Economical aspects of acquiring pellets from grain straw

Сharacterization of the costs of purchasing energy from straw in the form of pallets. Identification and features of the main threats to the profitability of pelletizing. Determination of the cost of obtaining energy from straw before granulation.

Рубрика Экономика и экономическая теория
Вид статья
Язык английский
Дата добавления 28.10.2018
Размер файла 20,9 K

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Economical aspects of acquiring pellets from grain straw

Waldemar Izdebski

Аннотация

Совершен анализ издержек приобретения энергии из соломы в виде пэлетoв. Пэлетование соломы увлекательное в отношении каменного угля, но, главным образом, в ситуации низких рыночных цен соломы. Высокие цены соломы, как и низкие цены зерна, составляют угрозу для рентабельности пэлетования.

The analysis of energy acquisition costs from straw in the forms of pellets was performed. Straw pelletizing is attractive in comparison to the bituminous could, but mainly in the conditions of low straw market prices. High straw prices and low grain prices are a threat to the pelletizing profitability.

The alternative for heat energy from bituminous coal is grain biomass both in forms of straw and grain. Grain straw for energetic purposes can be acquired in a form of small blocks or large balls. However, this method can be used in case of farms, which produce biomass for their own needs, because supplying such biomass to other recipients is problematic due to the transport and storage. The alternative method of grain straw processing is pelletizing. The perspective of such biomass processing depends on the economical aspects.

The aim and scope of research.The aim of this research, was the evaluation of profitability of energy acquisition from grain straw in the forms of pellets, produces for the needs of individual recipients.

The scope of research consisted of cost analysis of the production of pellets from wheat and rye straw.

Research methodology. The economical analysis was performed on the winter wheat and rye cultivation in intensive technology (Chotkowski et al. 1994), assuming grain crops at the level of 6 tha-1 both for winter wheat and rye. For the assumed crops, the level of fertilization and chemical protection of grains were taken from literature (Chotkowski et al 1994), assuming that the above mentioned grains are cultivated on a very good rye soil complex and a medium level of minerals.

The production cost of the above mentioned grains was calculated on the basis of a dependency carried out according to the literature [Kalkulacje kosztуw... 1998, Klepacki, Goікbiewska 2003]:

where: KPROD - production costs [EURha-1], KNAW- fertilization costs [EURha-1], KSOR- costs of pesticides [EURha-1], KNAS- cost of grain seeds [EURha-1], KR - labour cost [EURha-1], Kei - cost of operation of an aggregate performing a specific treatment [EURha-1], DBZP - direct production subsidies [EURha-1], n - number of treatments in a given cultivation,

Costs of tractors and machines operation where used according to the methodology and rates presented by IBMER [Lorencowicz 2008].

(5)

where: Kei- operational costs of iterated machine (tractor) [EURh-1], WRi- annual use of iterated machine [hyear-1], Cmi- price of iterated machine (tractor) [EUR], Kubi- cost of insurance of iterated machine (tractor) [EURyear-1], kni- servicing cost rate (percentage value of a new tractor) [%], Thi- standard use of tractor (machine) in a time period [h], Zpi- hourly fuel consumption of iterated tractor (mobile machine) [lh-1], Cpi- fuel price [EURl-1]

In the following analyses, it was assumed, that the cultivation of the above mentioned plants in the conditions of a large-area farm, where tractors and farm machines are very intensively used. Therefore, for the calculations of operation costs of tractors and machines, the amortization period was assumed to be 6 years. In such conditions, the annual use of the tractor is about 1600 hours.

The capacities of machines and tools were calculated according to the methodology and rates presented in the literature [Lorencowicz 2008].

The data necessary for calculations were taken from the market news (Rynek rolny 2010) and literature [Harasim, 1994, Niedziуіka and Zuchniarz 2006]. In the production costs calculations, the subsidies paid by ARiMR were also included.

Because of the difficulties in estimating straw production costs, the unit cost of energy from straw was calculated in the following way. It was assumed, that the income acquired from grain will be used for purchase of straw, which would be a an additional portion of energy. Then, the total energy value from the straw crops and purchased straw was calculated. The unitary cost of straw energy was calculated by dividing the cultivation cost (PLNha-1) by the total energy value (GJha-1). energy straw pallets cost

Because of the large variability of straw market price, three price levels were assumed: low, medium and high. The following prices of straw were assumed: at a low level 27.5 EURt-1 , medium - 62.5 EURt-1 . The prices were evaluated on the basis of a survey performed among the representatives of the entities buying biomass. The high straw price level was assumed at a level, where the cost of 1 GJ is equal to coal. At the price of coal noted by IERiGЇ (Rynek rolny…2009) at a level of 173,28 EURt-1 and assumed energetic value of coal at 26 GJt-1, the straw price is 112,5 EURt-1. Such value was assumed for the high straw price level.

