CBP seminar - Session 3 -Oportunities and barriers -Current trade -Co-firing Danish case

Transcription

1 CBP seminar - Session 3 -Oportunities and barriers -Current trade -Co-firing Danish case JONAS DAHL Danish Technological Institute CBP Kuala Lumpur, Malaysia

2 OPPORTUNITIES AND BARRIERS FOR MALAYSIAN BM TO EUROPE

3 Opportunities biomass Europe - Drivers the target Miising figure

4 Source:

5 Opportunity - Co-firing Biomass co-firing in modern, largescale coal power plants is efficient, costeffective and requires moderate additional investment. In general, combustion efficiency of biomass can be 10 percentage points lower than for coal at the same installation, but co-firing efficiency in large-scale coal plants (35%-45%) is higher than the efficiency of biomass-dedicated plants. In the case of cocombustion of up to 5%-10% of biomass (in energy terms) only minor changes in the handling equipment are needed and the boiler is not noticeably derated. For biomass exceeding 10% or if biomass and coal are burned separately, then changes in mills, burners and dryers are needed. In addition, coal ashes that are used to produce construction materials should not be contaminated with tar and alkali metals-rich ash from biomass.

6 Oportunity Potential for Co-firing NW Europe Assumption: 5% co-firing in existing coal power plants => 33 mil ton wood pellets / year needed (present global production is 10 mil) Source: Schouwenberg, 2010

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8 Source: Junginger,

9 Utilities using or planning to use biopellets for co-firing in Europe n GDFSUEZ (Belgium) n n RWE EON (Germany) (Germany, UK) n n n n FORTUM (Sweden) DRAX (UK) VATTENFALL (Sweden, Denmark, Netherlands) DONG (Denmark)

10 European Pellet utlization versus production (2008) Source:

11 European pellet utilization versus production (2008) Total imports EU 2009 ~ 3.4 million tonnes; about half intra-eu trade. Total export ~ 2.7 million tonnes, predominantly intra EU trade. Import from outside EU will grow in the future!!!! Source: Junginger,

12 Pellets utilisation in Europe

13 Source: Junginger, 2011

14 Potential Barriers

15 Opportunities export to Europe n Hugh demand in Europe for biomass => Solid biomass the most likely for reaching RE goals n n A large part of this Biomass will have to imported from outside EU Large part by cofiring in power plants Potential Barriers for malaysian biomass (EFB, Rice Husk, PKS n n n n Most EU utlilty co-firing utilisations are based on wood pellets Any biomas with ash-content above 3 % will need case by case attention no standards covering these types of fuels Political aspects of using palmoil residues. Other markets?

16 Biofuel Pelleting. Current and Future new perspectives worldwide Current Biofuel pelleting regions Potential regions Current main Biofuel pellets markets Source: Pandrup Christensen, Andritz-sprouit Matador, 2010

17 Pelletprices payed by large power producers (CIF) Price index: FOEX (scandi) ENDEX (ARA) ARGUS (NWE) Source: Junginger,

18 Wood pellet prices FOB in North American Harbours Source :

19 Enduser prices (~17,5 GJ/ton) ~250 /ton ~150 /ton Source: Winterbäck,

20 General conclusions wood pellet markets

21 Enduser prices Europe Source: Winterbäck,

22 Enduser prices Europe Source: Winterbäck,

23 Oportunities- according to C.F. Nielsen (Danish Briquettingmachine manufacture) Conclusions on Indonesian market according to CF Nielsen. Should focus on local market use Eksport to Europa is very difficult due to logitics prices and the Europena market will only by wood based briquettes No power plants are interrested unless price is much lower than other biomass

24 Investment in Briquetting machinery (C.F. Nielsen) For consumer briquettes Investment: Capacity: kg /h. Direct costs such as electricty, spare parts, service and maintenance ( ~ 15 EUR per ton) For industrial briquettes Investment: og Capacity: 500 kg kg /h. Direct costs such as electricty, spare parts, service and maintenance ( ~ 10 EUR per ton) Includes briquettingmachinery and silo for raw material. Does not include shipping or milling and not drying. (these could be expensive) CF Nielsen has currently 3 mashines in operation in Malaysia (se photo)

