Design of Sustainable Biomass Value Chains – Optimising the supply logistics and use of biomass over time

Abstract

Modern bioenergy systems have significant potential to cost-effectively substitute fossil energy carriers with substantial GHG emissions reduction benefits. To mobilise large-scale biomass supplies, large volumes of biomass feedstock need to be secured, and competitive feedstock value chains need to be developed and optimised, based on identification of appropriate combinations of feedstock and conversion technologies. This makes assessments of biomass resource availability a critical part of the biomass value chain. Given the global distribution of biomass production regions and markets as well as the nature of raw biomass, pre-processing biomass plays an important role in improving biomass supply chain economics. Logistics and transport are key costs components in the biomass value chain and major investments in infrastructure and capacity are required to realise large scale biomass supplies. Establishing this infrastructure is gradual and takes time, which also applies to the mobilisation of large volumes of biomass. These two aspects are interrelated and region specific due to the unique settings for biomass feedstock production and local infrastructure. Given this context, there is need for examining the entire biomass supply value chain so as to understand the many elements involved in bioenergy mobilisation. Thus, the main objective of this thesis was to design sustainable biomass energy supply chains to enable competitive mobilisation of large scale biomass supplies for both the short and long term. With regards to resource assessments, the analysis showed that, under strict sustainability criteria, substantial volumes of biomass exist which could – if efficiently mobilized – contribute significantly to renewable energy production. Currently, it is more cost-effective to ship densified solid biomass, e.g pellets, from low cost biomass production regions of the world for final large scale conversion in the major biofuel markets. Early biomass conversion to secondary energy carriers in the supply chain is only cost effective where infrastructure already exists for low cost transport to the market. Thus in the short term, wood pellets are expected to play an important role as the internationally traded solid biomass commodity. In the near future, torrefied pellets may become the dominant and preferred internationally traded solid biomass commodity as the technology is commercialised. Overall, advanced biofuels are attractive against fossil fuels both economically and also in terms of GHG reductions. At current conditions, advanced biofuels can be delivered from about 12.5 $/GJfuel and reduce GHG emissions by at least 60%- the threshold of minimum GHG emission saving set in the EU renewable energy directive for biofuels. However, advanced biofuel technologies are being developed and their successful commercialisation of will depend on overcoming several technical and economic challenges. Increasing operational scale, rapid deployment and technological learning are key to biofuel cost reduction. In addition, a large, stable supply of biomass feedstock needs to be guaranteed. To better understand the biomass resource base and implementation possibilities, more scientific research needs to be conducted in developing countries to improve the quality of biomass resource assessments and investigate implementation business models.