Economic Modeling of Wood and Coal Fuels for Grate-Fired Systems under High Cofiring Scenarios in Sub-Arctic Environments

• Main Author: Nicholls, D.L.
• Format: Conference Object
• Language: English
• Published: ETA-Florence Renewable Energies 2021
• Subjects: Biomass; Arctic
• Online Access: https://dx.doi.org/10.5071/29theubce2021-2cv.9.3; http://www.etaflorence.it/proceedings?detail=18421

After decades of service, many grate-fired power plants are reaching the end of their economic lives. Cofiring coal and biomass at low ratios has proven technically feasible and can potentially reduce greenhouse gas emissions, reduce fuel costs, and improve air quality. However, questions remain regarding the economics of biomass procurement, transportation, storage, fuel handling, and the possibility of initial capital costs. I provide financial models for a 32MW capacity coal power plant for plant retrofit costs ranging from $800,000 to $2,800,000. Monte Carlo simulations were used to model coal prices of $50 per delivered ton and wood prices of $25 per delivered ton. This research found that cofiring was economically feasible at all scenarios evaluated, with deterministic net present values ranging from $1.6 million to $3.3 million and payback periods ranging from 2 to 7 years. Stochastic simulations (with n=3,000) found lower 95 percent confidence values ranging from $1.5 million to $3.2 million for the scenarios were valuated. Economically attractive returns were driven by a low cost wood fuel source close to the power plant. This work illustrates the influence that wood fuel costs can have in cofiring applications under diverse scenarios. It has important implications for grate-fired coal power plants internationally, especially in cases with competing markets for biomass residues. : Proceedings of the 29th European Biomass Conference and Exhibition, 26-29 April 2021, Online, pp. 634-636