University of Oulu

Lehtinen, U., Juntunen, J., & Juga, J. (2020). Evaluating the feasibility of bio-energy based heat and power production in rural community. Biomass and Bioenergy, 139, 105578.

Evaluating the feasibility of bio-energy based heat and power production in rural community

Saved in:
Author: Lehtinen, Ulla1; Juntunen, Jouni2; Juga, Jari2
Organizations: 1University of Oulu, Kerttu Saalasti Institute, Pajatie 5, 85500 Nivala, Finland
2University of Oulu, Oulu Business School, Box 4600, 90014, Finland
Format: article
Version: accepted version
Access: open
Online Access: PDF Full Text (PDF, 0.2 MB)
Persistent link:
Language: English
Published: Elsevier, 2020
Publish Date: 2023-01-23


The paper discusses alternatives for biofuel-based district heating using simulation analysis in a real-life case example. First, the paper illustrates the current supply chain structure of forest chips from harvest to the heat energy plant. Usually the chips are naturally dried, chipped on the roadside and transported to the heating plant based on the orders. Second, the study demonstrates how a regional bioenergy system could be developed with the help of a simulation model for evaluating the feasibility of different wood fuel supply chain options. The model mimics a real-life example of an industrial area in a small Finnish municipality planning to invest in a CHP plant. The results show that the investment in a CHP plant and use of artificially dried wood fuel can be profitable in the circumstances where local demand exists for heat energy. The simulation-based vision can be compared with the presently dominant concept of highly decentralized supply chains for wood chips that is widely used among energy suppliers. However, to optimize the transportation costs and the moisture content of the chips changes are needed in the supply chain processes and structure. The results of this study are useable for practical decision-making and offer useful ideas for continuing research on alternative ways to produce energy wood biomass in the future.

see all

Series: Biomass & bioenergy
ISSN: 0961-9534
ISSN-E: 1873-2909
ISSN-L: 0961-9534
Volume: 139
Article number: 105578
DOI: 10.1016/j.biombioe.2020.105578
Type of Publication: A1 Journal article – refereed
Field of Science: 212 Civil and construction engineering
512 Business and management
222 Other engineering and technologies
Funding: This work was performed for the project “Utilization of forest resource in the municipality of Utajärvi” carried out in Utajärvi; Finland and financed by the European Regional Development Fund (ERDF), Utajärvi municipality and local companies.
Copyright information: © 2020. This manuscript version is made available under the CC-BY-NC-ND 4.0 license