Research Article

Techno-Economic Analysis of Biomass Energy Utilization through Gasification Technology for Sustainable Energy Production and Economic Development in Nigeria

Table 18

Estimated cost structure of biomass gasification plant.

Installed capacity of the Biomass Gasification plant60 MW
Annual Hour of Operation8,000
Life in Years of plant20
Biomass in tons dry mass/year400,000

Biomass Gasification System Capital Investment$ 270,000,000
Interest on value of the machinery and equipment$ 25,650,000
Depreciation$ 51,300,000
Annual Labour cost$ 27,000,000
Annual repair and maintenance cost$ 8,100,000
Insurance and taxes$ 2,700,000
Total Biomass cost/year$ 10,800,000

Total Cost$ 395,550,000
Annual Electricity production from the plant170,294,000 kWh
Cost of operation per hour$ 49,443.75
Benefit delivered annually$ 123,804,026
Net Present Value of the benefit $ 1,053,943,697
Net Present Value of operation and maintenance cost $ 437,751,230
Accumulated Net Present Value of all the cost $ 833,301,230
Net Present Value of the project$ 220,642,467
Benefit Cost Ratio1.265
Payback period of investment 10.14 years
Internal rate of return17.55
Selling price of kWh of gasification electricity generated$ 0.727
Annual revenue from the sale of electricity$ 41,666,511