Deliverable 3.a (Combining former deliverables 3.1; 3.2; 3.5)

Transcription

1 City Supporting partner Ostrava, Moravian-Silesian region ADH Czech Republic Deliverable 3.a Map showing local heating and cooling demand and supply Ostrava and whole Moravian-Silesian region is one of the most contaminated regions of the Czech Republic in terms of emissions. The northern part of the region is characterized by its original focus on heavy industry, particularly metallurgy and coal mining. Next to the major city of Ostrava there are large residential complexes - towns Karviná and Havířov, see the extract of the Pan-European Thermal Atlas. These towns are supplied with heat primarily through the extensive district heating system with indigenous local CHP Karvina, CHP CSA and gas heating plant Havirov. CHP Karvina and CHP CSA are older sources with higher permitted levels of emissions now but in the future will be required significant upgrading or replacement of these sources. Heat demand Location Number of households in Heat demand [MW] for 2015 blocks of flats winter summer Havířov Karviná Důl ČSA Orlová a Bohumín Losses of heat feeder Dětmarovice Total Estimated total annual heat supply to the heat system Karvina + Havirov for 2015 is GJ/year.

2 Karviná Havířov There is at a distance of about 9 km from the centre of Karviná the Dětmarovice power plant with 4 x 200 MW e energy units. This plant could be gradually modernized and adapted to the heat supply system (adaptation of the turbines to the heat consumption mode and increase the share of CHP). Energy units of this plant will be progressively retrofitted with installations reducing emissions to be able to meet the emission limits according to EU and Czech legislation after We also consider to build a WtE incinerator which could be located either at the power plant of Dětmarovice or within existing CHP ČSA.

3 Mapping methodology Deliverable 3.a H/C demand H/C infrastructure Sustainable H/C Excess heat Energy efficiency potential Geothermal Bio-energy Solar thermal City only Neighbourhood only x x x Individual installation No details Additional Info Monitored data Heat demand mapping These data were collected from our local partners. They are based on the long-term average winter and summer consumption of the end customers in this area. Excess heat potential There is a lot of sources of excess heat in this area thermal power generation, chemical and petrochemical industry, abandoned coal mines, iron and steel industry. We discussed this situation with our local partners and we chose the most effective solutions. Current challenges - opportunities Ostrava and surrounding cities are densely covered by district heating system (Ostrava 97 %, Havířov 99 %, Karviná 99 %,). There is a very little opportunity to extend district heating system. That is why we have to seek for other solutions to improve the situation in this region. As opportunities in this region we consider replacement of coal-fired boilers for gas turbines or modification to the CHP regime. The most of the cities in this region dump their waste in landfills. We would like to help them to find a solution for building modern incinerators. Areas of priorities Priority areas we find in: 1) use of energy from waste 2) replacement of old fossil sources for new greener ones 3) utilization of excess heat Identified projects List of considered projects: Utilization of excess heat from CHP Dětmarovice Build waste to energy incinerator near Karviná Expansion of the DH system in Nový Jičín

4 Project 1and 2 Deliverable 3.a The objective of this project is to ensure heat for residential complex Karviná near Ostrava city by environmentally efficient way using upgraded and ecologized heat source of CHP Dětmarovice and waste to energy incinerator with CHP regime. MS region produces approximately 460 t tons of waste per year. The WtE incinerator will reduce landfill by about half and MS region gains heat ( GJ/year) and electricity (23000 MWh/year). The proposed solutions: Winter option Dětmarovice capacity 260 MWt + WtE incinerator 40 MWt 160/60 C Summer option Dětmarovice capacity 38 MW + WtE incinerator 40 MWt 95/55 C The optimum size of the waste to energy incinerator is consisted of 2 technological lines with overall capacity 192 t tons of waste per year with caloric value 10 GJ/t. Installed capacity would be 40 MWt. Annual working hours fund could be 8000 hours. The incinerator could replace the old CHP ČSA. It could be also possible to discuss the purchase of waste from Poland. Thanks to this project Czech Republic could fulfill the obligations arising from EU Directive 31/99 / EC on the landfill of waste. Business model of project 1 and 2 Key Partnerships Local energy supplier company. Regional authority of MS region and consortium of 5 cities (Ostrava, Opava, Karviná, Havířov, Frýdek- Místek) that concluded a memorandum on mutual cooperation. We want them to solve the issue of waste management. Key Activities Site selection, construction of WtE incinerator, shutdown of old coal-fired heat plant, connection to the heat and electricity network. Key Resources locality, technology, providing a necessary amount of waste Value Proposition By construction of WtE will be reduced space of landfills, will be reduced emissions of landfill gases, will be fulfilled commitments to EU, will be produced heat and electricity, will be saved fossil fuels. Customer Relationships Our customers expect final and environmentally acceptable solution of the waste management in the region. Channels Local energy supplier communicates with its customers by mail along with invoice. Customer segments Households of MS region. Cost structure The most expensive is an investment in WtE incinerator. It is about 180 million. Project plan includes obtaining European and/or national grants and credit financing. Revenue Streams Customers are willing to pay higher fees for the waste.

