Wood Energy Development March UPM Tilhill
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1 Wood Energy Development March 2013 UPM Tilhill
2 UPM worldwide Production plant Sales company or agent Group Head Office 2 UPM UPM April 2012
3 WOOD SOURCING AND FORESTRY Operating about 30 million m3 wood and biomass globally to own and external plants 1400 persons, about 200 locations in Wood Sourcing and Forestry Wood Sourcing, North Europe Finland Russia Baltic countries Sweden UK Biomass Sourcing, Overseas Own eucalyptus plantations and pulp mill in Uruguay UPM owns forest and has wood sourcing operations also in the US Wood Sourcing, Central Europe Germany France Austria Poland Production plant Sales company or agent Group Head Office 3 UPM UPM April 2012
4 A little bit of Tilhill's 60 year history Wholly owned subsidiary of UPM Part of Energy & Pulp Group within UPM Harvesting is controlled by Northern Europe Wood & biomass sourcing Company formed 1996 Purchased by Shotton Paper and merged with Shotton Forest Management 2002 Acquired BSW Harvesting (Standing timber trading business) 2005 Queens award for Enterprise export Business hits 100M Turnover Commissioned Shotton Paper CHP fuel supply Commissioned the Caledonian Paper CHP fuel supply 4 UPM
5 UPM Tilhill - Our Services Forest management Harvesting Woodland Investment Forest Certification Export 5 UPM
6 UPM Tilhill Forest Management UPM Tilhill is the UK's leading forestry management company UPM Tilhill manage in excess of 200,000 hectares of upland forests and lowland woodlands across the UK 6 UPM
7 Forest Management From the management of Sitka Spruce forests in Scotland and Wales to broadleaved woodland throughout England UPM Tilhill's UKWAS Group Certification Scheme recently passed the 100,000th hectare of woodland = 35% of total private certified area in UK Managed from 10 District offices throughout England, Scotland and Wales 7 UPM
8 UPM Tilhill Districts and Regions 1. North Highland 2. West Highland 3. Head Office and Central Scotland 4. Central Border 5. South West Scotland North Head Office 6. N. W England 13. Yorkshire 7. North Wales 8. South Wales Central 12. Midlands 11. Anglia 9. Wessex 10. South East England 14 Staff = 190 South 8 UPM
9 UPM Tilhill - Timber Operations UK National Cover 45 Harvesting Staff split into 18 Areas Annualised 2.0MT traded pa Turnover 68M (77M ) 40% UPM custom 60% 3rd Party (by volume) 150 active customers Key Supply agreements with all Major UK markets Developing the UK Biomass sector 9 UPM
10 10 UPM
11 Argyll Harvesting Area Out of 18 harvesting areas Tilhill s largest production area- 12.5% Annual production over 230,000 tonnes Due to rise to over 260,000 tonnes this year with expansion of operations including Mull Vital to UPM Caledonian - Supplies 23% of Pulp wood requirements - Supplies 22% of fuel wood requirements. 11 UPM
12 Forest & Woodland Harvesting Operations 12 UPM
13 Assurance Management System UPM Tilhill has implemented an integrated AMS system that combines the following standards: OHSAS (health and safety) ISO 9001:2000 (quality assurance) ISO (environmental management) which provides a consistent standard across all operational disciplines. UPM 13 UPM
14 Biomass Supply Chain Activity Appointed Biomass Business Manager in 2009 Conventional Wood trading Forest Residues Ops Established Operating Guideline for residue recovery systems (Stump and Brash) utilising Finnish and UK expertise Commissioned 4 Balers in the UK, 2 still producing 80,000ktpa working for both Shotton and Caledonian 2 Stump Harvesting trial operations were established for Caledonian Fuel Depot operations South East, Shotton and Caledonian options Biomass Wood fuel management at present = 800,000 tpa 14 UPM
15 UPM Tilhill Tilhill's John Deere 370 Forest Baler Forest Bales = 500kg each 3.0x 0.6m t /ha 55% Moisture Content 2 machines commissioned in Scotland 2 machines in Wales 1 machine working in England 15 UPM
16 Brash site layout 40-50% UPM 16 UPM
17 Stump Harvesting 17 UPM
18 Matrix 18 UPM UPM
19 Matrix 19 UPM UPM
20 Operations 20 UPM
21 Supply Volumes Caledonian Paper site Pulp wood for the paper mill tons a year of Sitka Spruce Biomass supplies equates to about tons a year CHP Supply Split Small round w ood Forest residue Bundles Forest derived Stumps Recycled w ood fibre Chipped Biomass & Saw mill residue 21 UPM
22 Targe - successfully Commissioned May UPM
23 Export Last year 200,000 t was exported. Up to 500,000 t in previous years. 23 UPM
24 The future of Biomass Industrial pellets Torriefied pellet Residential pellet Energy wood chip Graded wood chip Biomass Shred (RCW, SRF) Unprocessd Fibre (logs) 2012 X X X X X Agricultural products In the future X X X X X X X 24 UPM April 2012
25 UPM Global Guideline No more than 70% of forest residues to be removed from site. 25 UPM UPM
26 26 UPM February 2010
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