The aim of this paper was to compare the annual economic impact of a large-scale bio-coal pellet plant by raw material specifically for the Finnish Lakeland region. In this study, the total production volume of the theoretical plant was 200,000 tons per year and the raw wood materials used were birch pulpwood, spruce pulpwood, pine pulpwood, and energy wood. These wood materials were young delimbed wood from early thinnings. The main goal of the paper was to illustrate that the energy content differences of raw wood materials affect the economic profitability of a bio-coal pellet plant at regional level. In this case, wood type also has a regional economic impact, which the pellet plant can influence through its raw wood material choices. The raw material comparison was based on measured data and not computational or literary data alone. The study found that lower solid wood energy densities caused higher relative costs for the total supply chain. A parallel phenomenon occurred with the required gross margin of the pellets, where lower energy content caused higher required gross margin for pellet sales. The gross margin was also sensitivity analyzed at different discount rates from 5% to 20%. At each required discount rate, the highest annual economic impact on the region was found for birch pellets, with values of 36.95 - 42.66 million €. Spruce pellets had the smallest annual economic impact, although it had the highest final pellet price in the same cases. The different economic effects were caused by the energy volumes sold.
References
[1]
Basu, P. (2018) Biomass Gasification, Pyrolysis and Torrefaction: Practical Design and Theory. 3rd Edition, Academic Press, Elsevier.
[2]
Krzywanski, J., Fan, H., Feng, Y., et al. (2018) Genetic Algorithms and Neural Networks in Optimization of Sorbent Enhanced H2 Production in FB and CFB Gasifiers. Energy Conversion and Management, 171, 1651-1661.
https://doi.org/10.1016/j.enconman.2018.06.098
[3]
Demirbas, A. (2001) Biomass Resource Facilities and Biomass Conversion Processing for Fuels and Chemicals. Energy Conversion and Management, 42, 1357-1378.
https://doi.org/10.1016/S0196-8904(00)00137-0
[4]
van der Stelt, M.J.C., Gerhauser, H., Kiel, J.H.A., et al. (2011) Biomass Upgrading by Torrefaction for the Production of Biofuels: A Review. Biomass and Bioenergy, 35, 3748-3762. https://doi.org/10.1016/j.biombioe.2011.06.023
[5]
Prins, M.J., Ptasinski, K.J. and Janssen, F.J.J.G. (2006) Torrefaction of Wood: Part 1. Weight Loss Kinetics. Journal of Analytical and Applied Pyrolysis, 77, 28-34.
https://doi.org/10.1016/j.jaap.2006.01.002
[6]
Prins, M.J., Ptasinski, K.J. and Janssen, F.J.J.G. (2006) Torrefaction of Wood: Part 2. Analysis of Products. Journal of Analytical and Applied Pyrolysis, 77, 35-40.
https://doi.org/10.1016/j.jaap.2006.01.001
[7]
Uslu, A., Faaij, A. and Bergman, P.C.A. (2008) Pre-Treatment Technologies, and Their Effect on International Bioenergy Supply Chain Logistics: Techno-Economic Evaluation of Torrefaction, Fast Pyrolysis, and Pelletisation. Energy, 33, 1206-1223.
https://doi.org/10.1016/j.energy.2008.03.007
[8]
Bergman, P.C.A., Boersma, A.R., Kiel, J.H.A., et al. (2005) Torrefaction for Entrained-Flow Gasification of Biomass. Report: ECN-C-05-067, ECN, Petten.
[9]
Poyry Management Consulting Ltd. (2011) Ristiinaan perustettavan biologistiikkakeskuksen liiketoimintasuunnitelma—Liiketoimintasuunnitelman taustamateriaali [Business Plan of Set up Biologistics Center to Ristiina—Background Material of Business Plan]. Published 31 January 2011.
[10]
KC, R., Babu, I., Alatalo, S., et al. (2017) Hydrothermal Carbonization of Deciduous Biomass (Alnus incana) and Pelletization Prospects. Journal of Sustainable Bioenergy Systems, 7, 138-148. https://doi.org/10.4236/jsbs.2017.73010
[11]
Ndibe, C., Grathwohl, S., Paneru, M., et al. (2015) Emissions Reduction and Deposits Characteristics during Cofiring of High Shares of Torrefied Biomass in a 500 kW Pulverized Coal Furnace. Fuel, 156, 177-189.
https://doi.org/10.1016/j.fuel.2015.04.017
[12]
Kaygusuz, K. and Keles, S. (2008) Use of Biomass as a Transitional Strategy to a Sustainable and Clean Energy System. Energy Sources, Part A: Recovery, Utilization, and Environmental Effects, 31, 86-97.
https://doi.org/10.1080/15567030701468225
[13]
Svanberg, M., Olofsson, I., Flodén, J. and Nordin, A. (2013) Analysing Biomass Torrefaction Supply Chain Costs. Bioresource Technology, 142, 287-296.
