Woodchip Production from

Tree Surgery Arisings in Croydon

A case study by:

Prepared by: Andrew Tolfts, BioRegional Development Group

This report is supported by:
This report was prepared by BioRegional Development Group with support from the Carbon Trust. The
publication of this report should not be taken as implying endorsement by the Carbon Trust of any views
expressed in the Report or of the services or of the service providers referred to in the report. The Carbon
Trust accepts no liability for the accuracy or completeness of, or omissions from, the contents of the Report
or for any loss arising from reliance on it.

The support of the Norlands Foundation and Scottish Power’s Green Energy Trust is gratefully
acknowledged. The opinions expressed in the Report are those of the author and no endorsement of them
by the Norlands Foundation and Scottish Power’s Green Energy Trust is implied.

1
Woodchip Production from Tree Surgery Arisings in Croydon
Summary

BioRegional, Croydon Council and City Suburban Tree Surgeons have established a TreeStation to
produce 10,000 tonnes a year of high quality woodchip fuel from tree surgery arisings. Woodchip
suitable for use in all woodchip boilers can be made.

The TreeStation is the first of its type in London and was set up to:
• provide a sustainable means of disposal for tree waste;
• support Croydon Council’s renewable energy policy;
• stimulate the development of a local biomass heating market;
• provide a new business opportunity locally; and
• act as a demonstration site.

This case study gives details of its development and operation, including an assessment of its
viability in the longer term.

The work of BioRegional and its partners at the Croydon TreeStation

was recognised in June 2006 when the project was a winner at the
2006 Ashden Awards for Sustainable Energy.

1
Contents

Summary .....................................................................................................................................................1
Introduction..................................................................................................................................................3
Aim of the case study ..................................................................................................................................3
Project aim ..................................................................................................................................................4
Tree surgery arisings...................................................................................................................................4
Early trials....................................................................................................................................................5
Chipper evaluation ......................................................................................................................................6
Site design...................................................................................................................................................8
Changing markets .......................................................................................................................................9
The build....................................................................................................................................................11
Equipment for woodchip production ..........................................................................................................11
Costs .........................................................................................................................................................14
Project partnership ....................................................................................................................................15
Longer term operational arrangements .....................................................................................................16
Regulation .................................................................................................................................................16
Operational experience .............................................................................................................................16
Financial evaluation...................................................................................................................................17
Conclusions...............................................................................................................................................18

2
Introduction
BioRegional and the London Borough of Croydon have been working together to improve
management of the borough’s woodland and trees and to make best use of the timber from them
since 1995. As a result woodlands have been returned to coppice management and Croydon became
the first local authority in the world to have their street and park trees certified as a well managed
‘urban forest’ under the Forest Stewardship Council (FSC) system in 1999.

Sawlogs and smaller diameter timber are produced from the woodlands with other logs and chip
coming from tree surgery work – arboricultural arisings. Sawlogs are either sold on the open market
or sawn using a mobile sawmill, smaller sized timber from woodland is most often used for firewood
or occasionally sold. Logs in arboricultural arisings were made into FSC certified charcoal sold
through the BioRegional Charcoal Company until 2001.

The development of the BedZED ecovillage (see www.bioregional.com for details) gave the
opportunity to set up woodchip production at Croydon. BedZED (Beddington Zero (fossil) Energy
Development) is the largest development of its kind in England so far and includes a woodchip fuelled
combined heat and power (CHP) plant as part of the energy strategy. A fuel requirement of 1,100
tonnes a year of woodchip at 30% moisture content was predicted. This matched estimates of the
quantity of logs dropped off by tree surgeons at Croydon’s green waste yard. A study carried out by
BioRegional in 2001 of arboricultural arisings estimated that 100,000 tonnes of arboricultural arisings
were available annually from contractors working for local authorities across London1. In 2001 trials
for the production of woodchip fuel from arboricultural arisings started at Croydon.

As work on the project proceeded it became clear that other opportunities for using woodchip in
boilers for heating were emerging. The scope of the project was broadened and the planned capacity
of the site was increased to allow for this.

Aim of the case study

The Croydon TreeStation is one of the first sites in the UK where arboricultural arisings are being
processed into fuel suitable for use in smaller woodchip boilers. The quality requirement for small
boilers is more exacting than for larger ones, with
Box 1. Woodchip specifications for the tight limits on chip size distribution and moisture
BedZED gasifier. content. The key features at the Croydon TreeStation
which may be relevant for others contemplating
Size range (mm) % by weight woodchip production are:
below 5x5 2–3
5x5 – 10x10 6 – 11
10x10 – 15x15 12 – 19
• the wide range of sizes encountered in tree
15x15 – 20x20 20 – 24 surgery waste, requiring flexible equipment
20x20 – 25x25 25 – 30 • the relatively small scale of operation
25x25 – 30x30 9 – 10 envisaged, drawing material from the local
30x30 – 35x35 about 5 area
over 35x35 about 3 • the emphasis on high quality chip suitable for
• moisture content up to 50% wet basis use in all boilers
• no contaminants (stones, gravel, nails
etc.) In this case study the approach taken at the Croydon
• no treated, painted or varnished timber
TreeStation will be explained and the implementation
• no long sticks over 150mm process described. The problems encountered in
• up to 5% bark content implementation will be noted and an assessment of
the routine operation of the site made. The aim is to
let others considering woodchip production from
arboricultural arisings learn from our experience as the new industry is established across London
and in other urban areas.

