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Biomass Feasibility Project Final Report - Xcel Energy

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Processing Yard<br />

Transportation to the Yard (Yt) = (Miles by Road) * (Transportation Cost ($/ton-mile) +<br />

(Miles by Rail) * (Transportation Cost ($/ton-mile) + (Miles by Barge) * (Transportation Cost<br />

($/ton-mile)<br />

Processing Yard Costs (Yc) = (Processing Cost) + (Collection/Loading Costs)<br />

Storage Facility<br />

Power Plant<br />

Total<br />

Transportation to Storage (St) = (Miles by Road) * (Transportation Cost ($/ton-mile) + (Miles<br />

by Rail) * (Transportation Cost ($/ton-mile) + (Miles by Barge) * (Transportation Cost<br />

($/ton-mile)<br />

Storage Facility Costs (Sc) = (Processing Cost) + (Collection/Loading Costs) + (Storage<br />

Costs) * (Average Number of Months Stored)<br />

Transportation to Power Plant (Pt) = (Miles by Road) * (Transportation Cost ($/ton-mile) +<br />

(Miles by Rail) * (Transportation Cost ($/ton-mile) + (Miles by Barge) * (Transportation Cost<br />

($/ton-mile)<br />

Power Plant Costs (Pc) = (Processing Cost) + (Unloading Cost) + (Payment)<br />

Total Cost (Tc) ($/wet ton) = Fc + Yt + Yc + St + Sc + Pt + Pc<br />

1<br />

T c $ / ton *( )<br />

1 − MCW<br />

<strong>Energy</strong> Cost (Ec) ($/MMBTU) *1,000,000Btu<br />

/ MMBtu =<br />

( ENCBtu / lb *2,000lbs<br />

/ ton)<br />

Utility Economic Evaluation<br />

The power plant economic analysis used the “Generic <strong>Biomass</strong> Power Plant Model” developed<br />

by the California <strong>Biomass</strong> Collaborative and available on their website<br />

(http://biomass.ucdavis.edu/index.html). In addition to the model, the California <strong>Biomass</strong><br />

Collaborative (CBC, n.d.) details the economic variables and methodology as well as providing<br />

an example analysis.<br />

Levelized Annual Costs (LACs)<br />

The Bio-power Evaluation Tool (BioPET) generates estimates of the levelized cost of energy<br />

(LCOE) for a number of bio-power facility types using a generic agricultural residue fuel and a<br />

generic woody residue fuel. An estimate of the LCOE for an anaerobic digester was estimated<br />

as well.<br />

Page 126<br />

Identifying Effective <strong>Biomass</strong> Strategies:<br />

Quantifying Minnesota’s Resources and Evaluating Future Opportunities

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