Current And Potential Use Of Forest Biomass For Energy In Tasmania

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b i o m a s s a n d b i o e n e r g y 8 0 ( 2 0 1 5 ) 1 6 2 e1 7 2Available online at ier.com/locate/biombioeResearch PaperCurrent and potential use of forest biomass forenergy in TasmaniaAndreas Rothe a,*, Martin Moroni b, Mark Neyland b,Matthias Wilnhammer aaFaculty of Forestry, University of Applied Sciences Weihenstephan-Triesdorf, Hans-Carl-von-Carlowitz-Platz 3,85354, Freising, GermanybForestry Tasmania, GPO Box 207, Hobart, 7001, Tasmania, Australiaarticle infoabstractArticle history:Although Tasmania, Australia's southernmost state, has a large forest resource per capitaReceived 20 April 2015there is no reliable information on the potential use of harvest residues, low quality logs orAccepted 22 April 2015processing residues for energy production. In order to address the current knowledge gapAvailable onlinewe: i) quantified the current use and the potential sustainable supply of forest biomass inTasmania, ii) compared those results with the use of forest biomass in Bavaria, a compa-Keywords:rable state in Southeast Germany, and iii) analysed the low Tasmanian production of en-Forest biomassergy from forest biomass considering economic, legislative and social drivers. The currentFeedstock supplyuse of forest biomass for energy (400 kt y 1 of bone dry material) represents about 6% ofTasmaniaTasmania's total annual energy supply. The potential supply of forest biomass for energyFirewoodproduction is estimated at 1800 kt y 1 of bone dry material equivalent to about 30% ofForest residuesTasmania‘s current total annual energy supply. In contrast to Bavaria and other Europeancountries, forest bioenergy production is small in Tasmania relative to the availableresource and could be more than quadrupled from a resource availability perspective. Aweak domestic market for energy wood leading to low prices, the lack of political stimuliand a low social acceptance are likely key factors. As a strong increase in market prices forforest biomass is unlikely, political incentives are necessary in order to increase the use offorest biomass. Addressing social acceptance will be a prerequisite for the success of initiatives or legislation to achieve this potential. 2015 Elsevier Ltd. All rights reserved.* Corresponding author. Tel.: þ49 8161 71 5970; fax: þ49 8161 71 4526.E-mail addresses: andreas.rothe@hswt.de (A. Rothe), martin.moroni@forestrytas.com.au (M. Moroni), mark.neyland@forestrytas.com.au (M. Neyland), matthias.wilnhammer@hswt.de (M. 015.04.0210961-9534/ 2015 Elsevier Ltd. All rights reserved.

b i o m a s s a n d b i o e n e r g y 8 0 ( 2 0 1 5 ) 1 6 2 e1 7 21.IntroductionTasmania, Australia's southernmost state, has a large forestresource per capita. Although about half of the 33 000 km2 totalforest area is reserved the total annual harvest is still at about5 hm3 (1 hm3 ¼ 1 000 000 m3) of timber corresponding to 10 m3capita 1 [21]. In the past the majority of this harvest has beenfrom native forests but in the future plantations will becomethe main source of timber. The bulk of the plantation estate inTasmania and in fact throughout south-eastern Australia hasbeen planted over the last 15 years, and whether it is managedfor pulpwood or solid wood products this estate is currentlysome years from maturity. As the plantation estate matures,the potential harvest may increase [19].The use of forest biomass for energy is comparatively smallin Tasmania and restricted to domestic firewood and someindustrial heating plants. Substantial uncertainties existregarding the current use and the sustainable future supply offorest biomass feedstock for energy production in Tasmania.The last officially published figures on firewood use date backover 14 years [16] and a comprehensive study on industrialbiomass use for energy production is not available. Severalrecent studies have investigated the potential use of biomassfor energy in Australia. These studies were either relativelyrough estimates covering large areas (whole of Australia), longtimeframes ( 20 years) and a wide range of possible feedstocks(e.g. Refs. [14,19]) or detailed estimates for a potential consumerconsidering the area and feedstock for a special purpose (e.g.Refs. [23,63]). There is no reliable information on the potentialTasmanian forest biomass for energy feedstock originatingfrom forest