karttunen, k. 2012. waterways – a future backbone of feedstock supply?

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Page 1: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?
Page 2: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Waterways a future backbone ofWaterways – a future backbone of feedstock supply?

Research Seminar on Precision supply of Forest Biomass for Energy3 9 2012 Joensuu3.9.2012 Joensuu

Kalle Karttunen, Project Manager

Lappeenranta University of Technology,LUT Savo Sustainable Technologies,

Bioenergy TechnologyBioenergy Technology,Mikkeli

Page 3: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

ContentContent

› Current and future situation of forest fuel supply markets in Finland

› Inland waterway transport supply chain of forest biomass

› Material and Methods

› Results and Discussion

› Conclusion

Page 4: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Current and future situation of forest chips supply market

− In 2011 forest chips use was 7.5 million m3 (~ 14 TWh), which was almost 4% of total energy use in Finland

All of this was transported by trucks either as chips or as− All of this was transported by trucks either as chips or as uncomminuted material

− Only some trials with trains and barges/vessels have been used

− The target is to almost double its use to 13 5 million m3− The target is to almost double its use to 13.5 million m3

(25 TWh) by 2020− In practice, there is imbalance between locations of

d d d l f f t hidemand and supply of forest chips

The transport distances will be increasedThe transport distances will be increased The new logistical innovations and also other transport

modes will be needed to fulfill the target

Page 5: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Current and future situation of forest chips supply market

Ylitalo 2012:

Small scale use. 9%Other, -

%

Ylitalo 2012:

Rotten wood. 7%Stumps. 13%Logging residues, 30%Energy wood, 41%se

, TW

h

Energy wood, 41%

chip

s us

Fore

st c

-Small-sized energy wood is the biggest source of forest chips now!

Page 6: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Current and future situation of forest chips supply market

% Share of volumes 2011:

y ch

ains

, Share of volumes 2011:

Stationary chipping,18%Terminal chipping 21%

of s

uppl

y Terminal chipping, 21%Roadside chipping, 61%

Shar

e

Roadside chipping has been the biggest production-Roadside chipping has been the biggest productionmethod of forest chips!-Share of terminal chipping is expeced to grow

Page 7: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Inland waterway transport supply chain of forest biomasssupply chain of forest biomass• Background:

• Finnish waterways can be used for inland and coastal transport• Finnish waterways can be used for inland and coastal transport

• Waterway transportation has been used for round wood logistics

• Cost competitiveness of waterway transport is based on large-

sizes and long-distances with lower costs, 0.046 €/m3km (truck:

0.064 €/m3km)

• Barge and vessel logistics could also be used for transport of• Barge and vessel logistics could also be used for transport of

forest chips

• Inland waterway transport of forest fuels “by barges”

• Climbus project in 2006-2008, Financed by Tekes and

private companies

Practical demonstrations and scientific simulations• Practical demonstrations and scientific simulations

• Karttunen, K., Väätäinen, K., Asikainen, A. & Ranta, T.

2012. The Operational Efficiency of Waterway

Transport of Forest Chips on Finland s Lake Saimaa.

Silva Fennica 46 (3): 395-413.

Page 8: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Why barge?

- Large volume of barge itself (vs. 15-50 average truck loads)15 50 average truck loads)

- It´s possible to increasenumber of barges in transport g plogistics

AND/OR

- It is possible to increase number of barges as a part of interchangeablelogistics or use cheaper bargesas storages

= The main idea is to decrease transport costs and get the logistics more effective= More expensive tug-boats should be driven optimally

Page 9: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Aim of the studyAim of the study

Study the logistics and the operations efficiency Study the logistics and the operations efficiency of waterway transport of forest chips in the lake SaimaaSaimaa

using the practical demonstrations and discrete-event simulation as a study method

Find out the most cost efficient options in barge transport logisticstransport logistics

Vessel size, load size, number of barges, transport logistics, harbour logistics

Cost comparison of transportation methods –waterway vs road ( hi t k)waterway vs. road (chip truck)

In a function of transporting distance and annual machine use

Page 10: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Waterway transport logistics

There are several ways of organizing waterway transport withalternative loading/unloading operations and tug-boat/bargesg g g g

Page 11: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Material and methods

Study area: Lake Saimaa region in y gEastern Finland

Forest fuel terminals and end-use facilities right next to harbours andfacilities right next to harbours and waterways with bigger tug-boat systems (except Mikkeli route only for smaller t b t)tug-boat)

Forest fuel use of power plants and biorefinery was based on the future yexpected needs; 2015 (Varkaus 2000 GWh, Mikkeli 500 GWh, Savonlinna 120 GWh)

Study allocation of forest chip60%

Study allocation of forest chip transportation by waterways: 60 % to Varkaus, 30 % to Mikkeli and 10 % to Savonlinna

30%

10%

= Forest fuel terminal, loading

= End use of forest fuel, unloading

Page 12: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Material and methods− 1. Demostration study

− 2a. Simulation study-WITNESS - business simulationWITNESS business simulation system is the suitable method for complex supply chain analysis-Discrete-event simulation include the rules for each event in the system

