The Business of
Biomass Removal
Bob Rummer, Research Engineer
Forest Operations Research Unit
Auburn, AL
Outline
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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?
Look around …
Fire …
Rising Costs
Increasing exposure
Climate effects
Insects and Disease …
CSU Extension
It just keeps growing …
* 1.4 Billion ft3/yr
"tot arboreus, tantillus dies"
US Forest Products …
www.usendowment.org
Energy for Our Way of Life
The Cost of Energy …
Energy Security …
Figure from: Resources for the Future, 2007; http://www.rff.org/
National Policy …
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EISA
Biomass R&D
Farm Bill
Natl BAP
www.brdisolutions.com
Greenhouse gases …
$1.20/ton
Economic issues …
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
The Business of Biomass Removals
#1: You need a market
Feedstock Specifications
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Size (max, min, range)
Bark or no bark?
Dirt content
Moisture content
Market interactions
Montana
#2: You need transport
Maximize payload
Reduced tare weight
Lightweight bolsters
Super singles
Alloy frames
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
Stinger-steer Chip Van
San Dimas Technology Development Center, US Forest Service
Reloads
 Two-stage
 Site specific
Containers
Transport Analysis
Transport Analysis
 FoRTS (www.srs.fs.usda.gov/forestops)
 BioSAT (www.BioSAT.net)
Logistics Management
www.trimbleforestryautomation.com
Trucking ~100 ton-mi/gal
Rail ~450 ton-mi/gal
Ocean ~1000 ton-mi/gal
Alaska
Carbon Footprint
 Trucking
 Chipping
 Felling and Skidding
#3: Stump to roadside
 Forest residue collection
 Integrated harvesting systems
 Energywood harvesting
Roadside Chipping
New Chippers
Integrated Biomass
Integrated Functions
 Felling
 Extraction
 Processing
Mississippi
Pick Up Sticks
Square Bales
www.forestconcepts.com
32 x 64 x 48—1600 lbs
Understory Harvesting
Mulch and Bale
www.fldbiomass.com
Stump Harvesting
Smallwood Logging
Multi-function Machines
New Equipment
 Integrating biomass recovery
 Adapting to feedstock requirements
 Finding specialized systems to work in
different places
But—Can You Make Money Doing It?
Selection Pressures
 Natural selection
 “Survival of the fittest”
Selection pressures
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Loss of markets
Tight rates, rising costs of operation
Labor availability
Increasing constraints on operations
Social license
New products
New prescriptions
Strategies for survival
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Specialization
Migration
Adaptation
Mutation
Specialization
 Avoid competition by being the only one
in the niche
 Tightly defined niche
 Significant barrier to entry—special
equipment, special skills, higher cost
Underwater logging
Animal Logging
Contractors
Small-scale logging
Urban Logging
Low-impact logging
Specialization
Opportunities
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Small tracts
Urban wood and salvage
Unique landowner values
Difficult to access tracts
Specialty fiber markets
Specialization
Considerations
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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?
Migration
 Heading to greener pastures
 Opportunities
 Cautions:
 Local conditions may not be any better
 Make sure the problem isn’t you
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?”
Efficiency
 A measure of how much output you get
from a set of inputs
Labor $
20MBF Production Level
$1000
Production Frontier
$2000
Eqpt $
High Capital Efficiency
 Use depreciated equipment
 Substitute labor costs
 Better maintenance programs
 Fully utilize capacity
 Right-sized operations
 Preferred suppliers
 Know your costs
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
Mutation
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Proactive “What if I …”
Trial change to see if there is an edge
Somewhat random
Benefits may not be immediately obvious
What if …chipper/harvester
What if …
What if …
The “Beast”
What if …?
What if …
Evolution and Survival
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Specialize
Migrate
Adapt to changes as they happen
Mutate into new approaches
There will be survivors …
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Be willing to change
Be forward-thinking about the niche
Seek efficiency
Don’t overspecialize
Warnings from Darwin
Questions?