management covering both public and private land.In contrast to the situation in Tasmania, the use of biomassfor energy has significantly increased in Europe over the lasttwenty years [20]. Sweden and Finland, two European countries with a large forest resource per capita, currently producebetween 25 and 30% of their final energy consumption from(predominantly forest) biomass [4]. The increasing use offorest biomass for energy was stimulated by rising prices offossil fuels and political support for renewable energy. As aconsequence, the public and scientists are increasingly concerned about overexploitation of forests and strong competition between the material and energetic utilisation of woodfrom forests. Therefore several wood supply estimates havebeen conducted producing a comprehensive view of the woodsupply potential for bioenergy production at the European(overview see Ref. [20]), individual nation and region withinnation level (e.g. Refs. [30,32,62]).In order to address the current knowledge gap about forestbiomass for energy in Tasmania we undertook a study that:i) quantified the current use and the sustainable potentialsupply of forest biomass for energy production inTasmania,ii) interpreted those results in comparison to Bavaria(a comparable state in Germany) andiii) analysed the differences considering economic, legislative and social drivers.In this study the term “forest biomass” refers to all woodybiomass generated directly by forest management (split logs,163other low quality logs, harvesting residues) and wood processing (e.g. shavings, sawdust, woodchips).Tasmania can be seen as a case study for a region, wherethe use of forest biomass is marginal compared to the available forest resource. The results are intended to foster a betterfuture utilization of forest biomass and wood in general, andto inform forest policy development and public discussions.2.Material and methods2.1.Current use of forest biomass for energyEstimates of the volumes of wood-processing residues usedfor energy were based on oral or written interviews undertaken with representatives of the wood processing industryduring May/June 2013 [44]. Between them, the participatingcompanies were responsible for processing more than 90% ofthe total harvest in Tasmania at that time. The estimates fordomestic firewood consumption were based on data fromDriscoll et al. [16]; which were updated by Todd [56] and onunpublished data from a wood-heater survey performed bythe Tasmanian Environment Protection Authority during thewinter of 2011. Firewood consumption was estimated bymultiplying the number of households using firewood as amain heating source with an average household consumptionof 4.8 t y 1 of air dry material and by multiplying the numberof households using firewood as a secondary heating source(where firewood is used as a supplement to a different primary heating source) of 2.2 t y 1 of air dry material.2.2.Potential supply of forest biomass for energyThe potential supply of forest biomass for energy in the shortterm (over the next three years) was calculated separately forlow quality logs and harvesting residues resulting from forestmanagement of both native forest regrowth and plantations,and from wood processing residues (woodchips, shavings,sawdust). Material from oldgrowth harvesting was notincluded due to the low public acceptance of such harvestingand since oldgrowth harvesting is a very small proportion ofthe total harvest following signing of the Tasmanian ForestsAgreement Act in 2013.2.2.1.Native forest regrowthFor State forests the potential supply of low quality (pulpgrade) logs and harvesting residues from native forestregrowth was calculated for two main forest groups ‘TallNative Eucalypt Forest’ and ‘Low Native Eucalypt Forest’ basedon harvest areas and volumes per area. ‘Tall’ forests aredefined as those over 34 m in height whilst ‘low’ forests arethose from 8 to 34 m tall, in accordance with past practice[36,52]. Noneeucalypt species were not considered since theycomprise 5% of the annual harvest. Future rates of harvestwere based on the area of native forest regrowth harvestedduring the 2009/10, 2010/11, and 2011/12 Australian financialyears (1 July e 30 June) derived from Forestry Tasmania'soperational database. Forestry Tasmania is a governmentbusiness enterprise charged with managing the production oftimber from the State controlled production forests.

