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An Analysis on the Economics of Power

Generation Using Wood Wastes from Scrapped

Houses in Japan

著者名(英)

Yoshiki Ogawa, Hiroto Nakajima

journal or

publication title

The economic review of Toyo University

volume

35

number

1

page range

25-45

year

2009-12

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東洋大学「経済論集」

35巻1号 2009年12月

An Analysis on the Economics of Power Generation

Using Wood Wastes from Scrapped Houses in Japan

Yoshiki Ogawa

and

Hiroto Nakajima*

Abstract

  In this study, we developed a simulation model for estimating benefits and costs of biomass power genera- tion using wood wastes from scrapped-houses. First, we surveyed and checked various kinds of premise data fbr cost estimation in order to install in the developed model. Second, we make a series of simulations through this model by changing several parameters such as number of generating points ofwood wastes from scrapped-houses, gathering charge of wood wastes, scale of biomass plant, operation rate of biomass plant, selling price of electricity, govemment subsidy and so on. Third, we analyzed the economics of biomass power generation using wood wastes from scrapped-houses based on these simulation results f旨om various kinds of viewpoints.  Forth, we also surveyed barriers and problems in the effective-uses ofwood wastes from scrapPed-houses.   The conclusions of this study are as follows. First, Japan needs to establish the effective recycling me- thods fbr wood wastes from scrapped houses. Thus, the power generation is an important and effective option fbr disposing of wood wastes from scrapped houses as the potential pass in Japan. Second, espe- cially in the middle density region(Case 2), the large size of power plant such as more than 400 ton per day is required to show positive economics, and therefore we need to expect a governniental subsidy to biomass generation plant, or a special dealing on the gathering charge of wood wastes or selling price of electricity, We also need to consider the balance between the scale of plant and the secure procurement of input wood wastes, Third, Japan also needs to consider the elimination of several barriers and problems in order to ’ StUdent, Master’s course, Graduate School of Economics, Toyo University

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improve the economics of power generation using wood wastes from scrapped houses and to expand the ef- fective use of wood wastes.

Contents

1.Introduction 2.Present sitUations of wood wastes from scrapped houses in Japan 3.Simulation on economics of biomass generation using wood wastes 4.Estimation on gathering cost of wood wastes from scrapped houses 5.Results analyzed by model simulations

6.Concluding remarks

References

1.lntroduction

  The first commitment period of Kyoto Protocol are started from last year,2008. The utilization of bio- mass wastes is one of the most important options for achieving Japan’s Kyoto target in the first period. In the previous study, we analyzed the economics of biogas generation using fbod wastes in Japan(Ogawa, Y. and H. Nakajima[2008D. In this study, we would like to analyze the economics of biomass generation using wood wastes from scrapped houses, which have different gathering characteristics from food wastes. We would like to pay our attention especially to the relation betWeen the scale of power generation plant and the gathering method and cost of wood wastes from scrapped houses. We also would like to discuss various barriers to expand effective uses of wood wastes from scrapped houses in Japan.   We developed a simulation model fbr estimating incomes and costs of biomass generation using wood wastes from scrapped houses. First, we surveyed and checked various kinds of premise data fbr cost esti- mation in order to install in the developed model. Second, we made a series of simulations through this model by changing several parameters such as density of generating points ofwood wastes, gathering charge of wood wastes, scale of biomass power plant, operation rate of biomass power plant, selling price of elec- tricity, government subsidy and so on, Third, we analyzed the economics ofbiomass generation using wood wastes from scrapped houses based on these simulation results from various kinds of vieWpoints. Forth, we also surveyed baniers and problems in the wood wastes utilization in Japan. Finally, we discussed the possi- bility ofbiomass generation using wood wastes伽m scrapped houses in Japan.

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         An Analysis on the Economics ofPower Generation Using Wood Wastes from Scrapped Houses in Japan

