Operational Analysis and Optimization of a District Heating Plant Using Wood Chips

The transition from outdated biomass boiler systems to modern, efficient district heating technologies represents a critical pathway toward sustainable energy production.In this study, the replacement of obsolete solid biomass-fueled boilers with a new wood chip-based heating system in the district heating plant of Pale, Bosnia and Herzegovina, was analyzed under real-world operational conditions.Historical operational data, including annual fuel consumption, were obtained directly from the facility.The degree-day method was applied to evaluate the thermal efficiency of the former heating system and to estimate the annual fuel demand for the newly installed wood chip-based infrastructure.A key component of this transition involves the reliability and efficiency of the wood chip supply chain.Therefore, the logistical feasibility of securing a continuous, local, and renewable wood chip fuel source was examined, including the assessment of storage capacity and supply chain resilience.Furthermore, a scenario-based simulation was conducted to project the cost of heat production under varying fuel price conditions and market dynamics.Through this integrated approach, a replicable methodology was proposed for replacing legacy biomass heating systems with environmentally sustainable, economically viable district heating technologies based on locally sourced wood chips.The findings offer a practical roadmap for municipalities aiming to achieve energy transition targets through the adoption of locally available renewable energy sources, with particular emphasis on operational feasibility, fuel logistics, and cost-effectiveness.