Secondary energy (converted into electricity, heat, and liquid fuels using biomass resources through appropriate conversion technologies) cost is calculated. Annual installation cost is calculated based on the following assumptions: 1) interest rate is 5%, 2) lifetime is 30 years (20 years for pyrolysis and fermentation generation), 3) annual expenditure is 12% (10% for fermentation generation, 17% for pylorysis, 27% for ethanol fermentation). This analysis shows that integrated gasification generation is promising if it is well developed as predicted. Pyrolysis is also promising if its technology cost can reduce in the future. Furthermore, the cost evaluation includes uncertainty. Resource cost depends on local situation and technology cost is subjective to technology RDD. Therefore, for practical use, it is necessary to analyze the bioenergy cost based on the latest information.

Biomass Resource Cost($/GJ)

Fig 6.4.3 Biomass Cost (Generation).

Further information

Yamamoto, H., et al., “Economic Analysis of Bioenergy Utiliztion Technologies”, The 18th Energy Systems, Economics, and Environmental Conference, pp..233-238, 2002 (in Japanese)

DeMeo, E. A., “Renewable energy technology characterizations”, Technical Report TR-109496, Electric Power Research Institute (EPRI) and U. S. Department of Energy, 1997 OECD, “Projected cost of generating electricity update 1998”, 1998