PITAGORAS project. General overview and main results

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1 XX/XX/2017 PITAGORAS project General overview and main results Sustainable urban Planning with Innovative and low energy Thermal And power Generation from Residual And renewable Sources

2 Efficient integration of industrial parks into city districts through smart thermal grids. Overall GOAL: To demonstrate highly replicable, cost-effective and high energy efficiency large scale energy generation systems that will allow sustainable urban planning of very low energy city districts. INDUSTRY: from energy CONSUMER to energy SUPPLIER

3 01 FRAMEWORK AND SCOPE

4 FRAMEWORK AND SCOPE 01 Energy scene and policies Cities: - Responsible for about 70% of the overall primary energy consumption - This share is expected to increase to 75% by 2030 (IEA, 2008c). The path set by EU policies is clear: Targets for 2020: - 20% cut in greenhouse gas emissions 1-20% increase of energy savings - 20% minimum share of renewables 2 Targets for 2030: - 40% cut in greenhouse gas emissions 1-27% increase of energy savings - 27% minimum share of renewables 2 In order to achieve those goals, development of low energy solutions for thermal energy supply to cities is one of the main needs of our society. Industries: - Responsible for wasting large amounts of valuable energy. - A 40% of the consumed energy in industries is lost as waste heat. - Thus, one of the sources with the highest potential nowadays is the recovery of waste heat. 1 Compared to 1990 levels. 2 Compared with the business-as-usual scenario.

5 FRAMEWORK AND SCOPE 01 Waste heat recovery European industry generates annually approximately TWh of waste heat, which is equivalent to the incident solar radiation in km 2 (approx.1/3 of the total area of Europe). Assuming that 50% of total available waste heat can be recovered would imply a potential of TWh of useful heat per year. This amount of energy is equivalent to million m 3 of natural gas. The use of this amount of waste heat for heating, cooling and power generation would entail saving more than 2.000TWh of fossil fuels, that is, a reduction in GHG emissions of about million ton CO2/year. Main industrial centres in Europe. Source: Main metal processing centres in Europe. Source:

6 FRAMEWORK AND SCOPE 01 Goals PITAGORAS aims at the efficient integration of industrial parks into city districts through smart thermal grids. Technologies and concepts are developed on two fields: 1) Medium temperature industrial waste heat recovery 2) Integration of renewable energy sources (RES) Both aiming at the same target: - Integration of sustainable energy sources into the networks supplying heat (and power) to cities. INDUSTRY: BEFORE Net energy consumer AFTER Consumer + Producer

7 FRAMEWORK AND SCOPE 01 The main breakthrough of the project is the overall system integration and optimization. All the technologies considered in the project are proven technologies; the focus is not on technological developments but integration: overall system conception.

8 FRAMEWORK AND SCOPE 01 Involved systems and concepts > Waste heat recovery system > Organic Rankine Cycle > Seasonal thermal energy storage > Solar thermal energy > Integration of new technologies, concepts and systems developed and state-of-the-art systems > Innovative tools for efficient energy management Construction of a Seasonal Thermal Energy Storage of 5700 m3 in Munich. Source: Solites Roof mounted solar thermal collectors. Source: Solid

9 FRAMEWORK AND SCOPE 01 Pitagoras consortium Project Coordinator PITAGORAS Project, co-funded by the European Commission, is framed into FP7-Smart Cities Programme The research leading to these results has received funding from the European Union Seventh Framework Programme FP7/ under grant agreement n ENER / FP7EN / / PITAGORAS. This publication reflects only the author s views and the Union is not liable for any use that may be made of the information contained therein.

10 02 PITAGORAS PLANTS Introduction

11 PITAGORAS PLANTS 02 Pitagoras plants 1) Brescia (Italy): Industrial waste heat recovery in a Steel Mill Recovered heat is used for power generation and district heat supply 2) Kremsmünster (Austria): Integration of a large scale solar thermal plant into an oil and gas industrial area Use of solar thermal energy, in combination with a large seasonal thermal energy storage (STES), as heat supply for the local DH network and process heat Current status 1) Brescia (Italy): Built and started up in 2016 Currently undergoing a monitoring and optimization campaign 2) Kremsmünster (Austria): Design phase completed Heat supply contract negotiated between the ESCO and the client Implementation postponed

12 PITAGORAS PLANTS - Brescia 02 Brescia context and framework The first Italian city developing a DH system (in the 1970 s), driven by the will of the municipality Heat supply to buildings, 70% of the heat demand of the city: - Installed capacity 2015 : 710 MW - Heat consumption2015: GWh/y - Total length: 663 km Energy sources of the net (2015): MW waste-to-energy MW multi-fuel CHP (coal and gas) MW natural gas boilers (gas boilers) Evolution of the energy mix of the city of Brescia: - From 100% fossil fuels in the 1950 s to 40% WtE - DH deployment played a key role on achieving it - Still potential (and willingness) to reduce the carbon footprint of the net (WtE) (CHP & gas boilers)

