Economic Opportunities for Biomass Harvest of Invasive Giant Reed (Arundo Donax L.) in Southern California as Feedstock for the Pulp and Paper Industry

Abstract

This study investigates commercial opportunities in Southern California for removing Giant Reed (Arundo donax L.) biomass and selling it to pulp and paper manufacturing operations. Arundo donax is an invasive non-native grass that threatens riparian zones by increasing risk of wildfire, sediment trapping, and flood damage. It consumes greater water resources than native vegetation and has demonstrated a detrimental impact on wildlife and human infrastructure. Studies have shown Arundo to be a superior source of non-wood fiber for several pulping processes. Arundo fiber has lower cooking and bleaching requirements and produces a higher quality pulp than most traditionally used hardwoods. Plantation agriculture of Arundo has proven to be profitable outside of California, but runs the risk of escape and invasion into wildlands. Utilizing a financial appraisal, this study determined optimal configurations for an enterprise specializing in the direct sale of wild harvested Arundo biomass to pulp mills. I hypothesized that the direct sale of biomass as a pulpwood commodity would fully offset the cost of removal from the wild and generate a profit. The financial appraisal revealed that a business operation that chips, transports, and sells Arundo biomass could be profitable. The study area covered California coastal watersheds from the Salinas River in Monterrey County in the north to the Tijuana River in the south and utilized existing Arundo distribution data. Pulp mills in California and Arizona were mapped to determine the closest mill for biomass delivery. Harvest system cost estimating models from the forestry sector were used to determine harvest system and transport costs. These were weighed against market index prices for softwood chips. A sensitivity analysis of variable transport distances and equipment levels determined that an optimal operation consists of a ground crew running a disk chipper and a skid-steer harvester. A transport fleet of three truck tractors towing four chip trailers allowed for a harvest resulting in 250 acres of Arundo cleared per year and an average annual net profit of $1,000,000 with a 648% profit margin. Direct benefits of biomass sale were then incorporated into a comprehensive cost benefit analysis (CBA) for Arundo control in the study area. Cumulative environmental benefits of Arundo removal were calculated in relation to costs and benefits of biomass sales. The average annual profit from Arundo biomass was 62% of average total removal costs. Incorporating direct sale of biomass into current restoration efforts would provide a nearly $5,000 per acre subsidy and solve the logistical challenge of responsibly disposing of Arundo biomass.