FEASIBILITY REPORT FOR THE ESTABLISHMENT OF A WOOD MANUFACTURING BY-PRODUCTS BASED BIOMASS BIOLER PLANT AT OBAFEMI AWOLOWO UNIVERSITY

OLD BUKATERIA COMPLEX. Prepared By The technical Report Writing Group of the department of Mechanical Engineering, Obafemi Awolowo University, Ile-Ife. (2011/2012 session) Submitted to The Coordinator, Technical Report Writing (CVE 401), Department of civil engineering,Obafemi Awolowo University, Ile-Ife, Osun State.

APRIL, 2012.

EXECUTIVE SUMMARY
Plant-derived biomass is now considered to be one of the most prospective energy sources for reducing carbon dioxide emissions and conserving fossil fuel resources. The effective utilization of biomass includes such biomass wastes as waste paper, building material wastes and agricultural wastes. CFB (Circulating Fluidized Bed) boilers provide the best solution for biomass power generation as they can accommodate a wide range of fuels and their environmental impact is small. Forest biomass represents a huge potential resource for energy production. Significant amounts of currently un-merchantable biomass are available from forest resource management and wood products manufacturing mills. This report surveys and compiles current studies regarding wood-manufacturing by-product biomass-based electric production and specifically applies existing knowledge to a potential facility in the Old Bukateria Complex, Obafemi Awolowo University having identified the economic development potential of a possible biomass power installation. This report will present information on the feasibility study including biomass fuel characteristics, fuel costs, energy value, potential impacts, and possible incentives. Potential biomass fuels in the area vary in quality, particularly in moisture content, which affects the energy produced per ton of dry weight. The available amounts of biomass are estimated to be able to fuel the proposed 5 MW facilities; each of 2.5MW with possibilities for an even higher production facility if fuel supply is larger. Costs of electricity generated from biomass are discussed, as well as issues that affect the value of biomass power.

CHAPTER 0NE INTRODUCTION

1.1 Background

The use of wood residue as a fuel source is once again becoming of interest provincially and throughout most of the industrialized world. The demand for manufactured compressed wood fuels (i.e., pellets, briquettes, etc) has gained considerable attention, largely as world oil prices have continued their steady price climb. Many of the technologies attracting attention have been around since the 1980s when considerable equipment development work was carried out by countries in Europe, Scandinavia and North America i.e., those in the northern latitudes where space heating consumes considerable amounts of conventional petroleum based energy supplies (David, 2008). According to David (op. cit.), a recent study by Dalhousie University indicated that the forest products industry in Nova Scotia has very little surplus residual waste available and has been quite successful at utilizing this resource in house or finding markets for this waste, which primarily consists of bark, sawdust, planer shavings and to a lesser degree un-debarked slabs. The largest potential pools of biomass that could potentially supply the needs of the biomass boiler plant would be through sustainable harvesting of underutilized or non merchantable tree species, utilization of pre-commercial thinning waste, and collection and utilization of materials left in the forest following commercial harvesting (CBCL Limited, 2003).

Biomass power generation is a proven, mature technology and is the single largest source of non-hydro renewable electricity, as about 9,733 megawatts (MW) capacity was installed in the United States in 2002 (EIA1,2003). Biomass installations range from very small units of 5-10 kW capacity to large facilities 50 MW and larger in size. Commercial scale power is considered 10MW and larger. The larger the plant, the greater the supply needed for available biomass. A typical 5 MW power plant would consume 8,000 bone dry tons (BDT) per year per MW, or 40,000 BDT total. It should be noted that by power plant standards a 5 MW facility is at the smallest possible end of the commercial spectrum. Existing studies conservatively estimate that over 40,000 BDT of biomass fuel is readily available in the immediate IleIfe environs annually. A dependable and readily available fuel supply of at least 120,000 BDT annually will be needed to attract capital investment in a commercial scale facility (David et al., 2011). Biomass fuel from our forested areas comes from residues of non-commercial wood. Residues can be gathered during milling, logging, thinning, and other forest management activities. With a biomass plant, efficient generation of forest residues helps in providing sustainable fuel supplies.

EIA Energy Information Administration

1.2
1.2.1

Significance of Biomass Power Generation

Definition of biomass Strictly speaking, the word biomass is an ecological term meaning the entire

stock of biological resources. However, this paper focuses on biological resources as a category of energy resource and limits the term biomass to any fuel derived from plants or vegetables. In addition to fuels derived directly from plants, such as firewood and charcoal, biomass in this paper includes such plant-derived wastes as waste paper and wood-derived wastes. Fossil fuel, which is a general term covering coal, petroleum and natural gas, is in contrast to this concept of biomass. Fossil fuel is believed to be originated from organisms that lived a long time ago and is a non-renewable energy source representing a stock of past biological activity. On the other hand, the biomass is a renewable energy source that can be consumed within the volume of production. This renewability makes biomass fuel markedly different from fossil fuel.

