Cost factors of fuel chip production

The volume forest chip production is assumed to grow substantially in Finland in coming five years. The aim has been set to increase the use of forest fuels five fold compared to recent value, which is about 0.5 million m3 solid annually. As a result, larger areas will be harvested and majority of this increase is assumed to be logging residues. It is essential to take carefully into account all cost factors related to forest fuel harvesting. These include site-based cost factors, such as site and stand conditions as well as road network and available equipment for harvesting and long distance transportation. Operating and information systems and human factors play an important role behind tangible cost factors. An important factor is the scale of operation. Harvesting machinery is expensive and thus the annual output considerably affects the costs. In addition, the greater the share of the potential fuel supply recovered, the higher the cost of procurement. This is due to longer transport distances and the need to operate on less favourable sites. This paper presents some findings of selected cost factors in forest fuel procurement. The effects of storage human factors are highlighted.