Feedstock Costs and Availability for a Proposed Co-gasification Plant in the Western United States

Haley Thompson ‘11

Logging Residue Removal Cost Analysis

• Using the Forest Residue Cost model • Assuming that the truck must travel roughly 2

miles on recently built or spur roads to access the location of the grinder to process the biomass in the woods.

• Assuming an average of 50 miles to transport biomass to Missoula

• Use Knuckleboom loader, tub grinder at the site, truck w/pup to transport ground biomass

• Use cost indices to analyze results in 2007 dollars

Rail Transport Cost Analysis• Find BNSF Price

Quotes for transporting coal and biomass to/from Western Montana

• Use BNSF Mileage calculator to determine the distance between origin and destination to calculate fuel mileage surcharge

• Fuel surcharge from BNSF Rules Book 6100 item 3381.

Total cost for Biomass Transportation from Western MT to CO/WY

Used Forest Residue Cost Model from the Forest Operations Research Unit (USFS)All dollars were converted from 2004 to 2007 dollarsFor Logging machinery/Equipment and insurance for the machinery I used Price Index PCU532412532412 from the Bureau of Labor Statistics DataFor wages/benefits I used the Employment cost index from the Bureau of Labor and StatisticsFound average cost of diesel fuel in 2007 and assumed that oil increased by the same percentage from 2004 to 2007Assuming biomass has 40% moisture content

Cost to Collect/Transport to Missoula, MT (average) 43.50 $/tonCost to transport by rail to Denver, CO (<5600 ft³/car) 68.28 $/tonCost to transport by rail to Denver, CO (<7000 ft³/car) 62.32 $/ton

use boxcar because it's less expensive

Total Cost of Harvesting Logging Residue and Transporting it to a facility

<5600 ft³/car 111.78 $/ton<7000 ft³/car 105.82 $/ton

Total Cost for Coal Transportation from WY to Western Montana

EIA Annual Coal Report 2008, Table 34

Cost of coal at mine (assume coming from MT/WY) 11.00 $/tonCost of transportation to Great Falls (MT) ~ 17.10 $/tonCost of transportation to Spokane (WA) 24.50 $/tonCost of transportation to Spokane (WA) after rate change 41.60 $/ton

Total delivered cost Great Falls 28.10 $/tonTotal delivered cost Spokane 35.50 $/tonTotal delivered cost Spokane (after change) 52.60 $/ton

EIA annual coal report shows that the average delivered price of coal to Utility Plants in 2007 in the Mountain region was 27.25$/ton and the average cost to Other Industrial Plants was 41.68 $/ton. These estimates seem reasonable compared to these averages.

Cost Comparison EstimationsCost to harvest biomass/transport to Missoula 43.50 $/bdt 2.28 $/GJCost to harvest biomass/transport to Denver 105.82 $/bdt 5.54 $/GJCost of delivered coal at Great Falls 28.10 $/ton 1.57 $/GJCost of delivered coal at Spokane* 35.50 $/ton 1.98 $/GJ

Cost of delivered backhauled MPG 141.00 $/ton 9.74 $/GJCost of delivered backhauled Corn Stover 84.39 $/ton 6.66 $/GJ

* I am using the lower price quote because I believe the cost totransport coal to Missoula will be between the cost to deliver

Reasons for the rate differences• Coal is more dense: 100 tons/car coal vs. 30-40 tons/car biomass• Biomass must be transported significant distances on trucks as well as rail whereas trains go directly to many mines • One issue not addressed in this presentation is the fact that values are calculated for bdt of biomass when in fact air dried biomass has a moisture content of 15-20% which would decrease the amount transportable in one railcar and also effect the energy equivalent for the fuel

Acknowledgements

• Dr. Eric Larson (PEI)• Dr. Tom Kreutz• Dr. Bob Williams• PEI