Regan Brown
The cost of biomass power varies depending on the type of biomass fuel used and the technology employed. For example, the cost of generating power with BECCS (biomass with carbon capture and storage) technology is estimated to be between 20 and 30 cents per kilowatt-hour, while a new 100MW biomass plant can expect costs of around 13 cents per kilowatt-hour with a 10% IRR. Feedstocks for biomass fuel, such as saw mill residue, also vary in price, with an average cost of around $39.71 per metric ton in October 2023.
| Characteristics | Values |
|---|---|
| Use | Biomass is used for heating in stoves, furnaces, boilers, and industrial processes like generating electricity |
| Feedstock | Corn grain, soybeans, wood, paper mill residue, lumber mill scrap, municipal waste, etc. |
| Advantages | Reduces greenhouse gas emissions, is a renewable energy source, and is controllable and available when needed |
| Disadvantages | Requires procurement, delivery, storage, and payment; produces emissions that must be carefully monitored and controlled |
| Cost | Biomass power costs 13c/kWh to generate a 10% IRR at a new 100MW plant, with capex costs of $1,700/kW and burning costs of $150/ton of wood pellets |
| Feedstock Cost | Sawmill residue costs $39.71/metric ton, roundwood/pulpwood costs $28.37/ton |
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What You'll Learn
- Biomass feedstocks: Corn grain, soybeans, wood pellets, and lumber mill scrap
- Biomass power costs: 13c/kWh for a new 100MW plant
- Biomass for electricity: Direct combustion, gasification, and biological conversion
- Pros and cons: Reduces greenhouse gas emissions but produces emissions that must be controlled
- Biomass fuel standards: Set by the non-profit Pellet Fuel Institute (PFI)
Biomass feedstocks: Corn grain, soybeans, wood pellets, and lumber mill scrap
Corn grain, soybeans, wood pellets, and lumber mill scrap are all feedstocks that can be used to produce biomass fuel. Biomass fuel is a growing energy source in the United States, primarily consisting of compressed wood pellets, briquettes, and logs.
Corn Grain
Corn ethanol is a type of ethanol produced from corn biomass and is the main source of ethanol fuel in the United States. Approximately 45% of U.S. corn croplands are used for ethanol production, with 94% of ethanol in the United States being produced from corn. However, one of the main controversies surrounding corn ethanol production is the large amount of arable land required, which could otherwise be used for growing corn for human or animal consumption.
Soybeans
Soybeans are another feedstock that can be used for biodiesel production. The profitability of soybean biodiesel is highly variable and dependent on the changing prices of various factors, including soybean oil, co-product glycerin, methanol, and natural gas. Soybean oil is in high demand as it is used in human food products, cooking oil, and numerous industrial applications.
Wood Pellets
Wood pellets are made from wood residues and high-quality wood waste from sustainably managed forests and industrial activities such as construction and logging. They are a renewable and efficient energy source, with combustion levels averaging 80% and low particulate emissions. Wood pellets are used for heating in residential settings and for generating electricity in commercial buildings.
Lumber Mill Scrap
Lumber mill scrap, also known as sawmill residue, is a type of biomass feedstock. As of October 2023, it had an average price of $39.71 per metric ton, making it the most expensive biomass feedstock in the United States.
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Biomass power costs: 13c/kWh for a new 100MW plant
The use of biomass energy is an effective way to reduce greenhouse gas emissions. Biomass energy is produced from plants, wood, paper, lumber mills waste, and municipal garbage. The most common feedstocks for biomass fuels are corn grain and soybeans.
Biomass power costs can be broken down into two main components: capital expenditure (capex) and fuel costs. For a new 100MW biomass power plant, the capex is estimated to be $1,700/kW. This means that for a 100MW plant, the total capex will be $170,000,000.
The fuel cost for biomass power plants can vary depending on the type of fuel used. In this case, the model assumes the use of wood pellets at a cost of $150/ton. With this fuel cost, the levelized cost of electricity production is 13c/kWh. This cost is necessary for the plant to earn a 10% IRR while generating electricity.
It is important to note that the economics of biomass power plants are sensitive to energy prices. The energy consumption required for drying wet biomass in the pelletization process can impact the overall economics. Additionally, the cost of biomass power can vary depending on the efficiency of the plant. The base case assumptions in this model reflect a 100MW facility with 40% efficiency.
Biomass power plants also incur operating costs, which are estimated to be around 8c/kWh. These costs include the cost of fuel, maintenance, and other operational expenses. By comparison, the power costs of BECCS (Bioenergy with Carbon Capture and Storage) plants are significantly higher, ranging from 20-30c/kWh, due to heavy energy penalties and the need for extensive gas cleanup.
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Biomass for electricity: Direct combustion, gasification, and biological conversion
The cost of biomass fuel varies depending on the type of biomass and the region. For example, in the US, the cost of feedstocks for the manufacture of densified biomass products can vary depending on the type of raw material used, such as roundwood timber or sawmill residue. The price of biomass fuel is also reflected in its export sales, with the US exporting utility-grade pellets to global markets.
Biomass has been used as an energy source since humans first burned wood for cooking and warmth. Even today, wood is the most significant biomass energy resource. Direct combustion, gasification, and biological conversion are three methods for producing electricity from biomass.
