In order to increase the harvesting volumes of energy wood and pulpwood from first thinnings, harvesting costs have to be reduced significantly. Metsateho Oy studied the integrated harvesting of pulpwood and energy wood based on a two-pile method, where industrial roundwood (pulpwood) and energy wood fractions are stacked into two separate piles when cutting a first-thinning stand. The productivity and cost levels of the integrated, two-pile cutting method were determined, and the harvesting costs of the two-pile method were compared with those of conventional separate wood harvesting methods. In the time studies, when the size of removal was 50 dm(3), the productivity in conventional whole-tree cutting was 6% higher than in integrated cutting. With a stem size of 100 dm(3), the productivity of whole-tree cutting was 7% higher than in integrated cutting. The results indicated, however, that integrated harvesting based on the two-pile cutting method enables harvesting costs to be decreased to below the current cost level of separate pulpwood harvesting in first-thinning stands. The greatest cost-saving potential lies in small-sized (d(1.3) = 7-11 cm) first thinnings. The costs of forest haulage after integrated pulpwood and energy wood cutting were higher than those of separate wood harvesting because of lower removals in integrated harvesting. The results showed that when integrated wood harvesting is based on the two-pile cutting method, the removals of both energy wood and pulpwood should be more than 20-25 m(3) ha(-1) at the integrated harvesting sites in order to achieve economically viable integrated procurement. (C) 2011 Elsevier Ltd. All rights reserved.