Production Costs

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Ingwald Obernberger - One of the best experts on this subject based on the ideXlab platform.

  • wood pellet Production Costs under austrian and in comparison to swedish framework conditions
    Biomass & Bioenergy, 2004
    Co-Authors: Gerold Thek, Ingwald Obernberger
    Abstract:

    Abstract Owing to the rapidly increasing importance of pellets as high-quality biomass fuel in Austria and Europe within the last years, many companies, mainly from the wood industry, are thinking of entering this market. The calculation of the Production Costs before starting a pellet plant is essential for an economic operation. Based on comprehensive investigations within the EU-ALTENER project “An Integrated European Market for Densified Biomass Fuels” calculations of the pellet Production Costs loco factory for different framework conditions with basic data based on already realised plants as well as a questionnaire survey of pellet producers in Austria, South Tyrol and Sweden have been performed. The Production Costs for wood pellets are mainly influenced by the raw material Costs and, in the case of using wet raw materials, by the drying Costs. Depending on the framework conditions these two parameters can contribute up to one-third of the total pellet Production Costs. Other important parameters influencing the pellet Production Costs are the plant utilisation (number of shifts per week) as well as the availability of the plant. For an economic Production of wood pellets at least three shifts per day at 5 days per week are necessary. An optimum would be an operation at 7 days per week. A low plant availability also leads to greatly increased pellet Production Costs. A plant availability of 85–90% should therefore be achieved. The calculations show that a wood pellet Production is possible both in small-scale (Production rates of some hundred tonnes per year) as well as in large-scale plants (some ten thousand tonnes per year). However, especially for small-scale units it is very important to take care of the specific framework conditions of the producer, because the risk of a non-economic pellet Production is considerably higher than for large-scale systems. The direct comparison of typical pellet Production Costs in Austria and Sweden showed the Swedish pellet Production Costs to be considerably lower due to larger plant capacities, the combination of pellet Production and biomass CHP or biomass district heating plants and the implementation of technologies which allow an efficient heat recovery from the dryers. Moreover, another difference between the Austrian and the Swedish framework conditions is the price of electricity, which is much lower in Sweden.

Gero Becker - One of the best experts on this subject based on the ideXlab platform.

  • wood pellets Production Costs and energy consumption under different framework conditions in northeast argentina
    Biomass & Bioenergy, 2011
    Co-Authors: Augusto Uasuf, Gero Becker
    Abstract:

    Abstract The development of cleaner and renewable energy sources are needed in order to reduce dependency and global warming. Wood pellets are a clean renewable fuel and has been considered as one of the substitutes for fossil fuels. In Argentina, large quantities of sawmill residues are still unused and wood pellets Production could be seen as both, as an environmental solution and an extra economical benefit. The general aim of this study was to determine the wood pellets Production Costs and energy consumption under different framework conditions in northeast Argentina. The specific Costs of wood pellets for the different scenarios showed relative lower Costs comparing to the ones reported in other studies, ranging from 35 to 47 €/Mgpellets. Raw material Costs represented the main cost factor in the calculation of the total pellets Production Costs. A lower specific Production cost was observed when 50% of the raw material input was wood shavings. The specific electricity consumption per metric ton of pellet was lower in scenarios with higher Production rate. Lower heat energy consumption was observed in scenarios that have a mixed raw material input. The most promising framework condition for Northeast Argentina, in terms of Costs effectiveness and energy consumption could be acquired with Production rates of 6 Mg/h with sawdust and wood shavings as raw material. However, simultaneous increment of the electricity by 50% and raw material price by 100% may increase the specific Costs up to 50%.

André Faaij - One of the best experts on this subject based on the ideXlab platform.

