Production Cost Structure and Cost Reduction Scenario of Woody Biomass in Japan

Abstract

Since ca. 70% of the national land in Japan is covered with forests, Japan has abundant potential energy from woody biomass. On the other hand, the energy use of woody biomass is not sufficiently advanced. The production cost of woody biomass in Japan is relatively high, and the supply and demand balances for the energy use is not established. In this study, we focused on a detailed bottom-up approach for the production cost structure of woody biomass; we evaluated the production cost of woody biomass from site preparation to tree trimming with a detailed bottom-up approach for production processes in planted forests in terms of areas, slope angles and forest machines. The quantitative evaluation made it clear that the stand volume of trees influenced the cost structure of the woody biomass production significantly. We also investigated the present cost structure in Sweden, and performed a sensitivity analysis of the production cost in Japan in terms of the slope angles of each area. Based on the analysis, we discussed the technical improvements to achieve a lower woody biomass production cost and proposed innovation pathways (i.e., a technological scenario) to realize the wide spread use of woody biomass. Based on the technological scenario with the relevant improvements, the production cost of woody biomass on a gentle slope can become ca. 4,000 JPY/m³, which is about one third of the present cost.