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Lumberco., Ltd JointUNDP/World Bank Public Disclosure Authorized EnergySector Management Assistance Program Activity CompletionReport No. 074A/87 Public Disclosure Authorized Country: GHANA Activity: SAWMILLRESIDUES UTILIZATION STUDY (VOLUMEI - TECHNICALREPORT) OCTOBER1988 Public Disclosure Authorized Public Disclosure Authorized Reportof theJoint UNDP/Wdd Bank Energy Sector Management Assistance Program Thisdocument has a restricteddistnbution. Its contents may not be disclosedwithout authorizationfrom tne Government,the UNDPor the WorldBank. ENERGYSECTOR MANAGEMENT ASSISTANCE PROGRAM PURPOSE The Joint UNDP/WorldBank Entrgy SectorManagement Assistance Program (ESMAP) was started in 1983 as a companion to the Energy Assessment Program, establishedin 1980. The AssessmentProgram was designed to identify and analyee the most serious energy problems in developingcountries. ESMAP was designedas a pre-invesetmentfacility, partly to assist in implementingthe actions recommended in the Assessments. Today ESMAP carries out pre-investmentactivities in 45 countriesand providesinstitutional and policy advice to developing country decision-makers.The Program aims to supplement,advance, and strengthenthe impact of bilateraland multilateralresources already available for technicalassistance in the energy sector. The reports produced under the ESMAP Program provide governments,donors, and potentialinvestors with informationneeded to speed up projectprepar- ation and implementation. ESMAP activities fall into two major groupings: - Energy Efficiencyand Strategy,addressing the institutional, financial,and policy issues of the energy sector, including designof sectorstrategies, improving energy end-use, defining investmentprograms, and strengtheningsector enterprises; and - Household,Rural, and RenewableEnergy, addressingthe tech- nical, economic, financial,institutional and policy issues affecting energy supply and demand, including energy from traditionaland modern sources for use by rural and urban householdsand rural industries. FUNDING The Program is a major internationaleffort supportedby the UNDP, the World Bank, and bilateralagencies in a number of countries includingthe Netherlands,Canada, Switzerland,Norway, Sweden, Italy, Australia,Denmark, France, Finland, the UnitedKingdom, Ireland, Japan, New Zealand,Iceland, and the USA. INQUIRIES For further.information on the Programor to obtain copies Af the completedESMAP reportslisted at the end of this document,contact: Divisionfor Globaland OR EnergyStrategy, Management InterregionalProjects and AssessmentDivision UnitedNations Development Industryand EnergyDepartment Programme World Bank One UnitedNations Plaza 1818 H Street,N.W. New York, N.Y. 10017 Washington,D.C. 20433 GHANA SAIWILLRESIDUES UTILIZATION STUDY VOLUMEI - TECHNICALREPORT OCTOBER1988 AB8C - Architectural and Engineering Services ATP - African Timber and Plywood (Ghana) Ltd. BRRI - Buildingand Road ResearchInstitute CIDA - CanadianInternational Development Agency eCw - ElectricityCorporation of Ghana EEC - EuropeanEconomic Community EBP - ExportRehabilitation Program FAO - Food and AgricultureOrganization FD - Forestry Department FPIB - ForestProducts Inspection Bureau FPRI - ForestProducts Research Institute GIHOC - Ghana IndustrialHolding Corporati"n COG - Government of Ghana CRC - Ghana Railway Commission CTMB - Ghana TimberMarketing Board CWA - ClikstenWest Afica Ltd. IIED - Interna' nal Institutefor Environmentand Development MIN - 1limTim_r Co., Ltd. MLNR - Ministryof Lands and NaturalResource ODA - OverseasDevelopment Administrition PNDC - ProvisionalNational Defense Council SIPI. - Subri IndustrialPlantations Ltd. STC - StateTransport Corporation STP - SpecializedTimber Products Ltd. TDRI - TropicalDevelopment Research Institute TEDB - TimberExport Development Board TVLC - Takoradi Veneer and LumberCo., Ltd. VRA - Volta River Authority ABBUEVITIE a - annum Abs - absclute ADO - Automotive Diesel Oil CIP - Cost, Insurance and Freight cm - centimeter C&E - Constructionand Equipment DCF - Discounted Cash Flow DM - Deutsche Mark 1IRR - Economic Internal Rate of Return FAS - Free Aboard Ship PFl1 - Financial Internal Rate of Return FOB - Free on Board fUa - from and at CJ - gigajoule GWh - gigawatt-hour h - hour ha - hectare Ha - Mercury HHV - HigherHeating Value hl - hectaliters HP - horsepower IDO - Industrial Diesel Oil IFO - Inland Fuel Oil Igal - Imperial gallon in - inch kg - kilogram kJ - kilojoule km - kilometer kPa - kilopascal kVA - kilovolt-ampere kV - kilowatt kWh - kilowatt-hour 1 - liter LHV - Lower HeatingValue LRMC - Long Run Marginal Cost m - meter N - million MCaI - megacalorie mcdb - moisture content, dry basis icwb - moisturecontent, wet basis MD1 - Medium Density Fiberboard min - minute NJ - megajoule