Community Integrated Energy Mapping Feasibility Study in Alberta s Industrial Heartland and Strathcona Industrial Area

Transcription

1 Cmmunity Integrated Energy Mapping Feasibility Study in Alberta s Industrial Heartland and Strathcna Industrial Area June 2014 Funded by

2 EXECUTIVE SUMMARY The Cmmunity Integrated Energy Mapping Feasibility Study btained data frm 17 industrial cmpanies in the Strathcna and Heartland Industrial Areas near Edmntn, Alberta t understand the energy flws and assciated waste energy within the regin. An understanding f the energy types, amunts, qualities, tempral variability and gegraphic cnstraints f this energy is essential fr the develpment and implementatin f a business case fr reginal energy integratin slutins. The need fr Canada (and Alberta) t find and explit all efficiency pprtunities is highlighted by a recent US Natinal Academy f Sciences reprt 1 which nted that Canada s energy use per dllar f GDP is ~1.5 times higher than that f the US, and ~tw times higher than Japan, Germany, and the UK. T remain cmpetitive, Canada must becme mre energy efficient. Becming mre energy efficient will reduce Alberta s greenhuse gas (GHG) emissins, which has an envirnmental benefit while als imprving industry prductivity and cmpetitiveness, thereby creating mre vibrant Alberta cmmunities. The prject team, which included C3 (frmerly Climate Change Central), Alberta Innvates Technlgy Futures (AITF) and the Alberta Industrial Heartland Assciatin (), fcused the study n the Heartland and Strathcna Industrial Areas. The Heartland regin, nrtheast f Edmntn, Alberta includes five municipal districts while the Strathcna Industrial Area is situated between Edmntn and Sherwd Park. Bth industrial areas are hme t apprximately 40 cmpanies in ttal acrss a variety f sectrs primarily prducing and prcessing il, gas, and petrchemicals, as well as advanced manufacturing. Over the past several decades, these areas have grwn int Canada's largest hydrcarbn prcessing regin. Cmpanies that participated in the study include Agrium, Air Liquide, ATCO Energy Slutins, Keyera Energy, Suncr Energy, Western Hydrgen, Ri Tint Alcan, Nrthwest Redwater Partnership, Veresen, Sulzer Metc, Sherritt, Umicre, Keyera Alberta EnvirFuels, AltaSteel, Air Prducts, Shell Sctfrd Manufacturing Centre, and Plains Midstream. The wide industrial mix and prximity t municipalities helps t ensure that the methds develped in this regin can be applied t ther industrial parks and regins acrss Canada. Prject funding was prvided by Natural Resurces Canada and the Alberta Industrial Heartland Assciatin. 1 Natinal Academies Press, Real Prspects fr Energy Efficiency in the United States, Figure 1.1.1, 1

3 Between May 2013 and June 2014, the prject team cmpleted the fllwing activities: Secured sufficient industry stakehlder participatin frm the ~40 cmpanies in the Strathcna and Heartland industrial areas t generate useful results; Secured access t apprpriate data n energy supply and demand frm participating industrial sites, alng with cnfirming high-level infrmatin n the majr industrial prcesses ccurring n each site; Validated the types, quality, quantity, and variability f energy flwing acrss these industrial sites t better understand verall reginal energy availability; Reviewed similar industrial parks arund the wrld t identify lessns learned and best practices; Cmpleted a technlgy review f existing and emerging technlgy slutins regarding recvering surplus energy and transferring it between sites r even utside the bundaries f this heavy industrial area t adjacent future light industrial r residential develpment; Built trust amng participant cmpanies, lcal municipalities and ther relevant rganizatins acrss the greater Heartland regin t enable subsequent phases f wrk t prceed; Develped a value prpsitin fr implementatin, based n study results, f viable pprtunities that wuld achieve reginal energy efficiencies; Established a business case fr expanded waste energy mapping in ther regins f Alberta and Canada. While this is the first reginal industrial energy mapping study cmpleted in Canada, energy mapping is dne in ther parts f the wrld. A glbal review f industrial parks demnstrated that three critical factrs must exist fr stakehlders t even begin the first phase f this lngterm transfrmatin: 1. A cnvincing business case must exist that indicates ways t reduce csts r generate new revenue, and these actins can actually be undertaken by lcal businesses; 2. The scial license t achieve efficiencies exists meaning that the plicy r regulatry barriers t achieving efficiencies can be vercme, and cmmunities ptentially affected by the initiative endrse the activities; 3. The use f prven technlgy within the prcesses and equipment needed t enable resurce synergies must exist, have been prven t wrk meaning it has lw implementatin risks fr the cmpanies. The study revealed a significant amunt f waste heat exists in the Strathcna and Heartland industrial areas. Gegraphically, the waste heat was clustered int three heat islands (see Figure 1) acrss the tw industrial areas. These gegraphic limitatins have implicatins fr the feasibility f using the waste energy n a reginal basis. While the results cntain many subtleties described in the full reprt, the study identified: 2

