From Forest to Timber: an Ecosystem in Peru

Peru Chemical Technology & Fine Materials Energy

The Association of Forestry Producers of Ucayali (Asociación de Productores Forestales Ucayali, APROFU) unites dozens of sawmills in Pucallpa, Peru. APROFU contacted PUM to cooperate on maximising the value of byproducts after processing logs into planks.

Tropical hardwood logs from the Peruvian Amazon are transported via the Ucayali River to Pucallpa. Here, the sawmills process these logs into planks, generating a significant amount of wood waste. Only half of the logs’ weight ends up as finished products. The remainder comprises various forms of residual materials, including rectangular wood pieces, non-rectangular wood including bark, and sawdust. Often, these byproducts either end up at the sawmills or are converted into charcoal or other low-value products. Recognising the potential of these materials, the sawmills, united under APROFU, sought the expertise of PUM in enhancing the value of these residual materials, the remaining 50% of the logs. Herman Gels, PUM expert in Energy and specialised in Circular Economy and Waste & Environment, collaborated with APROFU through advice on location, leading to the following insights:

Herman’s insights were based on very limited data and the mass balance must be accurately established per sawmill to determine actionable next steps. Additionally, Herman encourages APROFU members to collectively strive for a sufficiently large scale to improve the valorisation of residual streams:

Rectangular wood remnants (25%): Finger joints and block boards.
Non-rectangular wood remnants (15%): Shredding and processing into chipboards.
Sawdust (10%): Processing into wood pellets for regional and global markets.

Herman discouraged traditional conversion into charcoal due to emissions of harmful substances to both human health and the environment. Additionally, he advised against high-tech processing into charcoal because of its high costs, the need for advanced chemical-technological skills, and the lack of proven liability of the technology.

Business ecosystem

PUM aims to operate within business ecosystems, stimulating collaboration among businesses to address common challenges and opportunities, ultimately creating more economic, social and ecological value. In this particular project, the expert identified possibilities to enhance the entire value chain, from harvesting timber to the end product. Herman therefore advocates for increased collaboration among APROFU members, as well as between APROFU and domestic and international research institutes, along with businesses involved in the second transition, such as furniture manufacturers and construction companies. Once APROFU has completed the mass balances for its individual members, PUM is prepared to facilitate a follow-up process. This will involve connecting APROFU through remote advice with potential technology suppliers, customers, and investors outside of Peru.

During the project review, sector coordinator Hans Blom highlighted the broad applicability of this request and the PUM approach, encouraging other country coordinators to look for similar high-impact waste wood upgrading initiatives in their respective PUM countries.