2.Present situations of wood wastes from scrapped houses in Japan

2.1.Generation and recycling of wood wastes from scrapped houses

  There are various kinds of biomass wastes generated in Japan(MAFF[2007D, as shown in Fig.1. In these, livestock excreta(87 millions ton), drain sludge(75 millions ton)and pulp effluent(70 millions ton) show the largest volume of generation but they are already utilized with a relatively higher rate more than 70%.   The generation of food wastes which was discussed in our previ皿s study(Ogawa, Y and H. Nakaj ima [2008])is estimated at about 20 millions ton per year, also as shown in Fig. L The 20%of fbod wastes are recycled as compost, livestock feed or fat materials and the remaining 80%are burned or reclaimed at landfill. In addition, wood wastes such as house wood waste(4.7 millions ton), fbrest wood waste(3.4 millions ton) including血㎜ing wastes(14millions ton)also show a lower utilization rate. Recently, the effective use of wood wastes from scrapped houses is watched with keen interest.   From 2002, the Law on the recycling uses of materials related to building construction(abbreviated below as‘“the Construction recycling law”)was enfbrced, and after then, the effective use of recycle resources from building construction such as a lump of concrete-asphalt, a lump of concrete, wood wastes from scrapped houses, sludge and soil from building construction and so on has been promoted eagerly. Entering 2000’s, the generation of waste woods from scrapped house has been almost stabilized at the level of 4.6-4.8 mil- lions ton(MLIT[2006D, as shown in Fig.1.   Under the Construction recycling law, the target of recycling ratio for wood wastes in 2005 was 60%. The actual value of recycling ratio of wood wastes from scrapped houses reached to 68.2%in FY2005 and the ratio of recycling etc.(including reduce by simple burning)in FY2005 was 90.7%, as shown in Fig.2.   From this point of view, the actual recycling ratio could clear the 2005 target. However, the recycling of wood wastes from scrapped houses is somewhat delayed as compared to those of a lamp of concrete-asphalt and concrete. The actual ratio of recycling etc. in FY2005 reached to 90.2%, but this figure includes 22.5%of the reducing activity by simple buming. This means there is additional room for the effective recycling ofwood wastes from scrapped houses.

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(Main biomass wastes generated in Japan) Generated Amount @  (mi1. Tbn) Utilized Not utilized Livestock excreta 87.0 90% 10%

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20.0 20% 80% Disposed papers 37.0 60% 40% Pulp emuents 70.0 100% Sawing wood wastes 4.3 95% 5%      「1「      1 @      ド’ @      ’      {        ド1 V羅響縮灘ミ▽講 、「 .”@1螺影灘       「F      /   、磯%畷・、1、・ ク鰯、’  』     ’,D鯉織灘,      r   N Forest wood wastes 3.4 2% 98% Drain sludge 75.0 70% 30% Fa血ng wastes 14.0 30% 70% Fig.1       (Changes in generation of house wood wastes)         (1,000t)       6.5       6.0       5.5       5.0       45       4.O       FYI 995  FY2000  FY2002  Fy e OO5          (Source)Made from data in MAFF[2007】and MHT[2006] Generation of Biomass Wastes in Japan and Positioning of House Wood Wastes

(己nerated amount

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An Analysis on the Economics of Power Generation Using Wood Wastes from Scrapped Houses in Japan   (%)   100    90    80    70    60    50    40    3①    20    10     0         FY1995     FY2000    FY2002 (Source)Made from data in MLIT[2006] ●、■、●、●㌔■ D榔軍c言■’●’●’●’

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怐A■、●、●㌔■ f●’■’●’●’■玉■■」●㌔●㌔■ f●’■’■’●’●㌔●、●、●、● @   ・ @   ■ @   ■ ; : : : D.;...;“、:“.:“ G : : : D.:...:...:..,:.. F : : : D.:...:...:..、r‥ F : : : D.;...:...:“.:., G : : : D.;.“:...:...:.. F : : : D.:.“:⇔.:.〔:.. F : : : ..:,‥:...:...:... F  :  :  : D.:.,,:...:...:... F  : :  :・.,. ..:,..:...:...:.. ’  :  :  : d:...:...:...:.. F  :  :  : d:,..:...:...:., F  :  :  : d:. ”..’ Recycle Fヤ2005  P3rticle board ≠b盾浮煤@420,000粕n    Compost ≠b盾浮煤@400,000ホon Cow吋皿9 WDod 6戸 ≠b盾浮煤@260⑨000 ton ~血81ching“eOd tiPS about 80,000 ton

〔:#im・e掴recyd・

Therrna1 recycle

Fig.2 Recycling of Wood Wastes from Scrapped Houses

  According to MLIT[2005], the recycling of wood wastes from scrapped h皿ses is classified into about O.42 millions ton of particle board, about O.44 millions ton of paper making(paper board), about O.4 millions ton of compost, about O.26 millions ton of covering wood chips, about O.08 millions ton of mulching wood chips, about L20 millions ton of血el use and about O.29 millions ton of other recycling use, as shown in Fig.2. 2.2.Problems in the recycling of wood wastes from scrapped houses   The foilowing tWo problems are listed up for the present recycling of wood wastes scrapped houses as de- scribed bellow.   One problem is a weak competitiveness to cheaper woods imported from overseas. According to MAFF [2008],the share of imported woods reached to 80%and largely exceeded to 20%of domestically produced woods. The recycling woods f㌃om wood wastes f㌃om scrapped houses can not compete to virgin woods, because the price of domestica11y produced woods has a decline trend due to the influence of cheaper im- ported woods from overseas.   The other prol)1em is quality control in separation of wood wastes from scrapped houses. Some parts of wood wastes from scrapped houses move to fUel use(thermal recycle,25%), reduce by simple burning(22%), and landfill(9%)because they cannot enter the process of material recycle due to the insufficient quality control at separation and scrapPing.   In this study, the fUel use ofwood wastes repeatedly generated by scrapping of houses, especially from re一

