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8. BIOMASS FOR POWER GENERATION Many biomass power generation options are mature, commercially proven technologies with long track records. They include direct combustion in stoker boilers, low‐percentage co‐firing, anaerobic digestion, municipal solid waste incineration, landfill gas and combined heat and power. Other less mature technologies, such as atmospheric biomass gasification and pyrolysis are only at the beginning of their deployment, while others, such as integrated gasification combined cycle, bio‐refineries and bio‐hydrogen, are only in the demonstration or R&D phases. The potential for biomass cost reductions is therefore very heterogeneous. While only marginal cost reductions can be anticipated in the short term, the long‐term potential for cost reductions from those technologies that are not yet widely deployed is good. In order to analyse the use of biomass for power generation, it is important to consider three critical components of the process: • Biomass feedstocks: These come in a variety of forms and have different properties that impact their use for power generation. • Biomass conversion: This is the process by which biomass feedstocks are transformed into the energy form that will be used to generate heat and/or electricity. • Power generation technologies: A wide range of commercially proven power generation technologies that can use biomass as a fuel input are available. The following analysis focuses on the costs of the last two components and briefly discusses feedstock costs. The source and sustainability of the biomass feedstock is a very important determinant of a biomass power generation project’s economics and success. 8.1 BIOMASS FEEDSTOCKS Biomass is the organic material of recently living plants such as trees, grasses and agricultural crops. Biomass feedstocks are very heterogeneous and their chemical composition is highly dependent on the plant species. This can be a problem since, although some combustion technologies can accept a wide range of biomass feedstocks, others require much more homogeneous feedstocks. Secure, long‐term supplies of low‐cost, sustainably sourced feedstocks are critical to the economics of biomass power plants. Feedstock costs can be zero for wastes that are produced onsite at an industrial installation or less than zero for those which would otherwise incur disposal costs (e.g. black liquor at pulp and paper mills or bagasse at sugar mills). Feedstock costs can be modest where agricultural residues can be collected and transported over short distances, although the low energy density of biomass (such as wood chips and pellets) can greatly increase costs where significant transport distances are involved. Feedstock costs can represent 40% to 50% of the total cost of electricity produced by biomass technologies. The lowest cost feedstock is typically agricultural residues such as straw and bagasse from sugar cane, as these can be collected at harvest. For forest residues, the cost is dominated by collection and transportation costs. The density of the forestry residues has a direct impact on the radius of transport required to deliver a given total energy requirement to a plant. The low energy density of biomass feedstocks tends to limit the transport distance from a biomass power plant that it is economical to transport the feedstock. This can place a limit on the scale of the biomass power plant, meaning that biomass power plants struggle to take advantage of economies of scale in its generating plant because large quantities of low‐cost feedstock are not always available. 66 Renewable Power Generation Costs in 2012: An OverviewPDF Image | International Renewable Energy Agency
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