164b i o m a s s a n d b i o e n e r g y 8 0 ( 2 0 1 5 ) 1 6 2 e1 7 2Oldgrowth areas were subtracted from total harvested areasand a further 20% reduction was assumed in line with theTasmanian Forests Agreement Act 2013 which included asignificant increase to the reserve area. Volumes per hectarewere calculated using Forestry Tasmania's inventory database. Bark, branches and leaves were considered most likelyto remain on site and were not included in the biomass forenergy estimates. Biomass of stems and coarse woody debrisfor 56 forest classes and 21 inventory areas were averaged forthe two forest groups ‘Tall Eucalypt Forest’ and ‘Low EucalyptForest’ (see Ref. [44] for further details). Harvest residuesavailable for energy production were assumed to be 15% oftotal solid forest biomass, which includes live standing volume, dead standing volume and downed dead wood decayclass 1 and 2 [28]. The 15% fraction has also been used by Ref.[19] and is based on the assumption that all 20 cm diametersolid forest biomass is left on site to maintain site nutrientlevels and a significant fraction of 20 cm living biomass and85% of dead solid biomass is retained on site in order to provide enough material for continuity of coarse woody debrisformation. Recovery of 15% of harvest residue volumes isconsistent with field trials where 13e17 % of total solid forestbiomass was removed [5,41]. These trials assessed the economic recovery of fuelwood, and generally only pieces thatwere large enough to be collected using a forwarder wereincluded; this varied with distance from landing, with a higherproportion of material collected close to the landing, and lessfrom further away. In addition to harvest residues weconsidered 50% of pulpgrade logs to be available for energyproduction, based on current practices in Germany concerning hardwood utilisation [51].For private forests the potential supply of low quality(pulpgrade) logs was calculated using published harvest ratesfor pulpwood for the 2009/10, 2010/11 and 2011/12 financialyears [39]. Again 50% of pulpgrade logs were considered to beavailable for energy production. Available biomass from harvesting residues was assumed to be 45% of pulpwood harvestusing the same relationship between harvesting residues andpulpwood as for State forests.2.2.2.PlantationsFor hardwood plantations under public management onlythinnings and clearfells before mean rotation age wereconsidered since there will be little mean rotation age clearfelling ( 3% of harvesting volume) in coming years. Thinningand early clearfell areas and the corresponding harvestingvolumes were available from internal planning processes ofForestry Tasmania.Private hardwood plantations are managed almost entirelyfor pulpgrade material using short rotations (mostly 12e18years). Since significant areas of these plantations are mature,the potential harvest was estimated by multiplying averageannual clearfell area with estimated harvest volume perhectare. We conservatively assumed an 18 year rotation ageand a stemwood volume of 250 m3 ha 1 [12]. Abovegroundresidues (bark, branches, leaves) account for about 25e30 % oftotal biomass in eucalypt plantations [38]. Only one third ofthese residues (corresponding to about 10% of standingbiomass) were considered to be available for biomass energyproduction due to economic and ecological restrictions ([26];personal communication from forest growers). As for the assumptions for native forest regrowth, we considered that 50%of plantation hardwood pulpgrade logs could be available forbiomass energy production.Future harvest rates for softwood plantations were basedon average harvest volumes for the period 2002e2011 duringwhich time harvesting rates have been relatively constant [2].In contrast to the assumption for hardwood material weassumed that pulpgrade softwood is only used for industrialpurposes (current practice) and would not be available forenergy. Available harvest residues for energy were assumed tobe 7% of the merchantable volume of sawlog and pulp logs([25]; personnel communication from forest growers). Allsmall slash ( 8e10 cm) was assumed to be left on site foreconomic and ecological reasons.In many regions worldwide an important fraction of woodis salvage harvested following natural disturbances like fire,windthrow, snow or pathogens, especially in conifer forests[47,49]. Salvage cutting of timber can make a significantcontribution to biomass for energy because this material isoften not suitable for alternative uses. Fire is the dominantnatural disturbance in Tasmania's eucalypt forests. However,few fires have occurred at a landscape scale since the 1930sand trees and burned forests contain large quantities ofcharcoal that makes them unattractive to harvest and process, particularly for paper making. Furthermore most nativeeucalyptus forests readily recover following wildfire. Hence,salvage operations in Tasmania are minimal and were notspecifically included in our calculation.2.2.3.Wood processing residuesThe potential volumes of wood processing residues wereestimated based on oral or written interviews undertakenwith representatives of the wood processing industry (see 2.1).Interviews gathered data on the amount of timber processed,the amount of residues generated, the current use of residuesand anticipated changes in future residue use. The percentageof residues generated during processing as well as the percentage potentially available for energy use was calculatedseparately for the four categories: softwood sawmilling, softwood chipping, hardwood sawmilling/peeling and hardwoodchipping. These percentages were then applied to the potential Tasmanian harvest volumes expected in the next 3 yearsusing the same four categories.2.2.4.Conversion factorsThe estimates for the current and potential use of forestbiomass for energy are in part based on volumes and in parton mass where different materials have different water contents. We used the following conversion factors to allowestimated energy content to be presented using the commonunits of energy per kg of bone dry wood:1 m3 wood ¼ 0.50 t of dry mass (softwood),1 m3 wood ¼ 0.55 t of dry mass (eucalypt),1 m3 wood ¼ 1 t wood (green),Water mass fraction of green wood: 45%,Water mass fraction of dry wood: 15%,Water mass fraction of bone dry wood: 0%,Energy content: 1 kg of bone dry wood ¼ 18 MJ (5 kWh).

