Natural gas–biomass dual fuelled microturbines: Comparison of operating strategies in the Italian residential sector

Abstract This paper compares different operating strategies for small scale (100 kWe) combined heat and power (CHP) plants fired by natural gas and solid biomass to serve a residential energy demand. The focus is on a dual fuel micro gas turbine (MGT) cycle. Various biomass/natural gas energy input ratios are modelled, in order to assess the trade-offs between: (i) lower energy conversion efficiency and higher investment cost when increasing the biomass input rate; (ii) higher primary energy savings and revenues from feed-in tariff available for biomass electricity fed into the grid. The strategies of baseload (BL), heat driven (HD) and electricity driven (ED) plant operation are compared, for an aggregate of residential end-users in cold, average and mild climate conditions. On the basis of the results from thermodynamic assessment and simulation at partial load operation, CAPEX and OPEX estimates, and Italian energy policy scenario (incentives available for biomass electricity, on-site and high efficiency CHP), the maximum global energy efficiency, primary energy savings and investment profitability is found, as a function of biomass/natural gas ratio, plant operating strategy and energy demand typology. The thermal and electric conversion efficiency ranged respectively between 46 and 38% and 30 and 19% for the natural gas and biomass fired case studies. The IRR of the investment was highly influenced by the load/CHP thermal power ratio and by the operation mode. The availability of high heat demand levels was also a key factor, to avoid wasted cogenerated heat and maximize CHP sales revenues. BL operation presented the highest profitability because of the higher revenues from electricity sales. Climate area was another important factor, mainly in case of low load/CHP ratios. Moreover, at low load/CHP power ratio and for the BL operation mode, the dual fuel option presented the highest profitability. This is due to the lower cost of biomass fuel in comparison to natural gas and the high subsidies available for biomass electricity by feed-in tariffs. The results show that dual fuel MT can be an interesting option to increase efficiencies, flexibility and plant reliability at low cost in comparison to only biomass systems, facilitating an integration of renewable and fossil fuel systems.