Small-scale coal gasification technology, coupled to a reciprocating engine generator, has the potential for making coal a cost competitive resource for meeting the flexible energy needs and resiliency requirements of utilities across the United States. To maintain grid stability and reliability, electrical generation must be regulated to match the load at the proper voltage and frequency. With the expansion of intermittent sources into the grid, such as wind and solar, frequency and voltage regulation become increasingly important and challenging.

This work presents the results of a Front End Engineering Design (FEED) effort to detail the engineering and preliminary economics of a small-scale, air blown, fixed-bed gasification process, operating at near-atmospheric pressure, with gas cleanup to provide syngas and pyrolysis liquid fuels for use in reciprocating engine generators for combined heat and power at the University of Alaska Fairbanks.

A very detailed assessment of capital and operating costs allows the evaluation of a levelized cost of electricity of 208.06 $/MWh, which can be reduced through the selling of by-products (steam for heating purposes and pyrolysis liquids to be used for power generation in an existing diesel engine). A combined sensitivity analysis, based on the Monte Carlo approach, has been carried out to evaluate the effects of the uncertainties (capital and operating costs and plant annual availability) on the LCOE.