Post on 27-Mar-2015
transcript
Successful small and medium scale wood heating
Key stakeholders Workshop
New Forest, England, 9-10 March, 2011Jyrki RaitilaVTT Technical Research Centre of Finland
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History and background of small and medium sized woodheat in Finland
Started with small boilers (100-300 kW) in early 90’s Municipalities invested in bioheat systems Forest owners/farmers and co-operatives supplied wood chips
Supplied heat mainly for municipal buildings Municipalities were key players in establishment of heating
enterprises Later in the 90’s farmers started becoming heat entrepreneurs
themselves They realized it is the best way to add value to wood chips
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Small and medium size enterprises (SME)
The number of sites has grown from 3 plants in 1992 to 455 in 2009
53 % managed by co-operative or limited companies, the rest by single entrepreneurs or a network of entrepreneurs (2009)
29 % were district heating plants, the rest single building heating plants (2009)
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Number ofheatingsites
410/04/23
SMEs today
The total heat capacity 250 MW (2009)
Annual growth 10% Average boiler capacity 550 kW,
growing Number of industrial customers
increasing 1,000,000 loose-m3 (300,000
tonnes) of wood chips (7 % of the total in Finland)
One plant needs 2,100 loose-m3 (700 tonnes) of chips on average
Heating container. Photo: Megakone Oy
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Wood fuel resources
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Wood is the best fuel source for SME plants
Ownership of forests favors wood heating and entrepreneurship
Private Farmer based Family forests Many forest owners are
entrepreneurs already Used to play an
important role in the owner’s economy
• Vast resources in our forests
• Finland has strong forest industry
• Uses and generates the most of wood based energy
• Effective supply chains of wood
• Use of wood energy in other sectors is growing fast
• Effective co-firing with other solid fuels
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Forest management
Long silvicultural tradition ’Green gold’ – renewable Good management to maximize profit and
benefit – like taking care of your investment Government incentives for management
Subsidies for silviculture Subsidies for some investments Subsidies for planning Tax deductions
Effective management ensures good timber quality
Best revenues from timber sales Price of wood fuel on the increase
Photo: Martti Kuusinen, Tapio
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Effective harvesting technology and methods
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Supply chains
Small diameter trees from thinnings
• Pre-commercial and first thinnings; 30-60 m3/ha (25-50 tonnes)
• Small trees are normally used at heating plants
• Forest machines smaller, agricultural machines can be used too
Small harvester with an accumulating felling head
Chipping with a tractor powered chipper
Different feed stocks
• Logging residues, stumps, non-merchantable wood – large plants
• Small trees – small and medium sized heating plants
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Good business models and heating technology
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Value chain in the forest energy business
Buying of stand
Chipping at roadside
Road transport
Logging
Bundling and forest transport
Forest transport of loose residues
Chipping at plant
Combustion for energy
Chipping at terminal
3 10 13 16 18 45
€/MWh
In each business model it is important to consider which part(s) of the value chain one wants to deal with.
Source: Sikanen 2009, University of Joensuu
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Examples of forest energy business models in Finland
CHIPPING AND SHREDDING/GRINDING AND TRANSPORT
Companies are specialized in using terminal-sized machines or effective chippers
Based on contract work Transport often provided
CHIPPING AND TRANSPORT Companies are specialized in chipping and transporting of
chips Customers are heating plants and organizations supplying
fuel for plants
(BUYING) + HARVESTING + CHIPPING + TRANSPORT Specialized in harvesting, chipping and transporting
energy wood
(BUYING) + HARVESTING + CHIPPING + TRANSPORT + PRODUCTION AND SUPPLY OF HEAT
Turnkey basis = management of the whole value chain Heating entrepreneurship
Source: Sikanen 2009, University of Joensuu
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Heating technology
Reliable domestic boiler technology
Flexibility of fuels; blends, quality variation
Easy to run and maintain
Turnkey contracts; different parts of the system match each other
Good service Enable unmanned operation
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Incentives
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Investment grants and subsidies
Government can give max 35% investment grants to strategic and/or rural heating plant investments
Harvesting of small trees subsidized for silvicultural reasons
Chips made from small wood very good fuel for small heating plants
No tax on energy generated with renewables (CHPs receive bonus)
Strong R&D work supported by the government and companies
A Ponsse harwarder. Photo: Ponsse Oy
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Observations & suggestions
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Woodfuel supply chains
Right equipment and machines Mechanization should depend on volumes
and markets Good training needed for operators Networking and contracting
Every supplier does not need to own machines
Integration with round wood harvesting More volume and efficiency
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Storage
Feed stock Proper seasoning of
woodfuel before processing
Only short time storage as chips (biodegrading of chips)
Chips Easy access
to stores Good, robust
conveyors
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Boilers: Sizing and technology
Sizing in Finland: 60-70 % of max output
Smaller investment Better efficiency of boiler If sized to max capacity,
summertime use difficult Simple robust technology in
Finland Easy to maintain More flexibility in fuels
Good control and monitor system
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Quality management
Wood chip supply Good (proper) raw
materials Good harvesting chains Good chippers Good storage pay for energy (MWh)
Apply standards Agree on control methods Keep it simple and practical
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Business models
Key questions Who invests? Who operates? Who gains profit?
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Business models (2)
Large energy companies Strong business and know-how, a lot of own capital High demand for profit, low local involvement
Municipal energy companies Strong local involvement and decision making Profit goes to municipality
Local small enterprises Use own machines and resources (additional income) Learn by doing, limited to scale
Co-operatives Strong local involvement and wide ownership Raw materials in ’own hands’ Limited to place, usually many passive members
Source: Asko Puhakka, PKAMK
2310/04/23
VTT creates business from technology