IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v88y2011i11p3651-3658.html
   My bibliography  Save this article

Economic feasibility assessment of rice straw utilization for electricity generating through combustion in Thailand

Author

Listed:
  • Delivand, Mitra Kami
  • Barz, Mirko
  • Gheewala, Shabbir H.
  • Sajjakulnukit, Boonrod

Abstract

The economic feasibility of biomass based combustion projects of various capacities to generate electricity from rice straw is evaluated for Thailand. For an assumed lifespan of 20years, rice straw-fueled combustion facilities would generate Net Present Values (NPV) of −3.15, 0.94, 2.96, 9.33, and 18.79 million USD for projected 5, 8, 10, 15, and 20MWe plants, respectively. Examining the effects of scale on the cost of generated electricity (COE) over the considered range of capacities indicates that COE varies from 0.0676USD/kWh at 20MWe to 0.0899USD/kWh at 5MWe. By scaling up the power plants, the variations of the financial parameters, namely NPV values, become less sensitive to the critical variables. As an example, if the fuel price, selling price of electricity, and the plant factor change by +36% (31.0USD/t), −16% (0.0758USD/kWh), and −14% (5650h/yr), respectively, the largest scale project is still appealing for investment. Nevertheless, to ensure a secure fuel supply, smaller scale power plants, i.e., 8 and 10MWe may be more practicable. A further sensitivity analysis is discussed in terms of the financial feasibility of the projects (i.e., NPV⩾0), and the investment appraisal condition (here, Internal Rate of Return or IRR⩾11%).

