Optimization of Multiple Biomass Feedstock Supply Chains in the Northeastern United States

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1 Optimization of Multiple Biomass Feedstock Supply Chains in the Northeastern United States Yuxi Wang 1, Jingxin Wang 1, Damon Hartley 2, and Jamie Schuler 1, Mark Eisenbies 3, Timothy A. Volk 3 West Virginia University, Morgantown, WV, USA Idaho National Laboratory, Idaho Falls, ID, USA State University of New York (SUNY)-ESF, Syracuse, NY, USA This research is supported by USDA NIFA AFRI Grant No , and USDOE Grant No. EE

2 Integrated TEA and LCA Analysis Framework Supply Chain Logistics Optimization Results and Case Scenarios Summary Presentation Outline 2

3 Integration of LCA and TEA Supply Chain Configuration & Optimization Feedstock supply curves Spatial and temporal effects of feedstock supply Modeling and optimization of supply chains Siting optimization of facilities Case scenarios and analyses Techno-Economic Analysis Process flow diagram Process modeling Cost of specified process/equipment components Operational and maintenance costs Uncertainty analysis Life Cycle Assessment Model Development Process and system boundary LCA modeling Life cycle inventory Impact assessment Sensitivity and uncertainty analysis Integration of TEA and LCA Inputs/outputs of model components Integrated analysis tool Model integration Costs of specified 3

4 Processes of Biomass Supply Chain

5 Logistic Model: TEA Modeling Min ψ = α + β + γ + δ + θ T J I M T J I M = x mijt pc m + x mijt hc m + T J I M x mijt tc m d ij + T J M xs mjt prec m + T J M xs mjt sc m (1) Biomass feedstock establishment (α), (2) harvest (β), (3) storage (γ), (4) transport (δ), and (5) preprocess (θ ) were considered as cost components in the logistic model. The objective is to minimize the total delivered cost (ψ). CAPEX & OPEX: Thermo-chemical Wright et al. 2010; Power plant The International Renewable Energy Agency (IRENA) 2012; Pellet mill Sultana et al (Liu, W., J. Wang, T. Richard, D. Hartley, S. Spatari, and T. Volk Economic and life cycle assessments of biomass utilization for bioenergy products. Biofuels, Bioproducts and Biorefining.)

6 LCA Modeling LCA Goal and Scope Cradle to grave Functional unit: 1,000 MJ. LCA Life cycle inventory Front-ground dataset: - Feedstock plantation and harvest Field measurement; - Transportation Model simulation and US EI; - Storage and Preprocessing Lab measurement and research papers; - Energy conversion, distribution, and end-use Research papers; Back-ground dataset: - Ecoinvent 3 - Other LCA Impact assessment Model development - SimaPro 8. Impacts - GHG emissions; - Carcinogenics; - Blue water consumption; - Respiratory effects; - Fossil energy usage; - Human toxicity; - Ozone depletion 6

7 Potential Biorefinery Siting ID Facility Locations Min transpor tation Distance (km) Average Transpor tation Distance (km) Max transpor tation Distance (km) Average Total delivery cost $/dry Mg 1 Chemung Erie Hamilton Clinton Jefferson Licking Clark Pike Washington Summit Cambria Optimization results ($/dry Mg) Total delivery cost Establishment cost Harvest cost Transportation cost Storage cost 4.47 Preprocessing cost Venango Bucks Schuylkill Cumberland Lackawanna Raleigh Taylor Kennebec Rutland

8 Case Scenarios and Uncertainty Analysis Parameter Base Case LCA Sensitivity TEA Sensitivity Notes Willow Yield 12.4 tons/ha odt/ha odt/ha Yield increases from minimum Switchgrass Yield 9.6 tons/ha odt/ha odt/ha to maximum yield by 10% of their difference. Miscanthus - Yield 17.8 tons/ha odt/ha odt/ha Transportation 50 miles miles miles The distance increases by 10 miles each time. Transportation - Pellet 30 miles miles miles Amount of feedstock demand Biofuel - Conversion rate tons feedstock/bbl odt feedstock/bbl odt feedstock/bbl increases from minimum to maximum yield by 10% of their difference. Biopower Conversion rate 0.94 tons feedstock/mwh odt feedstock/ MWh odt feedstock/ MWh No Waste was assumed to produce pellet. Pellet Conversion Rate 1.18 tons feedstock/ton tons feedstock/ton tons feedstock/ton Bio-fuel Capacity 1,000 bbl/day - - and + The change of capacity will be Bio-power Capacity 20 MW - lower and higher than the base case. Pellet Capacity 50,000 dry metric - tons/year IRR 15% - 10% and (Courtesy of Dr. Peter Woodbury of Cornell, Dr. Stacy Bonos of Rutgers, and Dr. Tim Volk of SUNY ESF for the biomass yield data in the Northeast.)

