THERMOECONOMIC ANALYSIS OF ELECTRICITY GENERATION THROUGH THE

BLACK LIQUOR GASIFICATION / GAS TURBINES SYSTEMS

Slvia Maria Stortini Gonzlez Velzquez

Suani Teixeira Coelho
Eletrotechnics and Energy Institute of the University of So Paulo (IEE/USP)
Av. Prof. Luciano Gualberto, 1289 - 05508-010 - So Paulo Brasil.

ABSTRACT

The pulp/paper segment is one of the higher biomass/energy consumers of the Brazilian
industrial sector. Its industries generate most of the consumed energy from by-products of the process
(firewood, barks, residues and black liquor), but still are not self-sufficient and no efficient technology
is being stimulated until now. Also, other problems exist, mainly the lack of adequate policies, which
must be solved in this segment. Cogeneration is an interesting option to increase electricity offers,
contributing for the reduction of the electric system risks of supply together with the diversification of
the Brazilian Energy Matrix. In this paper we evaluate the electricity generation costs in a real
pulp/paper plant, using the thermoeconomic analysis. Different cogeneration systems are considered,
including black liquor gasification/gas turbines systems, and their corresponding electricity costs are
calculated and compared with the electricity tariffs, defined by PROINFA. From the obtained results,
mechanisms are proposed to stimulate decentralized generation in pulp/paper plants.

KEYWORDS: Biomass, Black Liquor, Cogeneration, Gasification, Thermoeconomic Analysis.

INTRODUCTION
The pulp/paper segment, a very energy-intensive one, is among the main responsibles for
biomass use in the industrial sector, together with the sugar-cane industry, with the corresponding
environmental advantages, generating most of its energy consumption from process by-products
(firewood, barks, residues and black liquor), but still not self-sufficient..
From the point of view of these industries, the incentive to the self-sufficiency is at the risk of
supply interruptions - therefore the involved costs in these situations (loss of raw material, interruption
in the production, loss of final product quality, etc.) are very superior to the costs of the electricity auto-
production. These difficulties are quite well known, as well as the difficulties faced by the Brazilian
electric sector.
Previous studies (VELZQUEZ, 2000) indicate that this segment could reach the self-
sufficiency in electricity generation if adequate policies are implemented. However, price policies
developed by utilities are the same (tariffs reduced for the large consumers), and the price of the
electricity surplus generated, today defined by the PROINFA, is below the value considered attractive
by generators.
More recent studies (GALLEGO, 2004; LARSON, CONSONNI, KATOFSKY, 2003;
VELZQUEZ, 2006) search alternatives for electricity generation technologies used in the segment,
from commercially available technologies, such as higher pressure boilers, extraction-condensing
steam turbines up to gas turbines combined cycles. However, it is observed the need for more efficient
technologies (under development) as, for example, the gasification.

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 According to Walter (1998), the efficiency and the economic potential of the electricity
generation systems from biomass gasifiers mainly depend of the performance on the gas turbine for gas
on biomass. The gas turbines technological advances tend to be significant in the next years, for the
integrated action of the gas turbines manufacturers and research centers.
To contribute with the discussion of mechanisms to make possible the electric surplus
generation, this paper evaluates these costs in a real pulp/paper plant, the Klabin Papel e Celulose
Industry - Paran Business Unit.
These results are compared with the price defined by the PROINFA (44,07 US$/MWh1)2, for
wooden residues.

