Supply of Woody Residuals in the Northwest Region of Arkansas (2017) for Energy Production

Abstract

Abstract Northwest Arkansas was identified as a region of interest for the production of wood-fueled electrical power due to its pervasive timber industry and need for cost-effective forest management. It is believed that by utilizing wood residuals produced from sawmill operations, a stable source of revenue could be provided to local wood processing businesses while simultaneously providing clean energy to the region. In order to evaluate the amount of available material available for energy production, all known mills were surveyed within the 16-county study region for their annual production of sawdust, slabs, and other residual products. Data on production of residuals were developed into supply curves and equations. Supply was found to be inelastic for both hardwood and softwood mill residuals in the region. Given that residual production is a secondary effect of timber processing, supply inelasticity is expected. Increasing the quantity of mill residuals in the region will likely be accompanied by greater-than-proportional price increases. We determined that 96,744 tons of ovendried material would be available annually for purchases at a delivered price of $38 per ton. With this quantity, the region could be expected to support a small combined heat and power energy facility with output between 5 and 10 MW.