Electrification of the industry

Transcription

1 Electrification of the Chemical Industry Electrification of the industry Applications & challenges Yvonne van Delft Amsterdam, 4 October 2017 Powered by:

2 Enormous increase in electricity from renewables (wind and solar) Local production of fluctuating electricity leads to inbalance Production last year MWh

3 Increased global competition. Weak position on feedstock and energy. Operational costs are high. Geographical shifts in demand. From: De Chemie in Nederland, Een voorwaardelijke toekomst, Rabobank,

4 Chemicals solutions Energy solutions Flexible supply Demand response Interconnection Energy Storage & conversion Specialties Commodities Refineries

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6 Electrification of the Chemical Industry Powered by:

7 10% 14% 10% Share of 3167 PJ = 880 TWh final use 5% 1% Chemistry 27% 5% 10% 16% 2% Refineries Industry other Oil and gas Transport Housholds Electricity production Services Agriculture Waste and water 103 Energy use NL 37 Total Industry 44% compare: 25% EU Energy use NL in GW continuous 21 57% 1200 PJ 325 TWh Feedstock 16 43% 505 PJ 140 TWh Energetic 3,4 9% 107 PJ 30 TWh Electricity Year Source GW eq cont GW installed 2013 Total electricity generated renewable electricity Total electricity generated renewable electricity (53%) intermittent solar/wind (87%) TWh = 44 PJ (1.4%) 65 TWh = 236 PJ (~7%) Source: Nationale Energieverkenning,

8 TWh Elektricity production & consumption Solar and Wind Source: Nationale energieverkenning

9 # quarters of an hour Example from Germany E-prijs onbalansmarkt E-price unbalance in quarters of an hour per /MWh in 2015 E-price [ /MWh] Price duration curve

10 Electrification of the Chemical Industry Powered by:

11 Value as heat (short-term) Electricity replaces conventional heating using mostly natural gas. Value of flexibility Value of electricity Value as intermediates (mid-term) Electricity is used to make intermediates (e.g. Hydrogen, Methanol, NH 3 ). Price duration curve 2030 Product value (long-term) Electricity used directly to make end products (chemicals and fuels)

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13 Flexibility Response time - short Operating hours relatively low Allowable investment costs low Technologies at high TRL Electrification Response time less an issue Operating hours high (base load) Allowable investment costs higher Technologies at mid/low TRL - Short-term option - Power-2-Heat - Power-2-Hydrogen - Mid/Long-term option - Power-2-Heat - Power-2-Hydrogen - Power-2-Commodities

14 Flexibility Direct electrical heating Heat/cold storage Multifunctional/reversible equipment Up to 60 MW in 1 unit Electrification (Direct electrical heating) Mechanical vapour recompression Electrical heat pumps

15 Power-to-liquids (Sunfire) Power-2-Gas (Hydrogenics) Power-to-Methanol (Bayer) Efficient Chlorine electrolysis (Wacker)

16 Electrification of the Chemical Industry Powered by:

17 Assumptions: Current heat consumption in chemical industry 243 PJ (43% > 200 C). Full implementation of Heat Pumps & residual steam upgrading by Mechanical Vapour recompression in industry. Giving 50% savings for high temperature steam. Result: 15-20% energy savings. 2 TWh / year electricity consumption. 6 Mt / year CO2 reduction. 1 GW peak electricity use. 4% of renewable capacity in

18 Assumptions: Current hydrogen consumption in Netherlands 63 PJ (requiring 81 PJ of natural gas as feedstock). Full replacement of SMR by electrolyzers. Result: 4.1 Mt / year CO2 reduction. 26 TWh / year electricity consumption. 6 GW electricity use at 50% load. 20% renewable capacity in

19 Full electrification needs 250 TWh / year Full electrification decreases CO 2 22 Mt / year CO2 as feedstock with 3 tco 2 / tolefins 23 Mt/year CO2 use

20 Source: FD, Source: FD, : 0.9 GW = 4 TWh 2023: 4.5 GW = 18 TWh 2050: 250 GW = 1000 TWh

21 The future is unpredictible but industry will play an important role The (chemical) industry uses 44% of all energy in The Netherlands Future determined by step-changes in technology development, by the societal and market conditions and by regulations Keep options open and invest at the right time with the right business driver. Short-term electrification potential in flexibility Business cases driven by flexibility & incentives Power-2-Heat & Power-2-Hydrogen Upward potential: 10 Mt/year CO 2 reduction. 28 TWh/year electricity use. Long-term electrification potential in products Businesscases driven by product value & CO 2 regulations. Power-2-Commodities. Upward potential: 45 Mt/year CO 2 reduction. 250 TWh/year electricity use

22 Yvonne van Delft Innovation Manager Martijn de Graaff Business development Robert de Kler Community Manager