Biomass Feasibility Project Final Report - Xcel Energy

CHAPTER VIII : ECONOMIC EVALUATIONS
Figure VIII-1: Start-Up Screen
BIO-POWER EVALUATION TOOL (BIOPET)
This computer tool was developed as part of this project’s overall effort to provide general
guidance in estimating costs of various biomass feedstocks and technological strategies. It is
meant to provide a means of comparing various biomass strategies; not cost estimates detailed
enough to use for a specific project. It allows a relative comparison among varying strategies
but not a firm pro forma for a particular one.
The tool allows the user to estimate the annual levelized cost of energy for a proposed power
plant based on supply and cost estimates for a range of biomass fuels and power plant
characteristics. Although we provide default values most characteristics; users can to assign
their own values if they have more specific cost estimates or wish to gauge the effects of
changing parameters on project performance. Factory default values are retained within the
spreadsheet and always can be restored if necessary.
The Bio-Power Evaluation Tool consists of worksheets to estimate feedstock costs and supply,
power plant characteristics and costs, and overall project economics. Users can save feedstock
and power plant scenarios as they work and combine those scenarios to assess what
combinations of feedstocks and power plants will result in the lowest cost of energy. The
Evaluation tool also provides a sensitivity analysis for each final project evaluation so that the
user can evaluate how sensitive the proposed project is to changes in various costs.
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Identifying Effective Biomass Strategies:
Quantifying Minnesota’s Resources and Evaluating Future Opportunities