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Renewable Energy Technology Assessments - Kauai Island Utility ...

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Kaua’i <strong>Island</strong> <strong>Utility</strong> Cooperative<br />

<strong>Renewable</strong> <strong>Energy</strong> <strong>Technology</strong> <strong>Assessments</strong> 7.0 Biomass and Municipal Solid Waste<br />

Fuel Price ($/delivered MBtu, HHV)<br />

5.5<br />

5<br />

4.5<br />

4<br />

3.5<br />

3<br />

2.5<br />

2<br />

1.5<br />

1<br />

0.5<br />

0<br />

• The price for bagasse was estimated to be $25/ton, as received.<br />

• There is not a well established market from which to derive the cost of cane<br />

trash. The price of $25/dry ton for bagasse is used as a proxy because similar<br />

collection costs are expected.<br />

• A range of prices is used for banagrass including $70, $80 and $90/dry ton.<br />

This reflects various hauling distances and crop productivity in different areas.<br />

Black & Veatch has derived these costs through recent studies of this fuel<br />

resource. Because of the large supply potential of banagrass, this cost range is<br />

considered to act as cap for the cost of biomass fuel. Alternately, the price of<br />

coal could be used as a cap because a biomass plant would be well-suited to<br />

burn coal.<br />

A supply curve for the four previously mentioned fuels is shown in Figure 7-1.<br />

Most Likely Curve<br />

Maximum Banagrass<br />

Minimum Banagrass<br />

0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000<br />

Annual Quantity (MBtu/yr, HHV)<br />

Figure 7-1 - Biomass Fuel Supply Curve<br />

21 March 2005 7-3 Black & Veatch

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