https://doi.org/10.1016/j.biortech.2013.05.048
[14]
Karttunen, K., Ahtikoski, A., Kujala, S., et al. (2018) Regional Socio-Economic Impacts of Intensive Forest Management, a CGE Approach. Biomass and Bioenergy, 118, 8-15. https://doi.org/10.1016/j.biombioe.2018.07.024
[15]
Fohr, J., Ranta, T., Suikki, J., et al. (2017) Manufacturing of Torrefied Pellets without a Binder from Different Raw Wood Materials in the Pilot Plant. Wood Research, 62, 481-494. http://www.woodresearch.sk/wr/201703/13.pdf
[16]
Tilastot (2018) Englanninkielinen esitysmateriaali (PowerPoint-muodossa) [English Presentation Material (in PowerPoint Format)]. Tilastot [Statistics].
https://www.esavo.fi/tilastot
[17]
Natural Resources Institute Finland (2018) Industrial Roundwood Removals by Region 2017. Database Tables.
http://stat.luke.fi/en/industrial-roundwood-removals-region-2017_en
[18]
Malinen, J., Pesonen, M., Maatta, T., et al. (2001) Potential Harvest for Wood Fuels (Energy Wood) from Logging Residues and First Thinnings in Southern Finland. Biomass and Bioenergy, 20, 189-196.
https://doi.org/10.1016/S0961-9534(00)00075-1
[19]
Petty, A. and Karha, K. (2014) Productivity and Cost Evaluations of Energy-Wood and Pulpwood Harvesting Systems in First Thinnings. International Journal of Forest Engineering, 25, 35-50. https://doi.org/10.1080/14942119.2014.893129
[20]
Alakangas, E., Hurskainen, M., Laatikainen-Luntama, J., et al. (2016) Properties of Indigenous Fuels in Finland. VTT Technical Research Centre of Finland, Espoo.
[21]
Chin, K.L., H’ng, P.S., Go, W.Z., et al. (2013) Optimization of Torrefaction Conditions for High Energy Density Solid Biofuel from Oil Palm Biomass and Fast Growing Species Available in Malaysia. Industrial Crops and Products, 49, 768-774.
https://doi.org/10.1016/j.indcrop.2013.06.007
[22]
Lee, J.W., Kim, Y.H., Lee, S.M. and Lee, H.W. (2012) Optimizing the Torrefaction of Mixed Softwood by Response Surface Methodology for Biomass Upgrading to High Energy Density. Bioresource Technology, 116, 471-476.
https://doi.org/10.1016/j.biortech.2012.03.122
[23]
Asadullah, M., Adi, A.M., Suhada, N., et al. (2014) Optimization of Palm Kernel Shell Torrefaction to Produce Energy Densified Bio-Coal. Energy Conversion and Management, 88, 1086-1093. https://doi.org/10.1016/j.enconman.2014.04.071
[24]
Petty, A. and Karha, K. (2011) Effects of Subsidies on the Profitability of Energy Wood Production of Wood Chips from Early Thinnings in Finland. Forest Policy and Economics, 13, 575-581. https://doi.org/10.1016/j.forpol.2011.07.003
[25]
Natural Resources Institute Finland (2018) Volumes and Prices in Industrial Round Wood Trade. Database Tables.
http://stat.luke.fi/en/volumes-and-prices-roundwood-trade
[26]
Natural Resources Institute Finland (2018) Volumes and Prices in Energy Wood Trade. Database Tables.
http://stat.luke.fi/en/volumes-and-prices-energy-wood-trade
[27]
Strandstrom, M. (2018) Puunkorjuu ja kaukokuljetus vuonna 2017 [Wood Harvesting and Long-Distance Transportation in 2017]. Result Film Series 8a/2018 of Metsateho Oy.
http://www.metsateho.fi/wp-content/uploads/Tuloskalvosarja_2018_08a_Puunkorjuu_ja_kaukokuljetus_vuonna_2017.pdf
[28]
Fohr, J., Karttunen, K., et al. (2017) Regional Added Value of Refining Forest Biomass for Energy Purposes in Finland. Proceedings of 25th European Biomass Conference and Exhibition, Stockholm, 12-15 June 2017, 1598-1601.
[29]
Rinne, S. (2010) Energiapuun haketuksen ja murskauksen kustannukset [The Costs of Wood Fuel Chipping and Crushing]. Master’s Thesis, Lappeenranta University of Technology, Lappeenranta. https://lutpub.lut.fi/handle/10024/74691
[30]
Arpiainen, V. and Wilen, C. (2014) Report on Optimisation Opportunities by Integrating Torrefaction into Existing Industries. Deliverable No. D3.2.
[31]
Ranta, T., Fohr, J. and Soininen, H. (2016) Evaluation of a Pilot-Scale Wood Torrefcaction Plant based on Pellet Properties and Finnish Market Economics. International Journal of Energy and Environment, 7, 159-168.
https://www.ijee.ieefoundation.org/vol7/issue2/IJEE_05_v7n2.pdf
