Cost Analysis of Crop Residue Supplies

Abstract:

Supply cost of crop residues for power plants was analysed. The supply chain includes five sub-processes, i.e. field collection, transportation, handling, pretreatment and storage. Five supply patterns were set up based on the differences in sub-processes, including bulk material pattern, centralized-storage chopping pattern, distributed-storage chopping pattern, baling pattern and pelleting pattern. The results show that, under specific conditions, the cost of the pelleting pattern is always the highest due to its high pelleting cost, followed by the baling pattern, the distributed-storage chopping pattern, and the centralized-storage chopping pattern in sequence. The bulk material pattern takes priority over the other three patterns when transportation distance is smaller than 69km, 28km and 16km respectively. The baling pattern needs improving since the cost reduction in transportation process can not effectively offset the cost increase in baling and handling processes. For all patterns except pelleting, purchase cost accounted for the largest proportion, followed by transportation cost and field collection cost.