IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v183y2016icp1053-1064.html
   My bibliography  Save this article

Effects of supply chain structure and biomass prices on bioenergy feedstock supply

Author

Listed:
  • De Laporte, Aaron V.
  • Weersink, Alfons J.
  • McKenney, Daniel W.

Abstract

This study assesses the supply of switchgrass and miscanthus, in Ontario, Canada, under different biomass prices and supply chain structures, using an integrated economic, biophysical and GIS model, to assess bioenergy policy. In a local, domestic supply chain, 4 million tonnes of baled biomass production per year becomes attractive for transport to the Nanticoke Generation Station at $69/t. For a larger scale export supply chain to Rotterdam in the form of biomass pellets aggregated on the farm, 20 million tonnes of production becomes attractive at approximately $198/t. For an export supply chain with aggregation at the major ports of Ontario, 20 million tonnes of baled biomass product is attractive for shipping to ports, with pellets subsequently transported to Rotterdam, at around $137/t. Higher bale transportation costs mean that agricultural lands closer to ports, but with lower yields, are preferred compared to the on-farm aggregation scenario. Given government incentives to ease the transition between annual and perennial crops and an actual realized demand from the Nanticoke Generation Station for biomass, this supply chain scenario is plausible. However, export scenarios are not attractive due to infrastructure constraints from current pellet processing capacity, and volatile international energy and commodity markets.

