Economic Assessment of Electric Power Production in a Co-Gasification Combined Heat and Power Plant Using Nigerian and South African Coal, Biomass and Tyre as Fuel

Fossil fuels such as coal and petroleum are the major sources of fuel for energy generation. These two fuels produce gaseous pollutants that are dangerous to the environment. In this study, the economy of a 10 MW Combined Heat and Power (CHP) plant is assessed using Coal-to-solid waste ratios of 1:1 and 4:1 under two financial conditions namely: With Feedstock Costing (WFC) and Without Feedstock Costing (WOFC). The annual feedstock requirement of the plant and feed rate were estimated from the lower heating value of the fuel that was determined from a model equation, and the results were used for the assessment of the power plant. The Net present value (NPV), internal rate of return (IRR), and payback period (PBP) as investment tools, were used to evaluate the venture for 10th, 15th and 20th year. Coal + Pine saw- dust (PSD) mixed at a ratio of 1:1 was the optimum SA and Nigerian feedstocks, while the optimum year was at the 10th year. The annual profit WFC from the Nigerian and SA 1:1 Coal-to-PSD fuel ratio were NGN828,200,058.80 (USA517,625.04) and ZAR87,128,003.27 (USA5,125,176.67). The profits were 13.82 % and 28.40 % higher than that of solitary gasification of coal, respectively. A comparison of the Nigerian coal and Nigeria Coal + PSD WFC, revealed that about 5,106,875.44 kg/Yr of feedstock was saved from Coal + PSD (1:1) which resulted to an increase in the profit by 43.24 % per annum, whereas 3,737,610.81kg/Yr was saved from the South African Coal + PSD which resulted to about 13.82 % compared to solitary gasification of the South African coal. The 1:1 Coal-to-Solid Waste ratio was the optimum blend for all the feedstocks investigated.