Optimising Woodfuel Project Returns through Heat and Power Generation

Optimising Woodfuel Project ReturnsThrough Heat and Power Generation

CLA Woodfuel ConferenceDr Andrew Horsley, 30th October2013, Doddington Hall

About Arbor Heat and Power

• Innovative but pragmatic renewable energy solutions tailored for built environment

• Upfront consultancy services through to implementation and maintenance

• Investment in research and development to identify technologies for future applications

Introduction

• Woodfuel energy projects traditionally focussed around heat only

• Heat and Power (CHP) can be cost effectively generated from woodfuel using gasification technology

• Project planning and design requires different considerations

• Financial returns and carbon savings can be greatly enhanced over “heat only” projects

Biomass CHP - ConceptThermal

Store

CHP System

Backup Boilers

National Grid

House, Wood Fuel

Drying or Leisure

Renewable Heat

Supply

Import/Export

Electricity to balance

demand/supply

Renewable Electricity

Supply

Heat Supply for space

heating and hot water

Renewable

Fuel Supply

Natural Gas/Oil/Biomass

Biomass

Gasification

Syngas

Waste Heat

to Dry

Woodchip

What is Advanced Gasification?

Modelling Heat and Power Use

Modelling Heat and Power Use

-1500.00

-1000.00

-500.00

0.00

500.00

1000.00

1500.00

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Plant Operation over Selected 7 Days

Demand kWth

Boilers kWth

Thermal Store kWth

CHP kWth

-600.00

-500.00

-400.00

-300.00

-200.00

-100.00

0.00

100.00

200.00

300.00

400.00

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Plant Operation over Selected 7 Days

Demand kWth

Boilers kWth

Thermal Store kWth

CHP kWth

Biomass CHP Package 30kWe

• Scalable Solution down to 30kWe

• Other sizes 200kWe, 400kWe and 800kWe

• Many potential applications

Biomass CHP Package 30kWe

Woodfuel Requirements

• Coarse screw cut or screened wood chips

• Even quality with few fines

• Readily stored and dried

• Moisture content around 15-18%

• Wood drying opportunities are attractive projects in their own right

Woodfuel Requirements

Wood Drying Concepts

Financial Returns

• Offsetting traditional fuels: electricity and oil/gas

• Renewables Obligation Certificates – 2 per MWh electricity

• Renewable Heat Incentive 7.3p/kWh flat rate

• Exporting surplus electricity back to the grid

Typical Project Economics

Thermal Output

Electrical Output

Heat Offset Value

Electricity Offset Value

RHI Value

ROC Value

Annual Costs (fuel/maint.)

Annual Net Benefit

Capital Cost

Payback Period

Carbon Saving

Arbor ElectroGen (30kWe)

565,530 kWh

230,252 kWh

£47,238

£29,933

£40,153

£19,341

£46,000

£90,655

£407,947

4.5 years

295 tonnes

Summary

• Woodfuel can be converted to heat and power at small scale with highly attractive economics

• Project considerations are slightly different than for wood heat projects – smaller capacities with longer operating hours

• Careful integration and design is paramount• Wood fuel drying opportunities can offer heat loads to

optimise operation of plant throughout year• A viable alternative to biomass boilers in the right

circumstances• Carbon saving potential makes integration in rural new

build developments with strong planning objectives ideal

The Future – Next Generation Systems

• Small scale waste to energy CHP plants

– Removing waste disposal costs

– Providing clean low carbon energy

• First pilot plants in planning stages

Contact

Andrew Horsley

andrew.horsley@arborhp.com

07970 785429

www.arborhp.com