165b i o m a s s a n d b i o e n e r g y 8 0 ( 2 0 1 5 ) 1 6 2 e1 7 2Table 1 e Forest biomass used for energy in Tasmania.domestic firewoodwood processingresiduestotalkt y 1kt y 1Energy equivalent(green)(bone ent use of forest biomass for energyCurrently about 400 kt y 1 of bone dry forest biomass are usedfor producing energy in Tasmania (Table 1). This is equivalentto about 6% of Tasmania's total primary energy supply (110 PJin 2012/13, [10]). All of the biomass is used for generatingthermal energy; there are no facilities for producing electricityfrom biomass. Domestic firewood for heat production is thedominant use of forest biomass for energy, accounting forabout two thirds of the total amount. Nearly one third of thetotal amount is derived from wood processing and is used fornon-domestic heating, predominantly for kiln-drying of processed timber. Smaller amounts are used for other industrialheating, particularly during brick manufacturing, food processing or heating greenhouses. The production of wood pellets is negligible in Tasmania. About two thirds of processingresidues are used for industrial (woodchips) or landscapingpurposes (mostly bark). A significant quantity of processingresidues ( 20 kt y 1 of bone dry material) is currently not usedfor energy production or industrial/landscaping purposes andis placed into landfills or left on site.3.2.Potential supply of forest biomass for energydry material (corresponding to about 60% of the potentialenergy wood) is pulpgrade material which is currently chipped and exported. At present an important fraction of thepulpgrade material is not used due to logistical and/or economic restrictions. About three quarters of total pulpgradematerial originates from plantations, and one quarter fromnative forest regrowth.The potential supply of 1800 kt y 1 of bone dry materialcorresponds to an energy equivalent of 33 PJ or approximately30% of Tasmania's current energy demand (110 PJ in 2012/13,[10]). Residues currently left in the landscape to decompose orburnt in the open and low quality logs currently exported aswoodchips have the potential to make a significant contribution to renewable energy production in Tasmania. The aboveestimates are conservative and can be regarded as a minimumpotential since all underlying assumptions (e.g. conversionfactors) are conservative and other forms of woody biomass(landscaping, waste wood) are not considered here. In addition we assume higher standards for retention of slash tomaintain soil fertility and retention of dead wood for biodiversity than required by best management guidelines inEurope or North America (for an overview see Ref. [59]). Theabove estimates of potential energy production are expectedto remain relevant for several years until 2020. The potentialsupply of forest biomass for energy is expected to increase inthe medium and long term due to a significant increase inhardwood plantation production. Long term supply fromsoftwood plantations is expected to remain constant, whilelong term supply from native forest regrowth is expected todecrease slightly.4.Comparing Tasmania with Bavaria4.1.Forestry and forest industry in Bavaria andTasmaniaThe potential supply of forest biomass for energy productionin Tasmania is estimated at 1800 kt y 1 of bone dry material(Table 2). About 40% of this material (700 kt y 1 of bone drymaterial) is derived from harvest and processing residues.Using only these residues, bioenergy production could benearly doubled from the current 400 kt y 1 of bone dry material. The residues originate in nearly equal quantities fromplantations and native forests regrowth. 1100 kt y 1 of boneThis section presents a case study comparison by contrastingTasmanian results with data from Bavaria, a southeastGerman state. The comparison allows an accurate interpretation of our results and an in-depth analysis of relevantdrivers. Bavaria was selected due to similarities in Tasmaniain area, contribution of forest biomass to total energy consumption and the proportion of forest management betweenTable 2 e Potential supply of forest biomass for energy in Tasmania.Native cessingtotalaPulpgrade totalPulpgrade for energyaResidues for energykt (green)kt (green)kt (green)105030505001500700048002000Total energy woodEnergy equivalentkt (green)kt (bone 00330018003350% of hardwood pulpgrade was assumed to be available for energy use, softwood pulpgrade was assumed to be used for processing only.Figures rounded to 50 kt.