9 Biomass Delivery Costs 100% 80% 60% 40% 0% 25.59% 26.25% 27.94% 22.66% 23.39% 11.11% 7.15% 5.29% 4.51% 20.27% 39.83% 7.57% 10.76% 10.05% 4.21% 5.99% 5.60% 18.90% 40.63% 30.73% 41.82% 37.52% 24.92% 29.12% 18.18% Forest residues Willow Switchgrass Miscanthus Total Establishment harvest Storage Preprocessing Transportation 9

10 Biomass Delivery Costs Regional biomass delivery costs by feedstock: forest residues, hybrid willow, switchgrass, and miscanthus. Spatial distribution of the regional biomass delivery costs Feedstock Cost components ($/dry Mg) Total delivery cost $/dry Mg Forest residues Willow Switchgrass Miscanthus Establishment Harvest Storage Preprocessing Transportation Mean Min Max

11 Sensitivity Analysis Sensitivities of the delivered costs were examined according to feedstock availability, feedstock price, moisture content, procurement radius, facility capacity, and fossil fuel price. Fossil fuel Price Facility capacity - - Procurement radius -80% 100% Moisture content -25% 25% Feedstock Price:Miscanthus Feedstock Price:Switchgrass Feedstock Price: Willow Feedstock Price: Forest Residues Feedstock availability:miscanthus Feedstock availability:switchgrass Feedstock availability: Willow Feedstock availability: Forest Residues Percentage change of the delivery cost of the base case scenario 11

12 Cost: $/MWh Cost: $/bbl Cost: $/ton 45 TEA Results Plantation Harvest Transport Storage (a) Capital Operation 0 Plantation Harvest Transport Storage Capital Operation (c) Willow Switchgrass Miscanthus Plantation Harvest Transport Storage Capital Operation (b) Cost components of the biomass supply chain by energy crops and bioenergy products: (a) biofuel, (b) biopower, and (c) pellet. $72.20 to $81.80/bbl for biofuel, from $72.75 to $85.74/MWh for biopower $ to $149.14/ton for pellet fuel (Liu, W., J. Wang, T. Richard, D. Hartley, S. Spatari, and T. Volk Economic and life cycle assessments of biomass utilization for bioenergy products. Biofuels, Bioproducts and Biorefining.) 12

13 LCA Results for Willow: Biofuel GHG emissions (32.45 kg CO 2 eq); FEC ( MJ); Human toxicity (6.99 kg 1,4- DB eq); Ozone depletion (4.78E-6 kg CFC-11 eq); Bio-power BWC (3.75 m 3 ); Respiratory effects (0.03 kg PM2.5 eq); LCA Results Pellet fuel GHG emissions (4.83 kg CO 2 eq) (Liu, W., J. Wang, T. Richard, D. Hartley, S. Spatari, and T. Volk Economic and life cycle assessments of biomass utilization for bioenergy products. Biofuels, Bioproducts and Biorefining.) 13

14 Successful development of a bioproduct industry will be dependent on efficient harvest, transport and processing of biomass feedstocks. The delivered cost of biomass varies according to a variety of factors in the supply chains. Integrated TEA and LCA could be used for future biomass supply chain assessments. Uncertainty analysis can help increase the realism of bioenergy product pathways. Future analyses... Summary 14

15 For more information, please contact: Dr. Jingxin Wang Professor and Associate Director for Research Director of Biomaterials and Bioenergy Research Center Division of Forestry and Natural Resources West Virginia University (304)