Biomass gasification, utilized for various energy uses including power generation, provides an attractive option of energysecurity for remote rural communities and simultaneously helps in reducing greenhouse gas emissions. However, widerapplication of biomass gasification technology is limited due to a number of technical and economic challenges. Althougha few studies have developed process-based models for reducing the costs of biomass supply chains through efficient logisticsoperations, there is a dearth of integrated modeling to capture the behaviour of the entire production system. In thispaper an integrated non-linear dynamic mixed-integer programming model, using optimization and simulation techniques,is developed for biomass gasification power plants using General Algebraic Modeling System (GAMS) computersoftware. The major variables considered in the model are harvesting and processing costs, logistic costs for biomass feedstockdelivery and storage, capital costs of power plant, operation and maintenance costs including labour, insurance andcapital financing, and other regulatory costs. The model provides different cost-benefit trajectories depending upon thescale of power generation from biomass gasification, thereby providing the prospective investors with information regardingmarket potential of the technology. The application of the model for setting up of a biomass gasification plant at a typicallocation in northwestern Ontario shows decreasing costs with increasing plant capacity up to 50 MW. The total costper MWh production ranged from CAD 47.65 for a 50-MW plant to CAD 79.55 for a 10M-W plant. Key words: bioenergy, biomass, market potential, modeling, systems analysis
Hybrid Renewable Power Systems for Generation of Own Power by Small and Medium-Scale Enterprises