Biomass CHP a sustainable solution for Jelgava heat supply

Transcription

1 Biomass CHP a sustainable solution for Jelgava heat supply Ginta Cimdiņa Chairperson of the Board, Fortum Jelgava Innovative Sustainable Energy Solutions for Smart Cities and Communities Riga, October 18, 2013

2 What is Fortum? Nr 3 Nr 1 Nr 1 Nr 2 Power generation Heat Distribution Electricity sales Great Britain Power generation 1.1 TWh Heat sales 1.8 TWh Nordic countries Power generation Heat sales 51.6 TWh 14.5 TWh Distribution customers 1.6 million Electricity customers 1.2 million Russia Key figures 2012 Sales EUR 6.2 bn Operating profit EUR 1.9 bn Balance sheet EUR 25 bn Personnel 10,400 OAO Fortum Power generation 19.2 TWh Heat sales 26.4 TWh TGC-1 (~25%) Power generation Heat sales ~7 TWh ~8 TWh Poland Power generation 0.8 TWh Heat sales 4.3 TWh Baltic countries Power generation Heat sales 0.4 TWh 0.9 TWh 2

3 Fortum is the world s 4th largest heat producer with operations in 8 countries Listed at the Helsinki Stock Exchange since 1998 Over 90,000 shareholders CHP/condensing production in over 30 plants Small scale heat production in over 700 heat-only boilers Operations in over 200 district heating networks located in 80 cities Industrial heat and steam supply for over 250 industrial customers Management model under two divisions Heat: Sweden, Finland, Norway, Poland and Baltic countries Russia: OAO Fortum (former TGC-10) and ~25% in TGC-1 Households 7.1% Other Finnish investors 8.9% Financial and insurance institutions 2.7% Foreign investors 30.5% The Finnish state 50.8% 3 3

4 Heat Market in Latvia / Top 9 cities Territorial unit Heat production (GWh) Market share LATVIA Rīga % Daugavpils 467 7% Jelgava 213 3% Jēkabpils 89 1% Jūrmala 164 2% Liepāja 288 4% Rēzekne 163 2% Valmiera 106 2% 467 Ventspils 217 3% Source: CSB 4

5 Next generation energy company: mission and strategy Mission Fortum s purpose is to create energy that improves life for present and future generations. We provide sustainable solutions to the society and deliver excellent value to our shareholders Strategy Build on the strong Nordic core Create solid earnings growth in Russia Build platform for future growth Competence in CO 2 -free hydro and nuclear, efficient CHP production and energy markets 5

6 Fortum Jelgava Shareholders: 100% owned by Finnish energy corporation Fortum DH operator in Jelgava since 2008 Concession of DH assets for 30 years from the city of Jelgava In 2012: Heat sales: 200 GWh Heat losses: 15.6% Length of network: 72.4 km Heat customers: 388 contracts residential customers: 78% business customers: 22% Electricity produced per annum: from natural gas 33 GW from biomass 110 GW Employees 93

7 Jelgava district heating system in Kalnciema 2.5MW Instituta 0.9MW Aviacijas 28MW Ganību I 113MW Ganību II 4,6 MWth/3,9 MWel Skautu 0.3MW Filozofu 0.8MW Neretas 1MW Rupniecibas 53MW 7 7

8 Investments in Jelgava DH system in Boiler palnt at Aviācijas iela Installed capacity: 28MW In operation since 2008 Fuel natural gas 3 HOBs CHP plant at Ganību iela Installed capacity : 4,6 MWth/3,9 MWel In operation since 2009 Fuel natural gas 4 gas engines DH network 9 km constructed Total investments 12,3 MEUR 8

9 What has changed since 2005? The price of natural gas has increased by 300% Excise tax for natural gas that is used as fuel has been implemented Electricity price has increased 2 times VAT for heat energy for residential consumers has been implemented

10 jan.05 jūl.05 jan.06 jūl.06 jan.07 jūl.07 jan.08 jūl.08 jan.09 jūl.09 jan.10 jūl.10 jan.11 jūl.11 jan.12 jūl.12 Gas and biomass price development During the time period from January 2005 till July Importētās Krievijas gāzes cenu procentuālās svārstības (%) * +300 % 250 Latvijas koksnes enerģētiskās šķeldas cenu procentuālās svārstības (%) % Gāzes cenu tendence Šķeldas cenu tendence +85 % * Source: Latvijas gāze (tariffs for industrial customers the largest group)

11 Heat energy tarrifs in Jelgava , ,51 43, ,

12 Jelgava biomass CHP Plant Jelgava biomass CHP plant will provide up to 85% percent of Jelgava district heating load Installed capacity - 23MW for electricity and - 45MW for heat. The plant will generate 230 GWh of heat and 110 GWh of electricity per year Fuel biomass (woodchips) Total investment in Jelgava CHP plant 70 million Euros in plant and associated infrastructure constructions, added 6 million Euros have been allocated from the EU funds Commissioned September 2013