166b i o m a s s a n d b i o e n e r g y 8 0 ( 2 0 1 5 ) 1 6 2 e1 7 2Table 3 e Comparisons between Bavaria (Germany) and Tasmania (Australia). Sources [7,21].People (million)Latitude of capital cityLand (km2)Forest area (km2)Forest available for wood production (km2)Main forest typeWood production (hm3 y 1)Wood production (m3 y 1 capita 1)Forest biomass used for energy (hm3 y 1)Fraction of total energy supply generatedfrom forest biomass (%)the public and private sectors (Table 3). Additionally, recentcomprehensive data is available on the domestic market forbiomass used for energy in Bavaria [24]. The use of forestbiomass for energy is widespread in Bavaria which is typicalfor many European countries (Fig. 1) where the share of energyderived from biomass is closely correlated with the availableforest resource. In the 27 member nations of the EuropeanUnion biomass contributed 8.2% of total final energy consumption in 2010 or nearly 64% of European renewable energy[4]. Two thirds of total biomass for energy production or about50% of total renewable energy [33] was from forest biomass.Despite Tasmania and Bavaria having a comparable forest area, there are significant differences between the twostates in industry configuration and markets. Bavaria islocated in the heart of Central Europe and is characterized bya high population density (175 people km 2) leading to astrong domestic market for wood products and bioenergy.There are more than 1000 sawmills processing annually11.5 hm3 wood and about 20 plants for engineered woodproducts (veneer, plywood, particle boards, chemical pulp,mechanical pulp) processing annually about 4 hm3 wood.BavariaTasmania12.548 N (Munich)71 00025 00024 542 S (Hobart)68 00034 00012 000Natural andmodified naturaleucalypt forest5e610e120.76The current revenue of the wood processing industry isestimated at 13.2 billion V [43]. Transport distances areusually below 100 km and most of the timber produced inBavaria is locally processed. About one third of the rawtimber is exported to neighbouring states of Germany orother countries, the import of raw timber from other statesor countries is about half of the exported amount. In summary the calculated fraction of timber processed in Bavariarelative to the harvest from Bavaria's forests is between 80and 90%.Tasmania is an island located off the south east coast of theAustralian mainland with a low population density (7 peoplekm 2). Market countries with a high population density andwood demand such as Indonesia, China or Japan are about8000 km from Tasmania. There are 61 individual forest processing businesses in Tasmania, most of them very smalloperations. The four largest volume businesses processedalmost 90% of Tasmania's forest harvest [48]. Transport distances are generally 100 km, except for low quality logs fromsouthern Tasmania that must be transported closer to 200 kmto northern Tasmania following the recent closure of thesouthern port facility. The majority of sawlogs enter the domestic market ( 90%) but their fraction of total harvest is lessthan 20%. The majority of the wood produced is low qualityhardwood nowadays mostly originating from plantations.Currently almost all low quality hardwood logs are exportedas chips into China and Japan, where the main processingtakes place.4.2.Fig. 1 e Share of biomass energy of final energyconsumption in the 27 countries of the European Union(EU27) and the German state Bavaria (bold). Triangles showthe current (filled) and potential (empty) use in Tasmaniaas estimated in this study. Data Source [4].Comparison of forest biomass resource utilizationIn Tasmania the fraction of total energy supply generatedfrom forest biomass (6%) is only slightly higher than inBavaria (5%) although the annual harvest per capita is aboutsevenfold higher in Tasmania (Table 3). Only 14% of theannual Tasmanian harvest is used for generating energy.Biomass for energy is dominated by domestic space heatingwith firewood and a smaller fraction is used by industrialboilers producing heat (Fig. 2). However, there is no biomassplant in Tasmania and pellet production is only just beginning. Quantities are small and the production of pellets fromsawdust which commenced in 2014 is expected to expand toproduce 800e900 t y 1 of pellets in 2015/2016. Although the

167b i o m a s s a n d b i o e n e r g y 8 0 ( 2 0 1 5 ) 1 6 2 e1 7 2Fig. 2 e Fraction of wood supply used for energy inTasmania and Bavaria. Data for Bavaria from [24]; data forTasmania as estimated in this study.relative firewood consumption in Tasmania (about 1 t y 1capita 1 of green wood) is more than double that of Bavaria(0.4 t y 1 capita 1 of green wood), only 10% of the annualTasmanian harvest is used as fuelwood for private households due to the low population density. In Bavaria 55% of theannual harvest (18 hm3 y 1 over the last 5 years) was used togenerate energy. 