Biomass Derived Combined Heat and Power from Decentralized Small-Scale Gasification: Updated Cost Conditions for the Italian Mountain Context and Competitiveness in Future Energy Markets
Year: 2025
Type: article
Abstract: International energy institutions project large shares of bioenergy as part of the decarbonization mix and small-scale generators in mountain regions can be interesting options in this space. In this study we assessed the techno-economics of small-scale (225 kWel) biomass gasification-combined heat and power based on updated costs, under present and future energy market conditions. We found that, at 7,500 operating hours/year and a 70 €/t biomass cost, a 388 €/MWh levelized cost of energy is obtained, which is uncompetitive compared to alternative options like photovoltaic-storage or biogas. A loss in yearly operating hours and a reduction in unit capital cost have large impacts on unit cost, while heat valorization and remuneration, biomass cost and plant size represent secondary factors. An econometric forecast of consumer electricity prices in Italy to 2040 showed a subsidy requirement of 237 €/MWh and a total lifetime subsidy of 142 M€ with a carbon tax on conventional electricity growing by 11 €/t/y over twenty years, which represents a suboptimal generation infrastructure investment compared to the photovoltaic-storage or biogas alternatives. The results illustrate fundamental aspects of current bioenergy economics and deliver useful evidence for renewable energy planning in European mountain regions and beyond.
Source: Waste and Biomass Valorization
Institution: Free University of Bozen-Bolzano
Language: English
Subfield: Biomedical Engineering
Field: Engineering
Domain: Physical Sciences
Open Access status: hybrid
Estimated APC paid: $3,790
Awards: G1374306608, G3023849138, G3259708813
OpenAlex ID: W4410788474