Title: Optimisation of renewable forest fuel supply for more sustainable energy production of CHP plant in Finland

Authors: Teijo S. Palander; Ari Hietanen

Addresses: Faculty of Science and Forestry, University of Eastern Finland, P.O. Box 101, FIN-80101, Joensuu, Finland; Fluting Mill of Heinola, P.O. Box 5, Stora-Enso Oyj, FIN-18101 Heinola, Finland ' Faculty of Science and Forestry, University of Eastern Finland, P.O. Box 101, FIN-80101, Joensuu, Finland; Fluting Mill of Heinola, P.O. Box 5, Stora-Enso Oyj, FIN-18101 Heinola, Finland

Abstract: In this study, a potential fuel procurement planning model to sustainable energy production problems is considered. In Finland peat is commonly used as a fuel of energy plants. However, it is recently considered as non-renewable fuel. Therefore, we tested the model using Finnish Government's peat fuel tax policy decisions for sustainable energy production. However, due to the complex nature of the renewable fuel-procurement problem, the optimisation model cannot be directly used to solve the problem in a manner that is relevant to the forest industry. Therefore, this model was combined with an energy-production model to better describe the combinatorial complexity of energy flows. The properties of the model are discussed and we present the examples of how the model works based on real-world data and optional fuel procurement constraints. The results show peat and forest fuel relationships which indicate that meeting peat tax targets may not be adequate for the future success of renewable energy production, because energy production costs are increasing and forest fuel procurement targets can not be achieved.

Keywords: forest technology; forest fuel; fossil fuels; information logistics; procurement logistics; wood-waste fuel; sustainable energy production; sustainable development; sustainability; renewable energy; CHP plants; combined heat and power; Finland; procurement planning; energy flows; modelling; peat fuel tax policy.

DOI: 10.1504/IJESD.2014.056411

International Journal of Environment and Sustainable Development, 2014 Vol.13 No.1, pp.20 - 33

Available online: 10 Sep 2013 *

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