[Gasification] Ash to land? - separated ash fractions

[Daniel Chisholm]

On Fri, 2007-11-05 at 09:48 -0700, Tom Miles wrote:
> >Given their hi tech background and engineering experience this should
> >be a serious contender as a commercial product, but I'll guess not
> >cheap.
> >AJH
> 
> In October 2006 I was told they could deliver a system for $3600/kWe
> complete from the fuel bin to genset without the switchgear for the grid.
> 
> I assume that is a reasonable cost for supplying power from urban wood under
> a NFFO (Non-Fossil Fuel Obligation) contract which seems to be 7.47 p/kWh
> (Landfill gas) or about USD $0.148/kWh.  

$3600/kWe, yikes!

At 85% availability (7446 hrs/yr), a ten year simple amortization gives
4.83 cents per kWh.  At an 8% cost of capital, that's 3.87 cents/kWh.
These two total 8.70 cents/kWh.

Presumably they pay something for fuel, and operations and maintenance
too.  Fuel at $3/mmBTU ($30 per tonne at 45%mc) would be about 5
cents/kWh.

With a capital cost like that, it sounds like it'll be a struggle to
break even, even at a strongly-subsidized 15 cents/kWh.  No way it can
produce retail-priced (~10cents/kWh) electricity, and no-way-no-how at
wholesale (~5cents/kWh).

My gosh, it is depressing to run spreadsheet calcs like this.  On the
one hand (buying;-), electricity is just too darn expensive.  On the
other hand (selling;-), it is just too darn cheap.




-- 
- Daniel
Fredericton, NB  Canada