Strategies to Reduce CO 2

Transcription

1 Energy Summit 2018 Strategies to Reduce CO 2 Martin Lensink, Principal-In-Charge Helping Our Clients Achieve Their Energy and Environmental Goals!

2 Conclusions/Learning Outcomes 1. There are proven technologies to reduce CO 2 emissions which can be implemented today. 2. This presentation will highlight three (3) examples: Option Complexity Capital (Before Grant) ($000 s CAD) Tonnes/Year Reduced Solar Thermal Lowest Biomass Gaseous (Non- Fossil) Fuels Most Involved 25,000 65,000 Low 1,000 1,000 May 31,

3 Problem/Background 1. Burning natural gas produces CO 2 2. Ontario s CO 2 reduction target: 15% by % by Cap and Trade puts price on carbon 4. You are under pressure to reduce CO 2 May 31,

4 Problem/Background (Con t) 5. If you are: Under limit, you can sell allowances Over limit, you must buy allowances 6. With rising cost of CO 2, profits could/will decline, since it will be hard for you to pass on cost increases to your customers. 7. Doing nothing is not really an option. 8. We want to help you stay competitive. May 31,

5 Understand System Losses Flue Losses 20% Radiation Losses 3% Distribution Losses 5% Flash Losses 5% Fuel Input 100% Heat Output 75% Heat To User 55% Boiler Distribution Blowdown Losses 2% Condensate Losses 10% May 31,

6 Reducing GHGs/CO 2 1. Reduce energy use at point of use 2. Reduce losses in THERMAL distribution system Steam piping (say) Maximizing condensate return and condensate temperature 3. Reduce natural gas use in boiler OR Get OFF natural gas IN PART or IN WHOLE May 31,

7 Reducing GHGs/CO 2 Boiler right sizing and Load Management Advanced Boiler Controls High Efficiency Burners Feedwater Economizers Combustion Air Preheat Blowdown Heat Recovery Condensate Return/Condensing Economizers Refrigeration Heat Recovery Air Compressor Heat Recovery Exhaust Gas Heat Recovery Ventilation optimization and Heat Recovery Condensing Boilers Biogas Boilers Direct Contact Water Heaters High Efficiency Heating Units Improved Building Envelope May 31,

8 GASEOUS FUELS (LESS CARBON IMPACT) RENEWABLE NATURAL GAS Mixture of Biogas and Natural Gas RENEWABLE NATURAL GAS Mixture of Hydrogen and Natural Gas HYDROGEN Power-to-Gas, via electrolysis BIOGAS Via Anaerobic Digesters SYNGAS Via gasification of clean biomass May 31,

9 LIQUID & SOLID FUELS (WITH LESS CARBON IMPACT) BIODIESEL Vegetable Oil/Fatty Acid Ester ETHANOL Produced from agricultural feedstocks METHANOL If made from woody biomass (via pyrolysis) CLEAN BIOMASS Direct combustion, producing high grade clean, hot air May 31,

10 Financial Incentives CO 2 Reduction Canada Alberta (AB) Ontario (ON) British Columbia (BC) Created $2 billion (CAD) Low Carbon Economy Fund to leverage investments in projects which reduce GHGs $30/tonne carbon tax (grants coming) Cap & Trade has raised $2.5 billion in five (5) quarters $5 million grants available $30/tonne carbon tax (grants available) May 31,

11 SOLAR THERMAL May 31,

12 Solar Thermal Great way to reduce CO 2 Ideal for low grade heat (150 C 200 C) Makeup water heating Process water (parts washing) Domestic Hot Water pre-heating Pre-heat combustion air (to HVAC units) Space Heating Great optics (easy to understand) and low cost Established OEM s (ex. Viessmann) May 31,

13 Solar Thermal Closed loop, freeze protected, solar thermal system (hydronic system) Solar Thermal Collector Solar control Expansion tank + PRV Glycol pumping station Solar storage tank Pictures courtesy of: Viessmann Solar heat transfer fluid (Propylene Glycol) May 31,

14 Solar Thermal Flat Plate Collectors: New Switching Absorber Coating ThermProtect Switching absorber coating Pictures courtesy of: Viessmann May 31,

