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Team Design Project 1
Team Design Project 1
Team Design Project 1
Conceptual Design
Electric energy production for the
lightning inside Finsa
UNIVERSIDAD DE LAS AMERICAS PUEBLA
LIY4031/TIN4011 BIOENERGY
TEAM F:
Arturo Arista 160958
Damián Morales Jácome 160905
Fernando Gonzalez Conde 160877
Hafsa Siddiqi 403338
10th November,2020
Abstract
This report present, explain and defend a proposal for a conceptual design of a biomass plant in
FINSA industrial park, Puebla. The bioenergy plant will produce 9,391MWh /year of electricity
by the combustion of 1584 tons/year of wasted wood pallets. The project is expected to supply
the energy required for pretreatment process, supply a percentage of the energy FINSA needs for
lightning. Furthermore, the implementation of this project will reduce 2,028 tCO 2e/year the
energy supply emissions. Also, the project will create 15 direct jobs in the plant.
Index
1. Introduction..................................................................................................................................1
1.1. Context and Proposal............................................................................................................1
1.2. Vision /perspective...............................................................................................................1
1.3. Objective...............................................................................................................................1
1.4. Report structure....................................................................................................................2
2.Argumentation..............................................................................................................................2
2.1. Community analysis.............................................................................................................2
2.2. Plant Design..........................................................................................................................3
2.2.1. Biomass..........................................................................................................................4
2.2.2. Pretreatment...................................................................................................................5
2.2.3. Plant Process..................................................................................................................5
2.2.4. By- product treatment....................................................................................................6
2.3. Electricity generation............................................................................................................6
2.3.1. Distribution of electricity and heat................................................................................7
2.4. Business Model.....................................................................................................................8
2.5 Transport and storage........................................................................................................8
2.6 Legal aspects....................................................................................................................10
3. Profit......................................................................................................................................11
3.1. Income............................................................................................................................11
3.2 Investment and equipment cost.......................................................................................12
3.3 Net Cash flow trough years.............................................................................................13
3.4 Emission Reduction.............................................................................................................14
4. Conclusions................................................................................................................................15
4.1 Main results.........................................................................................................................15
4. References..................................................................................................................................15
5. Annex.........................................................................................................................................17
List of Tables
Table 1. Amount of energy generated in plant for a certain time series .........................................7
Table 2. Related laws that affects the project..................................................................................9
Table 3.Related Institutios that affect the project..........................................................................10
Table 4.Related NOMS that affect the project .............................................................................11
Table 5. Net cash flow of the project trough years........................................................................13
Table 6. Lower and Higher Calorific Value of woods according to the moisture .......................16
List of Figures
List of Equations
1. Introduction
According to SENER (2018), in Mexico just 5% of all energy consumption is produced with
biomass. Furthermore, between 2016 to 2018 the bioenergy contribution to the national energy
supply, was the same. However, biomass can be a readily available energy resource, sometimes
mistaken as a waste or residue. Indeed, for some companies and industries biomass can be more
a problem than a solution. FINSA is a good example.
FINSA has a waste problematic involving wood pallets generation and its management.
In order to solve this problem, FINSA hired SOLEP (Soluciones Ecológicas Puebla) which is an
enterprise dedicated to design integral solutions to industry, commercial and household
environmental problematics. Nevertheless, the solution SOLEP is giving is limited to transport
and wood pallets sale. The last solution does not match with the vision SOLEP has neither its
ambitions. Therefore, SOLEP is willing to create a sustainable project which help to solve the
wood pallet treatment (combustion process) as well as a proposal including the production of
electricity for supplying part of FINSA´s energy demand.
1.2. Vision /perspective
The implementation of the project will focus on an economic vision. On one hand, the
contribution to sustainable development by producing part of FINSA´s electricity demand supply
at lower cost taking advantage of waste generation, as well as giving SOLEP a more profitable
business option than the one they have nowadays. On the other hand, taking care of the
environment by producing electricity from wood, reducing waste management cost as well as
avoiding wood waste. Last, the project demonstrates the economic sustain of it by a CANVAS
business model according to our main objectives presented in the next subsection.
1.3. Objective
The goal of this project proposal is to present, explain and defend a conceptual design for a
biomass energy system able to generate 9,391MWh of electricity per year in order to supply
FINSA needs for lighting. The generation of energy will be done from FINSA's residual pallet
generation, a total of 1584 tons a year. Therefore, SOLEP will give a more feasible and
efficiently option for managing FINSA´s wood residues as well as the generation of part of
FINSA´s electricity supply demand required. This project will aim to obtain a better profit
(relation between electricity cost CFE vs Project) as well as a sustainable solution of recycling of
wood pallets. Byproducts, mainly ashes, will be used for fertilizer production
2.Argumentation
This chapter approaches the elements and the relations involved in the bioenergy system design.
