Techno-economic analysis of forest

Techno-economic analysis of forest biomass blends gasification

for small-scale power production facilities in the Azores

ABSTRACT

The present work assesses the energetic valorisation of forest biomass blends in the archipelago of the Azores, to
do so, a multiphase 2-D Eulerian-Eulerian model was employed to simulate forest biomass gasification in a pilotscale fluidized bed reactor. The numerical model was validated under experimental gasification runs performed
in a 250 kWth quasi-industrial biomass gasifier. The potential use of the produced syngas as a complementary
energy source for small-scale power production in the Azores was assessed based on the results. The exergy
efficiency and tar production of the process were determined. A techno-economic study combining the net
present value (NPV), internal rate of return (IRR), and payback period (PBP) followed by a Monte Carlo sensitivity analysis was comparatively performed for two distinct application sizes (100 and 1000 kW) so to gauge
which unit size carries enhanced operative feasibility and foresee the main investment risks in conducting forest
biomass blends gasification for power production in small facilities. Results revealed that the 100 kW unit was
economically impracticable under current market conditions, while the 1000 kW unit showed to be economically feasible with an NPV of 486 k€, IRR of 17.44% and PBP of 7.4 years. The sensitivity analysis predicted a
higher risk of failure in the NPV, being highly sensitive to the electricity sales tariff and electricity production.
Indeed, forest biomass gasification projects carry great potential when applied to small facilities with economic
viability in some economies of scales, withal, special concerns must always be considered regarding the project
.attractiveness to potential investors

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