Inherent Economics of Truck and Pipeline Transport

Truck delivery of material has a fixed cost associated with the time required to load and unload the truck, and a variable cost that is related to the time the truck is being driven and/or the distance driven. For most biomass delivery applications, truck speed is relatively constant over the route; thus, e. g., a truck picking up straw would average about 80 km/hr on rural and district roads, and a truck picking up wood chips in a forest would average about 50 km/h on logging roads. Only if the wood chips required a significant drive over highways would there be a second higher speed portion of the trip; this effect is ignored here. Figure 1 shows cost data per kilometer for truck transport of wood chips in a typical western Cana­dian setting ([3]; D. Evashiak, personal communication, 3/03); the intercept of the lines is the fixed cost of loading and unloading, and the slope is the incremental variable cost per kilometer. Table 1 provides the equations for transport costs, including straw (1). Figure 1 is adjusted to dry tonnes of biomass to make a comparison of pipeline costs easier; pipeline costs are discussed later. Typical field moisture levels for straw and wood in western Canada are 16 and 50%, respectively. The range of costs for truck transport of wood chips comes from two different types of estimate: the lower bound is from a Forest Engineering Research Institute of Canada (FERIC) study of chip transport costs from a long-term dedicated fleet, and the upper bound is based on current short-term contract hauling rates. The FERIC data are more representative of steady biomass supply to a long-term end use such as a power plant. Note that there is no change in cost with scale for any

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Fig. 1. (A) Pipeline transport cost of wood chips without carrier fluid return pipe­line. (B) Pipeline transport cost of wood chips with carrier fluid return pipeline.

biomass application of interest; that is, the amount of biomass moved fully utilizes multiple trucks and no savings occur with larger throughput.

Pipeline transport of wood chips was studied in the 1960. Brebner (4), Elliott (5), and Wasp et al. (6) examined solids carrying capacity and pres­sure losses, and Wasp et al. (6) did a cost analysis for a 160-km pipeline with one-way transport, i. e., no water return. These studies were focused on the supply of wood chips to pulp mills, and hence water uptake by chips did not have a downstream processing impact. More recently Hunt (7) did an extensive analysis of friction factors in wood chip slurries in water; in the present work, we utilize his formula for the friction factor.

Formulae for Truck and Pipeline Costs as Function of Distance

Cases

Cost

($/dry t)a

Distance between slurry pumping stations (km)

Two-way pipeline transport cost of water wood chip slurry

2 million dry t/yr capacity

0.1023d + 1.47

51

1 million dry t/yr capacity

0.1355d + 2.65

44

0.5 million dry t/yr capacity

0.1858d + 4.80

36

0.25 million dry t/yr capacity

0.2571d + 9.05

29

One-way pipeline transport cost of water wood chip slurry

2 million dry t/yr capacity

0.0630d + 1.50

51

1 million dry t/yr capacity

0.0819d + 2.63

44

0.5 million dry t/yr capacity

0.1088d + 4.80

36

0.25 million dry t/yr capacity

0.1473d + 9.07

29

Truck transport cost of wood chips (50% moisture)

FERIC (long-term hauling)

0.1114d + 4.98

Short-term contract hauling

0.1542d + 3.81

Truck transport cost of straw (16% moisture)

0.1309d + 4.76

a d, the distance in kilometers.

More recently, Liu et al. (8) completed an analysis of two-phase pipelining of coal logs (compressed coal cylinders) by pipeline. In the present article, we draw on the work of Wasp et al. (6), Liu et al. (8), and discussions with a Canadian engineering contractor (D. Williams, personal communica­tion, 3/03) to develop pipeline cost estimates for transporting water slur­ries of wood chips; these costs are also shown in Fig. 1 and Table 1.

Delivery of material by slurry pipeline has a cost structure similar to that for truck transport. The fixed cost is associated with the investment in the material receiving and slurrying equipment at the pipeline inlet, and the separation and material transport equipment at the terminus. The slope of the curve comes from the operating cost of pumping, and the recovery of the incremental capital investment in the pipeline and booster pumping stations plus associated infrastructure such as power and road access, all of which increase linearly with distance. Technically, pipeline costs would have a slight "sawtooth" shape, with a slight, discrete increase in overall cost occurring when an additional pumping station is required. Practically, most of the incremental capital cost is in the pipeline rather than pumping stations, and the sawtooth effect can be ignored. (In our analysis, the pipe­line component of the total capital cost is 85% at 50 km, and 94% at 500 km.)

