2nd INTERNATIONAL CONFERENCE ON SUPPLY CHAINS A GIS-based Methodology for defining Biomass Potential and Facilities in Greece with the optimization of transportation cost Paliogiannis Grigorios1, Chondrocoukis Gregory2 1MSc in Logistics, University of Piraeus, Greece University of Piraeus, Greece 1paliogiannis.grigoris@gmail.com 2Professor, Abstract The aim of this study is the identification of the locations where biomass facilities can be established based on least logistics cost. For this purpose, a database which contains quantitative and spatial data about the agricultural residues of specific plants have been developed, in order to support the selection of the appropriate region that can facilitate biomass industries. This database is linked with a map that provides geographic information. The geographic information system (GIS) is used as a tool that contributes to the selection of the best location where biomass facilities can be established. The decision is made with the aid of CORINE LAND USE map which also identifies the topological, geological, etc features of each selected region that can facilitate the biomass plant. An algorithm calculates the transportation cost for each region of Greece. The cases of the location of a bio-refinery and a biomass power plant are examined and indicate the supply chain of biomass resources considering various feedstock types. The region that is selected in each scenario depends on the transportation cost of agricultural residues, which includes the cost of loading and unloading biomass and variable transportation costs. Keywords: Geographic information System (GIS), biomass logistics, agricultural residues, transportation cost, green logistics. 1. Introduction In Greece the total agricultural land reaches almost 4 million ha, of which 60% is arable land, 25% is cultivated land with trees and vines, 3% is garden area and 12% is fallow land (EUBIONET, 2003). Agricultural residues and specifically annually crop residues that remain in the field after the harvesting process can be consider as biomass resource. (CENTER FOR RENEABLE ENERGIES AND SAVING,2009). All these materials have a great potential to provide renewable energy and added value products, such as cosmetic ingredients, green surfactants, succinic acid, ethanol, fiber plants, etc. ( US Department of Energy, US Department of Agriculture, 2005, Biocore Summer School proceedings, 2011). Biomass to energy and biomass to products facilities located in a specific area are highly dependent on the spatial variation of the available biomass of the current prefecture as well as from the surrounding regions and the energy content and type of the harvested crops. A significant point is to obtain sufficient biomass quantities to meet the respective demand of the 2nd INTERNATIONAL CONFERENCE ON SUPPLY CHAINS specific capacity of the biomass plant at a minimum cost (Gnansounou, 2007). Geographic Information Systems (GIS) can be used as appropriate tools in order to create databases of the available biomass quantities, energy contents for each selected crop and total potential energy produced from biomass per prefecture. Moreover, they aid in decision-making processes about the sites of the facilities and the presentation of the best-fit region on map, (Perpina C et al, 2008). In this study, logistics cost is estimated as constitutes a key component during the decision making process in the cases of the establishment of biomass facilities. Logistics cost represents the cost of moving the feedstock or raw materials from the location where they are produced to the location where biomass plant facility is established and this cost is a factor that affects primarily the location of biomass plants (Flynn, 2007). The transportation costs of biomass for each Greek prefecture that can be considered both as a supply and a demand location/point of biomass is estimated and also this study makes clear that the selection of the appropriate location is highly affected by the regional and the surrounding areas biomass availability and the corresponding transportation cost. Also, GIS based applications enrich the decision factors, adding potential constraints such as wetlands, lakes, protected areas, road ways and residential areas. 