J. For. Sci., 2019, 65(4):121-133 | DOI: 10.17221/26/2019-JFS

Selection of a chipper technology for small-scale operations - a Finnish caseOriginal Paper

Juha Laitila*, Robert Prinz, Lauri Sikanen
Natural Resources Institute Finland (Luke), Production systems, Joensuu, Finland

The objective of this study was to determine the economic performance of alternative chipper choices for small-scale chipping based on unit cost (€ per chip-m3) and net present value (NPV) calculations. For the chipping cost and investment profitability analyses four tractor-powered professional or semi-professional disc chippers and two professional drum chippers mounted on a truck or powered by tractor were selected. Initial investment, operating costs, and the cost of outsourced chipping were the key elements for comparing the profitability of investment alternatives. The average purchase prices, cost factors, and technical details of the chipper units were acquired from machine dealers, specification sheets, a literature review, and interviews with chipping entrepreneurs. The results of the three tractor-powered professional chippers involved in the comparison were very close to each other. The profitable running of a truck-mounted drum chipper calls for high annual chipping volumes: the chipper type is therefore a feasible choice for an entrepreneur in large-scale chipping. Semi-professional disc chippers offer lower investment costs, but their economic feasibility is relatively poor.

Keywords: Investment; decision making; unit cost; chipping; entrepreneurship; productivity

