Business plan

Example A

The scope of the example below is to prove the economic savings of using biomass as a fuel in an industry in comparison with crude oil.

It can be assumed that the industry operates 24 hours per day for 250 days per year.

In this industry there is a steam boiler that produces saturated vapour with these operational characteristics:

• Steam power: 12.000 kg/h
• Pressure: 10 bar
• Fuel: crude oil 3500
• Calorific value: 9600 kcal/kg
• Overall efficiency: 90%
• Operational hours: 6.000 per year
• Fuel cost: 680 euro/tn

The operational hours have been calculated taking in concern the hours that needed for maintenance and other possible technical problems.

Based on the above characteristics, it can be calculated:

Heat amount: Q = 12000 kg/h x 560 kcal/kg = 6.720.000 kcal/h

Hourly fuel consumption: m_HFO(h) = Q / (c_HFO x n_HFO) = 6.720.000 / (9.600 x 0,90)

= 778 kg / h

Annual fuel consumption: m_HFO = m_HFO(h) x h = 778 x 6.000 = 4.668.000kg or 4.668tn

Annual fuel cost: 4.668 tn x 680 €/tn = 3.174.240 €

The crude oil is replaced with woodchips as a feedstock to operate the steam boiler.

Operational characteristics of steam boiler with biomass (woodchips) as a feedstock:

• Steam power: 12.000 kg/h
• Pressure: 10 bar
• Fuel: woodchips
• Calorific value: 3500 kcal/kg
• Overall efficiency: 85%
• Operational hours: 6.000 per year
• Fuel cost: 80 euro/tn

Based on the above characteristics, it can be calculated:

Heat amount: Q = 12000 kg/h x 560 kcal/kg = 6.720.000 kcal/h

Hourly fuel consumption: m_HFO(h) = Q / (c_HFO x n_HFO) = 6.720.000 / (3.500 x 0,85)

= 2.259 kg / h

Annual fuel consumption: m_HFO = m_HFO(h) x h = 2.259 x 6.000 = 13.554.000kg or 13.55tn

Annual fuel cost: 13.554 tn x 80 €/tn = 1.084.320€

Annual economic savings based on crude oil as a primary fuel

3.174.240 €– 1.084.320 € = 2.089.920 €

In the table below are presented three alternative kinds of biomass that can be used:

Based the data above it can easily been calculated the economic saving for each case.