You’ve probably heard the word “sustainable” many times by now, but you may wonder what it has to do with your business. Sustainable business means that you’ll be you’ll be increasing the odds that you company can continue indefinitely by minimizing social and environmental impacts while ensuring financial stability. Studies have shown that sustainable business perform better financially, including one report by nonprofit CDC, reported by The Guardian that found they secure an 18% greater return on investment (ROI) than organizations that aren’t, and 67% more than companies who refuse to. How can you help your business become more sustainable?
Think Greener in Procurement Sources
One of the best, and easiest, things you can do to make your business more sustainable is to practice environmentally-friendly procurement. Take a close look at your current suppliers and make changes as necessary by using suppliers that don’t use excessive packaging or sell products that contain substances that are harmful to the environment.
Whenever possible, use local suppliers, rather than purchasing online.
Seek Help from an Energy Broker
An increasing number of businesses are embracing renewable energy and energy management today. Your office can be powered with a variety of alternative sources like biomass, hydropower, geothermal, solar and wind power. There are hundreds of companies that supply energy in a myriad of different ways, affecting your bottom line and sustainability.
While there are usually a few suppliers dominating any given market, many other small suppliers are known for getting more creative in their offerings. Trying to figure out which one is best for your organization can be a very difficult task which is why using an energy broker who is knowledgeable about all the complexities that come with this sector, can best analyze the energy market to provide you with the greenest, most cost-effective options.
Reduce Water Usage
Water shortages are becoming an increasingly bigger problem in many places around the world, including North America. Whether your organization is located in a drought-stricken area or not, decreasing water use will help to conserve a valuable resource and help you save money at the same time.
Instead of using a sprinkler system to keep lush lawns around the building, switch to a drip irrigation system to significantly reduce water usage or consider changing the landscaping to something more drought tolerant. Fix plumbing leaks and dripping taps and install low-flow faucet aerators in your bathrooms.
Switch From Gas To Electricity
Electricity is much easier to source sustainably than gas and oil, especially if you use solar panels to collect energy from the sun. So by switching over some of your gas-powered company owned equipment to their electric counterparts you can ultimately help your business become more sustainable.
Some equipment to consider switching could include: switching from gas powered to electric vehicles (especially for companies that rely heavily on transportation), switching from gas-powered to electric-powered riding mowers (especially for landscaping businesses).
As there are so many different types of lawn mowers available, sites like home gear expert show us interesting comparisons which will help you find the one which best matches your needs.
A good electric riding mower with good user ratings will cost you a couple thousand dollars but could save you money in the long term plus make your business more sustainable.
Biomass resources have been in use for a variety of purposes since ages. The multiple uses of biomass includes usage as a livestock or for meeting domestic and industrial thermal requirements or for the generation of power to fulfill any electrical or mechanical needs. One of the major issues, however, associated with the use of any biomass resources is its supply chain management.
The resource being bulky, voluminous and only seasonally available creates serious hurdles in the reliable supply of the feedstock, regardless of its application. The idea is thus to have something which plugs in this gap between the biomass resource availability and its demand.
The supply chain management in any biomass-based project is nothing less than a big management conundrum. The complexity deepens owing to the large number of stages which encompass the entire biomass value chain. It starts right from the resource harvesting and goes on to include the resource collection, processing, storage and eventually its transportation to the point of ultimate utilization.
Owing to the voluminous nature of the resource, its handling becomes a major issue since it requires bigger modes of logistics, employment of a larger number of work-force and a better storage infrastructure, as compared to any other fuel or feedstock. Not only this their lower energy density characteristic, makes it inevitable for the resource to be first processed and then utilized for power generation to make for better economics.
All these hassles associated with such resources, magnify the issue of their utilization when it comes to their supply chain. The seasonal availability of most of the biomass resources, alternative application options, weather considerations, geographical conditions and numerous other parameters make it difficult for the resource to be made consistently available throughout the year. This results in poor feedstock inputs at the utilization point which ends up generating energy in a highly erratic and unreliable manner.
Although most of the problems discussed above, are issues inherently associated with the usage of biomass resources, they can be curtailed to a larger extent by strengthening the most important loophole in such projects – The Biomass Resource Supply Chain.
World over, major emphasis has been laid in researching upon the means to improve the efficiencies of such technologies. However, no significant due diligence has been carried out in fortifying the entire resource chain to assure such plants for a continuous resource supply.
