Multi-Year Analysis Plan Page 61
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80Supply System Logistics (WBS 1.1.1.1 and 1.3.2)
Project Overview: A dynamic simulation feedstock supply model has been developed to
represent the various stages of biomass collection, processing, storage, and distribution activities
associated with supplying biomass to a biorefinery. The model is used to investigate the effects
that climate, geographical, and biological factors have on the cost of delivering biomass. It will
minimize the cost of delivered biomass by selecting an optimum mix of biomass sources,
machinery, handling processes, capacities, storage, transportation systems and preprocessing
options. Additional types of information to be provided will be energy input-output relations,
labor demands, effects of feedstock quality requirements on costs, energy and labor, air and water
emissions (for LCA), soil compaction from harvest equipment, waiting times and bottlenecks and
implications of various storage options. The tool can also be modified to also simulate collection
of other agricultural residues, forest products and a mixture of biomass resources.
Project Participants: USDA, INEEL, ORNL, NREL
Objective: Evaluate and define equipment and infrastructure options that will reduce the cost of
delivered biomass from the present baseline of baling system of $53/dry ton to the cost goal of
$35/dry ton. The task uses an integrated systems approach to establish minimum cost pathways.
The objective is realized by developing and applying a supply model that simulates the flow of
biomass through collection, transport, storage, and preprocessing steps. The model will identify
the incremental improvements at every step of the supply chain (optimum designs) and critical
improvements for the integration of the entire feedstock supply infrastructure (logistics). Other
industries have developed some very sophisticated systems analysis techniques to make their
industries competitive. The biomass model is equally robust to take advantage of all of the
innovative biomass supply options and logistical arrangements to determine least cost
opportunities to produce and deliver biomass.
Stated Benefits: Facilitates the development of integrated biorefineries with optimized feedstock
supply logistics to assure competitive delivered costs and year-round reliability in supplies of
biomass feedstocks. Development of a biomass feedstock supply logistics model will help
biorefinery business plan developers to assure the reliability of supply and cost competitiveness
of feedstock planned and help infrastructure engineers and researchers develop equipment and
systems that will assure timely collection, storage, and transporting of biomass to the biorefinery.
Barriers Addressed: This task addresses two major technical barriers as outlined in Roadmap
for Agricultural Biomass Feedstock Supply in the United State: (1) uncertainty and risks
associated with availability of adequate biomass supply to a biorefinery; (2) uncertainty in
success and the high costs associated with the development of new equipment and supply
infrastructure like single pass harvest and bulk storage. By explicitly accounting for actual yield
(yield minus allowance for conservation), climatic impacts on the supply system and accurate
cost information, the task seeks to reduce the uncertainty of feedstock supplies. Fear of unreliable
feedstock cost and supply is a major barrier to procuring capital for start-up biorefineries. Our
biomass model shows clearly how we can eliminate potential bottlenecks and how we can take
advantage of multiple feedstocks to minimize storage and thus reduce costs.
Milestones
Completion Date
Develop feedstock assembly model – define optimal (least cost) baseline
8/2004
collection systems for straw and stover
57
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