Economic analysis of fuel collection, storage, and transportation in straw power generation in China

Yufeng Sun, Wenchao Cai, Bo Chen, Xueying Guo, Jianjun Hu and Youzhou Jiao

Energy, 2017, vol. 132, issue C, 194-203

Abstract: Biomass power generation projects involve green and renewable energy. This study regards Laifa Straw Recycling Company of Henan Sheqi as an example. Field survey and economic analysis are employed as the main research methods. The problems of straw collection, storage, and transportation are examined. According to the data obtained from the investigation and the mathematical model, when the straw recycling company uses the artificial model, the average price of each ton of straw is 385.4 yuan; when the straw recycling company uses the mechanical model, the average price of each ton of straw is 264.4 yuan. Comparison of the mechanical and artificial models reveals that the average price of each ton of straw differs by 121 yuan. Under the assumption that the annual purchase amount of straw is 2 × 105 tons, the cost of 2.42 × 107 yuan per year can be saved. Thus, Laifa Straw Recycling Company of Henan Sheqi should consider the mechanical model. Sensitivity analysis of the two models shows that the collection cost is the most sensitive factor when the straw recycling company utilizes the artificial model because most farmers go out to work, so a shortage in rural labor force occurs; this shortage results in increased cost of artificial collection. When the straw recycling company utilizes the mechanical model, the cost of storage is the most sensitive factor because of the large storage amount. High current land leasing and management costs lead to increased storage cost.

Keywords: Straw fuel; Logistics system of straw collection, storage and transportation; Mathematical model; Cost of straw collection, storage and transportation; Economic analysis (search for similar items in EconPapers)
Date: 2017
References: View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:132:y:2017:i:c:p:194-203

DOI: 10.1016/j.energy.2017.05.077

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