Heat and ETI. Bryan Silletti January 22, 2008

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1 Heat and ETI Bryan Silletti January 22, 2008

2 Agenda Brief Introduction to the ETI Heat Demand Heat Supply Summary 2

3 Energy Technologies Institute Bringing together the complementary capabilities of global industrial groups in a unique approach with government Addressing the challenges of climate change and low carbon energy ETI Programme Associates Demonstrating technologies and systems Energy usage, efficiency, supply and generation Developing knowledge, skills and supply-chains Informing development of regulation, standards and policy Enabling deployment of affordable, secure, low carbon energy systems Public Sector ETI Project Partners 3

4 Wind Offshore specific systems Marine Tidal stream and wave ETI programmes focus: Key Energy Challenges Distributed Energy (DE) and energy use in Buildings Heat, power, demand side management, efficiency Carbon capture, handling and storage (CCS) Storage, capture, monitoring and verification Energy Networks Infrastructure, management, operation Storage technologies Transport Electric mobility, vehicle efficiency Systems modelling Low CO 2 Energy Security Affordable Energy Skills Technology Capacity 4

5 Heat Demand

6 The Importance of Heat Heat for the UK Represents over 39% of the UK CO 2 emissions and 70 Mtoe of annual consumption 1Mtoe ~ heating 0.8 Million homes in one year* 160 CO2 Emissions from UK Energy End-User Consumption UK Energy Consumption for Heat in 2006 Excludes energy industries, energy transformation industries and blast furnaces mtco Electricity Natural Gas Oil Solid Fuel Energy consumption for heat Mtoe Electricity 10 Natural Gas 49 Oil 8 Solid Fuel 2 Total 70 0 Residential Service Manufacturing Transport CO2 emissions from heating (mtco2) Non-heat CO2 emissions (mtco2) 6*Office for National Statistics and Carbon Trust Energy and Carbon Conversions "Energy Consumption in the UK", BERR, July 2008 "Digest of United Kingdom Energy Statistics 2007", BERR "Updated Energy and Carbon Emissions Projections", Nov 2008, DECC Table 4.3.

7 Heat consumption by sector and use UK Energy Consumption Residential space heating and hot water account for a significant amount of heat demand The Heat and Electricity market is currently decoupled Led to inefficiencies in the generation, distribution, and use of heat and power All in Mtoe Space heating Water heating Low temp process High temp process Cooling / Ventilation Residential N/A Service Manufacturing 6 N/A 8 5 N/A Is there scope for system optimisation minimising exergy loss and heat discarded to the environment? Transport: Electricity Production: 42 Mtoe 50 Mtoe 7 "Energy Consumption in the UK", BERR, July 2008 "Digest of United Kingdom Energy Statistics 2007", BERR "Updated Energy and Carbon Emissions Projections", Nov 2008, DECC Table 4.3.

8 Prospect for domestic heat load Space Heating and Cooling is about comfort How do we meet comfort needs more efficiently? 70% of the 2050 housing stock is already built now Current policy and technology for homes. Decarbonise supply? The needs of retrofit systems for additional reduction. 8

9 Heat Demand Management Near Term: Use heat more effectively Mitigate losses in existing commercial and domestic buildings Insulation, integrated controls, building management Ensure new builds use Best Available Technology Industrial heat recovery for mid and low temperature heating markets Long Term: Residential and commercial space heating and hot water reduction System level optimisation to manage supply and demand New technology integration Cost-effective retrofit technologies for demand reduction for balance with a decarbonised heat supply 9

10 Heat Supply

11 Heat Supply De-Carbonisation Options Heat Production Options Using surplus heat from power and other industries Local heat and power supply (micro and macro CHP) Renewable heat: Solar thermal, Biomass, Waste to Energy, etc. De-carbonised electricity supply Enabling Technologies Heat Networks Heat pumps Heat Storage 11

12 *UK Consumption as per Energy Flow Chart 2007 (BERR-Dept of Business Enterprise & Regulatory Reform ) Recover heat from Industrial Systems Potential Saving Consumption* & saving in million tonnes of oil equivalent Diverse Supply Electricity Heat forward (hot water) Return(cold water) Mtoe Natural Gas Oil Coal UK total wasted heat production * Power Stations Approximate technical potential estimated for a generic multistage steam turbine power station. Detailed and site level analysis has not been performed Refineries Available for use as low temperature heat source with a viable heat sink from o C Other Industry (> 20MW) Technical heat recovery potential at temperatures up to 1500 C with commercial technology 20 (16 Million Homes) 2 (1.6 Million Homes) 1 2 ( Million Homes) 12 12

13 Copenhagen Case Study DH Distributed heat networks Powerplant and distributed CHP (30% reduction in CO2) Developed a diverse fuel supply for security Significant use of biomass and waste CHP Renewable firming 50% reduction in CO 2 intensity since * Danish Energy Authority

14 14 UK Heat Network

15 Heat Storage Allow for efficient use of energy Temporal match management Enabling Technologies Key needs: Range, Storage Capacity, time Heat Pumps Use small amount of high level energy to upgrade low level heat Use low level heat to drive heat pumps for cooling Generally applicable for relatively small scale equipment Low Temperature Heat utilization Increases system efficiency using lower temperature distribution Other Solar thermal Fuel cell Micro CHP Heat exchangers MVR (mechanical vapour recompression) 15

16 System Benefits of CHP and Heat Networks To meet 800MW of electrical demand and 200MW heat demand in each case. Losses in DH ignored. Emissions (t CO 2 /hour) Current Grid System - heat from condensing gasfired 776 boiler as above plus district heating off-take from the power station 756 With CCS on all generating plants 147 as above plus district heating off-take from the power station 96 Short Term CHP & Local heat networks to initiate decarbonisation Long Term Integrated centralized heat and power networks with CCS 16

17 Summary

18 The Vision of Heat Heat Contribution to CO 2 Demand Management Affordable Comfort Low Carbon System Secure Supply Biomass and W aste To Energy Distributed Heat and Power Networks Low Carbon Electric Heating Centrally-supplied Heat network Heat Storage Heat Pumps Solar Thermal and Micro generation Low Carbon Supply Technology Development 80% Reduction in CO 2 Industrial Heat Recovery for local heat supply Timeline

19 Conclusions Issues that need to be addressed to meet the Carbon Emission Reduction standards of 80% reduction: Actively reduce heat demand through affordable building technologies Efficiently deliver and use of space heating and hot water Meet consumer comfort more effectively and efficiently Low carbon new build and retrofit has a critical role to play Efficiently use our resources Potentially 30% of total demand can be met with Industrial and Power wasted heat Proactively develop a diverse mix of supply solutions including, Waste as a renewable source of heat, Solar Thermal, heat storage, heat pumps, etc How do we achieve a deep integration of de-carbonised supply and demand reduction for Low carbon heating? That s why we re here. 19