Wood biomass recovery cost under different harvesting methods and market conditions

ABSTRACT

Harvesting woody biomass, often considered a by-product, poses a major challenge in terms of low operational productivity and revenue. However, woody biomass (branches, treetops, and small-diameter trees or SDT) is gaining global attention for its multifaceted uses in soil reclamation, renewable energy production, and carbon offsetting. The operational cost of harvesting woody biomass is a crucial factor influencing the economic feasibility of harvesting and can fluctuate substantially depending on the cost apportioning method used. The objectives of this study were 1) to estimate the cost of producing pulpwood chips from SDT; 2) to examine the factors influencing cost and productivity of whole-tree (WT) and hybrid cut-to-length (Hyb-CTL) treatments; and 3) to compare and estimate the cost of producing sawlog and chips from hardwood pulp with two cost apportioning methods. The total harvesting cost was 53% higher in Hyb-CTL (US$ 17.30 m⁻³) than that of WT (US$ 11.30 m⁻³). The cost of producing wood chips from hardwood pulp as a by-product (US$ 3.07 m⁻³) was half of the cost calculated using the joint-products allocation method (US$ 7.65 m⁻³). The cost of producing wood chips utilizing exclusive product allocation (US$ 47.53 m⁻³) was four times the cost of producing sawlogs (US$ 11.23 m⁻³). This study provides working values that can enable timberland managers and operational foresters to evaluate the cost of harvesting woody biomass under different market conditions (i.e., demand for woody biomass). This study can also aid managerial decisions regarding silvicultural prescriptions and to help efficiently manage stands that have large proportions of SDT.

KEYWORDS:

• By-product allocation
• comminuted wood products
• exclusive product allocation
• joint product allocation
• timber harvesting
• whole-tree

Acknowledgements

We would like to thank Brian Edward Roth, Stephen Dunham, Jenna Zukswert, and other faculty at the University of Maine, Orono for the support and help in various stages of the study. Our appreciation goes to all the foresters (Matt Stedman and Brian Holland), contractors, and machine operators associated with Irving Woodland LLC, Ashland, for their involvement in the operational aspect of the study. We would like to express our gratitude to Harikrishnan Soman, Alex K. George, Ashish Alex, and Kevaughn Smith for assisting in various aspects of data collection and editing.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This project was supported by US Department of Agriculture/Agricultural Research Service, Forest Products Research Project #5407527, US Department of Agriculture National Institute of Food and Agriculture (McIntire-Stennis project number #ME041909 through the Maine Agricultural and Forest Experiment Station), and the Cooperative Forestry Research Unit (CFRU) Cooperative Forest Research Unit.