Strategic analysis of biomass and waste fuels for electric power generation

Abstract Although the environmental and other benefits of using biomass and waste fuel energy to displace fossil fuels are well known, the economic realities are such that these fuels cannot compete effectively in the current market without tax credits, subsidies and other artificial measures. In 1992, EPRI initiated a strategic analysis of biomass and waste fuels and power technologies, both to develop consistent performance and cost data for the leading fuels and technologies and to identify the conditions which favor and create market pull for biomass and waste fuel energy. Using the final results of the EPRI project, this paper compares the relative performance and cost of power generation from coal, natural gas, and biomass and waste fuels. The range of fuels includes wood, agricultural wastes, municipal solid waste, refuse-derived fuel, scrap tires and tire-derived fuel. The power technologies include pulverized coal and natural gas/combined cycle power plants, cofiring with coal in coal-fired utility boilers, direct combustion in dedicated mass burn, stoker and fluidized bed boilers, and wood gasification/combined cycle power plants. The analysis suggests that, in the near term, the highest-efficiency, lowest-cost, lowest-risk technology is cofiring with coal in industrial and utility boilers. However, this approach is economically feasible only when the fuel is delivered at a deep discount relative to fossil fuel, or the fuel user receives a tipping fee, subsidy, or emissions credit. In order to increase future use of biomass and waste fuels, a joint initiative, involving government, industry, and fuel suppliers, transporters and users, is needed to develop low-cost and efficient energy crop production and power technology.