One key element in the pipeline scope and estimate is whether a return line for the carrying fluid is provided. This would be required in virtually

Capital Costs for Inlet, Outlet, and Booster Station Facilities"

Item

Cost ($ 1000)

Remark

Inlet facilities

Land for inlet facility

19.7

Estimated

Access roads

39.9

(15)

Conveyor belt

245.3

(16)

Mixing tank (water and chips)

61.3

(16)

Piping

405.1

(8)

Foundation for pump area

100.0

Estimated

Storage tank for water

769.3

(16)

Auxiliary pump (with one redundant pump)

137.1

(8)

Power supply line and substation

400.0

Estimated

Communication lines

40.0

Estimated

Building

236.8

Estimated

Road along pipeline

266.0

(15)

Fire suppression system

65.8

Estimated

Mobile stacker for dead storage

100.0

Estimated

Main pump for transport of wood chips and water mixture 2678.8

(8)

Pipeline for transport of wood chips to plant

58,863.9

(8)

Total capital cost at inlet

64,429.0

Outlet facilities

Building

236.8

Estimated

HVAC system to blow air

48.6

(16)

Conveyor belt

490.6

(16)

Filtration tank

3.4

(16)

Water intake tank

769.3

(16)

Water supply lines from water source

42.6

(8)

Auxiliary pump (with one redundant pump)

137.1

(8)

Main pump for water return

2262.3

(8)

Return water pipeline

41,897.2

Estimated

Total capital cost at outlet

45,887.9

Booster station facilities

Substation

400.0

Estimated

Booster pump for mixture

1283.0

(8)

Booster pump for water

1017.5

(8)

Building

19.7

Estimated

Access roads

4.0

(15)

Land

0.7

Estimated

Foundation for pump area

100.0

Estimated

Total capital cost at booster station

2824.9

" Two-way pipeline, 819 mm of slurry, 606 mm of water, 2 million dry t/yr, 104 km.

all circumstances if the carrying fluid were a hydrocarbon (e. g., oil) and would be required for water if upstream sources were not available, as might occur in a forest cut area, or if downstream discharge of separated water were prohibited. Tables 2—4 show the scope and cost estimate included in a two-way pipeline (i. e., one with return of the carrier fluid).

Table 3

O/M Cost for Inlet, Outlet and Booster Station Facilities"

Item

Cost ($ 1000) Remark

Inlet facilities

Electricity

1775.9

Maintenance cost

423.0

Salary and wages

1080.0 4 per shift

Total O/M at inlet Outlet facilities

3278.9

Electricity

1448.0

Maintenance cost

331.1

Salary and wages

540.0 2 per shift

Total O/M at outlet

2319.1

Booster station

Electricity

2627.7

Maintenance cost

38.5

Total O/M at booster station

2666.2

" Two-way pipeline, 819 mm of slurry, 606 yr, 104 km.

mm of water, 2 million dry t/

Table 4

General Economic and Technical Parameters

Item

Values

Life of pipeline

30 yr

Contingency cost

20% of total cost

Engineering cost

10% of total capital cost

Discount rate

10%

Operating factor

0.85

Power cost

$50/MWh

Velocity of slurry

1.5 m/s

Velocity of water in water return pipeline

2.0 m/s

Maximum pressure

4100 kPa

Pump efficiency

Scale factor applied to inlet, outlet, and booster

80%

station facilities excluding pumps

0.75

Key elements at the upstream end are materials receiving from trucks, dead and live storage, slurrying, and pipeline initial pumps. Key elements along the pipeline are the slurry and return pipeline and booster pumping sta­tions. Key elements at the discharge end are slurry separation and drainage of the wood chips, and material transport to the biomass processing facil­ity. As already noted, pressure drops, pumping requirements, and the overall estimate are based on water as the carrier fluid.

Note that unlike truck transport, there is an economy of scale in slurry transport of materials, since larger throughputs benefit from an economy of scale in construction of the pipeline and associated equipment, and in lower friction losses in larger pipelines.

Figure 2 compares the total transport costs of wood chips by truck and by pipeline, for an arbitrary fixed distance of 160 km. The basis of the cost estimate is a wood chip concentration of 27% by volume at the inlet end and 30% by volume at the outlet end. The close agreement between the estimat­ing formulae of Liu et al. (8) and the results of Wasp et al. (6) for a one-way pipeline is evident. The one-way pipeline cost estimates were cross-checked against a recent estimate of two short large-diameter liquid pipelines in western Canada (D. Williams, personal communication, 3/03), and showed good agreement. Figure 2 shows the impact of scale on pipeline costs, as compared with the cost of truck transport, which is independent of scale. (The formulae of Liu et al. (8) and the data from Bantrel [D. Williams, personal communication] suggest a capital cost scale factor for pipelines of

0. 59—0.62; the data of Wasp et al. (6) as not specific enough to calculate a comparable figure.) Figure 2 also shows the significantly higher cost for a two-way pipeline that returns carrier liquid to the inlet end.

From Figs. 1 and 2 it is clear that the marginal cost of transporting biomass by pipeline at a concentration of 30% is higher than truck transport at capacities <0.5 million dry t/yr (one-way pipeline) and 1.25 million dry t/yr (two-way pipeline) at a distance of 160 km. The implications of this finding are discussed in the next section.

image009Truck plus pipeline transport cost of woodchips with carrier return pipeline

Truck plus pipeline transport cost of woodchips

Подпись: 70without carrier return pipeline

Truck transport of woodchips — FERIC

60

 

Подпись: 50Э — Truck transport of woodchips — Short term contract hauling

40

 

200

 

300

 

400

 

500

 

600

 

100

 

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Distance (Kms)

Fig. 3. Comparison of integrated truck/pipeline transport vs truck-only transport of wood chips at capacity of 2 million dry t/yr.