Suggested Citation

  • De Laporte, Aaron V. & Weersink, Alfons J. & McKenney, Daniel W., 2016. "Effects of supply chain structure and biomass prices on bioenergy feedstock supply," Applied Energy, Elsevier, vol. 183(C), pages 1053-1064.
    • Handle: RePEc:eee:appene:v:183:y:2016:i:c:p:1053-1064
    DOI: 10.1016/j.apenergy.2016.09.049
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261916313514
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2016.09.049?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sahoo, K. & Hawkins, G.L. & Yao, X.A. & Samples, K. & Mani, S., 2016. "GIS-based biomass assessment and supply logistics system for a sustainable biorefinery: A case study with cotton stalks in the Southeastern US," Applied Energy, Elsevier, vol. 182(C), pages 260-273.
    2. Lam, Hon Loong & Klemeš, Jiří Jaromír & Kravanja, Zdravko, 2011. "Model-size reduction techniques for large-scale biomass production and supply networks," Energy, Elsevier, vol. 36(8), pages 4599-4608.
    3. Chai, Li & Saffron, Christopher M., 2016. "Comparing pelletization and torrefaction depots: Optimization of depot capacity and biomass moisture to determine the minimum production cost," Applied Energy, Elsevier, vol. 163(C), pages 387-395.
    4. Hendricks, Aaron M. & Wagner, John E. & Volk, Timothy A. & Newman, David H. & Brown, Tristan R., 2016. "A cost-effective evaluation of biomass district heating in rural communities," Applied Energy, Elsevier, vol. 162(C), pages 561-569.
    5. Paredes-Sánchez, José P. & García-Elcoro, Víctor E. & Rosillo-Calle, Frank & Xiberta-Bernat, Jorge, 2016. "Assessment of forest bioenergy potential in a coal-producing area in Asturias (Spain) and recommendations for setting up a Biomass Logistic Centre (BLC)," Applied Energy, Elsevier, vol. 171(C), pages 133-141.
    6. Parkhurst, Kristen M. & Saffron, Christopher M. & Miller, Raymond O., 2016. "An energy analysis comparing biomass torrefaction in depots to wind with natural gas combustion for electricity generation," Applied Energy, Elsevier, vol. 179(C), pages 171-181.
    7. Mazzola, Simone & Astolfi, Marco & Macchi, Ennio, 2016. "The potential role of solid biomass for rural electrification: A techno economic analysis for a hybrid microgrid in India," Applied Energy, Elsevier, vol. 169(C), pages 370-383.
    8. Zhang, Fengli & Johnson, Dana M. & Johnson, Mark A., 2012. "Development of a simulation model of biomass supply chain for biofuel production," Renewable Energy, Elsevier, vol. 44(C), pages 380-391.
    9. Chen, Xiaoguang, 2016. "Economic potential of biomass supply from crop residues in China," Applied Energy, Elsevier, vol. 166(C), pages 141-149.
    10. Balaman, Şebnem Yılmaz & Selim, Hasan, 2014. "A network design model for biomass to energy supply chains with anaerobic digestion systems," Applied Energy, Elsevier, vol. 130(C), pages 289-304.
    11. Vyn, Richard J. & Virani, Tasneem & Deen, Bill, 2012. "Examining the economic feasibility of miscanthus in Ontario: An application to the greenhouse industry," Energy Policy, Elsevier, vol. 50(C), pages 669-676.
    12. Agbor, Ezinwa & Oyedun, Adetoyese Olajire & Zhang, Xiaolei & Kumar, Amit, 2016. "Integrated techno-economic and environmental assessments of sixty scenarios for co-firing biomass with coal and natural gas," Applied Energy, Elsevier, vol. 169(C), pages 433-449.
    13. Golecha, Rajdeep & Gan, Jianbang, 2016. "Biomass transport cost from field to conversion facility when biomass yield density and road network vary with transport radius," Applied Energy, Elsevier, vol. 164(C), pages 321-331.
    14. Bai, Yun & Ouyang, Yanfeng & Pang, Jong-Shi, 2012. "Biofuel supply chain design under competitive agricultural land use and feedstock market equilibrium," Energy Economics, Elsevier, vol. 34(5), pages 1623-1633.
    15. Luo, Yi & Miller, Shelie, 2013. "A game theory analysis of market incentives for US switchgrass ethanol," Ecological Economics, Elsevier, vol. 93(C), pages 42-56.
    16. van Dyken, Silke & Bakken, Bjorn H. & Skjelbred, Hans I., 2010. "Linear mixed-integer models for biomass supply chains with transport, storage and processing," Energy, Elsevier, vol. 35(3), pages 1338-1350.
    17. Rentizelas, Athanasios A. & Tolis, Athanasios J. & Tatsiopoulos, Ilias P., 2009. "Logistics issues of biomass: The storage problem and the multi-biomass supply chain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(4), pages 887-894, May.
    18. Ebadian, Mahmood & Sowlati, Taraneh & Sokhansanj, Shahab & Townley-Smith, Lawrence & Stumborg, Mark, 2013. "Modeling and analysing storage systems in agricultural biomass supply chain for cellulosic ethanol production," Applied Energy, Elsevier, vol. 102(C), pages 840-849.