Suggested Citation

  • Delivand, Mitra Kami & Barz, Mirko & Gheewala, Shabbir H. & Sajjakulnukit, Boonrod, 2011. "Economic feasibility assessment of rice straw utilization for electricity generating through combustion in Thailand," Applied Energy, Elsevier, vol. 88(11), pages 3651-3658.
    • Handle: RePEc:eee:appene:v:88:y:2011:i:11:p:3651-3658
    DOI: 10.1016/j.apenergy.2011.04.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261911002236
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2011.04.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bridgwater, A. V. & Toft, A. J. & Brammer, J. G., 2002. "A techno-economic comparison of power production by biomass fast pyrolysis with gasification and combustion," Renewable and Sustainable Energy Reviews, Elsevier, vol. 6(3), pages 181-246, September.
    2. Delivand, Mitra Kami & Barz, Mirko & Gheewala, Shabbir H., 2011. "Logistics cost analysis of rice straw for biomass power generation in Thailand," Energy, Elsevier, vol. 36(3), pages 1435-1441.
    3. Boukis, Ioannis & Vassilakos, Nikos & Karellas, Sotirios & Kakaras, Emmanuel, 2009. "Techno-economic analysis of the energy exploitation of biomass residues in Heraklion Prefecture--Crete," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(2), pages 362-377, February.
    4. Junginger, Martin & de Visser, Erika & Hjort-Gregersen, Kurt & Koornneef, Joris & Raven, Rob & Faaij, Andre & Turkenburg, Wim, 2006. "Technological learning in bioenergy systems," Energy Policy, Elsevier, vol. 34(18), pages 4024-4041, December.
    5. Li, Hongtao & Marechal, Francois & Favrat, Daniel, 2010. "Power and cogeneration technology environomic performance typification in the context of CO2 abatement part I: Power generation," Energy, Elsevier, vol. 35(8), pages 3143-3154.
    6. Suramaythangkoor, Tritib & Gheewala, Shabbir H., 2008. "Potential of practical implementation of rice straw-based power generation in Thailand," Energy Policy, Elsevier, vol. 36(8), pages 3183-3187, August.
    7. Suramaythangkoor, Tritib & Gheewala, Shabbir H., 2010. "Potential alternatives of heat and power technology application using rice straw in Thailand," Applied Energy, Elsevier, vol. 87(1), pages 128-133, January.
    8. Liu, Wen & Lund, Henrik & Mathiesen, Brian Vad & Zhang, Xiliang, 2011. "Potential of renewable energy systems in China," Applied Energy, Elsevier, vol. 88(2), pages 518-525, February.
    9. Zeng, Xianyang & Ma, Yitai & Ma, Lirong, 2007. "Utilization of straw in biomass energy in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(5), pages 976-987, June.
    10. Yard, Stefan, 2000. "Developments of the payback method," International Journal of Production Economics, Elsevier, vol. 67(2), pages 155-167, September.
    11. Li, Hongtao & Marechal, Francois & Favrat, Daniel, 2010. "Power and cogeneration technology environomic performance typification in the context of CO2 abatement part II: Combined heat and power cogeneration," Energy, Elsevier, vol. 35(9), pages 3517-3523.
    12. Chau, J. & Sowlati, T. & Sokhansanj, S. & Preto, F. & Melin, S. & Bi, X., 2009. "Techno-economic analysis of wood biomass boilers for the greenhouse industry," Applied Energy, Elsevier, vol. 86(3), pages 364-371, March.
    13. Schmidt, Johannes & Leduc, Sylvain & Dotzauer, Erik & Kindermann, Georg & Schmid, Erwin, 2010. "Cost-effective CO2 emission reduction through heat, power and biofuel production from woody biomass: A spatially explicit comparison of conversion technologies," Applied Energy, Elsevier, vol. 87(7), pages 2128-2141, July.
    14. Eriksson, Gunnar & Kjellström, Björn, 2010. "Assessment of combined heat and power (CHP) integrated with wood-based ethanol production," Applied Energy, Elsevier, vol. 87(12), pages 3632-3641, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shafie, S.M., 2016. "A review on paddy residue based power generation: Energy, environment and economic perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1089-1100.
    2. Silalertruksa, Thapat & Gheewala, Shabbir H. & Sagisaka, Masayuki & Yamaguchi, Katsunobu, 2013. "Life cycle GHG analysis of rice straw bio-DME production and application in Thailand," Applied Energy, Elsevier, vol. 112(C), pages 560-567.
    3. Shafie, S.M. & Mahlia, T.M.I. & Masjuki, H.H., 2013. "Life cycle assessment of rice straw co-firing with coal power generation in Malaysia," Energy, Elsevier, vol. 57(C), pages 284-294.
    4. M. Mofijur & T.M.I. Mahlia & J. Logeswaran & M. Anwar & A.S. Silitonga & S.M. Ashrafur Rahman & A.H. Shamsuddin, 2019. "Potential of Rice Industry Biomass as a Renewable Energy Source," Energies, MDPI, vol. 12(21), pages 1-21, October.
    5. Shafie, S.M. & Masjuki, H.H. & Mahlia, T.M.I., 2014. "Life cycle assessment of rice straw-based power generation in Malaysia," Energy, Elsevier, vol. 70(C), pages 401-410.
    6. Ba, Birome Holo & Prins, Christian & Prodhon, Caroline, 2016. "Models for optimization and performance evaluation of biomass supply chains: An Operations Research perspective," Renewable Energy, Elsevier, vol. 87(P2), pages 977-989.
    7. Batidzirai, B. & Mignot, A.P.R. & Schakel, W.B. & Junginger, H.M. & Faaij, A.P.C., 2013. "Biomass torrefaction technology: Techno-economic status and future prospects," Energy, Elsevier, vol. 62(C), pages 196-214.
    8. Dabwan, Yousef N. & Gang, Pei & Li, Jing & Gao, Guangtao & Feng, Junsheng, 2018. "Development and assessment of integrating parabolic trough collectors with gas turbine trigeneration system for producing electricity, chilled water, and freshwater," Energy, Elsevier, vol. 162(C), pages 364-379.
    9. Huang, Y. & McIlveen-Wright, D.R. & Rezvani, S. & Huang, M.J. & Wang, Y.D. & Roskilly, A.P. & Hewitt, N.J., 2013. "Comparative techno-economic analysis of biomass fuelled combined heat and power for commercial buildings," Applied Energy, Elsevier, vol. 112(C), pages 518-525.
    10. Cambero, Claudia & Sowlati, Taraneh, 2014. "Assessment and optimization of forest biomass supply chains from economic, social and environmental perspectives – A review of literature," Renewable and Sustainable Energy Reviews, Elsevier, vol. 36(C), pages 62-73.
    11. Zhang, Qin & Zhou, Dequn & Zhou, Peng & Ding, Hao, 2013. "Cost Analysis of straw-based power generation in Jiangsu Province, China," Applied Energy, Elsevier, vol. 102(C), pages 785-793.
    12. Im, Yong-Hoon & Liu, Jie, 2018. "Feasibility study on the low temperature district heating and cooling system with bi-lateral heat trades model," Energy, Elsevier, vol. 153(C), pages 988-999.
    13. Mokheimer, Esmail M.A. & Dabwan, Yousef N. & Habib, Mohamed A. & Said, Syed A.M. & Al-Sulaiman, Fahad A., 2015. "Development and assessment of integrating parabolic trough collectors with steam generation side of gas turbine cogeneration systems in Saudi Arabia," Applied Energy, Elsevier, vol. 141(C), pages 131-142.
    14. Kazemi-Beydokhti, Amin & Zeinali Heris, Saeed, 2012. "Thermal optimization of combined heat and power (CHP) systems using nanofluids," Energy, Elsevier, vol. 44(1), pages 241-247.
    15. Kalt, Gerald & Kranzl, Lukas, 2011. "Assessing the economic efficiency of bioenergy technologies in climate mitigation and fossil fuel replacement in Austria using a techno-economic approach," Applied Energy, Elsevier, vol. 88(11), pages 3665-3684.
    16. Chitawo, Maxon L. & Chimphango, Annie F.A., 2017. "A synergetic integration of bioenergy and rice production in rice farms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 58-67.
    17. Li, Yan & Fu, Lin & Zhang, Shigang & Zhao, Xiling, 2011. "A new type of district heating system based on distributed absorption heat pumps," Energy, Elsevier, vol. 36(7), pages 4570-4576.
    18. Cvetinović, Dejan & Stefanović, Predrag & Marković, Zoran & Bakić, Vukman & Turanjanin, Valentina & Jovanović, Marina & Vučićević, Biljana, 2013. "GHG (Greenhouse Gases) emission inventory and mitigation measures for public district heating plants in the Republic of Serbia," Energy, Elsevier, vol. 57(C), pages 788-795.
    19. Ramamurthi, Pooja Vijay & Fernandes, Maria Cristina & Nielsen, Per Sieverts & Nunes, Clemente Pedro, 2016. "Utilisation of rice residues for decentralised electricity generation in Ghana: An economic analysis," Energy, Elsevier, vol. 111(C), pages 620-629.
    20. Verma, Aman & Olateju, Babatunde & Kumar, Amit, 2015. "Greenhouse gas abatement costs of hydrogen production from underground coal gasification," Energy, Elsevier, vol. 85(C), pages 556-568.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:88:y:2011:i:11:p:3651-3658. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.