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Procedia Environmental Sciences 35 (2016) 914 – 924

International Conference on Solid Waste Management, 5IconSWM 2015

Biomass Supply Chain in Asian and European Countries

Aryama Raychaudhuria, Sadhan Kumar Ghoshb,**
a
PG Scholar, Department of Civil Engineering, NIT Trichy, Tiruchirapalli, India
b
Professor, Department of Mechanical Engineering, Jadavpur University, Kolkata and
President, International Society of Waste Management, Air and Water, India

Abstract

Nowadays, biomass is considered as one of the main sources of energy for both developed and developing countries. With
the reduction of global oil reserves, developing renewable energy has become an important issue for each country. Biomass
power is an important kind of clean energy, as it has abundant resource and is environmentally friendly. Utilization of biomass
for bioenergy production is a beneficial alternative to meet the increasing energy demands, reduce the carbon dioxide emission,
global warming and climate change. In the past few years, the biomass power industry has developed rapidly, accompanied with
some problems. They are currently making small profits or suffering losses, and the entire biomass supply chain does not
function well, which not only poses a challenge for the stable operation of enterprises but also may impact the smooth
development of the biomass power industry. Lack of optimization biomass residue makes the countries still low in utilization of
biomass therefore most of industries are not aware this benefit and they are reluctant to take the risk on utilization of biomass for
power generation. This paper summarized the bioenergy production potential of various categories of biomass used and their
conversion processes adopted in different part of the world; specifically in Asian and European countries. A brief description of
the processes for conversion of identified biomass feedstock to energy and fuels has also been included. In addition, the
sustainability issues related to supply chain management concerning operational, economic and social aspects of the utilization of
biomass have been addressed based on the secondary data from available literature. Finally, this paper offered several
recommendations for future development on the relevant fields, such as cost, strategic planning, and policy implication. This
project has specific importance and very few studies have been done which reviews the biomass supply chain of Asian and
European countries.
© 2016
2016TheTheAuthors.
Authors. Published
Published by Elsevier
by Elsevier B.V.B.V.
This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the organizing committee of 5IconSWM 2015.
Peer-review under responsibility of the organizing committee of 5IconSWM 2015
Keywords: Biomass supply chain, Asian and European countries, Biomass utilization, Issues and challenges;

* Corresponding author.
E-mail address: sadhankghosh9@gmail.com

1878-0296 © 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the organizing committee of 5IconSWM 2015
doi:10.1016/j.proenv.2016.07.062
 Aryama Raychaudhuri and Sadhan Kumar Ghosh / Procedia Environmental Sciences 35 (2016) 914 – 924 915

1.0 Introduction

Biomass can be converted into biofuels for generating bioenergy. The use of biomass as an renewable energy
resource is escalating continuously and has received widespread attention of energy sectors as an alternative to fossil
fuel [Vassilev, S. V et al, 2015] as it is available in many forms and in comparison to fossil fuels such as natural gas
and coal, which take millions of years to form, biomass is easy to grow, collect, utilize and replace quickly without
depleting natural resources [Yue, D et al, 2014]. Diverse agricultural, forest, and waste resources can contribute to
the bioeconomy and provide with new economic opportunities in rural areas in Asian and European countries.
Researchers are exploring biomass specifications and characteristics, the effects of various handling techniques, the
supply chain management, and the resulting impacts on conversion performance. With further development,
utilization of bioenergy can be expanded to meet the increasing energy demands, reduce the carbon dioxide
emission, global warming and climate change.