2. Methodology In this study a series of steps that constitute the methodology are applied in order to estimate the prefecture with the minimum transportation cost where biomass facilities can be established. For this purpose, the transportation cost of the feedstock is calculated in order to meet the demand of a biomass facility with a particular capacity. This procedure is repeated for all the candidate prefectures in Greece and finally the region with the minimum transportation cost is selected as the appropriate location. The two main scenarios of the establishment of biomass facilities are presented: Best Location according to transportation costs for a Biorefinery, which has a 750 thousand tones annual capacity of biomass as feedstock. Best Location according to transportation costs for a Biomass Energy Plant with nominal power capacity of 40MW. In the first steps, data for the quantities of specific agricultural residues (biomass) for each region of Greece (the selected agricultural residues are wheat, barley, oats, maize, rice, tobacco, cotton, sunflower and sugar beets) are collected. A GIS tool is used for the creation of relational databases about the available biomass and the potential energy content of each prefecture of Greece and to generate thematic maps, making clear the regions with the greatest biomass potential. Then an equation of the total transportation cost, that consists of two parts, the fixed and variable cost, is used in order to assist the decision of the location of the plants. 2nd INTERNATIONAL CONFERENCE ON SUPPLY CHAINS Finally, the supply network of biomass quantities (transported to the selected prefecture/location from the surrounding prefectures) that are used as feedstocks in biomass facilities is illustrated in the map of Greece for each scenario. More specifically, according to the methodological approach presented below (Figure 1), the selection of the location with the minimum transportation cost consists of several steps that include data acquisition for biomass quantities and crop characteristics (e.g. availability for energy production, heating value, product-to-residue ratio) and the estimation of the potential energy content biomass per prefecture. In the next steps, the transportation cost of the feedstock is calculated in order to meet the demand of a biomass facility with a particular capacity. This calculation procedure is repeated for all the candidate prefectures and finally the region with the minimum transportation cost is selected as the appropriate location. Figure 1. Methodology diagram of the study Agriculture Statistics of Greece Production of specific Agricultural Plants Product to Residue Ratios per Plant Theoretical Biomass Potential Availability percentages for each residue Available Biomass -Heating Value (MJ/tn) -Moisture Content -Distances (km) -Transportation Cost Equation -Mainland Storage Locations -Mass or Energy Demand GIS Databases and Thematic Maps Potential Energy Content Calculation of Transportation Costs of residues Region with minimum transporting cost Corine Land Use Identification of best location As presented above (Figure 1) data are collected first including the tonnage of a group of selected crops (wheat, barley, oats, maize, rice, tobacco, cotton, sunflower and sugar beets) (Agriculture Statistics of Greece, 2010). Then using the Product to Residue Ratio coefficients per plant, available in literature for Greek crops and the availability coefficients of the residues (Apostolakis, 1987), it is possible to calculate the available biomass from the agricultural residues as follows: 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 (𝑡𝑛) 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝐵𝑖𝑜𝑚𝑎𝑠𝑠(𝑡𝑛) = 𝑃𝑟𝑜𝑑𝑢𝑐𝑡 𝑡𝑜 𝑅𝑒𝑠𝑖𝑑𝑢𝑒 𝑅𝑎𝑡𝑖𝑜 ∙ 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑖𝑙𝑖𝑡𝑦(%) (Equation 1) After these steps, MapInfo databases and thematic maps can be created to assist a preliminary stage of decision making (figure 2). It is also possible to calculate and present in MapInfo the potential energy produced from these 2nd INTERNATIONAL CONFERENCE ON SUPPLY CHAINS crop residues using the following table of Lower Heating Values (LHV - MJ/kg) as presented in Table 1 . Table 1.Lower Heating Values (LHV - MJ/kg) and Product to Residue Ratios (PRR) of plants. Types of Residues LHV (MJ/kg) PRR wheat straw 15,0 1,0 barley 11,4 1,2 oats 14,8 1,3 maize cobs 12,1 1,4 rice 14,1 1,0 Tobacco 13,5 0,9 Cotton 15,6 0,2 Sunflower 22,4 0,5 Sugarbeets 12,0 2,5 Figure 2. Thematic Map illustrating the total potential of the agricultural residues that have been selected (wheat, barley, oats, maize, rice, tobacco, cotton, sunflower and sugar beets). From a logistics point of view, only 39 regions of the of the mainland of Greece out of 54 were used in this study because the other represent urban regions with commercial and industrial facilities in their great percentage. The cost of transportation TCi from each region j to each candidate destination i point is the sum of the Total Fixed Cost and the Total Variable Cost respectively as shown in the following equation: N TC i (Euro) Cost Fixed Number of Trips i, j Cost Variable d i, j (Equation 2) j1 where, the Total Fixed Cost is a function of the Number of Trips, which is calculated by the available biomass quantity of each region j that is transported to the candidate region i, divided by the capacity of a truck (it is 2nd INTERNATIONAL CONFERENCE ON SUPPLY CHAINS assumed only one mode of transport, trucks, with capacity equal to 15 tones) 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒𝐵𝑖𝑜𝑚𝑎𝑠𝑠(𝑡𝑛) 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑇𝑟𝑖𝑝𝑠 (𝑎𝑛𝑛𝑢𝑎𝑙𝑙𝑦) = (Equation 3). 