Economic Comparison of Torrefaction-Based and Conventional Pellet Production-to-End-Use Chains

Biomass upgrading through torrefaction is expected to relevantly reduce biomass trade costs and thus energy costs for the end-user. In this framework, the present work aims at defining crucial technical and cost parameters for the production, fuel properties, supply and end-use of torrefied pellets. The findings are used to compare four real-case wood pellet with corresponding torrefied pellet supply chains. Input data are derived from laboratory fuel, pelletising and storage experiments with torrefied biomass provided from European producers, cost estimations based on experience from related technology engineering and set-up as well as from expert consultations. This allows a stepby-step comparison of cost advantages and additional expenses from pretreatment to end-user. As a result, torrefied pellets turn out to be a certain alternative for wood pellets. The cost comparison demonstrates that the production of torrefied pellets is still much more cost-intensive, but can be partly compensated by reduced transportation costs. At the end-user, heat production in small-scale pellet boilers is technically feasible, but with slightly higher costs. Cofiring torrefied pellets in large-scale coal plants can be cost-competitive to industrial wood pellets, when no additional retrofit and operation and maintenance costs incur.