Declining Direct-Fired System Viability and Obsolescence

Definition

Approximately 50% of US biomass capacity uses direct-fired systems (biomass burned in boiler → steam → turbine → electricity). These systems are experiencing documented decline. The industry reports 'Direct-fired biomass power plants are declining because of reduced wood and wood waste burning. Rising liquid biofuel production and high operating costs are driving this dec...' This creates two problems for plant managers: (1) legacy plants with direct-fired systems face technological obsolescence without clear upgrade path, (2) equipment manufacturers are reducing investment in this technology, making spare parts, service, and upgrades scarce. Direct-fired systems have inherent inefficiency (30-40% electrical efficiency vs. 50%+ for modern combined cycle) and higher maintenance (boiler fouling, ash handling, erosion). Managers of aging direct-fired plants must choose between expensive retrofits to advanced systems (gasification) or accepting declining competitiveness. The absence of clear technology migration path creates stranded asset risk.

Why This Matters

Technology assessment and retrofit consulting, equipment modernization financing, conversion to advanced combustion/gasification systems, alternative biomass utilization (biogas, pyrolysis), plant decommissioning/asset sale advisory

Affected Stakeholders

Plant Manager/General Manager, Operations & Maintenance Manager

Related Business Risks