BIOMASS S UPPLY CHAIN ASSESSMENT

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BIOMASS SUPPLY CHAIN ASSESSMENT

CLAUDIA BASSANORenewable Sources and Innovative Energetic Cycles

Supply chain assessment

C.R. CASACCIA – Via Anguillarese, 301 TEL. + 39 06 3048404200060 S. MARIA DI GALERIA FAX +39 06 30486486ROMA E-Mail: [email protected]

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CONTENTSCONTENTS

Advantages and disadvantages from a sustainable

energy use of biomass

Planning bio energy chain

Biomass Resource Assessment


Analysis of biomass supply chain cost

Biomass supply chain assessment

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Advantages from a sustainable energy use of biomass

Forestall biomass

Protecting the wood land

Forest management

Less firewood hazard

Agricoltural biomass

Alternative to disposal problem since burning in the field is being discouraged

Land set aside

Avoid the land abandon

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Economic benefits

Reduces dependence on foreign oil

Energy use of biomass offers an opportunity to use local and regional available renewable energy sources

Improves rural economy and jobs

Environmental benefits

reduction in carbon dioxide emissions through the carbon sequestration by the trees

Advantages from a sustainable energy use of biomass

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Barriers to bioenergy expansion

Higher costs of bioenergy technologies and resources

not homogenous biomass geographic distribution

administrative and legislative bottlenecks

not sustainable use of forestall biomass without any plan

and management may cause deforestation and adverse

impact to the environment.

the project success of biomass utilization need

interdisciplinary of several technical and scientifically skills

Disadvantages from a sustainable energy use of

biomass

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Disadvantages from a sustainable energy use of

biomass

Overcoming these barriers

improving the cost-effectiveness of conversion technologies;

developing and implementing modern, integrated bioenergy

systems

developing dedicated energy crops productivity

establishing bioenergy markets and developing bioenergy logistics

valuing of the environmental benefits for society: e.g. on carbon

balance.

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Biomass has several advantage but:

competitive fuel

It’s necessary planning

Barriers to the promotion of biomass energy use.

The lack of an efficient and cost-effective supply chain system (harvesting, transportation, and delivery of biomass resources)

If each step of bioenergy chain is not optimised the final cost of produced energy may not result to be competitive in comparison with energy from traditional fossil fuel

BIOMASS TO ENERGY

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BIOMASS TO ENERGY

PlanningSupply chain complexity

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BIOMASS TO ENERGY

Complexity is not only a problem of choose the correct logistic chain for your specific situation, but there are other problem like:

low territorial density, his not homogenous geographical

distribution

seasonality , it’s necessary optimise the storage to have a

constant feed to the plant of energy conversion

choose of correct energy conversion technique adapted

to the territorial context

The project success of biomass utilization need interdisciplinary of several technical and scientifically skills

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The goal of a biomass resource assessment and of a supply chain is to promote the cost-effective, sustainable use of biomass energy.

1. Biomass resource assessment

Identify how much biomass, how much biomass is available, where it is located, its characteristics and the cost

2. Supply chain system assessment

Establish a supply chain to deliver biomass to final use in a efficiently and economy way

Planning biomass supply chain

Assessment of biomass use

Objectives to follow

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3. Best locations for a potential biomass conversion to energy site

Correct plant dimension must be taken into account of the distribution of the demand and the supply in the area

Logistics chains are established to link energy demand and biomass supply

4. Evaluate the economical and environmental impacts of biomass use;


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5.Analyses the different biomass energy technologies,

choose the better technologies for the local necessity


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It’s an important and critical point of a sustainable exploitation of biomass sources

Biomass resource assessment consist to estimate the quantity of material necessary, taking into account technical and environmental constraints, and evaluate the quantity of material that could be recovered and made "available" for biomass energy uses.

Knowing the quantity it’s important because the success of bioenergy is critically dependent on having a large supply of low cost, high quality biomass,

This allow to design correctly the dimension plant on the local resource

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Knowing the type and the quality of biomass it’s important for choose the correct technology of energy conversion

Woody biomass thermo chemical conversion

Cellulose biomass (sugar cane, maize) conversion on ethanol

Oil biomass (canola oil, palm oil) conversion on biodiesel

Knowing the geographic distribution: not homogenous biomass distribution in the territory

It’s necessary planning correctly the supply chain so to use only the economically biomass recoverable

Resource assessments require making a lot of assumptions

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Theoretical potential: the theoretical maximum biomass potential

Technical potential: the potential that is limited by the technology of harvesting used and the natural circumstances.

Economical potential: the technical potential that can be produced at economically profitable levels.

Ecological potential: the potential that takes into account ecological criteria, e.g. loss of biodiversity or soil erosion.

There is always a difference between the existing total biomass supply and the economically biomass “available” supply.

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Forest Wood Residues

Information on the forest status, their extension (ha), location and type

Source : local statistical institute, the local institution, the Fao and other sources.