The usual solution to encounter such a problem is to have long term contracts with the resource providers to not only have an assured supply but also guard the project against unrealistic escalations in the fuel costs. Although, this solution has been found to be viable, it becomes difficult to sustain such contracts for longer duration since these resources are also susceptible to numerous externalities which could be in the form of any natural disaster, infection from pests or any other socio-political or geographical disturbances, which eventually lead to an increased burden on the producers.
Japan’s biomass fuel requirement is estimated to be tens of millions of tons each year on account of its projected biomass energy capacity of 6,000MW by the year 2030. To achieve this capacity, more than 20 million tons of biomass fuel will be needed every year which will be mainly met by wood pellets and palm kernel shell (PKS). The similarity of the properties of wood pellets with PKS makes PKS the main competitor of wood pellets in the international biomass fuel market.
PKS has emerged as an attractive biomass commodity in Japan
Canada and USA are the biggest suppliers of wood pellets to the Japanese biomass market while PKS mainly comes from Indonesia and Malaysia. With the size of the material almost the same as wood pellets, but at a cheaper price (almost half the wood pellets) and also available in abundance, PKS is the preferred biomass fuel for the Japanese market. PKS can be used 100% in power plants that use fluidized bed combustion technology, while wood pellets are used in pulverized combustion.
Although there is abundant PKS in CPO (crude palm oil) producing countries, but fluctuations in CPO production and increase in domestic demand has led to reduction in PKS exports in Southeast Asia. In palm oil plantations, it is known as the low crop season and peak crop season. When the low crop season usually occurs in the summer or dry season, the supply of fruit to the palm oil mills decreases so that the CPO production decreases and also the supply of PKS automatically reduces, and vice versa in the peak crop season. When demand is high or even stable but supply decreases, the price of PKS tends to rise.
In addition, a wide range of industries in Indonesia and Malaysia have also began to use PKS as an alternative fuel triggering increased domestic demand. In recent years, PKS is also being processed into solid biomass commodities such as torrified PKS, PKS charcoal and PKS activated carbon. Thus, there is very limited scope of increasing PKS supply from Southeast Asia to large-scale biomass consumers like Japan and South Korea.
Palm oil mills process palm oil fruit from palm oil plantations, so the more fruit is processed the greater the PKS produced and also more processors or mills are needed. At present it is estimated that there are more than 1500 palm oil mills in Indonesia and Malaysia. Palm kernel shells from Indonesia and Malaysia is either being exported or used domestically by various industries. On the other hand, in other parts of the world PKS is still considered a waste which tends to pollute the environment and has no economic value.
Top palm oil producers around the world
West African countries, such Nigeria, Ghana and Togo, are still struggling to find a sustainable business model for utilization of PKS. Keeping in view the tremendous PKS requirements in the Asia-Pacific region, major PKS producers in Africa have an attractive business opportunity to export this much-sought after biomass commodity to the Japan, South Korea and even Europe.
Simply speaking, PKS collected from palm oil mills is dried, cleaned and shipped to the destination country. PKS users have special specifications related to the quality of the biomass fuel used, so PKS needs to be processed before exporting.
PKS exports from Indonesia and Malaysia to Japan are usually with volume 10 thousand tons / shipment by bulk ship. The greater the volume of the ship or the more cargo the PKS are exported, the transportation costs will generally be cheaper. African countries are located quite far from the Asia-Pacific region may use larger vessels such as the Panamax vessel to export their PKS.
Biomass harvesting and collection is an important step involving gathering and removal of the biomass from field which is dependent on the state of biomass, i.e. grass, woody, or crop residue. The moisture content and the end use of biomass also affect the way biomass is collected. For crop residues, the operations should be organized in sync with the grain harvest as it occupies the centrestage in farming process.
All of other operations such as residue management and collection take place after so-called grain is in the bin. On the other hand, the harvest and collection dedicated crops (grass and woody) can be staged for recovery of the biomass only. In agricultural processing, straw is the stems and leaves of small cereals while chaff is husks and glumes of seed removed during threshing.
Modern combine-harvesters generally deliver straw and chaff together; other threshing equipment separates them. Stover is the field residues of large cereals, such as maize and sorghum. Stubble is the stumps of the reaped crop, left in the field after harvest. Agro-industrial wastes are by-products of the primary processing of crops, including bran, milling offal, press-cakes and molasses. Bran from on-farm husking of cereals and pulses are fed to livestock or foraged directly by backyard fowls.
