IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i15p4404-d598633.html
   My bibliography  Save this article

The Optimum Wood Procurement Scenario and Its Dynamic Management for Integrated Energy and Material Production in Carbon-Neutral Forest Industry

Author

Listed:
  • Teijo Palander

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

  • Jari Takkinen

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

Abstract

The digitalization of the forest sector, the increased demand of energy-wood, as well as faster market changes have increased the number of challenges for wood procurement of the forest industry. The aim of the study is to optimize wood procurement (upstream of supply chain) of energy and material production in integrated situations, and to consider the effects of production changes on the management of procurement regions. Three scenarios described integrated production situations in a carbon-neutral forest industry: (1) declining export, (2) energy reform, and (3) extensive energy reform. Time-varying capital-, cost-, and energy efficiency of the dynamic wood-flow model affected the competitiveness of the procurement regions. As a novel contribution, energy efficiency was modeled using the price of emission allowance as a cost parameter. The results show the positive effects of the energy reforms, which partly compensate for the declining exports. In addition, it is possible to change wood procurement in the regions in a market-oriented way. Decision makers should optimize purchases, inventories, and procurement resources as business processes, which are also considered success factors for the forest industry in integrated production situations. The strategic solution of extensive energy reform provides a potential approach for carbon-neutral customer-oriented supply chains, but it needs tactical energy efficiency analysis in future studies of sustainability, if the ultimate goal is to implement a carbon-free forest industry and bioeconomy.