1
Bright, I (2001) The London Bioenergy Report, BioRegional and the London Tree Officers Association

3
Project aim
The initial aim of the project was to supply 1,100 tonnes a year of woodchip suitable for use in the
BedZED CHP. The specification required by B9 Biomass (renamed Exus Energy in 2003) is shown in
the Box 1. This specification is similar to the G50 grade of chip2 used in many larger heating boilers.
The ideal chip size is 1” x 1” (2.5 x 2.5cm).

The CHP was scheduled to start operating in early 2002 and it was clear that woodchip from Croydon
would not be available by this date. To meet the anticipated demand a search for local sources of
woodchip was made. Very few sources of woodchip were found that could consistently meet the
specification. The main problems were the presence of overlong slivers or a high proportion of fines,
both of which could lead to blockages and bridging in the BedZED gasifier. The lack of high quality
woodchip in the region reinforced the need to develop our own supply at Croydon.

Tree surgery arisings

The material delivered into the yard at Croydon is typical of tree surgery arisings countrywide, a mix
of logs and chips made on site to from smaller leafy tops and branches by tree surgeons waning to
reduce volume. Both can be used for fuel provided they are appropriately processed.

Chips produced by tree surgeons on site are very variable. Much depends on the model and
condition of the chipper. A well maintained and adjusted machine with sharp blades will produce high
quality chip but many chippers are used only for volume reduction and chip quality is of no concern to
the operator. A chipper in poor condition produces a higher proportion of fines and slivers. Very poor
quality chip is not suitable for fuel. Factors that cause problems and some possible solutions are
listed in Table 1., below. Conventional woodchip boilers and woodchip gasification systems are
affected in similar ways.

Factor Problem Possible remedial

Poorly maintained chipper giving
high proportion of fines and slivers
Inclusion of green leaves/needles
High moisture content (45-50%) as
fresh cut material is chipped.
Contamination with twigs and litter
(plastic bags, bottles etc.)
‘Sweepings’ from clearing up
included with chip
Table 1. Problems encountered with chip made on site by tree surgeons
2
There is no British standard for woodchip fuel at present. A draft European standard (CEN 335) is likely to be adopted in 2008. Many
boiler installers have based their specifications on the current Austrian standard.
Blockages in fuel feed augurs or
bridging in gasifiers
If used green leads to development
of corrosive chlorine compounds in
combustion equipment.
Higher ash content.
Lower calorific value as fuel.
Moisture content (mc) too high for
some boilers.
Can heat up in storage
Blockages to fuel feed system.
Poor combustion if contaminants
get into boiler.
Stones and grit can lead to
increased wear in boiler feed
systems and excessive production
of clinker.
action/comments
Awareness raising for chipper
operators.
Price incentives for better quality
chip.
Screen chip to remove slivers and
fines.
Store chip before use until withered
with no green material (2-3 weeks).
Blend with clean woodchip if ash
content too high
Supply high mc fuel to suitable
boilers equipped with step grate
fuel feed system.
Blend with drier chip.
Dry chip before use with low cost
method.
Make tree surgeons aware of
problem.
Screen out large contaminants.
Reject contaminated loads.
Get contractors to bag up
sweepings separately and dispose
at compost site. Screening will
remove some but not all
contaminants.
Reject contaminated loads.

4
At Croydon, the logs coming onto site are also very variable. They have:
• a huge range of sizes: from 5 – 150cm diameter and in length from rings of 10cm or less to
logs over 5m long;
• generally poor form, with many gnarled, twisted and forked logs;
• high moisture content (>40%) as they are felled and brought straight to the woodchip site.

The largest logs have to be split before they can be chipped, although some better quality logs are
used as sawlogs. Logs can be dried with minimal degrade if there is sufficient space to stack them.
Moisture contents of below 30% can easiliy achieved in a covered stack. Chipping fresh green logs
may restrict the use of the chip to larger boilers.

Early trials
The 2001 chip production trails were
labour intensive. Arboricultural waste
timber was received into the yard
and cross cut with a chainsaw to a
maximum of 1.5m long. They were
then split using a manually operated
vertical splitter into pieces less than
6” diameter. The timber was stacked
for a minimum of 6 months to reduce
moisture content to 30% then
chipped using a manually fed Laimet
HP21 chipper. Although the chipper
was rated to chip 6 inch (170mm)
diameter logs their irregular shape
meant that the practical limit was 5
inches of less. Also, short logs
twisted around as they were drawn
into the machine giving rise to a Fig.1. Manually loaded Laimet 21HP chipper, too small to
large number of oversized slivers in quickly process tree surgery waste.
the resultant chip. A trial with 2.4m
long ash pulpwood gave a
consistently high quality chip ideal for use in the BedZED CHP.

