IDENTIFYING ENVIRONMENTALLY PREFERABLE USES FOR BIOMASS

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IDENTIFYING ENVIRONMENTALLY PREFERABLE USES FOR BIOMASS ( identifying-environmentally-preferable-uses-for-biomass )

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BC Bugwood Envirochem Services Inc. analysis, and especially research to reduce harvesting cost, would be helpful to tackle the bugwood resource. It is the aim of this study to remain, as much as possible, within the same parameters as the BIOCAP study [BIOCAP 2005] in order to allow comparisons. As harvesting cost has major impacts on plant economics, the BIOCAP cost of $68.55 per bdt is retained for the following chapters. Sensitivity analysis in Chapter 5 models the higher harvesting cost of $40 per bdt. There are some options to influence feedstock harvesting costs, some of which are discussed in Chapter 6. More analysis on this aspect would be beneficial to establish true costs and find alternatives to reduce feedstock costs for energy uses of bugwood. 3.2 Transport Costs The delivered cost of wood is about $50 per m3, at a distance of 110 km one-way [COFI 2005a]. With a cost of $9.00 per m3 for transportation at this distance, transportation is only 25% of the delivered cost, with the actual harvesting operation accounting for nearly three-quarters of delivered cost (see Figure 3.2.1). This means that reducing transport costs may only have a minor effect on overall process economics, depending on the haul distance. Overall, the cost of delivered wood is very high in comparison to other alternatives, such as coal.3 Note that transport cost may be somewhat higher for rotten bugwood as the maximum volume for a logging truck may be reached earlier than with green wood (i.e., the tonnage transported will be smaller). Each transfer of logs from truck to train etc. will entail further costs of $4 per m3 [ibid.]. Table 3.2.1 Transportation Cost for Selected Options One-way trip distance Cost Logging truck Transfer truck to train Transfer train to ship Pellet truck (B-Train) 40-ft container (truck) Tanker truck Transfer train/ship Rail transport (bulk) Rail transport (logs) Rail transport (liquids) Rail transport (40 ft container) Ship transport $4/m3 (loading/unloading) + $0.13/t-km $3.80/m3 or $10.00/bdt [FSBC 2004] $5.43/m3 or $14.30/t [DRC 2005a] $0.093/t-km, incl. loading/unloading [LOMAK 2006] $0.044/t-km Ethanol/Methanol: $0.04/t-km [BT 2006] Bio-liquid: 0.0635 ¢/t-km + $10/t (loading/unloading) [GE 2006] Transfer and storage of oil at harbour: $30/tonne [VW 2005] $0.022 – 0.028/t-km [CNR 2005] $0.027/t-km [CNR 2005] Methanol/ethanol: $0.045/t-km Bio- liquid: $0.048/t-km [CNR 2005; GATX 2006] $0.032/t-km Pellets: $54/t [GSC 2005] (to EU harbour only) 40-ft container: $60/t (Shanghai); $179/t (Hamburg) Table 3.2.2 details the costs of various transport options, based on quotes received from CN Rail and freight companies. Train transport can apply to either logs, pellets, briquettes or liquids, such as bio-liquid. CN Rail was not able to identify loading points throughout the Interior, but indicated that there are several privately-owned and CN Rail-owned facilities that could be used to load rail cars. The nearest possible location would have to be determined based on the location of the processing plant. The costs of rail transport assume a load of 170 m3 per rail car (closed wood chip gondolas) for pellets. Ship transport out of Vancouver to Europe will cost 3 $50 per m3 corresponds to $132 per bdt, compared to only $33 per tonne for coal [BCH 2004] Page 14

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