Prospects of deployment of Jatropha biodiesel-fired plants in Nigeria's power sector

This paper presents the techno-economic performance analysis of Jatropha biodiesel-fired power plants in comparison with natural gas- and diesel-fired plants. Jatropha biodiesel can be substituted for natural gas in industrial gas turbines at a slight loss in power output of ∼2% and plant efficiency of ∼1%. The exclusive use of the fuel in heavy duty industrial gas turbines is not economically viable at existing electricity generation prices in Nigeria, except fuels are restricted to combined cycle engines and considered as biomass power plants. The Levelized Cost of Electricity (LCOE) of the Jatropha biodiesel-fired plants varied from $0.203–0.252/kWh, values that are below the cost of self-generated electricity (SGE) in Nigeria —$0.45–0.70/kWh. To integrate Jatropha biodiesel into existing power plants, a minimum production-based incentive (PBI) of $0.052–0.082/kWh can be provided for up to nine years or maximum partial fuel substitution (PFS) of 33–40% can be mandated, depending on the mode of operation. A guaranteed fuel price of $0.18–5/gallon can be ensured, depending on electricity contract price. A carbon tax up to $100/tCO₂ can also be imposed on natural gas-fired plants, but this does not ensure economic viability. The high cost of SGE in Nigeria uncovers an opportunity for embedded power generation.