15 𝑡𝑛/𝑡𝑟𝑢𝑐𝑘 This variable is multiplied with the factor CostFixed that represents the cost of compacting, loading and unloading of biomass and its value is assumed equal to 154 €/trip based on literature data. The Total Variable Cost depends on the distance travelled to haul biomass from the regions j to the candidate region i, thus distance is multiplied with the driver’s and fuel’s cost CostFixed , and the value of this parameter was set equal to 2.05 (€/km) (literature data). The distances di,j between each destination point and the other regions, were obtained using the digital map CORINE for land use. In order to calculate the distances among the regions, the centroids of the total agricultural area of each prefecture was indentified. Centroids were assumed to represent a potential place for the storage of residues and finally a biomass processing facility. In each scenario the data used are the following: A 39x39 table of distances between the regions of mainland A 1x9 table of lower heating values of each type of residue A 39x9 table of available biomass A 39x9 table of available energy Α 39x1 table of the names of counties and their state ID (accordingly to the Hellenic Statistical Authority) 3. Analysis of Scenarios The algorithms that calculate the total transportation cost of each region was developed in MATLAB The solution of the algorithm for the selection of the ideal location with the minimum transportation cost varies according to: the kind of the biomass facility (biorefinery/power plant), the demand and the supply of biomass quantities for each facility and the set of assumptions related to the type of the feedstock supplied in each case. During the calculation procedure the algorithm sorts the matrix of distances so that for each candidate region the selected types of biomass residues are transported first by the nearest regions. 3.1 Scenario 1. The Biorefinery Case Study 3.1.1 Description This scenario aims at the identification of the best logistically location for the construction of a biorefinery facility. Biorefineries convert biomass into added value products and the provided feedstock to a biorefinery is assumed to be in this study almost 2,000 tones daily or equally 750,000 tons annually. In this case an assumption is set to the types of residues that are going to be hauled. The feedstock of the biorefinery can be only sugar beet leaves and cotton stalks. 2nd INTERNATIONAL CONFERENCE ON SUPPLY CHAINS 3.1.2 Algorithm analysis In the “biorefinery case” priority is given to sugar beets and then to cotton residues. The transported amount is set 750,000 tons. The bubbleSort function is used in order to sort the distances of the 39 candidate regions of Greek mainland. Then the transportation cost is calculated for each candidate region (fixed cost) and the regions which provide it with biomass (fixed and variable costs) are selected. For every candidate region the algorithm is valid only when there sugar beets or cotton residues are existing or till the sum of the quantity in the region and those that send biomass has reached the goal of transporting amount. The algorithm is presented on figure 3. Figure 3. The Biorefinery Case algorithm For i = 1,39 Transferred Biomass ≤ 750,000 tn For Candidate region i Sugar beet and cotton residues trips Fixed Transportation Cost calculation For sending region j=2,39 For minimum distance Sugar beet and cotton residues trips Total Transportation Cost Calculation Total Biomass ≤ NO 750,000 tn Selection of the region with the minimum TC 3.2 Scenario 2. Biomass Power Plant 3.2.1 Description The aim of the second scenario is to identify the best location for a biomass power plant with nominal installed power 40MW annually. The power plant will have as input residues of wheat, oats, barley, maize, rice, sunflower and tobacco. The algorithm has many similarities as the previous one. A data file including all the combination of distances, the quantities of biomass and the names of the regions is loaded. Priority now is given to the types of residues with high LHV (MJ/kg); for that reason bubbleSort function is used to sort the species of biomass according to their energy content. Each evaluated region along with the regions that provide biomass to the power plant must collect the energy that applies to a 40MW installation. The 2nd INTERNATIONAL CONFERENCE ON SUPPLY CHAINS suitable location achieves the energy target at the minimum transportation cost. 3.3 Results 3.3.1 The bio-refinery Case The solution indicates the best location of a bio-refinery which