5 Customer segments Households of Moravian-Silesian region ( multi-residential buildings, single family houses), public buildings (authorities, schools, hospitals, pools, ), commercial buildings, industrial facilities. Members of Czech District Heating Association. Value prepositions Our project will ensure cleaner environment construction of WtE will significantly reduce space of landfills and thereby decrease emissions of landfill gases. The old heating plant will be decomissioned and replaced by a new modern and more environmentally friendly facility. This solution will save fossil fuels. It will produce heat ( GJ/year) and electricity (23000 MWh/year) for the region. Fly ash and slag which is produced from waste incineration can be used for example as a component of building materials. This project will help fulfill the obligations arising from EU Directive 31/99/EC on the landfill of waste. Channels Households are addressed by the local energy supplier that sends them information along with the invoice. Municipalities inform their citizens through public notice boards and community magazines. The association of municipalities have a website with complete information about all the aspect of the technology and organization of the project. We organize meetings for project participants, ADH members, stakeholders, public organizations, regional and national authorities where we present objectives and progress of our projects. Customer relationships The customers expect us to prepare simple, environmentally acceptable, economical and affordable solution of waste management in the region. They expect that the Czech Republic will fulfill its obligations under European legislation. We often have to oppose erroneous attitude of the public, especially towards WtE and promote the benefits and explane real environmental impacts of the solution. Revenue streams Customers pay monthly capacity fees for the waste. Some of them are willing to pay higher fees. Another type of revenue stream are payments for heat and electricity. Key resources Physical: locality, WtE facility, district heating infrastructure, electricity network, water connection, waste as a fuel, Financial: loan, shareholders equity, subsidies, revenues from outputs (heat and electricity sale, by-products) Intellectual: design of the solution, technology, legal support, work schedule, project management Human: project designers, technical engineers, networks operators, service and maintanance staff, lawyers, salesmen, financial experts, managers, IT specialists, Key activities Analysis of the current situation in the region - we had to find out how much heat is needed in the region and what kind of sources cover this heat demand and how long they will be available. We found out that 2 coal heating plants are very old and should be decommissioned or reconstructed and modified to the CHP regime. It will cause lack of heat in the region. One of the possible solutions is to build a WtE incinerator because there is no such a installation in the region and the waste is landfilled. Site selection we were looking for a suitable site for a building of WtE incinerator. It has to be technically equipped, it means to have an acces to the district heating infrastructure, to the electricity network and water management. As the most appropriate was evaluated an area of old coal heating plant in Karviná. The old plant is going to be decomissioned. Waste supply we had to negotiate with the regonal partners municipalities, energy supplier, producer and operator of the facility,financial institutions and shareholders. Next activities - decommissioning of the old coal heat plant, construction of the new facility, service and maintanance, infrastructure improvement, ensuring of utilisation of ash and slag.

