Techno-Economic Assessment of the Use of Syngas Generated from Biomass to Feed an Internal Combustion Engine

Abstract

The focus of this study is to provide a comparative techno-economic analysis concerning the deployment of small-scale gasification systems in dealing with various fuels from two countries, Portugal and Brazil, for electricity generation in a 15 kWe downdraft gasifier. To quantify this, a mathematical model was implemented and validated against experimental runs gathered from the downdraft reactor. Further, a spreadsheet economic model was developed combining the net present value (NPV), internal rate of return (IRR) and the payback period (PBP) over the project’s lifetime set to 25 years. Cost factors included expenses related to electricity generation, initial investment, operation and maintenance and fuel costs. Revenues were estimated from the electricity sales to the grid. A Monte Carlo sensitivity analysis was used to measure the performance of the economic model and determine the investment risk. The analysis showed an electricity production between 11.6 to 15 kW, with a general system efficiency of approximately 13.5%. The viability of the projects was predicted for an NPV set between 18.99 to 31.65 k€, an IRR between 16.88 to 20.09% and a PBP between 8.67 to 12.61 years. The risk assessment yielded favorable investment projections with greater risk of investment loss in the NPV and the lowest for IRR. Despite the feasibility of the project, the economic performance proved to be highly reliant on the electricity sales prices subdue of energy market uncertainties. Also, regardless of the broad benefits delivered by these systems, their viability is still strikingly influenced by governmental decisions, subsidiary support and favorable electricity sales prices. Overall, this study highlights the empowering effect of small-scale gasification systems settled in decentralized communities for electric power generation.

Stochastic techno-economic evaluation model for biomass supply chain: A biomass gasification case study with supply chain uncertainties

“…Ngan et al [12] formulated a Monte Carlo simulation model to evaluate the financial profitability as well as the impact of various action plans as an attempt to decrease the supply chain risks. Copa et al [40] also evaluated the economic viability of gasification of four types of biomass (i.e., municipal solid waste from Portugal and Brazil, acacia, and eucalyptus) using the Monte Carlo simulation model and concluded that acacia and eucalyptus have a higher risk of investment losses. One of the reasons is the higher acquisition cost for acacia and eucalyptus.…”

“…Referring back to Table 1, a few published studies had also utilized Monte Carlo as their evaluation approach. Copa et al [40] had utilized Monte Carlo simulation for risk evaluation in their study of biomass gasification process combined with electricity generation. In this work, all the uncertainties (i.e., discount rate, capital investment, selling price of electricity, operating and maintenance cost, and costs of fuel) are modelled by presuming a ± 30 % manually.…”

Barriers to Success: A Technical Review on the Limits and Possible Future Roles of Small Scale Gasifiers

“…Several studies tried to evaluate the economic profitability of biomass gasification CHP plants [89][90][91][92][93][94]. Colantoni et al [89] used Montecarlo simulation to evaluate important economic indicators, like Net Present Value (NPV), Internal Rate of Return (IRR) and Payback Time (PBT), of three different gasification CHP power plants (13.6 kW, 136 kW, and 1.9 MW nominal electrical capacity).…”

“…Copa et al [94] presented a comparative techno-economic analysis concerning the deployment of small-scale gasification systems in dealing with various fuels from two countries, Portugal and Brazil, for electricity generation in a 15 kWel downdraft gasifier. The viability of the projects was predicted for an NPV set between 18.99 to 31.65 k€, an IRR between 16.88 to 20.09% and a PBP between 8.67 to 12.61 years.…”

Gas engine Oxy Fuel Combustion for Combined Heat and Power Applications

“…In terms of power generation, Internal Combustion Engines-Generators (ICEGs) play a significant role in developing countries [6] due to their lower cost, larger availability and better fuel flexibility [7] when compared to gas turbines [8]. In Brazil, gas engines have been the preferred technology for landfill gas utilization in WtE projects.…”