Innovation management of biorefineries in Finnish forest sector

The aim of this report is to give a comprehensive overview of the opportunities integrated biorefining can offer to Finnish forest industry companies and to assess what changes it would require from these companies to implement biorefining into their business. Also the strengths and weaknesses of the Finnish forest industry companies connected to biorefining are examined through innovation management theory frames, industry comparisons, company examples and couple of case-examples. The conclusions of the report include the statement that the Finnish forest industry has a good starting point for biorefinering and many advantages compared to other countries and industries. Unfortunately the history of the industry is holding it back and the thinking patterns would have to be altered to a more innovative and co-operational direction.

The Sedimentology, Ichnology and Hydrogeochemistry of the Late Miocene, Marginal Marine, Upper Pebas and Nauta Formations, Amazonian Foreland Basin, Peru

This thesis includes detailed sedimentological and ichnological studies on two geological units: the Pebas Formation, with a special focus in its informal upper member, and the Nauta Formation. Both formations were deposited during the Miocene in Northeastern Peruvian Amazonia, in the Amazon retroarc foreland basin. The Pebas and Nauta successions mainly consist of non-consolidated, clastic sedimentary deposits arranged into sand- to mud-dominated heterolithic successions, which can be upward-coarsening to upward-fining. Sediments in both the Pebas and Nauta successions range from mud to fine- to medium-grained sand. The main facies observed were 1) mud-dominated horizontal heterolithic couplets; 2) rooted brownish mud; 3) lenticular, mud-draped, cross-stratified sand; 4) mud- to sand-dominated, inclined heterolithic stratification; 5) sand-dominated horizontal heterolithic couplets; and 6) mud-draped, trough cross-stratified sand. Locally, tidal rhythmites were documented. The facies are interpreted as: 1) muddy, shallow, subaqueous flats/shoals; 2) palaeosols; 3) secondary tidal channels or run-off creeks; 4) tidally influenced point bars; 5) shoreface deposits; and 6) subtidal compound dunes. Thalassinoides-dominated Glossifungites ichnofacies, low-diversity expressions of the Skolithos ichnofacies and depauperate suites consisting of elements common to the Cruziana ichnofacies strongly indicate brackish-water conditions. However, continental trace fossil assemblages, with possible elements common to the Scoyenia ichnofacies, have also been identified. In addition to the palaeoenvironmental study, a local hydrogeochemical characterisation of the Pebas and Nauta formations was also conducted. The geochemistry of the groundwaters reflects the characteristics and the soil geochemistry of the geological formations studied. The Pebas formation has low hardness, acid to neutral waters, whereas the upper Pebas has high hardness, acid to neutral waters. In both units, the arsenic content is locally high. The Nauta formation has low hardness acid groundwaters. A regional review of the Pebas and Nauta formations placed the local observations into a continental perspective and suggests that the whole Pebas-Nauta system was a probably shallow (some tens of metres at maximum), brackish- to freshwater, tidally-influenced epicontinental embayment with a probable semi-diurnal to mixed tidal regime and a microtidal range, surrounded by continental environments such as forest floors, lagoons, rivers and their flood plains, and lakes.

Developing raster bands computed from LiDAR to improve forest

This study examines the use of di erent features derived from remotely sensed data in segmentation of forest stands. Surface interpolation methods were applied to LiDAR points in order to represent data in the form of grayscale images. Median and mean shift ltering was applied to the data for noise reduction. The ability of di erent compositions of rasters obtained from LiDAR data and an aerial image to maximize stand homogeneity in the segmentation was evaluated. The quality of forest stand delineations was assessed by the Akaike information criterion. The research was performed in co-operation with Arbonaut Ltd., Joensuu, Finland.

Diversification benefits for a Finnish non-industrial private forest investor: Real Estate Investment Trusts in the USA

This thesis examined both domestic and international forest investment options for a Finnish non-industrial private forest investor. The focus was on forest-based investment instruments. The influence of movements of currency exchange rates on foreign returns were also taken into account. Annual data from 1995 to 2011 was used. The main portfolio optimization model in this study was the Mean-Variance model but the results were also validated by using the Value at Risk and Expected Shortfall models. In addition, the exchange rate risk hedging was established by using one-week-maturity forward contracts. The results suggested that 75 % of the total wealth should be invested in Finnish private forests and the rest, 25 %, to a US REIT, in this case Rayonier. With hedging, the total return on the portfolio was 7.21 % (NIPF 5.3%) with the volatility of 6.63 % (NIPF 7.9%). Taxation supported US investments in this case. As a conclusion, a Finnish private forest investor may, as evidenced, benefit in diversifying a portfolio using REITs in the US.

