Technology Status - NET Nowak Energie & Technologie AG

106
the inclusion of municipal solid waste (MSW) in this category. Unlike other
renewables, biopower is based on biofuel and therefore shares some
important characteristics with fossil fuel systems.
The logistical chain and the economics of a biomass system depend entirely
on both the location (e.g., climate, soil, crop) and the conversion technology.
The economics are very site-specific (see next section on costs). Biomass
resources tend to be available in rural areas – with the exception of municipal
and industrial wastes.
● Costs
The cost of generating electricity from biomass varies, depending mainly on
the type of technology used, the size and investment of the power plant, as
well as the cost of the biomass fuel supply.
Investment Costs
The investment costs for biopower plants can be as low as a few hundred USD
per kW for co-firing, and as high as several thousand USD per kW. Co-firing
investment levels are very site specific and are affected by the available space
for storing feedstocks, by the cost of installing reduction and drying facilities
and by the type of boiler/burner modifications required. Co-firing investment
costs indicated in Europe vary between USD 500 to 1,000 per kWp. Even lower
investment costs are reported by the US Biopower program.
Feedstock Costs
Feedstock costs vary depending on the type of biomass and the transport
distance. Bulky biomass tends to be more expensive than compact biomass.
The most economical condition is when the energy is used at the site where
the biomass residue is generated (e.g., at a paper mill, sawmill or sugar mill).
Feedstock costs usually increase disproportionately above a certain level of
biomass needed. Therefore, the upper limit of a biopower plant is between
30 and 100 MW, depending on the geographical context and the sources of
feedstock.
Feedstock costs for anaerobic digestion are different, as the feedstock (MSW
or organic waste from farms) becomes a source of revenue to the plant
operator. In these cases, “tipping fees” are charged to the disposer of waste
and is part of the revenues of the electricity plant.
BIOPOWER X5