Summary
The concept of using bioenergy byproducts for energy generation has been around for as long as shops have thrown sawdust in the stove for winter warmth. The challenge in biofuel powered electricity generation is in cost effective gathering, transport and processing the feedstock, even if it's "free" to pick up. This begs the question though whether this form of electricity generating is compared fairly against other new power plant construction, rather than "grid parity".
Analysis
The model of using biomass by-products is a challenge between cheaply available, possibly even "free", material for combustion, and the cost of bringing it in to be processed. Gathering this feedstock is very distance and labor intensive and costs go up considerably each mile the truck travels. If supplies were considerable enough, it would be best to build the electricity generator onsite.
From a higher observation plane, the argument of renewable energy like solar, wind or bioenergy having varying degrees of inability to compete with "grid parity" is increasingly a specious one. The real question is the ability of renewable energy to compete with NEW fossil-nuclear power plant construction. A 10 megawatt PV installation or 100 MW wind farm is not going to compete against a 40 or 50 year polluting coal power plant whose cost of generation is essentially the coal and some labor. That's like comparing the cost of a 2010 Toyota Prius to a 1970 Plymouth Valiant. Building any new "traditional" power plant is going to provide sticker shock once the public finds out the true, non-low balled price. Throw in the higher costs in the need to control pollution, uncertain fuel costs, whether coal or uranium, and the true cost of de-commissioning, and one will find that biomass, solar or wind can compete quite effective with any new power plant construction.
Mark Burger consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
