) average (Australia bioenergy production is 0.9% of total output vs the 2.4% OCED average) [5,6] This regional context highlights the importance of outright financial viability to enable biomass utilization in Australia

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Conclusion