How to calculate the biomass yearly obtainable


Theoretical potentiality of forestall biomass

To calculate the wood availability in order to avoid the forest resource consumption, it will be necessary to yearly cutting a biomass quantity less than the quantity that the forest itself is able to regenerate yearly, this value depend on forest local condition.

In Italy for example it is possible suppose the fallowing forest harvesting that allow not altering wood natural physiology:

a percentage of cutting area of 2 % yearly for conifer forest trees

a percentage of cutting area of 4 % yearly for coppice forest trees

This harvesting correspond to a turn of 50 years (2%) and 25 years (4%)

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Protect law

To evaluate the others uses of wood from forest industry


Residue yield sets the quantity of biomass yearly obtainable for one hectare of forest

Forest residue yield = 1,5-2 t d.m./ha/year

Technical Forestall biomass available

Accessibility: reality of the territory and his accessibility for barrier like: slope land or not easy road inside the wood, this quantity of biomass can’t be harvested.

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Example: technical forestall biomass available


Hectares 10000

Yield Tonne (d.m./ha/year) 2

Biomass available (ton d.m./year) 20000

LHV (Mwh/ton ) 3,5

Biomass energy potential (Mwh/year) 70000

electric efficiency ( 0,25

Plant electric power (MW) 3

6000 h/year

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Agricultural Residues yearly available

The residues coefficient is the ratio of the dry weight of the residue to the weight of the harvested crop at field moisture.

Crops type Ton dry/ton wet harvested

Crops type Ton dry/ton wet harvested

Soya beans 0.55-2.6 Sugarcane 0.13-0.25

corn 0.55-1.2 Woody crops

0.5-2

No-till farming for corn

Use of residues:

• fertilizer to insure the long-term productivity of the land

• the local use in the farm

Available

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Production and Consumption of Crop Residues in Asia (1995)

Source: AGRICULTURAL AND FOREST RESIDUES - GENERATION, UTILIZATION AND AVAILABILITY1Regional Consultation on Modern Applications of Biomass Energy, 6-10 January 1997, Kuala Lumpur, Malaysia


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Yeld energy crops

Sources: McKendry (2002), Venturi and Venturi (2003).


Yeld range Dry matter Energy

content GJ/t

Crops Fresh matter

t/ha % t/ha Willow 40 10-15 18.7 Poplar 55 10-15 17.3 Fiber sorghum

50-100 25-40 20-30 16.7-16.9

Sweet sorghum

50-100 25-35 12-25 16.7-16.9

Miscanthus 40-70 35-45 15-30 17.6-17.7 Cardoon 25-35 40-45 10-15 15.5-16.8

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Biomass type

Yeld d.m. ton/ha /year hectares

Biomass annually available ton/year

Energy annually available toe/year

Forestal biomass 2 481.743 963.487 289.046

Agricultural biomass 0,925 772.774 714.816 214.445 Energy crops (marginal land) 10 70386 703.860 211.158 Total 1.324.903 2.382.162 714.649

Availability of bioenergy in Sardegna (Italy region)

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Availability of bioenergy in Europe Mtoe/yr

Year Biomass type

2000 2010 2020 Forestry by products & (refined) wood fuels 34 38 42 Solid agricultural residues 25 28 31 Solid industrial residues 11 12 13 Solid energy crops* 16 16 16 Total 86 93 101 Bio-ethanol* 3.07 3.07 3.07 Bio-diesel* 1.02 1.02 1.02 Transport fuels 4.09 4.09 4.09

Source:BTG, 2004

*: It is assumed that 50% of the set-aside area is available for solid energy crops and 25% each for liquid bio-fuel (bio-ethanol and biodiesel) crops

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Careful supply chain planning and logistics management will be of central importance to the success of the biomass industry

The supply biomass chain is constituted by a sequence of activity that from biomass resource lead to energy conversion.

This activity are:

Harvesting

transportation

Storage

Pre-processing

transportation

Energy conversion

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Preprocessing


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first step in the feedstock supply chain:

cost-effective manner.

efficiency of collection machinery

sustainability ( soil compaction, erosion

control)

Harvesting and collection


technical constraints

mechanised methods do not

exist or are not available in an

economic way to collect

forestall or agricultural

biomass

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Biomass harvested

low energy density;

high moisture content;

size, shape, density variables

Preprocessing

Preprocessing treatments

size reduction, cleaning, separating and sorting, mixing/blending, controlling moisture, densifying

chemically or biochemically treating

Biofuels

Chips

Pellets

Briquettes

improved fuel quality

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Chipping and chip load

wood-chips

4mm-10mm thick

15-20mm in length and width

boilers require relatively uniform fuel load

Chippers are used to reduce the size of wood residues for ease of handling and to fit boiler feed systems.

Preprocessing

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Chipping at road side landing or at the power plant?

In the roadside chipping: dependent on each other, ”hot chain”

Chipping at a plant: independent of each other

Chipping at a plant large plants, investment cost is high.

