Low-Grade Markets, Oil Subsidies

Ron Wenrich woodtick at kaley.net
Mon Jan 31 18:49:15 EST 2000


Samuel J. Radcliffe <SamR at GBandCO.com> wrote in message
news:3895A684.1FFFCEF at GBandCO.com...
> Does anyone know of a good recent analysis of the economics of burning
> wood for industrial steam or cogen? Specifically, I would like to know
> at what price points it makes sense to switch from wood to coal or
> natural gas, taking into account any and all capital expenditures
> required to make the switch.
>
When I was scouting around for co-gen operations in the early '80s, you
needed several things to have a successful  co-gen operation.  For each Meg
of generation, about 10,000 tons of wood waste is needed.  There must be a
use for low pressure trash steam.  This can be process steam for food
plants, or heat for large buildings (a hospital was considering it).  The
real kicker is that you need a really good electric contract price.  We were
using a 6.6 cent/kwh and wood waste at $12/ton to make the project viable.
It ended up being a 25 Meg plant, and I found wood waste available to site
several more.

But, times have changed and electric capacity has increased.  Electric
companies no longer are looking for any type of suppliers.  Our traditional
electric supplier has sold TMI to a foreign company and now is only in
distribution.   It may be feasible if you provide electric to an industrial
park, where you can beat industrial prices.  The electric company will
undercut you just to take the business away.

RDW


> ...Sam
> --
> Samuel J. Radcliffe
> George Banzhaf & Company
> 225 East Michigan Street, Suite 210
> Milwaukee, WI 53202
> --
> Voice:   414-276-2062
> Fax:     414-276-5206
> E-Mail:  SamR at GBandCO.com
> --
>






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