The content is divided into subsections to make it more understandable to the reader and is well
founded with reliable sources for each relevant case.
2.1. Community analysis
The community analysis development in first place to ensure quantity and quality of our raw
material, as well as a place to build the plant. This data will be used for the plant design.
Therefore, is important that the information of this subsection is clear and trustworthy.
The raw material provider is the “Parque Industrial FINSA Puebla” located in Parque
Industrial FINSA Puebla 72710 Cuautlancingo, Puebla. This location has a large number of
Puebla´s biggest industries, such as VW or FAURECIA. Therefore, these industries use wood
pallets in order to store and to move products or material between locations. Despite using way
too many wood pallets, FINSA has not started or integrated a recycling system for them. With
these facts, the project could have a high impact into reintegrating materials to the supply chain
as well as helping FINSA its waste management improvement.
According to Finsa (2020), the infrastructure of the park is designed with an intelligent
and environmentally friendly concept using equipment that focuses on minimizing
environmental impact and focusing on energy saving as solar panels or wind turbines. This
ecological culture could generate interest within FINSA companies
Also, FINSA is looking for sustainable building and design accreditations, this project
can help them to improve its opportunities to obtain these accreditations. About land availability.
There is an area in the north of the industrial park in which we are going to install the plant to
provide our service.
The land area the project can occupy is 2.5 hectares, located at the last spaces of FINSA
PARK as the image shows
Raw material quality will be supposed to be chemical free, reducing our materials to
wood, water and nails. This supposal is done due to the fact wood pallets are only used to
transport products and raw material from enterprises reducing the possibilities of it to
contaminate.
For raw material quantity, SOLEP gave the following information set in next table.
From table 1. it is observed the quantity of wood that is going to be provided for burning,
considering 5 days labor per week in the month, considering 30 days a month with a total 132
tons/month.
Figure 3. Bioenergy system showing a linear sequence of technologies. From residual wood pallets to supply a part of Finsa´s
electrical lighting demand (the Author based on Martins 2017).
2.2.1. Biomass
The biomass considered are wood pallets, and wood pallets will be considered as a solid biofuel
for the generation of electricity. The graph 1 shows the tendency of wood pallets from 2011 and
their expected increment throughout incoming years. As it is quite evident, while passing years,
the raw material (pallets) availability will increase and that will also affect our production. The
current availability of pallets is 6 tons /day. The collection of pallets is done 5 days/week which
makes a total of 132 tons/month, considering a constant frequency throughout year. Whereas the
quality of the pallets depends on the climate of Puebla, it will affect directly the moisture content
of wood pallets. According to Datos Mundial (2020) an average for the relative humidity of
Puebla is 56%, which is reflected in a moisture content of 50% for FINSA pallets.
25
20
TONS OF PALLETS
15
Actual Value
10 Polynomial (Actual Value)
Prediction
5 f(x) = 0.05 x² − 182.98 x + 184162.9
R² = 0.93
0
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
YEARS
Graph 1. Tons of pallets produced from Finsa and managed by SOLEP trough years and the prediction until 2030
2.2.2. Pretreatment
The pretreatment contains the process of artificial drying of wood pallets in order to reduce the
moisture content. Artificial drying allows to lower the moisture level until 6-15% depending on
the temperature, relative humidity, and steam circulation speed (Córdoba, 2005). So, depending
on the humidity we will consider our reduced moisture level 9%, and it will be further used in
the combustion process.
The project proposed intends to generate energy from the combustion of pallets. In terms of unit
operations involved, a biomass electric power generation plant which is very similar to a
traditional fossil fuel thermoelectric plant. Biomass is directly combusted to produce high-
pressure steam that drives a turbine generator to make electricity. In some biomass industries, the
extracted or spent steam from the power plant is also used for manufacturing processes or to heat
buildings. These combined heat and power (CHP) systems greatly increase overall energy
efficiency to approximately 80%, from the standard biomass electricity-only systems with
efficiencies are approximately 20%. Seasonal heating requirements will impact the CHP system
efficiency (Biomass for Electricity Generation, 2016). A simple biomass electric generation
system is made up of several key components. For a steam cycle, this includes some combination
of the following items:
Depending on the moisture content, the density can vary between 165-330 kg m -3, and the
energy density between 3.14 and 2.74 MJ m -3. The Net Calorific Value is between 19.06 MJ kg -1
for 0% humidity and 8.31 MJ kg-1 for 50% humidity. (M. Javier, 2018)
Figure 4. Flow Diagram of the Bioenergy Plant Process Proposed (the Authors).
