Abstract
Biomass gasification based power plants can play an important role in power sector in Malaysia with her abundant agricultural and forest resources. In this research energy and economic feasibility, and environmental impact of biomass gasification power plant has been analyzed and assessed for sustainable power generation in Malaysia, the plant being a clean development mechanism supported project. Gasification based power generation with a dual fuel internal combustion engine is found more biomass combustion power plant. But, the annual fuel cost is significantly higher with gasification plant claiming MYR 10 million/y for a generation of 67,500 MWh. The net present value, internal rate of return, and PBP for a 10-MW gasification based dual fuel internal combustion engine power plant without loan financing using empty fruit bunch pellet as biomass; with CER issued at USD16/tCO(2); and without loan financing provides net present value, internal rate of return, and PBP of MYR 19.68 million, 11.90%, and 6.05 y, respectively. With a loan financing at 3% per year with CER still be effective the net present value, internal rate of return, and PBP is estimated to be MYR 7.03 million, 3.97%, and 11.78 y, respectively. However, if a 60:40 debt equity is applied then the project net present value, internal rate of return, and payback period seen to improve slightly. The net present value attains a positive value of MYR 3.6 million. Internal rate of return and PBP values are found to be 7.08% and 8.27 y, respectively. The emission reduction achieved with the plant is 17,863 t CO2/y, 206 t SO2/y, 90 t NOx/y, and 10.37 t CO/y, respectively. Energy efficiency and tariff policy have been found to have highest impact on economic profitability of gasification based power generation units.