Calculating the Supply Potential of Unused Wood for Woody Biomass Power Generation Plants in Hokkaido, Japan

• Published in: Journal of the Japanese Forest Society Vol. 99; no. 6; pp. 233 - 240
• Main Authors: Sakai, Sayaka, Tsuda, Takaaki, Yasaka, Michiyasu
• Format: Journal Article
• Language: English; Japanese
• Published: THE JAPANESE FORESTRY SOCIETY 2017
• Subjects: internal rate of return; supply potential of unused wood; unused wood; wood biomass power generation
• ISSN: 1349-8509; 1882-398X
• DOI: 10.4005/jjfs.99.233

This paper examines potential for three wood biomass power generation plants operating in Hokkaido, especially in terms of unused wood, which is called D rank wood, in an artificial conifer forest. We considered transportation cost and chipping cost by a forestry organization in Hokkaido, and the maximum purchase price of unused wood that would maintain the power generation plant's 8% internal rate of return. We used the business simulator for woody biomass power generation and cogeneration to estimate the maximum purchase price. In conclusion, the price was estimated to be about ¥6,200-¥12,500/m3. We conclude that even though every power generation plant could maintain their 8% IRR with D rank wood sourced from nearly 50 km away, thus giving an annual supply potential of 12,000-88,000 m3, this which would fall short of the required demand volume when the plants were approved.