A roadmap for electrification of chemical industry

Transcription

1 A roadmap for electrification of chemical industry Rob Kreiter ECN-L Acknowledgements Ministry of Economic Affairs for financial support Contributions: Jan Wilco Dijkstra, Robert de Kler, Arjen Boersma, Yvonne van Delft, Martijn de Graaff, Paul Koutstaal, Simon Spoelstra, Robert de Boer, Gerhard Reeling Brouwer.

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3 New energy sources cause big changes Electricity D.S. Scott, The energy system, 1993

4 The Dutch (petro)chemical industry Import oil Competition with middle/far east Clean and green Fuels Biomass CO 2 Renewable Electricity Electricity Cheap natural gas Supply issues High value Chemicals

5 The Energy system Outlook Electricity will play an increasingly important role in energy systems of the future, both in sustainable generation, smart distribution, and smart end-use consumption Source: Energy Technology Perspectives Harnessing Electricity's Potential.

6 Energy use in the Dutch chemical industry Share of 3167 PJ final use Energy use NL in GW continuous 10% 10% 5% 1% Chemistry 27% Refineries Industry other Oil and gas ,4 Transport 14% 16% 10% 2% 5% Housholds Electricity production Services Agriculture Waste and water Energy use NL Total Industry Feedstock Energetic Electricity Year Source GW eq cont GW installed 2013 Total electricity generated renewable electricity Total electricity generated renewable electricity (53%) intermittent solar/wind (87%) Source: Nationale Energieverkenning, 2014

7 Increasing share of renewable energy Solar and Wind Source: Nationale energieverkenning 2014

8 price (EUR/MWh Renewables have a variable supply Variability of supply and demand Transport limitations Variable price 160 Price duration curve (2030) time (hrs) Time Place Price Sources: de Joode, 2014, NEV, 2015 Visie 2030, Tennet

9 Sources of flexibility Flexible supply Demand response & conversion Interconnection Energy Storage

10 Elements: the value of electricity in chemical industry Value as heat Electricity replaces conventional heating using mostly natural gas Value as intermediates Electricity is used to make intermediates (e.g. hydrogen, NH 3 ) Product value Electricity used directly to make end products

11 Electrification technologies Illustrative cost curve of demand-side response (estimation ) Methodology Cost curve of electrification options in Assumptions High CO 2 price High volatility power markets Electricity storage mature technology Cost /MWh Power to Specialty Chemicals Flex power -100 Load Curve % of hours Power to Fine Chemicals Power to Commodity & Specialty Chemicals Power to Gas (H 2 /Fuels) Power to Heat (storage) Participation area for secondary control (imbalance power market) Illustrative Economics of demand-side response options determine their dispatch strategy: Power to fine and specialty chemicals - mainly base-load power off-take. Power to heat - wide range of profitable application (e.g. E-grid management, imbalance market or day ahead options). Power to gas Imbalance market, intraday and day ahead markets.

12 The impact of variability A higher added value of electricity in the process means a lower incentive for making use of the price variability Price variability Flexible processes P-to-Heat/Cold P-to-Intermediates P-to-Products Value of electricity

13 Capital requirement x Risks Electrification technologies Technology Maturity Curve of electrification options (2015) Steam compressor Feedstock renewable bio-based, CO 2 & H 2 O: Formic acid Ethylene Fuels Feedstock fossil & biobased: MCA Phosgene FDCA TA Heat Pump Power to Hydrogen (PEM electrolysers) Kalina cycle Power to Methane HT piston compressor Electrochemical reduction/oxidations (Chlorine, ammonia, alkaline) Heat pump Rankine cycle Brayton cycle Research Design Demonstrate Deployment Mature Electrode boiler Legend: Power to Heat/Cold Power to Gas (hydrogen/methane) Power to Chemicals / Fuels Time

14 High level Road Map of Electrification Capacity (MWh) Power to Heat (Upgrading) - Addition to syngas, e.g. methanol - Input refinery - Ammonia (via H2) - Formic acid (via H2) Power to Gas (H 2 /CH 4 ) / to Chemical Power to Specialty Chemical Feedstock fossil bulk & renewables, biobased Power to Commodity & Specialty Chemical Feedstock: renewables biobased, CO 2 & H 2 O - Syngas - Ammonia (direct) - Formic acid (direct) - Ethylene (direct) - Butanol (direct) - Fuels Power to Fine Chemical - Fragrances - Specific fine chemicals Feedstock fossil bulk - MCA - Phosgene - FDCA Now Time