Current developments & potential of pellets from a European perspective. Christian Rakos, propellets Austria
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1 Current developments & potential of pellets from a European perspective Christian Rakos, propellets Austria
2 3 focal points of pellet market development (heat) Sweden, Denmark: large scale use & pellet burner strategy Austria: pellet boilers Italy: pellet stoves
3 Sweden USA 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0,0 per capita use of pellets as fuel for residential heating Germany France Ireland Italy Austria Denmark kg per capita and year
4 Pellet sales in Sweden (t) Source: Johan Vinterbäck, PIR 2007
5 Most commonly used in Sweden: pellet burners Used to retrofit for existing oil boilers Wide range of power Low cost Lower efficiency High maintenance requirement
6 Austria: dedicated pellet boilers automatic fuel feeding, ignition and cleaning of heat exchangers Ash removal 1-4 times per heating season > 90% efficiency & extremely low emissions
7 State of the art pellet stove / boiler Hot water for central heating & tap water Automatic cleaning of heat exchangers Automatic ash densification Automatic fuel feed from bulk storage 94% efficiency,
8 30 years of wood combustion research the results
9 Average efficieny of wood boilers increased from 50% in 1980 to 93% in 2004
10 Pellet boilers work like oil boilers: automatic fuel feeding from storage
11 Bulk pellet delivery with trucks pellets are blown into the storage
12 12000 Annually installed residential pellet boilers in Austria Expected Qauelle: propellets Austria, Mai 2008
13 Strongly growing in Austria: commercial use of pellets as fuel Container solutions including boiler, fuel storage & solar KW Easy & fast installation Leasing contracts
14 Italy: a dynamic pellet stove market Pellet demand in Italy Source: Annalisa Paniz, AIEL, 2008 Pellet stove sales 2006: units!
15 Pellet and heating oil prices (cent / kwh) in Austria Fuel oil 3/00 4/00 1/01 2/01 3/01 4/01 1/02 2/02 3/02 4/02 1/03 2/03 3/03 4/03 1/04 2/04 3/04 4/04 1/05 2/05 3/05 4/05 1/06 Pellets 2/06 3/06 4/06 1/07 2/07 3/07 4/07 1/08 2/08 1/00 2/00 Source: propellets Austria, IWO; May 7th, 2008 Cent / kwh
16 Pellet standards in Europe ONORM M7135: most influential standard for residential heating DIN, DIN plus: similar Various quality brands: e.g. pellet gold have similar requirements EU standards will be established briefly based on the ONORM specifications
17 Specifications of ONORM M 7135 Only from untreated wood or bark Diameter: 4-10 mm Length: < 5 x D, max 20% < 7,5 x D Net calorific value: > 18,0 GJ/kg Density > 1,12 kg/dm3 Water content < 10,0% Ash content < 0,5% - 0,8% Abrasion max. 2,3% pressing aids: < 2% Sulphur< 0,04 % Nitrogen < 0,3 % Chlorine < 0,02 %
18 Most recent trends in Europe Investors and large scale fossil fuel companies are entering the pellet market Very strong increase in production volumes Very strong demand increase from power plants Heating market startup in many countries Booming heating market expected
19 ,0 120,0 100,0 80,0 60,0 40,0 20,0 0,0 Szenarios for global pellet production 18% growth p.a. 25% growth after Million tons
20 Why will pellets be the most common way to use biomass for energy?
21 Net energy yield for different biomass utilisation pathways Source: Germen Expert Panel for Environmental Issues 2007
22 Energy loss ( % ) Energy loss of different conversion technologies for woody biomass Minimum Maximum Pellet production Biomass Electricity 2nd gen. Biofuels (FT)
23 Subsidy requirement per MWh of energy Minimum Maximum Euro Pellets (heat) Biomass Electricity Biofuels
24 Policy framework energy crisis ahead full scale policy support will become available IF we communicate the potential of pellets to policy makers IF we do our homework fuel supply quality of products & services EU directive for renewable energy: 20% RES mandatory for 2020
25 Homework #1: sound pellet supply system standardised qualities bulk delivery developed logistics market monitoring 100% supply security legal storage requirements
26 Homework #2: quality of products efficiency: > 90% emissions: CO < 20 mg/m3, Dust < mg/m3 fuel flexibility grid independent operation customer comfort Automatic cleaning of heat exchangers ash management
27 Quality labeling obligatory in the EU for most electric appliances Will be introduced for heating appliances will be related to energy efficiency & emissions subsidy schemes will require A label
28 Homework #3: quality of services throw away culture will not continue in a resource constrained world long product life & possibility to repair will be issues trained maintenance & repair technicians indispensable trained installers & planners indispensable complexity of building energy systems will increase: massive improvements of efficiency, integration of solar & biomass
29 What we can offer: technology cooperation Direct cooperation with Austrian manufacturers propellets can act as facilitator Austrian Bioenergy Centre: R&D center that designs & optimises boilers & stoves für industry Contact person:
30 What we can also offer Cooperation at the level of associations Share experiences in market development Share policy strategies Come over & visit us!
31 A final remark Fundamental changes and huge opportunities are ahead An active professional interest organisation has a key role to play Lobbying Public relations Standards & technical issues Communication platform for industry & intl. Cooperation Substantial funding for such an organisation is the best possible investment into your business
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