Economic Analysis of Biomass Supply Chains: A Case Study of Four Competing Bioenergy Power Plants in Northwestern Ontario
Table 3
Definition and description of scenarios of profit maximization model.
Scenario
Description
BASE
This is the business-as-usual scenario of the model which reflects the current field situation. The parameters for this scenario are described in Table 1. The results of other model scenarios are compared with that of this scenario.
INTC
BASE, but 20% increase in biomass truck charge rate. This scenario tests the impact of change in transportation costs, which is likely situation in future on gross margin structures for each biomass supplying FMU, as truck charge rate has recently been increased in NWO.
IRTB1
BASE, but 10% increase in price of biomass feedstock by Thunder Bay plant.
IRTB2
BASE, but 20% increase in price of biomass feedstock by Thunder Bay plant.
IRFF1
BASE, but 10% increase in price of biomass feedstock by Fort Frances plant.
IRFF2
BASE, but 20% increase in price of biomass feedstock by Fort Frances plant.
IRTF1
BASE, but 10% increase in price of biomass feedstock by both Thunder Bay and Fort Frances plants.
IRTF2
BASE, but 20% increase in price of biomass feedstock by both Thunder Bay and Fort Frances plants.
This set of price increasing scenarios tests the sensitivity of different levels of prices of biomass feedstock to gross margin structures of biomass supplying FMUs. These changes in prices are likely to be offered on the part of bigger power plants as they require huge amounts of biomass to operate their power plants smoothly. Price increases are, therefore, assigned to two bigger power plants, Thunder Bay and Fort Frances, in these scenarios.