The early trials demonstrated that

manually intensive production of
woodchip using a relatively small
chipper was not viable for a
number of reasons:
• production rates were too
low. Using tree surgery
arisings two people would
have to work full time to
make the 25 tonnes
needed each week at
BedZED;
• the cost was too high, over
£45.00 per tonne before
delivery;
• much backbreaking labour
was involved, making it
Fig 2. Arboricultural arisings, the raw material for unlikely that anyone would
woodchip production want to work full time on
woodchip fuel production.

5
Nevertheless the early trials were useful as they showed the problems likely to be encountered with
other chippers and clearly showed that tree surgery waste needed different chippers to woodland
thinnings and coppice produce. Reducing the amount of labour involved was a key to reducing the
cost of production.

Chipper evaluation
Trials of chippers were directed to larger scale machines equipped with loading cranes with the aim
of reducing the amount of splitting and labour required. There are three types of chipper in common
use in the UK with the cutting blades mounted on a disc, a drum or a cone. A summary of the
features of the different chipper types is given in Table 2.

Examples of all three chipper types, along with a shredder fitted with special cutting teeth were tested
at Croydon. All types of chipper gave good quality chip with longer lengths of timber but the short logs
and ‘rings’ found in arboricultural arisings caused problems for all of them. Short logs twisted round
and were split along the grain rather than being chipped across it. The shredder produced longer
more fibrous material which tends to knit together and could cause problems in fuel feed systems in
smaller boilers. More detailed information about the chipping tests at Croydon are given in the report
on biomass availability in London prepared for the Z-squared project 3.

Chipper type Disc Drum Cone

Chipping system Blades mounted on rotating
disc, normally set at right
angles to in-feed rollers.
Always cuts vertically for a
more consistent chip size
Size of logs chipped Some very large disc
chippers available for large
logs but these are extremely
expensive and not easily
mobile. In-feed tends to be
square and limited by the
diameter of the disc. Typical
capacities for larger mobile
disc chippers are a
maximum log diameter of
around 50cm
Short logs give rise to a
high proportion of long
slivers.
Screening system None fitted but sliver
breakers may be fitted to
reduce proportion of
oversize chip
Chip quality Can be very good if chipper
well maintained and only
longer logs used
Throughput Can be very productive and
low cost with suitable
feedstock
Table 2. Features of different chipper types
Blades set along length of
rotating drum at right
angles to in-feed rollers.
Some variation in chip size
may occur where logs are
chipped near the top or
base of the drum.
Larger drum chippers often
have an in-feed which is
wider than it is high, so
these chippers cope well
with ‘rings’ produced by
tree surgeons. In-feed may
be up to 80cm high x
120cm wide.
Short logs give rise to
many long slivers unless
chipper includes an internal
screen.
Many drum chippers fitted
with internal screen. This
effectively limits oversize
chip but may result in a
higher proportion of fines
Consistent quality with few
oversize but may have
higher proportion of fines
Lower than for a disc
chipper of similar power
The ‘bade’ is the outer
edge of a conical screw
spinning in line with the
in-feed. This drags logs
into the chipper and gives
a very consistent chip
size. The size of the chip
is determined by the pitch
of the screw
Cone chippers are
available for material up
to 50cm diameter but
these machines are very
expensive. Most cone
chippers in UK have a
capacity of 21 or 25cm
with a few of 35cm.
Short logs give rise to a
high proportion of long
slivers.
None fitted but sliver
breakers may be fitted to
reduce proportion of
oversize chip
Very good with few fines
and consistent size from
longer logs
High throughputs with
suitable material and
lower power requirements
than other chippers.

3 Biomass fuel assessment for the Z-squared combined heat and power plant, available from the BioRegional website at
www.bioregional.com

6
 Fig. 3. Chip made by a drum chipper showing numerous long slivers which
need screening out before use in small boilers

Lessons learned about chippers suitable for the tree surgery arisings at Croydon are:
• Drum chippers deal better than other chippers with the irregular shapes and short logs found
in tree surgery arisings, particularly when fitted with an internal screen, but throughput is often
lower than for other chippers with similar power requirements;
• Screening is required to raise quality if chip is to be supplied to smaller boilers;
• Before buying a chipper, try it on your feedstock, on site if possible;
• Provide written performance specifications so you can hold suppliers to account if there are
problems during commissioning;
• Mechanical loading is essential to getting the best out of larger chippers. A root rake or bucket
with a slotted base that allows the logs to be sorted from chip and other debris is very useful.

Fig 4. (Photo Andy Aitcheson) Loading logs onto the chipper in-feed. note the
slotted bucket which allows debris to fall through reducing contamination
in the chipper.

7
Site design
The aim of the Croydon site is to produce high quality woodchip suitable for use in all biomass boilers
and (potentially) CHP systems.

Design of the site was based on the need to:

• process all arboricultural arisings, both logs and material chipped by tree surgeons before
delivery;
• allow free movement of vehicles around the site;
• minimise the amount of labour required to keep production costs as low as possible;
• ensure high standards of health and safety; and if possible,
• reserve an area for log drying prior to chipping.

