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TeleconferenceMay 4, 2010

John S. Cundiff, ProfessorBiological Systems Engineering

Virginia Tech

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Big square bale system:1. Used for commercial hay industry2. Much development already completed and

more in process (DOE Feedstock Logistics Projects)3. Not appropriate for many areas in the Southeast

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Truckload of big square bales: 25 ton @ 15% MC = 21.2 dry ton

Truckload of round bales:12.5 ton @ 15% MC = 10.6 dry ton

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Bioenergy Industry

Why the SE?

Why the round bale?

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Why the round bale?

• It allows the uncoupling of the baling and in-field hauling operations

• The round bale (net wrapped) protects itself in uncovered storage

• Round balers are used for existing cattle operations and the energy crop harvest occurs at a different time. The additional annual operating hours benefits both enterprises.

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Do we want the “plantation” model?

or

Do we want a bioenergy industry where the smallest farmgate contract is 100 ac?

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Farmgate Contract

If my contract is to grow, harvest in net-wrapped round bales, and place in a Satellite Storage Location, then the 100 ac minimum is viable.

If my contract is to grow, harvest as big square bales, store in covered storage, and deliver x loads per week to the bioenergy plant, then the 100 ac minimum is not viable.

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Why not sell herbaceous biomass standing in the field---like woody biomass?

Works for crop residues (corn stover and wheat straw) in some locations.

Does not work for switchgrass. Why?

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If my profit depends on the productivity of my switchgrass stand over the 10-y life of my contract, I do not want a contractor coming into my field and damaging the stand. Very important issue for a winter harvest in the SE!

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Which is preferable?

200 round balers under the control of 200 farmgate contract holders seeking winter harvest opportunities across the entire 30-mi radius feedstock supply area…

OR20 big square balers under the control of 20 contractors

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How much is the “robustness” of the round bale system worth to the bioenergy industry?(Think about a winter harvest in the Southeast---there are a lot of days when the fields are too wet for baling.)

At what point will the industry be ready to pay for robustness?

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Ideal Conditions

Is baling cost ($/ton) higher for the round bale?

yes

Is hauling cost ($/ton) higher for the round bale?

Maybe not!

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Big Square Bale

• 25 ton load• 40 min to load• 25 mi haul, average speed 45 mph• 10 min to unload• 10 h workday

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Big Square Bale

125 ton/d/truck

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Round Bale

• 12.5 ton load• 10 min to load• 25 mi haul, average speed 45 mph• 10 min to unload• 24 h workday

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Round Bale

207.5 ton/d/truck

or

66% more than the big square bale

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Is there a cost-effective way to load in 10 min?

Is there a cost-effective way to haul 24 h?

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Do you need a large forklift at unload 16-bale racks at the Receiving Facility?

yesDo you need a large forklift to load 16-bale racks at the SSL?

Yes

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Is the forklift at the Receiving Facility a disadvantage?

noIs the forklift at the SSL a disadvantage?

yes

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Summary

Is the harvest cost (baling and in-field hauling) higher for the 5x4 round bale?

yes (neglecting the robustness factor)Is the storage cost higher?

noIs the hauling cost higher?

???Is the Receiving Facility cost higher?

NO

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Summary

Will “seamless” logistics ever be important?