In recent years several strategies has been implemented in different European Union (EU) countries to increase
the share of electricity generation from renewable energy sources. Total contribution production from renewable
energy sources, for all 27 European Union Member States, amounts to 639 TWh in 2010, with respect to 5 years
before, this amount represents an increase of the overall renewable share of 33%. The estimated growth rate will be
of 41% from 2010 to 2015 and 35% from2015 to 2020 [Cucchiella, Fet al, 2013]. Biomass energy is being used in
different Asian countries as well. Chinese government has issued the Renewable Energy Act in 2005 [Zhao, H. Ret
al, 2014] and a series of policies have been released for supporting the development of renewable energy generation
from non-food biomass in the form of ethanol, biodiesel etc. “China's long term development plan of renewable
energy” has proposed that the capacity of biomass power generation would reach 30 million kW by 2020 [Wen, W
et al, 2015]. Biomass energy is the most potential energy source in Malaysia to overcome the increasing energy
needs while preserving the environment. In Malaysia tenth plan, a new target was set to 985 MW generate electricity
from renewable energy sources in 2015. The Government has launched several fiscal incentives to stimulate the
emergence of renewable energy activities and technologies and is going to introduce the feed-in tariff mechanism in
near future [Shafie, S. M et al, 2012]. In India most of the available biomass like wood, crop residue, animal waste
etc. are extensively used in rural households. Renewable energy is contributed 10.5% of total generation out of
which 12.83% power is being generated using biomass [Kumar, A et al, 2015]. As per the Ministry of New and
Renewable Energy, a total of 288 biomass power and cogeneration projects aggregating to 2665MW capacity have
been installed in the country for feeding power to the grid [Hiloidhari, M et al, 2014]. In Pakistan the estimated
biogas potential is 12-16 million m3/day and presently there are 5357 biogas units installed. There are good
prospects for using biogas energy in rural areas of Pakistan through a network of community biogas plants. The
amount of dung-waste is enough to produce about 12 million cubic meters of biogas per day that could suffice to
meet energy requirement of 28 million rural people, in addition to production of 21 million ton of bio-fertilizer per
year.

However, as a new industry, the biomass power generation is facing challenges. By analysing the internal and
external environment of biomass power generation, especially the policies and the resources, this paper tries to
describe the current situation accurately. The objective is to identify the, 1) types of biomass used indifferent Asian
and European counties and the advantages of using biomass as energy source, 2) different constraint and risks
associated to biomass supply chain management and, 3) the measures to improve sustainability of biomass supply
chain.

2.0 Methodology

This paper summarized the biomass utilization for bioenergy production and its supply chain constraints in
Asian and European countries.The methodology adopted includes searching and retrieving the appropriate literature,
analysing and synthesizing the findings. All references related to biomass supply chain were searched using
different criterion and were sorted according to their relevance to particular sections in this paper. Literatures were
retrieved from Science Direct, IEEE, Springer, and Google Scholar. A total of 48 journals were selected for
reference out of which 7 articles were published within 2005-2010 and almost 41 articles were found within 2011-
2015. This shows growing interest in biomass utilization for energy generation.
916 Aryama Raychaudhuri and Sadhan Kumar Ghosh / Procedia Environmental Sciences 35 (2016) 914 – 924

3.0 Literature Survey

Primary feedstock for biomass to bioenergy can be broadly classified into terrestrial and aquatic biomass. The
terrestrial biomass can be generally categorized into two groups. The first group includes corn grain, sugarcane, soy
bean, oil seed, etc. These are rich in sugar or lipids, and have high yields after converted into bioethanol or
biodiesel. The second group of terrestrial biomass, the cellulosic biomass (agricultural residues, forest residues and
energy crops), can avoid adverse impacts on food supply, because they are non-starch, non-edible and non-food
feedstock. Agricultural residues are typically plant parts left in the field after harvest (e.g., corn stover), as well as
the secondary residues like manure and food processing wastes. Forest residues are leftover wood or plant material
from logging operations, landclearing, as well as secondary residues like mill wastes. Energy crops (e.g., poplar,
switchgrass, Jatropha, Cassava etc.) are fast-growing trees and perennial grasses specifically grown for energy uses
[Yue, D et al, 2014].Aquatic biomass (photosynthetic algae and cyanobacteria), [Tan, Z et al, 2015]can contain high
levels of oil (lipids or triacylglycerides); making it a promising feedstock for the production of renewable gasoline,
diesel, and jet fuel.A brief description of the identified biomass and their conversion technologies to biofuels is
depicted in Fig. 1.