6 Key partnerships In the first step of the project site selection the main partner was the local energy supplier company. This partner has provided a locality technically suitable for building of WtE incinerator. We negotiated with two possible partners because there are two convenient localities in the region. In both cases installation of WtE is possible in the area of existing old heating plants. In the second step waste supply we negotiated with the Regional authority of Moravian-Silesian Region and association of municipalities (Ostrava, Opava, Karviná, Havířov, Frýdek-Místek) about collection and transfer of nonrecycable waste, payments for waste treatment and PPP contract. The third step WtE technology negotiation with the producer about ensuring WtE facility (EPC contract) and operator of the facility (O&M contract). Finally, negotiation with bank and financing institutions about a bank credit and also with shareholders about equity and subordinated debt. Cost structure Main investment costs: WtE incinerator, land costs, costs for building material and work, costs of decommissioning of old heating plant, infrastructure investment, Main operating costs: waste as a fuel, electricity, water, personnel costs, transport costs,.. Project 3 Nový Jičín is a town on the edge of the Moravian-Silesian Region. It has more than households in block of flats and there is a potential of almost households that is not connected to DH system. There are two proposals to improve the situation in this region. 1. Source Anenská is an old gas and biomass heat plant with installed capacity 27 MWt. It is utilised just for 46%. We propose to install 100 kw CHP gas unit in order to make the best use of remaining space between a total output of the boiler house and an output of the biomass boiler. Simultaneously the bio boiler could be overhauled. To utilize the whole capacity of the heating plant DH system should be extended to the nearby block of flats. It can replace the small local fossil fuel boilers and reduce emissions in the region. 2. The second proposal is to extend DH system from the gas source Tonak to the near urban area and a new hospital. The Tonak source has installed capacity 41 MWt and it is not fully utilized. Operators of the sources and the regional authority agree with these proposals. Now we are working on technical and economical solutions.

7 Ostrava Nový Jičín Anenska heat only plant

8 heat output, kwh Business model of project 3 Deliverable 3.a Key Partnerships Local energy supplier, suppliers of cogeneration units, operators of the sources, regional authority. We need them to replace the old small local fossil boilers and extend the DH system and thereby decrease local emissions. Key Activities suppliers selection procedure, installation of cogen. unit, extension of current DH system. Key Resources cogeneration unit 100 kw, hot water pipelines Value Proposition security of heat supply, reduction of emissions in the region, better utilization of the current source, connection of other households to the DH system Customer Relationships Our customers expect decreasing of local emissions, reliable and comfortable heat supply. Channels The regional authority will apprise the households with the benefits of the solution. Customer segments Households of the town Nový Jičín. Public and commercial buildings. Cost structure The most expensive is an investment in cogeneration unit. Variable costs are fuel (biomass, gas), electricity, ash disposal, water, emission fees, CO2 allowances. Project is planned to be financed by a credit. Revenue Streams Customers are willing to pay higher fees for heating in exchange for cleaner environment. Novy Jicin, Anenska heat output annual diagram gap for a gas fired CHP unit half-hours scale boiler house, kwh bio boiler, kwh

9 Customer segments Households of the town Nový Jičín ( multi-residential buildings, single family houses), public and commercial buildings. Value prepositions This project is aimed at reducing local emissions through replacing old ineffective local fossil fuel boilers for district heating system. The Anenska source consists of 3 gas boilers and 1 old biomass boiler that should be overhauled. The overal capacity is 27 MWt. The source is utilized for just 46 %. The intention is to utilise the wohle capacity of the source and extend the district heating network to the nearby block of flats, public and commercial buildings and replace their local fossil boilers. The source will be complemented by a new gas cogeneration unit with a capacity of 100 kw. Then the biomass boiler can be overhauled. The district heating offers a secure and comfortable solution of heat supply and cleaner environment for the customers. Channels The regional authority and local energy supplier offer district heating connection to the households and explain the benefits of the solution. The customers can get the information on the energy supplier website. There are plenty of articles on internet that describe the situation in the region in terms of emissions and what is needed to do to change it. Local energy supplier contacts its customers along with sending invoices. Customer relationships Customers expect us to offer a comfortable solution that decreases local emissions and ensure reliable heat supply. Local energy supplier needs to acquire new customers to sell produced heat from the new sources. Revenue streams Heat costs play very important role for the households. For customers is cheaper to burn coal or waste in small fossil fuel boilers than other more environmentally friendly solution. It is necessary to inform people about the impact of emissions on the environment and convince them about the benefits of district heating to be willing to pay higher fees for the cleaner heat supply. Key resources Physical: heat source with gas and biomass boilers, new CHP 100 kw gas unit, district heating infrastructure, new hot water pipelines, electricity network, water connection Financial: bank credit, own capital sources of energy supplier, third party financing, subsidies, revenues from outputs (heat and electricity sales) Intellectual: design of the solution, study on optimization of gas engines, geographic assessment for the extension of hot water pipelines, technology, project management, legal support, work schedule Human: technical engineers, networks operators, service and maintanance staff, salesmen, project designers, financial experts, managers, IT specialists Key activities Analysing of current situation in the region - identifying of heat demand and assessment of sources that cover this demand. We found out that there are old inefficient gas and biomass sources which are utilized for just 46%. Approximately one thousand households use old local fossil fuel boilers which cause worsened air quality. It is necessary to optimize the heat production process. Design of more environmentally friendly solution it is needed to replace the old sources for new modern ones, overhaul biomass boiler, strengthen the current system for the new CHP gas unit and extend the district heating network to the near-by houses. Connection of new customers presentation of our intentions to the new potential customers and convince them to change their old source of heating and explain benefits of district heating system. Building, operation and maintanance of the new heat generation source and hot water pipelines. Key partnerships Main partners are the local energy supplier and local municipality. Local energy supplier will ensure design of the new