The proportion of straw, or stover, to grain varies from crop to crop and according to yield level (very low grain yields have a higher proportion of straw) but is usually slightly over half the harvestable biomass. The height of cutting will also affect how much stubble is left in the field: many combine-harvested crops are cut high; crops on small-scale farms where straw is scarce may be cut at ground level by sickle or uprooted by hand.
Modern combine-harvesters generally deliver straw and chaff together
Collection involves operations pertaining to gathering, packaging, and transporting biomass to a nearby site for temporary storage. The amount of a biomass resource that can be collected at a given time depends on a variety of factors. In case of agricultural residues, these considerations include the type and sequence of collection operations, the efficiency of collection equipment, tillage and crop management practices, and environmental restrictions, such as the need to control erosion, maintain soil productivity, and maintain soil carbon levels.
Biomass logistics involves all the unit operations necessary to move biomass wastes from the land to the biomass energy plant. The biomass can be transported directly from farm or from stacks next to the farm to the processing plant. Biomass may be minimally processed before being shipped to the plant, as in case of biomass supply from the stacks. Generally the biomass is trucked directly from farm to the biomass processing facility if no processing is involved.
Another option is to transfer the biomass to a central location where the material is accumulated and subsequently dispatched to the energy conversion facility. While in depot, the biomass could be pre-processed minimally (ground) or extensively (pelletized). The depot also provides an opportunity to interface with rail transport if that is an available option. The choice of any of the options depends on the economics and cultural practices. For example in irrigated areas, there is always space on the farm (corner of the land) where quantities of biomass can be stacked.
Reduce the number of passes through the field by amalgamating collection operations.
Increase the bulk density of biomass
Work with minimal moisture content.
Granulation/pelletization is the best option, though the existing technology is expensive.
Trucking seems to be the most common mode of biomass transportation option but rail and pipeline may become attractive once the capital costs for these transport modes are reduced.
The logistics of transporting, handling and storing the bulky and variable biomass material for delivery to the biopower plant is a key part of the biomass supply chain that is often overlooked by project developers. Whether the biomass comes from forest residues on hill country, straw residues from cereal crops grown on arable land, or the non-edible components of small scale, subsistence farming systems, the relative cost of collection will be considerable.
Careful development of a system to minimize machinery use, human effort and energy inputs can have a considerable impact on the cost of the biomass as delivered to the biomass processing plant gate.
The logistics of supplying a biomass power plant with consistent and regular volumes of biomass are complex.
Most of the agricultural biomass resources tend to have a relatively low energy density compared with fossil fuels. This often makes handling, storage and transportation more costly per unit of energy carried. Some crop residues are often not competitive because the biomass resource is dispersed over large areas leading to high collection and transport costs.
The costs for long distance haulage of bulky biomass will be minimized if the biomass can be sourced from a location where it is already concentrated, such as sugar mill. It can then be converted in the nearby biomass energy plant to more transportable forms of energy carrier if not to be utilized on-site.
The logistics of supplying a biopower plant with sufficient volumes of biomass from a number of sources at suitable quality specifications and possibly all year round, are complex. Agricultural residues can be stored on the farm until needed. Then they can be collected and delivered directly to the conversion plant on demand. At times this requires considerable logistics to ensure only a few days of supply are available on-site but that the risk of non-supply at any time is low.
Losses of dry matter, and hence of energy content, commonly occur during the harvest transport and storage process. This can either be from physical losses of the biomass material in the field during the harvest operation or dropping off a truck, or by the reduction of dry matter of biomass material which occurs in storage over time as a result of respiration processes and as the product deteriorates. Dry matter loss is normally reduced over time if the moisture content of the biomass can be lowered or oxygen can be excluded in order to constrain pathological action.
To ensure sufficient and consistent biomass supplies, all agents involved with the production, collection, storage, and transportation of biomass require compensation for their share of costs incurred. In addition, a viable biomass production and distribution system must include producer incentives, encouraging them to sell their post-harvest plant residue.
Sufficient storage for biomass is necessary to accommodate seasonality of production and ensure regular supply to the biomass utilization plant. The type of storage will depend on the properties of the biomass, especially moisture content. For high moisture biomass intended to be used wet, such as in fermentation and anaerobic digestion systems, wet storage systems can be used, with storage times closely controlled to avoid excessive degradation of feedstock. Storage systems typically used with dry agricultural residues should be protected against spontaneous combustion and excess decomposition, and the maximum storage moisture depends on the type of storage employed.
