A Financial Analysis of Using Sawmill Residues for Cogeneration in Northern Ontario
DOI:
https://doi.org/10.15173/esr.v8i1.381Abstract
This paper investigates the financial viability of producing steam and electricity from forest biomass using a small-scale cogeneration facility (5 MW capacity) in the context of Geraldton, a small municipality in Northern Ontario. Two sources of biomass fuel were considered; sawmill residues and chipped biomass. Results of the financial analysis indicate that, for 100% capacity utilization, using sawmill residues for cogeneration would yield a net present value of over $7 million and an internal rate of return of approximately 17% On an initial investment of $6 million. In comparison, using chipped biomass would yield a net present value of about $2 million and an internal rate of return of 9% at 100% capacity utilization. Calculations based on 80% capacity utilization produced rates of returns of approximately 12% for sawmill residues and about 2% for chipped forest biomass respectively.
Downloads
Published
Issue
Section
License
Rights for Authors
As further described in our submission agreement (the Submission Agreement), in consideration for publication of the article, the authors assign to Energy Studies Review all copyright in the article, subject to the expansive personal--use exceptions described below.
Attribution and Usage Policies
Reproduction, posting, transmission or other distribution or use of the article or any material therein, in any medium as permitted by a personal-use exemption or by written agreement of Energy Studies Review, requires credit to Energy Studies Review as copyright holder (e.g., Energy Studies Review © 2014).
Personal-use Exceptions
The following uses are always permitted to the author(s) and do not require further permission from DigitalCommons@McMaster provided the author does not alter the format or content of the articles, including the copyright notification:
- Storage and back-up of the article on the author's computer(s) and digital media (e.g., diskettes, back-up servers, Zip disks, etc.), provided that the article stored on these computers and media is not readily accessible by persons other than the author(s);
- Posting of the article on the author(s) personal website, provided that the website is non-commercial;
- Posting of the article on the internet as part of a non-commercial open access institutional repository or other non-commercial open access publication site affiliated with the author(s)'s place of employment (e.g., a Phrenology professor at the University of Southern North Dakota can have her article appear in the University of Southern North Dakota's Department of Phrenology online publication series); and
- Posting of the article on a non-commercial course website for a course being taught by the author at the university or college employing the author.
People seeking an exception, or who have questions about use, should contact the editors.