10 solution, negotiation with producer of CHP gas boilers, building of hot water pipelines and sale of produced heat and electricity to the new customers. Local municipality will negotiate with households, housing association, local businesses and private companies about new solution and benefits of connection to the district heating network. Cost structure Main investment costs: new CHP gas boilers, extension of hot water pipelines, infrastructure investment, material and work, Main operating costs: fuel (gas, biomass), electricity, ash disposal, water, emission fees, CO2 allowances, personnel costs, Results of the stakeholder meeting Date Nov 3, 2016 Participants Representatives of major heating producers and distributors from the Czech Republic and especially from Moravian-Silesian Region Following aspects were discussed: The conclusions and recommendations of Stratego project (WP2 and 3) were presented and also status of the work on the two concrete projects WtE incinerator near Karviná and Expansion of the DH system in Nový Jičín The current energy concepts of the Moravian-Silesian Region and the status of work on the new local energy policy The problem with local fossil fuel boilers that significantly pollute the environment. Attention should be paid to heat and electricity production from renewables, cogeneration and particularly industrial excess heat. There are large amounts of excess heat in industrial enterprises and it is necessary to find ways of using it The WtE Karviná project, its risks and possible future solutions. Participants also discussed landfill issues and political aspects in the region The future of district heating and cooling system Input into the local heating and cooling plan Moravian-Silesian region currently has not any action plan for heating and cooling. There is only obsolete Energy Policy of 2004, which needs to be assessed in accordance with Act No. 406/2000 Coll. on energy management and on the basis of the evaluation will be possible to formulate proposals for change. The most recent assessment was carried out in 2009 and it highlighted the need to examine the possibilities of using renewable energy sources and cogeneration. New action plan for Moravian-Silesian region is going to be done in September. The situation has been discussed with the institutions as the Regional Authority of MSR (Krajský úřad Moravskoslezského kraje), the leading energy suppliers (Veolia, ČEZ), industrial enterprises (Arcelor Mittal, EVI), the Regional Energy Agency, Moravian-Silesian Energy Cluster, Technical university (VŠB-TU Ostrava), National Centre for Energy Savings and others. Ostrava and surrounding areas are densely covered by DH system (Ostrava 97 %, Havířov 99 %, Karviná 99 %,). There is a very little opportunity to extend DH system. Moravian-Silesian region is an industrial region where we find the coal mines, iron and steel production, chemical production, metallurgy, paper mills and heavy industry. As a big opportunity for intervention to improve the current situation we have identified utilization of excess heat from the industry, replacement of old fossil fuel sources for new greener ones and building the WtE incinerator to solve the problem with waste in the region. We have offered our support to the regional authority in preparation of regional heating and cooling plans. Based on mapping and defining of priority areas we submitted to the local authority our recommendations as for example to

11 replace obsolete fossil fuel boilers for the efficient district heating installations, increasing share of cogeneration and recovery of excess heat from industrial production, attention should be paid to the generation from renewable sources and also it is necessary to set motivational economic conditions for the energy recovery of sorted municipal waste. We would like to continue to communication with national and regional authority to enforce assessment of the potential for more efficient heating and cooling projects even in other regions.