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Energies 2015, 8(12), 13846-13863; doi:10.3390/en81212399

Regionalized Techno-Economic Assessment and Policy Analysis for Biomass Molded Fuel in China

1
Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences, Guangzhou 510640, China
2
China Renewable Energy Society, Beijing 100190, China
3
Institute of Energy, Environment and Economy, Tsinghua University, Beijing 100084, China
*
Authors to whom correspondence should be addressed.
Academic Editor: Thomas E. Amidon
Received: 31 August 2015 / Accepted: 30 November 2015 / Published: 4 December 2015
(This article belongs to the Collection Bioenergy and Biofuel)
View Full-Text   |   Download PDF [898 KB, uploaded 4 December 2015]   |  

Abstract

As a relatively mature technology, biomass molded fuel (BMF) is widely used in distributed and centralized heating in China and has received considerable government attention. Although many BFM incentive policies have been developed, decreased domestic traditional fuel prices in China have caused BMF to lose its economic viability and new policy recommendations are needed to stimulate this industry. The present study built a regionalized net present value (NPV) model based on real production process simulation to test the impacts of each policy factor. The calculations showed that BMF production costs vary remarkably between regions, with the cost of agricultural briquette fuel (ABF) ranging from 86 US dollar per metric ton (USD/t) to 110 (USD/t), while that of woody pellet fuel (WPF) varies from 122 USD/t to 154 USD/t. The largest part of BMF’s cost composition is feedstock, which accounts for up 50%–60% of the total; accordingly a feedstock subsidy is the most effective policy factor, but in consideration of policy implementation, it would be better to use a production subsidy. For ABF, the optimal product subsidy varies from 26 USD/t to 57 USD/t among different regions of China, while for WPF, the range is 36 USD/t to 75 USD/t. Based on the data, a regional BMF development strategy is also proposed in this study. View Full-Text
Keywords: biomass molded fuel (BMF); pellet; briquette; techno-economic assessment; policy analysis biomass molded fuel (BMF); pellet; briquette; techno-economic assessment; policy analysis
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Xu, J.; Chang, S.; Yuan, Z.; Jiang, Y.; Liu, S.; Li, W.; Ma, L. Regionalized Techno-Economic Assessment and Policy Analysis for Biomass Molded Fuel in China. Energies 2015, 8, 13846-13863.

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