Utilization of eucalyptus for electricity production in Brazil via fast pyrolysis: A techno-economic analysis

A process model of a 2000 metric ton per day eucalyptus Tail Gas Reactive Pyrolysis (TGRP) and electricity generation plant was developed and simulated in Pro/II software for the purpose of evaluating its techno-economic viability in Brazil. Two scenarios were compared based on operational conditions in the country: a single biomass to bio-oil TGRP production facility and a distributed/satellite processing that consists of several small TGRP production facilities with aggregate capacity similar to the single one, both feeding into one centralized electricity generation plant. The selling price at the breakeven point of the electricity generated via TGRP was estimated to be US$0.34 and US$0.62 per kWh for the single and the distributed scenarios respectively, considering a 10-year payback period. The single capacity pyrolysis and electricity generation facility is found to have better economic benefits over the distributed plants of small sizes under the current conditions in Brazil. The results therefore indicate that pyrolysis of eucalyptus wood for electricity in a single facility cannot be competitive with the current electricity cost in Brazil (US$0.08-0.13/kWh) at present time. Considering auxiliary benefits such as climate change and carbon credits, plus the continuous increasing in the electricity market price in Brazil, both scenarios could be competitive in the future.