Published: April 30, 2019  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Laitila J, Prinz R, Sikanen L. Selection of a chipper technology for small-scale operations - a Finnish case. J. For. Sci. 2019;65(4):121-133. doi: 10.17221/26/2019-JFS.
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Ackerman P., Belbo H., Eliasson L., de Jong A., Lazdins A., Lyons J. (2014): The COST model for calculation of forest operations costs. International Journal of Forest Engineering 25: 75-81. Go to original source...
    2. Akay A. (2005): Using farm tractors in small-scale forest harvesting operations. Journal of Applied Sciences Research, 1: 196-199.
    3. Arlinger J., Björheden R., Brunberg T., Lundström H., Möller J.J. (2014): Size matters. Improving operations by analyzing the effects of machine size. In: Björheden R. (ed.): Proceedings of the Nordic Baltic Conference OSCAR14. Solutions for Sustainable Forestry Operations, June 25-27, NOVA Park Conference, Knivsta, Sweden. Arbetsrapport Från Skogforsk, 830: 54-55.
    4. Belbo H., Vivestad H. (2018): Predicting delay factors when chipping wood at forest roadside landings. International Journal of Forest Engineering, 29: 128-137. Go to original source...
    5. Beranek W. (1975): The cost of capital, capital budgeting and the maximization of shareholder wealth. The Journal of Financial and Quantitative Analysis, 10: 1-20. Go to original source...
    6. Björheden R., Thompson M. (2000): An international nomenclature for forest work study. In: Field D.B. (ed.): Proceedingsof the 20th World Congress - Caring for the Forest: Research in a Changing World, Tampere, Aug 6-12, 1995: 190-215.
    7. Bäfver L., Renström C. (2013): Fraktionsfördelning som kvalitetsparameter för skogsbränsle - kraftoch värmeverkens perspektiv. [Fraction distribution as a quality parameter of energy wood, from the perspective of combined heat and power plants and heating plants.] Uppsala, Skogforsk. Arbetsrapport Från Skogforsk nr. 805-2013: 43. (in Swedish with English abstract)
    8. Di Fulvio F., Eriksson G., Bergström D. (2015): Effects of wood properties and chipping length on the operational efficiency of a 30 kW electric disc chipper. Croatian Journal of Forest Engineering, 36: 85-100.
    9. Di Fulvio F., Abbas D., Spinelli R., Acuna M., Ackerman P., Lindroos O. (2017): Benchmarking technical and cost factors in forest felling and processing operations in different global regions during the period 2013-2014. International Journal of Forest Engineering, 28: 94-105. Go to original source...
    10. Dodson E., Hayes S., Meek J., Keyes C.R. (2015): Montana logging machine rates. International Journal of Forest Engineering, 26: 85-95. Go to original source...
    11. Eliasson L., Fridh L., Spinelli R. (2018): The effect of output unit choice on detection of feedstock effects on chipper productivity and fuel consumption. Biomass and Bioenergy, 119: 37-42 Go to original source...
    12. Eliasson L., Eriksson A., Mohtashami S. (2017): Analysis of factors affecting productivity and costs for a high-performance chip supply system. Applied Energy, 185: 497-505. Go to original source...
    13. Eliasson L., von Hofsten H., Johannesson T., Spinelli R., Thierfelder T. (2015): Effects of sieve size on chipper productivity, fuel consumption and chip size distribution for open drum chippers. Croatian Journal of Forest Engineering, 36: 11-17.
    14. Eriksson G., Bergström D., Nordfjell T. (2013): The state of the art in woody biomass comminution and sorting in Northern Europe. International Journal of Forest Engineering, 24: 194-215. Go to original source...
    15. Eriksson A., Eliasson L., Jirjis R. (2014): Simulation-based evaluation of supply chains for stump fuel. International Journal of Forest Engineering, 25: doi.org/10.1080/14942119.2014.892293 Go to original source...
    16. Ghaffariyan M.R., Brown M., Acuna M., Sessions J., Gallagher T., Kühmaier T., Spinelli R., Visser R., Devlin G., Eliasson L., Laitila J., Laina L., Iwarsson Wide M., Egnell G. (2017): An international review of the most productive and cost effective forest biomass recovery technologies and supply chains. Renewable and Sustainable Energy Reviews, 74: 145-158. Go to original source...
    17. Hartmann H., Böhm T., Jensen P.D., Temmerman M., Rabier F., Golser M. (2006): Methods for size classification of wood chips. Biomass and Bioenergy, 30: 944-953. Go to original source...
    18. Harstela P. (1991): Work studies in forestry. Silva Carelica, 18: 41.
    19. Jensen P., Mattson J., Kofman P., Klausner A. (2004): Tendency of wood fuels from whole trees, logging residues and roundwood to bridge over openings. Biomass and Bioenergy, 26: 107-113. Go to original source...
    20. Kaleja S., Lazdins A., Zimelis A., Spalva G. (2018): Model for cost calculation and sensitivity analysis of forest operations. Agronomy Research, 16: 2068-2078.
    21. Kärhä K. (2011): Industrial supply chains and production machinery of forest chips in Finland. Biomass Bioenergy, 35: 3404-3413. Go to original source...
    22. Karttunen K., Väätäinen K., Asikainen A., Ranta T. (2012): The operational efficiency of waterway transport of forest chips on Finland's Lake Saimaa. Silva Fennica, 46: 395-413. Go to original source...
    23. Karttunen K., Lättilä L., Korpinen O.J., Ranta T. (2013): Cost-efficiency of intermodal container supply chain for forest chips. Silva Fennica, 47: doi.org/10.14214/sf.1047. Go to original source...
    24. Kons K., Bergström D., Di Fulvio F. (2015): Effects of sieve size and assortment on wood fuel quality during chipping operations. International Journal of Forest Engineering, 26: 114-123. Go to original source...
    25. Kristensen E.F., Kofman P.D. (2000): Pressure resistance to air flow during ventilation of different types of wood fuel chip. Biomass and Bioenergy, 18: 175-180. Go to original source...
    26. Kühmaier M., Erber G. (2018): Research trends in European forest fuel supply chains: A review of the last ten years (2007-2016) - Part two: Comminution, transport & logistics. Croatian Journal of Forest Engineering, 39: 139-152.
    27. Laitila J., Heikkilä J., Anttila P. (2010): Harvesting alternatives, accumulation and procurement cost of smalldiameter thinning wood for fuel in Central Finland. Silva Fennica, 44: 465-480. Go to original source...
    28. Laitila J., Väätäinen K. (2012): Truck transportation and chipping productivity of whole trees and delimbed energy wood in Finland. Croatian Journal of Forest Engineering, 33: 199-210.
