Epsilon Archive for Student Projects

Abstract

The forest industry plays an important role in the climate system. The need to reduce emissions of
greenhouse gases is emergent, from a global perspective they are the driving force behind climate
change. To reduce emissions, by-products from the forest industry can substitute fossil-based
products. A global concern is the availability of by-products. And selection of business partners is
of concern for the forest industry when it comes to refining by-product assortments. In this study
the market for unrefined by-products in the four northern counties has been mapped and a balance
between supply and demand for each county has been calculated. The data was collected from saw
and pulp mills, public sources and from a transportation company. Further, the average cost of byproduct
transportation per MWh was minimized, using a linear optimization model. The results from
the optimization were then used to calculate the average transport distance for each by-product..
The results of this study indicate a deficit of by-products in Northern Sweden, and that demands are
likely to increase. In addition, the results showed a variation of by-product production between the
categories of sawmills and pulp mills. Variation was also found within the categories. The sawmill
with the highest production, produced 40 % more by-products per m3sw than the one with the least
production. The lumber yield makes a difference, but other factors are also important for share of
by-products. These include integration with district heating, efficiency and assortment mix for the
onsite sawmill boiler. Tree species and utilized technology at the supply unit, are other factors.
A key conclusion in this study is that such factors affect the prerequisites for market supply
calculations. Therefore, these factors need to be addressed, to adapt to the future market demand.
By-product users can use the results as an information base for new investments, and to improve
established business connections.
Future studies should include larger sample sizes for demand and supply units, to determine what
affects the market for and the production of by-products.