For the byproduct's generation, the project is expecting to generate nails as well as ashes
from wood combustion. These byproducts will be removed after combustion process. For
nails management, SOLEP will sale to recycling companies at a price of 4 pesos/kg.
For ashes management, SOLEP main business is the production of organic fertilizer
from organic matter, therefore, ashes are useful in their fertilizer composition as a
nutritional compound.
There is not a specific quantity of ashes and nails generation but, both byproducts have an
easy treatment disposal or recycling method.
This section aims to dimension the power capacity installed (MW) of the plant from the biomass
collected and the pertinent power net capacity installed, afterward is calculated and estimation of
the amount of energy (MWh) that can generated the plant for a certain time series.
To make this calculation it is taken the LCV (lower calorific value) for wood when
having 9% of moisture, since is the amount of moisture in the woods after being subjected by the
drying process. The pertinent value of LCV was taken from Riegalhaupt ,2014 and is shown in
the annex section A. Also, the amount of wood is known, according to SOLEP´s CEO it is
obtaining 6 tons of pallets per day, five days a week, equal to 132 tons of wood pallets monthly.
It’s important to consider that the plant will have a storage center in order to guarantee a non-
stopping operation.
KJ kg KJ (1)
Powe r gross
h [ ]
=Biomass
h [ ]
*LCV
kg [ ]
Equation 1. Power gross generated by the plant
KJ kg KJ kJ
P owe r gross [ ] [ ]
h
=250
h
*16371
kg
= 4,092750
h[ ]
kJ 1h 1MJ
Powe r gross =4,092,750 [ ][ h
=
3600s 1000kJ ][
= 1.13694 MW ]
Power installed capacity of the plant= 1.13694 MW
Once we got the gross power that it can be generated, the net power installed is calculated
based on the power consumption estimation for the Rankine cycle of [ CITATION Ald \l 2058 ]
for a biomass plant of 1MW, equal to 50KW. See annex section B.
P net = 1.0869MW
Based on net installed power of the plant, it is estimated the amount of energy generated by
the plant. Knowing 1 MW produce a million of joules every second and that 1kWh is equal to
3,600,000 joules, this means is produced 1kWh every 3.6 seconds or 1MW in one hour. The next
table shows the amount of energy that will be supplied to FINSA in a year.
Table 1. Amount of energy generated in plant for a certain time series (the Authors)
Time 1 hour Daily Monthly Biannual Annual
Energy 1.087 26.087 782.600 1,565.199 9,391.195
[[Mwh]
-Heat transmission- All the heat generated in the combustion chamber will be recirculated and
used for wood drying pretreatment process.
In this Section, a CANVAS model is presented to determine our key partners, activities and
resources. Present our proposition value and our customers characteristics. Costs and income
streams.
The initial investment will be provided by SOLEP (Soluciones Ecológicas Puebla), which
include the purchase of whole plant machinery, the workers payment, lease payment as well as
the first month raw material purchase.
This section establishes the transport details of the biomass from the collection point at Finsa to
the power plant proposed at the north part of the plant, an estimated distance of 4km according to
Google maps.
The collection of the wooden pallets will be carried out by SOLEP´s workers trough
dump truck from the company with a capacity of 14m3, which can support a load of up to 36
tons (Guillen, 2020). Regarding the periodicity of collection will be weekly, this means the dump
tuck will be carrying approximately 30 tons of pallets once a week. The fact that SOLEP has its
own dump truck to carry out the transportation of biomass will be reflected in great savings for
the company, since it will not be necessary to hire a company in between.
In terms of storage, the plant will have a special area to store the pallets that will arrive
behind the truck and that will be used gradually in order to guarantee uninterrupted operation in
the plant. This storage center will have the capacity to preserve a quantity of 90 tons of pallets.
This section discusses the legislation related to the project and how this legislation affects the
implementation of it.
Law for Promotion and Development of States the procedures and the institutions we
Bioenergetics (LPDB for its Spanish must obey in order to implement our project
acronym) in an efficient way and within the legal
framework.
General Ecological Balance and This law affects our project because it states
Environmental Protection Act (LGEEPA for some institutions, we must deal with in order
its Spanish acronym) to do the project, also it has a regulation that
we must follow for being allowed of
producing energy.