27% of the wood supply was used directly asenergy wood (i.e. without further processing), largely as domestic firewood with a small proportion of woodchips.Nearly the same amount of energy wood originated fromprocessing residues and waste wood from used wood products. Significant amounts of pellets are produced from processing residues and are mostly used for heating privatehouseholds. The 680 biomass plants in Bavaria (mostly between 0.5 and 2 MW in size) use 17% of the available woodsupply with waste wood being the dominant feedstock. Theharvesting of log grades explicitly referred to as energy woodin Tasmania is insignificant compared to Bavaria even whentaking into account considerable illegal harvesting [35]. Only1% of total harvest from State forests in Tasmania is firewoodsold through firewood collecting permits and commercialfirewood sales compared with 36% of beech harvest fromState forests sold directly as energy wood in Bavaria (Fig. 3).In Tasmania the total demand for firewood is small andabout 25% of the harvested tree remains on site. Most of thismaterial is burnt in the open during regeneration burns thatare undertaken to prepare a seedbed for the next crop [22]. InBavaria only 10% of the harvested tree is left on site todecompose. While the available resource of forest biomassfor energy is extensively utilised in Bavaria our estimatesindicate that forest biomass production could be more thanquadrupled in Tasmania from a resource availabilityperspective. The potential fraction of total energy productionin Tasmania from forest biomass energy of 30%, as estimatedin this study, is consistent with current circumstances inEuropean countries with a large forest resource per capita(Sweden, Finland, Latvia, Lithuania and Estonia) indicatingthis potential is realistic (Fig. 1).Fig. 3 e Beech and eucalypt log grades in the State Forestsof Bavaria (2011) and Tasmania (2010/11).Total volume:beech 0.8 hm3, eucalypt: 3.3 hm3.4.3.Comparison of economic, legislative and socialdrivers for forest biomass utilization for energy production4.3.1.Prices for energy woodThere is currently no Tasmanian market for energy logs andthe fraction of timber explicitly sold as energy wood is insignificant. Tasmanian prices for low grade pulp-logs and firewood are half Bavarian prices, and Tasmanian prices forwoodchips from processing are below Bavarian prices(Table 4). In contrast prices for wood pellets are significantlyhigher in Tasmania than in Bavaria. This is due to the smallvolume of the pellet market in Tasmania ( 10 kt y 1) and thelack of a large scale pellet production facility in Tasmania. TheTasmanian demand for firewood is small relative to theannual harvest and firewood collecting permits for private useare priced close to zero. Due to the low demand, firewoodprices are determined by transport and labour costs forpreparation with the price of the raw material itself being lowTable 4 e Comparison of prices (V t¡1) for forest biomassused for energy between Bavaria and Tasmania.BavariaHardwood energy logs (roadside)Hardwood collecting permit(private use)Hardwood pulplogs (roadside)Firewood air dry (delivered)Forest woodchipsWoodchips from processing(mill door)Wood pellets ces for logs sold in the forest refer to 1 t green material (first threerows), all other prices to 1 t dry material. Prices without VAT,conversion: 1 AUD ¼ 0.80 V.aCurrently there is no market for energy logs/forest woodchips inTasmania, energy logs/forest woodchips would be priced as forpulplogs/processed woodchips.b15 Euro has been added to stumpage prices for Tasmania to coverfelling, snigging and stacking at roadside.

168b i o m a s s a n d b i o e n e r g y 8 0 ( 2 0 1 5 ) 1 6 2 e1 7 2and having little effect on price. Due to the low Tasmanianpopulation density a significant rise in local firewood prices isunlikely. The theoretical maximum consumption of domesticfirewood - assuming that all 200 000 Tasmanian households[3] use fuelwood as a primary heating source and consume5 t y 1 equals, at most, 20% of the annual harvest. In additionthere are few industrial heating plants and no biomass plantsgenerating municipal heat in Tasmania which would increasethe demand for, and hence potentially the price of, firewood,low quality logs and woodchips. Furthermore, there is nodomestic demand for hardwood chips from an industry suchas pulp and paper making. As a consequence prices of lowquality pulpgrade logs, firewood, and woodchips are determined by their industrial use on the world market.In contrast to Tasmania there is a strong domestic demand for energy wood in Bavaria, especially from hardwoodspecies. Since 2005 there has been a strong increase in demand for energy wood and currently about 60% of the totalbeech harvest (2.5 hm3 y 1) is explicitly sold as energy wood.The demand results predominantly from private householdsusing fuelwood. In addition there are more than 600 biomassplants processing about 3 hm3 y 1 [24]. Due to the strongdemand, prices for energy wood have nearly doubled in thelast 10 years [13].

ergy from forest biomass considering economic, legislative and social drivers. The current use of forest biomass for energy (400 kt y 1 of bone dry material) represents about 6% of 's total annual energy supply. The potential supply of forest biomass for energy production is estimated at 1800 kt y 1 of bone dry material equivalent to about 30% of

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