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duce by simple buming and landfi11 will be discussed from the viewpoint of improvement of recycling ratio. Three methods such as direct buming, gasification and ethanol production are considered as a possible fUel use. In this study, we adopt power generation by direct buming because initial investment of plant is lower than other methods.

3.Simulation on economics of biomass generation using wood wastes

3.1.Outline of simulation (1) PurPose of simulation   On the basis of an awareness of the above-mentioned issues, as a biomass energy(to put it concretely, plant which produces electricity by direct burning of wood wastes from scrapped houses and generated elec- tricity is sold to outside), taking account of the gathering and transportation cost of wood wastes from scrapPed houses in detail. (2)StructUre of Simulation   In the economic simulation of this study, as shown in Fig 3, each item on construction cost and operating cost of biomass generation plant is estimated first of all based on prior researches(NEDO[2005], Biomass Research Center[2006], Mizuho lnformation and Research lnstitute[2007]and Uchiyama, Y[2006D eva一 Expense Estimation ミ、 ミミ  C◎tistrucセ㎞ 蕪  ・。・t

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№≠狽???rPO Wood wastes @gathenng @ revenue Electncity 唐?撃撃奄獅獅〟 @時venue

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Revenue Estimation ⑱

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Fig.3  Structure of Biogas Power Plant Economics Simulation

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         An Analysis on the Economics ofPower Generation Using Wood Wastes from Scrapped Houses in Japan luating the economics of biomass power generation plant.   Second, the special fUtUre of simulation in this study is that the necessary cost required fbr gathering of wood wastes from scrapped houses is estimated by the separate model dealing with dispersed scrapping points and gathering routes in detail, because wood waste from scrapped houses are generated at numerous points in the wide area randomly. Third, we presumed the existence of selling revenue of generated elec- tricity and gathering revenue of wood wastes from scrapped houses, as shown in Fig.3.          The economics of biomass power generation plant is evaluated by obtaining net profit which is calculated from the balance between revenues and costs piled up from the respective items of each sector. In addition, the number of plant operating days is assumed to be 330 days. Each item required fbr the economic simulation will be explained in detail in the following section. 3.2.Detailed checks of each item necessary fOr economic simulation (1)Expense estimation 1)Construction cost          As for the construction cost of biomass power generation plant, we adopted the following equa- tion from Mizuho lnformation and Research lnstitUte[2007]after making a crosscheck with various similar data announced in different reports. Construction cost=107421*{(Size of plant)〈O.6394}*1000 (Equation l)          Fig.4shows the curve of construction cost which changes by depending on the input size of wood wastes. The increment of construction cost is gradually decreased along with increasing of plant size. This result shows that the economics of scale is working on construction cost of power plant.   We adopted a fixed amount method as a dealing way of depreciation and basically assumed the number of year fbr depreciation as l 5 years. But we also made the input structure of simulation model in order that we could set the number ofyears for depreciation optionally. 2)Operating and maintenance cost          The maintenance and repair cost of plant is assumed at 4%of construction cost according to the general way. The operating cost of plant is estimated at 3,500 Yen/ton/day on the basis of data in NEDO [2005]. As for the construction cost of biomass power generation plant, we adopted the following equation from Mizuho lnformation and Research lnstitute[2007]after making a crosscheck with various similar data

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Constl廿ction cost(billions Yen)

Numberofwerkers

(1}neration e伍ciency(%)     0     50    100

(Source)Made from data

(f〕neration e伍ciency→     150     200     250     300     350       1nput size ofwo①d wastes(ton/day) in Mizuho Information and Research[2007] Fig.4  Construction Cost,      size of Wood Wastes 400

450

500

Number of Workers and Generation Eficiency Depending on l叩ut一 a皿ounced in different reports. Number of workers = 2.1307*{(size ofplant)〈0.2207} (Equation 2)          Fig。4also shows the curve of number of workers which changes by depending on the input size of wood wastes. The increment of number of workers is gradually decreased along with increasing of plant size. This result also shows that the economics of scale is working on number of workers in power Plant.   The labor cost of plant is calculated by multiplying the corresponding number of workers by 5 millions Yen/person estimated as an eamed income in the transportation/telecommunication/public utility industry sector based on data in National Tax Agency[2003-2007].   In this simulation model, the ash contents remaining after burning cannot be sold and are assumed to be

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         An Analysis on the Economics of Power Generation Using Wood Wastes from Scrapped Houses in Japan disposed as one of industrial waste. The amount of ash contents is assumed to be 2%of input amount of wood wastes frorn scrapped house according to data in NEDO[2005], and disposing cost of ash contents is estimated 10,000Yen/ton. 3)Gathering cost          The estimation on the gathering cost of wood wastes from scrapped house is a work to which we gave the highest priority in this stUdy, but the detailed explanation of this work will be discussed in the next chapter,‘‘4. Estimation on gathering cost of wood wastes from scrapped houses.”

