Abstract
The use of sugarcane bagasse, straw, and chaff for electrical power generation in sugar-ethanol mills has been established; more recently, the recovery of forest biomass has been increasing in an attempt to reduce the use of fossil fuels and to increase electrical power generation focused on self-consumption. The potential for power generation in this segment is considerable, but the use of biomass in cogeneration processes depends on an attractive return on investments. This study was designed to analyze the economic feasibility of investment in thermal and electrical power generation equipment that makes it possible to use forest and logging residues and wood chips to replace the current gas-fired power generation in an engineered wood panel industry facility (Scenario 1) or investment only in thermal generation equipment (Scenario 2). Results showed that the investment to replace natural gas with forest biomass is economically viable not only for the generation of both types of energy but also for the generation of thermal energy itself. High costs of energy inputs such as natural gas and electricity for the industry explain the results, despite the requirement for high investments in cogeneration systems.
Highlights
The lignocellulosic biomass can be converted into a variety of chemicals and energy, including solid, liquid, and gaseous fuel, into processes for the generation of thermal, mechanical, and electrical energy (Londo et al 2018)
The increases will be negligible concerning the total operation because the sector has a structured team that will be transferred to the system with power generators; the increase in operating cost will occur through the hiring of specialized engineers (Table 3)
It should be noted that an hurdle rate (HR) used in this study is higher than the basic interest rate of the Brazilian economy (6.5% per year), which is explained by the risks involved in these investment projects, especially concerning the prices of energy inputs
Summary
The lignocellulosic biomass can be converted into a variety of chemicals and energy, including solid, liquid, and gaseous fuel, into processes for the generation of thermal, mechanical, and electrical energy (Londo et al 2018). In addition to the environmental liabilities caused by the generation and disposal of waste, there is an economic liability because the power potential of biomass from forestry wastes is generally very high and, as a rule, is not used. Brazil’s power matrix uses one of the highest percentages of renewable power sources. While this share is 13% on average worldwide, it reached 43.5% in Brazil in 2016, especially for products derived from sugarcane biomass and hydraulic power (EPE 2018). In the Brazilian electricity matrix, the sugar-alcohol sector pioneered the use of bagasse and sugarcane straw to generate electrical power for self-consumption and for sale to distributors.
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