converts only sugar beets and cotton residues, is the region of Larissa (P1) (Figure 4.1). The black lines represent the connection of the plant with 5 other regions (The prefectures of Larisa, Karditsa, Magnesia, Trikala, Pieria and Fthiotis will provide the biorefinery with sugar beets and cotton residues) of Greece which also will provide the plant with feedstock at a cost of 10.2 €/tn. The red stars represent the centroids of the agricultural areas studied and we assume that they can also be locations where biomass residues (irrespective of their type) can be in periods collected and stored. This solution could be acceptable not only for the minimum logistics cost, but also for the agriculture development that holds for years; for that reason it would be an acceptable solution. Figure 4. 1. The solution for the ideal location of a biorefinery which converts only sugar beets and cotton residues, in Larissa 2. The region of Pieria is the best fit location, where a biomass power plant (40MW) can be constructed. 2nd INTERNATIONAL CONFERENCE ON SUPPLY CHAINS 3.3.2 The power plant case The region of Pieria (P2) is proposed as the best location according to the results of the algorithm, where a biomass power plant (40MW) can be constructed (Figure 4.2). The supply chain of the biomass power plant includes 10 regions (Pieria, Thessaloniki, Pella, Imathia, Larisa, Kilkis, Kozani, Chalcidice, Magnesia, Serres and Karditsa) and the transportation cost is calculated equal to 7.99 €/tn. The power plant have as input residues wheat, oats, barley, maize, rice, sunflower and tobacco. The topological and geographical characteristics of this region (there is a river and water can be withdrawn for cooling processes) may facilitate the construction of a biomass power plant. 4. Conclusions This study presents some proposals about the construction of biomass facilities based on the least transportation cost of crop residues following a logistics approach. The construction of a bio-refinery and the construction of biomass power plant of 40 MW installed power were examined. The appropriate location and the supply chain of the agricultural residues were defined for each kind of facility, according to the transportation cost, taking into account the biomass production of each prefecture, the distances of each candidate location from the various storage locations and the energy content of each type of residue. The Geographic Information Systems provide a significant help in decision making about the establishment of biomass-processing facilities. The data about agricultural residues can be collected in databases which are related to maps providing geographical information (longitude and latitude). Also, maps such as CORINE can be edited with queries in order to conclude whether a suggested by the algorithm location has morphological, geological and other features that can support the construction of a biomass facility. The region of Larisa seems to be the location for the establishment of a biorefinery. This place has the minimum cost of feedstock transportation from the other 5 regions. On the other hand, when considering the construction of a biomass power plant (40MW), the region of Pieria is the ideal location combining both the minimum transportation cost. The decision-making process of the establishment of biomass facilities should take into account many different and multiple parameters. Except for the transportation cost of raw materials, some other parameters should be taken into account like production costs, investment cost and the topological/geographical features and constraints of the candidate location. References EUBIONET(2003), “Biomass survey in Europe, Country report in Greece”, pp. 3-9. US Department of Energy, US Department of Agriculture (2005), “Biomass as feedstock for a Bioenergy and Bioproducts Industry” pp.18-22 2nd INTERNATIONAL CONFERENCE ON SUPPLY CHAINS BIOCORE Summer School Proceedings, 2011 CENTER FOR RENEABLE ENERGIES AND SAVING (2009), Biomass Guide, pp. 35. Perpina C., Alfonso D., Navarro A., Cardenas R. (2008), “Methodology based on Geographic Information Systems for biomass logistics and transport optimization” pp. 555-565 Flynn P., Searcy E., Ghafoori E., Kumar A. (2007), “The Relative Cost of Biomass Energy Transport”, Vol.136-140,pp. 639-650 Gnansounou E., Panichelli L. (2007), “GIS-based approach for defining bioenergy facilities location: A case study in Northern Spain based on marginal delivery costs and resources competition between facilities”, Vol.32, pp.289-300 Agriculture Statistics of Greece, 2010 Apostolakis M., Kiritsis S., Shutter C. (1987), “Biomass Energy Potential of Agricultural and Forestry by-products”, pp.49-77 Fiorese G., Guariso G., (2009), “A GIS-based approach to evaluate biomass potential from energy crops at regional scale” pp. 2-11