Cost of Energy Technologies

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Cost of Energy Technologies ( cost-energy-technologies )

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26 Cost of Energy Technologies World Energy Council 2013 Incineration Incineration is the most straight-forward of the biomass generation technologies and involves burning a feedstock to produce heat, boil water and generate steam. Incineration in this report refers only to non-municipal-solid-waste incineration and requires the procurement of feedstocks for combustion. Due to the nature of the biomass feedstock supply chain costs vary depending on location. There are four main categories of feedstocks: agricultural res- idues, energy crops, forestry residues and wood pellets. Agricultural residues are typically viable feedstocks only when supply sources are located close by due to transport econom- ics (agricultural residues typically have a lower energy density than forestry residues). In Western Europe the dominant feedstocks are derived from forestry residues and wood pellets. Increasing retirements of coal power plants in the region are stoking increased interest in biomass-to-power incineration, but ensuring a stable long-term supply with price visibility is key to accessing the financing required to develop a plant. In India and Brazil, large sugar processing industries generate substantial bagasse that can be used for incineration. Biomass incineration capital costs are subject to significant economies of scale: small plants below 10MW can cost upwards of USD5m/MW while larger plants can drop as low as USD1.5m/MW. Landfill gas Landfill gas projects tap into the methane generated through waste composition by driv- ing pipes deep within the core of landfills and funneling the gas to generators for burning. Depending on the composition of the landfill, the gas generated is typically around 50/50 methane and carbon dioxide. Projects are initiated prior to the closure of the landfills and consist of vertical wells to collect gas and send it through a scrubber, a compressor and finally to a generator for combustion. Municipal solid waste Municipal solid waste (MSW) generation incinerates municipal waste to produce power. The economics of these plants differ from biomass incineration as rather than paying for feed- stock the plants actually receive gate fees as revenue for disposing of the waste, which vary with the availability of landfill space and the tipping charges at those locations. The US has around 75 waste-to-energy plants while Europe has more than 400. Gasification Gasification technologies turn organic feedstocks into gasses that can be burned to produce power through a process of heating them in an oxygen-constrained environment. Of the four types of biomass technologies included in this report, gasification is the least mature. Gasifi- cation plants typically use one of two main technologies: fixed bed or fluidised bed gasifiers.

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