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Terminals in bioenergy logistics

Author: Jouni Tuukkanen, Bio-erko

Edited By: Kishor Kumar Roy

Description of the technology

Bioenergy terminals enable flexible operation of bioenergy deliveries. Terminals are able to level consumption peaks, improve fuel quality, utilize HCT transports, reduce production and transport costs. In Finland the railway transport of wood fuel is very rare, while truck transport dominates in all wood fuel supplies. The terminal network in Finland is also significantly more scattered and focused around the most populated areas (Virkkunen & Raitila 2016). Energy and power plant reception is often very time-limited and their storage silos are usually up to 36h, which means that the terminals play a significant role in the security of fuel supply. Deliveries from the terminals are successful at the time of the thaw, and ensure a steady flow of fuel during possible vehicle failures.

 

Figure 1 Konnekuljetus HCT-truck, Metsä Group.

Description of the market

There are hundreds of bio-energy terminals of different sizes in Finland. Part of it is just bio-energy, and some are composite terminals where both wood and energy wood are stored. The Finnish terminal network consists of 202 terminals supplying annually 6.4 TWh of forest fuels (23 PJ at MC 50%) which is about 45% of all forest fuels delivered to power and heating plants (Sikanen L. et  al.) .Terminal sizes and infra vary greatly. At its smallest, the terminals are 0.5 ha gravel-based warehouse fields and, at its widest, multi-hectare covered production areas. The combined terminals will reduce terminal costs by about 14%. 

 

Figure 2 Southeast Finland's terminal network, Metsäteho

Wood terminals are provided by forest companies, other forest sector operators (eg forest management associations), power and heat plants, timber transport companies and actual wood terminal companies (which are also often sellers of wood, especially for energy wood). Terminals may have different functions depending on the purpose, size and infrastructure of the terminal. Terminals can be roughly divided into three categories;

1. Raw material storage terminal where only untreated forest energy and / or raw wood is stored.

2. A ready-to-use fuel storage terminal for storing ready-made forest energy (wood chips) or wood.

3. Fuel Production Terminal, where wood energy is chipped and / or crushed to store finished wood chips and wood.

Only terminal chips have a significant increase, from 2004 to 2016 the share of terminal pick-up has risen from about 10% to> 25%. Quantities stored on the roadside, but stored in the terminal as chips have not been nationally compiled.

 

Figure 3 Total forest chips production chains, Metsäteho.

Description of the policy measures

Finland is committed to increasing the amount of renewable raw materials used in energy production, which strongly supports the use of terminals. There are no financial support for terminals in Finland, but the terminal operator can get investment support to start a business. The licensing of terminal operations is very diverse in Finland. On the other hand, the activity does not require any separate permission and the other requires an environmental permit. Basically, setting up a bio-terminal required an environmental permit. Permission is granted either by the local municipal environmental authority or, in larger projects, by the ELY Center. In Finland, there are currently several projects facilitating the establishment of terminals aimed at guiding zoning and harmonizing licensing practices. The law on insect damage limits the construction of terminals in wooded areas.

Evaluation of the effect of this measures

At present, the establishment of a bio-terminal is costly and risky. Due to noise, traffic and possible dust and odor nuisance from terminals, the resistance of terminals in Finland is very high. Far from settlements and distracting neighbors, the terminals are constrained by the condition of the road infrastructure and the insect pest. Terminal projects have succeeded in influencing the regional plans by reserving areas for terminal operations and thus enabling the rapid passage of environmental permits. Changes in the total weight of road traffic and the increase in the load size have reduced the cost of transportation to terminals from the terminals and thus contributed to the profitability of terminals.

References

[CITED: 23.1.2019] http://www.metsateho.fi/wp-content/uploads/Raportti_242_Terminaalitoiminnot_energiatehokkassa_puutavaralogistiikassa_T3.pdf

[CITED: 23.1.2019] http://www.metsateho.fi/hct/

[CITED: 23.1.2019] http://www.metsateho.fi/terminaalit-tarkea-osa-puulogistiikkaa/

[CITED: 23.1.2019] http://www.metsateho.fi/terminaali-ja-kayttopaikkahaketus-kasvoivat/

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[CITED: 23.1.2019] http://www.metsateho.fi/wp-content/uploads/Tuloskalvosarja_2017_06_Metsahakkeen_tuotantoketjut_2016.pdf

[CITED: 23.1.2019] http://www.bioclus.eu/fi/files/BIOCLUS_workshop_10_11_2011_Risto_Impola.pdf

[CITED: 23.1.2019] https://www.vtt.fi/inf/julkaisut/muut/2011/VTT-R-08634-11.pdf

[CITED: 23.1.2019] https://www.metsakeskus.fi/bioterminaalit-ratkaisu-metsabiotalouden-logistiikkahaasteisiin-uudellamaalla

Virkkunen, M. & Raitila, J. 2016. Forest Fuel Supply Through the Terminal Network in Finland and Sweden. Conference paper. 24th European Biomass Conference and Exhibition. 6-9 June, 2016 Amsterdam. Proceedings: 17 – 22. DOI: 10.5071/24thEUBCE2016-1AO.1.5.

Sikanen L. et  al. Energy Biomass Supply Chain concepts Including Terminals, Copyright: Luonnonvarakeskus (Luke Julkaisija: Luonnonvarakeskus (Luke), Helsinki 2016 (http://bestfinalreport.fi/files/Energy%20Biomass%20Supply%20Chain%20Concepts%20Including%20Terminals.pdf)

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