  • spatiotemporal assessment of farm gate Production Costs and economic potential of miscanthus giganteus panicum virgatum l and jatropha grown on marginal land in china
    Gcb Bioenergy, 2020
    Co-Authors: Bingquan Zhang, Astley Hastings, John Cliftonbrown, Dong Jiang, André Faaij
    Abstract:

    Spatially explicit farm-gate Production Costs and the economic potential of three types of energy crops grown on available marginal land in China for 2017 and 2040 were investigated using a spatial accounting method and construction of cost-supply curves. The average farm-gate cost from all available marginal land was calculated as 32.9 CNY/GJ for Miscanthus Mode, 27.5 CNY/GJ for Switchgrass Mode, 32.4 CNY/GJ for Miscanthus & Switchgrass Mode, and 909 CNY/GJ for Jatropha Mode in 2017. The Costs of Miscanthus and switchgrass were predicted to decrease by approximately 11%-15%, whereas the cost of Jatropha was expected to increase by 5% in 2040. The cost of Jatropha varies significantly from 193 to 9,477 CNY/GJ across regions because of the huge differences in yield across regions. The economic potential of the marginal land was calculated as 28.7 EJ/year at a cost of less than 25 CNY/GJ for Miscanthus Mode, 4.0 EJ/year at a cost of less than 30 CNY/GJ for Switchgrass Mode, 29.6 EJ/year at a cost of less than 25 CNY/GJ for Miscanthus & Switchgrass Mode, and 0.1 EJ/year at a cost of less than 500 CNY/GJ for Jatropha Mode in 2017. It is not feasible to develop Jatropha Production on marginal land based on existing technologies, given its high Production Costs. Therefore, the Miscanthus & Switchgrass Mode is the most economical way, because it achieves the highest economic potential compared with other modes. The sensitivity analysis showed that the farm-gate Costs of Miscanthus and switchgrass are most sensitive to uncertainties associated with yield reduction and harvesting Costs, while, for Jatropha, the unpredictable yield has the greatest impact on its farm-gate cost. This study can help policymakers and industrial stakeholders make strategic and tactical bioenergy development plans in China (exchange rate in 2017: 1€ = 7.63¥; all the joules in this paper are higher heat value).

  • supply chain optimization of sugarcane first generation and eucalyptus second generation ethanol Production in brazil
    Applied Energy, 2016
    Co-Authors: J G G Jonker, André Faaij, H M Junginger, Judith A Verstegen, Tao Lin, Luis F Rodriguez, K C Ting, F Van Der Hilst
    Abstract:

    The expansion of the ethanol industry in Brazil faces two important challenges: to reduce total ethanol Production Costs and to limit the greenhouse gas (GHG) emission intensity of the ethanol produced. The objective of this study is to economically optimize the scale and location of ethanol Production plants given the expected expansion of biomass supply regions. A linear optimization model is utilized to determine the optimal location and scale of sugarcane and eucalyptus industrial processing plants given the projected spatial distribution of the expansion of biomass Production in the state of Goias between 2012 and 2030. Three expansion approaches evaluated the impact on ethanol Production Costs of expanding an existing industry in one time step (one-step), or multiple time steps (multi-step), or constructing a newly emerging ethanol industry in Goias (greenfield). In addition, the GHG emission intensity of the optimized ethanol supply chains are calculated. Under the three expansion approaches, the total ethanol Production Costs of sugarcane ethanol decrease from 894US$/m3 ethanol in 2015 to 752, 715, and 710US$/m3 ethanol in 2030 for the multi-step, one step and greenfield expansion respectively. For eucalyptus, ethanol Production Costs decrease from 635US$/m3 in 2015 to 560 and 543US$/m3 in 2030 for the multi-step and one-step approach. A general trend is the use of large scale industrial processing plants, especially towards 2030 due to increased biomass supply. We conclude that a system-wide optimization as a marginal impact on overall Production Costs. Utilizing all the predefined sugarcane and eucalyptus supply regions up to 2030, the results showed that on average the GHG emission intensity of sugarcane cultivation and processing is −80kg CO2/m3, while eucalyptus GHG emission intensity is 1290kg CO2/m3. This is due to the high proportion of forest land that is expected to be converted to eucalyptus plantations. Future optimization studies may address further economic or GHG emission improvement potential by optimizing the GHG emission intensity or perform a multi-objective optimization procedure.