Fig. 1. Conventional conversion pathways from biomass to biofuel products

Biomass is a renewable resource and when used as a fuel it reduces need for fossil fuels for the production of heat,
steam, and electricity for residential, industrial and agricultural use. Also recycling of biomass waste reduces
pollution. Biomass used in different Asian and European countries and their advantages have been tabulated below.
Table 1: Types of biomass used in different Asian and European counties

Conversion process and

Country Biomass resources Advantages of using biomass as energy source References
final product
Grown Biomass & ƒ Restoration of contaminated lands. Bio diesel and bio gasoline [Habibullah, M
Energy Crops ƒ Low initial ignition and combustion temperatures by extraction and treatment. et al, 2015]
Kingdom
United

during conversion. Calorific value of energy crops are Corn, starch crops are
around 38-40 MJ/kg converted to ethanol.
Plant Based ƒ Use of non-edible biomass. Combustion, gasification, or [Kretschmer, B
Agricultural ƒ Huge and cheap resource for production of biofuels, liquefaction to produce heat, et al, 2012]
 Aryama Raychaudhuri and Sadhan Kumar Ghosh / Procedia Environmental Sciences 35 (2016) 914 – 924 917

Conversion process and

Country Biomass resources Advantages of using biomass as energy source References
final product
Residues sorbents, fertilizers and recovery of certain compounds. syngas and liquid fuel.
Animal Based ƒ Heat energy that one gets from biogas is 3.5 times the Anaerobic digestion [Welfle, A et al,
Agricultural heat from burning wood. produces biogas. 2014]
Residues ƒ Calorific value of animal manure is around 35-38
MJ/kg.
Waste Resources ƒ Reduction of biomass residues and wastes. Pyrolysis of MSW produces [Verma, M et
ƒ Calorific value could be 30.6-32.09 MJ/kg depending bio oil and biochar. al, 2012]
on the composition.
Forestry biomass, ƒ Wood can be used to produce heat. Gasification to produce [Santamarta,
agricultural waste. ƒ Less wastage in landfills. syngas. J.C et al, 2014]
Spain

Energy crops ƒ Helps in restoration of contaminated lands by Used for heat, energy, [Dinica, V,
improving soil quality. bioethanol production. 2009]
ƒ It can be produced with lower input of fertilizers,
pesticides, and energy.
Crop residues and ƒ Huge biomass resources in China (700 million tons of Direct combustion, [Wen, W et al,
Straw straws /year). gasification or pyrolysis 2015], [Qiu, H
ƒ Increase farmers’ incomes and resolve air pollution which produces heat, syngas et al, 2014]
caused by burning crop residues in the open field. and bio oil respectively.
ƒ Calorific value is around 28.05 MJ/kg
China

Energy crop ƒ Favourable to environment protection and sustainable It is used for bio diesel [Yang, J et al,
(Jatrophacurcas) development. production 2014]
Forestry biomass: ƒ The forestry biomass resource has properties of Gasification product is [Tan, Z et al,
Shrub residues, abundant species, strong regeneration and high syngas. 2015]
wood, algae etc. combustion value
Palm oil residue: ƒ Malaysia is the second palm oil producer in the world Mainly pyrolysis to produce [Kong, S et al,
Shell, Fiber, Empty after Indonesia, generating a significant amount of bio-oil or biochar. 2014]
fruit brunch. palm oil waste either in the plantation or in the mills.
Calorific value of palm oil shell, fiber and empty fruit
brunch is 23.51, 22.07 and 21.52 MJ/kg .
Malaysia

Sugarcane bagasse Calorific value is 18.11 MJ/kg Produces heat/ power by [Shafie, S. M et
direct combustion. al, 2012]
Paddy residue: ƒ Calorific value of rice husk and rice straw is 15.8 and Direct combustion or [Shafie, S. M et
Rice husks 14.71 MJ/kg respectively. gasification to produce heat al, 2012]
Rice straw and syngas.
Forest residue: ƒ Calorific value of wood ranges from 16-19 MJ/kg Gasification and combustion [Mekhilef, S et
Logging residue, to produce syngas and heat. al, 2011]
Plywood, Sawmill
Bamboo biomass, ƒ Calorific value of bamboo biomass is 19.4 MJ/kg Gasification to produce [Darabant, A et
Thailand

woodchip,Rice syngas al, 2014],

husk [Assanee, N et
al, 2014]