mm - millimeter Mo - month MW - megawatt M.T. - metric tonne NPV - Met Present Value OD - oven dry O&M - Operations and Maintenance RFO - RosidualFuel Oil RWE - Round Wood Equivalent SCF -S tandard Conversion Factor SWE - Sol8iWood Equivalent t - metric tonne TC - turtogenerator toe - tonnes of oil equivalent tonne - metric tonne USD - U.S. Dollar WTP - Willingness-to-Pay yr - year micY ANDFURL BQUIVALES cumcY 1 VI$ - 150 Cedi COUVERSONFACTORS 1 MJ 948 Etu 239 Kcal * 0.278 kWh mcwb LHV HHV Fuel () (NJ/kg) (NJ/kg) Sawmill Residues 36 11.9 20.0 Fuelwood. air-tried 30 13.1 20.0 Sawdust Briquettes 5 18.9 20.0 Charcoal 5 29.0 30.2 CrudeOil -- 43.3 Gas Oil (ADO) 43.3 45.5 Industrial Diesel Oil (IDO) 42.1 44.6 Inland Fuel Oil (IFO) 40.1 42.8 Residual Fuel Oil (RPO) 39.8 42.5 Electricity - 3.6 a/ a/ NJ/kVh Costs of Utiization..............................................46 Technical/InfrastructureConstraints to Residues Utilization ......... 47 Water Spray Lubricdtionof Saw Blades*................47 OutsideStorage of Sawdust...........................47 Boiler/FurnaceConfiguration......................... 47 BoilerEfficiency......e........................... * *7 V. POTENTIALON-SITE ALTERNATIVES FOR IMPROVINGAND/OR INCREASINGUSE OF WOOD INDUSTRYRESIDUES AS FUEL........ 48 Summary....................................................... 48 On-SiteUtilization................................................ 50 Backgroun.................................................. 50 SawmillProcess ..................................... 50 Cogenerationat Grid ConnectedMills................. 57 Cogenerationat Non Grid ConnectedMills............. 64 ResidueHandling and CombustionEfficiency Improvements................................................... 83 ~~~~~~~~~~~~~~~83 Backgrounds** **#*o ................e...........................83 Saw Guide and SawdustStorage Improvements*........... 84 FurnaceModifications for SawdustCombustion ..... 0... 85 Boiler/FurnaceEfficiency Improvements................ 85 VI. POTENTIALOFF-SITE ALTERNATIVES FOR IMPROVINGAND/OR INCREASINGUSE OF WOOD INDUSTRYRESIDUES AS FUEL........ 86 Summary....................................................... 86 Off-SiteUtilization............................................... 88 Background ......................e.... ,****oo 88 Substitutionof Sawdustfor Oil FuelsConsumption.....*. 88 Financialand EconomicAnalysis...................... 88 Substitutionof Sawdustfor FuelwoodConsumption*.... 0.. 90 Financialand EconomicAnalysis...................... 91 Off-SiteConversion Alternatives e.......................92 Background.................................................... 92 ImprovedCharcoal Production............................ 93 Present.e00 ............. 93 ImprovedMethods ......... 96 Financialand EconomicAnalysis of Improved CharcoalOptions ................ o *.. 106 SawdustBriquetting ..... 109 ProposedPlants...................................... 117 CharcoalBriquettes ........... 124 Background.............................................. 124 ProductionOptions/Economics......................... 125 VII. CONCLUSIONSAND REOOMENDATIONSFOR INCREASEDAND,OR IMPROVEDUTILIZATION OF WOOD INDUSTRYRESIDUES. ........ 128 Suuunary......*.*............................................ ~128 On-SiteDirect Utilization.............................. 128 TABLE OF CONTS EXECUTIVE SMAY................. ............. ........ ........... i TM INTRODUCTION 1 Sackopeo ....... ,............. ......... ......... ... ...... 3 Scopeof Suy3 Organizationof Report...Be p ............o rt..000 e0e 4 II. TUE GHANAIANWOOD PROCESSINGINDDUSTRY ...... oo........o.... 6 SectorPerformance...................................... 6 Type, Capacityand Locationof Wood Processing Facilitiest .........ieooooooeee*o.....o.o..o.... 10 IndustrialTimber Production.ootucti...oo.o. oono... o.... 13 Wood IndustryTrends Affecting Residues Disposition.... 15 Trend to GreaterValue-Addedue-Atd..oeoo.oed.o. ooooo 15 Trend TowardExploitation of SecondarySpecies.ooooos 16 III. SUPPLYOF WOOD INDUSTRYRESIDUESo.oo... ...... o.o......o.o. 17 s.umry. .......... ............... ................... 1? Sources,Types and Characteristicsof Residuestues.o.... 17 Location of Residues...... i ....................d u es.... 21 ForestResidueso......*.**..... ................... oo 21 WoodProcessing Residuesi.dou esooo...oo.o.o.oo.o...o.22 Quantities Producedod.........0.0.00.0... .0000 .0 0000..0 23 Existing Sto 00.000.........................0.c k p i le.... 25 Reliabilityof Supplies p p o.....l oo..o...o..o.... ie.oo... 26 Presentand ProjectedSurplus r p lu..o.......o.o.os......27 PresentSurpluso............ o .............. eo.o ..oo 27 FutureSurplusr p l us..................................29 IV. DEMANDFOR WOOD PROCESSINGINDUSTRY RESIDUES..*.......
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