13 PITAGORAS PLANTS - Brescia 02 Brescia ORI MARTIN steel mill 9MW of industrial waste heat available for recovery Located very close to urban areas (gas boilers) ORI MARTIN steel mill (CHP & gas boilers) (WtE)

14 PITAGORAS PLANTS - Brescia 02 Brescia Waste heat revalorization plant Waste heat is recovered from the electric arc furnace (EAF) exhaust gas outlet, generating saturated steam. The steam carries the recovered heat, which is used for power generation and district heat supply

15 PITAGORAS PLANTS - Brescia 02

16 PITAGORAS PLANTS - Brescia 02 Demonstration plant consisting of the waste heat recovery unit, a steam accumulator (in order to smooth the steam supply), and ORC module and the district heating substation

17 PITAGORAS PLANTS - Kremsmünster 02 Kremsmünster context and framework 65% of thermal energy consumed in the city covered by DH ( 20 GWh/year). Main heat sources: CHP plant for electricity supply of an oil and gas company (RAG) Biomass heating plant Waste heat from a glass manufacturer Kremsmünster RAG is the Austrian oldest oil and gas company. 5km south of Kremsmünster RAG operates an oil and gas production facility = site for the Pitagoras plant (KRIFT) To cover the electricity demand of their facilities, they operate a gas fired CHP plant with a maximum power of kw e and 2650 kw th, covering around 75% of the DH supply of the city of Kremsmünster (15 GWh/year) RAG (demo site)

18 PITAGORAS PLANTS - Kremsmünster 02 Kremsmünster conceptual scheme Large solar thermal plant ( m 2 ) combined with seasonal thermal energy storage ( m 3 ) for DH heat supply and internal process heat consumption.

19 03 PITAGORAS PLANTS Description and results

20 Brescia pilot plant

21 RESULTS - Brescia 03 ORI MARTIN steel mill in Brescia

22 RESULTS - Brescia 03 ORI MARTIN: melting steel scrap in Electric Arc Furnace (EAF) 25-30% of the used power is lost as waste heat (exhaust gas stream) Potential for energy recovery efficiency increase The new plant allows to recover the waste energy contained in the flue gas of the EAF: Summertime operation (April-October): electricity generation with ORC Heating season operation (October-April): heat delivery to DH net

23 RESULTS - Brescia 03 PFD Process Flow Diagram Feed Water Tank WHB Steam Accumulator ORC unit MW e MW th MW th EAF DH system

24 RESULTS - Brescia 03 WHRB + Steam Drum Steam Accumulator ORC turbogenerator SCADA Heat substation for heat delivery to DH net

25 RESULTS - Brescia 03 Main technical data WHRU Heat exchange between flue gases and water. Very discontinuous process Average operating temperature: 500 ºC / 210 ºC (inlet/outlet). Nominal capacity: 16 MWth Expected thermal energy recovery: MWh th /year. STEAM ACCUMULATOR 150m 3 storage to handle fluctuations Operation pressure: bar(g) Operation temperature: ºC. Storage capacity of 6 MWh th. ORC ORC supplied by Turboden. Heat carrier: saturated steam. Working fluid: silicone oil (MM). Design net efficiency 17,5 %. Nominal net output power: 1,8 MWe. Expected electricity generation: MWh/year. HEAT DELIVERY TO DH NET Two equal steam-water heat exchangers + Flash Tank. Nominal capacity: 10 MW th. Expected thermal energy supply: MWh/year

26 RESULTS - Brescia 03 Performance of the plant Operation mode: ORC ( , 115h of operation) Average steam input to the ORC 6,8 MW Average net power output ORC 1,3 MW Average net efficiency ORC 19,3 % Heat input to the ORC 790 MWh Electricity output ORC 150 MWh Operation mode: District Heating ( , 4.280h of operation) Average heat input to district heating heat exchangers (steam) 5,2 MW Heat input to district heating heat exchangers (steam) 22,4 GWh Average heat output to district heating system 4,9 MW* Heat output to the district heating system 21,0 GWh The stated average power is calculated over the whole period of operation * The difference between the average and nominal power exists due to the fact that the waste heat necessary foer the nominal DH-output was not available during this first period of operation. In the future this numbers wil be improved by means of process optimisation

27 RESULTS - Brescia 03 Main technical challenge Main technical challenge is related to the discontinuity of the available waste heat. The EAF works as a batch process due to the melting phase and the tapping phase During the tapping phase the available waste heat and therefore the steam production is drastically reduced. Heat source highly fluctuating Steady heat load is preferable for the DH and ORC for their safe operation key component: steam accumulator to smooth the steam supply

28 RESULTS - Brescia 03 Discontinuous process Steam accumulator Recovered waste heat VS heat supplied

29 RESULTS - Brescia 03 Environmental impacts assessment Embodied impacts of the Brescia pilot plant for different scenarios depending on the type of steel used for the construction of the plant Impacts per produced energy: Electricity Heat <10 gco 2 /kwh e <1 gco 2 /kwh th Avoided impacts due to produced energy:

