Economic Aspects of Low-Grade Hardwood Utilization

Low grade hardwoods in pine stands or remaining after high grade material has been removed from mixed hardwood stands are unsuitable for structural applications or pulping due to size, species, defects, or bark content. Potential uses for this material are as fuel, or as a source of chemicals, or as raw material for fiberboard. The delivered cost of low grade hardwoods at a central location is less than $20 per ton of dry wood. If hardwood chips are used to fire a boiler for a small plant, fuel cost is 40 percent that of No. 2 fuel oil. Capital investment for a wood burning industrial system is estimated at $300,000. Conversion of hardwood chips to fiberboard would return $6.88 in product value, excluding resin costs, for each $1 of wood raw material, with a capital investment (500 tpd plant) of $30 million. Conversion to chemicals would yield $8.36 in product value per $1.00 of wood. Chemicals produced would include furfural, phenol, and ethanol, and improvement of ethanol yield could raise product value to over $11. Capital costs for a plant coverting 1,500 tons of wood per day is estimated at $90 million. A comparison shows that the best rate of return on capital would be obtained with direct combustion as a replacement for fuel oil. There is a sufficient supply of low grade hardwood available within a 50-mile radius of Roxboro NC to supply 150 steam plants, 10 fiberboard plants, or 3 chemical plants.

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