1.2.2 Renewable energy

Renewable natural energy includes biomass, solar energy (photovoltaic power generation and solar thermal electric power generation), geothermal energy, wind energy, wave energy, tidal energy, ocean thermal energy and hydraulic energy. Biomass is the only one of these energy types that is composed of organic substances. From the viewpoint of power generation, this means that the existing power generation systems developed for fossil fuels can also be used for biomass fuel.

1.2.3 Carbon cycle on the earth

Both biomass and fossil fuels are organic substances, and thus both generate carbon dioxide upon combustion. However, their effects on increasing atmospheric carbon dioxide concentration are different.

1.3

Objectives of the Project

The purpose of this report is to explore the feasibility of a woody biomass boiler

plant in Obafemi Awolowo University. This study was funded by the Project Planning and Development Unit (PPDU) of the institution upon the approval to carry out the feasibility study of its establishment as the management proposes for both a technical report and an economic analysis of the project. This effort was led by Adebanjo, the class representative of the Department of Mechanical Engineering, with a focus in energy production efficiency. The Department of Works and Maintenance Unit (DWMU) of the institution was contracted to provide a third-party independent analysis of the available woody biomass within the resource areas for the proposed facility.

1.4

Scope of the Project

Depending on the efficiency of the technology, equipment, and design, between

7,500 and 9,000 BDT of fuel is required to produce 1 MW on an annual basis. Two 2.5MW biomass plants strike a good balance between a reasonably compact and affordable facility (on a Naira per MW basis), while providing sufficient capacity so as to supplement the already available quantity of power in the institution. An investmentgrade source of fuel is required in order to engineer, procure, construct, and operate a biomass facility. After review of three potential locations (Central Market, Old Bukateria Complex, and Staff Quarters), it was determined that the Old Bukateria Complex was the best location for a potential facility. A 5MW facility will require approximately 40,000 BDT of fuel on an annual basis. However, regardless of the plant size, the fuel supply would have to meet investment-grade criteria. This required that the resource be such so as to secure a long-term (15-20 year) supply with reasonable fuel cost controls. This Fuel Resource Study determined that from the standpoint of the annual fuel requirement of 40,000 BDT, there will be sufficient fuel to justify the proposed biomass facility to be sited at the Old Bukateria Complex, Obafemi Awolowo University.

CHAPTER TWO METHODOLOGY In order to ensure successful actualisation of the biomass boiler plant project, several alternatives were considered while coming up with the method of implementation of the project. The entire decision process can be divided into the following categories: 2.1 Site Location Feasibility 2.2 Technical Feasibility 2.3 Financial Feasibility 2.4 Economic Feasibility

2.1 Site Feasibility As stated in the previous chapter ,the Old Bukateria Complex was selected as the best location for a potential biomass boiler facility. A comprehensive analysis and survey of the site was embarked upon. In coming to a conclusion on the exact spot for the location of the boiler plant, several alternatives were considered and factors such as distance from residential halls, ease of accessibility by vehicles, load-bearing capacity of the soil as well as land topography2 were used as criteria for selecting the most appropriate location for the plant (Asthana, 2008). The boiler plant will occupy an area of 500m by 100m within the site as shown (enclosed in a rectangle) in Figure 2.1.

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2

Land topography was considered due to hills prevalent in the area.

Figure 2.1 Area to be occupied by biomass boiler plant

2.2 Technical Feasibility The technical feasibility included the following considerations: 2.2.1 Production capacity 2.2.2 Construction materials 2.2.3 Construction personnel 2.2.4 Availability of bio-fuel

2.2.1 Production capacity Bearing in mind that the biomass boiler plant is intended for electric power generation for the purpose of supplementing electricity supply to the school by the Power Holding Company of Nigeria (PHCN), several options were considered as to the parts of the university campus to be powered by the electric power that will be generated by the plant. The essence of this was to determine the amount of expected electricity generation by the boiler which was in turn used to determine the expected capacity of the boiler, bearing in mind that an expected generation capacity of over 6MW would not be feasible for the university to embark upon due to financial constraints. The halls of residence were considered, but a visit to the various halls of residence revealed that majority of the students engaged in the use of several high-power consuming electrical appliances. The post-graduate hall of residence was the only exception to this. Thus, the option of powering the halls of residence with the electricity

to be generated was restricted to the post-graduate hall of residence. It was obvious that powering the other halls of residence with the electricity to be generated would only result in undue pressure on the biomass boiler plant and definitely increase the expected electricity generation to over 6MW.