(2)Revenue Estimation

1)Gathering revenue of wood wastes from scrapped houses          We assumed the acceptance price ofwood wastes as 7,000 Yen/ton based on the actual results on the gathering of industrial wastes, etc. By adding this acceptance price to the average transportation cost 8,829Yen/ton(average estimation by simulation results in this study, we estimated the total gathering price of wood wastes as 15,829 Yen/ton. 2) Selling revenue ofgenerated electricity   First, we estimated the amount of generated electricity using l ton wood wastes and the calorific value of 3,999kcal/kg and the e箭ciency of power generation obtained from the following equation based on the re- sults by Biomass Research Center[2006]. Generation efficiency=O.054*{log(size ofplant)}-O.259 (Equation 3)   Fig.4also shows the curve of generation efficiency which changes by depending on the input size of wood wastes. The increment of generation efficiency is gradually decreased along with increasing ofplant size. This result shows that the improvement of generation efficiency in power plant is one of the factors which can contribute to the economics of scale.          The selling price of generated electricity is set up at 7.8 Yen/kWh as a reference point according to data on weighted average acceptance price of electricity generated from biomass in METI[2007a]. We also referred the electricity charge of 10Yen/kWh, that is, special higher voltage charge to industry and large office sector and that of 14 Yen/kWh, that is, higher voltage charge to ordinary office sector, based on the data in METI[2007b]

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4.Estimation on gathering cost of wood wastes from scrapped houses

4.1.Structure of gathering model          For the sake of effective use of dispersed biomass resources, we need to take account of gathering method of these dispersed resources fYom numerous generating points in the wide area. If the size of bio- mass power generation plant becomes larger and larger, we can reduce the construction cost, etc. more and more because of the scale merit. However, we need to consider the gathering cost of input biomass re- sources required corresponding to the input size of biomass power generation plant.          In this study, we made a separate simulation model for dispersed outlets of wood wastes in order to estimate a gathering cost of wood wastes generated randomly from a certain gathering area. As shown in Fig.5, the simulation model is composed ofthe following components,(i)ring roads spread out in the state of concentric circle centering biomass power generation plant,(ii)circle outlet areas(radius:d)of biomass resources which exist on ring road, and(iii)tr皿k line roads radiating in all direction to connect biomass power generation plant with ring roads.          Using this model, f玉rst, we estimated necessary working time in order to gather necessary biomass resources required from the size of biomass power generation plant. Then, the total gathering cost is cal- culated by multiplying this working time by the unit cost of gathering per hour By this procedure, we can analyze necessary expense for the gathering ofwood wastes under different conditions. 4.2.Distribution of circle outlet areas of wood wastes          In this model simulation, we assumed the following distribution conditions ofcircle outlet area of biomass resources(Case l to Case 3 in Fig.5)on the radius(d)of each circle outlet area and the interval between two a(ljacent ring roads(X). The definition of d and X is also shown in Fig.5.   According to the guideline ofthe Construction recycle law, the gathering region of recycle resources is li- mited to within a 50 km radius from a recycling plant. We also apply this limit to the gathering region of wood wastes from scrapped houses in this study. In Case l(high density case),1801circle outlet areas are located within a 24㎞radius加m a power plant. In Case 2(middle density case),1801circle outlet areas are located within a 48 km radius from a power plant. However, in Case 3(low density case), because of the 50 km radius limit described above, only 469 circle outlet areas are located within the limited range, as shown in Fig.5.

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An Analysis on the Economics of Power Generation Using Wood Wastes from Scrapped Houses in Japan Item value Number of area 1,801 Case 1 iHigh density) Radius ofarea(d)

500m

Ring road interval(X)

lkm

Number of area 1,801 Case 2 iMiddle density) Radius ofarea(d) 1,000m Ring road interval(X)

2km

Number ofarea

469

Case 3 iLow densi y) Radius of area(d) 2,000m Ring road interval(X)

4km

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Fig.5 Structure of Simulation Model for gathering of Food Wastes          In order to check the suitability of this gathering model, we compared the distribution density of scrapping sites in the model with the distril)ution density of houses estimated from available amounts of wood wastes from scrapped houses in respective prefectures. The results are as follows、

Case l    796.6/㎞2  Tokyo Pref.  1,226.4/km2

    Kanagawa Pre£ 849.0/㎞2  0saka Pref   815.1/km2

Case 2    1992/km2  Hyogo Pref.  246.9/㎞2

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  FUkuoka Pref. Case 3   Aomori Pref.

