Renewable Energy from the Bio Supply Chain

Transcription

1 Renewable Energy from the Bio Supply Chain Dr Jeremy Tomkinson September 2011

2 The UK s National Centre for Biorenewable Energy, Fuels and Materials An Independent not for profit company Mission The NNFCC is committed to the sustainable development of markets for biorenewable products. We promote the benefits of biorenewable energy, liquid fuels and materials for enhancement of the bioeconomy, environment and society. Company Activity Advisor to UK Government Commercial Consultancy Member Information Service

3 The Bio Economy Chemicals/ Reagents Polymers/ Fibres Bio resources Fuels Energy

4 Others feedstocks Food wastes, agricultural wastes, grains, sugars, oils biomass thermochemical / biochemical processing Fuel Sales ethanol, synthetic diesel, synthetic aviation fuel fuels & energy wastes & other biobased feedstocks Direct production of chemical intermediates materials end of life materials Materials Sales e.g. Food packaging, bags, toys, housewares, bottles, windows, medical applications, tubing, clothing, carpets, insulation, coatings, paints, adhesives Recycle ethanol, naphtha chemicals ethylene derivatives eghdpe, LDPE, vinyl acetate, ethyl benzene

5 The Renewable Energy Directive Mandatory EU target of a 20% share of renewable energies in overall energy consumption by This target covers electricity, heat and transport fuels. National targets for share of renewable energies in overall energy consumption. UK target is 15% by This is about 240 TWh. Interim targets also set. The UK s interim targets are 4.0% for 2011/2012, 5.4% for 2013/2014, 7.5% for 2015/2016 and 10.2% 2017/2018.

6 How the target might be met Biomass would account for around 60% of renewable heat and 15% of renewable power. This means increasing biomass power from 6 TWh to 18 TWh and biomass heat from 4 TWh to 55 TWh.

7 Government Instruments Several Instruments already available Renewables Obligation (RO) - Electricity production over 5MWe Feed In Tariff (FIT) - Electricity production below 5MWe, includes Anaerobic Digestion (AD) for power Renewable Transport Fuel Obligation (RTFO) - mandates the use of biofuel in increasing volumes - soon to be subsumed in the RED mechanism RHI Renewable Heat Incentive, includes AD for on site combustion, biomethane injection to the gas grid, district heating and CHP from biomass wastes and energy crops

8 Supporting Renewable Power The Renewables Obligation The Renewables Obligation is the main incentive for renewable electricity production. Law recently extended to 2037 with indicative annual growth levels % 4.3% 4.9% 5.5% 6.7% 7.9% 9.1% 9.7% 10.4% 11.4% 12.4% 13.4% 14.4% 15.4% Now allows for different processes to be financially rewarded according to efficiency levels and type of feedstock Proposed banding of ROC s Co-firing of non-energy crop biomass 0.50 Co-firing of energy crops, Energy from waste with CHP 1 Dedicated regular biomass (>90% biomass) co firing of energy crops with CHP 1.5 ROC s per MWh Advanced conversion technologies (including AD), dedicated biomass burning energy crops (with or without CHP), dedicated regular biomass with CHP, gasification 2 8 Source: REA, 2008

9 Value of feedstock for RO and RTFO RO (Electricity) 1 tonne of dry biomass at 30% energy efficiency will yield about 1.6 MWh of electricity approx sale price ( per MWh) 80 ROC price ( approx per ROC) - multiply this by 1, 1.5 or 2 depending on feedstock and technology used RTFO (Fuel) 1 tonne of dry biomass at 45% energy efficiency will yield about 270 litres of synthetic diesel (equivalent 2.4 MWh) 137 approx sale price (51 p/l at 1.35/L pump price) Buyout up to 80 (270L x 0.3 /L, 81 could multiply by 2 for advanced biofuels )

10 FQD partner to the RED Minimum 6% reduction in GHG emissions from road transport by 2020 (2010 base). biofuels vehicle efficiency measures Refinery improvements (e.g. Use of renewable hydrogen) Applies to: All road transport Inland waterways Non-road mobile machinery Diesel for trains. Electricity used by trains is excluded.