The academics area was also considered. The amounts of electric power consumed in the various buildings as well as other facilities (such as the street lights, traffic lights, school dam and so on) were estimated in order to efficiently select the parts of the academics area to be powered by electricity generated by the plant. Based on the data obtained, a decision was made to power the entire academics area with the electricity to be generated. The sum of the electrical power consumption rates of the selected buildings and facilities gave an estimate of the expected electric power generation by the plant which was in turn used to determine the biomass boiler plant capacity. Total rate of electric power consumption = 5,326,200kWh per month (7.4 MW) (Faborode, 2009) Total rate of electric power consumption of selected areas = 3,384,000kWh per month (4.7 MW) Expected electric power generation = 5MW Biomass boiler plant capacity = 5MW

2.2.2 Construction materials The material for the boiler construction was not considered since it is to be bought as a finished product. Instead, several boiler-manufacturing companies were contacted and their price quotations were compared. Based on the expected capacity of the boiler plant, it was decided that two water heating boilers with 2500kW capacity each (with a working pressure of 6Bar and working temperature of 110oC) would be installed. Table 2.1 shows some of the companies contacted, the specifications of their available boilers (with closest specifications to what was requested) as well as their offer prices. Sonnebonne Energy Company was eventually selected and is expected to supply the university with two 2650kW capacity boilers, each with a working pressure of 6.12Bar and working temperature of 110.50oC.

Bearing in mind that all the materials to be used for the construction of the other parts of the biomass boiler plant (such as the pipes) will be materials that exhibit very high resistance to extremely high temperature and possess the ability to withstand very high pressure, several options were weighed as to the exact material to be used for the construction. High-Speed Steel3 (Grade M2) was eventually selected as the preferred material. A decision was made to use non-asbestos Calcium Silicate (to be supplied by Rockwool Insulation Company) as the insulating material for the steam pipes.

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3

High Speed Steel (HSS) has a melting point of 1528 C and can withstand pressure of over 15Bar.

Table 2.1 List of companies contacted for the supply of biomass boilers and their offer prices

Company

Biomass Boiler Specifications Capacity (kW) Working temperature (oC) Working pressure (Bar)

Unit price (N)

Sonnebonne Energy Co.

2650.00

110.50

6.12

55,000,000.00

Ecoflex Power Consulting

2550.00

115.20

6.00

60,000,000.00

Arco Energy Corporation

2450.00

120.00

6.10

50,000,000.00

Rockwool Co. (Energy division)

2400.00

110.00

5.90

45,000,000.00

Portland Energy Corporation

2650.00

110.00

6.20

60,000,000.00

2.2.3 Construction personnel A decision was made to contract the construction of the biomass boiler plant to an external engineering firm. It was also decided that the company would be charged with the responsibility of supplying all parts of the biomass boiler plant other than the boilers and the pipe-insulating materials. These include the steam-transporting pipes, the gasifier, the steam turbine, auger screw and so on. Several engineering firms were consulted and their price quotations were compared. The names of the companies consulted and their offer prices as well as the expected time of project completion are shown in Table 2.2. Mechelec Energy Company Ltd. was eventually chosen to handle the construction work after considering factors such as offer price, company reputation and expected time of completion of the project.

2.2.4 Availability of bio-fuel The Department of Works and Maintenance Unit (DWMU) of the institution was contracted to provide a third-party independent analysis of the available woody biomass within the resource areas for the proposed facility. Based on the report of DWMU, it was concluded that the required supply for woody biomass (majorly in the form of wood pellets, wood shavings and wood chips) needed to fuel the biomass boiler could be met. The result of the analysis is shown in Table 2.3.

Table 2.2 Comparison of prices and expected time of project completion stated by companies consulted for the construction of the biomass boiler plant Name of Company Project cost (N) Expected time of completion

Mechelec Energy Company Ltd.

654,000,000.00

13 months

Community Power Corporation

554,000,000.00

17 months

Ecoflex Power Consulting

853,000,000.00

9 months

Rockwool Co. (Energy division)

845,000,000.00

9 months

Adetos Power Corporation

756,000,000.00

10 months

Table 2.3 Sources of bio-fuel around Obafemi Awolowo University (The Department of Works and Maintenance Unit, OAU)

Source

Quantity obtainable (BDT per year)

Alakada Sawmill Lagere Sawmill Edun Wood-processing Company Kajola Sawmill Isopako Wood-processing Company Popoola Sawmill Igboya Sawmill Lonje Planks and Sawmilling Albert Furniture Works

5,200 6,700 4,250 3,740 7,680 5,275 3,850 6,470 1,230

Total

44,395

2.3 Financial Feasibility The estimation of the cost of the biomass boiler plant project (prepared by Mechelec Energy Company Ltd.) is shown in Table 2.4. The project is expected to cost the university a sum of N764, 000,000. After a thorough analysis of the universitys budget for the present and previous years, reasonable prediction of funds which the university could afford to pump into the biomass boiler project within the expected duration was made. Based on the predictions, the school is expected to support the project with a sum of N125, 000,000. A decision was therefore made to source for funds from the federal government, corporate organisations as well as alumni of the university. Names of people and bodies that promised to support the project financially as well as the amount of money promised are shown in Table 2.5. Access to these funds by the university will make the biomass boiler plant project financially feasible.