25 C.F Nielsen machinery in Malaysia

26 C.F Nielsen machinery in Malaysia

27 C.F Nielsen machinery in Malaysia

28 CO-FIRING PELLETS IN DENMARK

29 Co-firing Three state of the art systems: Direct Co firing systems, combustion of both fuels takes place within the same boiler, thus mixing coal and biomass ashes. Parallel system, biomass and coal are burned in separate boilers with physically independent feeding and ash removal systems. Indirect system, fossil fuel is burned with previously gasified biomass and, hence, coal and biomass ashes are also removed in different parts of the processes. Ash removal is one the most important constraints for increasing the share of biomass in Co firing systems. Ash melting temperatures of many biomass sources are normally lower than coal due to their high alkali metal, calcium or iron content. This feature may cause several problems such as slagging and fouling in the burners, furnace walls or superheaters. Other problems that may arise are related to the different grindability of biomass and coal, or the diverse combustion behavior of both fuels. Direct Co firing is by far the most implemented configuration in European coal fired power plants, accounting (more than 150 plants with total electrical and thermal capacities of 35 GWel and 22 GWth). In Direct systems, the maximum share of biomass in the fuel blend is less than 5 10 wt% (3 6% on energy basis). Higher ratios would imply boilers modification with the inherent increase in capital investment.

30 Danish Energy The government s long-term vision is that Denmark will become independent of fossil fuels by 2050 while reducing greenhouse gases by 80 95% compared to This will require a total conversion of the Danish energy system, away from oil, coal, and gas, which today account for more than 80% of energy consumption, to green energy, with wind turbines and bioenergy as the most important elements. The European Union presently has a goal of reducing GHG emissions by 20% by 2020 from the 1990 level. Denmark is urging the EU to adopt an even stricter goal of 30% Danish coal power plants are already remarkably efficient. Any coal plant makes just two things: electricity and heat. Most coal plants use only the electricity, sending the heat up the chimney as waste. Thus, most coal power plants are only about 30% fuel efficient. In Danish power plants, both electricity and heat are used (known as combined heat and power, CHP). The heat is captured and used to heat hot water, which is pumped through a vast network of super-insulated pipes to heat homes throughout the country (called district heating). Denmark s best power plants are more than 90% fuel efficient. Today, more than 70% of Denmark s homes are heated by district heating.

31 Pellets - Combined Heat and Power in Denmark n Avedøre II CHP (DONG) Combusted t wood pellets in 2008 Allowence for up to t in 2009 n Amager CHP (Vattenfall) Combusted t straw pellets t wood pellets Refurbished plant 2009 aims at: t straw pellets t wood pellets n Herning CHP (DONG) - after Capacity of t wood pellets/year

32 Danish consumption of wood pellets ,5 mil tonnes Source: Danish Energy Authority, + Own estimations for 2008

33 Avedøre Power Station

34 Danish Power plant Avedøre Dong Energy s Avedøre Power Station near Copenhagen, which provides electricity for 1.3 million homes in northern Europe and district heating for 200,000 homes in Greater Copenhagen. Total electricity production is 825 MW and heat production is 575 MJ (megajoules). The facility has two units. Unit 1 is coal- and oil-fired. Unit 2 uses several types of fuel, including natural gas, oil, and biofuels (straw and wood pellets). It is one of the world s most efficient CHP facilities, using up to 94% of the energy in the fuel. The two 55-MW gas turbines operate as peak load facilities when electricity and heat demand are high. The plant consumes 600,000 tonnes/year of wood pellets. Denmark presently imports 85% of its annual wood pellet consumption. This figure will increase as the country implements it coal reduction plans.

35 Avedøre Power Station generation/primary%20power%20stations/pages/avedore%20power%20station. aspx

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46 Amager Power Station Amager Power Station (Vattenfall) near Copenhagen, which has a total electricity capacity of 438 MW and thermal power capacity of 747 MW, which corresponds to the heating required by about 115,000 households. It has three units. The station burns about 700,000 tonnes/year of coal. Oil is used only for start-up, and consumption is slightly more than 3,000 tonnes/year. The station also burns about 150,000 tonnes/year of biomass in the form of straw pellets.

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50 Properties of straw pellets compared to EFB??