Case-study reveals template for successful biofuel production
A consortium of eleven companies involved in the biodiesel industry in the North-East of England have developed a template for successful future biofuels production. The Value Chain Analysis (VCA) project, which was undertaken as part of the Cereals Industry Forum (CIF), could prove very valuable in driving future developments in this relatively new sector.
The study titled Meeting the Renewable Transport Fuel Obligation - A Biofuels Case Study from Seed to Forecourt [*.pdf], identified areas as critical to the chain, including standardising farming practice, breeding specific varieties for biofuels, ensuring continuity of supply, and providing carbon reporting throughout the chain. The study looked at three biofuels for transport: biodiesel, bioethanol and biogas.
Value Chain Analysis brings together a team representing all aspects of a supply chain in order to ‘map’ the chain. By ‘walking through’ the chain together, the team is able to identify processes that add value and those that don’t (map, click to enlarge). It is also able to identify problems and areas, and, therefore, to suggest ways in which the chain might be improved. This activity is organised by the Cereals Industry Forum, and was facilitated by Cardiff Business School.
Because of the complexity of the supply chain in this case it was split into two groups – upstream and downstream. The detailed mapping of the upstream chain showed that the total lead-time from basic seed to crusher is about 920 days, out of which 365 days is in multiplication of basic seed, 365 growing on the farm and 180 days on average in central silo. The total mileage from fertiliser manufacturing plant through the distributive chain to the farm and then as crop to the crusher is about 250 miles.
For the downstream chain it showed that the total lead-time from the crusher to the vehicle tank is more than 60 days (excluding time in the tank-farm due to data not available). The total transport in the downstream is about 60 miles (excluding miles traveled in pipelines).
The critical factors for success identified by the team were:
energy :: sustainability :: ethanol :: biodiesel :: biogas :: bioenergy :: biofuels :: carbon balance :: energy balance :: logistics :: byproducts :: value chain ::
John Reynolds, Chairman of North East Biofuels said: “The VCA project was a very valuable exercise and I firmly believe it is a great help as a pointer and a base against which our supply chain members can measure improvements in the coming years. These improvements will be very necessary in a competitive world, where the consumer will demand cost competitiveness at the pump and a product which helps to combat Global Warming.”
Iain Grime, Business Development Manager from PetroPlus said: “The VCA is a valuable project which helps supply chain stakeholders to build better and longer-term relationships. The VCA project looked at opportunities for improving operations and also the logistics in the supply chain. This sector is very mature and the logistical opportunities are limited. However, one of the key findings was the need for transparent and rigorous carbon reporting along the life-cycle of biofuels. This includes all aspects of delivery from grain to fully blended biofuels to the retail outlet.”
More information:
Biofuel Review: Template for successful biofuels production developed - June 7, 2007.
Home Grown Cereals Authority / North East Biofuels: Reducing carbon in a biofuel supply chain A biodiesel case study - 2007, s.d. (June 2007).
Cereals Industry Forum: Meeting the Renewable Transport Fuel Obligation: A Biofuels Case Study from Seed to Forecourt - April 2007.
The study titled Meeting the Renewable Transport Fuel Obligation - A Biofuels Case Study from Seed to Forecourt [*.pdf], identified areas as critical to the chain, including standardising farming practice, breeding specific varieties for biofuels, ensuring continuity of supply, and providing carbon reporting throughout the chain. The study looked at three biofuels for transport: biodiesel, bioethanol and biogas.
Value Chain Analysis brings together a team representing all aspects of a supply chain in order to ‘map’ the chain. By ‘walking through’ the chain together, the team is able to identify processes that add value and those that don’t (map, click to enlarge). It is also able to identify problems and areas, and, therefore, to suggest ways in which the chain might be improved. This activity is organised by the Cereals Industry Forum, and was facilitated by Cardiff Business School.
Because of the complexity of the supply chain in this case it was split into two groups – upstream and downstream. The detailed mapping of the upstream chain showed that the total lead-time from basic seed to crusher is about 920 days, out of which 365 days is in multiplication of basic seed, 365 growing on the farm and 180 days on average in central silo. The total mileage from fertiliser manufacturing plant through the distributive chain to the farm and then as crop to the crusher is about 250 miles.
For the downstream chain it showed that the total lead-time from the crusher to the vehicle tank is more than 60 days (excluding time in the tank-farm due to data not available). The total transport in the downstream is about 60 miles (excluding miles traveled in pipelines).
The critical factors for success identified by the team were:
- The need to standardise and transfer best farming practices more widely: it was shown that improved choice of varieties, reduced fertiliser loss, and reduced harvest loss could make a significant difference to improving the quality of output and the profitability for growers.
- Breeding specific varieties for biofuels: currently, there are no oilseed varieties specifically for biofuels production. High yield and oil content are key to the success of the whole sector and have a big impact on profitability of biofuels crop production as well as the whole supply chain.
- Continuity of supply into the crusher with crop storage adjacent to the crusher: key to sustainability of this chain is the continuity of supply of high quality locally-grown crops into the crusher. The crusher connects the upstream and downstream chains and efficiency of the upstream supply is crucial in terms of competitiveness of the whole industry.
- Carbon reporting from seed to tank: the carbon footprint and the environmental impact of the end-to-end supply chain (seed to tank) must be constantly monitored to ensure that the promised carbon reduction is met.
energy :: sustainability :: ethanol :: biodiesel :: biogas :: bioenergy :: biofuels :: carbon balance :: energy balance :: logistics :: byproducts :: value chain ::
John Reynolds, Chairman of North East Biofuels said: “The VCA project was a very valuable exercise and I firmly believe it is a great help as a pointer and a base against which our supply chain members can measure improvements in the coming years. These improvements will be very necessary in a competitive world, where the consumer will demand cost competitiveness at the pump and a product which helps to combat Global Warming.”
Iain Grime, Business Development Manager from PetroPlus said: “The VCA is a valuable project which helps supply chain stakeholders to build better and longer-term relationships. The VCA project looked at opportunities for improving operations and also the logistics in the supply chain. This sector is very mature and the logistical opportunities are limited. However, one of the key findings was the need for transparent and rigorous carbon reporting along the life-cycle of biofuels. This includes all aspects of delivery from grain to fully blended biofuels to the retail outlet.”
More information:
Biofuel Review: Template for successful biofuels production developed - June 7, 2007.
Home Grown Cereals Authority / North East Biofuels: Reducing carbon in a biofuel supply chain A biodiesel case study - 2007, s.d. (June 2007).
Cereals Industry Forum: Meeting the Renewable Transport Fuel Obligation: A Biofuels Case Study from Seed to Forecourt - April 2007.
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