Electric Energy Law (LIE for its Spanish This law has to do with the project because
acronym) states that
Secretariat for the Environment and Natural SEMARNAT affects our project because it
Resources (SEMARNAT for its Spanish stablishes some NORMS that we must
acronym) accomplish in order not to affect the
environment, and SEMARNAT can do audit
to our company for giving us a Certified to
prove we are concerning for the environment.
Secretariat of Energy (SENER for its Spanish The Law for Promotion and Development of
acronym) Bioenergetics gives to SENER the authority
for regulate the production, storage and sale
of bioenergetics, due our raw material is a
bioenergetic we must be regulated by them.
NOMS
Some Mexican norms that we must consider for this project are the following:
Table 4. Related NOMS that affect the project (The authors).
3. Profit
This section addresses the main gains obtained by the actors involved with the implementation of
the project, the relevant costs for the implementation of the project are established, as well as the
moment of recovery of the investment. Finally, it presents the environmental benefit that arises
from the project.
3.1. Income
The generation of electricity to supply part of the electrical demand supply FINSA needs for
lighting will generate a large amount of income for SOLEP. Therefore, there will be a constant
competition with the Federal Electricity Commission (CFE by its acronym in Spanish).
The graph 2 shows a comparison of the money that FINSA will pay along a year for the
electrical supply of 9,391,195 kWh, amount of energy produced by biomass SOLEP plant based
on the wood pallets waste generation. For the first case, the estimated price to be paid with the
CFE fee is found, giving a cost of $ 13,349,583.96 pesos; while in the second case the amount of
money to be paid with the SOLEP rate is shown, which is equivalent to $ 10,518,138.61 per
year. In this way, it is shown that with the implementation of the project, FINSA would save an
approximate amount of $ 2,831,445.35 per year. The estimations were made with data from CFE
(2020) and FINSA (2020) and are discussed in greater depth in section C of the annexes section.
Graph 2. Finsa´s Amount of money to pay in a year for electricity supply (CFE vs SOLEP)(The Authors).
As one of the main objectives set is to provide a more feasible and efficient option
towards SOLEP for the management of FINSA's residual pallets, the following graph compares
the amount of money that SOLEP will earn for each pertinent case. On one hand, there is the
profit that SOLEP currently obtains from the sale of pallets considering that they are sold at $ 2
pesos per kg according to information from the CEO of the company (2020), obtaining a profit
of $ 3,168,000.00 per year. On the other hand, the estimated profit that SOLEP would receive
with the implementation of the project by selling electricity to FINSA is shown, obtaining an
approximate profit of $ 10,518,138.61 annually. When comparing the earnings for each case, a
considerable difference of $ 7,350,138.61 pesos per year is obtained, thereby demonstrating the
degree of feasibility for the second option to be implemented.
Graph 3. Profit for SOLEP in 2 business options (Selling Pallets vs Selling Electricity)(The authors).
The initial investment estimate of the capital required for the construction of the plant
(including machinery and storage center) is based on the assertion stipulated by Lanne (2010), in
which it is estimated that the construction of a biomass plant would require 2 million dollars per
each MW installed, since the capacity of the plant oscillates around 1mW, a cost of $
41,490,620.00 pesos was established. This cost includes the machinery for the pre-treatment, the
pertinent for the electricity conversion process, as well as the storage center.
Regarding the cost of land available within the Finsa industrial park, it would be $
600,000 pesos per year according to FINSA (2020), since it will be a leasing program.
With respect to operation and maintenance cost, it was again based on Lanne 2010 by
having a biomass plant with similar conditions (1MW of installed capacity). Resulting in an
annual cost of $ 2,000,000. This scope includes the maintenance of the installation facilities, the
purchase of chemical materials for the maintenance of the boiler and other facilities such as ash
treatment.
Respecting to the cost of employees, it was estimated based on both literatures, Aldoma
(2010) and Lanne (2010) since they had similar information. The plant will have 15 direct
employees and $ 2,376,000.00 pesos will be paid annually. This salary will be distributed
according to the hierarchy of the employees within the plant and includes the relevant insurance.
Finally, the cost of purchasing the pallets, it will be approximately $ 792,000.00 per year,
since we obtain an annual number of pallets of 1,584,000 kg and according to information from
the CEO of SOLEP (2020) they are purchased at an average price of $ 0.5 per kg.
