Techno-Economic Feasibility of Biomass Gasification for the Decarbonisation of Energy-Intensive Industries

Abstract

The current climatic and geopolitical situation leads to strong decarbonisation policies in several industries worldwide. Moreover, the European Union is pushing intensive industries to achieve a 55% reduction in CO2 emissions towards 2030. Among them, the steel manufacturing sector is at the lead of alternative projects that can help achieve this ambitious target. Co-production of syngas and biochar is one potential solution for this sector. Herein, a techno-economic analysis is provided to evaluate the economic feasibility and the effect of the most influential parameters for a successful deployment. A bibliographic review has been carried out to establish a clear baseline for such an analysis in terms of investment costs at several scales for gasification projects. Additionally, the cost evolution for coke, natural gas, and CO2 emission credits on the profitability of these projects are given. The case scenario processing 20,000 tbiomass/y is the most feasible solution, with a payback of around three years and a net present value (NPV) of around 15 million EUR, showing that biomass gasification can be an up-and-coming alternative in the mid-term.