Techno-Economic and Environmental Assessment of Power Supply Chain by Using Waste Biomass Gasification in Iceland

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(2020) 5:7

ORIGINAL PAPER

Techno‑Economic and Environmental Assessment of Power Supply Chain by Using Waste Biomass Gasification in Iceland Sahar Safarian1 · Runar Unnthorsson1 · Christiaan Richter1 Received: 13 February 2020 / Revised: 5 May 2020 / Accepted: 12 May 2020 © Springer Nature Switzerland AG 2020

Abstract In this paper, technical, economic and environmental assessments are carried out for power supply chain by using timber and wood waste (T&WW) gasification in Iceland. The Icelandic municipalities were clustered into 35 subgroups based on various number of households/ inhabitants. Different expenses were taken into consideration, like capital, installation engineering, operation and maintenance costs and the interest rate of the investment. Regarding revenues, they come from the electricity sale and the fee paid by the Icelandic municipalities for waste collection and disposal. The economic feasibility was conducted based on the economic indicators of net present value (NPV) and discounted payback period (DPP), bringing together three different scenarios, with interest rates of 8% for Scenario 1, 10% for Scenario 2 and 13% for Scenario 3. The environmental analysis was also performed relied on the environmental impacts of global warming (GWP), acidification (AP) and eutrophication (EP) potentials. The results show that changing the interest rate does not have significant impact on NPV and DPP for all studied scenarios. NPV is positive for the municipalities with more than 150 inhabitants or for a gasification plant with the capability to generate greater than 45 kW. Moreover, electricity generation based on T&WW gasification would lead to a GWP of 13 t­ onCO2eq (Subgroup 1) to 469 ­tonCO2eq (Subgroup 35), AP of 173.6 ­tonSO2eq (Subgroup 1) to 6187.2 ­tonSO2eq (Subgroup 35) and EP potential of 331.9 ­tonNO3eq (Subgroup 1) to 11,827.7 ­tonNO3eq (Subgroup 35), yearly. Keywords  Waste biomass gasification · Techno-economic analysis · Environmental assessment · Power supply chain · Waste to energy

Introduction Waste is a major problem that causes not only serious economic losses, but also significant environmental impacts. Better living standards, tourist streams and economic growth accelerate the waste generation in Iceland. Improper management of wastes has led to increased public concerns about health and environmental impacts. The total amount of municipal solid waste (MSW) in Iceland in 2010 has been estimated to 76 ± 6 thousand ton, based on data available from Sorpa, the waste management company in the Capital area. In other words, the annual amount of MSW per capita has been estimated to 222–257 kg (Sundberg et al. 2010). The amount of MSW produced in 2030 is estimated * Sahar Safarian [email protected] 1



Faculty of Industrial Engineering, Mechanical Engineering and Computer Science, University of Iceland, Hjardarhagi 6, 107 Reykjavik, Iceland

to approximately 100 ± 7 thousand ton. Generally 60% of this amount is organic material which 43, 41 and 16% of that are paper mixed, timber and wood and ga