Biomass Supply and Trade Opportunities of Preprocessed Biomass for Power Generation

International trade of solid biomass is expected to increase significantly given the global distribution of biomass resources and anticipated expansion of bioenergy deployment in key global power markets. Given the unique characteristics of biomass, its long-distance trade requires optimized logistics to facilitate competitive delivery value chains. Preprocessing biomass via pelletizing, torrefaction, and hydrothermal carbonization potentially improves bioenergy supply economics as illustrated by two case studies in this chapter. The case studies presented in this chapter compare woody and herbaceous biomass value chains and demonstrate that it is feasible and desirable in current conditions to establish large-scale conversion plants close to mature electricity markets and source preprocessed biomass from the international market. In the short term, conventional pellets are expected to play an important role as the internationally traded solid biomass commodity and feedstock in biopower production. In the near future, torrefied pellets may become the dominant and preferred internationally traded solid biomass commodity as the technology is commercialized. Hydrothermal carbonization technology is also still under development, but has the potential to unlock additional feedstock from wet biomass streams. Successful deployment of these technologies is expected to improve bioenergy supply chains in terms of costs and greenhouse gas impacts. Local bioenergy markets are also expected to develop, and provide localized opportunities for local biomass production and use. Utilization of herbaceous biomass and agricultural residues for power production is a promising option, but its application in cofiring is yet to be proven on a wide commercial scale. The analysis of agricultural residue mobilization in South Africa demonstrates that preprocessing also plays a major role in improving biomass delivery costs and subsequent electricity generation costs in local markets.