Assessing the economic feasibility of flexible integrated gasification Co-generation facilities

Abstract

This paper evaluated the economic effects of introducing flexibility to state-of-the-art integrated gasification co-generation (IGCG) facilities equipped with CO2 capture. In a previous paper the technical and energetic performances of these flexible IG-CG facilities were evaluated. This paper investigated how market conditions affect the economics of flexible IG-CG facilities by analyzing several case studies. The IG-CG facilities used Eucalyptus wood pellets, torrefied wood pellets and Illinois #6 coal as feedstock and produced electricity, FT-liquids, methanol and urea. Results indicated that currently biomass is, compared to coal, too expansive. Therefore, feedstock flexibility is not attractive. Production flexibility between chemical and electricity production under current economic conditions reduces the profitability of the IG-CG facility. Therefore, with state-of-the-art technology and the current economic climate, introducing flexibility to IG-CG facilities is not economically profitable.