Energy from sawmill waste in Honduras : Teupasenti case study

This follow-up study assesses the economic viability of six alternative wastewood energy system configurations for a representative small sawmill, Maderas de Oriente, located in Teupasenti, El Paraiso Department. Of the six systems, three are designed for electricity production only during peak demand hours and three are designed for continuous electricity generation with output maximized during peak hours. Four of the configurations include steam-heated lumber drying techniques, with two different kiln designs considered. All of the systems utilize all of the wastewood produced by the sawmill. Unfortunately, the study concludes that none of the six small systems would satisfy the acceptable investment criteria of a 10% minimum real return on total investment annually. At higher prices, which may prevail in the future as avoided costs increase or as national policy intervenes to promote wastewood cogeneration, the systems could become economically viable. At present, however, investments in larger systems, which operate year round and at higher capacities, appear more economically sound.