Variations in Biomass Transport Cost of Cellulosic Biorefineries

Abstract

Studies have evaluated ways to reduce biomass cost through optimization of biorefinery location by focusing on biomass transport cost as one of the primary drivers of overall biomass cost. While these studies have optimized a significant proportion of the biomass cost, most of the studies have ignore variations in biomass transport cost as a result of variations in biomass yield density, and variations in unit transport price index. Yet, other studies have provided models for farmer participation vs. incentives offered to participate in biomass supply market, there is a gap in understanding how biomass transport cost is related to farmer incentives, and the overall implication of variations in biomass yield density and transportation index on composite biomass cost that comprises of biomass transportation and farmer incentives. This study bridges these gaps. By developing a theoretical biomass transport model, the variations in biomass transport cost is analysed. A cost model is then developed that accounts for the effect of incentives to farmers on biomass transport cost. The study finds that cellulosic biorefineries will be exposed to 10-20% variation in biomass transport cost as a result of variations in biomass yield density and unit transport cost index. Focusing on optimizing biorefinery location, based on a deterministic biomass transport cost will increase biomass cost by 15 to 20%, and significantly expose biorefineries to input cost variations.

Keywords: Corn Stover, Supply Market Structure, Biomass Cost Model, Cellulosic Biofuels