Background –
The client, a global top 5FMCG company, was already using significant amounts of biomass per day (about 50,000 T per annum in its three plants together), and was planning to further increase its consumption. In addition, it was planning to shift to a CHP boiler.
With this emerging scenario in mind, the client was keen to review and re-evaluate its entire biomass supply chain, in order to arrive at an optimal supply chain strategy. In this context, it approached EAI to conduct a comprehensive biomass supply chain review and optimization. The two main objectives of this assignment were:
- Determining Optimal Biomass Supply Chain
- Ensuring Biomass Best Fit for Boiler Technology
What we did –
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In their shift from the use of coal to biomass in their boilers used for heating applications, we assisted the client in
· Analysing their existing biomass vendors and suggesting new vendors we identified
· Analysing the current biomass feedstock and suggesting additional feedstock they could try
· Arriving at the optimal processing of the biomass briquettes for use in their current boilers and soon-to-be installed CHP boilers.
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EAI BioMetric Team’s Work –
- Extensive Secondary research for biomass and vendor availability in all the three locations – two in north India and one in south India
- Extensive interactions with the client top management in charge of procurement to constantly understand their strategic perspectives and including these in the research study
- Meetings with over 30 vendors, about 10 each for each location
- Interactions with the client’s engineering team and with the vendor who is building their new boiler to ensure that we are able to come up with the optimal biomass set
- Comprehensive cost breakup analysis of the biomass supply chain, from the farms to the briquetting centers to the factory. We also developed effective financial and logistical modeling and scenario analyses models to arrive at optimal decisions for both biomass feedstock and vendors.
- Did a thorough analysis with the client of all the new biomass feedstock and vendors we had identified.
- Obtained quotations from vendors along with test reports
- Interactions with our own biomass design ex pert partners to explore what could be included in their new and upcoming CHP boiler design
- Ash Disposal – We undertook a special research to understand all the avenues available for sustainable ash disposal from the use of biomass and were able to suggest to the client a few more destinations (brick making units) to which the ash produced could be supplied.
How our work made a difference –
We were able to identify new biomass feedstock that could be used in two of the three plants; these new feedstock, in addition to having better calorific value per unit cost, also have the potential to improve the overall efficiency of the boiler operations, thus resulting in a much lower energy cost.
Overall, we expect the client’s cost of energy to go down by about 16% based on the complete list of improvements arising from the new combination of biomass, vendors and improved biomass logistics and processing. In terms of absolute numbers, the client is expected to have a saving of about Rs 3.4 crores/year from the changes made.
Read more about EAI’s BioMetric from here.