Abstract
The use of biomass for electricity and heat is increasing in various industries as a means of avoiding carbon dioxide emissions from fossil fuel. Although several studies have focused on the economic, environmental, and technological aspects of biomass production and consumption, the biomass application in mining industry is an area which is rarely explored. This study investigates the logistics of supplying wood and agricultural pellets as a source of heat generation a potash mine site. A Discrete Event Simulation (DES) model is created to address the complexity and variation in logistics of biomass supply based on Integrated Biomass Supply Analysis and Logistics (IBSAL) model. This model evaluates the cost, and carbon emissions of woody and agricultural biomass delivery from the logistics perspective.
The simulation models the delivery of biomass to a potash mine in Saskatoon, Saskatchewan, Canada. This potash mine plant is focused on sustainability and reducing GHG emissions. The heat consumption in the first phase of potash production project is 2560 TJ/year which is provided by burning natural gas. The results showed that the wood and agricultural pellets requirements to supply heat demand is 183,000 tonnes, and 194,000 tonnes/year, respectively. Three scenarios were explored in this study to find the most economic pathway to deliver biomass to this facility including using the existing wood pellet supply from British Columbia, wood pellet supply from Alberta, and the agricultural pellets produced in Saskatchewan
The average wood pellet price transported from pellet plants to the potash mine site is estimated to be CAD 200/tonne. This price is 45% less expensive than the average recent price of agriculture pellets (CAD 290/tonne) at the same location. The weighted average costs of rail transportation of wood pellets from BC, and AB to the potash mine plant are approximately CAD 53.75 and CAD 25.55 per dry tonne, respectively. The inter-provincial agricultural biomass supply chain is verified using an integration of an interactive mapping application (BIMAT). As a result, the agriculture biomass could be provided in the 7700 km2 area surrounding the Potash mine site by 50% participation rate of the agricultural biomass inventory. Transportation cost and price of wood pellets and agricultural biomass are estimated and compared against the recent cost and price of natural gas in Canada. The potential GHG emissions reduction by switching from natural gas to biomass is estimated as well.