Integrated model for power generation from biomass gasification: A market readiness analysis for northwestern Ontario

Abstract

Biomass gasification, utilized for various energy uses including power generation, provides an attractive option of energy security for remote rural communities and simultaneously helps in reducing greenhouse gas emissions. However, wider application of biomass gasification technology is limited due to a number of technical and economic challenges. Although a few studies have developed process-based models for reducing the costs of biomass supply chains through efficient logistics operations, there is a dearth of integrated modeling to capture the behaviour of the entire production system. In this paper an integrated non-linear dynamic mixed-integer programming model, using optimization and simulation techniques, is developed for biomass gasification power plants using General Algebraic Modeling System (GAMS) computer software. The major variables considered in the model are harvesting and processing costs, logistic costs for biomass feedstock delivery and storage, capital costs of power plant, operation and maintenance costs including labour, insurance and capital financing, and other regulatory costs. The model provides different cost-benefit trajectories depending upon the scale of power generation from biomass gasification, thereby providing the prospective investors with information regarding market potential of the technology. The application of the model for setting up of a biomass gasification plant at a typical location in northwestern Ontario shows decreasing costs with increasing plant capacity up to 50 M W. The total cost per MWh production ranged from CAD 47.65 for a 50-MW plant to CAD 79.55 for a 10M-W plant.