It was clear that large machinery was required to meet the needs outlined above which would
probably have a higher capacity than required on site. This was not seen as a problem but an
opportunity to offer a service for chipping on other sites.

The long slivers produced by most chippers and contamination of tree surgeons’ chip prompted the
inclusion of a chip screening in the production system. Although chip which includes leaves is not
suitable in all systems (for example the BedZED CHP) in most it causes no problem leading only to a
modest increase in the amount of ash produced.

The total area of the site is 0.85 hectares, with enough room for stacking some logs to dry before
chipping. This will help us supply smaller users who require chip at less than 30% moisture content.
However at the planned output of 8,000 tonnes annually most chip will have to be sold green (at
around 45% moisture content) for use in larger boilers due to lack of space.

The slope has been used to our advantage allowing chip to be tipped directly into the screening
system, keeping handling to a minimum. There is sufficient room for easy movement of vehicles
around the site with good access for full sized articulated lorries. A telehandler or loading shovel with
high tip bucket is used to fill these, overcoming any problems with high sided vehicles. The alternative
of building a loading ramp was ruled out as the vehicle would always have to be loaded in the same
place, reducing flexibility in use of the site.

By using larger machinery to process the logs and chip, manual handling has been eliminated with
benefits for health and safety. There is no access to the yard for members of the general public,
reducing the chances of accidents.

Fig. 5 gives a flow diagram for woodchip production at the TreeStation.

Lessons learned are that the essential requirements for a site processing tree surgery arisings are:
ƒ space for log storage while drying if small users are to be supplied;
ƒ a clean site with concrete hardstanding for chips is needed to prevent contamination
ƒ good access for large vehicles;
ƒ covered storage for finished product;

desirable features are

ƒ screening facilities to remove oversize chip and other contaminants;
ƒ simple, low cost drying facilities for chip and/or log;
ƒ a weighbridge for incoming and outgoing chip measurement;
ƒ facilities for disposal of fines and other waste if these cannot be matured and sold as mulch.
At Croydon these are added to the adjacent green waste composting site.

In addition mobile plant is required for materials handling along with a chipper capable of tackling
large diameter logs and rings.

8
Changing markets
As the project approached construction on site it became clear that the CHP at BedZED could not be
relied upon to provide a market for the chip as intractable technical problems continued. New markets
for the chip had to be found. Slough Heat and Power (SH&P) provided an immediate outlet but at a
price that was insufficient to provide for further development of the site without a significant gate fee.
Longer term prospects for use as a heating fuel locally were good, with the Council promoting
renewable energy through its planning guidance which made specific reference to biomass. Prices for
delivery to smaller users were set by comparison with rising gas prices, working out to around twice
the price available from Slough Heat and Power.

Tree surgery waste

delivered to
Croydon TreeStation at
45% moisture content

Already chipped by Best logs selected for

Delivered as logs
tree surgeons sawmill

Splitting of large logs

over 55cm diameter

Chipped using large

drum chipper

Screening
Logs dried in stockpile
10% fines to for at least 4 months
compost site

Chipped using large

drum chipper
Bulk chip store

Screening

Delivery to larger Delivery to

customers at 40% customers at 30%
moisture content or moisture content or
over lower

Fig 5. Flow of logs and woodchip through the TreeStation

9
Serving local markets has several advantages
• lower delivery costs, lower CO2 emissions
• lower gate fees leading to more through the gate
• reduced reliance on a single customer
• less exposure to shutdowns at Slough
• higher profile, meeting more local community needs.

Having a reliable fuel local fuel source gives developers the confidence needed to opt for biomass
heating. The site was planned as a demonstration unit to boost the profile of woodchip as fuel with
visits by architects, planners, local authority personnel, private hosing developers, housing
associations and other people interested in setting up wood fuel production or installing woodchip
heating. Cooperation with boiler equipment suppliers and other initiatives promoting woodfuel is
essential in developing the market, see Box 2.

Funding to set up the site was secured from the Norlands Foundation, The Carbon Trust and Scottish
Power’s Green Energy Fund

We were already planning to produce high quality woodchip so few changes were required to serve
the small boiler market. The main change is the requirement for chip at 30% moisture content or
below, in contrast to the BedZED CHP which could accept chip at 45% moisture content. Trials are
planned for low cost methods of drying material chipped green.
Box 2. The emerging woodfuel market in London

The reasons for the recent upsurge of interest in biomass heating (and cooling) in London are:
• The Mayor’s requirement that all large developments produce a minimum of 10% of their energy needs from
renewable sources on site. Woodchip heating is often the most cost effective way of meeting this target;
• Rising fossil fuel prices which look unlikely to fall back significantly from present levels. More than 30% can
be saved on fuel costs by using woodchip, offsetting the higher capital costs associated with woodchip
boilers.
• Security of supply; woodchip is a locally produced, indigenous fuel;
• Changing business ethics, with businesses looking to decrease the environmental impacts of their
operations.

Assessments of potential fuel confirm the availability of significant resources in London. A study by BioRegional in
2005 estimated that at least 500,000 tonnes a year of woodchip could be produced for fuel use in the capital in the
medium term*. A survey of tree surgeons estimated that at least 120,000 tonnes a year of tree waste was
produced each year, although not all this is available as fuel.

