Use of Forest Residues for Building Forest Biomass Supply Chains: Technical and Economic Analysis of the Production Process

In the field of biomass and bio-energy production, an analysis was performed of the whole production process from biomass supply to bio-energy production. The available biomass, harvesting and transportation costs and the distribution of supply area were quantified. The assessment of volumes was based on forest type and its relative increment. The transportation costs, influenced by different species-specific and site-specific factors, were calculated by integrating data in a geographic information system (GIS). The economic values calculated were the main economic indicators (net present value (NPV), internal rate of return (IRR) and Payback Period). The results show that: (a) there is a good supply of forest biomass across most of the territory of Basilicata region, Italy; (b) the harvesting and transportation costs are dependent on biomass density and distances; (c) there are strong margins for economic profits at the level of each single supply basin; and (d) the endogenous value added was estimated to about 150 seasonal workers.