New and cost-efficient methods for use in supply chains for energy wood should be found, to reach the targets of the renewable energy utilisation set by the European Union. The long-distance waterway transportation of forest fuels should be thoroughly investigated, especially in areas where the transport distance is long and waterways could provide a feasible method of conveying forest fuel. In comparison to transport of forest chips by truck, barge-based waterway transport shows a competitive advantage due to the larger loads and higher bulk density of chips it allows. The cost-efficiency of waterway transportation operations related to forest chips in Finland’s Lake Saimaa region was studied using practical demonstrations and discrete-event simulation. The varying demand for fuel wood in three separate bio-power plants on the Saimaa lakeside (near the cities of Varkaus, Mikkeli, and Savonlinna) was addressed in several barge transportation scenarios. Finally, the economy of barge transportation was compared to the economy of truck transportation as a function of transportation distance and in terms of the annual performance of the transportation methods examined. The waterway supply chain of forest chips was cost-competitive to road transport by truck after 100–150 km. According to the simulation study, the most economical waterway transport options were based on fixed barge system and shift-independent harbor logistics where loading and unloading of barges were carried-out with a wheeled loader and a belt conveyor. Total supply chain costs including the best waterway logistics from road side storage to power plant ranged from 10.75 euros to 11.64 euros/MWh in distances of 100–150 km by waterways. The energy-density of forest chips in the barge load was found to be, on average, 25% higher than that in truck hauling, because of the better compaction of chips. Waterway transport is a viable option for long-distance transportation of forest chips in Eastern Finland.

Combining research into forest management stand conditions and wood supply chain processes has been missing from earlier forestry studies. There is a clear need to develop more cost-efficient small-diameter wood production, harvesting and transportation methods from first thinning, which could be used for either industrial or energy wood purposes. This study considers the total cost for small-diameter wood originating from young Scots pine ( L.) dominated stands. Pine pulpwood is the most harvested and most used roundwood assortment, use of which is expected to rise following new pulp-mill investments in Finland. In addition, utilisation of small-diameter trees directly for energy purposes has been increasing steadily in recent years. The aim of the study was to determine the cost-reduction potential of alternative forest management options and supply chains for small diameter-wood in the regional case of South Savo in eastern Finland. The total costs of three distinct scenarios were studied on the basis of forest management, first-thinning harvesting methods, and transportation: 1) industrial wood, 2) delimbed energy wood, and 3) whole trees for energy purposes. The cost-reduction potential for energy-wood supply chains from first thinning was compared to the industrial supply chain. Small-diameter delimbed wood delivered straight for energy purposes was found to be the most cost-efficient as far as the total cost of the supply chain is concerned. More cost-efficient small-diameter wood processes can be found by linking forest stand simulations with supply chain analysis.Pinus sylvestris