A key factor in the continuing development of fast pyrolysis processes to eventual commercial implementation is their economic viability. The current main interest in Europe is for electricity generation from biomass with the driving forces of environmental benefits, CO2 mitigation, socio-economic benefits from re­deployment of surplus agricultural land, and energy independence. These have led to significant fiscal incentives being offered for renewable electricity in many European countries such as prices of up to 200/kWh in Italy and up to 140/kWh in the UK.

An indication of the performance and specific capital cost of various thermal conversion to electrical power technologies is summarised in Figures 3.2 and 3.3 below. This clearly shows the potential impact of a successful development of flash pyrolysis and engines on the cost of electricity production at smaller scales of operation (e. g. up to 10 MWe) since capital costs are similar for pyrolysers as gasifiers and the higher efficiencies will thus give lower production costs.

3.8 CONCLUSIONS

Fast pyrolysis is becoming more accepted as an emerging technology with commercial potential for producing high yields of liquid fuels that can be used in many applications as direct substitutes for conventional fuels or as a source of chemicals. There are still problems to be resolved but it is clear that considerable progress is being made in firstly identifying these problems and then finding and defining solutions. There are some interesting challenges to be faced in modifying the fast pyrolysis technology, in upgrading the liquids and adapting applications to accept the unusual behaviour and characteristics of the liquid product. International co-operation is one of the key routes to facilitate such developments and this needs to be encouraged as bioenergy is increasingly accepted as a

potentially significant resource. Further research and development of the fundamental science which provides the tools for the design engineer to achieve the performance improvements is also required for successful exploitation.

Short term opportunities are likely to be in power generation due to the higher added value of electricity and the incentives available in several European countries. Chemicals will considerably enhance the overall economics but are further away in terms of development. It is important to remember that it may be more effective to modify the application to suit the liquid bio-oil than modify the liquid to suit the application.

Efficiency vs Size for Power Generation Systems (46)

Specific capital cost, $/kWe