Biomass Power Plant Cost Estimation
The major capital cost items for a biomass power system include the fuel storage and fuel handling equipment, the combustor, boiler, prime mover (e.g. turbine or engine), generator, controls, stack, and emissions control equipment.
System cost intensity tends to decrease as the system size increases. For a power-only (not combined heat and power) steam system in the 5 to 25 MW range, costs generally range between $3,000 and $5,000 per kilowatt of electricity. Levelized cost of energy for this system would be $0.08 to $0.15 per kWh, but this could increase significantly with fuel costs. Large systems require significant amounts of material, which leads to increasing haul distances and material costs. Small systems have higher O&M costs per unit of energy generated and lower efficiencies than large systems. Therefore, determining the optimal system size for a particular application is an iterative process.
A variety of incentives exist for biomass power, but vary with Federal and state legislation policies. The Database of State Incentives for Renewables & Efficiency® lists incentives for biomass. The timing of incentive programs often allows less construction time than needed for biomass projects.
Operation and maintenance costs of biomass energy systems are predominately the costs of fuel and labor. In other respects, these systems are similar to other boiler-based electricity production systems. Operation is continual, so costs for operation and for the purchase and storage of fuel need to be assessed with the overall project costs.
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