conference presentation

1. Supply potential and cost of forest biomass
for the small and large demand sites
at the regional level in Finland
Karttunen K., Gaudel R., Laihanen M., Karhunen A. & Ranta T.
FORMEC 2018 – Improved Forest Mechanisation:
mobilizing natural resources and preventing wildfires
September 25th -27th, 2018. Madrid, Spain

2. Introduction
Material and methods
Study scenarios
Data
Methods
Results
Availability
Cost
Innovations
Conclusion
Content

3. Introduction
The digital systems of forestry management are developing fast
• Airborne laser-scanning has been utilized in Finland’s forest inventory
• There are many enterprises that developing solutions for utilizing the laser scanned data
Project: “Development of a curtomer-oriented auction service for the local digital wood trade in the forest sector”
• Funding: AIKO “Regional innovations and testing” (part of Finnish Government´s “top projects”)
• Developing of wood trading system using laser scanning
- Site-dependent analysis
- Survey of forest owners
- Concept for new wood trading service
Presentation:
1. How can we utilize open laser scanning information?
2. How can we get more detailed regional information for special wood?
3. What is the availability of wood and cost for the alternative user sites?
Keywords: forest biomass, supply, demand, laser scanning, cost
“The easiest way of wood trading”

4. Province of South Savo in Eastern Finland
• Centralized (CHP) power
plants and decentralized
small heating plants
• Centralized areas for large
saw and plywood mills (for
example the biggest fir
plywood mill in Europe, UPM
Pellos)
• Decentralized small wood
users
• No any pulp & paper factories
is one of the most important wood supply area and mechanical wood users in Finland!

5. Study scenarios (availability):
1. Theoretical
2. Technical
3. Economic-ecologic
4. Willingness to sell
Forest biomass from final cuttings, 2018 (cost):
Roundwood
Traditional
Special wood
Energywood
Logging residues
Stumps
Area
Mikkeli municipality
Comparison of South Savo
-> Finland (possible)
Material and methods (Study scenarios)

6. The final cutting potentials were analysed
by using open laser scanning data:
https://www.metsaan.fi/paikkatietoaineistot
The data was opened in the beginning of
March 2018
The following map links have been
available for couple of months with some
detailed information (financial support for
pre-commercial thinning, “”Kemera
funding”)
Material and methods (Data)

7. Measuring:
Roundwood: Laser scanning data
Special wood: % estimates from cuttings of Forestry owner´s associations
Energy wood: The calculation factors of stumps and logging residues separated for branch and foliage were measured
according to for basic density (kg/m3), net calorific value (MJ/kg) and moisture (%).
Restrictions were analysed according to scenarios
Availability analysis…
Cost:
Cutting productivities of roundwood based on a study of Nurminen et al. (2006).
Roundwood forwarding productivities based on a study of Nurminen and Heinonen (2007).
Machine costs were based on earlier studies and estimates.
Stumpage price was based on forest owner´s associations collected data, which separate traditional and special wood
prices.
Transportation cost: Early studies…
Site-dependent analysis:
Data was included in site-dependent softwere (ArcGis)
Some detailed special wood analysis:
Special wood species
• Alternative stands with special wood species
Special wood dimensions
• Potential pole stands:
Pine stands, Height >26m, Diameter >28 cm
Material and methods (Methods)

8. Availability analysis
From theoretical to practical level:
Scenario Availability Traditional* Special wood** Logging residues Stumps
1 Theoretical 100 % 0 % 100 % 100 %
2 Technical 100% (- Special wood) 4-12% 70 % 70 %
3 Economic-ecologic 100% (- Special wood) 4-12% *** ***
4 Willingness to sell 25% (- Special wood) 4-12% 75 % 50 %
* Traditionalincluding timber and pulp wood dimensions for spruce and pine dominated stands
** Special wood including the share of special dimensions for timber and small trees according to cutting data
*** Stand restrictions according to size (>1 ha for pine dominated stands) and fertilization of site types (dryish and dry stands excluded)
Energy woodRoundwood

9. Results (Availability)
South Savo province vs. Mikkeli municipality
Roundwood: Energy wood:
Mikkeli municipality, supply potential
(2018):
• Roundwood: Theoretical final
cutting proposal potential for
year 2018 is huge (8 Mm3)
• Special wood: Potential from
final cutting areas was
estimated ~10% of all cuttings
(0.7 Mm3)
• Willingness to sell (WTS=25%)
can be underestimation for
roundwood (~2 Mm3)
• Energywood: Theoretical
(6 Mm3) vs WTS potential
(0.5 Mm3)
~8 Mm3
->WTS:2 Mm3
->WTS:0.5Mm3
~6 Mm3

10. Supply at South Savo (2017):
Supply at South-Savo was 7 Mm3
(roundwood) and 0.6 Mm3 (energywood)
Total removal and growth at South Savo 9
Mm3!
Demand (2017):
Demand of South-Savo was totally 3.2 Mm3,
of which 2.8 Mm3 (roundwood) and 0.4 Mm3
(energywood)
Demand of Mikkeli municipality was ~2.2 Mm3
(roundwood) and ~0.3 Mm3 (energy wood)
Results (Availability)
”energywood: supply-demand”

11. Availability
Total (WTS=25%?): ~2 000 000 480 000
Demand (2017): 2 200 000 300 000
All growing stock (2015): 33 000 000 53 500 000 (all other biomass)
6 800 000 (available energy wood)
We could receive all regionally needed wood material from
potential final cuttings (2018), m3:
Roundwood Energywood

12. • There is a difference between stumpage prices of traditional wood stands and stands
utilizing special wood dimensions (special wood can be paid more!)
• The difference is bigger for small-diameter special wood compared to pulp wood.
• Special wood users can be local small users, which means also shorter distances
Results (Cost)

13. Results (innovations)
Special wood species
Laser scanning information only for main tree species
More exact forest planning information was available from
same laser scanning plots, which were earlier inventoried
South-Savo province
Local area

14. Special wood dimensions
Laser scanning information
For example: potential of pine poles from
final cutting stands (diameter >28 cm stands,
yellow lines)
Data could be useful for wood
procurement company finding special
wood dimensions around the mills
The detailed map analysis could be
opened in wood trading service for local
needs
Results
(Innovations)
How?
Wood buyer meets seller
&
Wood seller meets buyer
Wood trading concept
(Auction model)
Local area

15. • By using airborne laser scanning method, the forest resources can be evaluated more specifically for forest
owners´ and user sites´ point of view.
• The digital systems of forestry are developing fast
• Wood trading service “Kuutio” has opened the wood selling via internet
• Data of laser scanned forests are now open in Finland, which could be useful for developing even more
interactive wood trading services
• Regional wood users site-dependent information (special wood can be found easily)
• Auction model (seller and buyer can shout for their wood before closing the trade -> special wood
case)
• Additional information (amount of special wood, energy wood, and wood carbon CO2 could be
included as an additional information for the digital services)
• We found that there is a large wood resource available theoretically, but the real availability is finally based
on:
• Restrictions – Forest economical and ecological factors
• Forest owners – Willingness to sell wood
• Digital services – How great wood trading services can be developed and taken into use
Conclusion

16. More information:
Kalle Karttunen (Senior Researcher, D.Sc)
kalle.karttunen@lut.fi
+358 443 739 377
Lappeenranta University of Technology
School of Energy, Bioenergy Laboratory,
Finland, Mikkeli
Project information:
https://www.researchgate.net/project/Development-of-a-curtomer-oriented-auction-
service-for-the-local-digital-wood-trade-in-the-forest-sector
Thank you for your attention!