  • outlook for ethanol Production Costs in brazil up to 2030 for different biomass crops and industrial technologies
    Applied Energy, 2015
    Co-Authors: J G G Jonker, F Van Der Hilst, H M Junginger, Otavio Cavalett, Mateus F Chagas, André Faaij
    Abstract:

    This paper presents an economic outlook of the ethanol industry in Brazil considering different biomass feedstocks and different industrial processing options. A spreadsheet model was designed to account for different feedstocks and industrial processes, and expected trends in biomass yield, sugar- and fibre content, industrial scale and efficiency. Sugarcane and energycane cultivation Costs may be reduced from 35US$2010/TC in 2010 to 27US$2010/TC and 22US$2010/TC in 2030 respectively. Eucalyptus and elephant grass cultivation Costs could be reduced from 32 to 23US$2010/tonne wet and 38 to 26US$2010/tonne wet for eucalyptus and elephant grass. Total ethanol Production Costs of first generation processing may decrease from 700US$2010/m3 in 2010, to 432US$2010/m3 in 2030. First generation ethanol Production Costs may decrease by reduced feedstock Costs, increase in sugar content, utilization of cane trash, and use of sweet sorghum. Furthermore, the improvement in industrial efficiency of the first generation process, increasing industrial scale and change to an improved technology are other measures. For second generation technology utilizing eucalyptus, the total ethanol Production Costs could be strongly reduced to 424US$2010/m3 in 2030. Costs reduction measures for second generation industrial processing include reduced feedstock Costs, increasing industrial efficiency and scale, and a change to more advanced industrial process. Overall, biomass yield, increase in sugar content of sugarcane, and improved industrial efficiency are important parameters in total ethanol Production Costs. Ongoing RD&D effort and commercialization of second generation industrial processing may result in the lowest ethanol Production Costs for second generation processing in the future.

  • explaining the experience curve cost reductions of brazilian ethanol from sugarcane
    Biomass & Bioenergy, 2009
    Co-Authors: J D Van Den Wall Bake, André Faaij, Martin Junginger, T Poot, Arnaldo Walter
    Abstract:

    Production Costs of bio-ethanol from sugarcane in Brazil have declined continuously over the last three decades. The aims of this study are to determine underlying reasons behind these cost reductions, and to assess whether the experience curve concept can be used to describe the development of feedstock Costs and industrial Production Costs. The analysis was performed using average national Costs data, a number of prices (as a proxy for Production Costs) and data on annual Brazilian Production volumes. Results show that the progress ratio (PR) for feedstock Costs is 0.68 and 0.81 for industrial Costs (excluding feedstock Costs). The experience curve of total Production Costs results in a PR of 0.80. Cost breakdowns of sugarcane Production show that all sub-processes contributed to the total, but that increasing yields have been the main driving force. Industrial Costs mainly decreased because of increasing scales of the ethanol plants. Total Production Costs at present are approximately 340 US$/methanol3 (16 US$/GJ). Based on the experience curves for feedstock and industrial Costs, total ethanol Production Costs in 2020 are estimated between US$ 200 and 260/m3 (9.4–12.2 US$/GJ). We conclude that using disaggregated experience curves for feedstock and industrial processing Costs provide more insights into the factors that lowered Costs in the past, and allow more accurate estimations for future cost developments.

  • a comparison of electricity and hydrogen Production systems with co2 capture and storage part a review and selection of promising conversion and capture technologies
    Progress in Energy and Combustion Science, 2006
    Co-Authors: Kay Damen, Martijn Van Troost, André Faaij, Wim Turkenburg
    Abstract:

    We performed a consistent comparison of state-of-the-art and advanced electricity and hydrogen Production technologies with CO2 capture using coal and natural gas, inspired by the large number of studies, of which the results can in fact not be compared due to specific assumptions made. After literature review, a standardisation and selection exercise has been performed to get figures on conversion efficiency, energy Production Costs and CO2 avoidance Costs of different technologies, the main parameters for comparison. On the short term, electricity can be produced with 85–90% CO2 capture by means of NGCC and PC with chemical absorption and IGCC with physical absorption at 4.7–6.9 €ct/kWh, assuming a coal and natural gas price of 1.7 and 4.7 €/GJ. CO2 avoidance Costs are between 15 and 50 €/t CO2 for IGCC and NGCC, respectively. On the longer term, both improvements in existing conversion and capture technologies are foreseen as well as new power cycles integrating advanced turbines, fuel cells and novel (high-temperature) separation technologies. Electricity Production Costs might be reduced to 4.5–5.3 €ct/kWh with advanced technologies. However, no clear ranking can be made due to large uncertainties pertaining to investment and O&M Costs. Hydrogen Production is more attractive for low-cost CO2 capture than electricity Production. Costs of large-scale hydrogen Production by means of steam methane reforming and coal gasification with CO2 capture from the shifted syngas are estimated at 9.5 and 7 €/GJ, respectively. Advanced autothermal reforming and coal gasification deploying ion transport membranes might further reduce Production Costs to 8.1 and 6.4 €/GJ. Membrane reformers enable small-scale hydrogen Production at nearly 17 €/GJ with relatively low-cost CO2 capture.

