JV 38-APPLICATION OF COFIRING AND COGENERATION FOR SOUTH DAKOTA SOYBEAN PROCESSORS

Cogeneration of heat and electricity is being considered by the South Dakota Soybean Processors for its facility in Volga, South Dakota, and a new facility to be located in Brewster, Minnesota. The Energy & Environmental Research Center has completed a feasibility study, with 40% funding provided from the U.S. Department of Energy's Jointly Sponsored Research Program to determine the potential application of firing biomass fuels combined with coal and comparative economics of natural gas-fired turbines. Various biomass fuels are available at each location. The most promising options based on availability are as follows. The economic impact of firing 25% biomass with coal can increase return on investment by 0.5 to 1.5 years when compared to firing natural gas. The results of the comparative economics suggest that a fluidized-bed cogeneration system will have the best economic performance. Installation for the Brewster site is recommended based on natural gas prices not dropping below a $4.00/MMBtu annual average delivered cost. Installation at the Volga site is only recommended if natural gas prices substantially increase to $5.00/MMBtu on average. A 1- to 2-year time frame will be needed for permitting and equipment procurement