27-11-2012, 06:29 PM
Competitiveness of Biomass-Fueled Electrical Power Plants
Competitiveness of Biomass-Fueled Electrical Power Plants.pdf (Size: 71.7 KB / Downloads: 35)
ABSTRACT
One way countries like the United States can comply with suggested rollbacks in greenhouse
gas emissions is by employing power plant fueled with biomass. We examine the competitiveness of
biomass-based fuel for electrical power as opposed to coal using a mathematical programming
structure. We consider fueling power plants from milling residues, whole trees, logging residues, switch
grass, or short-rotation woody crops. We do this using a combined model of the agricultural and
forestry sectors. We find that the competitiveness of biomass depends in a key way upon the success
of research in developing improved production methods for short rotation woody crops without great
increases in costs.
Competitiveness of Biomass Fueled Electrical Power Plants
The United States is involved in international negotiations regarding greenhouse gas emissions.
Proposed agreements, such as the Kyoto Accord, involve rollbacks in greenhouse gas emissions
measured in terms of carbon dioxide(CO2) equivalents. One large source of CO2 is the burning of
fossil fuels (accounting for a little more than 1/3 of the U.S. emissions via a U.S. Department of Energy
estimate) . In turn electricity generation emits a large proportion of U.S. CO2 (coal usage alone
accounts for over 25% - Kopp). Compliance with the proposed agreements could make it desirable to
reduce electricity generation related emissions. Possibilities for doing so are to increase fuel efficiency,
use substitute fuels which do not emit as much CO2, or use substitute fuels which, when burned, yield
emissions which do not count against agreement emission levels. Biomass energy falls into the last
class.
Basic Requirements for an Assessment Methodology
Assessment of biomass fuels competitiveness for power plant operation mandates the use of an
assessment methodology which encompasses a number of aspects of the agricultural and forestry
sectors. Here we overview a number of considerations. In the next section we present technical
details on how these conditions are entered into our analysis.
Sector Level Model of Forestry and Agriculture
Most of the above conceptual features are present in a model we developed for other
purposes. We call that model the Forest and Agricultural Sector Optimization Model (hereafter called
FASOM). Here we overview the basic structure and assumptions of FASOM and the modifications
needed to undertake a biomass competitiveness analysis.
Basic Structure of FASOM
Several major strategies were followed in FASOM development. First, we deal with forest
products at the log level which simplifies forest product substitution modeling. Second, we adopt a
price endogenous modeling scheme, as has been done in a number of agricultural and forestry sector
analyses (including Adams and Haynes; McCarl and Spreen), because the market decisions being
modeled may involve large changes in the aggregate output of products and the use of factors. Third,
we use a net present value based version of the price endogenous approach following the approaches
in Spreen et al. or Sedjo and Lyons. Fourth, we substantially draw from other efforts.