Cost Analysis and Life Cycle Environmental Impacts of Three Value-Added Novel Bio-products

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1 Faculty of Agriculture Cost Analysis and Life Cycle Environmental Impacts of Three Value-Added Novel Bio-products Emmanuel K. Yiridoe, Qiaojie Chen, Rodney Fry, Derek Lynch, Gordon Price Dept. of Business and Social Sciences, Faculty of Agriculture, Dalhousie University (Agricultural Campus) Truro, NS

2 Introduction: background Yiridoe et al: CCC Conference

3 Depleting peat bugs and reserves Peat-Moss Yiridoe et al: CCC Conference

4 Depleting Peat Reserves Growing concerns: Depleting peat reserves in Atlantic Canada Environmental and ecological impacts associated with harvesting and producing peat Goal of governments: increasing proportions of peat alternatives, with total replacement over long-term Yiridoe et al: CCC Conference

5 Research Questions: for who Economic agents or market participants: provide useful information to potential investors and policy advisors evaluating the economic viability and potential environmental impacts for similar products and situations Yiridoe et al: CCC Conference

6 Research Questions What price to sell novel bioproducts What are the environmental impacts associated with diverting biomass from landfills, to be used to produce alternative products to peat? What are the life cycle environmental implications associated with processing, producing and marketing the three novel bio-products? Yiridoe et al: CCC Conference

7 Characteristics of novel bioproducts studied Bioproduct type Blend/ constituents Texture/size Dehydrated composted forestry bark (DFCB) a - 100% composted forestry bark (i.e. coarse portion dried-screened black earth compost) Coarse: ( cm) Dehydrated topdressing (DTD) Organic bio-fertilizer (OBF) - 70% composted forestry bark (fine portion driedscreened black earth compost) - 30% processed manure-based organic bio-fertilizer (15% poultry manure, and 15% potato residue feedstock) - 95% processed manure-based organic bio-fertilizer (i.e., 47.5% poultry manure, and 47.5% potato residue feedstock) Fine: (< 0.3 cm) Medium: ( cm) - 5% calcium lignin-sulphonate organic binder Source: Enviren Organics Inc. (unpublished data) Notes: a Dried composted forestry bark is intended as an intermediate product for use in a separate production process by other bioproduct companies, to produce a peat-based value-added horticulture amendment consisting of blend of 60% peat moss and 40% DCFB. Yiridoe et al: CCC Conference

8 Product pricing decision How much does it cost? Fixed costs Variable cost

9 Research Methods: LC Impacts Impact Categories and Indicators for Life Cycle Assessment Impact item Impact category Type/units GHGs (from fuel production and combustion, electricity use ) Global warming Kg of CO 2 equivalents SO 2 emissions (from electricity use, motor vehicle exhaust, burning sawdust) NO x emissions from electricity use, and motor vehicle exhaust CO emissions from motor vehicle exhaust and burning sawdust Human and eco-toxicity Human and eco-toxicity Human and eco-toxicity SO 2 (g) NO x (g) CO (g) Energy consumption Energy depletion MJ Land use Resource depletion Ha Nutrient leached (from stock piling of biomass feedstock, composting, and application of end-products) Source: Government of Australia (2001) Eutrophication Total N and P (ppm) Yiridoe et al: CCC Conference

10 Research Methods: product processing Compost Fresh/Aged Sawmill Barks Hopper STAR-Screener Dehydrated Value- Other Organics, Clay-fibre Baghouse Added Horticulture Products 1) Topdressings 2) Peat Additives Air-knife Biomass- Fired Burner Heat Exchanger Screener Organic Biofertilizer /Lime Granular Poultry, lobster, Biomass fuel return Rotary Drum Dryer Pellet Mill Spheres < 1/4 Diameter Potato sludge Cooler Potato biosolid Mixing Blending Fine dust return Crumbler/screen Conditioning Unit Organics Poultry manures Bio-Fertilizer Pellets Pin Mixer/Pug Mill Agglomeration Figure 2 Schematic illustration of novel bioproducts processing Source: Envirem Organics Inc. (unpublished). Yiridoe et al: CCC Conference

