Assessing Wood-Based Synthetic Natural Gas (Bio-SNG) Technologies

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1 International Energy Workshop, Cape Town, 28 th June 2006 Assessing Wood-Based Synthetic Natural Gas (Bio-SNG) Technologies Thorsten F. Schulz L.Barreto, S.Kypreos, S.Stucki Energy Economics Group Paul Scherrer Institute (PSI) Switzerland Thorsten F. Schulz IEW

2 Methanation Plant η Bio-SNG = 0.55 η Heat = 0.10 Thorsten F. Schulz IEW

3 Reference Energy System Resource Availability and Price, Primary Energy Gas Grid Refineries Power & CHP Plants Heat Networks (Local & District) Marginal Costs H 2 Production Final Energy Capacities Agricultural Sector Commercial Sector Residential Sector Transportation Sector Industrial Sector Emissions Useful Energy (Demand) Residential Heat Energy for Mobility Process Heat Illumination Commercial Cooling Energy Flow Demand Energy Service Heated Rooms Person Kilometres Chemicals Illuminated Area Air-conditioned Workplace Thorsten F. Schulz IEW

4 Bio-SNG Implementation Biomass Methanation Plant Bio-SNG Transportation Sector Residential Sector CHP Plant Electricity and Heat All Sectors Thorsten F. Schulz IEW

5 Scope of the Analysis a) Baseline : 50 US$2000/bbl in 2050 b) Scenarios Oil Price : up to 130 US$2000/bbl in 2050 Bio-SNG Subsidies : up to 10 US$2000/GJ Combined Oil Price & Bio-SNG Subsidies Thorsten F. Schulz IEW

6 Biomass 2000 Total theoretical biomass potential ~ 100 PJ Room heating 10% Automatic firing 7% Other uses 2% Not used theoretic Unused theoretical potential potential 81% 81% Thorsten F. Schulz IEW

7 Baseline 1,600 Primary Energy Consumption [PJ] 1,400 1,200 1, Unused Biomass Potential ~ 80 PJ Unused Latent Heat Geothermal Other Renewables Hydro Nuclear Electricity (net exports) Coal Oil Natural Gas Biomass Thorsten F. Schulz IEW

8 Scenario Sensitivity Analysis Baseline Primary Consumption [PJ] Biomass for Methanation Oil Price in Subsidy Oil price in 2050 [US$2000/GJ] Subsidy [US$2000/bbl] Threshold Thorsten F. Schulz IEW

9 Oil Price Primary Biomass Consumption [PJ] Methanation Plant (Bio-SNG totransportation Sector) Methanation Plant (Bio-SNG to Residential Sector) Methanation Plant (Heat to All Sectors) CHP (>2 MWel Gasification) Conventional Biomass Technologies Oil Price in [US$2000/bbl] Thorsten F. Schulz IEW

10 Oil Price Transportation Sector 400 Final Energy Consumption [PJ] Bio-SNG Natural Gas Electricity Diesel Gasoline Avi. Gasoline Oil Price in [US$2000/bbl] Thorsten F. Schulz IEW

11 Bio-SNG Subsidy Primary Biomass Consumption [PJ] Methanation Plant (Bio-SNG totransportation Sector) Methanation Plant (Bio-SNG to Residential Sector) Methanation Plant (Heat to All Sectors) Conventional Biomass Technologies Subsidies in [US$2000/GJ] Thorsten F. Schulz IEW

12 Conclusions A threshold for the penetration of wood-based synthetic natural gas technologies is clearly identifiable The use of bio-sng in the transportation sector has a larger potential than in the residential sector Synergies between bio-sng and natural gas could be exploited Thorsten F. Schulz IEW

13 Additional: Selected Resource Prices Baseline Natural Gas [US$/GJ] Crude Oil [US$/GJ] Crude Oil [US$/bbl] Biomass Price [US$/GJ] Low Price Medium Price High Price Thorsten F. Schulz IEW

14 Additional: Methanation Plant II Total Efficiency Main Product Efficiency Thermal Efficiency Capacity Investment Costs Fixed O&M Variable O&M Plant Factor Lifetime Starting year Costs Costs [%] [%] [%] [MW] [US/kW] [CHF/kW] [Rp/kWh] [hours/a] [a] [%] input input input input Discount Rate Thorsten F. Schulz IEW

15 Additional: Chemical Reaction Methanation Air Gasification CH1.43 O O2 CO H2 Water Vapor Gasification CH1.43 O H2O CO H2 Methanation CO + 3H2 CH4 + H2O CO + H2O H2 + CO2 2CO + 2H2 CH4 + CO2 Thorsten F. Schulz IEW

16 Additional: Bio-fuel Production from Wood Wood Chips Methanation Fischer-Tropsch Synthesis Natural Gas T&D Diesel T&D CNG ICE Car Diesel ICE Car Thorsten F. Schulz IEW

17 Additional: CHP Production from Wood Methanation Natural Gas Distributed CHP Electricity Wood CHP (<2 MW) Gasification Short-Distance District Heating Heat Electricity Wood Chips Wood CHP (<2 MW) Combustion Short-Distance District Heating Heat Electricity Wood CHP (>2 MW) Gasification Long-Distance District Heating Electricity Heat Wood CHP (>2 MW) Combustion Electricity Thorsten F. Schulz IEW

18 Additional: Heat Production from Wood Methanation Gas Heating SFH Heat Wood Chip Heating (50 kw) Wood Chips Wood Chip Heating (300 kw) Short-Distance District Heating Heat Wood Chip Heating (1000 kw) Wood Pellets Production Wood Pellet Heating SFH Heat Co-Combustion in Gas Turbine Heat Pump SFH Heat Thorsten F. Schulz IEW