Forest contractors entrepreneurial skills development in Finland by Forest Expertise and Innovation Network : project in 2009 - 2013

Julkaisumaa: 578 NO NOR Norja

Greenhouse gas emissions from peat and biomass-derived fuels, electricity and heat — Estimation of various production chains by using LCA methodology

More discussion is required on how and which types of biomass should be used to achieve a significant reduction in the carbon load released into the atmosphere in the short term. The energy sector is one of the largest greenhouse gas (GHG) emitters and thus its role in climate change mitigation is important. Replacing fossil fuels with biomass has been a simple way to reduce carbon emissions because the carbon bonded to biomass is considered as carbon neutral. With this in mind, this thesis has the following objectives: (1) to study the significance of the different GHG emission sources related to energy production from peat and biomass, (2) to explore opportunities to develop more climate friendly biomass energy options and (3) to discuss the importance of biogenic emissions of biomass systems. The discussion on biogenic carbon and other GHG emissions comprises four case studies of which two consider peat utilization, one forest biomass and one cultivated biomasses. Various different biomass types (peat, pine logs and forest residues, palm oil, rapeseed oil and jatropha oil) are used as examples to demonstrate the importance of biogenic carbon to life cycle GHG emissions. The biogenic carbon emissions of biomass are defined as the difference in the carbon stock between the utilization and the non-utilization scenarios of biomass. Forestry-drained peatlands were studied by using the high emission values of the peatland types in question to discuss the emission reduction potential of the peatlands. The results are presented in terms of global warming potential (GWP) values. Based on the results, the climate impact of the peat production can be reduced by selecting high-emission-level peatlands for peat production. The comparison of the two different types of forest biomass in integrated ethanol production in pulp mill shows that the type of forest biomass impacts the biogenic carbon emissions of biofuel production. The assessment of cultivated biomasses demonstrates that several selections made in the production chain significantly affect the GHG emissions of biofuels. The emissions caused by biofuel can exceed the emissions from fossil-based fuels in the short term if biomass is in part consumed in the process itself and does not end up in the final product. Including biogenic carbon and other land use carbon emissions into the carbon footprint calculations of biofuel reveals the importance of the time frame and of the efficiency of biomass carbon content utilization. As regards the climate impact of biomass energy use, the net impact on carbon stocks (in organic matter of soils and biomass), compared to the impact of the replaced energy source, is the key issue. Promoting renewable biomass regardless of biogenic GHG emissions can increase GHG emissions in the short term and also possibly in the long term.

Forest cover and its change in Unguja Island, Zanzibar

Tropical forests are sources of many ecosystem services, but these forests are vanishing rapidly. The situation is severe in Sub-Saharan Africa and especially in Tanzania. The causes of change are multidimensional and strongly interdependent, and only understanding them comprehensively helps to change the ongoing unsustainable trends of forest decline. Ongoing forest changes, their spatiality and connection to humans and environment can be studied with the methods of Land Change Science. The knowledge produced with these methods helps to make arguments about the actors, actions and causes that are behind the forest decline. In this study of Unguja Island in Zanzibar the focus is in the current forest cover and its changes between 1996 and 2009. The cover and changes are measured with often used remote sensing methods of automated land cover classification and post-classification comparison from medium resolution satellite images. Kernel Density Estimation is used to determine the clusters of change, sub-area –analysis provides information about the differences between regions, while distance and regression analyses connect changes to environmental factors. These analyses do not only explain the happened changes, but also allow building quantitative and spatial future scenarios. Similar study has not been made for Unguja and therefore it provides new information, which is beneficial for the whole society. The results show that 572 km2 of Unguja is still forested, but 0,82–1,19% of these forests are disappearing annually. Besides deforestation also vertical degradation and spatial changes are significant problems. Deforestation is most severe in the communal indigenous forests, but also agroforests are decreasing. Spatially deforestation concentrates to the areas close to the coastline, population and Zanzibar Town. Biophysical factors on the other hand do not seem to influence the ongoing deforestation process. If the current trend continues there should be approximately 485 km2 of forests remaining in 2025. Solutions to these deforestation problems should be looked from sustainable land use management, surveying and protection of the forests in risk areas and spatially targeted self-sustainable tree planting schemes.

Determinants of Polylepis (Rosaceae) Forest Distribution and Treeline Formation in the High Andes

