Cost Estimates & Financial Analyses
As a former reseller of biomass boilers and CHP equipment CBER is in a good position
to supply realistic budget prices. Costing for major equipment and services cam be based either on inquiries or on pricing received
for equipment of similar size of other projects.
Capital costs are perceived as the main driver for financial viability. Financial
analysis done by CBER includes the following parameters:
Capital Costs (CAPEX):
The cost of a biomass energy plant is comprised
of the core equipment and the balance of the plant. Core equipment, such as the biomass boiler itself, typically only constitutes
a fraction of the installed cost. Costs include allowances for construction support services, engineering, insurance, permits and
a contingency of 20% of the total project cost.
Maintenance & Capital Replacement Cost:
Various components of a biomass
energy system are facing different life expectancies. Replacement, e.g. of a temperature probe can be expected every 2 -3 years while
refractory usually last 10 years, heat exchangers 25 years, buildings up to 50 years. Maintenance and capital replacement cost take
these life expectancies into account.
Operating Costs:
Non-fuel operating costs, such as staffing cost of energy systems using
solid fuels are typically higher than those using liquid fuels or gas. CBER can provide you with realistic numbers.
Fossil Fuel
and Biomass Price Forecasts:
Fossil fuel prices are next to impossible to forecast. The price of biomass is largely dependent on the location but tends to tails the fossil fuel price that in itself is a wild card. The average margin between biomass fuel and fossil fuel, however, may be somewhat constant. Price differentials might be a second best option, but should be enough to evaluate the economic viability of a biomass versus a fossil fuel fed district energy system.