    19. Nasiri, Fuzhan & Zaccour, Georges, 2009. "An exploratory game-theoretic analysis of biomass electricity generation supply chain," Energy Policy, Elsevier, vol. 37(11), pages 4514-4522, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shu, Kesheng & Schneider, Uwe A. & Scheffran, Jürgen, 2017. "Optimizing the bioenergy industry infrastructure: Transportation networks and bioenergy plant locations," Applied Energy, Elsevier, vol. 192(C), pages 247-261.
    2. Moncada, J.A. & Junginger, M. & Lukszo, Z. & Faaij, A. & Weijnen, M., 2017. "Exploring path dependence, policy interactions, and actor behavior in the German biodiesel supply chain," Applied Energy, Elsevier, vol. 195(C), pages 370-381.
    3. Efthymios Rodias & Remigio Berruto & Dionysis Bochtis & Alessandro Sopegno & Patrizia Busato, 2019. "Green, Yellow, and Woody Biomass Supply-Chain Management: A Review," Energies, MDPI, vol. 12(15), pages 1-22, August.
    4. Reeko Watanabe & Tsunemi Watanabe, 2020. "The Development of Straw-Based Biomass Power Generation in Rural Area in Northeast China—An Institutional Analysis Grounded in a Risk Management Perspective," Sustainability, MDPI, vol. 12(5), pages 1, March.
    5. Oladejo, Jumoke M. & Adegbite, Stephen & Pang, Cheng Heng & Liu, Hao & Parvez, Ashak M. & Wu, Tao, 2017. "A novel index for the study of synergistic effects during the co-processing of coal and biomass," Applied Energy, Elsevier, vol. 188(C), pages 215-225.
    6. Davor Dujak, 2017. "Mapping Of Natural Gas Supply Chains: Literature Review," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 17, pages 293-309.
    7. De Laporte, Aaron V. & Ripplinger, David G., 2019. "The effects of site selection, opportunity costs and transportation costs on bioethanol production," Renewable Energy, Elsevier, vol. 131(C), pages 73-82.
    8. Brighenti, M. & Grigiante, M. & Antolini, D. & Di Maggio, R., 2017. "An innovative kinetic model dedicated to mild degradation (torrefaction) of biomasses," Applied Energy, Elsevier, vol. 206(C), pages 475-486.
    9. Liu, Tingting & Huffman, Ted & Kulshreshtha, Suren & McConkey, Brian & Du, Yuneng & Green, Melodie & Liu, Jiangui & Shang, Jiali & Geng, Xiaoyuan, 2017. "Bioenergy production on marginal land in Canada: Potential, economic feasibility, and greenhouse gas emissions impacts," Applied Energy, Elsevier, vol. 205(C), pages 477-485.
    10. Olli-Jussi Korpinen & Mika Aalto & Raghu KC & Timo Tokola & Tapio Ranta, 2023. "Utilisation of Spatial Data in Energy Biomass Supply Chain Research—A Review," Energies, MDPI, vol. 16(2), pages 1-23, January.
    11. Zaher Abusaq & Muhammad Salman Habib & Adeel Shehzad & Mohammad Kanan & Ramiz Assaf, 2022. "A Flexible Robust Possibilistic Programming Approach toward Wood Pellets Supply Chain Network Design," Mathematics, MDPI, vol. 10(19), pages 1-27, October.
    12. Lo, Shirleen Lee Yuen & How, Bing Shen & Leong, Wei Dong & Teng, Sin Yong & Rhamdhani, Muhammad Akbar & Sunarso, Jaka, 2021. "Techno-economic analysis for biomass supply chain: A state-of-the-art review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    13. Oladejo, Jumoke & Adegbite, Stephen & Gao, Xiang & Liu, Hao & Wu, Tao, 2018. "Catalytic and non-catalytic synergistic effects and their individual contributions to improved combustion performance of coal/biomass blends," Applied Energy, Elsevier, vol. 211(C), pages 334-345.
    14. Yazan, Devrim Murat & Fraccascia, Luca & Mes, Martijn & Zijm, Henk, 2018. "Cooperation in manure-based biogas production networks: An agent-based modeling approach," Applied Energy, Elsevier, vol. 212(C), pages 820-833.
    15. Schipfer, Fabian & Kranzl, Lukas, 2019. "Techno-economic evaluation of biomass-to-end-use chains based on densified bioenergy carriers (dBECs)," Applied Energy, Elsevier, vol. 239(C), pages 715-724.
    16. Mohd F. M. A. Zamri & Jassinnee Milano & Abd H. Shamsuddin & Mohd E. M. Roslan & Siti F. Salleh & Adlansyah A. Rahman & Raihana Bahru & Islam M. R. Fattah & T. M. Indra Mahlia, 2022. "An overview of palm oil biomass for power generation sector decarbonization in Malaysia: Progress, challenges, and prospects," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 11(4), July.
    17. Wu, Wentao & Beretta, Claudio & Cronje, Paul & Hellweg, Stefanie & Defraeye, Thijs, 2019. "Environmental trade-offs in fresh-fruit cold chains by combining virtual cold chains with life cycle assessment," Applied Energy, Elsevier, vol. 254(C).
    18. Moncada, J.A. & Lukszo, Z. & Junginger, M. & Faaij, A. & Weijnen, M., 2017. "A conceptual framework for the analysis of the effect of institutions on biofuel supply chains," Applied Energy, Elsevier, vol. 185(P1), pages 895-915.
    19. Maria F. Aranguren & Krystel K. Castillo-Villar & Mario Aboytes-Ojeda & Marcio H. Giacomoni, 2018. "Simulation-Optimization Approach for the Logistics Network Design of Biomass Co-Firing with Coal at Power Plants," Sustainability, MDPI, vol. 10(11), pages 1-18, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Zhanwu & Wang, Zhenfeng & Tahir, Nadeem & Wang, Heng & Li, Jin & Xu, Guangyin, 2020. "Study of synergetic development in straw power supply chain: Straw price and government subsidy as incentive," Energy Policy, Elsevier, vol. 146(C).
