Title:
Economies of Scale in Forest-Based Biomass Supply Chains from Young Stand Thinnings in Finland
Author(s):
Siintola, A., Dahlin, B., Asikainen, A.
Document(s):
Paper
Poster
Abstract:
Commitments to renewable energy targets oblige Finland to increase its share of renewable energy production to 38% of total energy production by the year 2020. Wood-based energy production is heavily dependent on the wood use of the forest industry, as by-products from paper and sawmills are often used in energy production. Predictions of stagnating or decreasing industrial wood use have motivated the search for wood-based energy sources not directly linked to the industrial wood use quantities. Thinnings from young stands have been suggested as a solution for increasing the future share of renewable energy production without an immediate need for increasing industrial loggings. The main barrier for increasing the use of wood from young thinnings for energy production is currently its poor cost efficiency. The cost of biomass at the end-use facility is significantly higher for wood from young thinnings than for other biomass fractions. The present study investigates the cost efficiency improvement possibilities of energy wood supply chains from young stand thinnings through economies of scale. Based on the results it can be stated that after the initial drop in unit costs as the production is begun, there are no further cost efficiency improvement possibilities through economies of scale.
Keywords:
biomass, costs, economics, forestry, wood chips, supply chain
Topic:
Biomass resources
Subtopic:
Biomass potentials and biomass mobilisation
Event:
21st European Biomass Conference and Exhibition
Session:
1BV.2.25
Pages:
279 - 286
ISBN:
978-88-89407-53-0
Paper DOI:
10.5071/21stEUBCE2013-1BV.2.25
Price:
FREE