2.4 Economic Feasibility

According to Faborode (2009), the university community pays Power Holding Company of Nigeria (PHCN) an average sum of N 11,000,000.00 monthly. Also, about N

61,400.00 worth of diesel is required to run the two universitys power generating sets per hour, which translates to about N 1,473,600.00 per day.

On the other hand, it will cost the university an estimated sum of N 3, 000,000 to fuel the biomass boiler plant when it becomes functional.

Table 2.4 Estimation of project cost for biomass boiler plant

Biomass boiler plant component

Number of units

Price (N)

Boiler Gasifier Auger screw Fuel Store Site Preparation

2 1 2 7

110,000,000.00

Miscellaneous

Total cost

764,000,000.00

Table 2.5 Promised donations by individuals and bodies interested in supporting the biomass boiler plant project financially Name of individual/body Amount promised (N)

Federal Government of Nigeria Leventis Nigeria Limited Dangote Portland Cement PLC Arco Engineering Ltd. Alhaji B.A. Okubadejo Pst. P.A. Arowosegbe Chief S.O. Olatoyan Engr. S.A. Adebanjo Barr. G.A. Alima

320,000,000.00 150,000,000.00 175,500,000.00 30,000,000.00 10,000,000.00 7,000,000.00 8,000,000.00 13,500,000.00 16,000,000.00

Total amount

730,000,000.00

Also, the schools electrical power demand from PHCN will reduce to about 2MW which will in return reduce the amount payable to PHCN to N 2,000,000.00 per month and also completely eliminate the need for the electric power-generating sets. Thus, the universitys expenditure on electricity per month will be drastically reduced from N 11, 000, 000.00 to N 5, 000, 000.00 thereby boosting the schools economy.

CHAPTER FOUR CONCLUSION AND RECOMMENDATION

4.1 Conclusion Considering the high prospects of the establishment of the biomass boiler plant, from the financial and economic analyses given earlier, and having weighed all the alternatives for fueling the plant, wood manufacturing by-products appear to be the best source of fuel for the proposed plant. Also, after carrying out the site survey from the methodology employed as discussed in the earlier chapter (chapter two) taking account of the topography, distance from residential halls and so on, it was considered that the Old Bukateria Complex of the school appeared to be the best site for the plant and was taken account of in the feasibility study. Having obtained the results from the work allotted to the DWMU of the institution and carried out the economic, financial, site location and technical feasibility (as have covered Production capacity, Construction materials, Construction personnel, Availability of bio-fuel), it can be confidently said that the establishment of the wood manufacturing by-products based biomass boiler plant at the old bukateria complex of the institution is not energy conservative and environment friendly but also a long way down being economical and can serve as a source of revenue for the institution.

4.2 Recommendations As it has been said earlier, other sources of fuel can be considered based on their availability and emissions. Also, the production capacity can be increased since the project can serve as a means of financing the institution.

REFERENCES Aluko, M.E. (2004). Towards a Comprehensive Energy Policy: From Wood to Hydrogen. [Distinguished Alumni talk to the OAU Faculty of Technology] Asthana, A.K.(2008). Biomass as Fuel in Boilers, 1st ed. Asian Productivity Organization, Tokyo, Japan. David, L. P. (2008).Wood chip and wood pellet plant feasibility study. California. p. 12 David, N., Marvin, S., John, R. (2011). Boise county woody biomass feasibility. Renewable Energy System in Rural Development , 5, 7-27 Energy Information Administration (2003). http://www.eia.doe. gov/cneaf/solar.renewables/page/rea_data/table5.html Faborode, M.O. (2009). Energy Challenges at Obafemi Awolowo University. A presentation at the Committee of Vice-Chancellor Meeting, University of Ilorin, Ilorin. Kumasaki, M. (2000). Role of Bio-energy in a Society Based on Sustainable Resource Use. Japan Tappi Journal. Vol. 154, No. 11, pp. 69 74.

LIST OF FIGURES Figure 2.1 Figure 2.2 Figure 2.3 Area to be occupied by biomass plant Biomass boiler to be supplied by Sonebonne Energy Company Design plan of biomass boiler