Animal dung ƒ Animal dung is a large biomass resource and dried Anaerobically digested to [Mirza, U. K et
Paki-
stan

dung has the same energy content as wood. The produce biogas al, 2008]
calorific value is 12 MJ/kg.
Rice husk ƒ India produces between 18 and 22 million ton of rice Gasification to produce [Verbong, G et
husk annually. syngas al, 2010]
Waste wood ƒ Wood processing wastes can be recycled. Syngas by gasification [Singh, N. B et
India

al, 2014]
Agricultural ƒ Abundant agricultural residue produced in India and Gasification in gasifier to [Cardoen, D et
residue using it for bioenergy production can reduce get syngas al, 2015],
environmental hazard caused by open burning. [Mafakheri, F
et al, 2014]

Despite the benefits of using biomass, technical andeconomic challenges hinder its intensified use. Biomass
arescattered over wide regions which increases the collection, handlingand transportation costs and restrict the
competitiveness of biomass against other energy sources. A cost efficient design of the biomass supply chain is
critical to overcome these challenges.
918 Aryama Raychaudhuri and Sadhan Kumar Ghosh / Procedia Environmental Sciences 35 (2016) 914 – 924

Table 2: Constraint and risks associated to biomass supply chain

Biomass
Country Barriers to increasing resource availability for the bioenergy sector References
resources
Grown ƒ Lessawareness to incentive schemes, reluctance to move away fromproducing traditional [Wright, D. G
Biomass & agricultural crops. et al, 2014]
Energy Crops ƒ Cash flow problems between planting and harvests and the lack of links between
biomassproducers and markets.
ƒ Lack of processing infrastructure to meet resource demand.
Plant Based ƒ Immature supply chains and markets for straw forbioenergy purposes. [Wright, D. G
United Kingdom

Agricultural ƒCompetition of bioenergy sector with exiting market for feedstock supply. et al, 2014]
Residues ƒLack of suitable machinery for handling and processing of straw residues.
ƒResource variabilitydue to varying climatic conditions and harvestyields.
Animal Based ƒThe transportation slurries and manures to great distance isuneconomicaland energy [Welfle, A et
Agricultural inefficient and it is collected for a limited number of months. al, 2014]
Residues ƒ Anaerobic digestion systems may need addition of energycropsfeedstock.
ƒ Capital costs of digesters and associated infrastructure is high.
ƒ Resource acquisition from local sites can behighly complex and costly.
Waste ƒ Energy generation process is very costly comparing to landfill option. [Welfle, A et
Resources ƒ Supply of the specific waste feedstock is restricted by the waste hierarchy and the UK's al, 2014]
waste policies primary focusto reduce and recycle.
ƒ Social opposition led by local communities and the lobbying ofenvironmental action groups.
Forest residue ƒ High transportation cost; it is complicated to access in some areas forest use. [Santamarta,
ƒ Price per Kwh produced high compared to other types of generation. J.C et al, 2014]
ƒIgnorance and mistrust towards new unproven technologies.
Spain

Energy crops ƒEconomic factors related to high biomass collection, transportation, storage and processing [Dinica, V,
and cost and risky supply contracts. 2009]
agricultural ƒ Farmers hesitation to switch to a completely new type of cultivation, such as dedicated
waste energy crops, for which costs and profits are yet unknown.
Forest biomass ƒ Depletion of soil nutrients [Blennow, K et
Europea

countrie

ƒ High moisture content of woody biomass makes transportation expensive. al, 2014],
other

ƒ Lack of government incentives. [Lundmark, R

et al, 2015]
Crop residues ƒFarmers are not willing to sellstraws in lower price so high cost of feedstock for China's [Wen, W et al,
and Straw Straw power plant (SPP) is a potential barrier. 2015], [Qiu, H
ƒ Brokers buy strawsfrom farmers may sell them to SPP with higher price. et al, 2014]
ƒLack of core technologies and dependence on imports for keyequipment.
ƒ Lack of supply chain management and fewer financing channels.
ƒHigh construction cost of biomass power plant.
China

Forestry ƒ The forestry biomass transactions and storage costs are relatively high. [Zhao, Z. Y et
biomass: ƒ The existing conversion and processing technology are not mature for China. ƒHigh costs of al, 2012], [Tan,
Shrub cellulosic feedstock pretreatment and cellulose degradation. Z et al, 2015]
residues, ƒExcessive investment, high operating costs, seasonal restrictions etc.
wood, algae ƒ Local governments pay noattention to the open burning of biomass.
etc. ƒ Laws and regulation, subsidies and tax preferential policies has been formed by Chinese
government are still inadequate.

