Biomass heating in Municipalities and Industries in the Netherlands. Ir. Kees W. Kwant

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1 Biomass heating in Municipalities and Industries in the Netherlands Ir. Kees W. Kwant

2 Contents Energy supply in the Netherlands Biomass availability Biomass boilers Heating Networks Financial Support - SDE+ (> 500 kw) - ISDE ( kw) Conclusion 2

3 Primary energy use

4 Gross final energy use (2012). Total is PJ. Shaded areas is electricity use within the sector

5 GHG emissions

6 Renewable energy production in NL TJ Heat Electrictity Transport

7 Results: About 70% realised with Bioenergy PJ

8 Biomass for Bioenergy use in Netherlands PJ biofuel cofiring biochp biogas EfWaste bioheat

9 Biomass Supply

10 Biomass Potential Type potential Biofuel 1 st generation crops Woody/ligno cellulosic crops Solid manure Liquid manure Straw/stubbles+ other residues agriculture Pruning/cuttings fruit+shrubs agriculture Waste Used fats and oils Road side verge grass Stemwood (fuelwood) Primary forestry residues Secondary residues wood processing industries Landscape care wood and wet biomass Total

11 Wood Supply in the Netherlands kton Stem wood material use Fuelwood stemwood Fuelwood residues Residues available Additional stemwood Additional residues

12

13 Certification

14 Prices of bio heat Traders and users of biomass estimate the prices for wood pellets on around per tonne and wood chips on around per tonne depending on the moisture content. Pellets: heat content is 18 GJ/tonne resulting in per MWh (ex. VAT) Chips: heat content is 7 GJ/tonne (50% moisture) to 12 GJ/tonne (20%) resulting in: 15/MWh (50%) to 27/MWh (20% moisture).

15 Heating Devices

16 agriculture business/commerce Biomass Fired Boilers in the Netherlands other agriculture business/commerce construction furniture industry wood industry

17 Biomass Heating plants Boilers for businesses Heating households Barbecue at house holds Weighed average and total Efficiency(%) 89% 59% 33% 64% Average power (kw) Full load hours Number Nominal power (MW) Heat generation (TJ) Final end use (TJ)

18 Emissions (CBS, 2014) Boilers for businesses Heating households Barbecue at househol ds Weighed average and total Efficiency(%) 89% 59% 33% 64% CO (mg/mj) PM10 (mg/mj) NOx (mg/mj) CxHy (mg/mj) CO (ton gross/year) PM10 (ton gross/year) NO x (ton gross/year) C x H y (ton gross/year)

19 District Heating

20 District Heating networks in the Netherlands: Large scale: 13 Rotterdam, Amsterdam, Almere, Purmerend, each 5000 consumers Small Scale: 6900, 300 owned by energy suppliers Expected: Growth biomass: 7% now -> 14% in 2030

21 Expected growth of heat from biomass

22 Price for heat from network Principle: Not more than else: - Custumer should not pay more than for natural gas heating Price determined by Minister throught ACM Price: - Connection: Heat: /GJ or 6.3 /MWh

23 Smart thermal grid Heat roundabout Industrial waste heat (70%) Geothermal heat (30%) Rotterdam The Hague area buildings in ha greenhouses 23

24 Example: Purmerend Heating General information Technology (e.g. in-house biomass boiler, biomass DH, etc.) Biomass Heating Installation and 2 natural gas fired auxiliary boilers Year of installation BHI: 2014, HWC1: 1982, HWC2: 2014 Net capacity of the biomass boiler(s) base load and medium load (if any) Net capacity of the fossil fuel back-up / peak load boiler (if any) 44 MW (heat) 90 MW (heat) 35 MW (heat) Type of fossil fuel Natural gas Total annual energy production from biomass Total annual energy production from fossil fuels ~ 260,000 MWh (heat) ~ 65,000 MWh (heat)

25 Purmerend Business Case Investment: 47 M - Loan: 50/50 BNG bank, Triodos bank, - Subsidy: > EIB: 1,8 M > RVO: 1 M Income: - 12 year Support by SDE+ scheme for 12 years - Sales of 6,29 /MWh fir 206,000 MWh Cost: Operations and Maintenance - Wood Supply, tons/year

26 Renewable Energy Directive (2009/28/EG)

27 Bioenergy crucial to achieve goals

28 The Netherlands: RE targets: RED: 2020: 14% 2014: 5,3%

29 Policies and Monitoring Renewable Power Renewable Energy Directive Monitoring - Final Energy Consumption: - PJe = PJth Substituted Resource Final End Use Monitoring - Not: Exergy - Not: Replaced fossil fuel PJe -> Does not stimulate efficient use of biomass PJth

