Thursday, August 11, 2011

Harvesting Woody Biomass in Kentucky – results of this summers biomass workshops. August 12, 2011

Three biomass harvesting workshops conducted by the UK Department of Forestry Extension in July attracted over 300 participants. Results of participant surveys and input from logging and woodland owner focus groups participating at the meeting provided valuable insight into how a woody biomass market and its harvesting are viewed by woodland owners and what opportunities and impediments exist for loggers.

Woodland Owners Sixty-five percent of woodland owners indicated that they thought that woody biomass harvesting might be in their future. Only 8.9 percent indicated that in no way, shape, or form would they allow the harvesting of biomass from their woodlands. Woodland owners clearly understood that woody biomass is a high volume product with little margin associated with its harvesting and transportation and therefore cannot be viewed as huge moneymaker. This was news to many woodland owners participating. However, it was also clear that a woody biomass market would provide opportunities for some low quality woods to be regenerated and/or improved commercially whereas only the availability of a government program would allow for this to occur now. Woodland owners also realized that the use of proper harvesting guidelines for woody biomass is important to maintain the health and productivity of their woods. These guidelines are currently under development by a committee developed by the Kentucky Division of Forestry.

Loggers While less than 10 percent of the loggers present were currently harvesting biomass approximately 60 percent thought that it might be in their future. When asked to rank a set of factors that might affect their interest in biomass harvesting the results was as follows: market prices and stability was their top concern followed closely by equipment cost. Government programs, loans, and workers compensation insurance were significantly less important.

Where Do We Go From Here? While woody biomass initiatives have not developed as quickly as many thought they might, there are some developments in Kentucky. The wood burning facility that is developing steam for industrial use in Louisville is under construction and will provide an opportunity for a few loggers. There is currently some biomass chipping going on for limited markets in the northeast and limited markets in western and west-central Kentucky. EcoPower’s initiative in Hazard Kentucky is still proposed and they are working hard to get agreements in place that will allow them to proceed with development. Their current timeline is wood procurement in 2012/13. But that egg has not yet hatched. When it does it will definitely provide and opportunity for loggers to bring in round wood (with similar specifications as pulpwood) to the facility. The plans are that most loggers would not have to have in-woods chippers.

The loggers that will be most able to respond to woody biomass markets are those that are able to skid whole trees and process small diameter wood like pulpwood. This requires mechanized harvesting, grapple skidding or forwarding, and mechanized delimbing. This can and has been done in steep terrain, but there will minimum acreage requirements that will be dictated by terrain and location that may limit some woodland owners from benefiting from a woody biomass market. Further haul distances will be critical. Haul distances from the woods will probably remain in the 50 or 60 mile range and will probably be relegated to high capacity hauling with 18 wheelers.

So we are still generally in a holding pattern. BCAP rules for woody biomass have still not come out and no large scale woody biomass initiatives have developed. Regardless, the potential is still there and loggers and woodland owners should stay tuned for developments over the next 1 to 3 years.