    29. Laitila J., Väätäinen K. (2013): Hakkuutyön tuottavuus metsävarustellulla turvetuotantotraktorilla karsitun aines- ja energiapuun korjuussa. [The cutting productivity in integrated harvesting of pulpwood and delimbed energy wood with a forestry-equipped peat harvesting tractor]: Suo - Mires and Peat, 64: 97-112.
    30. Laitila J., Routa J. (2015): Performance of a small and a medium sized professional chippers and the impact of storage time on Scots pine (Pinus sylvestris) stem wood chips characteristics. Silva Fennica, 49: doi.org/10.14214/sf.1382. Go to original source...
    31. Laitila J., Ahtikoski A., Repola J., Routa J. (2017): Prefeasibility study of supply systems based on artificial drying of delimbed stem forest chips. Silva Fennica, 51: doi.org/10.14214/sf.5659. Go to original source...
    32. Levy H., Sarnat M. (1994): Capital Investment and Financial Decisions. New York, Prentice Hall: 782.
    33. Lu H., Ip E., Scott J., Foster P., Vickers M., Baxter L. (2010): Effects of particle shape and size on devolatilizationof biomass particle. Fuel, 89: 1156-1168. Go to original source...
    34. Maganotti N., Spinelli R. (eds) (2012): Good practice guidelines for biomass production studies. COST action FP-0902. Florence, CNR IVALSA: 52.
    35. Mattsson J.E. (1990): Basic handling characteristics of wood fuels: angle of repose, friction against surfaces and tendency to bridge for different assortments. Scandinavian Journal of Forest Research, 5: 583-597. Go to original source...
    36. McCallum B. (1997): Handbook for Small Scale Fuelwood Chipping Operations. Vantaa, IEA Bioenergy: 49.
    37. Mobini M., Sowlati T., Sokhansanj M. (2011): Forest biomass supply logistics for a power plant using the discrete-event simulation approach. Applied Energy, 88: 1241-1250. Go to original source...
    38. Mola-Yudego B., Picchi G., Röser D., Spinelli R. (2015): Assessing chipper productivity and operator effects in forest biomass operations. Silva Fennica, 49: doi. org/10.14214/sf.1342. Go to original source...
    39. Nurminen T., Korpunen H., Uusitalo J. (2009): Applying the activity-based costing to cut-to-length timber harvesting and trucking. Silva Fennica, 43: 847-870. Go to original source...
    40. Öhlmér B., Lönnstedt L. (2004): Design of economic information. A pilot study of accounting information in decision-making processes. Food Economics - Acta Agriculturae Scandinavica, Section C 1: 222-231. Go to original source...
    41. Okkonen L. (2008): From exogenous to endogenous development in Scottish forestry: the feasibility of smallscale wood energy enterprise. Journal of Environmental Planning and Management, 51: 221-232. Go to original source...
    42. Okkonen L., Suhonen N. (2010): Business models of heat entrepreneurships in Finland. Energy Policy, 38: 3443-3452. Go to original source...
    43. Paulrud S., Nilsson C. (2004): The effects of particle characteristics on emissions from burning wood fuel powder. Fuel, 83: 813-821. Go to original source...
    44. Prinz R., Laitila J., Eliasson L., Routa J., Järviö N., Asikainen A. (2018): Hybrid solutions as a measure to increase energy efficiency - study of a prototype of a hybrid technology chipper. International Journal of Forest Engineering, 29: 151-161. Go to original source...
    45. Prinz R., Väätäinen K., Laitila J., Sikanen L., Asikainen A. (2019): Analysis of energy efficiency of forest chip supply system using discrete-event simulation. Applied Energy, 235: 1369-1380. Go to original source...
    46. Röser D., Mola-Yudego B., Prinz R., Emer B., Sikanen L. (2012): Chipping operations and efficiency in different operational environments. Silva Fennica, 46: 275-286. Go to original source...
    47. Spinelli R., Magagnotti N. (2010): A tool for productivity and cost forecasting of decentralized wood chipping. Forest Policy and Economics, 12: 194-198. Go to original source...
    48. Spinelli R., Nati C., Sozzi L., Magagnotti N., Picchi G. (2011a): Physical characterization of commercial woodchips on the Italian energy market. Fuel, 90: 2198-2202. Go to original source...
    49. Spinelli R., Magagnotti N., Paletto G., Preti C. (2011b): Determining the impact of some wood characteristics on the performance of a mobile chipper. Silva Fennica, 45: 85-95. Go to original source...
    50. Spinelli R., Magagnotti N. (2013): Performance of a smallscale chipper for professional rural contractors. Forest Science and Practice, 15: 206-213. Go to original source...
    51. Spinelli R., Cavallo E., Eliasson L., Facello A. (2013): Comparing the efficiency of drum and disc chippers. Silva Fennica, 47: doi.org/10.14214/sf.930. Go to original source...
    52. Spinelli R., Magagnotti N. (2014): Determining long-term chipper usage, productivity and fuel consumption. Biomass and Bioenergy, 66: 442-449. Go to original source...
    53. Spinelli R., Eliasson L., Magagnotti N. (2017): Value retention, service life, use intensity and long-term productivity of wood chippers as obtained from contractor records. Forests, 8: doi.org/10.3390/f8120503 Go to original source...
    54. Spinelli R., Eliasson L., Maganotti N. (2019): Determining the repair and maintenance cost of wood chippers. Biomass and Bioenergy, 122: 202-210. Go to original source...
    55. Strelher A. (2000): Technologies of wood combustion. Ecological Engineering, 16: 25-40. Go to original source...
    56. Suhonen N., Okkonen L. (2013): The Energy Services Company (ESCo) as business model for heat entrepreneurship - A case study of North Karelia, Finland. Energy Policy, 61: 783-787. Go to original source...
    57. Uusitalo J. (2010): Introduction to Forest Operations and Technology. Tampere, JVP Forest Systems Oy: 287.
    58. Väätäinen K., Prinz R., Malinen J., Laitila J., Sikanen L. (2017): Alternative operation models for using a feed-in terminal as a part of the forest chip supply system for a CHP plant. GCB Bioenergy, 9: 1657-1673. doi: 10.1111/gcbb.12463 Go to original source...
    59. Virlics A. (2013): Investment decision making and risk. Procedia Economics and Finance, 6: 169-177. Go to original source...
    60. Windisch J., Väätäinen K., Anttila P., Nivala M., Laitila J., Asikainen A., Sikanen L. (2015): Discrete-event simulation of an information-based raw material allocation process for increasing the efficiency of an energy wood supply chain. Applied Energy, 149: 315-325. Go to original source...
    61. Wolfsmayr U.J., Rauch P. (2014): The primary forest fuel supply chain: a literature review. Biomass and Bioenergy, 60: 203-221. Receiced for publication March 5, 2019 Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International (CC BY NC 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content