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BC Bugwood Envirochem Services Inc. investment and slight modifications of the equipment or logistics to pre-process the wood feedstock. Premium pellets cannot use bark, i.e. only lower-quality, industrial heat pellets could be made with non-stem wood. Likewise, ethanol requires de-barking, but could use some of the branches to provide extra process heat. Cellulignin, bio-liquid production, CHP and gasification (methanol or pipeline gas) can use the non-stem wood. While harvesting costs may be reduced, a specific analysis would have to account for changes in transportation and logistics as well. Transporting smaller branches may require special equipment (on-site chipping may be the preferred option), and the average truck payload may be reduced, increasing transportation cost. In addition, collecting branches from both bugwood and green trees may require (increased) pre-drying of the feedstock in some cases. Harvesting cost reductions are also likely from the use of non-merchantable wood usually logged and skidded by forestry operations. Logging companies will generally sort the stems harvested into two groups, i.e. those that can be used in their operations and those that cannot because they are different tree species etc. If, for example, 10% of the wood harvested would be non-merchantable and 20% would be low-quality bugwood, the combined harvest of wood for energy purposes would increase by 50%, reducing harvesting cost for the energy operation by one-third. 6.2 Recommendations Bugwood on public lands is a potential liability and responsibility for the province. It has become a major issue for the provincial government to address and represents a significant cost, whether it is addressed or ignored. Leaving the problem unaddressed will lead to long- term loss of healthy forests because the regeneration of new forests in areas with standing dead trees is inhibited, and will result in markedly reduced harvests of merchantable wood after about 15 years. This would inevitably lead to job and government revenue losses from the forest resources industry. In addition, old bugwood stands represent a wildfire risk. Forest fires are very expensive to control, endanger communities and pollute the environment. Wildfires result in the loss of carbon contained in the wood, making it unavailable for energy uses to displace fossil fuels and their associated GHG emissions. Controlled combustion and energy capture provide a useful and valuable alternative for the bugwood but without the particulate and other emissions of wildfires. There is thus a public cost involved with the bugwood problem, either now or in the future. However, the bugwood liability can be turned into an opportunity for economic development. This study has determined that several technologies exist or are emerging that can convert bugwood into an energy and/or chemical resource. The application of these technologies could create a new industry, employment, and export opportunities for both the wood-derived products and the related technologies. 6.2.1 Technologies Some of the technologies examined are able to yield returns on investment that should be sufficient, with limited incentives, to attract private investment provided that a suitable policy in regards to harvesting bugwood is established in BC. This is true in particular for • Small-scale combined heat and power (CHP) plants; • The Lignol (ethanol and lignin) process; and • Wood pellets or cellulignin. Page 94PDF Image | IDENTIFYING ENVIRONMENTALLY PREFERABLE USES FOR BIOMASS
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