Economics of Biomass Harvest Dean Current and Dalia Abbas Woody Biomass Harvesting Workshop and Equipment Demonstration Grand Marais, MN – August 7, 2006 – 9:00 AM to 4:00 PM

2 Value of biomass sale Profitable sales of biomass for energy Ex. Current sales of forest residue Using biomass sale to lower cost of important forest operations: Brushland harvest for wildlife habitat Fuel reduction (BUG project) – must be removed Thinnings to enhance forest productivity.. sales of biomass may lower cost of treatment allowing more acres to be treated

3 Potential opportunities for loggers Residue harvest for biomass may increase value of sales Increased brushland harvest Thinnings Fuel treatments on National forests State and County?

4 Current tools being developed Cost estimates for different methods of fuel removal Cost estimates of brushland harvest Transport model to allow us to determine costs of transport of biomass Estimation of residue available from logging sales by county and type of harvest (DNR and UMN study)

5 Harvesting options (examples) Cut to length Whole tree harvesting Shearing and bundling Shear, forward and chip or grind

6 SLASH - BUNDLER

7 Cut to length system – Cost/green ton Source: Peterson, D The real cost of extracting logging residue study. Renewable Resources Solutions Sept. 05

8 Hardwood thinning and Aspen clearcut – Cost per green ton Source: Peterson, D The real cost of extracting logging residue study. Renewable Resources Solutions Sept. 05

9 Potential equipment – processing Chippers Some issues with smaller stems Grinders Handle a wider range of materials Bundlers Create log like bundle, easier to store and dry – can be left on site

10 Bandit 1850 Whole Tree Chipper, shown with a separate loader

11 Chippers and Grinders for Forest Residue Source: Mitchell, Dana L Assessment of Current Technologies for Communition of Forest Residues

12 Current and ongoing research IATP/USFS Biomass utilization grant (BUG) Testing a wide variety of techniques for removing fuel (demo in afternoon) USDA - Development of Existing Biomass Resources through Education for Key Supply Bottlenecks USFS – Biomass Utilization Grant (BUG) reduce fuels management costs IREE Minnesota Terrestrial Carbon Sequestration Project – Carbon trading IREE Guidelines for brushland and residue harvest

13 Future support Continued work on economics of: Brushland harvest and guidelines Residue harvest Thinnings for biomass Harvest equipment Transport model Estimations of volume available

Questions? Dean Current Center for Integrated Natural Resources and Agricultural Management (CINRAM University of Minnesota