Success factors of bioenergy for CHG mitigation in Scandinavia

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1 Success factors of bioenergy for CHG mitigation in Scandinavia Satu Helynen VTT Energy 1. Use of biomass based fuels in Europe 2. Role of forest industry in bionergy sector 3. Combined heat and power (CHP) production 4. Development of new technologies on bioenergy 5. Financial and legislative incentives 6. Future challenges IEA Bioenergy Task 38 workshop November 2001 in Edinburgh

2 Current use of biomass fuels PJ/a Other biomass resources Refined wood fuels Wood wastes Domestic (residential) firewood Industrial waste liquors Industrial by-products (solid) Forest residues 0 Sweden Finland Germany France Spain UK Romania Austria Portugal Poland the Netherlands Italy Denmark Estonia Latvia Slovakia Belgium Slovenia Ireland Source: ALTENER AFB-net V, Task 2: Import & Export Possibilities and Fuel Prices

3 PJ/a Annual biomass resources and ANNUAL BIOMASS RESOURCES AND THE SHARE OF THE PRESENT USE the share of the present use Other biomass resources Refined wood fuels Wood wastes Domestic (residential) firewood Industrial waste liquors Industrial by-products (solid) Forest residues France Germany Spain Poland Finland UK Sweden Austria Source: ALTENER AFB-net V, Task 2: Import & Export Possibilities and Fuel Prices Italy Portugal Romania the Netherlands Denmark Latvia Estonia Belgium Slovakia Slovenia Ireland ENERGY

4 Annual fellings in Europe Russia Sweden France Finland Germany Poland Austria Czech Norway Portugal Spain Belarus Ukraine Italy Ukraine Slovakia Switzerland Latvia Hungary Lithunia Bulgaria Croatia Belgium Estonia Yugoslavia Greece Ireland Slovenia Denmark Netherlands Finnish Statistical Yearbook of Forestry 1999, Temperate and Boreal Forest Resources Assessment 2000, FAO

5 IMPORTS INDIGENOUS ENERGY OIL COAL NATURAL GAS NUCLEAR ELECTRICITY IMPORTS 15.3 Exports of fuel peat 0.6 FUEL PEAT 50.7 WOOD Stock changes and statistical difference HYDRO POWER 52.3 ENERGY BALANCE IN FINLAND 2000 (PJ) Crude oil and NLG Stock changes of fuel peat 7.9 Wood 4.2 Natural gas 1.6 Nuclear Imports 43.9 Hydro power 52.3 Coal 49.7 ENERGY E. Alakangas Source: Statistics Finland Stock changes 7.0 Oil refinery Wood 12.7 Peat 12.0 Oil 2.0 ELECTRICITY PRODUCTION BY CONDENSING POWER 20.5 Oil products Stock changes Coal 42.3 Peat 25.9 Natural gas 59.6 Oil MUNICIPAL CHP Natural gas 8.9 Peat 4.0 Wood ELECTRICITY SUPPLY Losses Natural Coal gas Peat 2.6 Wood 9.2 Coal 1.7 Oil 4.8 ELECTRICITY FROM INDUSTRIAL CHP Electricity 1.9 HEAT SUPPLY TRANSPORT PJ Oil 8.5 SEPARATE DH PRODUCTION DH 85.8 Peat Losses Natural gas 2.6 Electricity exports 1.2 Transport 1.9 Other consumption Oil 74.6 HOUSE HOLDS AGRICULTURE COMMERCE AND PUBLIC SECTOR PJ Oil exports International marine bunkers 27.0 Non-energy use and statistical difference 43.0 Natural gas 63.1 Peat 12.5 Wood DH 9.5 Wood 48.3 Oil 71.0 Coal transformation Raw material use Coal 31.6 INDUSTRY PJ Losses EnergyBalance2000.cdr

6 Existing power and heating plants using biomass in Finland Combustion pcs/mwth - grate firing up to 100 MW >200/> fluidised bed boilers: MW bubbling bed 30/ MW circulating bed 15/ recovery boilers for black liquor up to 500 MW 20/4300 Gasification - fixed bed gasifiers up to 10 MW 10/50 - fluidised bed gasifiers up to 100 MW 2/100

7 Background for the development and choice of fluidised bed technology debarking of logs was moved to paper, pulp and saw mills: boilers needed for demolition of wet bark (up to 60 % moisture content) wet bark did not satisfy steam demand of the mill alone, coal and peat were used as additional fuels municipalities built peat fired pulverised fuel boilers that have converted to bubbling beds using also wood chips paper and pulp mills converted grate boilers to bubbling beds in order to utilise in the same boiler milled peat, coal, wood chips and sludges