15 Solar Thermal Pictures courtesy of: Viessmann May 31,

16 Solar Thermal Pictures courtesy of: Viessmann May 31,

17 Solar Thermal Case Study: Tier 1 Parts Plant Dip wash tanks Target temperature: 136 F (or 58 C) May 31,

18 Solar Thermal BUSINESS CASE $000 S CAD Purchased Natural Gas Saved (1) 135,000 m 3 /year x 0.25 $/m 3 33 CO 2 Displaced by Solar Thermal 280 tonnes/year x $18/tonne Maintenance Reserve & Power for Pump 5 Rough EBITDA 33 Rough Gross CAPEX Rough NET CAPEX (after GreenON) Simple Payback (1) Assuming steady, year round process use (2) Assuming roof can support panels (no new structural steel and no ballast) years May 31,

19 Biomass CHP May 31,

20 Biomass Use a carbon-neutral solid fuel (i.e. a byproduct of manufacturing...or purchased locally) Thermal energy used for: Power Generation (Steam Turbine or ORC) Steam or Hot Air or Hot Oil (for process) or Hot Water Why not meet part/all of process thermal/power needs with biomass? Huge CO 2 benefit (10,000 tonnes/year 80,000 tonnes/year) May 31,

21 Biomass May 31,

22 Biomass May 31,

23 Biomass Pictures courtesy of: Vyncke May 31,

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25 Biomass Picture courtesy of: Vyncke May 31,

26 Biomass Case Study Martens (Venrey, NL) Untreated wood (at ~50% moisture) 30,000 lbs/hr steam (420 psig, 750 F) 1.6 MW e (net) power + 27 mmbtu/hr hot water NO x <40 mg/nm 3 (Ontario A13 Limit is 200) PM <5 mg/nm 3 (Ontario A13 Limit is 25) CO <250 ppm (Ontario A13 Limit is 400) May 31,

27 Biomass May 31,

28 Biomass BUSINESS CASE (4 MW E STG/125 KPPH) ($000 S/YEAR) 1 Natural Gas Displaced by Biomass 6,100 2 Purchased Power Displaced by STG (800 psig/800 F) 3,600 3 CO 2 Cost Avoided by Biomass 1,250 4 Cost of Biomass 45 $/GMT 5,700 5 Ash Disposal Maintenance Reserve Additional Operators Standby Power Net Savings (EBIDTA) 3, Net CAPEX (After GreenON grant of $5 million) 20, Actual Payback (Years) Year IRR (%) 18 May 31,

29 Gaseous Fuels (Other than Natural Gas) May 31,

30 Gaseous (Non-Fossil) Fuels Make gaseous fuel, containing methane: Biogas, via existing anaerobic digester OR... Biogas, via new anaerobic digester OR... Syngas, via new gasifier Then remove contaminants: H 2 S and H 2 O (in case of biogas) PM and H 2 O (in case of syngas) Burn non-fossil fuel in (modified) existing boiler May 31,

31 Gaseous (Non-Fossil) Fuels May 31,

32 Gaseous (Non-Fossil) Fuels Bag needed to maintain pressure to boiler May 31,

33 Gaseous (Non-Fossil) Fuels 2 nd fuel train added to existing boiler May 31,

34 Gaseous (Non-Fossil) Fuels May 31,

35 Gaseous (Non-Fossil) Fuels Via Gasification May 31,

36 Gaseous (Non-Fossil) Fuels Dornbirn, Austria May 31,

37 Gaseous (Non-Fossil) Fuels May 31,

38 Gaseous (Non-Fossil) Fuels May 31,

39 Gaseous (Non-Fossil) Fuels 1 2 BUSINESS CASE ($000 S/YEAR) Purchased Natural Gas Displaced (~2 mmbtu/hr) 500,000 m 3 20 /m GHG/CO 2 Cost Savings 1,000 $20/tonne 20 3 Consumables for H 2 S Removal 10 4 Parasitic/Auxiliary Power 10 5 Net Savings ( ) Gross Capital Cost 1,000 7 Financial Incentive (500) 8 Net Capital Cost Rough Simple Payback (years) ~5 May 31,

40 Conclusions 1. Develop a Five (5) year Strategic Energy Plan, with: Natural gas conservation targets (m 3 /year) Associated CO 2 benefits 2. In short term, focus on: EMO s at point of use and in boiler room Heat recovery projects Maximize grants from LDC & GreenON (or equivalent) 3. Check your boiler to see if it can accommodate retrofit to carbon-neutral fuel 4. Relax your financial feasibility threshold (i.e. accept 5 7 year payback instead of 2 3 year) May 31,

41 Questions? Martin Lensink, P. Eng. Principal-In-Charge May 31,