In this presentation:-Coordination operatoras a organizational model-Designed by: Kari Väätäinen (subcontracting, Metla)

Page 13: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Material and methods2b Simulation2b. Simulation

= Forest fuel terminal, loading= End use of forest fuel, unloading

Other simulation study with same model: - In one company concept biomass is transported from two terminals to one user site-Contracting as a organizational model-Some barge models and concepts were changed-(Korpinen et al. 2010), LUT. Hiltunen, Bachelor´s thesis, UEF

Page 14: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Material and methods1 Demonstrations1. Demonstrations

• Demonstrations were arranged in order to attain the information needed for the simulations and to understand the f ti lit f th ti f t t tfunctionality of the operations of waterway transports

• The objectives of demonstrations were to compare: 1. Alternative chipping systems

• roadside chipping and terminal chipping• Question: Which system could be working better in

practice before waterway transport?2 P d ti it f l di th d2. Productivity of loading methods

• material handling machines vs. digger (different power, scoop size, concept) and wheeled front loader + belt conveyor+ belt conveyor

• Question: Is there productivity and unit cost differences between alternative methods?

3 Energy density of chip truck and barge load3. Energy density of chip truck and barge load• Chip truck used in demonstration (120 and 140 m3)• Hopper barge loads used in demonstration (800 tn

hold capacity and 1200 tn heaped/compressedhold capacity and 1200 tn heaped/compressed capacity)

• Question: Is there density differences between of trucks and barges?

Page 15: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Material and methods2a. SimulationSystem structure of simulation

Basic assumption – always forest chips available to transport Simulation system contains the harbour operations (loading/unloading) and barge

transportation by waterwaystransportation by waterways Simulation based on the fleet in 2008 of barge transport (Vessel called Arppe

allready sold away)

Vessels (tug-boats) and barges: Vessels: 1. Tapio: small tug-boat, 900,000 € (342 kWh)

2 Arppe: big tug-boat 3 6 milj € (2x750 kWh)2. Arppe: big tug-boat, 3,6 milj. € (2x750 kWh) Barges: 1. Deck barge, 600,000 € (capacity 500 tons)

2. Hopper barge, 1 milj. € (capacity 1,200–1,800 tons)

Hopper barge Deck bargeTapio: small tug-boat Arppe: big tug-boat

Page 16: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Material and methodsSimulation Scenarios

Each scenario: 5 x 9 months (5 x 6 600 hours)Each scenario: 5 x 9 months (5 x 6 600 hours) Randomness (load size, loading/unloading productivities, route speeds) Vessels were operating as one-way trips Used unit: ton moisture content (demo): 39 % 3 MWh/tonUsed unit: ton, moisture content (demo): 39 % 3 MWh/ton

Study scenarios: 1 Transport logistics:1. Transport logistics:

Fixed-barge logistic Interchangeable-barge logistic Fixed with two bargesFixed with two barges

2. Barge logistics: Tapio smaller tug-boat:Tapio, smaller tug boat:

500 tons (deck barge) x2 1200 tons (hopper barge, towing!! speed reduction 2 km/h)

Arppe bigger tug-boat: Arppe, bigger tug-boat: 1200 tons (hopper barge) x2 1800 tons (hopper barge with extra edges)

Page 17: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Material and methodsSimulation ScenariosSimulation Scenarios

3. Harbour logistics:

Loading and unloading with hydraulic harbour cranes within g g ywork-shifts at harbour (shift dependent)

Loading UnloadingTransport

Loading with mobile belt conveyor and wheeled front loader, unloading with harbour cranes (partly shift dependent)unloading with harbour cranes (partly shift dependent)

Loading UnloadingTransport

Loading and unloading with mobile belt conveyor and wheeled front loader (shift independent)

L di U l diLoading Transport Unloading

Page 18: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Material and methodsCost calculations

C t t t ti f ll l h i l t i l d d ( i Cost structure accounting for all supply chain elements included (average price level of 2007)

Cost data collected from entrepreneurs or other surveys Cost data collected from entrepreneurs or other surveys

Productivity data from demonstration and other surveys

Unit costs: Hourly cost / Productivity. (Loader, for example: 95 €/h / 525 MWh/h = 0.18 €/MWh)

The costs of other elements of the supply chain were constant before long-The costs of other elements of the supply chain were constant before longdistance transportation (€/MWh):

Road transport Waterway transport Roadside price (logging residues) 3.5 3.5p ( gg g ) Chipping 3.5 3.5 Road transport, 30 km 2.2 Piling and storing 0.3

Page 19: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Results and discussion: 1. Demonstrations

1 Alternative chipping systems (roadside chipping and terminal chipping)1. Alternative chipping systems (roadside chipping and terminal chipping)• Answer: Both systems are workable, but… • Now we know that buffer storage must be good enough when transporting

big loads. Roadside chipping was cheaper in practice anyway.2. Productivity of loading methods

• Answer: There are productivity differences according to the scoop size and p y g pmachine power

• Now we know that scoop size can be as big as possible when loading light material like forest chips. Other methods need to be studied too.material like forest chips. Other methods need to be studied too.

