[Gasification] gasification application economics

[LINVENT at aol.com]

Dear Erik,
    In the early 80's we were dealing with a large  particleboard 
manufacturing plant in Albuquerque who had significant amounts of  sander dust to dispose 
of and a very large electric bill every month, paying  $.08/kwhr plus peak 
charges. We approached the company with a proposal to  replace the electricity 
at $.045/kwhr and use the sander dust as a gasifier  fuel, using two Cummins' 
engines for power generation. 
    They agreed to the deal and the funds came from a  tax sheltered 
investment fund out of Houston. After the engine/generator sets  were bought and 
installed, and the gasifier was about ready to connect up, the  time delay allowed 
them to withdraw from the agreement and they did because the  local utility 
offered them electricity at the same cost, effectively shutting  down the 
gasifier project. This same utility has hired 150 consultants as  lobbyists to 
prevent net metering, independent transportation over their lines,  and foiled 
deregulation at every turn in the legislature, and out of many  possible power 
source connections to them, only one in the last 30 years has  been connected, 
the City of Albuquerque waste water plant and their biogas  generator set, about 
900 kw. 
    So, the forces of competition are fierce, and not  necessarily fair. 
These are typical hazards seen every day in this business.  

Sincerely,

Leland T.  Taylor
President
Thermogenics Inc. 
7100-F 2nd St. NW  Albuquerque, New Mexico USA 87107
Phone:505-463-8422, Fax:505-268-9206 (call  first) web:thermogenic.com