An Economic Analysis of Biopwer Generation

Abstract

Bioenergy is considered as one of the significant potential energy resources to serve as a partial replacement for fossil fuels as a reaction to the growing concerns regarding fossil fuels. As an agricultural state, Missouri has great potential to use biomass for energy production. In 2008, Missouri adopted the RPS. But still about 80% of its power supply comes from coal. This study conducts a feasibility analysis of co-firing biomass in the current existing coal-powered plants in Missouri. Specifically, this study simulates and estimates the option of co-firing biomass in existing qualified coal power plants in Missouri by developing a linear programming model with six general scenarios. The results of this study show that although co-firing can reduce the emissions of GHG and environmental pollutants, it is still not an economically feasible option of power generation without any economic or policy incentive or regulation. Based on the results, energy strategies and policies that might promote the utilization of biomass and increase its competitiveness with fossil fuels are discussed and recommended.

Keywords: biomass, biopower, co-firing, optimization