Moisture limits must be observed to avoid spontaneous combustion and the emission of regulated compounds. Cost of storage is important to the overall feasibility of the biomass enterprise. In some cases, the storage can be on the same site as the source of the feedstock. In others, necessary volumes can only be achieved by combining the feedstock from a number of relatively close sources. Typically, delivery within about 50 miles is economic, but longer range transport is sometimes acceptable, especially when disposal fees can be reduced.
Storage of biomass fuels is expensive and increases with capacity.
Agricultural residues such as wheat straw, rice husk, rice straw and corn stover are usually spread or windrowed behind the grain harvesters for later baling. Typically these residues are left in the field to air dry to moisture levels below about 14% preferred for bales in stacks or large piles of loose material. After collection, biomass may be stored in the open or protected from the elements by tarps or various structures. Biomass pelletization may be employed to increase bulk density and reduce storage and transport volume and cost.
Biomass Storage Options
Feedstock is hauled directly to the plant with no storage at the production site.
Feedstock is stored at the production site and then transported to the plant as needed.
Feedstock is stored at a collective storage facility and then transported to the plant from the intermediate storage location.
Biomass Storage Systems
The type of biomass storage system used at the production site, intermediate site, or plant can greatly affect the cost and the quality of the fuel. The most expensive storage systems, no doubt, are the most efficient in terms of maintaining the high fuel quality. Typical storage systems, ranked from highest cost to lowest cost, include:
Enclosed structure with crushed rock floor
Open structure with crushed rock floor
Reusable tarp on crushed rock
Outside unprotected on crushed rock
Outside unprotected on ground
The storage of biomass is often necessary due to its seasonal production versus the need to produce energy all year round. Therefore to provide a constant and regular supply of fuel for the plant requires either storage or multi-feedstocks to be used, both of which tend to add cost to the system.
Reducing the cost of handling and stable storage of biomass feedstocks are both critical to developing a sustainable infrastructure capable of supplying large quantities of biomass to biomass processing plants. Storage and handling of biomass fuels is expensive and increases with capacity. The most suitable type of fuel store for solid biomass fuel depends on space available and the physical characteristics of the fuel.
When disposing of small electrical items from the home, most householders only have the option of visiting their local recycling facility to drop them off. However, in order to meet recycling targets, local authorities in the UK are now considering kerbside (or curbside) collections of small domestic appliances. This is expected to help prevent small electrical items being placed into the general waste/refuse containers from households.
This waste stream has become a priority as figures show that the average amount of WEEE (waste electrical and electronic equipment) recycled per person is only 1.3kg. The original WEEE directive targeted 4kg per person, as a recycling rate, so there is a considerable shortfall. It is important that householders find it easy to recycle their items in order to increase the rates.
Initial trials have taken place to assess the viability of these kerbside collections and the following conclusions were made:
On collections, small electrical items were often damaged, so the reuse of items was less likely.
Levels of recycling were encouraging at 140 grams per household.
The monetary value of the separated materials of the small items showed that a positive net value could be achieved.
Whilst the potential reuse of small electrical items was reduced it was a positive that local authorities could generate revenues from the collections. Quarterly or bi-annual collection frequencies would ensure volumes of equipment on the collections were maximised. Due to the success of the trials, the UK is likely to see more and more local authorities adopt some form of collection schedule for small electrical waste items.
An old refrigerator uses almost four times the electricity of a new one
Larger electrical items such as washing machines and fridge freezers pose a different collection issue. Some local authorities offer a collection service for bulky electrical items, however due to their size, weight and manpower requirements there is often a charge. As with smaller electrical items, you can deliver these to the local recycling facility, but you may not be able to fit these into your own vehicle. It is best to check with the local recycling facility on the options available and possibly even if they allow large, commercial sized vehicles onto site.
The collection of small electrical items from householders will ultimately increase the amount of electrical waste being recycled in the UK. It will also further promote the recycling of such items instead of placing them into general waste containers. Going forward it is hoped that more local authorities will adopt a collection schedule even if only bi-annually from their local householders.
The business world is quite dynamic. You need to have a comprehensive understanding of how it operates. It’s essential to learn the process within and between an organization. Its where supply chain and logistics management comes in. It’s an exciting course that you can take online. Here are the top fascinating benefits of studying supply chain and logistics management.