237.7/㎞2

47.8/km2

61.7/km2

Hiroshima Pre£ Kochi Pref. Hokkaido Pref.

175.7/km2

79.7/km2

45.8/km2

  We can easily understand that the region having the same density of wooden h皿ses as the density assumed in Case l to 3 is actUally existing. 4.3.Estimation procedure of total gathering time Wood wastes from scrapped houses discussed in this stUdy are characterized by random generation in the ga- thering range covered. Therefbre, fkst, we assign the circle area where a house scrapping occurs廿om areas l-1801by generatmg㎜dom numbers, as shown in Fig. 6. Second using也e area number assigned, we call data on the area such as gathering time and cost. Th丘d, the above-mentioned procedure is repeated fbr getting necessary woOd wastes from scrapped houses for one month plant operations, also as shown in Fig.6. This is whole procedure fbr one time estimation to detemline total gathering time.

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Fig.6 Estimation Flow of Total Gathering Time by Generating Random Numbers

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An Analysis on the Economics ofPower Generation Using Wood Wastes from Scrapped Houses in Japan   Then, the whole procedure for one time estimation is repeated necessary times(fbr example l OO times)fbr the purpose of analyzing fiuctUations of total gathering time. Then, we obtain(1)Average(AVE):whole average oftotal gathering times,(2)Maximum(Max):average of 20e/o of longer total gathering times and(3) Minimum(Min):average of20%ofshorter total gathering times. 4.4.Estimated results on刊uctuations of total gathering time for Cases仁3   The estimated results on fluctuations of total gathering time obtained by using the above-mentioned model

are shown in Fig.7. Looking at changes in the maximum(MAX)and minimum(MIN)curves, both

curves show a large gap to the average(AVE)curve, ifthe input size ofwood waste is less than 50 ton/day. However, ifmore than 50 ton/day, the gaps among three curves become smaller and stabilized.   In Case 1,the values of total gathering time are 1.88(MAX),1.75(AVE)and 1.62(MIN), respectively, at 5ton/day of input size, and as input size ofwood wastes increases, these three values approach to almost the same one, as shown by the values of l.74(MAX), L73(AVE)and L72(M】N)at 475 ton/day of input size. The average curve of total gathering time in Case l takes values betWeen L73 and 1.75, and are almost con- stant. These results are because the gathering range of wood wastes is fixed to a radius within 24 km and wood wastes from scrapped houses are generated randomly in the inside of this fixed range.   In Case 2, the values of total gathering time,3.68(MAX),344(AVE)and 3.21(MIN)at s ton/day of in- put size have a certain difference from one another, and these three values of 3.49(MAX),3.47(AVE)and 3.44(MIN)at 475 ton/day of input size converge to almost the same one. The value of total gathering time in Case 2 is doubled to that in Case l,because the gathering range of wood wastes is fixed to a radius within 48 km. The gaps between MAX or MIN and AVE with input size less than 50 ton / day in Case 2 become larger those in Case l. This result means the fluctUation of gathering time in Case 2 is larger than that in Case l.   In Case 3, the value of total gathering time are 3.83(MAX),3.57(AVE)and 3.33(MIN)at 5 ton/day of input size, and these three value changes to 3.62(MAX),3.57(AVE)and 351(MIN)at l 20 ton/day, The maximum input size of l 20 ton/day is constrained by the regulation of a radius within 50 km based on the guideline of Construction recycling law. In Case 3, the fluctUation of total gathering time is still somewhat remaining. The gathering time of3.57(AVE)in Case 3 is close to that of 3.47(AVE)in Case 2, because the gathering range fixed to a radius within 48 km in Case 2 is almost the same as that in Case 3 which is legally regulated.

