Economic evaluation of biogas and natural gas co-firing in gas turbine combined heat and power systems

Abstract This study investigated the economics of co-firing biogas and natural gas within a small gas turbine combined heat and power (CHP) plant. The thermodynamic performance of the CHP plant was calculated with varying gas mixing ratios, forming the basis for the economic analysis. A cost balance equation was used to calculate the costs of electricity and heat. The methodology was validated, and parametric analyses were used to investigate the influence of gas mixing ratio and heat sales ratio on the costs of electricity and heat. The cost of electricity generation from the CHP plant was compared to that of a central combined cycle power plant, and an economical gas mixing ratio range were suggested for various heat sales ratios. It was revealed that the effect of the heat sales ratio on the cost of electricity becomes greater as the proportion of natural gas is increased. It was also demonstrated that the economic return from the installation of CHP systems is substantially affected by the gas mixing ratio and heat sales ratio. Sensitivity analysis showed that influence of economic factors on the CHP plant is greater when a higher proportion of natural gas is used.