Supply Chain Challenges: BIOMASS
Over the last decade, biomass of various kinds has become an increasingly commonly used fuel for electricity generation, particularly in the European Union, which mandated ambitious threshold targets for the share of renewables in total electricity generation.
Wood chips and pellets have taken a large share of biomass production, not just in Europe, but also parts of Asia as well. In fact, according to the US International Trade Commission, production of wood pellets in the US for export to these locations increased 400% between 2008 and 2014 to help meet the increased demand. The US International Trade Commission further states that, “estimates of global wood pellet consumption vary, but are currently in the range of 22 – 25 million metric tons (Mt) annually. This projected to rise to between 50 and 80 million Mt by 2020. At 19 million Mt in 2013, the EU accounted for 85 percent of global consumption of wood pellets.”
This white paper examines some of the challenges around managing and optimizing biomass supply chains and discusses Generation 10’s Commodity Manager as a comprehensive software solution to these challenges.