4 293 MW f sensible waste energy, f which: 64 MW cmes frm lw pllutant exhaust stacks with temperatures between 230 and 1100 C; 85 MW cmes frm lw pllutant exhaust stacks with temperatures between 120 t 230 C; 144 MW cmes frm clers and cmpressrs with a temperature between 80 and 230 C. It shuld be stressed that these results are nly fr the 17 participating cmpanies. Sme cmpanies knwn t have significant amunts f waste heat did nt participate in the study. Further, nt all participating cmpanies reprted n all f their majr waste heat streams (e.g., a few nly reprted n exhaust stacks, but nt cling twers). Finally, lwer temperature cling streams between 20 and 80 C have been excluded due t the inherent challenges f repurpsing such lw temperature heat. Thus, the results abve are cnservative relative t the actual waste energy available in these industrial areas. Fr each heat island, assuming that 33% f this ttal available waste energy culd be captured and repurpsed, the resulting 97 MW f waste energy culd theretically be used t: Heat 14,700 average hmes 2 ; Generate 5 MW f pwer - enugh t pwer 5,100 hmes 3 ; Reduce CO2e emissins in the regin by ~147,000 tnnes 4. 2 Assuming that heating a huse requires 160 GJ f natural gas. 3 That 20-30% f the waste energy (depending n temperature) culd be cnverted t pwer, and that a huse requires 7,800 kwh f pwer a year. 4 Based n NRCAN emissin reductin factrs ( 3

5 Figure 1: Aggregate summary f the amunt f ptentially recverable waste heat frm exhaust stacks and clers and cmpressrs acrss the heat islands identified in the tw industrial areas. Energy surces which had high levels f pllutants r ther assciated risks are NOT included in this summary. The diameter f each red circle is 10 km. Given the significant amunts f waste heat available, there are a number f pprtunities within these energy islands that warrant further investigatin and shuld be cnsidered in the future. These include: Electricity generatin frm waste heat streams by ruting the mid-grade waste heat identified in this study t technlgies such as Organic Rankine r Kalina Cycle systems. Natural gas pressure letdwns that result frm the large amunts f natural gas cnsumed in each f these industrial areas culd be used t generate electricity. High temperature energy surces identified culd be sufficient t supprt the installatin f third-party perated pwer generatin systems n selected sites. Reginal Steam Utilities shuld be explred as a way t increase the verall level f steam security n industrial sites, making it less likely that an interruptin in steam supply wuld trigger a site shutdwn. Such utilities culd incrprate COGEN and such a utility wuld als lwer the capital csts f new industrial sites lcating in the regin. 4

6 Heating f intermediate prduct tanks by using waste heat frm primary peratins. Redevelpment pprtunities within sites and between sites represent a significant pprtunity fr COGEN and pssibly even sub-reginal steam systems if ways can be fund t lcate ther industrial sites clse t these plants. District heating systems in neighbring cmmunities are presently challenging given the large distances between the heat surces and neighbring municipal develpment; and given that sme f the surrunding municipal develpment is lw-density, singlefamily huses. Further cllabratin with municipalities neighbring these industrial areas is needed t drive future develpment with the characteristics needed t take advantage f the identified energy resurce. The knwledge generated by this reginal industrial energy mapping study suggests a number f key recmmendatins which are critical t enabling the next phase f wrk which wuld fcus n implementatin t achieve meaningful results. Third-party led engagement f industry and gvernment is needed if implementable slutins are t be realized. Sites with significant amunts f waste heat need t be engaged t determine their interest level and ability t explre the variety f use ptins identified fr this resurce, and similarly sites which culd use this heat need t be identified and engaged. Prvincial and municipal levels f gvernment are als key, given their ability t create regulatry r ther types f incentives. Such engagement is critical, given the many significant scial barriers which must be vercme fr waste heat in this regin t be repurpsed. Create a business case fr develping reginal utilities (regarding steam and water) which wuld enable existing and future cmpanies t simply tap int this utility, thereby reducing capital expenditures and the number f prcesses cmpanies need t perate n their site. Explre the impact f varius incentives fr achieving energy efficiency imprvements and GHG reductins. Wrk with gvernment, and existing industry and cmmunity rganizatins t create a dedicated prgram fcused n dealing with the scial and technical innvatin barriers facing these industrial areas. Pssible Prgram fcus areas culd include: finding ways t break dwn the infrmatin barriers between cmpanies, remving the risks assciated with trying t achieving greater symbisis acrss cmpanies, reducing the risks f implementing new technlgies n industrial sites, strategically identifying the best ways imprve efficiencies and imprve verall cmpetitiveness f the regin; r scping ut hw these areas culd be strategically psitined t attract ther industries and increase industrial diversity. Explre the ptential fr viable district heating ptins in Strathcna (which sits between Sherwd Park and Edmntn) r in the Heartland near Ft Saskatchewan. 5

7 Publicize the results f the study acrss industrial, cmmercial, manufacturing and gvernment sectrs Scale the wrk t ther industrial areas in Alberta and the rest f Canada. In cnclusin, the results f the Cmmunity Integrated Energy Mapping Feasibility study indicate a psitive value prpsitin fr further industry and gvernment engagement in implementatin actins that reduce GHG emissins, imprve cmpetiveness, enhance efficiency and cntribute t ecnmic diversificatin. Fr infrmatin regarding this reprt, implementatin effrts in Alberta s Industrial Heartland r t explre reginal waste energy mapping in yur area, please cntact CMC Research Institutes ( r call