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Gathering time(hour/ton)

5 0

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5 0

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5 0

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5 0 5 0

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3 3 3 3

5 0

22

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50      ..一一.函   ⇒・,一㍉〉、!勺,・ ,●’ (訟thering timロe(heur/ton) 1.90

L85

1.80 1.75 1.70

L65

1.60     0     50 100 150

       .,㌧、,..㌔.’▽・豆}・・…ハ・’・・’∨・・ゾ㌔…’}°’ ,^{’@、・’斑’・㌧  200      250      300      350 input size of wood wastes(ton/day) 400 450 500

AVE

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o 100 Fig.7   150     200     250     300     350     400          inlMt size of-oocl wastes(ton/day) Estimated resuits on fluctuations of total gathering time 450 500 4.5.Estimation of the unit gathering cost per hour          Outlets of wood wastes presumed in this study are scrapping sites of wooden houses. One wooden house is assumed to have total floor space of l OO m2 and generating amount of wood wastes is O.1032ton/m2. WOod wastes are assumed to be generated fbr 5 days in l O days scrapping work period.

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An Analysis on the Economics ofPower Generation Using Wood Wastes from Scrapped Houses in Japan Thus, the generating amount of wood wastes from one scrapping site is estimated to O.656 ton/day by mul- tiplying the present reduction and landfill ratio of O.318.   The vehicle fbr gathering wood wastes is assigned to dumper plus separable container truck having the maximum load capacity of 4 tons. This dumper plus separable container tnlck visits a scrapping site fbr continuous 5 days with running velocity of 30 km/hour and goes back to the biomass power plant.          We can obtain total working time for gathering wood wastes by summing up the following four factors:(a)the running time from the plant to the center of assigned area via the trunk line and ring roads,(b) the round-trip running time between the center of assigned area and the scrapping site,(c)the running time 伽mthe center of assigned area to the plant via the trunk line and ring roads, and(d)the unloading time at the plant. The gathering expense of wood wastes is calculated by multiplying the above-mentioned totaI gathering time by the unit gathering cost per hour.          The unit gathering cost per hour of wood wastes is estimated as 3,900 Yen/hour using the data shown in Sasaki et aL[2006]and Japan Building Material Industry Association[2004]. The average ga- thering cost of wood wastes from areas l-1801 is estimated as 8,829 Yen / ton by multiplying this value by the average gathering time from areas 1-180L

5.Results analyzed by model simulations

5.1Result on the base case simulation          We made a various kind of model simulations in this study in order to analyze economics of bio- mass power generation using wood wastes from scrapped houses. One of the representative results ob- tained from these analyses are shown in Fig.8. This result is obtained under the fbllowing conditions;(a) 15,829Yen/ton gathering price of wood wastes,(b)7.8 Yen/kWh selling price of generating electricity,(c) 70%utilization rate of power generation plant,(d)15years depreciation period and(e)no subsidy to con- StrUCtiOn COSt(initial inVeStment).          Case l to Case 3 shown in Fig.8are corresponding to distribution cases on generating outlet of wood wastes from scrapped houses, respectively, which is discussed in detail in the preceding section,‘‘4, Estimation on gathering cost of wood wastes from scrapped houses.”          We can get the fbllowing implication and consideration from this result. First, we compared the economics of power generation by changing size of gathering area and density of generating points of wood wastes. The results showed that the economics ofpower generation using wood wastes is better in the high density city region(Case l,circle region within 24 km radius centering bio-plant)which has a high den- sity on gathering points of wood wastes from scrapped houses than in the middle density region(Case 2,

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Cost{1,000 Yen/t) 18 ハ6 14 12 10 8

64

2

0 Fig.8       旦竺        Min Case 2:Gathering cost Case l:(lathering cost 一゜^’ bmzat.    ’~ん叫一、. 100       20e       300       400    inputsize ef wnod wastes(tor㎡由y) 500 Ne‘bene康(1,000 Yerl/t} 8 6 4 2 e 一2

4

Net Benefit o

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㏄Min

㏄Min

(Note}㏄:(}athering cost 100       200       3eo       400   1nput size ofWD(”i wnstes(ton/day) Base Case Simulation Resu駈s on the Economics of Biomass Power Generation Plant 500 circle region within 48 km radius centering bio-plant)or the middle density region(Case 3, almost the same circle region as Case 2,50 km is legally regulated)which has a middle or low density on gathering points of wood wastes from scrapped houses, respectively.          Second, because house scrapping by the ending of life-cycle span happen randomly and acciden- tally in the assumed gathering area, the biomass power plant operator need to identify a certain range of ga- thering area such as circle region within 24 km radius, within 48 km radius and within 50 km radius(regu- lated by the law guideline). .          Third, we analyzed the relation betWeen the scale of power generation plant and the scope of ga- thering points of wood wastes from scrapped houses, as shown in Fig.8. In the high density region of ga- thering points(Case 1), the power generation plant dealing more than 80 ton wood wastes per day shows a positive economics. The economics of the plant dealing less than 80 ton become negative because of higher depreciation cost and operation cost(the economics of scale). As the size of bio-plant becomes larger and larger from 80 ton per day, the economics of plant becomes better and better, because the gathering cost is almost constant due to the certain range ofgathering region.   Forth, in the middle density region of gathering points(Case 2), the power generation plant dealing more than 400 ton wood wastes per day shows a positive economics. In the low density region of gathering points(Case 3), the power generation plant can not show a positive economics, because the size of plant is limited to less than I 20 ton wood waste by the legal constraint of gathering area(within 50 km radius).