    2. Ba, Birome Holo & Prins, Christian & Prodhon, Caroline, 2016. "Models for optimization and performance evaluation of biomass supply chains: An Operations Research perspective," Renewable Energy, Elsevier, vol. 87(P2), pages 977-989.
    3. Espinoza Pérez, Andrea Teresa & Camargo, Mauricio & Narváez Rincón, Paulo César & Alfaro Marchant, Miguel, 2017. "Key challenges and requirements for sustainable and industrialized biorefinery supply chain design and management: A bibliographic analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 350-359.
    4. Zhang, Xingping & Luo, Kaiyan & Tan, Qinliang, 2016. "A feedstock supply model integrating the official organization for China's biomass generation plants," Energy Policy, Elsevier, vol. 97(C), pages 276-290.
    5. Zhang, Fengli & Johnson, Dana M. & Wang, Jinjiang, 2016. "Integrating multimodal transport into forest-delivered biofuel supply chain design," Renewable Energy, Elsevier, vol. 93(C), pages 58-67.
    6. Malladi, Krishna Teja & Sowlati, Taraneh, 2018. "Biomass logistics: A review of important features, optimization modeling and the new trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 587-599.
    7. Wang, Yu & Ebadian, Mahmood & Sokhansanj, Shahab & Webb, Erin & Lau, Anthony, 2017. "Impact of the biorefinery size on the logistics of corn stover supply – A scenario analysis," Applied Energy, Elsevier, vol. 198(C), pages 360-376.
    8. He-Lambert, Lixia & English, Burton C. & Lambert, Dayton M. & Shylo, Oleg & Larson, James A. & Yu, T. Edward & Wilson, Bradly, 2018. "Determining a geographic high resolution supply chain network for a large scale biofuel industry," Applied Energy, Elsevier, vol. 218(C), pages 266-281.
    9. Akhtari, Shaghaygh & Sowlati, Taraneh & Griess, Verena C., 2018. "Integrated strategic and tactical optimization of forest-based biomass supply chains to consider medium-term supply and demand variations," Applied Energy, Elsevier, vol. 213(C), pages 626-638.
    10. Cobuloglu, Halil I. & Büyüktahtakın, İ. Esra, 2015. "Food vs. biofuel: An optimization approach to the spatio-temporal analysis of land-use competition and environmental impacts," Applied Energy, Elsevier, vol. 140(C), pages 418-434.
    11. Mafakheri, Fereshteh & Nasiri, Fuzhan, 2014. "Modeling of biomass-to-energy supply chain operations: Applications, challenges and research directions," Energy Policy, Elsevier, vol. 67(C), pages 116-126.
    12. Lozano-García, Diego Fabián & Santibañez-Aguilar, José Ezequiel & Lozano, Francisco J. & Flores-Tlacuahuac, Antonio, 2020. "GIS-based modeling of residual biomass availability for energy and production in Mexico," Renewable and Sustainable Energy Reviews, Elsevier, vol. 120(C).
    13. Rendon-Sagardi, Miguel A. & Sanchez-Ramirez, Cuauhtemoc & Cortes-Robles, Guillermo & Alor-Hernandez, Giner & Cedillo-Campos, Miguel G., 2014. "Dynamic analysis of feasibility in ethanol supply chain for biofuel production in Mexico," Applied Energy, Elsevier, vol. 123(C), pages 358-367.
    14. Palander, Teijo & Haavikko, Hanna & Kärhä, Kalle, 2018. "Towards sustainable wood procurement in forest industry – The energy efficiency of larger and heavier vehicles in Finland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 100-118.
    15. Azadeh, Ali & Vafa Arani, Hamed, 2016. "Biodiesel supply chain optimization via a hybrid system dynamics-mathematical programming approach," Renewable Energy, Elsevier, vol. 93(C), pages 383-403.
    16. Babazadeh, Reza & Razmi, Jafar & Pishvaee, Mir Saman & Rabbani, Masoud, 2017. "A sustainable second-generation biodiesel supply chain network design problem under risk," Omega, Elsevier, vol. 66(PB), pages 258-277.
    17. Babazadeh, Reza, 2017. "Optimal design and planning of biodiesel supply chain considering non-edible feedstock," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 1089-1100.
    18. Luis Puigjaner & Mar Pérez-Fortes & José M. Laínez-Aguirre, 2015. "Towards a Carbon-Neutral Energy Sector: Opportunities and Challenges of Coordinated Bioenergy Supply Chains-A PSE Approach," Energies, MDPI, vol. 8(6), pages 1-48, June.
    19. Weiwei Wang, 2023. "Integrated Assessment of Economic Supply and Environmental Effects of Biomass Co-Firing in Coal Power Plants: A Case Study of Jiangsu, China," Energies, MDPI, vol. 16(6), pages 1-22, March.
    20. Zahraee, Seyed Mojib & Rahimpour Golroudbary, Saeed & Shiwakoti, Nirajan & Stasinopoulos, Peter, 2021. "Particle-Gaseous pollutant emissions and cost of global biomass supply chain via maritime transportation: Full-scale synergy model," Applied Energy, Elsevier, vol. 303(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:183:y:2016:i:c:p:1053-1064. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.