8 COMBINED HEAT AND POWER GENERATION Boiler losses 10 Electromechanical losses 5 SEPARATE HEAT AND POWER GENERATION Boiler losses Electromechanical 7 losses 3 Condensation losses Electricity Fuel Heat 56 Fuel 133 Electricity Heat 56 Total efficiency 85 % Boiler losses 7 Total efficiency 64 %

9 Biomass CHP technologies Power output, Fuels Technology Status MW e < 1 solid biomass Stirling (< 500 kwe) D biomass (flue gas) ORC -Organic Rankine Cycle D biogas Engine C 1-3 solid biomass Direct combustion and steam turbine/engine C solid biomass Gasifier and engine C liquid biomass Engine D > 5 (max. 280 MW under construction) solid biomass Grate or fluidised bed combustion and steam turbine (Rankine) C solid biomass and waste Gasifier connected in existing steam boiler (Rankine) C solid biomass and waste Pressurized gasification or combustion with gas and steam turbine (IGCC) D

10 Combined heat and power (CHP) production in municipalities Pcs. MW (thermal) MW (electricity) Austria na Denmark Estonia Finland Poland Slovakia Sweden 24 na na UK

11 Finnish experiences how to reduce prices on biomass-based fuels competition and operating fuel market are needed: more than one fuel supplier operating nationally and hundreds of local contractors presently short-term contracts (<1 year) and contracts with several suppliers are preferred by energy producers boilers and plants are designed for several fuels: biomass is used only if it is the most competitive alternative harvesting and logistics of biomass-based fuels is integrated to wood procurement for pulp and saw mills harvesting methods are developed systematically

12 Fuel prices in Finland, Denmark and Sweden for plants 1-5 MWth /GJ Forest residues Industrial by-products (solid) Domestic (residential) firewood Wood wastes Refined wood fuels Other biomass resources Peat Heavy fuel oil Light fuel oil Natural gas Coal 2 0 Finland Sweden Denmark

13 Fuel prices in Finland, Denmark and Sweden for plants over 50 MWth /GJ Forest residues Industrial by-products (solid) Domestic (residential) firewood Wood wastes Refined wood fuels Other biomass resources Peat Heavy fuel oil Light fuel oil Natural gas Coal 2 0 Finland Sweden Denmark

14 Production methods for logging residues in Finland COMPACTING OF RESIDUES TRANSPORTATION OF RESIDUES CHIPPING AT STAND CHIPPING AT TERMINAL CHIPPING AT ROADSIDE CHIPPING OF LOGGING RESIDUE AT END-USE FACILITIES ENERGY

15 Cost structure and prices of wood fuels in Finland EUR/MWh FIM/MWh FIM/MWh Logging residues Overhead Road transport Chipping Forest haulage Harvesting FIM/MWh Whole tree EUR/MWh LOGGING RESIDUES Chipping 34 % of costs Average price in FIM/MWh 14.7 DEM/MWh SMALL-SIZED WOOD Harvesting 31% of costs Average price in FIM/MWh 20.3 DEM/MWh SUPPORT FOR WOOD FUELS Harvesting; young stands 14 FIM/MWh (30 FIM/m 3 ) Chipping 12 FIM/MWh (10 FIM/m 3 loose) young stands Electricity 25 FIM/MWh e (6-12 FIM/MWh for fuel) 0.0 Small stems delimbed Small stems undelimbed Logging residues Forest chips average

16 Stoves and small boilers for buildings: large potential to reduce the use of oil Heating of buildings Denmark Finland Norway Sweden Houses % Houses % Houses % Houses % (1000) (1000) (1000) (1000) Biomass Oil Natural gas Electricity District heating Operation and maintenance should be easy High efficiency and low emissions -> High quality fuels: Pellets and bio-oils

17 Financial incentives for promotion of bioenergy in Finland Investments on R&D&D in order to reduce costs of fuels and energy production Investment subsidies: 5 % - 50 % (demonstration) Carbon dioxide taxes for fossil fuels, since 1997 only for heat production because deregulation of electricity market Subsidies for indigenous fuels to make them competitive compared to imported fuels: electricity produced by wood fuels 4.2 euros/mwh (wind 6.9 euros/mwh)

18 Energy taxes in Finland euros/mwh Light fuel oil Heavy fuel oil Coal Peat Natural gas

19 Future challenges Scandinavian countries have been during the last 30 years a demonstration field for new large scale bioenergy technologies: Available commercial products for biomass and waste: bubbling fluidised bed boiler circulating fluidised bed boiler atmospheric fluidised bed gasifier Under development: once-through supercritical fluidised bed fixed bed gasifier connected to an engine new cofiring concepts for coal boilers PFBC and IGCC gasification of black liquor concepts for integrated bioproduct (fibre, chemicals, liquid biofuels, pellets, etc.) and bioenergy production from biomass and waste