Analysis of Environmental and Economic Aspects of International Pellet Supply Chains

Published 2014

Citation: Ehrig, R. Analysis of Environmental and Economic Aspects of International Pellet Supply Chains, Ph.D. Thesis, Vienna University of Technology, Vienna, Austria, 2014.

Abstract

Biomass plays a key role to achieve the EU's 20-20-20 energy and climate targets. Because of rising European demand and limited domestic resources, the EU relies on worldwide imports. Given this framework, the present thesis explores the inuences on wood pellet supply chains considering dierent environmental policies, price risks and the eect of torrefaction pretreatment. The examinations refer to three real case studies for pellet trade from Australia, Canada, and Russia to Europe. In the rst investigation, the eciency of co-ring imported wood pellets in terms of CO2 savings and related subsidy schemes is analysed. Scenarios show that co-ring biomass is ecient to contribute to the EU energy targets. Though, policy makers could use these instruments more eective when directing sourcing decision towards options with even less environmental impacts. The second analysis explores the inuence of statistically derived price risks on total supply chain economics. It is shown that price risks can eect strong uctuations in the short term, which seriously aect the protability of individual trade routes. Securing the supply chain is mainly based on individual producer-buyer agreements, personal branch experiences and fast reactions on the subsidy system. Systematic evaluation of supply chains could contribute to a more reliable market and thus foster investment decisions. In the last investigation, the economic and environmental performance of potential torrefaction-based supply chains is assessed. As a result, torrefaction-based supply
chains turn out to be a certain alternative to conventional ones. Though, still huge research eorts and industrial demonstration are required to make torreed biomass a real alternative on the market.