43559 v4 Appendix 3 Expanding the production of fuel wood in Belarus This appendix provides recommendations on how to increase the production of fuel wood in Belarus in a rational and environmentally sustainable manner. The recommendations were developed by Electrowatt-Ekono consultants based on a short mission to Belarus and review of the government program that sets the target of producing 25 percent of electricity and heat from domestic energy and renewable resources. The program sets the target of increasing the production of fuel wood by 4.79 million cubic meters and woodworking waste by 340,000 cubic meters between 2005 and 2012, respectively. While the wood stock is sufficient to meet this target, present fuel wood production practices do not make optimal use of forest resources and may have an adverse impact on the soil nutrient balance. The application of the following measures will help address these concerns. Develop a research and development (R&D) program The proposed increase in the production of fuel wood requires the preparation of a research and development (R&D) program. The ultimate objective of the R&D program is to ensure that fuel wood production is done in a sustainable way. Sustainability would be accomplished primarily by integrating the fuel and raw material supply chains, optimizing and rationalizing the use of national wood resources, and reducing forest fuel production costs. The R&D program should include the following components: (i) basic research projects, (ii) industrial/demonstration projects, (iii) development of cooperation between different organizations, (iv) development of entrepreneurship, and (v) development of suitable quality standards for wood-based fuels. In addition to machine development, there should be focus on reducing harvesting and transportation costs by improving logistics and applying modern information technology solutions within the supply chain. The government should finance the R&D program, involve research organizations and practitioners in program development, and facilitate its effective implementation in Belarus. While developing the program it is recommended to draw on the experience in fuel wood production and utilization of other countries, for instance Finland. Integrate the production of fuel wood into conventional forestry and procurement of industrial timber At present large quantities of harvesting residues are piled up and abandoned or burned in the forest. These residues are not utilized in energy production. However, huge volumes of both low- quality roundwood logs and high-quality logs (such as pulpwood) are sold as fuel wood to meet local demand. The use of high-quality logs as fuel wood is a waste of valuable natural resources. Logs suitable for industrial utilization should be primarily processed into wood products that have much more added value than fuel wood. Since forest biomass is to be recovered as a byproduct of industrial timber, the integration of operations should be a natural step. Therefore, there is a need to invest in mechanical and chemical capacity for wood processing. This in turn would increase the demand for high-quality wood logs and effective forest management practices, leading to an increased supply of forest fuels. An exception is the early thinnings were fuel is the primary product and pulpwood only a side product, if it is recovered at all. In these young stands, machine contractors can operate independently of the forest industry timber procurement organizations and form networks for delivering forest chips to local heating and power plants. Production of Fuel Wood in Finland in 2002 (recycled wood excluded) The total consumption of wood in Finland is about 75 million cubic meters annually. Wood and the entire forest cluster have played a very significant role in the national economy. At present, over 90 percent of the wood harvest is used as raw material by the forest industries. Only 5 million cubic meters per year is used directly for fuel, but much more energy is derived from forest industries´ processing residues. Process residues included, almost half of the wood used in Finland ends up as fuel, either directly or indirectly. Consequently, 20 percent of the total consumption of primary energy, corresponding to 7.1 mtoe in 2004, and 12 percent of the electricity, is derived from wood-based fuels. Goal / 2010 5 Source: Tekes, Wood Energy Technology Program Increase the use of woodworking waste At present only about 40 percent of the available woodworking waste is utilized in energy production. In other words, about 1.71 million cubic meters or 0.27 mtoe is wasted. Efforts should be undertaken to maximize the utilization of the available woodworking waste. Assure quality standards for forest chips The quality of forest chips is dependent upon the source of biomass and the techniques employed for comminution, handling, and storage. Different boilers demand different fuel properties. The larger the plant, usually the more tolerant it is to random variations in fuel properties. Even so, knowledge of fuel properties and careful control of quality are essential to the operational reliability and efficient combustion of all boiler systems, large CHP plants included. The role of quality becomes more pronounced as the production of forest chips increases. The quality of chips is affected by many properties such as moisture content, heating value, energy density, foliage content, ash content, specific emission of CO2, and particle size. It is not only the averages that matter. Perhaps even more important is the random variation of properties. Variation occurs within a truck load, between truck loads, and also depending on the season. An important goal of quality control is to reduce such variations. Increase production efficiency There is room to increase the efficiency and reduce costs of fuel wood production since Belarus is at a very early stage of the learning curve of forest fuel production. The country would benefit from embracing best international practices and implementing the following measures: • Develop regional forest thinning plans jointly with the biofuel utilization plans. • Develop transport means for chips, uncomminuted loose residues, and composite residue logs. • Develop technology for receiving, comminuting, handling, and storage of wood fuels at energy generation plants; • Encourage the participation of forest machine and truck contractors in the wood fuel branch. • Encourage local machine and equipment manufacturers to develop suitable and more cost-effective systems for wood fuel production and transportation. • Establish a wood fuel production association to develop fuel production and marketing in general. • Support the development of fuel production and marketing entrepreneurship.