So far, there are very few modern biomass boilers in London but the current level of interest means that around 20
installations are expected over the next 2 years, some have already gone forward for planning approval. In this
case the demand for chip could be over 10,000 tonnes a year.

However, the supply chain for woodchip in the capital is rudimentary. An increasing number of tree surgeons and
waste wood processors supply Slough Heat and Power but quality requirements there are lower than would be
expected for smaller installations. Much remains to be done to coordinate supply and guarantee quality for end
users.

BioRegional’s practical experience in setting up woodchip production and marketing puts it in a prime position to
facilitate the development of the supply chain and promote increased up take of woodchip as a biomass fuel in
London. Working with other organisations such as South East Wood Fuels (www.sewf.co.uk ), Creative
Environmental Networks ( www.cen.org.uk ), TV Energy (www.tvenergy.org ), the London Energy Partnership,
local authorities in London, companies installing boilers and others.

* Biomass fuel assessment for the Z-squared combined heat and power plant available for download
from http://www.bioregional.com/publications.htm

10
Lessons learned as the market changed during the development of the project included:
• We cannot, at this stage of the industry’s development, work in isolation. Partnerships and
cooperation are essential for the growth of the sector;
• the market is changing rapidly and we have to be ready to respond, both to failures like the
BedZED CHP and the emerging opportunities elsewhere in and around London.

The build
The woodchip store and associated works were relatively straightforward and a decision was taken to
manage the building work directly by BioRegional with the aim of saving some expenditure. In
retrospect a fixed price contract with and established contractor would probably have offered better
value. Daily hire of plant and equipment proved expensive and it was difficult to coordinate the
subcontractors who did most of the work. Also, logs continued to arrive at the site creating a huge
stockpile which made the site cramped, restricting the working area.

Planning permission was granted in March 2004 and construction started in May. Unexpected ground
conditions delayed construction and increased cost due to the need to excavate extra material and
use more hardcore than planned. Construction of the woodchip store was followed by installation of
the chip screening equipment in October 2004. Delays were also caused by the need to raise
additional grant funding for the project.

The final result is a site that works, although the covered storage area is smaller than ideal and
additional concrete hardstanding would make it easier to prevent contamination of the woodchip with
stones.

Lessons from building the site:

• If you can use existing buildings and facilities, do so. Essential requirements are:
o space for log storage and drying;
o room for vehicle movements;
o a chip screening system;
o concrete hardstanding to keep chip clean; and
o an open sided chip store with easy access for loading equipment.
• For any construction work get a fixed price contract if possible.
• Build in plenty of contingency;
• If you are able to use equipment such as excavators from an existing business for construction,
do so;
• Allow plenty of time for planning permission, electricity supply installation etc.

Equipment for woodchip production

Choice of chipper will determine the production rate and quality of chip produced. It is vital to the
success of the site as it influences labour requirements, working conditions and job satisfaction. At
the TreeStation we have had three chippers, only achieving the right balance of purcase price,
running costs, ability to make quality chip from arboricultural arisings and productivity with the third.
This is a second hand Jenz HEM 35 drum chipper fitted with a 300hp engine and internal screen. The
in-feed opening is 560 x 990 mm enabling it to take almost all the tree surgery arisings delivered into
the yard. Its capacity at up to 150t/day is more than enough for the Croydon site giving the
opportunity to offer contract chipping services. Box 3 has more details about our experience in finding
the right chipper.

A log splitter was bought for initial breakdown of logs too large for the chipper. This is an extra
process which is best avoided wherever possible as it is labour intensive. The Posch Splitmaster
24/28t splitter was bought new along with a second hand tractor fitted with a new roof mounted crane
for loading the splitter with larger logs.

11
Box 3. Finding the right chipper at Croydon

Bandit XP280 disc chipper

The 45cm (18”) capacity Bandit XP280 chipper, matched our requirements for a high output chipper that could
take relatively large logs, its price was relatively modest price at £42,000. As a disc chipper it was far cheaper than
drum chippers with similar maximum input diameter and could be bought within our limited budget. A trial was
arranged at which tree surgery arisings were chipped. Some problems were noted with quality of chip from short
logs and how these would be loaded into the chipper. The agent assured us that fitting the chipper with an in-feed
conveyor would solve any issues arising from using short logs and would in addition allow us to load the chipper
mechanically.

The chipper was ordered with an in-feed conveyor but during commissioning in December 2004 it became clear
that the chipper was not working as we had been led to expect. Production was 3 t/day against a target of 30t/day
due to continual jamming of logs as they moved from the conveyor to the chipper in-feed and chip quality was very
poor with the short logs producing very large slivers – more like kindling. These were more than 30% of the total
output. There was little chance for returning the chipper to the supplier since no written performance specification
had been given. Also, by the time the chipper was commissioned the supplier’s business had been sold and the
people we had been dealing with had moved on. Although the Bandit chipper was a very good machine for
chipping the whole trees or longer logs for which it was designed it was no good for tree surgery arisings. The new
owners of the franchise did not take the machine back but did arrange its onward sale. It was sold in March 2005
with £12k loss to the project.

