Michigan has roughly 1500 Logging Companies


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Michigan has roughly 1500 Logging Companies

  • Michigan has roughly 1500 Logging Companies

  • Harvesting approximately 4,000,000 cords annually

  • Two primary harvesting systems are Cut-to-Length (CTL) Mechanized and Whole Tree Mechanized

  • Products range from high valued veneer logs to energy chips



Dwindling forest industry markets. Three pulp mills lost between 2005 and 2006. One million tons of consumption lost!

  • Dwindling forest industry markets. Three pulp mills lost between 2005 and 2006. One million tons of consumption lost!

  • Operating cost continue to rise

  • Lack of stability in existing markets

  • Work force challenges

  • Finding or creating new markets to maintain our logging capacity

  • End result will and are going out of business

  • Concern of having enough logging capacity once things turn around



Michigan has the 5th largest timberland resource

  • Michigan has the 5th largest timberland resource

  • Woody biomass includes entire living and dead trees, brush, stems, logs and forest product manufacturing residues

  • Some woody biomass components are un-utilized

  • Existing infrastructure utilizing and producing woody biomass

  • Potential for integrated forest manufacturing processes to utilize multiple forms of fiber









Social

  • Social

    • Public policy impacts fiber availability on public and private lands
    • Landowner behavior research indicates only 17% of Michigan non-industrial/non-institutional landowners unwilling to harvest
  • Economic

    • Competition with other markets
    • Delivered wood cost






























Growing stock (commercial)

  • Growing stock (commercial)

  • Cull

  • Species

  • Possible at county level

  • Does not address availability











Potential production rate of 20 bundles per machine hour (8 bone dry tons {bdt}).

  • Potential production rate of 20 bundles per machine hour (8 bone dry tons {bdt}).

  • Cost of colleting biomass and creating “Composite Residue Logs” (CRL) would be about $16 per bdt.

  • Forwarding is estimated to cost $5 per bdt based on 4 loads per productive hour.

  • With a hauling cost of $0.10 to $0.20/ton-mile, a 50-mile haul would add $5 to $10 per bdt.

  • Chipping at the energy facility may incur an additional $3 per bdt.

  • Total cost to deliver chipped hog fuel from CRL’s would be about $29 to $34 per bdt.

  • Approximately half the total delivered cost is due to bundling function.



Standard Bundle 30” x 10’

  • Standard Bundle 30” x 10’

  • Standard Bundle weighs an average of 1,000lb

  • Average Production 15 – 30 Bundles/hour

  • Standard Bundle contains enough heat energy to produce 1MW of electrical power

  • Approximately 16 bundles could power the average home for 1 year

  • 2 standard bundles equals the amount of energy in a refined barrel of oil and equal 6 mcf of natural gas

  • Biomass is carbon neutral



Retail Price for the 1490D is $450,000.

  • Retail Price for the 1490D is $450,000.

  • Hourly owning cost would be roughly $58/scheduled machine hour (smh).

  • Operating cost includes fuel, lube, repair and maintenance, chainsaw and twine operating cost would be $50/smh

  • Adding Labor total cost to operate $130/smh.





Biomass

  • Biomass

    • Co-Generation
    • Combined Heat and Power Facilities
    • Wood pellet production
      • Residential Grade
      • Industrial Grade
    • Wood to Ethanol Production
  • Traditional

    • High and Low Grade Sawmills
    • Pallet Mills
    • Board Production – OSB, Particle, Paneling etc
    • Pulp


Transportation

  • Transportation

  • Stumpage price

    • Ever increasing stumpage prices
    • Many cases stumpage prices for forest residue are excessive
  • Delivery Prices

    • Prices for biomass are typically lower then production cost
    • Raw material cost typically largest expense


Site Quality

  • Site Quality

  • Deer/Elk Densities

    • Increased browsing on natural regeneration
    • Forest residue protects regeneration
  • Seed Source

    • Removal of forest residue could impact natrual regneration for certain tree species, ie Jack Pine.


Creates a “park-like” appearance for the landowner

  • Creates a “park-like” appearance for the landowner

  • Job creation in rural communities

  • Hazardous fuel reduction, lowers fire risk

  • Markets for non-merchantable fiber

    • Salvage Timber – insect or fire damage
  • Lowers dependency on petroleum based products

  • Increases utilization of our renewable resource







Peterson, Donald; The Cost of Extracting Logging Residues for Biomass Fuels, Great Lakes Region, September 2005.

  • Peterson, Donald; The Cost of Extracting Logging Residues for Biomass Fuels, Great Lakes Region, September 2005.

  • Rummer, Bob; Len, Dan; and O’Brien, Obie; Forest Residues Bundling Project: New Technology for Residue Removal, May 2004. Southern Research Station, Auburn, Alabama.

  • Timber Jack 1490D Product Brochure.

  • The use of trade names or references to specific company or products in this publication does not imply endorsement; they are intended only as an aid to the reader.




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