The Impact of Transportation Costs on the Profitability of Heat and Power Generation with Wood Products

Abstract

International   markets   for   wood   biomass   are currently   emerging.   Due   to   the   corresponding   environmental benefits, the domestic wood combustibles are an important energy resource,  although  certain  measures  must  be  taken  to  make  the supply chain more cost-effective and efficient. One of  the  major contributors to the  costs  of wood  products is transportation,  which  is  determined  by  the  geographical  location of  forests  and  energy  crops.  Within  this  paper  techno-economic parameters of all substantial process steps along the biomass value chain  are  estimated.  The  potential  for  logs  and  chips,  which includes  justifiable  transportation  distances  for  these  kinds  of biomass, will be analyzed. To reach these objectives a simulation model  has  been  developed.  The  results  may  be  used  for  socio-economical  resource  allocation  and  planning  of  future  energy plants.