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Dear Luiz, Fred,
Kevin,Verma, et al,
I think we need to
take a nuanced approach and desist from making sweeping generalisations about
gasification economics which may not be valid for all countries. While it is
true that the cost of biomass harvesting (a labour intensive activity) in
developed economies may be quite high and the soil productivity lower thus
rendering the cost advantage unattractive, the situation in India (and other
tropical countries) is entirely different.
For instance, we
have installed several gasification systems for both thermal and electrical
applications (replacing fossil fuels such as Light Diesel Oil, High Speed Diesel
& Heavy Furnace Oil) at various geographical locations in India, and in most
cases the total capital investment has been recovered from 12-18 months. The
brief economics are as follows. I have given the figures in US currency
(and in Indian Rs. in brackets) considering exchange rate of Rs. 48/00 per US
$.
1) Landed cost of
biomass/kg = 2.08 US cents (Re. 1.00)
2) Calorific
equivalence of High Speed oil Diesel (or other oil) to biomass = 1:3.5
(Considering cold gas efficiency 85%)
3) Equivalent cost of
biomass for 1 Lt. of = 2.08 x 3.5 = 7.29 cents (Rs. 3.50)
4) Cost of O & M on
the gasification system/ lt of oil equivalent = 3.65 cents ( Rs.
1.75)
5) Interest and
amortisation costs/lt. of oil equivalent = 4.06 cents(Rs. 1.95)(@ 17.5% p.a. on
straight-line basis)
6) Total cost of biomass
energy/ lt of oil equivalent = 15 cents (Rs. 7.20)
7) Landed cost of
oil/lt. = 40.21 US Cents (Rs. 19.30)
8) Savings in diesel in
switching to biomass gasification/lt of oil equivalent = 25.21 cents (Rs.
12.10)
You will therefore
find that biomass is extremely attractive on economic considerations alone
in this neck of the woods. The numbers are valid for both thermal and
electrical applications and, from 01-04-02, the delivered cost of fossil
fuels is benchmarked to world prices (barring cross subsidies to the transport
and domestic sectors). Since the cost of diesel is currently partly
cross-subsidised by gasoline, the real savings would certainly be brighter in a
more equitable world.
So all of us need
not spread doom and gloom about its future till the dawn of a golden era
when fossil fuel depletion, mandatory carbon trading, and other such extraneous
props will underpin the biomass economy.
I also agree with
Fred that the biomass productivity based on per hectare yields are lower than
the ground reality.
Regards.
T R
Krisnaswamy,
Energreen Power
Ltd.,
First Floor,
'Ashroff',
# 1, Second
Street,
Nandanam
Extension,
Chennai, TN, India
- 600 035.
Tel : 91(44)
4321339, 4322499
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