The impact of fuel delivery logistics on the cost of thermal energy on the example of biofuels boilers in Ukraine

Abstract

Abstract One of the important directions for achieving the goals of sustainable development and decarbonization is to increase the share of biofuels, including in heat supply systems. In this case, an important factor in deciding on the use of biofuel boilers is the cost of fuel, which is affected by the delivery logistics. The authors determined the impact of logistics for different types of fuel for low-power boilers (0.5 and 1 MW, burning biofuels) on LCOH. The calculations take into account the existing rates of environmental tax. The paper considers the transportation of biofuels by road to small consumers over short distances (within a radius of several hundred kilometers). The study showed that the cost of delivery of pellets from producer to consumer can be up to 20% of their cost. It is established that the transportation of a ton of pellets per 1 km increases the cost of this ton by about 1.35 UAH, therefore, the logistical component in the final cost of pellets can be significant.