Professional Documents
Culture Documents
1.0
Definition
The Oxford English Dictionary (2010) states biomass as a combination of two words namely:
bio which means comprising elements of biography and mass which means a dense
aggregation of objects having the appearance of a single continuous body. When combined,
the word biomass can mean the total quantity, usually expressed as weight, of specified
organisms (or organic material) in a given area or volume of habitat or organic material
regarded as a source of fuel; (potential) fuel derived directly from living matter (Biomass,
2010). In the context of this paper, biomass will be defined by the latter definition.
Branching out further, biomass is a general term which includes phytomass or plant
biomass and zoomass or animal biomass (Saidur et al., 2011). Phytomass is stored in the
plant when the solar energy is converted to chemical energy by way of photosynthesis. When
animals consume plants, the energy is released and absorbed to become zoomass in the
animal.
2.0
When biomass is converted into energy by means of combustion, carbon dioxide (CO2) is
released similar to the burning of fossil fuels. However, the amount of CO2 released from the
combustion of biomass is the same amount which the original plant absorbed from the
atmosphere during its growing stage. In contrast to the burning of fossil fuels which releases
CO2 which has been locked in the earth for millennia. Thus, no net addition of CO2 into the
atmosphere occurs (Ciubota-Rosie et al., 2008). Figure 2.1 shows the carbon cycles of
burning fossil fuels versus burning biomass.
Figure 2.1. Carbon cycle of burning fossil fuels versus burning biomass
3.0
Adoption of Biomass
The importance of biomass in generating energy differs across the world. Table 3.1 shows the
average use of biomass for different parts of the world. Europe is lagging behind other
regions in terms of biomass adoption with only 3.5% of the final energy consumption being
biomass (Demirbas, 2009).
Table 3.1. Use of biomass across different world regions (Demirbas, 2009).
Region
Africa
South Asia
East Asia
Latin America
Europe
North America
Middle East
4.0
Sources of Biomass
Sources of biomass are divided into four main categories: wastes, forest products, energy
crops and aquatic plants (Ciubota-Rosie et al., 2008). Table 4.1 details some sources of
biomass belonging to each category.
Wastes
Examples
Agricultural production and processing wastes
Mill and urban wood wastes
Urban organic wastes
Crop residues
Logging Residues
Sawdust
Forest Products
Shrubs
Wood
Trees
Bark
Short rotation woody crops
Herbaceous woody crops
Oilseed crops
Energy Crops
Forage crops
Starch crops
Sugar crops
Grasses
Water hyacinth
Water weeds
Aquatic Plants
Rushes
Algae
Reed
Additionally, the excreta from animals also contain stored energy which may be used
as fuel (Miller, 1984). However, there are many harmful by-products of burning animal
excreta which makes it unsuitable for energy generation.
5.0
5.1
The Renewable Heat Incentive (RHI) is the worlds first long-term financial program aimed
at supporting renewable heat (Increasing the use of low carbon technologies, 2014).
Initially launched in November 2011 for the non-domestic sector, it is planned to be expanded
to include domestic residences in April 2014. Under the RHI, property owners who meet
specific criteria are entitled to receive payments of 2,135 to 3,390 a year for 20 years
(Wood fuelled heating, 2014).
5.2
Published in 2003, this paper set the UKs energy policy up to the year 2050. Four goals were
set by this paper (UK Department of Trade and Industry, 2003):
1.
2.
3.
4.
The use of biomass can help achieve the goals set by this paper especially in terms of a
reliable energy supply.
5.3
The Climate Change Levy (CCL) is a tax that applies to the industrial, commercial,
agricultural and public services sectors on the use of electricity, gas and solid fuels (Green
taxes, 2014). One important point of information regarding the CCL is that energy generated
from renewable sources will be exempt from the tax. Since biomass is a renewable source of
energy, then this form of energy will see more use as a cheaper alternative.
5.4
Renewables Obligation
The Renewables Obligation (RO) came into effect for England, Scotland and Wales in 2002
with Northern Ireland joining in 2005. Under the RO, any supplier of electricity must source
a proportion of the energy they produce from renewables which includes biomass. For each
MWh of renewable energy produced, the supplier receives any number of Renewable
Obligation Certificates (ROC) depending on the type of renewable energy (Renewables
Obligation, 2014). If the supplier fails to meet the quota of ROCs, then the supplier must
pay an equivalent amount into a buy-out fund (UK Statutory Instrument, 2002). Therefore,
the ROCs provide added value to renewable energy. The banding levels of biomass, which
show how many ROCs per MWh for the period of 2013 to 2017, are shown in Table 2.1.
