Potential exportation of wood pellets and torrefied biomass pellets logistics cost analysis: A comparative case study from Portugal

Abstract

This study evaluates the logistics cost associated with transporting Wood Pellets (WP) and Torrefied Biomass Pellets (TBP) from Aveiro, Portugal’s principal WP exporting port, to Northern European destinations. With increasing emphasis on sustainable energy, understanding the cost dynamics between WP and TBP becomes crucial for market competitiveness. Using data sourced from the Argus Biomass Markets report, we compared the energy in gigajoules per ton of both WP and TBP. Torrefaction results in pellets with superior energy and bulk densities, influencing their transportation logistics costs. The main metrics for comparison were cost per energy unit and the implications of energy and bulk densities on transport costs. Preliminary findings indicate that although torrefied pellets undergo more significant mass loss than energy loss, their enhanced energy and bulk densities present logistical advantages. These advantages manifest as more tons per volume unit and heightened energy per ton, which ultimately lead to reduced transportation cost per energy unit. The insights from this analysis provide valuable input for the biofuel sector. By understanding the cost benefits associated with TBP transportation in contrast to WP, stakeholders can make strategic decisions, bolstering the competitiveness of Portuguese biofuel products in the European domain.