9 th International Scientific Conference on Energy and Climate Change 12 14 October, Athens, Greece Feasibility assessment of geothermal pellet production from agricultural residues in medium-sized municipality in north Greece Konstantinos A. Lymperopoulos Mechanical Engineer NTUA, MSc, PhD Candidate Prof. Pantelis N. Botsaris Democritus University of Thrace School of Engineering Department of Production Engineering & Management Faculty of Materials, Processes and Engineering Mechanical Design Laboratory
Contents Background of the Project Biomass potential from agricultural residues Pellet production process Supply chain of pellet production Cost analysis of pellet production Concluding remarks 2
Background of the Project 3
Background of the Project Municipality of Alexandroupolis Municipal Energy consumption of 2013 : 19.452 MWh Total energy consumption of 2013 : 983.828 MWh Building stock of more than 100 buildings Municipal fleet 19% Public lighting 16% Municipal buildings 45% Biomass 0% Natural Gas 7% Diesel 18% Gasoline 1% Xanthi; 6608,3 Alexandroup olis; 5620,63 Municipal facilities 20% Heating Oil 29% Electriciy 45% Drama; 7500,53 Kavala; 7779,54 Heating oil consumption of municipal buildings (MWh) 30% CO 2eq by 2020 4
Biomass potential from agricultural residues Methodological approach: STAGE A STAGE B STAGE C STAGE D Identification of available biomass types Collection and processing of the available data Theoretically available biomass potential Technically available biomass potential - Ligno-cellulosic - Herbaceous - Cultivated area - Annual crop production - Average values between 2005-2011 - ELSTAT, OPEKEPE - Residue per product ratio - Technical, environmental and logistics restrictions - Energy content of biomass - Pellet production process efficiency - Produced pellet energy potential 5
Biomass potential from agricultural residues Olive Cultivated Area (ha) Residues (dry t) Almond, Walnut, Pear, Apple, Peach, Apricot & Cherry Vineyard Soft wheat Hard wheat 4.970,68 250,18 586,76 489,80 602,57 1.240,47 129,62 39,52 1.646,88 12.763,14 507,08 972,85 2.799,24 1.766,49 2462,97 645,61 170,12 2.272,29 Barley Cotton 1.400,61 Sunflower Tobacco, Oat, Rice 10.735,78 2.201,91 14.735,04 Sugar beet Maize Technical biomass potential : 226.255,59 GJ/y 6
Pellet production process Wood pellets Olive tree pruning residues Non-woody pellets Hard wheat, cotton, sunflower, sugar beet, maize Can not satisfy EN ISO 17225-2 standards (Garcia-Maraver et al. 2015) Raw biomass with low lignin content affects the pelletizing process (Passalacqua et al., 2004) Mixed biomass pellets A or B (EN ISO 17225-6) 7
Pellet production process Typical pellet production process layout Agricultural residues Mixing Unit capacity factors: 1. Quantity and quality of raw biomass 2. Total annual pellet demand 3. Technical properties of the market technology for pellet production 4. Technical and energywise limitations of geothermal energy use 31,5 m 3 /h of 90 ο C geothermal fluid Geothermal Drying: 2 x Belt dryer 20.000 m 3 /h Drying surface >15m 2 500-600 kg/h 450.000 kwh/year 39.405 m 3 of geothermal fluid per year 8 Demand: 1.500t/year Capacity: 1,2t/h
Supply chain of proposed pellet production plant Collection of olive tree pruning Oct to Feb Grinding on site Region of Marki Harvesting/ collection of agricultural residues Implementation by MoA Jun to Dec Bailing Region of Feres and Alex/polis Transportation of raw biomass Ave dist 27,6 km Truck 10t Immed. After collection Transportation of raw biomass Ave dist 25 km Platforms of farmers and truck 10t After collection Quality check of raw biomass Moisture and mass measures During delivery Implementation by farmers and MoA Implementation by MoA Storage of raw biomass By each raw biomass type Distribution of pellets Municipal buildings Ave dist 17 km Position of the unit selected according to geothermal energy Not center weighted 9 Production of pellets Storage of pellets May to Sept 1.500 t/y Packs of 25kg Quality control before packaging