oil palm ƒOil palm biomass contains substantial moisture and transporting wet biomass isenergetically [Loh, S. K et
biomass inconvenient and costly with increasing distance. al, 2013],
ƒEFB requires drying to prevent biodegradation prior to pyrolysis process, which increases [Chang, S. H,
the production cost and equipment's investment. 2014], [Umar,
ƒMost of the existing plants have incompatible installation and not capable of generating M. S et al,
Malaysia

sufficient energy for connection to the main grid. Also lack of a feasible interconnection 2014], [Ng, W
scheme and excessive cost for a grid extension line. et al, 2012]
ƒ The Malaysian government is subsidising 31% of the domestic fuel price which in turn
makes the electricity generating cost from conventional sources lower than the power
production cost from renewable fuels.
ƒ Clearance of lands or forests for oil palm plantation is threatening some of the last habitats
of endangered species.
 Aryama Raychaudhuri and Sadhan Kumar Ghosh / Procedia Environmental Sciences 35 (2016) 914 – 924 919

Biomass
Country Barriers to increasing resource availability for the bioenergy sector References
resources
Rice husk ƒ Several agencies with different roles and responsibility, do not complement each other [Delivand, M.
andno policies to address smaller scale biomass project. K et al, 2011],
ƒLack of standards on bioenergy systems and equipment. [Kerr, S. A et
ƒ Most biomass energy projects are considered highly risky by the financiers. al, 2011]
Thailand

ƒ Accurate information on biomass availability, andexisting uses and related information such
as burning characteristics,collection, handling, transportation costs, and etc.is insufficiently
available.
ƒ Misperception of renewable energy among Thai people is crucial as they oppose rice husk
power plant in the central Thailand.

Animal dung The biogas project failed due to [Mirza, U. K et

• Withdrawal of government financial support. al, 2008],
Pakistan

• Lack of technical training to the communities and awareness rising and experience sharing. [Bhutto, A. W
• High cost of the technology. et al, 2011]
• Lack of motivation and inadequate demonstration.
• Inadequate communities’ (beneficiaries’) participation.
Waste wood ƒ Poor understanding of managing moisture content; biomass drying techniques are not well [Verbong, G et
established. al 2010], [.
ƒ The average life span of small scale gasifier was very short; some of them were damaged Singh, N. B et
due to overheating. al, 2014]
ƒ Misunderstanding and poor communication between government and different stakeholders
and political instability.
ƒ Reduction of government support and subsidy, difficulty to compete with cheap or free
India

electricity.
Rice husk ƒ Clogging the throat of gaisifier and lack of technical personnel. [Verbong, G et
ƒ Lack of clear conditions and terms for grid connections and political interference in the al 2010]
energy regime creates too much uncertainty for investors and end-users.
Other • Biomass price increases very fast after commissioning of power project and therefore [Cardoen, D et
agricultural government tariff policy needs an annual revision. al, 2015]
residue • Lack of mechanization in Indian Agriculture Sector.
• Defragmented land holdings and most of the farmers are small or marginal.

Table 2 identifies the problems related to biomass supply chain and depicts the obstacles which are limiting
biomass power generation in different countries with respect to the specific feedstock used. The risks are mainly
associated to broader areas likeproduction of feedstock, technological barriers, market for biomass power, economic
and environmental aspect and policy regulation. These challenges are their mitigation measures are discussed in the
next section.

4.0 Results and Discussion

4.1 Technologies to convert biomass to energy

It is evident that a variety of feedstock is available for conversion into bio fuel as well as power generation
applications and a variety of processes exists for biomass conversions [Singh, J et al, 2010]. The conversion
technologies can be listed under three categories, viz. Thermo-chemical, Bio-chemical and physicochemical process.