30 RESULTS - Brescia 03 Pitagoras/Brescia < 10 gco 2 /kwh e Estimates of life cycle GHG emissions (gco2eq/kwh) for categories of electricity generation technologies, including some technologies integrated with CCS. Source: SRREN (2011)

31 03 RESULTS - Brescia Main economic figures INVESTMENT Waste heat recovery system 6,4 Mio. ORC module 1,5 Mio. DH net connection 0,4 Mio. Miscellaneous (civil works and engineering) 0,8 Mio. Total Installation Cost 9,1 Mio Plant adaptation costs 1,1 Mio. Innovation costs 1,8 Mio. Total Project Cost 12,0 Mio. Investment subsidies: EC Pitagoras project * 2,5 Mio. COSTS Operation and maintenance costs 0,18 Mio. /a REVENUES ** Revenues from heat sellings 0,5 Mio. /a Savings electricity costs 0,4 Mio. /a * The posible incomes from the selling of White Certificates (the Italian incentive mechanism for renewable projects) are not included ** Estimated values for future operation of the plant (optimized and in regular operation) A first economic evaluation of the plant shows a payback period in the order of 12 years. The specific incentive mechanisms based on White Certificates that are in force currently in Italy reduce the payback time of the plant to 4-6 years.

32 RESULTS - Brescia 03 Main barrier economic - Investment payback times for the implementation of waste heat revalorization technologies are longer than 3-4 years (usual time frame acceptable by industrial players). - The most recent regulatory decisions taken in Italy reduce the incentives to ORC applications for waste heat recovery and some DH support has been significantly reduced - Incentives mechanism necessary to overcome this barrier. The new plant has been partially funded by the European Commission (the remaining part: internal company investment) - ESCO model could be an interesting alternative financial model (acceptance of projects with larger time for ROI than industrials)

33 RESULTS - Brescia 03 Business model and key success factors Awareness and willingness on both sides: 1) Municipality (Brescia) and DH operator (a2a) high engagement to improve the energy mix and reduce the carbon footprint of the city 2) Industry (Ori Martin) highly committed to energy efficiency and sustainability Business model: Public-Private Partnership (PPP): the DH system in Brescia is managed through a longterm concession (>30 years) between the Municipality and a2a (local DH utility) Support from the municipality: since the DH grid commissioning in 1972, the Municipality of Brescia has strongly supported its deployment, following the best available practices towards an efficient and low carbon footprint network Integrated approach, including long-term heat planning and following the best available practices and the use of local resources (waste-to-energy, industrial waste heat ) Implemented solutions allow competitive prices and a profitable business: - The payback of Brescia s DHC investments was 15 years, already achieved - Average price of DH is 70 /MWh (excluding VAT), similar or lower than natural gas (most common alternative)

34 RESULTS - Brescia 03 Benefits for all the stakeholders in the value chain: DH UTILITY: - Profitable business with a new energy source - Increase of the fraction covered by RES/waste leading to a greener business INDUSTRY: - Increase of energy efficiency of the industrial process products with lower environmental impact and greener image of the company - Effective business and financial model allowing the return of the investment through energy savings and new incomes due to energy sales CITY - Economy based on green energy - Step forward towards achieving the energy objectives (reduction of CO2 emissions, energy savings on fossil fuels consumption )

35 Planned plant for the city of Kremsmünster

36 RESULTS - Kremsmünster 03 Layout for the Pitagoras plant A solar field of m2 ( m2 of gross area) and 300 m3 of buffer storage The high flow temperatures of the DH network ( 90ºC) reduces the possible solar energy gain to a high extent Integration of a STES: store the solar heat from summer to winter so that it can be used for heating purposes inside the oil and gas production facility that needs very low heating temperatures STES = an existing oil tank of 60,000 m3 of storage volume (that is no longer been used) will be reconverted into a STES Hydraulic concept for the integration of the solar thermal plant in KRIFT. Source: Solid Test field of 2500 m2 for different solar collector s testing and selection of best one for the large solar plant at Kremsmünster. Source: Solid

37 RESULTS - Kremsmünster 03 Simulations results on system performance For the variant is shown in the figure: No solar energy is fed into the DH net to avoid the high supply temperatures this heat sinks asks for Solar energy is used in the heat sinks with the lowest temperatures 56% of solar fraction Yearly solar net gain: 485 kwh/m2 Simulation results for the variant with a reconversion of one of the oil tanks into a STES. Solar system heat balance including a STES with m3 (one of the existing tanks) and reduced set point temperatures for the collector circuit. Datasource: Solites, Graphics: Tecnalia

38 RESULTS - Kremsmünster 03 Existing oil tank reconversion into STES Detailed statical calculation of the existing tank necessary to prove its suitability to be used as STES Most important issue: static stress, specially on the tank walls, caused by water stratification. It has to be proven that the entire storage construction can withstand that temperature stress on a long-term Additional challenge in this case: floating lid of the existing tank. The only feasible alternative that has been concluded for this specific case is to fix the lid on topic o the storage volume Reconversion solution for the existing tank of m3 to be used as STES. Source: Solites

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