30 Policies and Monitoring Renewable Heat Renewable Energy Directive Monitoring - Final Heat from Biomass in households: - Based on biomass input, not on heat output -> Does not stimulate efficient use of biomass Used Biomass Produced Heat Monitoring PJth

31 Netherlands Energy Agreement, 2013 Agreement between parties: - NGO - Energy sector - Industry - Government To realise 2020 targets

32 Netherlands Energy Agreement in points 1. Energy Savings: 1.5%/year 2. Upscaling Renewable Energy to 14% in 2020 (wind, bio) With a cap of 25 PJ on cofiring 3. Decentral local renewable power/heat by communities 4. Smart Energy Network 5. Employment (create jobs by 2020) 6. Energy Innovation 7. Financing by banks 32

33 Indicative Contribution of R.E. options Source Wind on see 3,1 27,0 60,0 Wind on land 20,6 54,0 63,0 Solar PV 0,9 11,6 12,4 Cofiring 6,1 25,0 25,0 Waste Incineration 13,3 11,7 12,0 Biomass CHP 3,5 13,6 18,0 Biomass Heat 19,0 31,6 34,1 Biofuels 18,0 35,6 34,6 Renewable Heat 6,1 36,3 46,3 TOTAL 105,5 261,6 335,4 Percentage R.E. 4,4% 14% 16% For Biomass: 2013: 59,9 2020: 117,5 2023: 123,7 Doubling the amount of biomass in 6 years 33

34 Competitive Support Scheme for Renewable Power and Heat: SDE + Support scheme with feed in tariff Netherlands

35 How does SDE+ work? 1. Feed in tariff premium 2. Premium based on average costs 3. Cost effective: compensation for fluctuation energy prices 4. Fixed for the duration of the project (8 15 years) For Cofiring: 8 years 5. Tenders in phases (auction system) 6. Budget to be contracted in 2015: 3.5 billion euro 7. Budget Paid by a levy on the energy bill of consumers

36 Premium Tariff based on additional costs Base amount Correction value year

37 SDE+ budget to support Renewables Increased budgets, - 8 billion in billion in 2017 Since 2012 also heat Increased support of heat SDE paid by levy on power bill of consumers M Allocated subsidy budget SDE Renewable Gas Renewable Heat Renewable Electricity Budget

38 Actual expenditure (contracts from the past)

39 Renewable Production supported by SDE PJ 45,0 40,0 35,0 30,0 25,0 20,0 15,0 10,0 solar Heat Solar PV Wind Hydro Geothermal Heat Biomass Heat Biomass Electricity 5,

40 Heat and power; Average feed in tariff prices paid( /MWh) 300,0 250,0 200,0 150,0 100,0 50,0 Biomass Electricity Biomass Heat Geothermal Heat Hydro Wind Solar PV solar Heat 0,

41 Basic tariff for heat in new SDE contracts Wood pellets: 54 /MWh Other >0,5 MWth and < 5 MWth: 51 Other > 5 MWth: 43 Avoided Cost: (grid power price) /MWh -> Support := Basic Tariff avoided cost: = 21 /MWh

42 ISDE: Investment support for small scale renewable heating (solar, HP, biomass) Subsidy: kw : (40) kw: 80/kW 110 Environmental request Above 500 kw: SDE+

43 Strict emission requirements Emissions Netherlands Nominal Efficiency 5-50 kw CO particles Organic compounds Nox [mg/nm3] [mg/nm3] [mg/nm3] [mg/nm3] Norm EN EN EN EN EN en EN Pellet boiler 85% Biomass boiler 89% Norm EN EN EN EN EN 14792

44 Subsidy request in june 2016: 46 M for projects, private Industries Pelletkachels Biomassaketels Warmtepompen Zonneboilers Majority of projects for heatpumps, households: half pellet boilers & furnaces

45 Future for Biomass Heating Weak public acceptance Not included in long term view Focus on High Temperature heating by biomass and Residual heat

46 Conclusion

47 Conclusion: Let s Implement it! 1. Heating with biomass is growing 2. Main market is heating of small offices, schools etc. 3. Slow growth in district heating 4. Financial support available by SDE+ 5. Public acceptance problematic - Emissions from old boilers, perceived health problems - Sustainable supply of biomass resource questioned

48 Thank you for your attention Questions?