Road side landing chipping system: small plants

?

Preprocessing

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Preprocessing


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Storage is in the forest, at a wood processing area and at the energy conversion plant

Storage

Biomass is seasonal: storage is necessary to assure a constant load during the year to the energy conversion unit.

Biomass has a low density (300-500 kg/m3 apparent density) big storage volumes

Processing methods and yields can be altered by compositional and other changes that occur in feedstock during storage

The storage systems should be integrate with other elements of the feedstock supply chain

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The size of the storage facility depends on type of biomass delivered.

outdoor storage

applied to dry the biomass during the winter from mc 50% to about 30 %; no costs

biochemical and physical modifications to the biomass, biomass may decompose

Storage

Storage may be indoor or outdoor

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Transport direct from collection to energy conversion

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transportation

Transportation is a crucial element Biomass geographical dispersion

The transport cost may became the higher cost in the total delivered cost

Maximum supplying distance between the point of harvesting and the point of the energy conversion plan.

Economically shortest transport distance lead to a supply area limited

biomass low energy density;

fuel high transport costs;

transportations infrastructures availables between the points of biomass collection and transformation point;

environmental impacts from the transportation.

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transportation

Economically shortest transport distance lead to a supply area limited

Maximum supply distance:

Italy 50 km radius

U.S.A 100 mile radius

Power plant size:

Depends on local supply

Depends on local energy demand

The analysis of the total biomass which it’s possible delivered to the energy conversion plant allow to fix a range of plant dimension

Small scale

10 MW

biomass that has lowest transport cost

plant

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Because design an efficient and cost-effective supply chain allows to biomass to be competitor with other conventional fuels (coal, natural gas, oil)


Conclusion: careful supply chain planning and logistics management will be of central importance to the success of the biomass industry.

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Design an efficient and cost-effective supply chain so to be competitive with other conventional fuel.

ANALYSIS OF LOGISTICS COST

Logistics costs (transport, storage and handling) are shown to represent a significant proportion of total delivered cost in biomass supply.

Feedstock cost constitutes about 35-50% of the total production cost of ethanol or power.

The actual percentage depends upon biomass species, yield, location, climate, local economy, and the type of systems used for harvesting, gathering and packaging, processing, storing, and transporting of biomass as a feedstock.

Biomass compete on cost with fuel oil, liquid petroleum gas (LPG) and electrical heating that in many country may be cheaper than wood fuel

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Norwegian market, pulpwood pine, chipping in a terminal. (moisture 30- 40 % )

ANALYSIS OF LOGISTICS COSTS

Scale effect in chipping

Source: “Bioenergy logistics chain cost structure and development potential” by Energidata AS Transportøkonomisk institutt (TØI) and KEMA Consulting- 01 November 2005

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The cost structure for production and delivery of pellets, for small scale application, in the Norwegian market


Source: “Bioenergy logistics chain cost structure and development potential” by Energidata AS Transportøkonomisk institutt (TØI) and KEMA Consulting- 01 November 2005

cost of delivery: 200-230 €/ton on 2005

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The cost of producing biomass fuel is dependent on:

the type of biomass (humidity),

the amount of pre-treatment necessary to convert it to a fuel,

distance to the energy plant,

supply and demand for fuels in the market place.


Factors that may lead to an higher cost:

Biomass fuel is low-density and non-homogeneous and has a small unit size (e.g., individual wood chips are small). Consequently, fuel is costly to collect, process, and transport to power plant.

Biomass-to-energy power plant are much smaller than conventional fossil fuel power plants and therefore cannot produce electricity as cost-effectively as the fossil plants. They don’t benefit of the scale effect

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FUEL PRICE

Fuel prices in Europe 2002/2003 €/MWh

Source Eubionet

Chips prices

Pelets prices

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It is difficult to develop efficient chains if the sector consist of many small parties, each operating within only a small part of the chain.

This might result in a logistics system which is not optimal, with too many transaction links and consequently high costs.

On the other hand, too few players may lead to a lack of competition and monopoly tendencies.

ANALYSIS OF COSTS

The cost of power from conventional biomass combustion is higher than the power generated from fossil fuels

Incentive and Funding

Supporting Policies

PROBLEMS

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Cost of electrical power (€/kWh)

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Source: Enea

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BIOMASS SUPPLY CHAIN ASSESSMENT

Conclusion

It’s necessary planning a bioenergy chain

If each step of bioenergy chain is not optimised the final cost of produced energy may not result to be competitive in comparison with energy from traditional fossil fuel

The goal of a biomass resource assessment and of a supply chain is to promote the cost-effective, sustainable use of biomass energy.

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Thank you for your

attention!

Claudia Bassano

[email protected]

Biomass resources Biomass resources characterizationcharacterization and biofuels and biofuels

BIOMASS S UPPLY CHAIN ASSESSMENT

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