Direct combustion is the most common method for converting biomass into useful energy. All biomass can be burned directly to generate electricity in steam turbines. This process involves feeding biomass feedstock, such as wood chips, pellets, or sawdust, into a combustor or furnace, where it is burned with excess air to heat water in a boiler and create steam. The steam then expands through a steam turbine, spinning it to run a generator and produce electricity.
Gasification is another method for converting biomass into electricity. This process involves heating organic materials to high temperatures (between 1,400°F and 1,700°F) in a vessel with limited oxygen to produce a synthesis gas or syngas. Syngas is a mixture of carbon monoxide and hydrogen that can be used as fuel for diesel engines, heating, and electricity generation in gas turbines. Syngas can also be further processed to produce liquid fuels.
Biological conversion of biomass involves processes such as fermentation to produce ethanol and anaerobic digestion to produce biogas, also known as biomethane or renewable natural gas. Ethanol is used as a vehicle fuel, while biogas is produced in anaerobic digesters at sewage treatment plants, dairy, and livestock operations, as well as captured from solid waste landfills.
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Pros and cons: Reduces greenhouse gas emissions but produces emissions that must be controlled
The cost of biomass fuel depends on several factors, including the type of feedstock used and the scale of production. Feedstocks for biomass fuels include corn grain and soybeans, with agricultural residues such as corn stover and wheat straw expected to be used more in the future. The cost of manufacturing densified biomass fuel varies depending on the type of feedstock and the region. For example, the average cost per ton of roundwood timber is different from that of sawmill residue. The price of exported densified biomass fuel also varies depending on the destination country.
Biomass fuel has both advantages and disadvantages in terms of its impact on the environment and emissions. On the positive side, biomass fuel can reduce greenhouse gas emissions compared to fossil fuels. This is because biomass releases carbon dioxide that is largely balanced by the carbon dioxide captured during its growth, making it a carbon-neutral energy source. Additionally, burning fossil fuels releases carbon dioxide that was captured through photosynthesis millions of years ago, whereas biomass fuel releases carbon dioxide that was captured more recently. Using biomass fuel can also reduce dependence on foreign oil and lower overall CO2 emissions by replacing fossil fuels for heating and cooking.
However, there are also some negative aspects to consider. Firstly, while biomass fuel can be carbon-neutral, this depends on how much energy was used to grow, harvest, and process the fuel. Studies have found that clearing forests to grow biomass results in a carbon penalty, so it is preferable to grow biomass on previously cleared land. Additionally, growing biofuel crops can increase greenhouse gas emissions, especially if fertilizers, pesticides, and other processing methods are used. The conversion of forested lands to agriculture for biofuel crops can also increase greenhouse gas emissions.
Furthermore, while biomass fuel can reduce certain pollutant emissions, such as carbon monoxide, it can also produce harmful emissions that must be controlled. For example, wood smoke contains carbon monoxide and particulate matter, which can be reduced through the use of modern wood-burning stoves and filters. Burning garbage as a feedstock for biomass fuel can also release hazardous chemicals and substances into the air if not properly controlled. Overall, while biomass fuel has the potential to reduce greenhouse gas emissions, it is important to carefully manage the feedstock sources and control the emissions produced during combustion to maximize the environmental benefits.
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Biomass fuel standards: Set by the non-profit Pellet Fuel Institute (PFI)
Densified biomass fuel is used for heating in wood pellet stoves or furnaces in residential settings and in large-scale boilers in commercial buildings. The industrial sector also uses utility-grade wood pellets in processes that require thermal energy, such as generating electricity. The cost of biomass fuel depends on the feedstocks used, which include roundwood timber, sawmill residue, wood product manufacturing residue, and other residuals like bark, logging residues, wood chips, and post-consumer wood.
The Pellet Fuel Institute (PFI), a non-profit organisation made up of about 100 member companies, establishes and maintains densified biomass fuel standards. PFI-certified wood pellets meet certain standards set by the PFI and are regulated by third-party inspections. In 2018, the PFI passed new, more stringent fuel standards requirements, along with a quality assurance program to help homeowners match pellet fuel with their appliances and provide consumers with more consistent and accurate information about the fuel they purchase.
The quality assurance program aims to ensure the industry remains strong and viable in the heating fuel market and provides a higher level of certainty regarding fuel quality. Participation in the standards program is not limited to PFI members, and all pellet mills are encouraged to provide consumers with the best possible fuel labelling. Quality pellet fuel is clean-burning and produces minimal smoke, making pellet home-heating appliances the lowest emission solid-fuel-burning heating product available.
The PFI has made several modifications to its standards program over time, including a reduction in sampling frequency for pellet manufacturers.
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Frequently asked questions
The average cost per ton for the manufacture of densified biomass products varies depending on the category of raw materials used. For example, roundwood timber has a different average cost per ton than sawmill residue.
To generate biomass power at a new 100MW plant, you're looking at a levelized cost of 13c/kWh with capex costs of $1,700/kW and burning $150/ton wood pellets.
BECCS, which adds CCS to a wood-burning power plant, has power costs in the range of 20-30c/kWh.
The average cost of wood chips produced from green lumber will vary depending on the specific project, but past projects have paid between $140-210/ton for pellets.
