Biomass for District Heating 14 th October Paul Woods Head of Energy Partnerships East London

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1 Biomass for District Heating 14 th October 2016 Paul Woods Head of Energy Partnerships East London

2 ENGIE Urban Energy Largest DE Business in the UK 2.5bn revenue stream over the concessions 77,000 tonnes CO 2 saved per annum 270 GWh energy sales per annum Midlands Leicester District Energy Birmingham District Energy Coventry District Energy London Olympic Park & Stratford City ExCeL Exhibition Centre Bloomsbury Heat and Power South Coast Southampton Geothermal Eastleigh 2

3 The Committee on Climate Change verdict on the buildings sector (report to Parliament 2015) Page 3

4 Energy transport options Fuel Source: gas, biomass Electricity Source: gas, nuclear, renewable Heat Sources: CHP, biomass, heat pump, geothermal, solar District Heating Network Boiler CHP Direct Heat Pump Building or industrial Heat Demand Solar Page 4

5 What is District Energy? Piped heating or cooling services to buildings Pre-insulated pipe, buried circa 1-1.5m below ground in the highway Pipe can be plastic (PEX, PB) or steel with polyurethane or PE foam insulation and an HDPE outer casing Heat losses generally < 0.5 C per km, 10% - 15% annual heat losses Reliability ~ 100% (e.g % for Birmingham since scheme start) Networks last for years Energy density is key, i.e. Size of heat load and distance from network 5

6 Why use district heating? Wider range of low carbon, low cost heat sources e.g. heat from power stations, industry Higher efficiencies for heat production plant than at building scale Economies of scale at central heat production plant capex and opex Lower impact on the environment e.g. heat from remote power stations Bulk purchase of fuel Diversity of demand improves load factor on central plant longer operating hours Flexible operation with multiple heat sources contribution to managing the electricity grid More cost-effective heat storage Space saving in buildings BUT all of the above benefits are needed to offset the costs of installing the heat network! Page 6

7 Policy support for heat networks/district heating Local: Planning policies promote connections to heat networks National: Heat Networks Delivery Unit formed in DECC providing grants for feasibility studies, RHI supports some technologies EU: Energy Efficiency Directive requires national assessment of the potential for heat networks and policies to deliver heat networks where appropriate. Also promotes use of heat meters in heat networks

8 What is the UK potential for Heat Networks? UK heat demand for building is 540TWh: 410TWh domestic, 130TWh non-domestic 2% of market is supplied from heat networks Source BRE/PB Power, 2003 Defra, 2007 (at 3.5% discount rate) Poyry/Faber Maunsell 2009 Delta-EE (housing study only) 2012 HN Potential (TWh) % of heat demand % % 76 14% % ETI, % Page 8

9 What is required for a successful DH heat source? Low cost to finance cost of heat network Low carbon and lower than can be achieved at building scale Low technical and commercial risk Low impact on the environment Flexibility and responsiveness Compatible with temperatures needed for DH typically 70C to 95C Page 9

10 Available Heat Sources for DH Primary Gas-engine CHP Biomass boiler Extraction of heat from thermal power plant (waste, biomass, gas CCGT) Fuel cell CHP (renewable derived hydrogen) Supporting Solar Industrial waste heat Electrode boiler Gas boiler Heat pump (river, marine, minewater, low grade industrial waste heat) Deep geothermal Page 10

11 Decentralised Energy Generation Combined Heat & Power Electricity generated locally instead of at power stations - avoiding transmission power losses The waste heat is used for space heating and hot water - instead of being rejected to atmosphere at power stations Local, low-carbon energy generation and consumption 11

12 12 Decentralised Energy Generation Combined Heat & Power

13 Biomass Woodchip Boiler Plant Sustainably sourced woodchip Renewable heat Support from RHI Space implications CO 2 Carbon Cycle Useful Energy as Heat 13

14 Comparison of DH heat sources DH Source Gas-engine CHP Cost (excl incentives) Carbon Risk Environment/ Sustainability? Flexibility Biomass boiler Extraction from power station (incl biomass)? Fuel cell CHP, hydrogen Heat pump? Deep geothermal Solar Industrial waste heat? Electrode boiler? Page 14

15 CO2 content of heat (g/kwh) Comparison of heat sources 300 CO 2 content of heat Electricity emission factor (g/kwh) Gas CCGT Gas boiler 85% CHP 37%/40% Heat Pump - CoP =3 Electrode boiler Power station extraction Biomass woodchip Page 15

16 Queen Elizabeth Olympic Park & Stratford City District Energy Scheme

17 Sustainability Credentials Carbon Savings (Core Consumers): ~11,700 tonnes p.a. ~ 60% reduction in CO 2 emissions compared to conventional gas boilers Energy is provided at a similar price to conventional high carbon systems Chillers use ammonia as refrigerant with zero global warming potential 17

18 Core Customers Main Stadium Aquatic Centre Athletes Village / East Village Energy Centre(s) Velodrome Westfield Stratford 18

19 Off Park Developments Hackney Wick 4MW 8MW Peak heat demand Genesis Chobham Farm 2MW 4MW Peak heat demand Stratford Island 8MW 14MW Peak heat demand Carpenters Estate 9MW 31MW Peak heat demand 19

20 Heating & Cooling Networks 16 km of pipe installed across the site providing heat & chilled water. 20

21 The Kings Yard Energy Centre Kings Yard (Olympic Park) 3.1 MWe CHP 4.0 MW Absorption Chiller 3.5 MW biomass boiler 40 MW conventional boilers 14 MW VC Chillers 21

22 Kings Yard Energy Centre Biomass Boiler Gas Fired CHP Chillers Gas Boilers 22

23 23 Operating biomass and CHP July 2016

24 Summary of biomass for DH Advantages Renewable, lowest carbon source available Economic with RHI Less sensitive to return temperatures Reliable ideal for baseload Disadvantages Space required for boiler and stores Requirements Consistent fuel supply, moisture content, contamination and size all to be within limits Sustainably sourced and minimise transport energy 24 Price

25 Thank you for your attention Paul Woods Tel: