White Papers Supply Chain Challenges: BIOMASS | Page 5

BIOMASS ‘green’ - impacts profitability and reputation. Ensuring green certificates are issued so that eligible subsidies can be paid is critical to cash flow and financial performance; and ensuring large scale stocks of wood pellets are available to keep the generation facility operational are all new aspects and challenges to managing fuel supply chains effectively. Indeed, the supply chain security of electric power generation that uses biomass and liquid hydrocarbons for its fuel needs represents major operational risk. A ComTechAdvisory Whitepaper More complex supply chains increase planning, logistics, and data management needs. Monitoring, calculation, and reporting of GHG footprints and procurement activities are essential aspects of this issue. Incumbent E/CTRM solutions on the market have not sought to meet these requirements and have focused on purely trading activities, which addresses only part of the spectrum of risk faced by power generators and their suppliers. At the same time, the number of companies involved in these activities is increasing. Major power plant operators are in some cases not just consuming biomass but also trading in the biomass market too. Specialist biomass supply and logistics firms as well as brokers are trading biomass supplies from multiple international locations. A BIOMASS SPECIFIC E/CTRM SOLUTION This absence of functionality was seen as an opportunity by Generation 10 when they looked at the market and so they subsequently invested in configuring their platform, G10 Commodity Manager to fill the gap. The solution provides many of the requirements for traceability and supply chain optimization, specifically as it relates to biomass and other fuels. It provides all of the tools necessary to collate information, measure performance, and refine business processes. It can be used to track biomass from forest to generation through the entire supply chain, any certificates generated or traded in the process as well as the GHG footprint. This allows the generator to prove the power it generates meets the environmental and regulatory standards, and conforms to subsidy requirements. It can help manage sourcing, procurement, inventory forecasting, along © Commodity Technology Advisory LLC, 2017, All Rights Reserved.