1. Improve the organization’s profitability
There’re numerous job opportunities within supply chain management. Organizations are searching for individuals who can contribute to their financial success. They need someone who can analyze cost efficiencies, maintain proper inventory levels as well as decrease operating expenses
Working as a supply chain manager is beneficial as you get to do what you enjoy. You contribute to the company’s goal of increasing sales, infiltrating new markers as well as making a difference. It’s a chance to make the company gain a competitive advantage as well as increase shareholder value. Engaging in online management courses is the ideal way to prepare you for the responsibilities that lie ahead.
2. Logistics as well as decision making
Businesses continue to experience significant changes, and the global supply chain continues to become dated. Its causing businesses to keep struggling when they have to adapt to manufacturing location changes and using cost-effective techniques
Companies keep looking for individuals who have logistic management training. Its because these individuals can spot a complication. They then proceed to provide the best possible solution. It’s nice to study a course that is quite relevant to business dynamics.
3. Proper system implementation
Studying supply chain and logistics management is a suitable career investment. It enables you to work around the technology. You stand to benefit from implementing new technology into a company’s current operations. It is because these technological advancements minimize cost as well as streamline the processes.
Being a supply chain manager means you will be at the forefront of applying the best possible technology. You must undertake a course that will enable you to be part of the movers and shakers of the organization.
4. Keep up with challenges and trends
When you choose to study supply chain and logistics management, you get to know how to handle trends in the industry. It’s an excellent opportunity to deal with what clients want and calculating the company’s books.
It’s time to embrace new technology and spearhead it within an organization. You get to keep a close eye on each further advancement and offer excellent communication to clients, vendors, and the company. In the current world, you need to take a thrilling course that will enable you to stay relevant in the ever-changing business environment
The beauty of studying supply chain and logistics management is that there are plenty of job opportunities. You get to possess an educational background to work as an enterprise process engineer, an analyst as well as a scheduling manager. You can take up various online management courses to further your career. It’s a convenient time to enhance a company’s responsiveness, offer value to clients, develop networking resilience, and so much more.
For a society accustomed to the achievements of a linear economy, the transition to a circular economic system is a hard task even to contemplate. Although the changes needed may seem daunting, it is important to remember that we have already come a long way. However, the history of the waste hierarchy has taught that political perseverance and unity of approach are essential to achieving long term visions in supply chain management.
Looking back, it is helpful to view the significance of the Lansink’s Ladder in the light of the sustainability gains it has already instigated. From the outset, the Ladder encountered criticism, in part because the intuitive preference order it expresses is not (and has never been put forward as) scientifically rigorous. Opposition came from those who feared the hierarchy would impede economic growth and clash with an increasingly consumerist society. The business community expressed concerns about regulatory burdens and the cost of implementing change.
However, such criticism was not able to shake political support, either in Holland where the Ladder was adopted in the Dutch Environmental Protection Act of 1979, or subsequently across Europe, as the Waste Hierarchy was transposed into national legislation as a result of the revised Waste Framework Directive.
Prevention, reuse and recycling have become widely used words as awareness has increased that our industrial societies will eventually suffer a shortage of raw materials and energy. So, should we see the waste hierarchy as laying the first slabs of the long road to a circular economy? Or is the circular economy a radical new departure?
Positive and negative thinking
There have been two major transitionary periods in waste management: public health was the primary driver for the first, from roughly 1900 to 1960, in which waste removal was formalised as a means to avoid disease. The second gained momentum in the 1980s, when prevention, reuse and recovery came on the agenda. However, consolidation of the second transition has in turn revealed new drivers for a third. Although analysing drivers is always tricky – requiring a thorough study of causes and effects – a general indication is helpful for further discussion. Positive (+) and negative (-) drivers for a third transition may be:
(+) The development of material supply chain management through the combination of waste hierarchy thinking with cradle to cradle eco design;
(+) The need for sustainable energy solutions;
(+) Scarcity of raw materials necessary for technological innovation; and
(+) Progressive development of circular economy models, with increasing awareness of social, financial and economic barriers.
(-) Growth of the global economy, especially in China and India, and later in Africa;
(-) Continued growth in global travel;
(-) Rising energy demand, exceeding what can be produced from renewable energy sources and threatening further global warming;
(-) Biodiversity loss, causing a further ecological impoverishment; and
(-) Conservation of the principle of ownership, which hinders the development of the so-called ‘lease society’.