Rudnick and Enners drum chipper

This 8 year old machine was bought in Austria for £33,000. Transport to Croydon and refurbishment added
another £15,000 to the cost. The machine arrived in June 2005 and, after overhaul, was put into routine use in
November 2005. This was one of the earlier large drum chippers designed for fuel chip production and seemed
well suited to processing tree surgery arisings. The in-feed aperture of 550x1000 mm takes the ‘rings’ produced
when tree surgeons dismantle trees; the chipping drum with internal screen prevents excessive production of
oversized slivers, and the 300hp engine provides plenty of power. In practice however, the chipper proved slower
than anticipated chipping only around 30t/day and was temperamental when chipping large logs of denser species
such as oak. As an older machine it was not equipped with the latest stress control systems and tended to shed
drive belts.

Jenz HEM 35 drum chipper

The third chipper, a Jenz HEM 35, was bought second hand in Denmark for a similar price to the other two
chippers. An equivalent machine bought new costs over £150,000. It is a drum chipper similar in basic design to
the Rudnick & Enners chipper but being only 4 years old benefits from advances in design. It has full remote
control, and an easier to load in-feed deck, stress control and is fitted with a similar 300hp engine to the R&E
chipper. It is able to chip any log that will fit the 560X990mm in-feed. It was commissioned in March 2006 and
clearly demonstrates the benefits of buying nearly new equipment rather than very old. Production rates of over
100t/day are easily attainable with tree surgery arisings provided it can be loaded fast enough. This is an ideal
machine for the TreeStation and may give opportunities for contract chipping elsewhere as well.

Our experience shows there is no substitute for extensive trials of a any chipper to ensure that it will adequately
process the available logs. A written performance specification should always be given when buying new
equipment. Where second hand equipment is bought it is even more imperative to try the machine before
purchase.

The screening system consists of a receiving hopper, a Bruks woodchip screener to separate
oversize, fines and desired product, and conveyors necessary to deliver the chip to the store. All
equipment was bought second hand, was installed without problems and has proved effective and
reliable in operation.

The materials handling equipment has to deal with incoming logs weighing up to 2 tonnes and chip. It
is used for organising logs in the yard, loading the chipper, screener and delivery vehicles. To meet
these varied requirements two machines were selected, an excavator fitted with a root rake, ideal for
loading small logs into the chipper and moving large logs, and a telehandler fitted with a large bucket
for handling chip.

12
Fig 6. Tractor mounted log splitter and Fig 7. Screened woodchip being
crane for breaking down large logs discharged

Because of the relatively low throughput expected on site and the large size equipment needed to
process the largest logs, wherever possible we have bought second hand equipment. The only new
equipment was the log splitter, the crane on the tractor to load the splitter and the Bandit chipper. The
reason for this was that these specialist pieces of equipment are the key to efficient operation of the
site and must be reliable. Further consideration of the merits of new of second hand equipment are
discussed in Box 4.

Box 4. New or second hand equipment?

At the start of the project it was thought that a new machine, even if could not deal with the largest logs would
be suitable. As the project progressed our view changed to favour second hand equipment. At the relatively
small scale of the Croydon TreeStation it was difficult to justify the cost of the ideal chipper bought new: a
large drum chipper with powered in-feed and remote control. Factors involved in the choice of new or second
hand equipment are summarised below.

New equipment:
• can be supplied against written performance specifications giving a means of recourse if it does not
perform as expected;
• is of the latest design which should be the most efficient and cost effective, but may be unproven in
regular use;
• has dealer backup with spares readily available;
• should be reliable if regularly maintained;
• can easily be demonstrated, often at the buyers premises using the feedstock that will be encountered
in routine use; but
• costs considerably more than second hand equipment.

Second hand equipment

• is cheaper than new. For large fuel chippers there is a much larger market in Europe than the UK,
where second hand prices are significantly higher than on the continent;
• is bought ‘as is’ with no recourse to the vendor if it fails to work satisfactorily;
• may not have the latest technical innovations but should be able to demonstrate a good track record in
routine use;
• is often harder to have demonstrated, particularly on-site;
• will not last as long and may have increased repair and maintenance costs compared to new
equipment;
• overhauled and refurbished equipment may come with a guarantee and can be as durable as new
machines at a considerable saving on the new price; but
• often you get what you pay for and the cheapest machines may be costly in downtime and repairs in
the longer term. 13
Lessons from equipment:
• To reduce manual handling and increase productivity the bigger the chipper the better.
• Second hand equipment is well worth considering, indeed it may be the only way in which to
adequately equip a site operating at this scale.
• Log splitters are useful for breaking down the largest logs but are labour intensive in
operation. Consider buying a bigger chipper or finding alternative uses for the largest logs.
• Screening is essential for processing material chipped by tree surgeons to remove the drink
cans and other debris that inevitably get mixed up with the chip. It is also useful to eliminate
excess fines and slivers.

Costs
The total capital cost of the project was £190,700 broken down as shown in Table 3. in addition to the
costs shown in the table project management and staff costs at BioRegional and City Suburban had
to be financed.