METHODOLOGY

In the economic analysis for a given plant where the only product is electricity (as, for example,
thermoelectric power plants), the capital, fuel and O&M costs are, in general, amortized by the
generated electricity, by means of conventional economic analyses. In the case where the process to be
analyzed is a cogeneration one, where two different products are generated (steam and
mechanical/electric energy), generation costs must be calculated trough thermoeconomics analysis
(MARTINS; NOGUEIRA, 1997).
These two types of energy produced (heat and work) are different from the point of view of the
Second Law of Thermodynamics and, thus, they are quantified based on the exergy concept, which
takes in consideration the steams thermodynamic conditions (COELHO, 1999).
Since the cogeneration is a process that involves more than one product, partition methods must
be used to determine the specific costs (in an exergetic base) of each one of the products (steam and
mechanical/electric energy) (PELLEGRINI; COSTA; OLIVEIRA JNIOR, 2005). Among these
methods, it has to be considered, in case of this study, the one that the plant allows to keep its energetic
process costs, without including in the generated electricity costs all the generation costs, as occurs
when the conventional economic analysis is applied (VELZQUEZ, 2000), where the costs are all
amortized by the generated electricity, admitting cost of the null steam.
The partition methods adopted to evaluate these costs are the equality method and the work
as by-product method, with the following considerations:
- Initially, process steam costs (12.5 bar - medium pressure and 4 bar - low pressure steam) and
electricity costs are evaluated for the current situation, with new Tomlinson boiler, that is the
technology in use in the segments industries. The specific cost of process steam (in the exergetic base)
is calculated by the equality method, or either, admitting they are equal to the electricity costs
(Equation 1);
Assuming this value for energy costs in the plant and using the work as by-product method, it is
calculated the cost of the electricity generated from different Black Liquor Gasification
Combined Cycle (BLGCC) configurations (which are more efficient). There they allow the
production of electricity surplus(Equation 2);
Considering that the generation costs of the electricity consumed in the process are the same of
the current situation, the generation costs of the electricity surplus in each BLGCC
configuration are calculated (Equation 3).
Szargut, Morris and Steward (1988) defines exergy as the obtained amount of work when a
mass is taken of the initial state until the state of thermodynamic balance, through reversible processes,
having only interaction with the environment.

1
Available in www.mme.gov.br. Access in November, 15. 2006.
2
Dollar quotation in R$ 2,3.

2
 On all the configurations, the thermoeconomic analysis is based on following cost rate balances
(BEJAN; TSATSARONIS; MORAN, 1996):

Cecons. .Wecons. + Cvb .mvb . EXvb + Cvm .mvm . EXvm = Ccap + Co&m + PCIlix .mlix .Clix + PCIbio.mbio .Cbio (1)

Ceger .liq =
(C
cap + Co & m + PCI lix . mlix . Clix + PCI bio . mbio . Cbio + PCI gn . mgn . C gn ) (Cvb . mvb . EX vb + Cvm . mvm . EX vm )
Weger .liq
C eexc . Weexc = Weger .liq . C eger .liq . Wecons . C econs (3)

The Table 1, below, presents the nomenclature of the variable used in equations.

Table 1 Nomenclature of the variable used in equations.

Weger.liq.
= Generated electricity (lquid)(a) MW
Ceger.liq. = Generated electricity specific cost (lquid)(a) US$/MWh
Cvb = Low pressure steam specific cost US$/kg
mvb = Low pressure steam Mass kg/s
Exvb = Low pressure steam specific exergy kJ/kg
Cvm = Average pressure steam specific cost US$/kg
mvm = Average pressure steam mass kg/s
Exvm = Average pressure steam specific exergy kJ/kg
PCIlix = Black liquor calorific power kJ/kg
mlix = Black liquor mass kg/s
Clix = Black liquor specific cost US$/kg
PCIbio = Biomass calorific power kJ/kg
- mbio = Biomass mass kg/s
Cbio = Biomass specific cost US$/kg
Ccap = Capital cost US$/s
Co&m= Operation and Maintenance cost US$/s
PCIgn= Natural gas calorific power kJ/kg
mgn= Natural gas mass kg/s
Cgn= Natural gas specific cost US$/kg
Ceexc= Exceeding electricity specific cost US$/MWh
Weexc= Exceeding electricity MW
Cecons= Specific cost of the electricity consumed in the process US$/MWh
Wecons= Consumed electricity in the process MW
Cecomp= Specific cost of the electricity bought in the retail US$/MWh
Source: Authors denomination.
Note: (a) The liquid generated electricity is that one generated in the most efficient configurations.

