Retrofitting Biomass Combined Heat and Power Plant for Biofuel Production—A Detailed Techno-Economic Analysis

Abstract

Existing combined heat and power plants usually operate on part-load conditions during low heating demand seasons. Similarly, there are boilers designated for winter use that remain inactive for much of the year. This brings a concern about the inefficiency of resource utilization. Retrofitting existing CHP plants (especially for those with spare boilers) for biofuel production could increase revenue and enhance resource efficiency. This study introduces a novel approach that combines biomass gasification and pyrolysis in a polygeneration process that is based on utilizing existing CHP facilities to produce biomethane, bio-oil, and hydrogen. In this work, a detailed analysis was undertaken of retrofitting an existing biomass combined heat and power plant for biofuel production. The biofuel production plant is designed to explore the polygeneration of hydrogen, biomethane, and bio-oil via the integration of gasification, pyrolysis, and renewable-powered electrolysis. An Aspen Plus model of the proposed biofuel production plant is established followed by a performance investigation of the biofuel production plant under various design conditions. An economic analysis is carried out to examine the profitability of the proposed polygeneration system. Results show that the proposed polygeneration system can achieve 40% carbon efficiency with a payback period of 9 years and an internal rate of return of 17.5%, without the integration of renewable hydrogen. When integrated with renewable-power electrolysis, the carbon efficiency could be significantly improved to approximately 90%; however, the high investment cost associated with the electrolyzer system makes this integration economically unfavorable.