Supply chain cost analysis of long-distance transportation of energy wood in Finland

Abstract

Abstract The increasing use of bioenergy has resulted in a growing demand for long-distance transportation of energy wood. For both biofuels and traditional forest products, the importance of energy efficiency and rail use is growing. A GIS-based model for energy wood supply chains was created and used to simulate the costs for several supply chains in a study area in eastern Finland. Cost curves of ten supply chains for logging residues and full trees based on roadside, terminal and end-facility chipping were analyzed. The average procurement costs from forest to roadside storage were included. Railway transportation was compared to the most commonly used truck transportation options in long-distance transport. The potential for the development of supply chains was analyzed using a sensitivity analysis of 11 modified supply chain scenarios. For distances shorter than 60 km, truck transportation of loose residues and end-facility comminution was the most cost-competitive chain. Over longer distances, roadside chipping with chip truck transportation was the most cost-efficient option. When the transportation distance went from 135 to 165 km, depending on the fuel source, train-based transportation offered the lowest costs. The most cost-competitive alternative for long-distance transport included a combination of roadside chipping, truck transportation to the terminal and train transportation to the plant. Due to the low payload, the energy wood bundle chain with train transportation was not cost-competitive. Reduction of maximum truck weight increased the relative competitiveness of loose residue chains and train-based transportation, while reduction of fuel moisture increased competitiveness, especially of chip trucks.