Gerold Thek - One of the best experts on this subject based on the ideXlab platform.

  • wood pellet Production Costs under austrian and in comparison to swedish framework conditions
    Biomass & Bioenergy, 2004
    Co-Authors: Gerold Thek, Ingwald Obernberger
    Abstract:

    Abstract Owing to the rapidly increasing importance of pellets as high-quality biomass fuel in Austria and Europe within the last years, many companies, mainly from the wood industry, are thinking of entering this market. The calculation of the Production Costs before starting a pellet plant is essential for an economic operation. Based on comprehensive investigations within the EU-ALTENER project “An Integrated European Market for Densified Biomass Fuels” calculations of the pellet Production Costs loco factory for different framework conditions with basic data based on already realised plants as well as a questionnaire survey of pellet producers in Austria, South Tyrol and Sweden have been performed. The Production Costs for wood pellets are mainly influenced by the raw material Costs and, in the case of using wet raw materials, by the drying Costs. Depending on the framework conditions these two parameters can contribute up to one-third of the total pellet Production Costs. Other important parameters influencing the pellet Production Costs are the plant utilisation (number of shifts per week) as well as the availability of the plant. For an economic Production of wood pellets at least three shifts per day at 5 days per week are necessary. An optimum would be an operation at 7 days per week. A low plant availability also leads to greatly increased pellet Production Costs. A plant availability of 85–90% should therefore be achieved. The calculations show that a wood pellet Production is possible both in small-scale (Production rates of some hundred tonnes per year) as well as in large-scale plants (some ten thousand tonnes per year). However, especially for small-scale units it is very important to take care of the specific framework conditions of the producer, because the risk of a non-economic pellet Production is considerably higher than for large-scale systems. The direct comparison of typical pellet Production Costs in Austria and Sweden showed the Swedish pellet Production Costs to be considerably lower due to larger plant capacities, the combination of pellet Production and biomass CHP or biomass district heating plants and the implementation of technologies which allow an efficient heat recovery from the dryers. Moreover, another difference between the Austrian and the Swedish framework conditions is the price of electricity, which is much lower in Sweden.

Augusto Uasuf - One of the best experts on this subject based on the ideXlab platform.

  • wood pellets Production Costs and energy consumption under different framework conditions in northeast argentina
    Biomass & Bioenergy, 2011
    Co-Authors: Augusto Uasuf, Gero Becker
    Abstract:

    Abstract The development of cleaner and renewable energy sources are needed in order to reduce dependency and global warming. Wood pellets are a clean renewable fuel and has been considered as one of the substitutes for fossil fuels. In Argentina, large quantities of sawmill residues are still unused and wood pellets Production could be seen as both, as an environmental solution and an extra economical benefit. The general aim of this study was to determine the wood pellets Production Costs and energy consumption under different framework conditions in northeast Argentina. The specific Costs of wood pellets for the different scenarios showed relative lower Costs comparing to the ones reported in other studies, ranging from 35 to 47 €/Mgpellets. Raw material Costs represented the main cost factor in the calculation of the total pellets Production Costs. A lower specific Production cost was observed when 50% of the raw material input was wood shavings. The specific electricity consumption per metric ton of pellet was lower in scenarios with higher Production rate. Lower heat energy consumption was observed in scenarios that have a mixed raw material input. The most promising framework condition for Northeast Argentina, in terms of Costs effectiveness and energy consumption could be acquired with Production rates of 6 Mg/h with sawdust and wood shavings as raw material. However, simultaneous increment of the electricity by 50% and raw material price by 100% may increase the specific Costs up to 50%.