In the next table, it is shown the cash flow of the project throughout the years as well as the year
of investment recovery. For the annual costs it is consider an average inflation of 3.1% according
to the association México ¿Cómo vamos? (2020), as well as an average inflation in the price of
electricity of 5% per year, based on NRGY (2020). The investment recovery is shown in the 8°
year.
2500
2000
1500
1000
500
0
0 2 4 6 8 10 12
MONTHS
Graph 4. CO2 Emission for 9,391MWh/year in a combustion process. Fossil fuel vs wood biomass (the Author).
4. Conclusions
Finally, this chapter aims to present in a quantified way the main results and benefits of the
project implementation, as well as the areas for improvement and for future work.
4.1 Main results
The presented project emerges as a new solution for SOLEP and FINSA that will benefit both
actors. On one hand, a more focused alternative is given with SOLEP´s vision by taking
advantage of FINSA's waste to produce 9,391.195MWh every year. This energy will be sold to
FINSA, generating a considerably higher income compared to current earnings, approximately
an increase of $ 7,350,138.61 pesos. On the other hand, the 1584 tons/year of waste pallets from
FINSA are properly managed and used to sell electricity as a supply service with a price 25%
lower than the CFE quote, it also helps the social growth of FINSA by contributing to the
generation of 15 direct jobs.
Finally, the implementation of the project will prevent the emission of 2,028.7 tons of
CO2 per year, which shares the ecological and sustainable vision of both actors and will be
reflected in good publicity for both.
It is planned that in the future more companies within FINSA will be interested in our service
due to the economic-ecological factor of our service (cheaper and cleaner) and the good publicity
it would generate for FINSA. In this way, allowing us to manage their waste in order to increase
our production
4. References
Aldoma, G. (2010). Diseño de una Central de Biomasa Ampliable a 2MW. Universidad Rovira i Virgili,
Departamento de Ingeniería Electrónica Eléctrica y Automática.
1993. Norma Oficial Mexicana NOM-043-SEMARNAT-1993, que establece los niveles máximos
permisibles de emisión a la atmósfera de partículas sólidas provenientes de fuentes fijas..
[ebook] México. Available at:
<http://siga.jalisco.gob.mx/Assets/documentos/normatividad/nom043semarnat1993.htm#:~:text=
Norma%20Oficial%20Mexicana%20Nom%2D043%2DEcol%2D1993&text=Esta%20norma
%20oficial%20mexicana%20establece,s%C3%B3lidas%20provenientes%20de%20fuentes
%20fijas.> [Accessed 2 October 2020].
Biomass for Electricity Generation by U.S. Department of Energy Federal Energy Management Program
(FEMP) retrieved on October 10, 2020 from:
https://www.wbdg.org/resources/biomass-electricity-generation#:~:text=Direct%20combustion
%20systems%20feed%20a,a%20boiler%20to%20create%20steam.
Córdoba, R. (2005). Conceptos básicos sobre el secado de la madera. Kurú, 5. Retrieved November 5,
2020
FAO. (2001). Descripción de las Principales Bases de Datos sobre Bioenergía. Retrieved from
http://www.fao.org/3/j0926s/J0926s00.htm#TopOfPage
GoM, n.d. Normas Oficiales Mexicanas. [online] Semarnat.gob.mx. Available at:
<http://www.semarnat.gob.mx/gobmx/biblioteca/nom.html> [Accessed 2 October 2020].
INEEC (2014). Factores de emisión para los diferentes tipos de combustibles fósiles y alternativos que se
consumen en México. Retrieved from:
https://www.gob.mx/cms/uploads/attachment/file/110131/CGCCDBC_2014_FE_tipos_combustibl
es_fosiles.pdf
M. Javier, L. Jorge Capture of CO2 emissions by reforestation with energy crops in closured mining areas
volume 12, 2018.
NRGY. (2020). Análisis del historial de precios de energía en México para la tarifa industrial. Retrieved
from https://nrgy.mx/analisis-del-historial-de-precios-de-energia-en-mexico-para-la-tarifa-
industrial/
%20fija%20de%20jurisdicci%C3%B3n,incluida%20dentro%20de%20los%20sectores>
[Accessed 2 October 2020].
5. Annex
For the creation of the SOLEP quota, it was adapted to the CFE quota structure,
establishing a price lower than kwh $ 1.25 pesos. In addition, this fee does not have the rates of
CENER and the electricity market, which generates a considerable decrease in the amount of
money to be paid for FINSA.
It is important to consider that, since they are connected to medium voltage, the rates do
not have any kind of subsidy from the government (CFE,2020).