13 Site at Rūpniecības iela, Jelgava, in

14 Fortum biomass CHP in Jelgava, June

15 Fortum biomass CHP in Jelgava, June

16 Jelgava DH system and heat sources from autumn 2013 Kalnciema 2.5 MW Ganību HOB 110 MW Vapor 8 MW Ganību CHP 4.6 MWth/4 MWel Skautu 0.3 MW Aviācijas 28 MW Neretas 1MW Rūpniecības HOB 23 MW Rūpniecības BIO CHP 45 MWth/23 MWel 16

17 The first interconnection of DH systems in Latvia under the river Aim of the project to connect the right bank and the left bank district heating systems in order to provide district heating from the new biomass CHP plant Total length 1408 m, from which 380 m are under the river Construction finalized in Q4, 2012 Total costs around 2 million Euro

18 Existing production and new heat supply after Bio CHP start-up MW MW Existing New Gas boilers Gas CHP > 4MW Gas boilers (only for peak hours) Bio CHP 23MW ( working hours ~ 5200 h) Gas CHP < 4MW (working hours ~ 8050 h) Existing District heating gas boilers where from 70`s and needed replacement. Days Days Bio CHP capacity is almost fully utilized during the heating season/ 18

19 Time schedule Environmental impact assessment Investment decision Civil works started Construction works started First firing with gas First firing with biomass Synchronization with the grid Start of trial run Commissioning

20 Key indicators Fuel power 77 MWfuel District capacity 45 MWdh Electricity capacity 23 MWe Condensing capacity 30 MWth Estimated DH produced 230 GWh Generated backpressure electricity 110 GWh Plant efficiency 88% 7 local fuel suppliers Fuel supply in summer trucks/day Fuel supply in winter trucks/day Staff 30 engineers and operators; 5 shifts each 12h

21 Bubbling Fluidized Bed Boiler Stack Boiler parameters: Input capacity: 76 MW Minimum load: 35% Steam capacity: 26 kg/s Steam temperature: 527 C Steam pressure: 117 bar Temp.in the furnice: 850C 1000C Fuel tanks Superheater Flue gas filters Furnice Fuel feeding openings

22 Fuel Supply trucks/day in summer trukcs/day in winter m3/year or MWh weights Fuel receiving in a storage Fuel feeding to the boiler Paying for the fuel (LVL/MWh) Samples for the laboratory to test heat capacity (MWh/t) 22

23 Benefits for Jelgava Previous production was 100% natural gas based, using boiler houses from 70`s Imported fossil fuel replaced by renewable, local Fortum s total investment during totals ~ 90 M, including DH network renovation; interconnection of two DH systems under river and replacement of all heat production units, including BioCHP CO2 emissions will reduce by 75%.. 90% Fuel efficiency 90 % More competitive and predictable district heating price 250 CO2 emissions from heat production CO2/kWh

24 Heat energy tariffs, Ls/MWh (Tariff is set at sales price of natural gas up to 205 Ls/thous.nm3) (green- wood chips, red - CHP, natural gas- HOBs) From December 1st Current

25 Fortum s recent investments in the Baltics in local fuel based CHPs Tartu, Estonia bio/peat CHP 25 MWel/50 MWth in operation since 2009 Total investment 75 MEUR Pärnu, Estonia bio/peat CHP 23 MWel/45 MWth in operation since 2010 Total investment 80 MEUR Klaipeda, Lithuania WtoE CHP 20 MWel/50 MWth in operation since May 2013 Total investment 130 MEUR Jelgava, Latvia bio CHP 23 MWel/45 MWth in operation since September 2013 Total investment 70 MEUR 25

26 CHP-integrated pyrolysis oil production 26

27 Next generation CHP with integrated concepts Why is this important? Aim for higher power/heat ratio Competition in fuels -> fuel flexibility Slow growth or decrease of heat loads Load factor (4000 -> 8000 hours/a) Integrated concepts could provide new business opportunities and products Examples of integrated concepts Pyrolysis oil Torrefaction (bio coal) Gasification (SNG, traffic fuels, green chemicals) Ethanol (1 st and 2 nd generation) Heat driven cooling Desalination CHP plant District heating, cooling Biorefinery Industry

28 Pyrolysis oil a domestic alternative for fossil oils Bio oil is produced from biomass like forest residues and other forest industry by-products Energy density of bio oil is high compared to unprocessed biomass Bio oil can be economically transported longer distances to be utilised in heat and steam production Heating value of bio oil is about half compared to fossil oils Bio oil can be used for replacing heavy fuel oil In the future bio oil can be a raw material for carbon lean chemicals and traffic fuels 28

29 Thank you! & 29