Thermo-chemical conversion:

Biomass can be used as a fuel for direct combustion to produce heat and electricity, or it can be converted to
other useful forms of energy products prior to its utilization as a source of energy. This includes liquefaction,
gasification and pyrolysis [Lim, J. S et al, 2012, Kumar, A et al, 2015]. Combustion is the burning of biomass in air,
and it is used to convert the chemical energy stored in biomass into heat energy, mechanical power and also in
electricity by different process and devices e.g. furnaces, stoves, steam turbines, boilers, etc. [Singh, N. B et al,
2014]. Feedstock used are woodchips, sawdust, bark, hogfuel, bagasse, straw, municipal solid waste (MSW) etc.
Liquefaction produces mainly liquid and some amounts of gaseous components at temperature and pressure ranges
of 250–350°C and 700–3000ௗpsi, respectively, in the presence of alkali metal salts as catalyst [Verma, M et al,
920 Aryama Raychaudhuri and Sadhan Kumar Ghosh / Procedia Environmental Sciences 35 (2016) 914 – 924

2012].Pyrolysis occurs under pressure and suitable typical operating temperature range between 350oC and550oC in
the absence of air [Lim, J. S et al, 2012] and produces bio-oil if flash pyrolysis is used in which the biomass has a
short residence time in the reactor. The extreme cases of pyrolysis are termed as carbonization, where biomass is
completely converted to bio-char [Sadaka, S et al, 2009].Gasification requires temperatures of about 800°C and this
takes place in two stages. In the first stage, the biomass is partially combusted to form producer gas and charcoal. In
the second stage, the CO2 and H2O produced in the first stage are chemically reduced by the charcoal, forming CO
and H2. Syngas can be used in internal combustion (IC) engine to produce heat, or in a cogeneration system to
produce heat and electricity

Bio-chemical conversion:

The bio-chemical conversion process includes anaerobic digestion which produces biogas and alcoholic
fermentation by microorganism which produces ethanol. Fermentation is used commercially on a large scale to
produce ethanol from a variety of biomass feedstock including sucrose rich crops such as sugarcane and sugar beet,
starch-rich crops such as maize, wheat and grain sorghum and lignocellulosic materials such as woody biomass,
herbaceous perennials etc. [Singh, N. B et al, 2014;Lim, J. S et al, 2012]. Solid residue obtained from this process
can be given to cattle to feed and bagasse which is obtained from sugar cane can be used for gasification or as a fuel
for boilers.During anaerobic digestion process, microorganisms convert biomass into biogas, a mixture of methane
(60%) and carbon dioxide (40%), in the absence of oxygen. The biogas products are subsequently utilized as fuel to
generate heat and energy. AD is a commercially proven technology and is widely used for treating high moisture
content organic wastes, i.e. 80-90% moisture. High moisture herbaceous plants (vegetables, sugar cane, sugar beet,
corn, sorghum, and cotton), waste from food industry and manure are most suitable for anaerobic digestion [Lim, J.
S et al, 2012].

Physicochemical conversion:

This process includes mechanical extraction and transesterification to obtain bio-oil and biodiesel as end
product.Extraction is a mechanical conversion process in which oil is produced from the seeds of various biomass
crops such as groundnuts, cotton, etc. The process produces not only oil but also a residual solid or ‘cake’, which is
suitable for animal fodder. Transesterification is the most common form of chemical-based conversion. It is a
chemical reaction through which fatty acids from oils, fats and grease are bonded to alcohol. This process reduces
the viscosity of the fatty acids and makes them combustible. Biodiesel is a common end-product of
transesterification.

4.2 Existing Problems of Biomass Supply Chain in Asian and European Countries

The existing sustainability issues of supply chain in different countries related to different feedstock can be
broadly classified into operational, economic, social and policy and regulatory challenges [Cambero, C et al, 2014].

Operational Challenges

Feedstock unavailability: Inefficient resource management and the government non-intervention approach are
likely to be the key factor that could hinder the expansion of the biomass industry [Umar, M. S et al, 2014]. Small
developers and plantation owners are relying on third party supply, which will trade at market price. Diversified use
of biomass, competition with other industries, and use of the wastes for other means such as mulching, composting
and animal feeding; make the supply problem worse [Kong, S. H et al, 2014]. Regional and seasonal availability of
biomass and storage problem: The seasonal availability of biomass cannot guarantee a continuous supply and results
in the seasonal variation of the fuel price [Liu, J et al, 2014]. As the energy density of biomass is low, acquisition of
land for harvesting and storage is difficult. Pressure on transport section: Some, biomass contains moisture and
transporting wet biomass from the plantation source to the production site becomes energetically unfavorable and
costly with increasing distance [Daud, W. R. W et al, 2010]. Inefficiency of conversion facility and core technology
and equipment shortage: Technical barriers were resulted from the lack of standards on bioenergy systems and
equipment, especially where the energy sources are so diverse. Some countries like China, Thailand import the
 Aryama Raychaudhuri and Sadhan Kumar Ghosh / Procedia Environmental Sciences 35 (2016) 914 – 924 921

equipment, such as incineration boiler and the fuel conveying system [Zhao, Z. Y et al, 2012]. Appropriate
pretreatment required to prevent biodegradation and loss of heating value [Chang, S. H, 2014], not only increases
the production cost but also in equipment's investment [Loh, S. K et al, 2013].

