Logistics cost analysis of rice straw for biomass power generation in Thailand

The logistics of the fuel supply have a large impact on the economy of a biomass power generation facility, especially for low density biomass fuels like straw. A detailed cost analysis of a typical rice straw logistics process for two baling options in three regions of Thailand shows that the costs for all logistics operations vary from a minimum of 18.75 USD/t for small rectangular bales in the Northern region of Thailand to maximum 19.89 USD/t for large rectangular bales in the North-eastern region. The difference in costs is not very significant due to the higher ownership and operating costs of the equipment for using large rectangular bales; however, the specific fuel consumption cost is substantially lower by around 17.5% and a total transport cost reduction is about 31.5%. Analysis of the logistics economies of scale for projected power plant capacities of 2–35 MWe showed that each doubling the capacity of the energy facility increases the specific costs of the logistics operations only by around 4% in all regions.

► This article has presented a comprehensive supply chain analysis for the rice straw-fueled power generation in Thailand.
► The appropriate formula and considerations are presented in detail to model the supply chain of a biomass-based power plant.
► The costs breakdown of the logistics operations are discussed thoroughly for two baling systems.
► The consumption and cost of diesel fuel, and the cost of road transportations for the two baling systems are compared.
► Logistics cost analyses for the power plant capacity range of 2–35 MWe are presented and issues are discussed.