An economic analysis of biomass gasification and power generation in China

With vast territory and abundant biomass resources China appears to have suitable conditions to develop biomass utilization technologies. As an important decentralized power technology, biomass gasification and power generation (BGPG) has a potential market in making use of biomass wastes. In spite of the relatively high cost for controlling secondary pollution by wastewater, BGPG is economically feasible and can give a financial return owing to the low price of biomass wastes and insufficient power supply at present in some regions of China. In this work, experimental data from 1 MW-scale circulating fluidized bed (CFB) BGPG plants constructed recently in China were analyzed; and it was found that the unit capital cost of BGPG is only 60-70% of coal power station and its operation cost is much lower than that of conventional power plants. However, due to the relatively low efficiency of small-scale plant, the current BGPG technology will lose its economic attraction when its capacity is smaller than 160 kW or the price of biomass is higher than 200 Yuan RMB/ton. The development of medium-scale BGPG plants, with capacity ranging from 1000 to 5000 kW, is recommended; as is the demonstration of BGPG technology in suitable enterprises (e.g. rice mill and timber mill) in developing countries where large amounts of biomass wastes are available so that biomass collection and transportation can be avoided and the operation cost can be lowered.