11 System boundaries and cut-off criteria Processing and production inputs Inputs (a): -Energy -Labour -land -Truck Inputs (b): -Energy -Land -Labour - Equipment Inputs (c): -Sawdust -Energy -Labour -Equipment -Land Inputs (d): -Equipment -Labour -Energy -Land Inputs (e): -Equipment -labour -energy -land -storage bags Inputs (f): -Equipment -Labour -Energy -Land Processing Feedstock and raw materials acqisition: (1) Forestry bark (2) Poultry manure (3) Potato residue (4) Calcium lignin-sulphonat e organic binder Forestry bark Composting Composted forestry bark Poultry manure, potato residue, calcium lignin-sulphonate organic binder Dehydration process Screening, additives and mixing Bagging and packaging Transportation to, and application at sites Bio-prod ucts and other outputs Outputs (a): -Greenhouse gas emission (GHGs) from transportation - Nutrient leachate from stockpiled material - Motor vehicle exhaust emissions Outputs (b): -Greenhouse gas emission from turning and composting activities -Nutrient leachate from composting -Motor vehicle exhaust emissions Outputs (c): -Residues from burning sawdust (i.e. smoke and ash) -Heat -Steam -GHGs and atmospheric emissions from electricity use Outputs (d): -GHGs and atmospheric emissions from electricity use Outputs (e): -GHGs and atmospheric emissions from electricity use Outputs (f): -Greenhouse gas emission from transportation and application -- Motor vehicle exhaust emissions -leachate from application of end-products Figure 4 Input-output Inventory and Bioproducts and Other Outputs Yiridoe et al: CCC Conference

12 Product processing plant Sensitivity Analysis Truck size: 15 to 4.5 tonnes Transportation (poultry manure): 250 to 300 km Operating cost efficiency: $225 - $200 /hr Yiridoe et al: CCC Conference

13 Results: Cost Analysis Total Cost (excluding Management and Land) of Processing and Producing Bioproducts ($ tonne -1 ) Dried composted forestry bark Dehydrated topdressing Organic biofertilizer $ tonne (a) Variable costs Composted forestry bark Poultry manure Potato residue Calcium lignin-sulphonate organic binder Repairs and maintenance Labor Operating cost Interest on operating expenses Total variable cost (b) Fixed costs Machinery and equipment, and buildings (c) Total cost Yiridoe et al: CCC Conference

14 Results: biomass diversion Landfill gas emissions reduction from landfill waste diversion associated with a tonne of dehydrated bioproduct type Dried composted forestry bark Dehydrated topdressing Organic bio-fertilizer ---- Raw (wet) biomass Forestry bark Forestry bark Poultry manure Potato residue Total Poultry manure Potato residue Total Consumption (tonne) Total CO 2 -eq. (g) 1-1,670-1, Negative numbers indicate global warming potential mitigated or avoided by the landfill waste diversion Yiridoe et al: CCC Conference

15 Results: Env Impacts Total emissions and energy use per tonne of dehydrated bioproducts produced Dried composted Dehydrated topdressing Organic bio-fertilizer forestry bark a) Biomass feedstock acquisition and delivery Total CO 2 eq. (g) (18%) a (40%) 10, (37%) SO 2 (g) NO x (g) CO (g) Energy (MJ) b) Product processing and packaging Total CO 2 eq. (g) 2, (82%) 5, (60%) 18, (63%) SO 2 (g) NO x (g) CO (g) Energy (MJ) c) Total for input acquisition and delivery, and product processing and packaging CO 2 eq. (g) 3, , , SO 2 (g) NO x (g) CO (g) Energy (MJ) a Figures in parentheses indicate percent of total in part (c). Yiridoe et al: CCC Conference

16 Total emissions and energy use SO2 (g) NOx (g) CO (g) Energy (MJ) Environmental impact indicators and Energy Dried composted forestry bark Dehydrated topdressing Organic bio-fertilizer Figure : Energy and environmental impact indicators, aggregated for input acquisition and delivery, and product processing and packaging Yiridoe et al: CCC Conference

17 GHG emissions: CO 2 -equivalent (g) 30,000 25,000 20,000 15,000 10,000 5,000 0 Dried composted forestry bark Dehydrated topdressing Organic bio-fertilizer Bioproduct type Figure: Total GHG emissions for input acquisition and delivery, and product processing and packaging Yiridoe et al: CCC Conference

18 Summary and Conclusions Cost Analysis: Total cost per tonne of final bioproducts was highest for OBF, and lowest for DCFB Operating costs of producing three bioproducts: highest among variable and fixed cost components Accounted for 30% of TVC An 11% improvement in operating cost efficiency from $225 to $200 per hour resulted in less than proportionate reduction in VC and TCs Yiridoe et al: CCC Conference

19 Summary and Conclusions Global warming (CO 2 -equivalents) per tonne of dried final product produced was highest for OBF and lowest for DCFB Human and eco-toxicity indicators across all three bioproducts: Highest for NOx, followed by SO 2 and lowest for CO emissions Yiridoe et al: CCC Conference

20 Summary and Conclusions Environmental and ecological benefits of producing the three bioproducts takes on increased dimension in light of concerns with: depleting peat reserves Other negative ecological impacts (e.g., wildlife habitats, water quality impacts, heritage artifacts, etc) Yiridoe et al: CCC Conference

21 Faculty of Agriculture dal.ca