IDENTIFYING ENVIRONMENTALLY PREFERABLE USES FOR BIOMASS

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IDENTIFYING ENVIRONMENTALLY PREFERABLE USES FOR BIOMASS ( identifying-environmentally-preferable-uses-for-biomass )

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BC Bugwood Envirochem Services Inc. steadily over past years and is currently (January 2006) at about US$1 per gallon. For this study a price of 30¢/l (CDN) is assumed, although this may be conservative when a 2010 application is considered. Various gasification processes produce significantly different syngas constitutions which in turn affects the economics of the process. Indirect fluidized gasification showed the best economics. The economics of the electrolysed hydrogen addition show significant improvements by decreasing CO2 removal cost while increasing the amount of methanol produced. Mobile units derived from the base case scenario will incur a large equipment cost increase. The only benefit to mobilization is a decrease in transportation cost. By partly utilizing methanol as a fuel for feedstock transport, transportation costs decrease from 11.4% of production cost to 10.5% (indirect gasification case). Eliminating feedstock transportation cost will only decrease production cost by 0.7% - not enough to make mobile units feasible. The added mechanical and logistical complexity of mobile units would most likely lead to higher maintenance costs and more down time than stationary units. The mobile unit would most likely have to consist of more than one trailer for the entire process from feedstock to methanol. This may be a benefit because it would allow for the sharing of the trailers between several processing sites, which could help maximize production: while processing goes on at one site, the gasification trailer could be operated at a second location while the cleaning and methanol synthesis could continue till it is completed. Table 4.6.5 Cost Analysis of Three 1000/BDT Stationary Gasification Scenarios. The third strategy involves hydrogen generation to balance the molecular species. Direct Fluidized Gasification with Air C$ per year Comments Total capital cost 79,437,116 Total of all equipment Salaries 1,040,000 20 people - average salary of $52,000/yr Maintenance 2,383,113 3% of capital cost annually Processing Cost 2,830,575 Chipping & Drying ect. Electricity 3,911,060 Processing & plant electricity Feedstock Harvesting 17,137,500 Harvesting cost at $68.55/BDT Feedstock Transport 202,500 Chip truck - 40 BDT capacity Product transport 2,359,488 Methanol train tanker transport Total cost 29,864,237 Revenue from Methanol 27,882,715 $0.30 per litre (methanol) Carbon credits 2,035,075 If applicable, $15 per tonne of CO2 Total revenue 29,917,790 Sale in BC Profit 53,553 ROI negative IRR over 10 years Profit ($40/m3) -9,308,947 ROI ($40/m3) negative Page 70

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