Bioenergy power generation in Inner Mongolia, China: supply logistics and feedstock cost

Abstract

SUMMARY In China, high feedstock cost and supply logistics constrain the development of the wood bioenergy sector. This study examines the cost structure and supply logistics for two locations in Inner Mongolia: Naimanqi which has a power plant supplied by a collectively owned forest and Arxan, where a proposed power plant would be supplied by a state-owned forest. The study areas differed in supply logistics and management structure but were alike in that the largest component of feedstock cost was labour. The feedstock cost varied between Naimanqi and Arxan due to the differences in collection process, equipment, hauling distance, transportation cost and administration cost. The case study provides insight into the economics of bioenergy feedstock from forests in northern China.