Consideration of a Combined Heat and Power Business by Wood Chips Gasification That Functions as a Dry Wood Chips Production and Supply Base

Abstract

The profitability of a combined heat and power business (base CHP business) by wood chips gasification which plays role in the production and supply base of semi-dry chips for an extremely small-scale CHP business (satellite CHP business) was evaluated. The simulation results revealed the following. The base CHP business can recover the investment within 14 years by only selling electricity. The profitability will deteriorate due to the selling of semi-dried chips, but the delay in recovering the investment will be limited to 3 years. The cause of the decline in profitability is the high cost of transporting semi-dry chips, and the main reason for this is vehicle lease fee. It is difficult for the base CHP business to pay the same amount for raw material wood chips as large-scale woody biomass power plants.