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An Analysis on the Economics of Power Generation Using Wood Wastes fヤom Scrapped Houses in Japan Net profit difference(Ye【Vton)   1000 800 600 400 200 0 ・200 400 600 一800 一1000 ㌧ 一  Case 1

|v

@Case2

|一一一@ Case3 、 、 9A @~      、 ’ ⇒ Gathering Cost:Minimum→Net pro6t:Ma亘mum @ Net FO6t(Ma対mum)-Ne‘ロ06t(A、erage) .、 @..        ≡       ’ @ . f、A’ @’ G息thering Cost:Ma亘mum→Net pr面t:Minimロm @ Net卿m(Minimom)・Net prom(Awrage)    ’ @ ㊨ @ ’ f : 0        50       100       150       200       250       300       350       400       450       inlMt size ofmi wastes (ton/day}   Fig.9 1nfiuences of fluctuation risk of gathering cost to net profit of biomass power plant 500          Fifth, we can find the fluctUation risk of gathering cost which is occurred by random changes of house scrapPing due to the ending of life-cycle span, as already discussed in the sub-section 4.4 in detail. As the input size of biomass power plant(the input size of wood wastes from scrapped houses)becomes smaller and smaller, the described fluctUation risk expands larger and larger, also as shown in Fig.8. This fluctUation risk also makes a large effect on net benefit of biomass power plant especially in the case of small-size plant(smaller input size of wood wastes from scrapped houses), as shown in Fig.9.   Sixth, in the high density region of gathering points(Case 1), we can get the positive profitability of bio- mass power plant of more than 80 ton per day input-size without special treatments such as govemment sub- sidy, special charge or price and so on. But, in the middle density region(Case 2), we need to consider the special supports f()r lowering the input size of biomass power plant(the input size of wood wastes frorn scrapped houses). As fbr this point, we would like discuss in the next sub-section using the simulation model results in detail, 5.2Simulation results on improvement of profitability by external supports          We analyzed the profitability of biomass power plant using wood wastes from scrapped houses in the preceding section. In the high density region of gathering points(Case l), we can get the positive pro f一

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itability of biomass power plant which has an input size of wood wastes more than 80 ton/day without spe- cial treatments such as govemment subsidy, special charge or price and so on. But, in the middle density region of gathering points(Case 2), the positive profitability of biomass plant is obtained only fbr the input size of wood wastes from scrapped houses more than 400 ton without special treatments. In the low density region of gathering points(Case 3), we can not get the positive results on any scale of biomass power plant without special treatments.          In this section, we made several model simulations related to special extemal supports to Case 2 (the middle density region)in order to observe the improvement of profitability brought by them. These simulation results are shown in Fig.10. The simulations is made for the following four external supports; (a)government subsidy to construction cost(initial investment),(b)increase of plant utilization rate,(c)in- crease of gathering charge of wood wastes f旨om scrapped houses, and(d)increase of purchase price of gen- erated electricity.          As fbr govemment subsidy to construction cost(initial investment), the tuming point on input size of wood wastes where the positive net benefit is obtained moves to 290 ton/day under 30%subsidy,225 ton/day under 50%subsidy and l 70 ton per day皿der 70%subsidy, respectively, from 400 ton/day in the base case, as shown in Fig. l O. As for plant utilization rate, the tUrnilg point moves 355 ton/day fbr 80% utilization rate and 310 ton/day for 90%utilization rate, respectively, from the base case,70%utilization rate.   As for gathering charge of wood wastes from scrapped houses, the tUning point moves to 220 ton/day by 1,000Yen up,165 ton/day by 2,000Yen up and 100 ton/day by 4,000 Yen up, respectively, from the base case,15,829 Yen of gathering charge. As fbr purchase price of generated electricity, the tuming point moves to 190 ton/day by 1.5 Yen/kWh up,130 ton/day by 3.0 Yen/kWh up and 95 ton/day by 4.5 Yen / kWh up, respectively, from the base case,7.8 Yen/kWh of purchase price ofgenerated electricity、

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        An Analysis on the Economics of Power Generation Using Wood Wastes from Scrapped Houses in Japan Net benefit“,000 Yen/ton)       Net benefit《1,000 Yen/ton)  6       6 4 2 0 ・2

