The effect of location and facility demand on the marginal cost of delivered wood chips from energy crops: A case study of the state of Tennessee

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Description

Cost-supply curves for delivered wood chips from short rotation woody crops were calculated for 21 regularly-spaced locations spanning the state of Tennessee. These curves were used to systematically evaluate the combined effects of location and facility demand on wood chip feedstock costs in Tennessee. The cost-supply curves were developed using BRAVO, a GIS-based decision support system which calculates marginal cost of delivering wood chips to a specific location given road network maps and maps of farmgate prices and supplies of woody chips from short rotation energy crops. Marginal costs of delivered chips varied by both facility location in the state ... continued below

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11 p.

Creation Information

Graham, R.L.; Liu, W.; Downing, M.; Noon, C.; Daly, M. & Moore, A. December 31, 1995.

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  • Graham, R.L.
  • Liu, W.
  • Downing, M. Oak Ridge National Lab., TN (United States). Biofuels Feedstock Development Program
  • Noon, C.
  • Daly, M. Univ. of Tennessee, Knoxville, TN (United States). Management Science Program
  • Moore, A. Dept. of Trade and Industry, Harwell (United Kingdom). Energy Technology Support Unit

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Description

Cost-supply curves for delivered wood chips from short rotation woody crops were calculated for 21 regularly-spaced locations spanning the state of Tennessee. These curves were used to systematically evaluate the combined effects of location and facility demand on wood chip feedstock costs in Tennessee. The cost-supply curves were developed using BRAVO, a GIS-based decision support system which calculates marginal cost of delivering wood chips to a specific location given road network maps and maps of farmgate prices and supplies of woody chips from short rotation energy crops. Marginal costs of delivered chips varied by both facility location in the state and facility demand. Marginal costs were lowest in central Tennessee unless the facility demand was greater than 2.7 million dry Mg per year (3 million dry tons per year) in which case west Tennessee was the lowest cost region. Marginal costs rose rapidly with increasing facility demand in the mountainous eastern portion of the state. Transportation costs accounted for 18 to 29% of the delivered cost and ranged between $8 and $18/dry Mg ($7 and $16/dry ton). Reducing the expected farmer participation rate from 100% to 50% or 25% dramatically raised the marginal costs of feedstock supply in the east and central regions of the state. The analysis demonstrates the need to use geographically-specific information when projecting the potential costs and supplies of biomass feedstock.

Physical Description

11 p.

Notes

INIS; OSTI as DE96008669

Source

  • 2. biomass conference of Americas, Portland, OR (United States), 20-24 Aug 1995

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  • Other: DE96008669
  • Report No.: CONF-9508218--3
  • Grant Number: AC05-96OR22464
  • DOI: 10.2172/219272 | External Link
  • Office of Scientific & Technical Information Report Number: 219272
  • Archival Resource Key: ark:/67531/metadc667186

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Creation Date

  • December 31, 1995

Added to The UNT Digital Library

  • June 29, 2015, 9:42 p.m.

Description Last Updated

  • Jan. 19, 2016, 12:58 p.m.

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Graham, R.L.; Liu, W.; Downing, M.; Noon, C.; Daly, M. & Moore, A. The effect of location and facility demand on the marginal cost of delivered wood chips from energy crops: A case study of the state of Tennessee, report, December 31, 1995; Tennessee. (digital.library.unt.edu/ark:/67531/metadc667186/: accessed August 18, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.