Torrefied Biomass Pellets: An Alternative Fuel for Coal Power Plants L.J.R. Nunes, J.C.O. Matias DEGEIT, Univ. Aveiro, and C-MAST/UBI, Covilha, PORTUGAL lnunes.1971@gmail.com; jmatias@ua.pt J.P.S. Catalão INESC TEC and FEUP, Porto, C-MAST/UBI, Covilha, and INESC-ID/IST, Lisbon, PORTUGAL catalao@fe.up.pt Abstract—This paper aims to make a comparison between the logistics costs of buying Wood Pellets (WP) and Torrefied Biomass Pellets (TBP) produced in Portugal and exported to the major consumer markets of Northern Europe. The starting point is to determine the value of a shipload of WP and TBP delivered to a North European port and loaded in Aveiro, the main Portuguese WP expeditor port. Torrefaction implies higher energy and bulk density pellets, which contributes to increase the logistics costs associated with them. The loss of mass is greater than the loss of energy. These changes in bulk and energy densities are an advantage in terms of logistics: more tonnes per unit of volume and more energy per tonne will decrease the transportation cost per energy unit. The analysis carried out in this paper determines the energy in gigajoules (GJ) per tonne and all the comparisons are based on the cost per energy unit. This analysis is supported by real data collected in the Argus Biomass Markets report. Index Terms—Torrefied biomass pellets (TBP), torrefaction, wood pellets (WP), energy costs. I. INTRODUCTION The search for alternative sources for the production of thermal energy with less environmental impacts means that biomass has started to reach a very important role compared with other forms of renewable origin energies. Biomass therefore has great importance for the production of thermal energy, and most of this biomass comes directly from forest and forestry operations in all their several forms, mainly being processed into wood chips after the falling of the trees [1]. Actual society development, providing increasing levels of comfort to the people, inevitably leads to an increase in energy consumption in all its forms, requiring a constant and permanent supply. This demand mainly for fossil fuels, traditionally more available and also cheaper, caused a gradual but effective increase in market prices, making it a key factor for competitiveness between countries, since companies competitiveness depends on the energy cost [2]. This factor directly interferes with the balance of external transactions, giving advantages to countries or industry sectors that were able to bridge the differential production cost with sustainability measures, using alternative energy sources, improvements and modernization in production processes and measures of energy efficiency control [3]. In addition to the direct energy consumption costs, the costs associated with environmental damage related to fossil fuels consumption are also under the spotlight, mainly those related to greenhouse gases emissions released into the atmosphere through the combustion of these fuels, especially CO 2 , as the most recognized by the public, but the list extends to other, equally or more harmful to the environment and the health of populations than the aforementioned [4]. Use of wood pellets (WP) as a sustainable energy alternative is an effective instrument in the fight against climate change [3]. It represents a positive globalization of wealth and local employment creation. Wood as a primary energy source responds to available evidence and to a need for energy, especially relevant at a time of deep economic crisis, which has forced many to rethink future strategies [4]. The most important obstacle in the use of such resources is the high cost of production, supply and homogenization of use if problems in the various energy conversion technologies are not to be caused [2]. During the last few years, several companies have invested in WP plants that will be used for heat and electricity production. Global WP production reached 23.6 million tonnes in 2013. As for 2014, according to related research study, the global production capacity of wood pellets increased by 8% and the global capacity of wood pellets reached 25.5 million tons [5]. In 2013 the European Union remained the largest wood pellet supplier and producer, and produced 12.0 million tons, with Germany, Sweden, Latvia, and Portugal as the top producers. Wood pellets in Portugal are produced mainly for export and the country has increased its production since 2008, exporting almost the entirety of its pellets to the United Kingdom, Netherlands, Belgium and Denmark [6]. The Portuguese pellet market consists of small direct consumers with small and medium peaks in the winter period from October to April [7].