Funding for the capital works came from several sources:

• grant funding by the Norlands Foundation, The Carbon Trust and Scottish Power’s Green
Energy Fund with smaller amounts from WWF (UK) and the Mitchell Trust;
• direct investment by City Suburban Tree Surgeons Ltd. and BioRegional; and
• in-kind contributions from London Borough of Croydon.

Element Cost (£)

Woodchip store building

Woodchip store building 46,207
Chip screening system 17,533
Electrical installation 5,172
Subtotal for woodchip store 68,912

Chipper
Bandit XP280 disc chipper, purchase price 41,788
sale price -30,000
Nett cost of bandit chipper 11,788
*Rudnick & Enners drum chipper (including 43,000
overhaul)
* Doppstadt Trac high speed tractor for R&E 20,000
chipper
Subtotal for chipper 74,788

Log splitting
Posch 25t log splitter 6,000
*Valmet 665 4WD tractor fitted with 9,000
Botex 360TL crane 10,000
Subtotal for log splitting 25,000

Materials handling
*Merlo telehandler and *excavator 22,000 22,000
Massey Ferguson 4WD tractor and 14t grain already on site
trailer
TOTAL CAPITAL COST 190,700
* bought second hand
Table 3. Capital cost of setting up woodchip production at the Croydon TreeStation

14
Not all these sources of finance are available now but new grants are coming forward from various
government programmes, utility companies’ renewable energy trusts, the Big Lottery Fund and
specific local grant schemes. The recent response of the government to the findings of the Biomass
Task Force indicates that there will be continuing support for the development of chip production
capacity and supply chain infrastructure over the next five years at least.

The likely cost of developing new TreeStations is given in Table 4 below. This is based on the costs
encountered at Croydon but represents a likely maximum investment needed using similar
equipment. Alternative choices are always available, particularly for items like the chipper and costs
can be cut if, for example, a storage shed and concrete hardstanding are in place.

Element Cost (£)

woodchip store 40,000
concrete hardstanding 15,000
Utilities:
3 phase power installation 6,000
mains water or rainwater collection 5,000
Total built infrastructure 66,000

log splitter 6,500

*tractor with crane for logsplitter 19,000
*chipper 75,000
*tractor to use with chipper and trailer 20,000
*excavator for loading chipper 10,000
*trailer for chip around site 5,000
*loader with large bucket (telehandler) 10,000
bunded fuel storage 3,500
*screener and associated conveyors 17,500
Total equipment 166,500

Total capital cost 232,500

*bought second hand
Table 4. Capital costs to set up woodchip production from arboricultural arisings.

Project partnership
BioRegional could not have implemented the project without working in partnership with London
Borough of Croydon and City Suburban Tree Surgeons Ltd. BioRegional and the Council had worked
together on several projects concerned with woodland management and use of timber produced in
the borough so knew each other well. City Suburban were managing the street trees in the borough
and became interested in the project which matched the company’s aims of best environmental
practice.

BioRegional initiated the project, planned the site, raised funding, led the construction of the facilities
and market development for the chip. The Council provided a site adjacent to their green waste
composting site, made raw material available for processing and gave support through their Waste
Management Team and Trees and Woodlands Officer. City Suburban, who joined the project at a
later date were able to provide significant extra investment, huge enthusiasm, deploy skilled staff to
work on site and were the key to identifying and purchasing the Rudnick & Enners chipper from
Austria and the Jenz chipper from Denmark. They were also able to bring a wealth of practical
experience which kept the business focus of the project sharp.

15
Lessons from partnership working
• For a small organisation like BioRegional, which employs just 25 people, partnership working
is essential.
• Sharing resources such as a weighbridge with the Council and having access to their
composting site for disposal of excess fines reduces both investment and operating costs.
• Similarly, it would be impractical for BioRegional to employ staff to work just on woodchip
production but City Suburban can integrate this into their wider work programme.
• Each partner has showed particular strengths and contributed to the overall success of the
project.
• Partnership with larger commercial organisation in particular allowed the project to move
quickly in purchasing the second and third chippers and materials handling equipment.

Longer term operational arrangements

If the site is to succeed as a commercial operation it must secure sufficient income for additional
investment to further improve the site, replacement of equipment as necessary, and make some profit
for the operator.

At present chip is sold to large users, principally Slough Heat and Power (SH+P). The price paid by
SH+P, currently £21 per tonne delivered, is insufficient for profitable operation of a site like Croydon,
producing 10,000 tonnes a year or less. Therefore, an agreement has been reached with Croydon
Council to pass on £22/tonne of the gate fee they receive for material dropped off at the yard. This
provides sufficient revenue to maintain the site but not a commercial rate of return for the operator.
The key to long term success is the development of the local, smaller scale biomass heat market.
The price in this market is set not by competing sources of woodchip but by comparison to fossil fuel
prices, in London natural gas. At current high gas prices woodchip delivered at £56/tonne (30%mc)
delivers energy at 1.6p/kWh, an attractive option compared to gas at 2.5p/kWh or more. In addition
woodchip also achieves the other commercial and environmental benefits for the project partners
noted above.