A clear steer
As the direction, scale and weight of these drivers are difficult to assess, it’s necessary to steer developments at all levels to a sustainable solution. The second transition taught that governmental control appears indispensable, and that regulation stimulates innovation so long as adequate space is left for industry and producers to develop their own means of satisfying their legislated responsibilities.
The European Waste Framework Directive has been one such stimulatory piece of legislation. Unfortunately, the EC has decided to withdraw its Circular Economy package, which would otherwise now be on track to deliver the additional innovation needed to achieve its goals – including higher recycling targets. Messrs. Juncker and Timmermans must now either bring forward the more ambitious legislation they have hinted at, or explain why they have abandoned the serious proposals of their predecessors.
Perhaps the major differences between Member States and other countries may require a preliminary two-speed policy, but any differences in timetable between Western Europe and other countries should not stand in the way of innovation, and differences of opinion between the European Parliament and the Commission must be removed for Europe to remain credible.
Governmental control requires clear rules and definitions, and for legislative terminology to be commensurate with policy objectives. One failing in this area is the use of the generic term ‘recovery’ to cover product reuse, recycling and incineration with energy recovery, which confuses the hierarchy’s preference order. The granting of R1 status to waste incineration plants, although understandable in terms of energy diversification, turns waste processors into energy producers benefiting from full ovens. Feeding these plants reduces the scope for recycling (e.g. plastics) and increases CO2 emissions. When relatively inefficient incinerators still appear to qualify for R1 status, it offers confusing policy signals for governments, investors and waste services providers alike.
The key role for government also is to set clear targets and create the space for producers and consumers to generate workable solutions. The waste hierarchy’s preference order is best served by transparent minimum standards, grouped around product reuse, material recycling or disposal by combustion. For designated product or material categories, multiple minimum standards are possible following preparation of the initial waste streams, which can be tightened as technological developments allow.
Where the rubber meets the road
As waste markets increase in scale, are liberalised, and come under international regulation, individual governmental control is diminished. These factors are currently playing out in the erratic prices of secondary commodities and the development of excess incinerator capacity in some nations that has brought about a rise in RDF exports from the UK and Italy. Governments, however, may make a virtue of the necessity of avoiding the minutiae: ecological policy is by definition long-term and requires a stable line; day to day control is an impossible and undesirable task.
The road to the third transition – towards a circular economy – requires a new mind-set from government that acknowledges and empowers individuals. Not only must we approach the issue from the bottom-up, but also from the side and above. Consumer behaviour must be steered by both ‘soft’ and ‘hard’ controls: through information and communication, because of the importance of psychological factors; but also through financial instruments, because both consumers and industry are clearly responsive to such stimuli.
Where we see opposition to deposit return schemes, it comes not from consumers but from industry, which fears the administrative and logistical burden. The business community must be convinced of the economic opportunities of innovation. Material supply chain management is a challenge for designers and producers, who nevertheless appreciate the benefits of product lifetime extensions and reuse. When attention to environmental risks seems to lapse – for example due to financial pressures or market failures – then politics must intervene.
Government and industry should therefore get a better grip on the under-developed positive drivers of the third transition, such as eco design, secondary materials policy, sustainable energy policy, and research and development in the areas of bio, info, and nanotechnologies.
Third time’s the charm
Good supply chain management stands or falls with the way in which producers and consumers contribute to the policies supported by government and society. In order that producers and consumers make good on this responsibility, government must first support their environmental awareness.
The interpretation of municipal duty of care determines options for waste collection, disposal and processing. Also essential is the way in which producer responsibility takes shape, and the government must provide a clear separation of private and public duties. Businesses may be liable for the negative aspects of unbridled growth and irresponsible actions. It is also important for optimal interaction with the European legislators: a worthy entry in Brussels is valuable because of the international aspects of the third transition. Finally, supply chain management involves the use of various policy tools, including:
Rewarding good behaviour
Sharpening minimum standards
Development and certification of CO2 tools
Formulation and implementation of end-of-waste criteria
Remediation of waste incineration with low energy efficiency
Restoration or maintenance of a fair landfill tax
Application of the combustion load set at zero
‘Seeing is believing’ is the motto of followers of the Apostle Thomas, who is chiefly remembered for his propensity for doubt. The call for visible examples is heard ever louder as more questions are raised around the feasibility of product renewal and the possibilities of a circular economy.
