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United States Department of Agriculture Forest Service Forest Products Laboratory General Technical Report FPL-46 A Computer Program for Analysis of Fuelwood Harvesting Costs George B. Harpole Giuseppe Rensi

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Page 1: A Computer Program for Analysis of Fuelwood Harvesting Costs · PDF fileA computer program for analysis of fuelwood harvesting ... Market Value. Enter realization per ... A Computer

United States Department of Agriculture

Forest Service

Forest Products Laboratory

General Technical Report FPL-46

A Computer Program for Analysis of Fuelwood Harvesting Costs

George B. Harpole Giuseppe Rensi

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Abstract

The fuelwood harvesting computer program (FHP) is written in FORTRAN 60 and designed to select a collection of har- vest units and systems from among alternatives to satisfy specified energy requirements at a lowest cost per million Btu's as recovered in a boiler, or thousand pounds of H2O evaporative capacity kiln drying. Computed energy costs are used as a criterion of economic viability. Sensitivities of en- ergy costs and fuel requirements to changes in moisture content are computed and provided in the printed output.

Keywords: Wood/bark fuel, harvesting, economics, computer program.

October 1985

Harpole, George E.; Rensi, Giuseppe. A computer program for analysis of fuelwood harvesting costs. Gen. Tech. Rep. FPL-46. Madison, WI: U.S. Department of Agriculture, Forest Service, Forest Products Laboratory; 1985. 18 p

A limited number of free copies of this publication are available to the public from the Forest Products Laboratory, One Gifford Pinchot Drive, Madison, WI 53705. Laboratory publications are sent to over 1,000 libraries in the United States and elsewhere.

The Laboratory is maintained in cooperation with the University of Wisconsin.

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A Computer Program for Analysis of Fuelwood Harvesting Costs

George B. Harpole, Research Forester

Forest Products Laboratory, Madison, WI

Giuseppe Rensi, Professor

Department of Economics and Marketing, California State University, at Hayward Hayward, CA

Introduction

Forest residues represent an abundant wood source often unutilized because of the inability of market prices to sup- port costs for harvesting. In some circumstances, however, harvesting forest residues for fuel may be combined with harvesting of wood-chip and cull-log products to offer eco- nomic and environmentally desirable utilization of forest residues. The fuel harvest analysis computer program (FHP) is designed to select harvest units and harvest sys- tems from a number of alternatives to satisfy specific en- ergy requirements, at a lowest cost per million Btu's as re- covered in a boiler (as exemplified in fig. i), or per thousand pounds of H20 evaporative capacity for kiln dry- ing (as exemplified in fig. 2). The energy costs so com- puted can then be used as a criterion for economic viability of various harvesting options.

The FHP computer program given in the appendix is writ- ten in FORTRAN 60 for use by forestry planners, business analysts, and utilization economists. The program is de- signed for application to logging operations where the fol- lowing conditions apply:

year-round headquarters are maintained for business management and equipment storage and repair,

• harvesting opportunities are available at different harvest sites and wood supplies may collectively exceed fuel product demand and harvesting capacities,

• prospective harvest units may have different cost re- quirements for construction of roads and landings, alternative harvesting systems may be employed at any harvest unit for production of different product mixes of fuel and other marketable products.

Structure of the FHP computer program follows standard accounting practices. Computed energy costs are residual costs, i.e. the net amount of costs and revenues from mar- ketable products are a residual cost which may be nega- tive in situations where revenues exceed all costs. Costs for risk and/or requirements for profit on working capital may be included. Marginal cost analyses may be accom- plished by by representing a harvest unit as a series of differ- ent intensities of possible harvesting. For all analyses, sen- sitivities of energy costs and fuel requirements to change in moisture content are computed and provided in the printed output (figs. 1 and 2).

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Data Input Requirements

content

Use of the FHP computer program requires good estimates of costs per hour for each operable harvesting system con- sidered, and good estimates of the number of operating hours required per acre of harvest area. The entries for gen- eration of the problem specification and printed output of fig- ures 1 and 2 are derived from data coding worksheets (figs. 3 and 4). Input requirements for these worksheets are described below:

Card Type 1: Title card (fig. 3) for captioning printed out- put (first card in data deck).

Card Type 2: Program constants (fig. 3) (second card in data deck).

