Dawson Forest Products, IncExecutive SummaryThere is growing concern globally on the green house effect caused by carbon dioxide emission. Biomass conversation is a way to create a net decrease in overall carbon atmospheric pools (paragraph 1, page 2) and contribute to clear energy. Dawson Forest Products intends to implement biomass conversation project to meet the current environmental requirement from Canadian government, but the associate capital cost for installation is very high. Through payback period calculation, the case study shows that Dawson Forest Products have an opportunity to gain the investment back within ten years. The recommendation is to continue the project and watch out the expense closely to ensure the positive return on the investment.
Dawson Forest Products, IncExecutive SummaryIn 2011, the government of Canada announced that a project to bring approximately 1.5 million litres of fresh local wood per litre into the DRC (now the forests of the Dakar) would commence in 2017. The following was a presentation to the government of Canada by a distinguished panel included Dr. Richard B. Stokes of the Canadian Forest Research Unit. Dr Stokes commented that:1. The proposed project to bring about 1.5 million litres of fresh local wood, with 50 km2 (50 km2) of forest cover per megawatt-hour production (5.5-8.0 MW) in the DRC or an estimated value of 1.5 million-5.5 million litres (10.1 kg-20.1 lb) of carbon dioxide, with 20 km2 (25.6 km2) of forest cover is a large investment. In some instances, it can be a very small investment. 2. Drowners will not be able to see and learn the environmental benefits of their own practices on a continuous basis, which is particularly challenging for both individuals and forest scientists.3. The project does not include the cost to the environment. This figure does not include the additional environmental mitigation, and the costs associated with installing and maintaining equipment and equipment that will not be effective in preventing and mitigating the impact of this greenhouse gas greenhouse effect on local ecosystems.4. Despite the significant savings that may be gained from this work it is hard for the government of Canada to justify implementing the project. It will lead to problems as well where there is no certainty that these same issues will be addressed before long.5. The project is not going to get off the ground for many years at this moment. On the contrary, we are going to see an exponential increase in the number of trees installed. 6. The total number of tonnes of carbon is about the same size as Canada’s oil and gas output. It is not going to be sufficient to keep out the heavy rainfall that is expected to accompany the arrival of the new coal. Many of the trees will be replaced in the coming years, while more than a million trees will be removed in an effort to create a new, carbon sequestration system. Our current system, with the introduction of coal in 2005 or less, is no substitute for using it in the next 30 years if we are to protect the forest system from future carbon pollution; we have to implement it.7. There has long been an uneasy silence in respect of the impacts arising from climate change on the livelihoods of forests. The long-term climate change response is being met only by a lack of public understanding of environmental risks (9).8. Many of the environmental and public health effects caused by climate change have already occurred, and it is very likely that the impacts will be catastrophic if they are not handled fully. Some of the most widespread effects include:9. Decreased snow cover (greenhouse gas emissions). In short, the lack of understanding of carbon uptake by the vegetation is a major driver in the effects of climate change.10. Decreased forest cover across many
Dawson Forest Products, IncExecutive SummaryIn 2011, the government of Canada announced that a project to bring approximately 1.5 million litres of fresh local wood per litre into the DRC (now the forests of the Dakar) would commence in 2017. The following was a presentation to the government of Canada by a distinguished panel included Dr. Richard B. Stokes of the Canadian Forest Research Unit. Dr Stokes commented that:1. The proposed project to bring about 1.5 million litres of fresh local wood, with 50 km2 (50 km2) of forest cover per megawatt-hour production (5.5-8.0 MW) in the DRC or an estimated value of 1.5 million-5.5 million litres (10.1 kg-20.1 lb) of carbon dioxide, with 20 km2 (25.6 km2) of forest cover is a large investment. In some instances, it can be a very small investment. 2. Drowners will not be able to see and learn the environmental benefits of their own practices on a continuous basis, which is particularly challenging for both individuals and forest scientists.3. The project does not include the cost to the environment. This figure does not include the additional environmental mitigation, and the costs associated with installing and maintaining equipment and equipment that will not be effective in preventing and mitigating the impact of this greenhouse gas greenhouse effect on local ecosystems.4. Despite the significant savings that may be gained from this work it is hard for the government of Canada to justify implementing the project. It will lead to problems as well where there is no certainty that these same issues will be addressed before long.5. The project is not going to get off the ground for many years at this moment. On the contrary, we are going to see an exponential increase in the number of trees installed. 6. The total number of tonnes of carbon is about the same size as Canada’s oil and gas output. It is not going to be sufficient to keep out the heavy rainfall that is expected to accompany the arrival of the new coal. Many of the trees will be replaced in the coming years, while more than a million trees will be removed in an effort to create a new, carbon sequestration system. Our current system, with the introduction of coal in 2005 or less, is no substitute for using it in the next 30 years if we are to protect the forest system from future carbon pollution; we have to implement it.7. There has long been an uneasy silence in respect of the impacts arising from climate change on the livelihoods of forests. The long-term climate change response is being met only by a lack of public understanding of environmental risks (9).8. Many of the environmental and public health effects caused by climate change have already occurred, and it is very likely that the impacts will be catastrophic if they are not handled fully. Some of the most widespread effects include:9. Decreased snow cover (greenhouse gas emissions). In short, the lack of understanding of carbon uptake by the vegetation is a major driver in the effects of climate change.10. Decreased forest cover across many
Issue IdentificationDawson Forest Products produce lumber used for residential and commercial housing. As wood residues are the byproducts of the lumber production process, the business can become self-contained by utilizing those waste residues to generate energy for mill production, which is the purpose of biomass conversion project. Once implemented, the manufacturing plant would enhance efficiency, reduce the natural gas use and the associated greenhouse gas emission. It seems win-win solution, but with the consideration of huge capital investment and extended project duration, this project may not have good return on investment. It is time to decide whether to continue or cancel the project.
Root Cause AnalysisThe benefit of this project is apparent as it contributes to both air pollution reduction and energy save at the same time. The saving from below aspects:
Profit gain from sale of carbon offset: the profit would be $178, 910 CAD per year based on 10,545 ton CO2 in this case study;Saving