25.12.2013 Views

Download (4Mb) - USQ ePrints - University of Southern Queensland

Download (4Mb) - USQ ePrints - University of Southern Queensland

Download (4Mb) - USQ ePrints - University of Southern Queensland

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

This can be compared with harvest and haul costs (excluding contractor pr<strong>of</strong>its) <strong>of</strong> around $45/green<br />

tonne (based on small scale production <strong>of</strong> 15,000 tonnes/yr, low harvester performance, pour rates <strong>of</strong><br />

30tonnes/hr, and a 100km haul) and $28/green tonne (based on large scale production<br />

(145,000tonnes/yr and high harvester performance, pour rate <strong>of</strong> 50tonnes/hr, and a 100km haul).<br />

Stumpage charges for the grower to recover biomass production cost would need to be added and<br />

could vary from $15-$30/green tonne.<br />

Apart from continuing development <strong>of</strong> harvesting technology, the components in a model <strong>of</strong> a full<br />

scale industry must be further developed. This will involve further analysis <strong>of</strong> potential product<br />

streams and the opportunities for maximising the synergies from the production <strong>of</strong> different products.<br />

Whilst further development <strong>of</strong> the overall industry model is required, a number <strong>of</strong> enabling<br />

technologies will almost certainly be required to be developed and optimised. It is probable that the<br />

technologies will include:<br />

• Efficient separation <strong>of</strong> “ex harvester” product into components, primarily leaf, twig and bark<br />

from the woodchip component.<br />

• Efficient steam extraction <strong>of</strong> the leaf and twig components, versus the current strategies <strong>of</strong><br />

whole tree product. This will be essential to reduce the energy consumption and cost<br />

associated with oil extraction.<br />

• Efficient drying and densification <strong>of</strong> leaf and twig material after oil extraction to maximise<br />

transport densities and minimise transport costs.<br />

• Automated combustion systems for mallee chip and densified leaf product.<br />

In addition to these basic components, it is essential that work continue on the “Big Picture”<br />

components <strong>of</strong> the potential industry, including gasification/pyrolysis for the potential production <strong>of</strong><br />

liquid fuels.<br />

Industry and Business Structures<br />

Chapter 5 has outlined the various industry and business structures in the sugar industry.<br />

Organisational structures and how costs and pr<strong>of</strong>its are divided across the mallee biomass supply<br />

chain will be crucial to provide incentives for efficiency improvement.<br />

Within the sugar industry costs (e.g. harvesting) are generally averaged across participants and<br />

individuals are not always aware <strong>of</strong> their costs or rewarded for efficiency. The sugar industry has<br />

recognised that streamlining the value chain is essential to ensure optimal mill throughput and a<br />

reliable cane supply, and that sustainability will be improved by identifying and targeting real costs.<br />

Other mechanisms to ensure supply reliability have included long term contracts and performance<br />

based incentives.<br />

Harvest and transport represents 30% <strong>of</strong> costs within the sugar value chain and there are significant<br />

inefficiencies which are principally a result <strong>of</strong> divided responsibilities between the grower and the<br />

miller. The cost <strong>of</strong> harvesting is the grower’s responsibility while the cost <strong>of</strong> transport is the<br />

responsibility <strong>of</strong> the mill. Across some regions within the sugar industry a reduction in the number <strong>of</strong><br />

harvesting operations and optimising existing groups are demonstrating some benefits.<br />

Institutional and regulatory arrangements have had a pr<strong>of</strong>ound impact on development <strong>of</strong> the sugar<br />

supply chain. In particular, development <strong>of</strong> a cane payment formula that accounts for quality <strong>of</strong> cane<br />

delivered has been significant in improving supply chain performance. Pricing arrangements are now<br />

negotiated regionally based on an industry framework. In the mallee industry, particularly when there<br />

are multiple products and markets, appropriate payment mechanisms need to be considered.<br />

178

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!