Techno-economic Evaluation of Power Generation from Industrial Wood Waste at Raiply Limited in Limbe, Malawi

Zaithwa Katuwa¹ and Hope Baxter Chamdimba^1,

¹Energy Resources Management, Malawi University of Science and Technology, Thyolo, Malawi

Cite this paper:
Zaithwa Katuwa and Hope Baxter Chamdimba. Techno-economic Evaluation of Power Generation from Industrial Wood Waste at Raiply Limited in Limbe, Malawi. Sustainable Energy. 2024; 12(1):1-5. doi: 10.12691/rse-12-1-1

Abstract

Amidst the rising cost of energy and unreliable power supply in Malawi, it is imperative that companies invest in alternative sources of energy. Industrial biomass waste should be considered first for economic and environmental reasons. This study was undertaken to assess the techno-economic potential of energy generation from industrial wood waste at Raiply Malawi Ltd in Blantyre. The methods used involved determining the energy demand of the company, quantifying and characterizing the wood waste, and using the System Advisor Model (SAM) to determine the techno-economic viability of the biopower system. The system's size, annual energy yield, installed cost, total installed cost per kW, levelized cost of electricity, carbon dioxide emissions per kWh, net present value, internal rate of return, and payback period were used to assess its feasibility. The study findings showed that the company generates 4,680 tons of sawdust, veneer waste, and offcut waste annually. The quantity and quality of the wood waste in terms of its physiochemical properties will allow the company to operate a biopower system with a 635-kW capacity that will generate 4,486.5 MWh of energy annually. The biopower system is expected to produce 643g of CO2 eq/kWh. The economic analysis showed that the proposed biopower plant will require an installation capital of $3,641,360 with a payback period of 9 years. The total installed cost per capacity was determined to be 5,735.40 $/kW. The proposed project has a net present value of $1,366,391, an internal rate of return of 15.45%, and a levelized cost of energy of 22.7¢//kWh. The techno-economic analysis of the project indicates that the project is viable, and Raiply Malawi must invest in the biomass power plant that in the long term will provide reliable power supply that meets 94.4% of the total energy demanded.

Keywords:
Industry Wood waste Energy Techno-economic System Advisor Model

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

References:

[1]	MCA, Star Report-Malawi. Millenium Challenge Account. 2020. [Online]. https:// assets.mcc.gov/.content/uploads/report-2020001236501-malawi-star.pdf.
[2]	GoM, National Energy Policy. Government of Malawi. 2018. [Online]. https:// npc.mw/wp-content/uploads/ 2020/07/National-Energy-Policy-2018.pdf.
[3]	Oseni, M. (2019). Costs of unreliable electricity to African firms. Energy for Growth Hub, 1–2. http://www.enterprisesurveys.org.
[4]	MIT, Malawi National Industry Policy. Ministry of Trade and Industry. 2014. https:// mitc.mw/trade/ images/Malawi-Trade-Policy.pdf.
[5]	MCA, Improving Power Quality and Reliability in Malawi. Millenium Challenge Account. 2021. [Online]. https:// assets.mcc.gov/content/uploads/evalbrief-20200022490-malawi-idp.pdf.
[6]	NSO, Final Energy Survey Report. National Statistical Office. 2014. [Online]. http:// conrema.org/ wp-content/ uploads/2019/01/Final-Energy-Survey-Report-August-2014.pdf
[7]	Kim, D. C., Kim, H. J., & Yoo, S. H, Valuing improved power supply reliability for manufacturing firms in South Korea: Results from a choice experiment survey. Sustainability (Switzerland), 10(12). 2018. [Online].
[8]	US. Department of Energy, Biopower: Power production from biomass can help meet renewable energy goals. 2010. [Online]. https:// www.energy.gov/sites/prod/files/2014/04/f14/ biopower_factsheet.pdf.
[9]	Fullerton, D. G., Semple, S., Kalambo, F., Suseno, A., Malamba, R., Henderson, G., Ayres, J. G., & Gordon, S. B, Biomass fuel use and indoor air pollution in homes in Malawi. Occupational and Environmental Medicine, 66(11), 777–783. 2009. [Online].
[10]	MoNR, National Charcoal Strategy. 1–44. Ministry of Natural Resources. 2017. [Online]. https:// www.frim.org.mw/wp-content/uploads/2017/11/Malawi_Charcoal-Strategy-2017.pdf
[11]	GoM, Malawi Biomass Energy Strategy. January, 151. 2009. [Online]. http:// conrema.org/ wp-content/ uploads/ 2019/01/Biomass-Strategy-2009.compressed.pdf.
[12]	FEMP, Biomass Energy — Focus on Wood Waste. Federal Energy Management Program. 2004. [Online]. https:// www.nrc.gov/docs/ML1409/ML14093A260.pdf.
[13]	Veeyee, K.F., Bup, N.D., & Boldor, D, Potentials of sustainable electricity production from sawdust by smallscale wood transformation units: A case study in Cameroon. International Journal of Energy and Environmental Engineering. 2020. [Online]
[14]	Racz, M. D., Darsy, A., Petrilean, D. C., & Irimie, S. I, The comparative analysis of the use of wood waste and natural gas in hot biogenerators from an energetic, economic and ecologic point of view. 00076. 2020. [Online].
[15]	Sands, R. D., Malcolm, S. A., Suttles, S. A., & Marshall, E, Dedicated Energy Crops and Competition for Agricultural Land. ERR-223, U.S. Department of Agriculture, Economic Research Service, USDA ERS R (223), 72. 2017. [Online]. https:// www.ers.usda.gov/webdocs/publications/81903/err-223.pdf?v=5200.6.
[16]	Daian, G., & Ozarska, B, Wood waste management practices and strategies to increase sustainability standards in the Australian wooden furniture manufacturing sector. Journal of Cleaner Production, 2009. [Online].
[17]	Mittlefehldt, S, Wood Waste and Race: The Industrialization of Biomass Energy Technologies and Environmental Justice Wood Waste and Race. 59(4), 875–898. 2019. [Online].
[18]	Creswell, J. W, Research Design- Qualitative, Quantitative and Mixed methods Approaches (V. Knight (ed.); 3rd ed.). SAGE Publications, 2009. [Online].
[19]	Blair, N., DiOrio, N., Freeman, J., Gilman, P., Janzou, S., Neises, T. and Wagner, M, System Advisor Model (SAM) General Description (Version 2017.9.5). Golden, CO: National Renewable Energy Laboratory, 2018, NREL/ TP-6A20-70414. https:// www.nrel.gov/docs/fy18osti/70414.pdf.
[20]	NREL, Reference Manual for the System Advisor Model’s Wind Power Performance Model. National Renewable Energy Laboratory. 2014. [Online]. https:// www.nrel.gov/ docs/fy14osti/60570.pdf.