Co-Location of Torrefaction, Power, Biofuel Plants Reduces Costs

by Chris Hanson (Ethanol Producer Magazine) Douglas Tiffany, assistant extension professor at the University of Minnesota, discussed the economics of co-locating torrefaction, ethanol and coal power plants at the University of North Dakota on Nov. 6.
“What we wanted to get an idea of was what would be the rates of return on equity for torrefaction plants and how that use of biocoal could help coal-fired power plants comply with new regulations that are hanging over their head at this time,” Tiffany said.
After the cost of biomass, an independent torrefaction plant may face a production cost of $42 per finished ton, Tiffany explained. However, if the plant was able to sell a certain amount of steam and gases, the cost would be estimated at $17 per ton. “A co-located torrefaction plant where it has an opportunity to sell those gases would be enjoying 16 percent rates of return on equity versus six percent without that [opportunity],” Tiffany continued. READ MORE