The traditional way of handling biomass transport cost is to consider a constant cost compo­nent and a variable cost component (Kumar and Sokhansanj 2007) for the transport equip-

ment. For truck transport, the constant cost component is the cost of loading and unloading. The variable cost component is the “per km and per t” cost of trucking, accounting for fuel, depreciation, maintenance, and labor. The constant cost in case of rail transport includes the capital cost of rail siding, rail cars, and equipment for loading and unloading biomass. The variable cost includes the charges of the rail company that include capital recovery and maintenance for track and engines and fuel and operating costs. Table 7.6 summarizes the cost of transporting biomass using three modes of transport: truck, rail, and pipeline. The cost equation for pipeline was developed based on the data of Kumar et al. (2004).

Figure 7.7 compares the cost of transporting biomass using three modes of transport. For pipeline the annual capacity is assumed 1 million dry t. In this model, the transport cost in $/t for truck and rail does not change with capacity (in real situation, the size of contracts with transport companies affects the prices). Pipeline has the steepest cost curve because of the increased capital cost with distance.

Truck and rail costs intersect at about 110 km for the cost figures used in this analysis. It should be mentioned that the cost structures for rail are much more complicated than what is given in this analysis. In cases where a multi-mode transport is required, the cost structures will be a blend of two or three of these modes. At this point we would like to caution against over-generalization of equations in Table 7.6 and graphs in Figure 7.7. The cost of trucking,

rail, and even pipeline much depends upon available infrastructure, custom rates, road travel regulations and size of contracts.

Table 7.6 also lists estimates for energy consumption by truck, rail, and pipeline. The energy input for truck and for rail is 1.3 and 0.68MJ/t/km, respectively (Borjesson 1996; Kumar et al. 2006). The energy input for rail transport is 0.68MJ/t/km. It is assumed that diesel fuel is used for both truck and rail. The electrical power is assumed to be produced from a coal power plant; we assumed an electricity price of $0.06/kWh to convert from the cost ($) to energy (MJ) consumption for the pipeline.

Table 7.7 lists the minimum and maximum costs involved in biomass collection, prepro­cessing (pelleting), and transport. The delivered cost varies from a minimum of $46/t to more than $78/t. This cost does not include payment to farmers that might be around $10/t. The total energy input to the system ranges from a low of 1 to 1.5GJ/t. This amount of energy input is roughly from 6% to 10% of the total energy content of biomass (estimated at 16GJ/t).