Ultimately, the third transition is inevitable as we face a future of scarcity of raw materials and energy. However, while the direction is clear, the tools to be employed and the speed of change remain uncertain. Disasters are unnecessary to allow the realisation of vital changes; huge leaps forward are possible so long as government – both national and international – and society rigorously follow the preference order of the waste hierarchy. Climbing Lansink’s Ladder remains vital to attaining a perspective from which we might judge the ways in which to make a circle of our linear economy.
Note: The article is being republished with the permission of our collaborative partner Isonomia. The original article can be found at this link.
Biomass exchange is emerging as a key factor in the progress of biomass energy sector. It is well-known that the supply chain management in any biomass project is a big management conundrum. The complexity deepens owing to the large number of stages which encompass the entire biomass value chain. It starts right from biomass resource harvesting and goes on to include biomass collection, processing, storage and eventually its transportation to the point of ultimate utilization.
Owing to the voluminous nature of the resource, its handling becomes a major issue since it requires bigger modes of biomass logistics, employment of a larger number of work-force and a better storage infrastructure, as compared to any other fuel or feedstock. Not only this their lower energy density characteristic, makes it inevitable for the resource to be first processed and then utilized for power generation to make for better economics.
All these problems call for a mechanism to strengthen the biomass value chain. This can be done by considering the following:
Assuring a readily available market for the resource providers or the producers
Assuring the project developers of a reliable chain and consistent feedstock availability
Awareness to the project developer of the resources in closest proximity to the plant site
Assurance to the project developer of the resource quality
Timely pick-up and drop of resource
Proper fuel preparation as per technology requirements
Removal of intermediaries involved in the process – to increase value for both, the producers as well as the buyers
No need for long term contracts (Not an obligation)
Competitive fuel prices
Assistance to producers in crop management
Biomass Exchange Model
The figure below gives a general understanding of how such a model could work, especially in the context of developing nations where the size of land holdings is usually small and the location of resources is scattered, making their procurement a highly uneconomic affair. This model is commonly known as Biomass Exchange
In such a model, the seed, fertilizer shops and other local village level commercial enterprises could be utilized as an outreach or marketing platform for such a service. Once the producer approves off the initial price estimate, as provided by these agencies, he could send a sample of the feedstock to the pre-deputed warehouses for a quality check.
These warehouses need to be organized at different levels according to the village hierarchy and depending on the size, cultivated area and local logistic options available in that region. On assessing the feedstock sample’s quality, these centers would release a plausible quote to the farmer after approving which, he would be asked to supply the feedstock.
On the other hand, an entity in need of the feedstock would approach the biomass exchange, where it would be appraised of the feedstock available in the region near its utilization point and made aware of the quantity and quality of the feedstock. The entity would then quote a price according to its suitability which would be relayed to the primary producer.
An agreement from both the sides would entail the placement of order and the feedstock’s subsequent processing and transportation to the buyer’s gate. The pricing mechanisms could be numerous ranging from, fixed (according to quality), bid-based or even market-driven.
The hurdles could be in the form of the initial resource assessment which could in itself be a tedious and time consuming exercise. Another roadblock could be in the form of engaging the resource producers with such a mechanism. Since these would usually involve rural landscapes, things could prove to be a little difficult in terms of implementation of initial capacity building measures and concept marketing.
The benefits of a biomass exchange are enumerated below:
Support to the ever increasing power needs of the country
Promotion of biomass energy technologies
Development of rural infrastructure
Increased opportunities for social and micro-entrepreneurship
Creation of direct and indirect job opportunities
Efficient utilization of biomass wastes
Potential of averting millions of tonnes of GHGs emissions
In India alone, there has been several cases where biomass power projects of the scale greater than 5 MW are on sale already, even with their power purchase agreements still in place. Such events necessitate the need to have a mechanism in place which would further seek the promotion of such technologies.
Biomass Exchange is an attractive solution to different problems afflicting biomass projects, at the same time providing the investors and entrepreneurs with a multi-million dollar opportunity. Although such a concept has been in existence in the developed world for a long time now, it has not witnessed many entrepreneurial ventures in developing nations where the need to strengthen the biomass supply chain becomes even more necessary.
However, one needs to be really careful while initiating such a model since it cannot be blindly copied from Western countries owing to entirely different land-ownership patterns, regional socio-political conditions and economic framework. With a strong backup and government support, such an idea could go a long way in strengthening the biomass supply chain, promotion of associated clean energy technologies and in making a significant dent in the present power scenario in the developing world.
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