High elevation treelines are formed under common temperature conditions worldwide, but the functional mechanisms that ultimately constrain tree growth are poorly known. In addition to environmental constraints, the distribution of high elevation forests is largely affected by human influence. Andean Polylepis (Rosaceae) forests are an example of such a case, forests commonly growing in isolated stands disconnected from the lower elevation montane forests. There has been ample discussion as to the role of environmental versus anthropogenic causes of this fragmented distribution of Polylepis forests, but the importance of different factors is still unclear. In this thesis, I studied functional, environmental and anthropogenic aspects determining Polylepis forest distribution. Specifically, I assessed the degree of genetic determinism in the functional traits that enable Polylepis species to grow in cold and dry conditions. I also studied the role of environment and human influence constraining Polylepis forest distribution. I found evidence of genetically determined climatic adaptations in the functional traits of Polylepis. High elevation species had reduced leaf size and increased root tip abundance compared to low elevation species. Thus these traits have potentially played an important role in species evolution and adaptation to high elevation habitats, especially to low temperatures. I also found reduced photosynthesis rate among high elevation tree species compared to low elevation species, supporting carbon source limitation at treelines. At low elevations, Polylepis forest distribution appeared to be largely defined by human influence. This suggests that the absence of Polylepis forests in large areas in the Andes is the result of several environmental and anthropogenic constraints, the role of environment becoming stronger towards high elevations. I also show that Polylepis trees grow at remarkably low air and soil temperatures near treelines, and present new evidence of the role of air temperatures in constraining tree growth at high elevations. I further show that easily measurable indices of accessibility are related to the degree of degradation of Polylepis forest, and can therefore be used in the rapid identification of potentially degraded Polylepis forests. This is of great importance for the conservation and restoration planning of Polylepis forests in the Andes. In a global context, the results of this thesis add to our scientific knowledge concerning high elevation adaptations in trees, and increase our understanding of the factors constraining tree growth and forest distribution at high-­elevation treelines worldwide.

Container logistic innovations in forest-energy sector: Markets, future service concepts and technical improvements

The report presents the results of the commercialization project called the Container logistic services for forest bioenergy. The project promotes new business that is emerging around overall container logistic services in the bioenergy sector. The results assess the European markets of the container logistics for biomass, enablers for new business creation and required service bundles for the concept. We also demonstrate the customer value of the container logistic services for different market segments. The concept analysis is based on concept mapping, quality function deployment process (QFD) and business network analysis. The business network analysis assesses key shareholders and their mutual connections. The performance of the roadside chipping chain is analysed by the logistic cost simulation, RFID system demonstration and freezing tests. The EU has set the renewable energy target to 20 % in 2020 of which Biomass could account for two-thirds. In the Europe, the production of wood fuels was 132.9 million solid-m3 in 2012 and production of wood chips and particles was 69.0 million solidm3. The wood-based chips and particle flows are suitable for container transportation providing market of 180.6 million loose- m3 which mean 4.5 million container loads per year. The intermodal logistics of trucks and trains are promising for the composite containers because the biomass does not freeze onto the inner surfaces in the unloading situations. The overall service concept includes several packages: container rental, container maintenance, terminal services, RFID-tracking service, and simulation and ERP-integration service. The container rental and maintenance would provide transportation entrepreneurs a way to increase the capacity without high investment costs. The RFID-concept would lead to better work planning improving profitability throughout the logistic chain and simulation supports fuel supply optimization.

Metsäenergian liiketoimintojen kehittäminen ja käytön kasvun vaikutukset Kaakkois-Suomessa

Kaakkois-Suomen alueella uusiutuvan energian käyttö ja erityisesti metsäenergian käyttö on kasvanut merkittävästi 2000-luvulla. Tulevaisuudessa metsäenergia nähdään edelleen potenti-aalisimpana vaihtoehtona korvattaessa fossiilisia polttoaineita lämpö- ja voimalaitoskokoluo-kassa. Muita uusiutuvan energian vaihtoehtoja ovat mm. tuuli- ja aurinkovoima, biokaasu sekä erilaiset kiinteät ja nestemäiset polttoainejalosteet. Tulevaisuudessa alueella voi olla mahdollis-ta tuottaa niin kansalliseen kuin kansainväliseen vientiin esim. biopolttonesteitä, biokaasua ja biohiiltä. Tutkimushankkeen tavoitteena oli selvittää metsäenergia-alan alueelliset toimijat sekä metsä-energian soveltuvuus ja liiketoimintamahdollisuudet Kaakkois-Suomen alueen energian tuo-tannossa. Tutkimus koostui seuraavista osatehtävistä: metsäsektorin toimijakentän kartoitus, metsäenergian alueelliset liiketoimintamahdollisuudet, puuperäisten polttoainejalosteiden käyttö- ja liiketoimintamahdollisuudet, muiden uusiutuvien energialähteiden käyttömahdolli-suudet ja vaikutukset Kaakkois-Suomessa. Tutkimuksessa arvioitiin myös Kaakkois-Suomen metsäenergian hankinnan työllisyysvaikutuksia. Tutkimuksen ohjausryhmänä toimi Kaakkois-Suomen metsäenergianeuvottelukunta. Tutkimuksessa kyselytutkimuksella selvitettiin metsäenergian tuottajien ja käyttäjien mielipi-teitä ja kehittämiskohteita toimialalta. Kaakkois-Suomessa hyödynnettävistä uusiutuvista energialähteistä selvitettiin nykyinen käyttö sekä arvioitiin tulevaisuuden hyödyntämismah-dollisuuksia vuonna 2020. Nämä tulokset esitettiin Kaakkois-Suomen energiataseen avulla. Kaakkois-Suomessa uusiutuvista energialähteistä puupolttoaineilla on merkittävin rooli metsä-teollisuuden johdosta ja alueen metsäenergian käyttö voi kasvaa jopa 1,7 TWh:in, mikäli fos-siilisia energialähteitä korvataan edelleen voimalaitoksissa ja lämpökeskuksissa. Metsäenergian käytön kasvussa alueen kunnilla on merkittävä rooli. Viime vuosina erityisesti tuulivoiman tuotanto on kasvanut ja tulee kasvamaan edelleen. Samoin aurinkoenergian hyödyntäminen kiinteistökokoluokassa on lisääntynyt voimakkaasti. Lisäksi maakuntaan on suunnitteilla kiin-teiden, nestemäisten ja kaasumaisten polttoainejalosteiden tuotantolaitoksia. Toteutuessaan laitokset voivat lisätä metsäenergian käyttöä merkittävästi.