3. Energy density of chip truck and barge loads• Answer: There are density differences between trucks and barges

N k th t d it (MWh/ 3) f b l d 25% b tt• Now we know that energy density (MWh/m3) of barge load was 25% better than trucks

• That’s mainly because of large load size compressing the forest chips l d it lfload itself.

Page 20: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Results and Discussion: 2 a Simulations (Karttunen et al)2.a. Simulations (Karttunen et. al)

The most efficient logistics was NO: A2a3 (1.71€/MWh, 179km): -1. Barge logistics: Small tug-boat Tapio+Eur IIabbarge-2. Trasport logistics: fixed barge-3. Harbour logistics: loading and unloading by beltconveyor system shift independently (own grewconveyor system shift-independently (own grewmanaged the loadings)

Page 21: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Results and Discussion:Waterway vs. road transport

The waterway concepts were found to be more cost competive than road supply

16,0

The waterway concepts were found to be more cost-competive than road supplychain after distances up to 100-150 km

8 0

10,0

12,0

14,0os

ts, €

/MW

h

Chip truck 3,000 hours, load: 34 tons

2,0

4,0

6,0

8,0

supp

ly c

hain

co p , ,

Chip truck 4,000 hours, load: 34 tons

Big tug-boat, load: 1,800 tons, harbour shiftindependentSmall tug-boat, load: 1,200 tons, harbour shiftindependent

0,00 50 100 150 200 250 300

Transport distance, km

depe de

Road cost, €/MWh Waterway cost, €/MWhRoadside price 3,5 3,5Chipping 3,5 3,5Road transport, 30 km – 2,2Piling and storing – 0 3Piling and storing 0,3Loading+unloading (in harbours) – 0,3–0,6Long distance transport

100 km 3,5–3,8 0,9–2,0250 km 6,8–7,4 1,8–3,6

Page 22: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Results and Discussion: What over- and underestimations werein study compared to current information?

Cost influence:1. Trasportation fuel prices has growing dramatically after study (~50%)

- Truck cost structure 20%T b t t t t 15%

Cos ue ce

- Tug-boat cost structure 15%2. Some terminal investments 10%3. Possibility to get loadings more efficient -10%4. Sudden breakdowns and accidents were not included 5%5. Two way transportation (barge could get back hauling vs. truck) -20%6 No need for transport in summer season (except Biorefinery) 15%6. No need for transport in summer season (except. Biorefinery) 15%7. No need for biorefinery (but more will be used in power plants) +/-8. Small tug-boat may need more crew or support vessel 10%9. Annual operation times

- Truck (3000-4000 h are too much) 15%- Tug-boat (9 months is too much or ice-breaking needed) 10% g ( g )

Total cost influence : Barge: +35%, Truck: +35%

Page 23: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Results and Discussion:

3 50

4.00

2.b.Simulation (Korpinen et. al 2010)

2.50

3.00

3.50

et, €

/MW

h

SatamatoiminnotProomukustannus

Harbour logisticsBarge cost

1.00

1.50

2.00

Kus

tann

ukse Aluksen odotus

Aluksen käyttöTug-boat, idle timeTug-boat, busytime

-

0.50

P151 P152 P161 P162 P281 P282 P351 P352 P361 P362 P451 P452 P461 P462

The most efficient logistics was NO: P352 (2 €/MWh, 290 km): -1. Barge logistics: Small tug-boat Tapio+Eur IIa barge

Hiltunen 2010, Corrected by Korpinen 2012

g g g p g-2. Trasport logistics: interchangeable barge (1)-3. Harbour logistics: loading and unloading belt conveyor system shift-independentwith own crew

..…….But the cost of P152 was exactly the same with fixed barge logistics…………

Page 24: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Results and Discussion: Future visions of biomass waterway logisticsFuture visions of biomass waterway logistics

Large-barge models couldbe developed (7100 m3 ):

Big bulk vesselscan be used forbe developed (7100 m3 ): can be used for sea logistics:

Casen 2007

Intermodal containerscould be used:

L di d t i l

Tug-boat/Vessel could bedeveloped :

Föhr 2012 Loading and terminalmethods couldbe developd:

Ultralight bioship NK Consult

Page 25: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Conclusion

− We found that waterway transport by barge can be cost-competitive d t t k t t ft 100 k di tcompared to truck transport after 100 km distances

− Still many ways to improve the cost-efficiency of waterway supply chain− Many assumptions and restrictions in the study y p y

-> More study and empirical tests are needed…

− Are Waterways a future backbone of feedstock supply?− Are Waterways – a future backbone of feedstock supply?− Long-distance transportation (>100 km) will be needed for biomass logistics by 2020− Waterway transportation of forest chips could be increased, if:

− 1. There had more heavy user sites next to waterways with harbour facilities− The use of forest chips would be year-round, such as biorefineries

− 2. There had private and public investments to the whole supply chain with2. There had private and public investments to the whole supply chain with satellite terminals and waterway systems

− 3. There had enough entrepreneurs to the whole supply chain

− Waterway supply chain can be developed to be one promising option for biomass logistics!

Page 26: Karttunen, K. 2012.  Waterways – a future backbone of feedstock supply?

Thank you for your attention Joensuu !

More information: [email protected]