Assessment of the Use of Forest Biomass Residues for Bioenergy in Alto Alentejo, Portugal: Logistics, Economic and Financial Perspectives

Abstract

This paper presents a GIS-based assessment of the logistics aspects of forestry biomass residues utilization with the prospect of implementing a biomass plant in Alto Alentejo, a region of Portugal. The method follows a cost minimization approach and focuses on the cost calculation of each energy unit generated (in €/MWh), as well as the demonstration of the main economic and financial statements within the project framework. Three municipalities are selected as candidate sites for the biomass plant: Avis, Crato and Portalegre; and the conversion technologies considered are fixed bed combustion (GC/ST), fluidized bed combustion (FBC/ST), and integrated biomass gasification (BIG/CC). Results show that the most suitable municipality for the implementation of a biomass plant is Portalegre, with average electricity production costs of 95, 98 and 133 €/MWh for each considered technology. The assessment also reveals that the power plant configurations studied are financially unattractive due to negative profitabilities. However, sensitivity analysis indicates that good economic performances can be achieved by considering larger biomass plants. Biomass power generation in dedicated plants can be economically sustainable in Alto Alentejo, but may not be the most suitable option for the region taking into account the available biomass potential.