Evaluating land-use related environmental impacts of biomass value chains for decision-support : Comparison and testing of methodologies proposed for environmental life cycle assessment

Life cycle assessment (LCA) is one of the most established quantitative tools for environmental impact assessment of products. To be able to provide support to environmentally-aware decision makers on environmental impacts of biomass value-chains, the scope of LCA methodology needs to be augmented to cover landuse related environmental impacts. This dissertation focuses on analysing and discussing potential impact assessment methods, conceptual models and environmental indicators that have been proposed to be implemented into the LCA framework for impacts of land use. The applicability of proposed indicators and impact assessment frameworks is tested from practitioners' perspective, especially focusing on forest biomass value chains. The impacts of land use on biodiversity, resource depletion, climate change and other ecosystem services is analysed and discussed and the interplay in between value choices in LCA modelling and the decision-making situations to be supported is critically discussed. It was found out that land use impact indicators are necessary in LCA in highlighting differences in impacts from distinct land use classes. However, many open questions remain on certainty of highlighting actual impacts of land use, especially regarding impacts of managed forest land use on biodiversity and ecosystem services such as water regulation and purification. The climate impact of energy use of boreal stemwood was found to be higher in the short term and lower in the long-term in comparison with fossil fuels that emit identical amount of CO2 in combustion, due to changes implied to forest C stocks. The climate impacts of energy use of boreal stemwood were found to be higher than the previous estimates suggest on forest residues and stumps. The product lifetime was found to have much higher influence on the climate impacts of woodbased value chains than the origin of stemwood either from thinnings or final fellings. Climate neutrality seems to be likely only in the case when almost all the carbon of harvested wood is stored in long-lived wooden products. In the current form, the land use impacts cannot be modelled with a high degree of certainty nor communicated with adequate level of clarity to decision makers. The academia needs to keep on improving the modelling framework, and more importantly, clearly communicate to decision-makers the limited certainty on whether land-use intensive activities can help in meeting the strict mitigation targets we are globally facing.

Forest inventory information needs in Northwest Russia

This thesis applies the customer value hierarchy model to forestry in order to determine strategic options to enhance the value of LiDAR technology in Russian forestry. The study is conducted as a qualitative case study with semi-structured interviews as a main source of the primary data. The customer value hierarchy model constitutes a theoretical base for the research. Secondary data incorporates information on forest resource management, LiDAR technology and Russian forestry. The model is operationalised using forestry literature and forms a basis for analyses of primary data. Analyses of primary data coupled with comprehension of Russian forest inventory system and knowledge on global forest inventory have led to conclusions on the forest inventory methods selection criteria and the organizations that would benefit the most from LiDAR technology use. The thesis recommends strategic options for LiDAR technology’s value enhancement in Russian forestry.

Forest inventory information needs in Northwest Russia

This research report applies the customer value hierarchy model to forestry in order to determine strategic options to enhance the value of LiDAR technology in Russian forestry. The study is conducted as a qualitative case study with semi-structured interviews as a main source of the primary data. The customer value hierarchy model constitutes a theoretical base for the research. Secondary data incorporates information on forest resource management, LiDAR technology and Russian forestry. The model is operationalised using forestry literature and forms a basis for analyses of primary data. Analyses of primary data coupled with comprehension of Russian forest inventory system and knowledge on global forest inventory have led to conclusions on the forest inventory methods selection criteria and the organizations that would benefit the most from LiDAR technology use. The report recommends strategic options for LiDAR technology’s value enhancement in Russian forestry. This work has been conducted as a part of the project ‘Finnish-Russian Forest Academy 2 - Exploiting and Piloting’, which has been supported financially by the South-East Finland- Russia ENPI CBC 2007-2014 Programme.