Table 4.1. Banding levels of biomass (Renewables Obligation banding levels, 2013).
Band
Dedicated biomass
Dedicated biomass with
2013/14
2014/15
2015/16
2016/17
(ROC/MWh)
1.5
(ROC/MWh)
1.5
(ROC/MWh)
1.5
(ROC/MWh)
1.4
1.9
1.8
1.9
1.8
CHP
Dedicated energy crops
5.5
This document is the British implementation of European standard for solid fuel heating
boilers up to 500kW and replaces the previous BS EN 303-5:1999. It sets requirements,
including for performance, efficiency and emissions, and testing and marking of biomass
burners or related equipment (British Standards Institute, 2012).
6.0
Investment Appraisal
Result
Payback period is 4 years 9 months
NPV at 4% is negative
IRR is 2.14%
Comment
Fails payback criterion
Fails NPV criterion
Very risky project
Based on the techniques used in the IA, implementing biomass boilers is very risky
and fails all of the financial criteria that were set. However, due to the worsening condition of
global warming and the increasing need to reduce carbon footprints, it is important that this
initiative must be carried out. The environmental benefits associated with utilising biomass
boilers outweigh its financial costs.
7.0
References
Biomass. (2010). In Oxford English Dictionary Online (3rd ed.). Retrieved from
http://www.oed.com/view/Entry/273676?redirectedFrom=biomass&
British Standards Institute. (2012). BS EN 303-5:2012: Heating boilers for solid fuels,
manually and automatically stoked, nominal heat output of up to 500 kW
Terminology, requirements, testing and marking. London: BSI.
Calculating Renewable Obligation Certificates. (2013). Retrieved May, 28, 2014, from
https://www.gov.uk/calculating-renewable-obligation-certificates-rocs.
Ciubota-Rosie, C., Gavrilescu, M. & Macoveanu, M. (2008). Biomass an important
renewable source of energy in Romania. Environmental Engineering and
Management Journal, 7(5), 559-568.
Demirbas, A. (2009). Biofuels from agricultural biomass. Energy Sources Part A, 31, 15731582.
Green taxes, relief and schemes for businesses. (2014). Retrieved May, 28, 2014, from
https://www.gov.uk/green-taxes-and-reliefs/climate-change-levy.
Increasing the use of low-carbon technologies: Renewable Heat Incentive. (2014). Retrieved
March 14, 2014, from https://www.gov.uk/government/policies/increasing-the-use-oflow-carbon-technologies/supporting-pages/renewable-heat-incentive-rhi
Miller, N. F. (1984). The use of dung as fuel: An ethnographic example and an archaeological
application. Palorient,10(2), 71-79.
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3
4
5
Annual Savings
Maintenance and
Overall Annual
Cumulative Overall
()
Consumables
Savings ()
Annual Savings ()
4,050
4,172
4,297
4,426
4,558
()
1,100
1,100
1,100
1,100
1,100
2,950
3,072
3,197
3,326
3,458
2,950
6,022
9,218
12,544
16,002
X=
( 15,00012,544 )
12
3,458
X=
2,456
12
3,458
X =0.7102 12
X =8.5 9 months
Payback occurs in 4 years 9 months
Since payback occurs after 4 years and 6 months, then the payback criterion is not satisfied.
Discount Factor at 4%
()
2,950
3,072
3,197
3,326
3,458
0.962
0.925
0.889
0.855
0.822
2,836
2,840
2,842
2,843
2,842
14,203
Discount Factor at 2%
()
2,950
3,072
3,197
3,326
3,458
0.980
0.961
0.942
0.924
0.906
2,891
2,952
3,011
3,073
3,133
15,060
Discount Factor at 5%
()
2,950
3,072
3,197
3,326
3,458
0.952
0.907
0.864
0.823
0.784
2,808
2,786
2,762
2,737
2,711
13,804
IRR=
NPV 1
( B A ) + A
NPV 1NPV 2
Where:
NPV 1= 60
NPV 2= 1196
A=2
B=5
NPV 1
( B A ) + A
NPV 1NPV 2
IRR=
60
( 5 2 ) +2
60( 1196)
IRR=
60
3 +2
1256
IRR= [ 0.0478 3 ] +2
IRR=0.1433 +2
IRR=2.14
Interest rates in the UK are currently at this level and are projected to increase beyond this
level. Therefore, this is a high risk project.