Abstract
The main objective of this activity is to conduct a value chain analysis for assessing the
potential of using black pellets instead of coal for energy production in Romania. The
landscape of biomass production in Romania has grown increasingly competitive due to
the rising demand and the proliferation of pellet producers seeking raw materials.
Additionally, this shift stems from the decline in wood processing and exploitation activities
over recent years, primarily due to reduced access to forest resources, legislative
instability, and bureaucratic hurdles. Romania officially harvests 19 million cubic meters of
wood annually, exploiting only 50% of its sustainable potential exploitation rate which is
the growth rate of forests. Operating costs for the value chain of power production from
black pellets and coal are estimated, which was 100.68 million RON/year for black pellets
value chain. This is more than 5 times higher than that of using coal, estimated to 18.18
million RON/year. The difference is mainly due to the extraction phase since biomass
harvesting is more costly than coal mining activity. The black pellets value chain includes
their production from biomass, namely pretreatment and steam explosion which require
electricity to be feasible. It is important to note that there is a significant difference in ash
contents of these two fuels which would make a difference in total costs due to ash disposal
costs. However, local data from Romania was not available as per today and thus not
included in the calculations.
potential of using black pellets instead of coal for energy production in Romania. The
landscape of biomass production in Romania has grown increasingly competitive due to
the rising demand and the proliferation of pellet producers seeking raw materials.
Additionally, this shift stems from the decline in wood processing and exploitation activities
over recent years, primarily due to reduced access to forest resources, legislative
instability, and bureaucratic hurdles. Romania officially harvests 19 million cubic meters of
wood annually, exploiting only 50% of its sustainable potential exploitation rate which is
the growth rate of forests. Operating costs for the value chain of power production from
black pellets and coal are estimated, which was 100.68 million RON/year for black pellets
value chain. This is more than 5 times higher than that of using coal, estimated to 18.18
million RON/year. The difference is mainly due to the extraction phase since biomass
harvesting is more costly than coal mining activity. The black pellets value chain includes
their production from biomass, namely pretreatment and steam explosion which require
electricity to be feasible. It is important to note that there is a significant difference in ash
contents of these two fuels which would make a difference in total costs due to ash disposal
costs. However, local data from Romania was not available as per today and thus not
included in the calculations.
