A growing source of fiber furnish in both countries consists of sawmill byproducts and forest residues, together accounting for more than 80 percent of the total feedstock in British Columbia, Canada, and almost 50 percent in the U.S. South.
Over the past 10 years there has been a clear shift in fiber-sourcing for pellet manufacturers in the U.S. South from logs to residues, says the NAWFR. In 2008, when the first large pellet plant was built, practically all fiber consumed by the plant was “low-quality, small-diameter logs from adjacent forests,” says NAWFR. It describes that fiber source as a “high-cost fiber furnish, since it needs to be chipped, hammered and dried before it can be processed to pellets, which adds substantial cost to the manufacturing of pellets.”
Increasingly, pellet plants throughout the southern states have turned to sawmill byproducts
and forest residues that in the past were left at harvesting sites. The NAWFR says for the past five years it has tracked the fiber sources for the pellet industry each quarter in the two major producing regions of North America (British Columbia and the U.S. South), and it has seen two clear trends:
In British Columbia, pellet companies have moved from entirely relying on inexpensive sawdust from the local sawmills for its fiber furnish to increasingly supplementing its dominant fiber source with forest residues in the form of tree tops and branches left after harvest operations; and
In the U.S. South, there has been an increase in the usage of residuals at the expense of cut logs.
By Anna Ringstrom
Nordic forestry firms racing to replace paper business lost to the internet are trying to transform their pulp mill by-products into glue, biofuel and carbon fiber for aircraft and wind turbines.
A new generation of energy-efficient pulp mills are allowing the likes of Stora Enso, UPM-Kymmene, Metsa Group, SCA and Holmen to look for more profitable uses for by-products they have traditionally mostly burned to help power the mills.
Growing global demand for fossil-free materials is also helping to spur the innovation.
Much of the research is at an early stage, and many companies have not even decided which markets to target.
But after years of painful restructuring, some investors are starting to hope the industry could get a new lease of life.
“If they can develop new materials to replace fossil based materials, the market is endless for them,” said Sasja Beslik, head of sustainable finance at Nordea, one of the Nordic region’s biggest asset managers and Stora Enso’s seventh largest shareholder.
One early success story has been Stora Enso’s work with kraft lignin – a refined version of lignin, a substance which accounts for at least a quarter of wood and binds tree fibers together.
The Finnish company opened a kraft lignin plant in 2015, the first of its kind in the region, using a new technology developed in Sweden and marketed by Finland’s Valmet, and decided to focus on using the material as a replacement for petroleum-derived phenols in glue.