The Economics of Biomass Transportation for Power Generation

This study analyzes the economic and environmental effects of trans-shipping biomass from truck to train. Trans-shipment incurs incremental fixed costs, and there is a minimum shipping distance for rail transport above which lower costs per km offset the incremental fixed costs. The minimum economic shipping distance for straw exceeds the biomass draw distance, and hence the prospects for rail transport are limited to cases where traffic congestion from truck transport would otherwise preclude project development. In Alberta the layout of existing rail lines precludes a centrally located wood chip plant supplied by rail, while a more versatile road system enables it by truck. A consolidated set of life cycle analysis data is used to investigate the environmental load for biomass trans-shipment from truck. The results favor train over truck. In addition, trans-shipment of biomass provides a means to limit the impact of road congestion and community resistance to large economic biomass projects.

Hamed Mahmudi is a PhD candidate in Finance at Rotman School of Management at the University of Toronto. He also holds an MScB in Finance from University of British Columbia and an MSc in Engineering Management from the University of Alberta.Peter Flynn received his Ph. D. in Chemical Engineering from the University of Alberta in 1974 and spent the next 25 years in a variety of technical, managerial and executive roles in the Canadian energy and telecommunications industries. In 1999 he returned to the University of Alberta as the Poole Chair in Management for Engineers.