Canadian Biomass • Fall 2024 • In-woods grinding above board, cost effective

The Wood Pellet Association of Canada, in collaboration with BioPower Sustainable Energy Corporation, has completed a study that outlines the feasibility and economic implications of inwoods grinding to process forest biomass for wood pelletization in Ontario.

The study, led by Dr. Fahimeh Yazdan Panah, WPAC’s director of research, highlights that forest biomass, when processed with the right technology, such as in-woods grinding, can serve as an economically viable feedstock for wood pellet production in Ontario.

The study was funded by the Ontario Forest Biomass Program, which supports the objectives set out in Ontario’s Forest Sector Strategy and Forest Biomass Action Plan. It helps fund initiatives that secure and increase long-term wood utilization, including biomass.

Ontario’s forests contain vast amounts of biomass, including treetops, branches, low-quality logs, and fire-damaged timber, traditionally left behind or burned after logging. However, forest biomass is often contaminated with soil and other debris. It also tends to have higher moisture and ash content, complicating the pelletization process.

In the study, a Peterson 4710B grinder was used at the logging site to process forest residues into uniform feedstock suitable for pelletization. This approach reduces the volume of material transported, which can significantly lower transportation costs—a crucial factor in remote forest locations.

The study found ground material produced through in-woods grinding, after appropriate drying and cleaning, could meet international standards for wood pellet production, including ISO 17225-2.

The study evaluated the economic implications of two different operational models:

In Scenerio 1, the pellet plant owns and operates all necessary equipment, including the Peterson 4710B grinder, trucks and loaders. The study found this approach could be cost-effective for large-scale operations with consistent biomass availability.

The cost per tonne in this scenario ranged from $41.68 to $52.46 per tonne, depending on factors such as the type of transportation and operational fees . While ownership requires a significant upfront capital investment, it offers the potential for long-term cost savings and greater control over the entire supply chain.

In Scenerio 2, outsourcing grinding and transportation to a third-party provider offered financial predictability and reduced operational complexity for small companies without the capital to invest in heavy equipment, or those dealing with inconsistent biomass availability. The study found that outsourcing results in a fixed cost of $44 to $49 per tonne . However, it introduces dependency on external suppliers, which could lead to challenges if there are disruptions in the supply chain.

By adopting advanced techniques and carefully weighing the benefits of owning versus outsourcing equipment, pellet producers can enhance operational efficiency and significantly reduce costs. Moreover, integrating forest biomass into production can contribute to improving forest health, reducing wildfire risks, and advancing climate action by utilizing a renewable energy source and offsetting the use of fossil fuels.

Operationally, in-woods grinding improves the efficiency of biomass transportation by reducing the volume of material that needs to be moved, which can lower greenhouse gas emissions associated with transportation. The ground biomass can be further refined and pelletized, creating a product that complies with stringent international standards, ensuring that Ontario’s wood pellet industry can compete in the global market.