Biomass pellet heating systems typically have a capacity ranging from 5 kW (low-energy single-family dwelling) to 100 kW (apartment building) and are used for heat only (not CHP). The data in the overview below are based on German systems and exclude VAT. Note, that small systems have a low number of full load hours since there is no backup available that has a capacity large enough to cover the full peak demand, as is usually the case for larger systems.
Table A4 • Cost parameters for biomass pellet heating in 2005 (excluding VAT) with projections out to 2030*
Fuel costs are a dominant factor in the total heating cost along with system investment costs. Increasing lifetime and fuel efficiency could yield a 4% to 6% cost reduction in the year 2030 (a decrease from €26 /GJ to €25 /GJ (range €7 to 95 /GJ) assuming constant fuel prices.
Combusting wood chips for district heating is applied on a wider scale than are pellet burners. It can have higher investment costs but lower fuel prices. No separate cost overview is presented.
The data overview was compiled by IEA Bioenergy Task32 (Biomass Combustion and Co-firing) (Koppejan, 2007) using Hansen (2006) and Hartmann (2003) as sources.