4

ttt-一・一””「    O       lOO      200      300      400          1nput size ofwood w8stes(ton/day) Ne‘benefit(1,000 Yen/ton) 6 Base ・30% 50% 70% 4 2 0 一2

4

Operation rate ehange 500        0        100       20e       300       400       1nput size ofwood wastes(ton/day)     Netbenefit(1,000 Yen/ton) 4 2 0 .2

4

6 500 Gatering  ITice support

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ノ ノ ’ ’   ’  ’ o        Base        ・・・・… 十1,000ye皿 4 2 0 .2

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・刊.5Ye[ilkWh +3.OYenlkWh +4.SYen/kWh   100       200      300      400       500      0       100      200      300      400  1叩ut size ofwood wastes〔ton/day)       1叩ut size ofwood wastes(to【㎡day) Fig,10 1mprovement of Pro而tability by External Supports in Case 2(the large city area) 500   Larger improvement effects on the economics of biomass power plant using wood wastes from scrapped houses in the middle density region(Case 2)are obtained by support fbr gathering charge or purchase price of generated electricity, as compared with government subsidy to construction cost or change in plant utiliza- tion rate, as shown in Fig.10. Anyway, the drastic improvement of plant economics in Case 2 can be ob- tained by modest external supports.   Actually speaking, as for the middle density region of gathering outlets(Case 2), we can conclude that the

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combination of supports such as 30%govemment subsidy to construction cost(to initial fixed cost), increase of gathering charge,1,000 Yen/ton up and increase of purchase price of generated electricity,1.5 Yen/kWh up would be suitable and reasonable for the improvement of the profitability on biomass power plant using wood waste from scrapped houses.   But as for the low density region of gathering outlets(Case 3), we cannot find any suitable and reasonable support methods to improve profitability, because of too low density of gathering outlets for wood wastes and gathering range constraint based on the guideline of the Construction recycling law.

6.Concluding Remarks

  The conclusions of this paper are as follows. First, Japan needs to establish the effective recycling me- thods fbr wood wastes from scrapped houses. Thus, the power generation is an important and effective option for disposing of wood wastes scrapped houses as the potential pass in Japan.   Second, especially in the middle density region(Case 2), the large size of power plant such as more than 400 ton per day is required for the positive economics, and therefore we need to expect a govemmental sub- sidy to biogas generation plant, or a special dealing on the gathering charge ofwood wastes or selling price of electricity. We also need to consider the balance between the scale of plant and the secure procurement of input wood wastes.   Third, Japan also needs to consider the elimination of several baπiers and problems in order to improve the economics of power generation using wood wastes from scrapped houses and to expand the effective use of wood wastes.  (References) Agency of Resources and Energy[2007a], ’‘Survey on trading prices皿der the RPS law in 2006,”2007. Agency ofR.esources and Energy[2007b],‘‘Survey on electricity demand from the first quarter of fiscal 2004 through third   quarter of fiscal 2007,”2007 Biomass Research Center [2006], ‘‘Open to the public of simplified biomass economics simulator,”   ht:〃unit.aist. o.i/btrc/ci/simulation/s stemteam ai ou.html National Institute of Advanced Industrial Science and   Technology,2006. Japan Building Material Industry Association[2004],“Promotion measures for recycling of building construction wastcs   generated from new house building sites,”2004 MAFF[2007],“Actual and prospect data on supply-demand of wood,”Ministry of Agriculture, Forestly, and Fisheries,   2007. MAFF[20081,“lnside material made by the Environment Biomass Section,”Ministry of AgricultUre, Forestry, and Fishe-   ries,2008.

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An Analysis on the Economics ofPower Generation Using Wood Wastes from Scrapped Houses in Japan Mizuho lnformation and Research lnstitUte[2007],“Survey report on database construction to support the introduction of   biomass energy,”2007. MLIT[2006],“Actual survey on by-products related to building construction,” Ministry of Land, Infrastructure, Transport   and Tourism, December 2006. National Tax Agency[2003-2007],“Survey on earned income in the private sectors,”published every year, NEDO[2005],“Guidebook fbr the introduction ofbiomass energy, the second edition,”2005. Ogawa, Y and H. Nakajima[2008],‘‘An analysis on the economics of power generation using fbod wastes in Japan,”the   online proceedings of the 3 1 st IAEE lnternational Conference, Istanbul, June,2008. Sasaki, S., O.][、dano, T. Higashino, H. Fukazawa and K. Ogasawara[2006],‘‘Trial calculation of wood chip supply cost   f()r fUel,”Research report No.14, Iwate Prefecture Forestry Technology Center,2006 Uchiyama, Y[2006],“Energy engineering and society,”the Society for the Promotion of the University ofthe Air,2006,

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