Swedish experience of district heating, transportation and biomass

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1 Swedish experience of district heating, transportation and biomass Leif Gustavsson Linnéuniversitetet 3 oktober 2012

2 Global primary energy use in 2009 ( 500 Exajoule) Oil 33% Coal 27% Gas 21% Total fossil 81% Bioenergy 10% Nuclear 6% Other 3% Exa = Source: International Energy Agency, Key World Energy Statistics

3 Primary energy use in Sweden and the EU 2009 Source: Eurostat, online database,

4 Energy use in the EU Three typical applications EJ Transport Other Coal Gas Oil EJ Electricity and district heat EJ Housholds Mobile Large-scale stationary Small-scale stationary Eurostat data 4

5 Woody biomass (logging residues) harvest in Jämtland replace fossil fuels in non-mobile plants at different locations A system analysis from forest area to local (80km), national (600km) and international (1100km) large end-users Functional unit is 1 MWh of delivered wood chips at the local, national and international large end-users Data for forest residues based on experience in central Sweden 5

6 CO 2 balance when woody biomass replace fossil fuels in none-mobile plants at different locations 12 CO2-balance (tonne C/ha) Local National International Primary energy -2 Natural gas Oil Coal Source: Gustavsson et al, 2011

7 Objective We analyze the potentials of coproducing Bioelectricity Biomotor fuels Biopellets in district heating systems

8 References Gustavsson, L. and Truong, N.L., Coproduction of district heat and electricity or biomotor fuels. Energy, (10): p Truong, N.L. and Gustavsson, L., Integrated biomass-based production of district heat, electricity, motor fuels and pellets of different scales, Manuscript 2012 Gustavsson, L., Dodoo, A., Truong, N.L., and Danielski, I., Primary energy implications of end-use energy efficiency measures in district heated buildings. Energy and Buildings, (1): p

9 Value of cogenerated electricity and motor fuels equals to the lowest production cost of stand-alone plants

10 Analyzed heat load duration curve Using a heat load duration curve in Östersund, Sweden F Yearly heat load: 612 GWh F Peak demand: 160 MW Disttrict heat load (MW) Flue gas condenser Boiler - Biomass CHP plant - Biomass Boiler - biomass Day

11 Environmental taxation scenarios q No tax q Social cost-550ppm: carbon damage cost of $30/t CO 2 (Stern et al., 2006) q Social cost-bau: carbon damage cost of $85/t CO 2 (Stern et al., 2006)

12 Schematic diagram Optimization Reference condensing power plant Crude oil prices v $62/bbl v $93/bbl q q q DHS with conventional technologies Base load Medium load Peak load DHS with BIGCC technology q q q Base load Medium load Peak load DHS with intergrated motor fuel production Base load q q q Medium load Peak load Standalone motor fuel plants FUEL PRICE Taxation scenarios v No tax v Social cost-550ppm v Social cost-bau District heat

13 Production costs of standalone electricity ( /MWh) Technology No tax Social cost-550ppm Social cost-bau BIGCC BST CST CST with CCS FGCC BIGCC BST

14 Production costs of standalone biomotor fuels and fossil fuel prices ( /MWh) Motor fuel type No tax Social cost-550ppm Social cost- BAU Data source DME Boding et al DME Thunman et al DME Hansson et al DME Nyström et al Diesel Methane Thunman et al Methane Hansson et al Methane Nyström et al Fossil gas Methanol Boding et al Methanol Thunman et al Methanol Hansson et al Methanol Hamelinck and Faaij 2006 Gasoline

15 District heat production cost of integrated biomotor fuel production units No tax Social cost 550 ppm Social cost BAU Boiler - Fuel oil Boiler - Wood powder Boiler - Coal Boiler - Biomass CHP - CST CHP - BIGCC Fuel & heat plant - DME Fuel & heat plant - Methane Fuel & heat plant - Methanol

16 District heat production cost of integrated biomotor fuel production units and the most cost-efficient units No tax Social cost 550 ppm Social cost BAU Boiler - Fuel oil Boiler - Wood powder Boiler - Coal Boiler - Biomass CHP - CST CHP - BIGCC Fuel & heat plant - DME Fuel & heat plant - Methane Fuel & heat plant - Methanol

17 District heat production cost for different crude oil scenarios and technologies District heat production cost ( /MWh) No tax Social cost -550ppm Social cost -BAU Social cost-bau & adapted biomass price* Scenario * If biomass price is driven by standalone fossil power plants The error bar: if crude oil price at $93/bbl instead of $62/bbl

18 Environmental scenarios q 100% woody biomass

19 District heat production cost of integrated biomotor fuel production units (only biomass-based system) Boiler - Wood chips Boiler - Wood pellets Boiler - Wood powder CHP - BIGCC CHP - BST Fuel & heat plant - DME Fuel & heat plant - Ethanol Fuel & heat plant - Methane Fuel & heat plant - Methanol

20 District heat production cost of integrated biomotor fuel production units and the most cost-efficient units (only biomass-based system) District heat production cost ( /MWh) Utilization time (day/year) Boiler - Wood chips Boiler - Wood pellets Boiler - Wood powder CHP - BIGCC CHP - BST Fuel & heat plant - DME Fuel & heat plant - Ethanol Fuel & heat plant - Methane Fuel & heat plant - Methanol

21 Delivered district heat from Swedish district heat production systems in 2008 District heat supply (GWh/year) More than 400 Swedish 8000 district heating systems (DHS) District heat production system q 84% based on heat-only boilers q DHS with CHP normally deliver more than 100 GWh/yr of district heat q DHS with CHP supplied 70% of total district heat

22 The cost efficiency of biomass-based district heat production for different scale and technologies District heat production cost ( /MWh) Heat-only boilers DME unit CHP unit (Reference) Scale of district heating system (GWh heat /year)

23 The cost efficiency of biomass-based district heat production for different scale and technologies District heat production cost ( /MWh) Heat-only boilers DME unit CHP unit DME & pellet units CHP & pellet units (Reference) Scale of district heating system (GWh heat /year)

24 Conclusions v Biomotor fuel production in a district heating system is typically not cost-efficient v But, uncertain investment costs of biomotor fuel production v Composition and district heat production costs of a minimumcost district heat production system depend on the scale of the system

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