TITLE:
The Logistics of Production and Supply of Ag Pellets for Industrial Applications in Canada
AUTHORS:
Shahabaddine Sokhansanj, Mahmood Ebadian, Hamid Rezaei, Fahimeh Yazdanpanah
KEYWORDS:
Canada, Pellets, Ag Pellets, Supply Chain, Logistics, Cost, GHG Emissions, Infrastructure
JOURNAL NAME:
Journal of Sustainable Bioenergy Systems,
Vol.13 No.1,
March
31,
2023
ABSTRACT: In this work we analyze the supply of biomass from field to an in-land or
port destination. The biomass is pelletized to increase its bulk density to
extend its storage period and for ease of its transport. The pellet may be used
for conversion to chemicals and animal bedding or for straight combustion. We
analyzed supply chain in Saskatchewan where there are plenty of crop residues
but widely dispersed and harvest seasons are short. We envisioned that the
farmer collects bales from field and transports the
bales to farmstead during the harvest season. The bales are then processed into
pellets using small scale pellet equipment. A custom operator with expertise in
pelletization may engage in handling and densifying the biomass. The business
case for the mobile mill will be similar to the well established custom grain
and forage harvesting operations. The pellets are stored in hopper bottom grain
bins at the farmstead. From this point, the handling of pellets would be
similar to the handling and marketing of grain. The farmer trucks a specified
volume of pellets from farmstead to the nearest elevator where the pellets are
transferred to larger bins or silos. Pellets are extracted from silos and
loaded onto the rail cars. The Canadian freight rail companies (mainly CN)
currently transport over 3 million dry tonne (dt) of wood pellets in rail cars.
The pellets are hauled to marine ports on the West Coast or East Coast for
export. The cost of delivering ag pellets to biorefinery or to the shipping
port is $86.09/dt. This cost does not include the equivalent value of removing
biomass from the farm (e.g. fertilizer replacement) and return on investment.
The GHG emissions to produce and transport ag pellets add up to 185.9 kg of CO2 per dt of biomass. The cost of producing pellets without drying feedstock is
$35.05/dt and the corresponding GHG for palletization amounts $146.30/dt.