The incomes from grain sales were calculated using two price levels: low and high. They were estimated using minimal and maximal annual values of grain purchase prices, noted by the IERiGЇ in the period of 2004-2009 [Rynek rolny... 2005-2009]. Therefore, for the winter wheat, the minimal purchase price was 104.3 EURt-1 and maximal 215.3 EURt-1, while for the rye, respectively: 70.17 EURt-1 and 181.52 EURt-1.

The pelletizing costs was calculated on the basis of a pelletizing set PROTECHNIKA PR 6000, of a standard capacity of 700 kgh-1 , including technical and operating parameters, as well as maintenance and servicing costs stated by the manufacturer.

The pelletizing technology included the operation of the tractor supplying balls to the shredder. The operation costs of a tractor was calculated according to the IBMER methodology [Lorencowicz 2008]. Annual use of such tractor was corresponding to the annual use of the pelletizing set.

Labour costs (2 persons servicing pelletizing line and 1 for the tractor) were assumed at the level of 9 EURh-1 ( 3 EURh-1 for each worker).

The pelletizing costs calculation were made for four variants of briquette production sizes. In the variant I, it was assumed, that the machine briquettes 1000 tonnes of straw annually, in the variant II: 2000 tones, variant III: 3000 tones and in the variant IV: 4000 tones.

The calculated costs were increased by 10% for additional costs (indirect costs) connected with the pelletizing process, e.g. lighting of the building, ventilation, heating, social costs of workers.

The calculated costs are referred to 1 tone and 1 GJ of briquetted straw.

Research results. Calculations results are presented in the tables 1-3

Table 1 - Energy acquisition costs from straw before pelletizing [EURGJ-1]

grain prices

straw prices

Low

Medium

High

Wheat

Low

1.39

2.53

3.56

high

0.75

1.50

2.31

Rye

Low

2.06

3.26

4.09

high

1.01

1.89

2.72

Table 2 - Pelletizing costs of straw

amount of pelletized straw

tyear-1

1000

2000

3000

4000

number of work hours

hyear-1

1429

2857

4286

5714

total costs incl. indirect costs

EURyear-1

68 517.11

114 795.11

161 538.23

208 611.77

pelletizing cost

EURt-1

68.52

57.40

53.85

52.15

pelletizing cost

EURGJ-1

4.03

3.38

3.17

3.07

Table 3 - Energy acquisition costs after pelletizing [EURGJ-1]

amount of pelletized straw: 1000 t

plant

grain prices

Low straw prices

Medium straw prices

High straw prices

Wheat

Low

5.42

6.56

7.59

high

4.78

4.87

6.34

Rye

Low

6.09

7.29

8.12

high

5.04

5.92

6.75

amount of pelletized straw: 2000 t

Wheat

Low

4.76

5.91

6.94

high

4.12

4.87

5.69

Rye

Low

5.44

6.63

7.46

high

4.39

5.27

6.09

amount of pelletized straw: 3000 t

Wheat

Low

4.55

5.70

6.73

high

3.91

4.67

5.48

Rye

Low

5.23

6.43

7.25

high

4.18

5.06

7.25

amount of pelletized straw: 4000 t

Wheat

Low

4.45

5.60

6.63

high

3.81

4.57

5.38

Rye

Low

5.13

6.33

7.15

high

4.08

4.96

5.78

The performed analyses allow us to state, that he straw pellet production costs is from 3.81 to 8.12 EURGJ-1 , while more profitable results are seen for winter wheat.

The worse result (8.12 EURGJ-1) is seen for the rye straw briquette production, in the conditions of high straw prices and low grain prices at the annual capacity of pelletizing at 1000 tyear-1. While comparing energy acquisition costs from straw to the energy acquisition costs from coal (6.66 EURGJ-1), one can state that pelletizing is not always profitable. It is largely influenced by the pelletizing costs, which mainly consists of an expensive pelletizing line.

Conclusions. Straw pellets production, as the performed analyses show, is profitable mainly in the conditions of low market prices of straw. A favourable factor for pellet production are high grain prices, which allow for a decrease in the unitary costs of energy acquisition from straw. An important factor is also a high usage of pelletizing line. However, in the situation of very unfavourable market prices of grain and straw, high annual use of the pelletizing line does not provide profitability of pellet production.

BIBLIOGRAPHY

1. Chotkowski J. (red), 1994: Produkcja roњlinna. Technologia uprawy. Fundacja „Rozwуj SGGW” Warszawa.

2. Harasim A., 1994: Relacja miкdzy plonem sіomy i ziarna u zbуї. Pamiкtnik Puіawski. 104, 56.

3. Lorencowicz E., 2008: Poradnik uїytkownika techniki rolniczej w tabelach. APRA, Bydgoszcz.

4. Niedziуіka I., Zuchniarz M., 2006: Analiza energetyczna wybranych rodzajуw biomasy pochodzenia roњlinnego. MOTROL. 8A, 232-237.

5. Rynek Rolny. Analizy .Tendencje. Oceny (wydania z lat 2005-2010) IERiGЇ, Warszawa.

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