11 Are 1 st Generation Fuels Enough? Putting the 10% RED target by 2020 into context 360 mtoe road fuel demand in EU27 by 2020* 62% diesel (260 bl) 38% petrol (175 bl) 10% renewable fuel needed by energy content 35 mtoe biofuel (1 mtoe electric, biogas etc taken into account) 22 mtoe biodiesel (28 bl) 13 mtoe bioethanol (25 bl) * Ref Renewable Energy Assoc. petrol bioethanol biodiesel diesel

12 Quantifying the sustainable, EU-produced biofuel potential 35 mtoe biofuel required 8 mtoe biodiesel potential (11 bl) 22 mtoe 1 st generation bioethanol potential (43 bl) 5 mtoe gap (approx 10 bl) gap biodiesel potential Greater potential to meet the 2020 target with domestic (EU) bioethanol than with biodiesel (extra provided from increased yields and use of unused land) Gap filled by imports and advanced biofuels Europe needs to either find a way to make more mid distillate substitute, use higher ethanol blends (E85) or increase petrol / ethanol use Alternative near term resources? bioethanol potential

13 EU Trade Balances - Issues for mid distillate diesel fuels

14 Biofuel cost structure Rapeseed oil fob dutch mill $/te FAME -10C Rotterdam barge fob 1390 $/te FAME 0C Rotterdam barge fob 1240$/te Gasoil 10ppm (diesel) NWE barge 765$/te So FAME 0 is now $475 ( 293) more expensive than diesel fuel FAME -10 (RME) mirrors rapeseed oil price processing margin for virgin oils very weak. RTFC s around 23-25pp certificate tracking the diesel / FAME differential Therefore for a 250KT plant M in cert revenue ( 125M for advanced) Ethanol currently a lot softer price than FAME - $880/te cif rotterdam ex duty.. Gasoline cif NWE - $796/te. So blending ethanol a lot cheaper than blending FAME Dec 2010 Argus Petroleum

15 NNFCC Anaerobic Digestion

16 What is Biogas and Biomethane Biogas contains typically 65% methane, 35% CO 2 either from AD, Waste water and Landfill Biomethane is either; biogas upgraded with the CO 2, H 2 S containing around 98% methane or bio Synthetic Natural Gas (biosng) from wood and dry wastes which is identical to natural fossil methane Both technologies are complimentary as one uses wet wastes eg food, the other dry feedstocks like wood and demolition wastes However the UK currently has insufficient compression outlets for use as a renewable vehicle fuel needs ca 250 bar

17 Furnace/Boiler Methane (biosng) Engine/Turbine Fuel cell Gasification syngas direct combustion chemical synthesis Fischer Tropsch Ethanol (fermentation) Mixed alcohols synthesis Hydrogen DiMethylEther (DME) Diesel/ jet fuel n-paraffins Heat Power Fuels chemicals and materials Methanol synthesis MTO/MOGD Formaldehyde Carbon monoxide Acetyls Ammonia Fertilisers

18 Bio Synthetic Natural Gas Bio Synthetic Natural Gas (bio SNG) Converts (dry) biomass e.g. energy crops, wood wastes and renewable plastics to methane through gasification and methanation Efficiencies markedly increase if gas pumped directly onto gas grid and electricity generated at large scale CHP plant with high heat demand Green gas into peoples homes where heating efficiencies exceed 90% No expensive modifications required to allow consumers to benefit from renewable heat 18

19 Gas grid Gas sent to 7 reception points from 100+ offshore fields. LNG delivered by sea to the Isle of Grain. The National Transmission System feeds gas to power stations, large industrial consumers and the Local Distribution Zones (LDZs) that supply consumers. The 12 LDZs are managed within 8 distribution networks. Four of these are owned by National Grid, the others by Scotia Gas Networks, Wales and West Utilities and Northern Gas Networks.

20 Biomethane vehicles are available today VW Caddy

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