Abstract
Finnish forest companies aim to produce biodiesel based on the Fischer-Tropsch process from forest residues. This study presents method to evaluate biomass availability and supply costs to the selected biorefinery site. Forest-owners’ willingness to sell, buyers’ market share, and regional competition were taken into account when biomass availability was evaluated. Supply logistics was based either on direct truck transportation deliveries from forest or on railway/waterway transportation via regional terminals. The large biomass need of a biorefinery demanded both of these supply structures, since the procurement area was larger than the traditional supply area used for CHP plants in Finland. The average supply cost was 17 €/MWh for an annual supply of 2 TWh of forest biomass. Truck transportation of chips made from logging residues covered 70% of the total volume, since direct forest chip deliveries from forest were the most competitive supply solution in terms of direct supply costs. The better supply security and lower vehicle capacity needs are issues that would favour also terminal logistics with other raw-material sources in practical operations. One finding was that the larger the biomass need, the less the variation in biomass availability and supply costs, since almost the whole country will serve as a potential supply area. Biomass import possibilities were not considered in this study.
Highlights
In Finland, the target for renewable energy as a share of final energy consumption will be 38% by 2020 (Long-Term Climate and Energy Strategy, 2008)
The Climate and Energy Strategy of Finland presupposes wood fuel primary use to achieve the level of 335 PJ under the base scenario or 349 PJ in the target scenario by 2020 (Long-Term Climate and Energy Strategy, 2008)
The difference between the scenarios follows from the increased forest chip use, while use of forest industry volume-dependent wood by-products and black liquor is forecast to decline according to both scenarios, which underpins the development of forest chip use
Summary
In Finland, the target for renewable energy as a share of final energy consumption will be 38% by 2020 (Long-Term Climate and Energy Strategy, 2008). In the year of comparison 2005, the share was 28.5%, but it has fallen to 26% in 2010 because of the declining production volumes in the forest industry (Statistics Finland, 2011). Wood fuels accounted for 81% (308 PJ) of renewable energy primary use (380 PJ) in 2010 (Statistics Finland, 2011). The Climate and Energy Strategy of Finland presupposes wood fuel primary use to achieve the level of 335 PJ (forest chips: 76 PJ) under the base scenario or 349 PJ (forest chips: 86 PJ) in the target scenario by 2020 (Long-Term Climate and Energy Strategy, 2008). The study by Pöyry Energy (2009) estimated that supply by products would decline some 16% (16 PJ) between 2005 and 2010
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