Page 61 - Biomass Gasification, Pyrolysis And Torrefaction Practical Design and Theory

40 Biomass Gasification, Pyrolysis and Torrefaction

TABLE 2.4 Specific Capital Cost (1994 basis) and Efficiency of Power
Generation Systems Based on Biomass Gasification
Specific Capital Cost in
1994 ($/kWe) Efficiency (%)

Plant Capacity (MWe) IGCC Steam Gas Engine IGCC Steam Gas Engine
5 6500 6000 4600 22 18 25
10 4900 4400 3900 30 20 26
20 3750 3100 3000 37 22 28
40 a 2800 2300 2500 a 43 25 30
60 a 2500 1950 2200 a 45 27 30.5
80 a 2200 1700 2050 a 47 28 31
100 a 2100 1500 1950 a 48 29 31.5
a
Gas engines of such high capacity are rare. These are theoretical values.
Source: Data compiled from Bridgwater (1995).

2.4 FINANCIAL ANALYSIS
Once data on all capital and operating costs are available, the financial anal-
ysis of the plant could begin. Though the analysis presented in this section is
based on energy production from biomass using gasification, the analysis for
chemical and fuel production would also be similar. The viability of any
such project is measured in terms of following several terms:
1. Cost of electricity or product
2. Internal revenue requirement and return on investment
3. Net present value
4. Benefit cost ratio
5. Payback period
6. Life-cycle cost.
The goal of a financial analysis is to determine one or many of the above
indices to judge the economic viability of a project.

2.4.1 Capital Cost Adjustment for Size and Time

The capital cost for a gasifier, fuel preparation, turbine, generator, or any
other major equipment discussed earlier is often derived from a database of
past projects maintained by consulting companies or some major user indus-
tries. Such equipments are not necessarily of the same size as that of the