Modeling Techno-Economic Wood Procurement from Renewable Forests for the Sustainable Energy Supply of a CHP Plant

Teijo Palander ()
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Teijo Palander: Faculty of Science and Forestry, University of Eastern Finland, P.O. Box 111, FI-80101 Joensuu, Finland

Sustainability, 2023, vol. 16, issue 1, 1-21

Abstract: The importance of the national security of supply has been emphasized in recent years due to the COVID-19 pandemic and changes in operating environments. Thanks to autonomy and resiliency in fuel procurement, organizations with decentralized energy plants may be able to quickly adapt to the changing needs of society. The main aim of this study was to increase the sustainability of these CHP plants’ wood procurement by modeling it and determining the company’s profitable wood procurement region while keeping the forests renewable. The environmental sustainability of wood procurement was assessed by considering the additional costs caused through the EEAP mechanism if the carbon sink of the forest worsened due to wood procurement in the area. The supply chains were compared so that the CHP plant managers could adopt the best energy wood value chains. The results showed that updating the procurement strategy would be necessary. The CHP plant managers should purchase energy wood from a larger procurement area than the current one and focus on roadside purchases of wood. The Techno-Economic Wood Payment Ability Model was a useful part of the DSS in guiding wood buyers toward sustainable wood procurement by increasing the share of renewable forests.

Keywords: logistics; internal pricing mechanism; emission allowance price; forest carbon sink; renewable forest; security of wood supply (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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