The Business of Biomass Removal

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The Business of Biomass Removal

• Bob Rummer, Research Engineer

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Outline

• Look around at some exogenous factors
• Developments in biomass
• New technology for harvest and transport
• Business of forest operations
• Are you ready for the future?

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Look around
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Fire
Rising Costs Increasing exposure Climate effects
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Insects and Disease
CSU Extension
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It just keeps growing
1.4 Billion ft3/yr
"tot arboreus, tantillus dies"
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US Forest Products
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www.usendowment.org
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Energy for Our Way of Life
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The Cost of Energy
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Energy Security
Figure from Resources for the Future, 2007
http//www.rff.org/
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National Policy

• EISA
• Biomass RD
• Farm Bill
• Natl BAP

www.brdisolutions.com
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(No Transcript)
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Greenhouse gases
1.20/ton
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Economic issues
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So

• We must address biomass removal in fire-prone
  forests
• Energy is the opportunity to use biomass
• Important connections to the Forest Products
  Industry
• Constrained by economic reality

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1 You need a market
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Feedstock Specifications

• Size (max, min, range)
• Bark or no bark?
• Dirt content
• Moisture content

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Market interactions
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2 You need transport
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Maximize payload
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Reduced tare weight
Lightweight bolsters
Super singles
Alloy frames
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What is a ton worth?

• Assume trucking is paid 0.20/ton-mi
• Multiply by total haul miles/yr

0.20/ton-mi 50 mi/trip 2.0 trips/day 250
days 5000/yr
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Stinger-steer Chip Van
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San Dimas Technology Development Center, US
Forest Service
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Reloads

• Two-stage
• Site specific

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Containers
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Transport Analysis
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Transport Analysis

• FoRTS (www.srs.fs.usda.gov/forestops)
• BioSAT (www.BioSAT.net)

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Logistics Management
www.trimbleforestryautomation.com
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Trucking 100 ton-mi/gal
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Rail 450 ton-mi/gal
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Ocean 1000 ton-mi/gal
Alaska
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Carbon Footprint

• Trucking
• Chipping
• Felling and Skidding

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3 Stump to roadside

• Forest residue collection
• Integrated harvesting systems
• Energywood harvesting

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Roadside Chipping
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New Chippers
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Integrated Biomass
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Integrated Functions

• Felling
• Extraction
• Processing

Mississippi
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Pick Up Sticks
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Square Bales
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www.forestconcepts.com
32 x 64 x 481600 lbs
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Understory Harvesting
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Mulch and Bale
www.fldbiomass.com
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Stump Harvesting
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Smallwood Logging
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Multi-function Machines
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New Equipment

• Integrating biomass recovery
• Adapting to feedstock requirements
• Finding specialized systems to work in different
  places

ButCan You Make Money Doing It?
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Selection Pressures

• Natural selection
• Survival of the fittest

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Selection pressures

• Loss of markets
• Tight rates, rising costs of operation
• Labor availability
• Increasing constraints on operations
• Social license
• New products
• New prescriptions

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Strategies for survival

• Specialization
• Migration
• Adaptation
• Mutation

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Specialization

• Avoid competition by being the only one in the
  niche
• Tightly defined niche
• Significant barrier to entryspecial equipment,
  special skills, higher cost

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Underwater logging
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Animal Logging Contractors
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Small-scale logging
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Urban Logging
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Low-impact logging
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Specialization Opportunities

• Small tracts
• Urban wood and salvage
• Unique landowner values
• Difficult to access tracts
• Specialty fiber markets

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Specialization Considerations

• Limited competition
• Focus is on the capability not cost
• Opportunity to price work at premium
• Your costs may be higher (/ton)
• Non-monetary incentives/drivers
• Security of the niche?

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Migration

• Heading to greener pastures
• Opportunities
• Cautions
• Local conditions may not be any better
• Make sure the problem isnt you

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Adaptation

• Reactive How do I
• Competition within the bigger niche
• Adaptation competitive edge

If there was another logger working in the same
area with the same mix of equipment, which of you
would take home more money at the end of the
month? Which of you would still be in business
in a year?
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Efficiency

• A measure of how much output you get from a set
  of inputs

Labor
20MBF Production Level
Production Frontier
Eqpt
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High Capital Efficiency

• Use depreciated equipment
• Substitute labor costs
• Better maintenance programs
• Fully utilize capacity
• Right-sized operations
• Preferred suppliers
• Know your costs

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Adaptation

• Changing productive capacity (losing eqpt and/or
  people)
• Finding alternative utilization opportunties
• Fine-tuning operations
• Balancing systems
• Planning
• Transport efficiency
• Changing the type of equipment

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Mutation

• Proactive What if I
• Trial change to see if there is an edge
• Somewhat random
• Benefits may not be immediately obvious

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What if chipper/harvester?
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What if
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What if
The Beast
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What if ?
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What if
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Evolution and Survival

• Specialize
• Migrate
• Adapt to changes as they happen
• Mutate into new approaches

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There will be survivors

• Be willing to change
• Be forward-thinking about the niche
• Seek efficiency
• Dont overspecialize

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Warnings from Darwin
Extinction Happens
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Questions?