Feasibility study of cogeneration in a plywood industry with power export to grid

Cogeneration is proved to be one of the promising energy management techniques, which offers an efficient method of producing electricity and useful thermal energy from a common source. In the present study various cogeneration options for a plywood industry in south India with power export is analyzed. It is found that the industry has a good potential for cogeneration. Three schemes such as steam turbine gas turbine and combined cycle are evaluated on the basis of Annualized Life Cycle Cost (ALCC). The steam turbine based cogeneration is found to be the best option as it has the least ALCC. The comparison was based on lean gas as fuel but the industry can save the fuel cost by utilizing the waste wood available which enhances the scope and economic feasibility of cogeneration. It is found that the proposed scheme can provide a tremendous saving in the annual operating cost compared to the existing facility with a payback period of 2.6 years.