A supply chain management approach is applicable to biomass to bioenergy con­version processes. The value chain approach allows sustainable linkages between individual solutions in the value chain such as the availability of resources in time and space and transport and conversion techniques to a sustainable con­cept (Fig. 1.5). As a result the value chain approach provides the basis for the comprehensive analysis of the economic and ecologic consequences of bioenergy production from wood.

The value chain illustrated in Fig. 1.5 shows the bioenergy concept of supply chain management. In this case the chain is initiated with the assessment of the current and future availability of a resource. It goes on to include sound sustainable resource management to maintain production, harvesting and logistics planning and ends with characterisation of biomass and processing. Undelaying the value chain are aspects concerning economic sustainability, socio-economic considerations and environmental impact assessments at both local and global levels (Fig. 1.6).

Global ecologic
impacts
life cycle
assessment

Fig. 1.5 Value chain approach for sustainable biomass production systems

potentially

available

sustainably

available

Fig. 1.6 Different constraints for the availability of biomass

In cases where the total supply chain is not taken into account with its technical, environmental and socio-economic constraints in the planning of bioenergy projects the available resource is frequently overestimated. Another challenge to the system is the choice of the conversion processes to match the biomass supply in particular to ensure efficient utilisation of biomass for an end-purpose in mind. Most conversion plants entail large capital investment and stationary biomass is sensitive to transport
costs. As such spatial resource localisation planning is a priority at the entry point to any bioenergy project to ensure sustained fuel supply.

The choice of the best method to convert the available biomass and the scale of the operation are often decisive for the success of a project and depend on available biomass. This biomass may be different from region to region as regards quantity and quality. In addition forest based biomass may only be one part of a larger initiative to feed a bioenergy plant. On the other hand the scale of the biomass processing plant is also relevant and must be matched to the potentially available biomass. Another factor to take into account is current and future market segmentation. This concerns more traditional markets for biomass in terms of pulp and paper or particle board, which may inhibit local wood markets.

Ensuring sustainable use of woody biomass for bioenergy strongly relies on a value-chain approach to supply solutions. It is clear from the above that any bioenergy project must involve a multidisciplinary approach from remote sensing and growth and yield modelling to ascertain the extent of the resource; silviculture in terms of biological production; forest engineering and logistics to make the biomass in question available and delivered; environmental aspects and maintenance of biodiversity; socio-economics to consider communities and the financial viability and process engineering for the development of the envisaged products, and finally all relevant step analysed through a life cycle assessment of the system.