Cost analysis of a satellite terminal for forest fuel supply in Finland

Matti Virkkunen, Jyrki Raitila (Corresponding Author), Olli-Jussi Korpinen

Research output: Contribution to journalArticleScientificpeer-review

7 Citations (Scopus)

Abstract

As forest fuel demand increases, new logistical solutions are needed. Most of the increase in use is expected to take place in large heat and power (CHP) production units which set special requirements for the supply as both procurement volumes and transport distances increase. Biomass fuel terminals broaden the spectrum of available supply options by offering cost-effective large-scale biomass storage and processing options for securing the fuel supply in all conditions. This study aimed to study different costs of a satellite terminal and to produce important concept and cost information for developing forest fuel logistics based on future terminals. The figures indicate that terminals do not create direct cost benefits per se: direct supply chains are more economical compared to supply through terminals. However, there are several indirect benefits that can be reached via fuel supply through terminals: regional fuel procurement can be widened to a national scale, security of supply increases through easily available storages, large supply volumes can be delivered by an individual operator, prices remain more stable and a more even quality of delivered fuel can be achieved.
Original languageEnglish
Pages (from-to)175-182
JournalScandinavian Journal of Forest Research
Volume31
Issue number2
DOIs
Publication statusPublished - 2016
MoE publication typeA1 Journal article-refereed

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fuels (fire ecology)
cost analysis
Finland
cost
biomass
supply chain
biofuels
logistics
heat

Keywords

  • biomass terminal
  • satellite terminal
  • forest fuel supply
  • cost analysis

Cite this

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title = "Cost analysis of a satellite terminal for forest fuel supply in Finland",
abstract = "As forest fuel demand increases, new logistical solutions are needed. Most of the increase in use is expected to take place in large heat and power (CHP) production units which set special requirements for the supply as both procurement volumes and transport distances increase. Biomass fuel terminals broaden the spectrum of available supply options by offering cost-effective large-scale biomass storage and processing options for securing the fuel supply in all conditions. This study aimed to study different costs of a satellite terminal and to produce important concept and cost information for developing forest fuel logistics based on future terminals. The figures indicate that terminals do not create direct cost benefits per se: direct supply chains are more economical compared to supply through terminals. However, there are several indirect benefits that can be reached via fuel supply through terminals: regional fuel procurement can be widened to a national scale, security of supply increases through easily available storages, large supply volumes can be delivered by an individual operator, prices remain more stable and a more even quality of delivered fuel can be achieved.",
keywords = "biomass terminal, satellite terminal, forest fuel supply, cost analysis",
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journal = "Scandinavian Journal of Forest Research",
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Cost analysis of a satellite terminal for forest fuel supply in Finland. / Virkkunen, Matti; Raitila, Jyrki (Corresponding Author); Korpinen, Olli-Jussi.

In: Scandinavian Journal of Forest Research, Vol. 31, No. 2, 2016, p. 175-182.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Cost analysis of a satellite terminal for forest fuel supply in Finland

AU - Virkkunen, Matti

AU - Raitila, Jyrki

AU - Korpinen, Olli-Jussi

PY - 2016

Y1 - 2016

N2 - As forest fuel demand increases, new logistical solutions are needed. Most of the increase in use is expected to take place in large heat and power (CHP) production units which set special requirements for the supply as both procurement volumes and transport distances increase. Biomass fuel terminals broaden the spectrum of available supply options by offering cost-effective large-scale biomass storage and processing options for securing the fuel supply in all conditions. This study aimed to study different costs of a satellite terminal and to produce important concept and cost information for developing forest fuel logistics based on future terminals. The figures indicate that terminals do not create direct cost benefits per se: direct supply chains are more economical compared to supply through terminals. However, there are several indirect benefits that can be reached via fuel supply through terminals: regional fuel procurement can be widened to a national scale, security of supply increases through easily available storages, large supply volumes can be delivered by an individual operator, prices remain more stable and a more even quality of delivered fuel can be achieved.

AB - As forest fuel demand increases, new logistical solutions are needed. Most of the increase in use is expected to take place in large heat and power (CHP) production units which set special requirements for the supply as both procurement volumes and transport distances increase. Biomass fuel terminals broaden the spectrum of available supply options by offering cost-effective large-scale biomass storage and processing options for securing the fuel supply in all conditions. This study aimed to study different costs of a satellite terminal and to produce important concept and cost information for developing forest fuel logistics based on future terminals. The figures indicate that terminals do not create direct cost benefits per se: direct supply chains are more economical compared to supply through terminals. However, there are several indirect benefits that can be reached via fuel supply through terminals: regional fuel procurement can be widened to a national scale, security of supply increases through easily available storages, large supply volumes can be delivered by an individual operator, prices remain more stable and a more even quality of delivered fuel can be achieved.

KW - biomass terminal

KW - satellite terminal

KW - forest fuel supply

KW - cost analysis

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JO - Scandinavian Journal of Forest Research

JF - Scandinavian Journal of Forest Research

SN - 0282-7581

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ER -