To reduce risk for all parties and facilitate the integration of woodchipping into Croydon’s waste
management arrangements the assets of the project owned by BioRegional were handed over to the
Council. At the same time a contract for the operation of the woodchipping site for three years by City
Suburban was concluded, giving them a secure base on which to develop the business. After this
time woodchipping for fuel is expected to form part of a package including management of the
Borough’s street and park trees that the Council will put out to tender.

In this way it is intended to institutionalise the production of woodchip fuel at Croydon and ensure it
carries on over the long term.

Regulation
No problems have been encountered in using chip from tree surgery arisings in biomass boilers.
Although it is sometimes called “waste” it is recognised as clean virgin timber without any potential
contamination problems that might give rise to pollution.

Woodchip production from tree surgery waste (and other natural, unprocessed wood) is exempt from
needing a waste management licence under paragraph 21 of the Waste Management Licensing
Regulations 1994. Up to 1000 tonnes of chip may be stored on site. Due regard to prevention of
leechate runoff still has to be made if the chip is stored in the open.

Operational experience
In the 6 months since the site began operation over 600 tonnes of woodchip have been produced and
sold. Initial production rates were very low but have increased steadily as the staff have became fully
familiar with the equipment and working methods on site have been refined.

16
The production record is:

Month (2006) tonnes sold comments

January 68 Accumulated stock from previous months sold
February 29
March 212 Jenz chipper bought
April 242
May 67 SH+P shut down for annual maintenance and breakdown, just one
load a week accepted from the TreeStation, showing need to
develop additional markets. Several hundred tonnes of chip in
stock.
Total 618

There is around 12 tonnes a day of waste coming from Croydon Council’s tree management
programme and the quantity from private arboricultural contractors is only rising slowly. To increase
throughput and manage their waste more effectively City Suburban have started to bring tree waste
in from nearby boroughs where they are working using 35 m3 hook lift bins. This reduces disposal
costs for the councils involved. In June input to the site was approximately 35t/day and is set to rise
further to around 50t/day by the end of 2006.

The Croydon TreeStation is becoming a processing centre for arboricultural waste from a wider area
with collection points for the waste which is brought a short distance of less than 10 miles to Croydon.
This indicates that only a few TreeStations are needed to serve the whole of London.For a more
detailed discussion of the potential to produce woodchip fuel in London please see the report:
Biomass fuel assessment for the Z-squared combined heat and power plant available from the
publications page on the BioRegional website (www.bioregional.com).

Financial evaluation
In this start up period it has not been possible to identify a month where production was uninterrupted
ether by new equipment arriving on site or by maintenance and breakdown at Slough Heat + Power.
Nevertheless, experience so far has enabled the development of standard working practices and
assessment of the productivity and cost of operation of the equipment on site, giving a good basis for
estimates of costs and benefits. In Table 5 below the costs already available are used to give a
reliable estimate of the income and expenditure for a typical month at the Croydon TreeStation.

The relatively small profit shown above underlines the importance of developing the local heating
market in order to achieve a commercial rate of return on the investment. Increasing the amount of
woody waste would also improve the profitability of the site, provided this could be done without the
need for additional labour.

Table 5 is on the next page

17
 Income: £
Gate fees 16,060
Sales to SH+P @ £11.00/t ex yard 7,854
Total 23,914

Expenditure:
Labour (including NIC etc.) 4,017
Transport for incoming logs and chip 3,360
Fuel and maintenance 4,284
Other consumables 3,150
Market development costs 2,140
Management and overheads 2,310
Depreciation 3,325
Total costs 22,586

Monthly profit 1,328

Notes:
ƒ Gate fees are a mix of £10/t from Croydon Council material and £22 for other
waste
ƒ Production is based on a planned 50t/day but 20% downtime has been allowed
for breakdowns etc.
ƒ All sales are to Slough Heat and Power at £11/t loaded on Slough’s vehicles.

Table 5. Expected income and expenditure for a typical month at the Croydon TreeStation

Conclusions
Our objectives were:
• to demonstrate a local scale supply chain for woodchip made from arboricultural arisings and
to show this could be done on a commercial basis;
• to create a sustainable use for tree waste; and
• to act as a catalyst for the development of local biomass heating installations.

Despite setbacks during implementation of the project this has been achieved:
• The Croydon TreeStation is now set to produce up to 10,000t/yr of high quality woodchip on a
fully commercial basis.
• The availability of woodchip, coupled with a supportive planning policy from Croydon Council,
has led to significant adoption of woodchip heating by developers with over 2MW of heating
planned in the borough.
• Almost 100 visitors have come to the TreeStation to see what we have done and learn from
our experience.
• All the partners now have a clear idea of what is necessary to set up woodchip production at
this scale and it will inform the expansion of the sector in London and elsewhere.

The TreeStation is a work in progress. Much still remains to be done to develop chip drying methods,
identify woodchip delivery systems for places with restricted access and to further develop the
market. The Croydon TreeStation is an important first step for BioRegional which will inform our work
to further develop woodchip supplies across London and elsewhere.

18