Impact of cost of solid biofuels on the viability of their application to generate process heat in Mexico: a case study

Abstract

This study determines the cost of producing different biofuels such as wood chips and pellets. It evaluates the factors that determine the cost of solid biofuels (SBFs), such as raw material, location, and transportation cost. The analysis is carried out with two different raw materials, sawdust, forest residue and pruning, and takes into account three different locations: Durango, State of Mexico, and Jalisco. The production cost in USD per GJ is determined. This cost is compared with the cost of generating the same amount of energy using fuel oil to evaluate the circumstances under which the application of solid biofuel would be feasible. An elementary CO2 emissions analysis of transportation has also been developed to compare these emissions with those of the fuel oil currently used to evaluate the feasibility from an environmental point of view. Transportation largely determines the cost of production and the feasibility of applying solid biofuel. Some indications about the maximum distances that the SBF can be transported to its final use are provided.