Design and Feasibility Study of a 5 MW Bio-Power Plant in Nigeria

Abstract

This research design and establish the feasibility of building a bio-power plant in Nigeria from 50 ton sugarcane bagasse to produced 130 MWh or 5 MW per day per operation using a capital cost of $ 89 million, an operating cost of $ 81 million and an energy generation cost of 0.07 $/kWh (or 14.30 NGN/kWh). A biomass-fired combined heat and power technology (CHP) was adopted for the conversion of sugarcane bagasse to electricity. In the analysis of the bio-power plant, the heating value, energy generation and power supply duration were estimated and were used to determine the equipment cost. Both total capital investment and cost of operation were determine and were used for the assessment of the plant profitability. The analyses were carried out with the aid of a Matlab and Microsoft Excel 2013 software. The establishment of this plant was found to have net profit of $ 26 million, net present worth of $ 191 million, discounted payback period of 3.5 years, return on investment of 29 % and internal rate of return of 14 %. These investment criteria confirm that the investment will be economically viable if established in Nigeria based on the project parameters adopted. This will help in addressing the problems of power supply faced by Nigerian residents and industries. Also, this will link agriculture sector to energy industries which will also boost the level investment in the agriculture and rural community development.