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 In this analysis the same methodology of thermoeconomic analysis applied to the sugar-cane
industry sector for Coelho (1999) is adapted to allow the electricity costs real evaluation (in an
exergetic base), of the medium and low pressure steam, as well as the surplus electricity cost. It was
selected work as by-product method, as a form to keep constants, for the plant, the electricity and the
process steam costs.
Beyond the system with Tomlinsons recovery boiler (technology in use) three configurations of
Black Liquor Gasification in Combined Cycle (BLGCC) are considered, to know, Low Temperature
BLGCC with a Mill-Scale Gas Turbine, High Temperature BLGCC with a Mill-Scale Gas Turbine,
High Temperature BLGCC with Utility-Scale Gas Turbine, that are evaluated by means of three
sceneries where if they present financial conditions next to the used ones in the national market
(Discount rate i of 15%, 17.5% and 20% a.a. amortized in 20 years, that is the time of the systems
lifetime) beyond specific costs to capital (for acquisition of new equipment and, therefore, not
amortized) and to O&M determined for Larson, Consonni and Katofsky (2003), for the fact that the
budgets have been carried through by two experienced American companies in gasifiers construction
authors consider that these are consistent prices.
Initially, the acquisition of a new Tomlinson3 bolier is considered, identical to that proposed by
Larson, Consonni and Katofsky (2003), and calculating the cost of the industrys steam generation, for
the equality method (admitting equal costs of the electricity, medium and low pressure steam)
(Equation 1) and, then, this value is fixed to calculate the generated electricity costs. In this
configuration, the plant still does not reach the self-sufficiency, however it needs to buy a minor
amount of electricity (10,9 MW).
It is initiated, then, the substitution of these Tomlinson systems for Low Temperature BLGCC
systems with a Mill-Scale Gas Turbine and High Temperature with a Mill-Scale Gas Turbine, adequate
configurations to the reality of the industry selected for the study. The High Temperature configuration
with a Mill-Scale Gas Turbine, after the thermodynamic analysis (Table 2), showed not taken care in
the process steam necessities and, therefore, it is not considered in this study.

Table 2 - Generated electricity in each configuration that attend the process needs.
Liquid
Consumed electricity in Surplus electricity
generated
the process generated
electricity
Low-Temp Mill
109.03 92.1 39.93
Scale BLGCC
Hight-Temp Utility
189.42 92.1 120.32
Scale BLGCC
Source: Authors calculations.

For both BLGCC configurations that attend to the plants needs, are used the steams generation
cost of the industry, having considered the new Tomlinson system acquisition, calculated from the
equality method (admitting equal the electricity costs and the medium and the low pressure steam
costs) that it is, then, fixed to calculate the generated electricity cost.
Pre-defined this value, from the work as by-product method, is calculated the cost of the
electricity generated from both BLGCC configurations (which is more efficient), that they attend to the
process and that they allow the production of electricity surplus (Equation 2).
In this calculations stage, due to the fact that the Klabin industry consume 31.1 MW of the
thermal cogeneration central office (to the cost calculated for Equation 1), to buy 38 MW of the

3
The industry purchase of the local concessionaire, today, 38 MW.

4
COPEL (to the price of 35 USS/MWh), besides using 23 MW generated for the hydroelectric plant
(Klabins property), a weighed mean of consumption is calculated, assuming itself that they will
continue to use the 23 MW of the President Vargas Plant which was, also, constructed to take care of
the plant.
Fixed the steams generation cost and the cost of electricity generation consumed in the process,
after that the generation of electricity surplus costs in each BLGCC configuration are calculated
(Equation 3).

OBTAINED RESULTS

Electricity and steam generation costs of the Tomlinson case configuration are obtained
considering that ce = clps = cmps (equality method). The obtained result for the electricity costs and
the steam of low and medium pressure, calculated for the equality method is presented in Table 3.

Table 3 Specific costs of electricity, of low and medium steam pressure from the Tomlinson
configuration.
PROCESS STEAM COST
GENERATED CONSUME (b)
ELECTRICIT D STEAM MEDIUM HIGH
SYSTEM (a)
Y COST COST PRESSURE PRESSURE
(US$/MWh) (US$/MWh) STEAM STEAM
(US$/t) (US$/t)
i = 15% a.a.
TOMLINSON 16,14 16,40 4,01 3,20
20 YEARS
i = 17,5% a.a.
TOMLINSON 18,70 18,70 4,57 3,65
20 YEARS
i = 20% a.a.
TOMLINSON 21,06 21,06 5,15 4,11
20 YEARS
Source: Authors calculations.
Notes: (a) Considering equal the costs of the medium pressure steam, the low pressure steam and the
generated electricity, for the new Tomlinson system acquired.
(b)
The costs (specific) of the low and medium steam pressure, calculated into an exergetic base
had been transformed into costs (specific) in mass base, aiming better sensitivity in the evaluation of
the results.

