Technoeconomic Feasibility of Bioenergy Production from Wood Sawdust

Peyman Alizadeh, Lope G. Tabil (), Edmund Mupondwa, Xue Li and Duncan Cree
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Peyman Alizadeh: Department of Chemical and Biological Engineering, University of Saskatchewan, Saskatoon, SK S7N 5A9, Canada
Lope G. Tabil: Department of Chemical and Biological Engineering, University of Saskatchewan, Saskatoon, SK S7N 5A9, Canada
Edmund Mupondwa: Department of Chemical and Biological Engineering, University of Saskatchewan, Saskatoon, SK S7N 5A9, Canada
Xue Li: Saskatoon Research and Development Centre, Agriculture and Agri-Food Canada, 107 Science Place, Saskatoon, SK S7N 0X2, Canada
Duncan Cree: Department of Mechanical Engineering, University of Saskatchewan, 57 Campus Drive, Saskatoon, SK S7N 5A9, Canada

Energies, 2023, vol. 16, issue 4, 1-18

Abstract: In this study, the technoeconomic feasibility of bioenergy production from sawdust under four different case scenarios is simulated and compared. These scenarios include: (1) heat and electricity generation from raw sawdust; (2) pellet production from sawdust; (3) and (4) integrated biorefinery approach for the simultaneous manufacturing of multiple products (steam-exploded and torrefied pellets) and co-products (furfural, hydroxy methyl furfural (HMF), acetic acid), along with heat and electricity generation. Economic assessments such as cost analysis, payback time (PBT), net present value (NPV) and internal rate of return (IRR) were determined for these scenarios. The results showed that the approach of producing torrefied pellets, furfural, and acetic acid, along with co-generated heat and electricity, in terms of multiproducts and profitability (NPV (at 7%): USD 38.29 M) was preferable over other alternatives. In terms of simplified technology and other economic indices (PBT: 2.49 year, IRR: 51.33%, and return on investment (ROI): 40.1%), the scenario for producing pellets from wood sawdust was more promising than others. If plant capacity was not a limiting factor, the optimal size for the combined heat and power (CHP) plant was between 250–300 kt for the main product. Additionally, untreated and treated pellet plants equipped with CHP had an optimal size of 150–200 kt of wood pellets per year.

Keywords: power plant; sawdust; economic analysis; cost; net present value (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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