Suggested Citation

  • Teijo Palander & Jari Takkinen, 2021. "The Optimum Wood Procurement Scenario and Its Dynamic Management for Integrated Energy and Material Production in Carbon-Neutral Forest Industry," Energies, MDPI, vol. 14(15), pages 1-19, July.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:15:p:4404-:d:598633
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/15/4404/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/14/15/4404/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thollander, Patrik & Mardan, Nawzad & Karlsson, Magnus, 2009. "Optimization as investment decision support in a Swedish medium-sized iron foundry - A move beyond traditional energy auditing," Applied Energy, Elsevier, vol. 86(4), pages 433-440, April.
    2. Kong, Lingbo & Price, Lynn & Hasanbeigi, Ali & Liu, Huanbin & Li, Jigeng, 2013. "Potential for reducing paper mill energy use and carbon dioxide emissions through plant-wide energy audits: A case study in China," Applied Energy, Elsevier, vol. 102(C), pages 1334-1342.
    3. Teijo Palander & Hanna Haavikko & Emma Kortelainen & Kalle Kärhä, 2020. "Comparison of Energy Efficiency Indicators of Road Transportation for Modeling Environmental Sustainability in “Green” Circular Industry," Sustainability, MDPI, vol. 12(7), pages 1-22, March.
    4. Palander, Teijo & Haavikko, Hanna & Kärhä, Kalle, 2018. "Towards sustainable wood procurement in forest industry – The energy efficiency of larger and heavier vehicles in Finland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 100-118.
    5. Palander, Teijo, 2011. "Modelling renewable supply chain for electricity generation with forest, fossil, and wood-waste fuels," Energy, Elsevier, vol. 36(10), pages 5984-5993.
    6. Palander, Teijo, 2011. "Technical and economic analysis of electricity generation from forest, fossil, and wood-waste fuels in a Finnish heating plant," Energy, Elsevier, vol. 36(9), pages 5579-5590.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Teijo Palander, 2023. "Data-Driven Internal Carbon Pricing Mechanism for Improving Wood Procurement in Integrated Energy and Material Production," Energies, MDPI, vol. 16(8), pages 1-10, April.
    2. Di Letizia, Gerardo & De Lucia, Caterina & Pazienza, Pasquale & Cappelletti, Giulio Mario, 2023. "Forest bioeconomy at regional scale: A systematic literature review and future policy perspectives," Forest Policy and Economics, Elsevier, vol. 155(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Teijo Palander, 2023. "Data-Driven Internal Carbon Pricing Mechanism for Improving Wood Procurement in Integrated Energy and Material Production," Energies, MDPI, vol. 16(8), pages 1-10, April.
    2. Baburam Rijal & Luc LeBel & Shuva H. Gautam & Pierre Cantegril, 2020. "A Sequential Optimization Approach in Tactical Planning for Value Creation in the Forest Products Industry," Sustainability, MDPI, vol. 12(12), pages 1-23, June.
    3. Teijo Palander & Stelian Alexandru Borz & Kalle Kärhä, 2021. "Impacts of Road Infrastructure on the Environmental Efficiency of High Capacity Transportation in Harvesting of Renewable Wood Energy," Energies, MDPI, vol. 14(2), pages 1-20, January.
    4. Streckiene, Giedre & Martinaitis, Vytautas & Andersen, Anders N. & Katz, Jonas, 2009. "Feasibility of CHP-plants with thermal stores in the German spot market," Applied Energy, Elsevier, vol. 86(11), pages 2308-2316, November.
    5. Venter, Philip van Zyl & Terblanche, Stephanus Esias & van Eldik, Martin, 2018. "Turbine investment optimisation for energy recovery plants by utilising historic steam flow profiles," Energy, Elsevier, vol. 155(C), pages 668-677.
    6. Elena Stefana & Paola Cocca & Filippo Marciano & Diana Rossi & Giuseppe Tomasoni, 2019. "A Review of Energy and Environmental Management Practices in Cast Iron Foundries to Increase Sustainability," Sustainability, MDPI, vol. 11(24), pages 1-18, December.
    7. Chen, Xiaobin & Man, Yi & Zheng, Qifu & Hu, Yusha & Li, Jigeng & Hong, Mengna, 2019. "Industrial verification of energy saving for the single-tier cylinder based paper drying process," Energy, Elsevier, vol. 170(C), pages 261-272.
    8. Rocsana Bucea-Manea-Țoniș & Oliva Maria Dourado Martins & Dragan Ilic & Mădălina Belous & Radu Bucea-Manea-Țoniș & Cezar Braicu & Violeta-Elena Simion, 2020. "Green and Sustainable Public Procurement—An Instrument for Nudging Consumer Behavior. A Case Study on Romanian Green Public Agriculture across Different Sectors of Activity," Sustainability, MDPI, vol. 13(1), pages 1-25, December.
    9. Luis Miguel Calvo & Rosario Domingo, 2017. "CO 2 Emissions Reduction and Energy Efficiency Improvements in Paper Making Drying Process Control by Sensors," Sustainability, MDPI, vol. 9(4), pages 1-17, March.
    10. Palander, Teijo & Haavikko, Hanna & Kärhä, Kalle, 2018. "Towards sustainable wood procurement in forest industry – The energy efficiency of larger and heavier vehicles in Finland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 100-118.
    11. Pérez-Fortes, Mar & Laínez-Aguirre, José Miguel & Arranz-Piera, Pol & Velo, Enrique & Puigjaner, Luis, 2012. "Design of regional and sustainable bio-based networks for electricity generation using a multi-objective MILP approach," Energy, Elsevier, vol. 44(1), pages 79-95.
    12. Salvatori, Simone & Benedetti, Miriam & Bonfà, Francesca & Introna, Vito & Ubertini, Stefano, 2018. "Inter-sectorial benchmarking of compressed air generation energy performance: Methodology based on real data gathering in large and energy-intensive industrial firms," Applied Energy, Elsevier, vol. 217(C), pages 266-280.
    13. Li, Yingjian & Li, Jiezhi & Qiu, Qi & Xu, Yafei, 2010. "Energy auditing and energy conservation potential for glass works," Applied Energy, Elsevier, vol. 87(8), pages 2438-2446, August.
    14. Herre, Lars & Tomasini, Federica & Paridari, Kaveh & Söder, Lennart & Nordström, Lars, 2020. "Simplified model of integrated paper mill for optimal bidding in energy and reserve markets," Applied Energy, Elsevier, vol. 279(C).
    15. Porzio, Giacomo Filippo & Nastasi, Gianluca & Colla, Valentina & Vannucci, Marco & Branca, Teresa Annunziata, 2014. "Comparison of multi-objective optimization techniques applied to off-gas management within an integrated steelwork," Applied Energy, Elsevier, vol. 136(C), pages 1085-1097.
    16. Giacone, E. & Mancò, S., 2012. "Energy efficiency measurement in industrial processes," Energy, Elsevier, vol. 38(1), pages 331-345.
    17. Mesfun, Sennai & Toffolo, Andrea, 2013. "Optimization of process integration in a Kraft pulp and paper mill – Evaporation train and CHP system," Applied Energy, Elsevier, vol. 107(C), pages 98-110.
    18. Islam Hassanin & Matjaz Knez, 2022. "Managing Supply Chain Activities in the Field of Energy Production Focusing on Renewables," Sustainability, MDPI, vol. 14(12), pages 1-33, June.
    19. Teijo Palander, 2023. "Modeling Techno-Economic Wood Procurement from Renewable Forests for the Sustainable Energy Supply of a CHP Plant," Sustainability, MDPI, vol. 16(1), pages 1-21, December.
    20. Salahi, Niloofar & Jafari, Mohsen A., 2016. "Energy-Performance as a driver for optimal production planning," Applied Energy, Elsevier, vol. 174(C), pages 88-100.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:14:y:2021:i:15:p:4404-:d:598633. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.