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Cost-Effectiveness of Distributed Generation Technologies

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Cost-Effectiveness of Distributed Generation Technologies ( cost-effectiveness-distributed-generation-technologies )

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Cost-Effectiveness of Distributed Generation Technologies Several critical assumptions were made in sizing the sample biogas clean up system and estimating costs. For example, the system sizing assumes that the incoming biogas has a flowrate of 360 standard cubic feet per minute (SCFM) and contains 500 PPMV H2S (a rough approximation for landfill gas). The cleanup requirements bring the H2S content down to 50 PPMV for reciprocating engines and 5 PPMV for turbines. Cleanup requirements for fuel cells were treated separately due to the high purity requirements of the gas. Capital costs for gas cleanup systems are based on quotations received from a vendor (Pioneer Air Systems) and levelized according to gas flow rate as described above. Figure A-5: Biogas Cleanup Costs as a Function of Flow Rate As expected, Figure A-5 shows that DG technologies with the strictest cleanup requirements have the highest capital gas cleanup costs. It is also clear that as the system size increases (larger flow rate), the costs start to become prohibitive. Operating and maintenance costs for the cleanup systems were treated separately. O&M costs typically include filter replacements, regular oil changes, and maintenance to the cleanup systems, electricity operating costs, and labor costs. To maintain consistency with the gas clean up system capital costs, O&M costs were also taken directly from the Pioneer Air Systems quotes.7 O&M costs included filter replacements and regular maintenance (including oil changes and compressor maintenance for the turbines). 7 cost estimates from other sources, including EPA‘s AgStar Program and the CEC‘s Dairy Biogas Program. However, capital costs and O&M costs developed for this example were checked against capital costs and O&M Itron, Inc. Appendix A-9 DG Technologies

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