On average, supply costs of tradable biomass fuels in the EU-15 vary from 1.6 EUR/GJ (solid industrial residues) to 5.4 EUR/GJ (solid energy crops). On average, the supply costs of solid energy crops are close to those of imported biomass, which was taken at a standard level of 6 EUR/GJ. Single average supply costs of 23-29 EUR/GJ were determined for the refined bio-transport fuels bio-ethanol (from sugar beet and wheat) and biodiesel (from rape and sunflower seed).

Average supply costs of tradable biomass and crops for transport fuels (EUR/GJ).

 

EU-15

10 NMS + BG + RO

 

€/GJ

€/toe

€/GJ

€/toe

Tradables

 

 

 

 

Forestry by-products

2.4

100

2.1

88

Wood fuels

4.3

180

2.7

113

Dry agricultural residues

3.0

126

2.1

88

Solid industrial residues

1.6

67

2.5

105

Solid energy crops

5.4

226

4.4

184

Imported biofuels

6

251

6

251

Transport fuels

 

 

 

 

Biodiesel

23

≈ 960

23

≈ 960

Bio-ethanol

29

≈ 1200

29

≈ 1200

Source: BTG, 2004

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Concerning the liquid biofuels, ECN gathered the following data from literature.

Overview of investment costs and production costs

 

Investment costs

Productions costs

Productions costs

 

short term

long term

short term

long term

short term

long term

 

[€/kWth]

[€/kWth]

[€/litre]

[€/litre]

[€/GJ]

[€/GJ]

 Ethanol (sugar crops)

290

170

0.32 - 0.54

 

15 - 25

 

 Ethanol (wood)

350

180

0.11 - 0.32

5 - 15

 RME

150

110

0.50

0.20

15

6

 Methanol

700

530

0.14 - 0.20

0.10

9 - 13

7

 DME

   

0.27

 

14

 

 Fischer-Tropsch diesel

720-770

500-540

0.31 - 0.45

9 - 13

 Pyrolysis oil

1.000

790

0.06 - 0.25

4 - 18

 HTU diesel

535

400

0.16 - 0.24

5 - 7

 Source: ECN, 2003.

Competitiveness in the electricity market

Capital costs and efficiencies of principal bioelectricity and competing conversion technologies

Technology

Capital cost in 2002

(EUR/kWe)

Capital cost in 2020

(EUR/kWe)

Electrical efficiency

(%)

Cost of electricity in 2020 **

(EUR/MWh)

Existing coal – co-firing

250

250

35 - 40

24 – 47

Existing coal and natural gas combined cycle – parallel firing

700

600

35 - 40

34 – 59

Grate / fluid bed boiler + steam turbine*

1500 - 2500

1500 - 2500

20 - 40

57 - 140

Gasification + diesel engine or gas turbine - (50 kWe – 30 MW)*

1500 - 2500

1000 - 2000

20 – 30

 

50 - 120

Gasification + combined cycle - (30 – 100 MWe)

5000 - 6000

1500 - 2500

40 – 50

 

53 - 100

Wet biomass digestion + engine or turbine

2000 - 5000

2000 - 5000

25 - 35

52 - 130

Landfill gas + engine or turbine

1000 - 1200

1000

25 - 35

26

Pulverised coal – 500 MWe

1300

1300

35 - 40

48 – 50

Natural gas combined cycle – 500 MWe

500

500

50 - 55

23 - 35

* Larger scale systems will be characterised by the lowest cost and higher efficiency in the value ranges
** 15% discount rate; biomass fuel cost between 7,2 and 14,4 EUR/MWh except for digestion and landfill gas plants where fuel cost assumed to be zero; coal cost 5,8 EUR/MWh; natural gas cost between 5,4 and 10,8 EUR/MWh. The cost is calculated for electricity supply only and cogeneration could reduce the electricity cost significantly.
Source: Bauen et. al,2003