Cost analysis of pellet production Building & other facilities 600 m 2 metallic building Landscaping Grid connection Geothermal District Heating network connection Drying 2 x belt dryers with fan of 16kW Auxiliary equipment Grinding Portable pruning shredder 6-8 m 3 /h Straw shredder 1,2 t/h, 15 kw Hammer mill 1,2 t/h, 30 kw Pelletizing Mixing machine 10 kw Pelletizer 1,2 t/h, 25 kw Cooling Cooling machine (counterflow) Packaging and other equipment Silos 60 m 3, packaging machine Conveyors, sieving machines, fans, biological additive feeding system, conditioning VDI 2067 guideline is followed: Capital and maintenance costs Consumption costs Operating costs Other costs Personnel 4 persons each shift 2 persons for administration Raw biomass Herbaceous 1.694 t/y (w.b.) Olive tree pruning 1.060 t/y (w.b.) Harvesting and collection Transportation 25km & 27,6km Trucks & Unloaders 10
Cost analysis of pellet production Investment Costs ( ) Capital Costs ( /y) Consumption Costs ( /y) Maintenance Costs ( /y) Operating Costs ( /y) Other Costs ( /y) Total Costs ( /y) Specific Costs ( /t) Buildings and 150,000.00 15,270.00 750.00 1,500.00 17,520.00 11.68 other facilities Project 50,000.00 5,840.00 5,840.00 3.89 development Geothermal 220,000.00 25,696.00 2,250.00 4,400.00 2,200.00 34,546.00 23.03 drying Grinding 145,000.00 16,936.00 6,085.94 2,900.00 1,450.00 27,371.94 18.25 Pelletizing 250,000.00 29,200.00 5,289.06 11,750.00 2,500.00 48,739.06 32.49 Cooling 15,000.00 1,752.00 796.88 300.00 150.00 2,998.88 2.00 Storage & 65,000.00 7,592.00 398.44 1,150.00 650.00 9,790.44 6.53 packaging Auxiliary equipment 80,000.00 9,344.00 1,593.75 1,600.00 800.00 13,337.75 8.89 Personnel 67.065,00 67,065.00 44.71 Raw biomass 120,124.40 120,124.40 80.08 (herbaceous) Raw biomass (pruning) 17,910.00 17,910.00 11.94 Motorised equipment 165,000.00 19,272.00 1,724.40 20,996.40 14.00 TOTAL 1,140,000.00 130,902.00 154,448.46 24,574.40 67.065,00 9,250.00 386,239.86 257.49 11
Cost analysis of pellet production Drying costs: 15% (biomass) 18% (diesel) Breakdown of pellet production cost Breakdown of pellet production cost according to VDI 2067 Distribution cost is calculated at 19,90 EUR per distributed ton of pellets 12
Cost analysis of pellet production Sensitivity analysis 13
Cost analysis of pellet production Sensitivity analysis 14
Cost analysis of pellet production Entry data: Description Unit Value Pellet production t/y 911 Thermal energy of ΜWh/t 4.1 produced pellets Lifespan years 20 Buildings costs 150,000.00 Equipment costs 1,988,040.00 Project development 50,000.00 costs Consumption and /kwh 31.37 maintenance costs Inflation % 2.0 Operating costs /yr 70,865.00 Construction period months 9 Lending % 0 Equity % 100 Profit /ΜWh 123.16 Average increase rate of diesel price % 0.5 Cost benefit analysis Includes the cost for the replacement of 57 oil boilers (963.040 EUR) Includes consumption of diesel, electricity, maintenance of machinery and vehicles and other costs Personnel costs The of heating oil consumption in municipal buildings 15
Cost analysis of pellet production Cumulative cash flows Cost benefit analysis Cumulative cash flows (EUR) 4.000.000,00 3.000.000,00 2.000.000,00 1.000.000,00 - (1.000.000,00) (2.000.000,00) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 IRR: 10,19 % (over 20 years) IRR: 3,65% (over 10 years) NPV: 2.893.745 EUR Payback time: 8,2 y (3.000.000,00) 16
Concluding remarks Why not just buy raw (woody) biomass? It is simplifies and reduces the cost of the production process and vehicles procurement It reduces the raw biomass cost to 25,7% Why not just buy pellets of the market? Price of quality pellets is 260 /t to 320 /t Replacement of the oil boilers and supply of pellet of the market increases the economic indices Why not just install heat pumps? Cost of thermal energy is 0,07 /kwh th (not including capital cost) 17
9 th International Scientific Conference on Energy and Climate Change 12 14 October, Athens, Greece Thank you for your attention! Konstantinos A. Lymperopoulos klympero@pme.duth.gr Pantelis N. Botsaris panmpots@pme.duth.gr Democritus University of Thrace School of Engineering Department of Production Engineering & Management Faculty of Materials, Processes and Engineering Mechanical Design Laboratory medilab.pme.duth.gr