Cols. 2-3: Number of Harvest Units. Enter number of harvest units to be considered, up to 50 harvest units.

Cols. 7-10: Stack Temperature. Enter in degrees Fahrenheit (at least 100°), for computation of costs per million Btu's of steam. A stack temperature of 375°F is typical. If no entry is made, the program computes costs per thousand pounds of H2O evaporative capacity of stack gases (1,700 Btu's per pound of water evapo- rated as in a dry kiln). Boiler efficiency calculations as- sume 40 percent excess air and 4 percent heat loss from unburned fuel, radiation, and unaccounted heat losses.1 The equations used for computation of boiler efficiencies are shown in table 1.

Table 1.–Equations used for computation of boiler effi- c i e n c i e s

Range of moisture Boiler efficiency (BE) versus

Moisture content fraction, wet basis (MCW) and Stack temperature in fahrenheit (°F) (ST)

From To

0 0.285 BE = 0.9350 - (MCW * 0.18182) - (ST * 0.000310) 0.286 0.443 BE = 1.0019 - (MCW * 0.35454) - (ST * 0.000345) 0.444 0.545 BE = 1.0920 - (MCW * 0.51232) - (ST * 0.000385) 0.545 0.614 BE = 1.3128 - (MCW * 0.87770) - (ST * 0.000410) 0.615 greater BE = 1.4646 - (MCW * 1.09615) - (ST * 0.000445)

Cols. 11-20: Annual Heating Requirements. Enter in millions of Btu's if stack temperature is specified, other- wise in number of pounds (in thousands) of H2O to be evaporated annually.

Cols. 23-30: Fixed Cost. Enter the annual costs for headquarter operations, i.e. for business management, equipment storage and repair, etc.

Cols. 34-35: Number of Weeks for Working Capital. Enter average time in weeks, from actual payout for wages, supplies, etc.. until cash returns are realized from sale of products and/or to time fuel is burned.

1Corder. S. F. Wood and bark as fuel. School of Forestry Research Bul- letin 14. Corvallis, OR: Oregon Stale University; 1973.

Cols. 41 -45: Risk-Profit Requirement. Enter a decimal fraction amount to indicate desired or alternative rate-of. return for investments.

Card Type 3: Harvest unit data card (fig. 3). One card must be prepared for each harvest unit to be considered. Harvest system data cards (card type 4) and harvest sys- tem's product data cards (card type 5) will be assembled in filing fashion following each corresponding harvest unit card (card type 3).

Col. 1: Enter "U" to identify Card as a harvest unit data card.

Cols. 2-3: Harvest Unit Number. Enter the sequential number of the harvest unit.

Cols. 5-10: Harvest Unit Name. Enter any alpha- numeric captioning for the harvest unit.

Cols. 15-20: Unit's Unit Measure. Enter unit of measure used for harvest area's wood/bark materials, such as '"cubic feet," "MBF," "Scribner," etc.

Cols. 24-30: Harvest Unit's Acres. Enter the total num- ber of acres to be harvested in the harvest unit.

Cols. 34-40: Units per Acre. These units must corre- spond to the unit of measure entered in Cols. 15-20.

Cols. 44-50: Unit's Fixed Cost. Enter the estimated fixed cost for putting the harvest unit into condition suit- able for harvesting operations. This amount should in- clude costs for landings, roads, lump sum amounts for stumpage. and the like.

Cols. 54-55: Number of Systems: Alternative harvesting systems may be considered for each harvest unit, each with different operating costs per hour and product mix. Data for each system will follow. The number of alterna- tive systems to be considered must be entered here.

Cols. 59-64: Cubic Feet per Unit. Enter the number of cubic feet of solid wood/bark per unit of measure used. If cubic feet is the unit of measure then 1.0 must be en- tered. If MBF (thousand board feet) is entered, then an appropriate figure somewhere between 160.0 and 225.0 should probably be entered-representing the number of cubic feet of solid wood per MBF.

Card Type 4: Harvest system data (fig. 4). Prepare one harvest system data card for each system considered for a harvest unit.

Col. 1 : Enter "S to identify the card as a system card.

Cols. 2-3: System's Number. Enter the sequential num- ber for each system alternative.

Cols. 5-10: System's Name. Enter any alpha-numeric captioning desired for the system.

2

(wet basis)

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Cols. 14-15: Number of Products. Enter the number of different kinds of product expected to be produced by the system.

