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BC Bugwood Envirochem Services Inc. 6.1.3 Considerations about Residues and Harvesting Bark residues: The pelletizing process cannot use the bark of the wood feedstock to produce so-called “premium” pellets, which have low ash content and achieve a market price of $156 per tonne. Sometimes part or all of the bark can be used within the process for heat or steam production, such as in ethanol production. However, the increased use of these technologies would lead to increased production of bark residues. One possibility to deal with this residue would be to build a medium-scale power plant in the BC Interior that would use up this low-value feedstock. Being a waste product, it could be removed at no cost, only incurring transportation and handling costs for the power plant. Another possibility would be to use the bark in pellets, which could be sold at a lower price to industrial users. However, this would require a higher incentive payment as the market price for such pellets is lower. Harvesting cost: The high harvesting cost was singled out as the main cost component for bugwood processing, apart from capital investment. With such high feedstock costs, it is not possible for all technologies to reach a break-even point under the conditions used for financial modelling in this study. Reducing delivered feedstock costs by reducing transport distances, or pre-processing, will only have minor effects on overall economic performance if most of the bugwood can be sourced within an average distance of 150 km. One other way of reducing feedstock costs would be to mix in low-cost feedstocks, such as (hitherto unused) sawmill waste or hog fuel. In addition, harvesting costs could be reduced by increasing the amount of bugwood harvested. As suggested in the BIOCAP study [BIOCAP 2005], the amount of wood recovered could be increased by 20% if not only roundwood, but also branches were harvested. While it is likely that the branches will cost more than $16 per m3 to harvest (falling and skidding only, not including overhead), their recovery will not increase overhead and other harvest-related costs. , This will tend to reduce the average costs per m3 harvested. The exact parameters would have to be confirmed in a more detailed analysis, but assuming that including non-stem in the harvest operation wood would cost $20/m3, and would increase the total harvest by 20%, then average harvesting costs for bugwood could be reduced substantially. In the Vanderhoof example given in Table 6.1.2, a total harvest of 8,000 m3 per day includes, on average, 3,400 m3 of low-value bugwood. Using the standing volume of sawlog quality pine and other species [Eng 2004], Table 6.1.2 estimates (in a simplified way) the cost savings potential from harvesting the non- stem biomass from these trees, averaging the combined surplus harvest and the low-quality bugwood harvest over the combined costs. The resulting cost is $31.82 (i.e., a 21% cost reduction over the harvest of roundwood alone). This does not include any other non- merchantable wood that is not picked up by sawmills, but is usually burned on-site. Table 6.1.2 Example of Potential Cost Reduction from the Collection of Non-Stem Wood in the Quesnel Area (simplified, year 2011) Harvestable volume (at $40/km3) 20% increase Extra harvest (at $20/m3) Average harvesting cost Low-value bugwood Pine Sawlogs Other Species 3,680 m3 (46%) 1,680 m3 (21%) 2,640 m3 (33%) 736 m3 336 m3 528 m3 1,600 m3 Cost: $32,000 $136,000 + $32,000 = $168,000 : 4,944 m3 = $31.82/m3 However, not all technologies discussed above can actually use this extra wood. Any technology that requires de-barking cannot use this extra feedstock (only “premium” pellets, among the technologies examined). It may also be that processing branches will require new Page 93PDF Image | IDENTIFYING ENVIRONMENTALLY PREFERABLE USES FOR BIOMASS
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