Lack of a feasible interconnection scheme: An excessive capital cost for a grid extension line would prevent
biomass renewable producers from exporting their excess power to the grid, due to low economies ofscale of the
biomass project [Ng, W et al, 2012]. Immature industry chain: The supply chain between the biomass owners,
technology providers, investors and the potential users have not been technically and commercially developed. It is
virtually impossible to get long term contracts for consistent feedstock supply in reasonable price [Loh, S. K et al,
2013]. The low ability to gain profits is also a reason that many upstream firms lack driving forces in the technology
reform. Furthermore, the unstable fuel price, coupled with the poor cooperation with the downstream electricity
enterprises, makes a lot of plants get into heavy debts [Liu, J et al, 2014].

Economic Challenges

Feedstock acquisition cost: The biomass resources are scattered and in order to reduce the cost of transportation,
biomass projects are eager to occupy land close to the source, leading to centralization of biomass projects. This
break the balance between supply and demand, thus intensify the competition of the fuel market and increasing
demand leads to higher price of the feedstock. Limiting financing channels and high investment and capital cost:
Because of decentralized capital, poor profitability, frequent fluctuations of international crude oil prices and high
market risk, seldom investors took an initiative part in the biomass power generation industry [Liu, J et al,
2014].The biomass power generation is subjected to constraints of excessive investment and high operating costs
[Tan, Z et al, 2015]. Biomass pre-treatment technologies have extra costs, which scattered farmers and small scale
fuel companies may not be able to afford.

Social Challenges

Conflicting decision: Lack of coordination between stakeholders on different level of biomass supply networks
is another main constrain. Decision making on selection of supplier, location, routes & technologies is crucial and
needs proper communication. By strengthening leadership and implementing the responsibilities, the stakeholders
should be made fully aware of the economic, environmental and social wealth of resource utilization [Tan, Z et al,
2015]. Land use issues:Land use issues, specifically deforestation that leads to the loss of ecosystems preservation
and the homes of indigenous people, are capturing the attention of some environmentalists [Ng, W et al, 2012].
Impact on the environment: Clearance of lands or forests for energy crops plantation is threatening some of the last
habitats of endangered species [Ng, W et al, 2012]. The biomass plantation also depletes nutrients from soil,
promote aesthetic degradation and increase the loss of biodiversity. Other social impacts will result from installation
of energy farms within rural areas like potential influx of labour and increased need of services, increased traffic on
rural roads, changes in aesthetics and recreational value etc. The potential negative social impacts appear strong
enough to ignore the benefit of new and permanent employment generation [Sarkanen, K.V et al, 2013].

Policy and Regulatory Challenges:

Policies: At present, the government is subsidizing the domestic fuel price which in turn makes the electricity
generating cost from conventional sources lower than the power production cost from renewable fuels. The lack of
incentive mechanism is another downside. Biomass energy industry is a high-risk industry, but the effect of
incentive policies for overcoming market risk is not obvious [Tan, Z et al, 2015]. System: There are no specific
rules to regulate the work of comprehensive utilization of biomass resource, and there are no specific penalties for
not using behavior that should be comprehensively used [Xingang, Z et al, 2013]. Regulation: There is no special
mechanism to manage the development of biomass resources industry and no specialized department to manage the
implementation of relevant national standards and policies.
922 Aryama Raychaudhuri and Sadhan Kumar Ghosh / Procedia Environmental Sciences 35 (2016) 914 – 924

4.3 Plans and Strategies to Promote Biomass Utilization for Energy Production

Suitable project site selection: Storage and transportation problem has been identified as the main barrier of
biomass supply chain whereas, on site generation of energy can eliminate the transportation and collection cost
[Umar, M. S et al, 2014]. Energy development departments, especially governments at all levels, should reorganize
biomass resources in all regions to promote their supervision and management and thoroughly investigate the
current scenario before approving any biomass project [Sadaka, S et al, 2009]. Expanding financing channels:
Government should cut down investment barriers and finance the biomass industry from the capital market at home
and abroad. By strengthening cooperation with international organizations investment should be encouraged [Cui, H
et al 2012]. Up gradation of technology and proper resource utilization: Proper research and development system
should be constructed in order to grasp core technology and avoid import of equipment. Also government should
pay attention to the proper use of the biomass restricting open burning, which will attach importance to economic
growth as well as environmental protection.

