Forest resource distribution and transport cost optimization-based economic evaluation of gasification and steam-turbine biomass power generation systems

The economics of decentralized gasification and centralized steam turbine systems with optimized harvesting, chipping, and transportation costs of unutilized forest biomass were analyzed within the context of the spatial distribution of forest biomass resources using a geographic information system in the Fuji area of Shizuoka Prefecture, Japan. The optimized harvesting, chipping, and transportation costs were 62.50 USD/dry-t for the decentralized system and 65.86 USD/dry-t for the centralized system, confirming that the decentralized system was less expensive than the centralized system. However, electricity production costs for centralized systems, ranging from 0.137 USD/kWh (capacity: 5,000 kW), were found to be more economical than that for decentralized systems, at 0.151–0.165 USD/kWh (capacity: 482 kW), resulting in the higher costs of decentralized systems because of expensive initial investment than that of the centralized system. The rate of heat sold, which lowers the electricity production costs of gasification below those of centralized systems, was 20–40 % for all such plants. To lower the electricity production cost of gasification plants below that of steam-turbine systems, a heat sales rate of approximately 10% and a minimum staff of 0.2 persons for remote operation of the gasification system. Higher heat sales rates further decrease the cost of gasification, making it cheaper than steam-turbine systems even at lower operating rates. To achieve this cost advantage at current low utilization rates, a heat sales rate of 50% and a utilization rate of 90%, based on a unit price of 0.05 USD/kWh, are required.