For the two BLGCC configurations, that attends to the industrys steam demand, are calculated
the electricity generation costs that kept equal and constants and the specific costs of the necessary
steam of low and medium pressure to the process, from the work as by-product method. And, then,
calculated the specific costs of the generated surplus electricity, aiming to keep constants the specific
costs of the electricity consumed in the process (in an exergetic base). Figure 1 shows the costs of the
generated surplus electricity in each configuration.

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 SPECIFIC COSTS OF EXCEEDING ELECTRICITY

120
105
90

105,99
94,50
US$/MWh

75 83,33
60
45

40,86
30
32,30

36,52
15
0
i = 15 % i = 17,5 % i = 20 %

BLGCC LOW TEMP. MILL SCALE BLGCC HIGH TEMP. UTILITY SCALE TOMLINSON

Figure 1. Specific costs of the generated surplus electricity.

Source: Authors calculations.

In accordance with Figure 1, the Tomlinson system, that is not self-sufficient, obviously, does
not generate excesses. The most interesting configuration is the High Temperature BLGCC with
Utility-Scale Gas Turbine, therefore it presents minor generation costs. For better agreement, Table 3,
below, summarizes all the calculations results of the specific generation costs obtained in this analysis.

Table 4 - Specific costs of electricity generation.

SCENERIES

GENERATED SURPLUS
SYSTEMS ELECTRICITY ELECTRICITY
COST COST
US$/MWh US$/MWh
TOMLINSON 20,25 ----
i = 15% a.a.
BLGCC LOW-TEMP MILL-SCALE 30,78 83,33
20 years
BLGCC HIGH-TEMP UTILITY-SCALE 20,76 32,30
TOMLINSON 22,55 ----
i = 17,50% a.a
20 years BLGCC LOW-TEMP MILL-SCALE 34,88 94,50
BLGCC HIGH-TEMP UTILITY-SCALE 23,35 36,52
TOMLINSON 24,91 ----
i = 20% a.a.
BLGCC LOW-TEMP MILL-SCALE 39,10 105,99
20 years
BLGCC HIGH-TEMP UTILITY-SCALE 26,12 40,86
Source: AuthorS calculations.
Notes: (a) Considering equal the medium and low pressure steam costs and the generated electricity
cost, for the new Tomlinson system acquired.

The comparison factors for the results evaluation are the generation costs and the electricity
price defined for the PROINFA in Brazil (44,07 USS/MWh). In this analysis is only considered the

6
BLGCC configuration of High Temperature with a Mill-Scale Gas Turbine, by the fact to have
presented compatible costs of surplus generation with the electricity tariff offered for the
concessionaires in Brazil, beyond the amount of generated surplus electricity (120,32 MW).
As it can be observed in the results presented in Table 4, the costs of the total generated
electricity, in all the configurations, are less than the price defined by PROINFA, what is presented
positive. However, the generation costs of the surplus electricity do not reveal competitive with the
electric tariffs offered by PROINFA, in all the configurations.
The High Temperature BLGCC configuration with a Mill-Scale Gas Turbine was the only one
to present a competitive value for the surplus electricity generation cost in relation to the electric tariffs
offered by the concessionaires in Brazil, independent of the considered scenario.

FINAL CONSIDERATIONS

With the results of this study, it is evident the necessity of other mechanisms that could make
possible the implementation of new cogeneration technologies. Further studies are necessary to
compare environmental aspects of biomass-origin electricity to those from conventional generation
systems (fossil fuels origin). The difference between the electricity generation cost and the electricity
tariff offered will be better observed when from the generation costs the carbon credits will be
deducted, inside Kyoto Protocol chances (MARTINS, 2004) and the increased externalities tariffs
(COELHO, 1999). Thus, would be obtained a more precise estimate of the invested capital recovery.
Taking in consideration the fact that the pulp/paper segment demonstrate great electricity
consumption, associated to the current situation of the Brazilian electric sector, to the lack of guarantee
in electricity offers and to the risks of supply interruption, the proposal presented here can be
considered viable, supported also in the some inherent advantages to the cogeneration process, that
collaborate indirectly in the electricity offer, brightening up the concessionaires overload.

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