Cols. 16-20: Hours per Acre. Enter the average number of operating hours required to harvest an acre of the harvest unit.

Cols. 24-30: System's Variable Cost. Enter the cost per hour of operating the system.

Cols. 31-50: Fuel Description. Enter any alpha-numeric caption to describe the fuel type, e.g. chips, cordwood, etc.

Cols. 61 -65: Moisture Content. Enter in decimal fraction the moisture content of fuel, wet basis, as fired.

Cols. 66-70: Specific Gravity. Enter in decimal fraction the specific gravity of the fuel product.

Cols. 71-75; Higher Heating Value. Enter the higher heating value in thousands of Btu's per ovendry pound of wood bark fuel type.

Card Type 5: Harvest system's product data (fig. 4). Use one card for each product. Up to 10 products, including fuel, may be considered.

Col. 1: Enter "F for identification of the first card in the product list, which must have data for the fuel to be har- vested.

Cols. 2-3: Fuel Product Number. Enter the sequential number for each product.

Cols. 5-10: Fuel Name. Enter any alpha-numeric desig- nation for captioning printed output.

Cols. 15-20: Fuel, Product Percentages. Enter the per- cent of solid wood bark expected to be realized from total harvest by each product. Percentages for all prod- ucts, including fuel, must add to 100.0 percent.

Cols. 25-30: Product's Unit. Enter any alpha-numeric code for printed output captioning.

Cols. 34-40: Cubic Feet of Product, per Unit. Enter the number of cubic feet of solid wood/bark per nominal unit given to each product.

Cols. 44-50: Variable Cost. Enter cost in dollars per unit. associated directly with production (stumpage, chipping, etc.) and delivery of the product type to point where no further product-associated costs will accrue.

Cols. 54-60: Market Value. Enter realization per unit (selling price less all discounts, allowances, etc.) antici- pated from the product type, if product is intended for sale. No value should be entered if the product is the fuel for which a cost is to be computed.

3

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Page 8: A Computer Program for Analysis of Fuelwood Harvesting Costs · PDF fileA computer program for analysis of fuelwood harvesting ... Market Value. Enter realization per ... A Computer

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Page 9: A Computer Program for Analysis of Fuelwood Harvesting Costs · PDF fileA computer program for analysis of fuelwood harvesting ... Market Value. Enter realization per ... A Computer

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Page 10: A Computer Program for Analysis of Fuelwood Harvesting Costs · PDF fileA computer program for analysis of fuelwood harvesting ... Market Value. Enter realization per ... A Computer

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Page 11: A Computer Program for Analysis of Fuelwood Harvesting Costs · PDF fileA computer program for analysis of fuelwood harvesting ... Market Value. Enter realization per ... A Computer

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Page 12: A Computer Program for Analysis of Fuelwood Harvesting Costs · PDF fileA computer program for analysis of fuelwood harvesting ... Market Value. Enter realization per ... A Computer

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Page 13: A Computer Program for Analysis of Fuelwood Harvesting Costs · PDF fileA computer program for analysis of fuelwood harvesting ... Market Value. Enter realization per ... A Computer

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DA

TA W

OR

KSH

EET

SYST

EM

&

PRO

DU

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DA

TA

FOR

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:

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TY

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4:

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vest

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stem

da

ta.

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ca

rd

per

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est

syst

em.

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a En

ter

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stem

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rs

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M

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F P P P P P

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Appendix

12

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U.S. GOVERNMENT PRINTING OFFlCE:1985/544-045/20008 18 2.5-9/85

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The Forest Products Laboratory (USDA Forest Service) has served as the national center for wood utilization research since 1910. The Laboratory, on the University of Wisconsin- Madison campus, has achieved worldwide recognition for its contribution to the knowledge and better use of wood.

Early research at the Laboratory helped establish U.S. industries that produce pulp and paper, lumber, structural beams, plywood, particleboard and wood furniture, and other wood products. Studies now in progress provide a basis for more effective management and use of our timber resource by answering critical questions on its basic characteristics and on its conversion for use in a variety of consumer applications.

Unanswered questions remain and new ones will arise because of changes in the timber resource and increased use of wood products. As we approach the 21st Century, scientists at the Forest Products Laboratory will continue to meet the challenge posed by these questions.