Construction of a mature industrial chain: A mature industry chain is necessary, which includes raw material
purchase, storage, transportation, generation, selling and waste processing. There should be a clear understanding
between the different stakeholders associated with biomass project. Direct purchasing pattern where farmers and
plant owners do the feedstock transaction directly can reduce the feedstock cost due to elimination of third party
brokers and this will help stabilizing the feedstock supply imbalances. Also in order to establish a stable mechanism
for power selling, the enterprises need more communication with downstream firms [Liu, H et al, 2008].

Community participation and public awareness: Promotional campaigns about the benefits of renewable energy
programs can influence the decision of different agency about participation and investment in the industry.
Government can also exploit media and internet to deliver information which will reach to wider audience. The only
foreseeable problem was that small plants without modern facilities might experience limited access to public
information due to low internet penetration [Umar, M. S et al, 2014]. Public awareness can be enhanced by
including benefits of renewable power generation into primary education. In this way younger generation would
develop a keen interest about waste management which in turn will save the environment.

Development of relative policies and strengthen support: Renewable energy is important in improving national
economy and protecting the environment. At present, renewable energy industry cannot entirely participate in the
competitive market; it needs intervention from government in allocating resources. Government should include a
carbon tax for conventional power generation, transfer some of the conventional energy subsidy, differentiate the
tariff level by considering the location and local conditions of the plant site to promote the renewable market and
imposing a levy for exporting fossil fuels.

The bioenergy sector comprises a complex set of technologies and a thorough knowledge and expertise on the
equipment handling is important to build and maintain bioenergy plant. Government should pay attention in the
technology innovation and provision of funds to R&D. Also the gap between research and implementation should be
minimized by promoting collaboration between industry and academia. The barriers identified relating to different
sectors must be discussed among different stakeholders and it should be ranked according to its priority to develop
targeted policies. For example subsidy as a part of targeted policy, must be time bound and should only be
implemented after considering its foreseeable results. Subsidy should not be best on capital cost it should be
associated with output and performance guarantee. On the other hand, proper decision making on the supply chain
management is important to run a successful bioenergy plant. All the aspects of supply chain should be taken into
account from the biomass and land availability to the end market demand. For example, if biomass is not available
in abandon then, to reduce the transportation cost, it is feasible to build two or three small bioenergy plant than to a
centrally located large bioenergy plant. Also improvement of the conversion technologies can reduce the production
cost and increase profit.
 Aryama Raychaudhuri and Sadhan Kumar Ghosh / Procedia Environmental Sciences 35 (2016) 914 – 924 923

5.0 Conclusion

The development and utilization of renewable energy are paid more attention in developed and developing
countries. Firstly, this paper summarized and discussed the current situation of biomass power generation in Asian
and European countries from several aspects, such as type of biomass utilized, resource distribution, calorific value
and other advantages. Secondly, although the biomasspower industry is developing rapidly at present, it also shows
some problems, such as the high costs of fuel procurement and generation. Technology, environment, policies and
financial support can also play a role in the development of biomass industry. Last but not the least, this paper
offered several recommendations for future development on the relevant fields, such as cost, strategic planning, and
policy.

6.0 Acknowledgement

Authors acknowledge the support provided by the, a)Royal Society – DST funded India – UK scientific
Seminar on “Sustainable Energy Recovery from Biomass” held in February 2015 at Jadavpur University, b) UGC -
UKIERI Thematic Partnership project “MSW to Energy – design of decision support system (DSS) for
implementation” carried out at Jadavpur University, India and Aston University, UK funded by UGC, India and
British Council, UK and c) the International Society of Waste Management, Air and Water (ISWMAW).

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