Switch from gas to biomass in district heating Case Jelgava, Latvia. Kristian Rehnström, 25 February 2015

Transcription

1 Switch from gas to biomass in district heating Case Jelgava, Latvia Kristian Rehnström, 25 February 2015

2 Our current geographical presence Power generation Heat Electricity sales Distribution Nordic countries Power generation* 49.2 TWh Heat sales* 10.9 TWh Electricity customers 1.3 million Distribution customers in Sweden 0.9 million Key figures 2014 Sales EUR 4.8 bn Comparable operating profit EUR 1.4 bn Balance sheet EUR 21 bn Personnel 8,600 Russia* OAO Fortum Power generation Heat sales 23.3 TWh 26.0 TWh * Including Fortum s associated company Fortum Värme; power generation 1.2 TWh and heat sales 7.6 TWh. * In addition, Fortum has a 29.5% share in TGC-1 Poland Power generation 0.7 TWh Heat sales 3.4 TWh Baltic countries Power generation 0.7 TWh Heat sales 1.2 TWh India Power generation 9 GWh 2

3 Fortum mid-sized European power generation player; major producer in global heat Power generation Largest producers in Europe and Russia, 2013 TWh EDF E.ON Enel RWE Rosenergoatom Gazprom Vattenfall GDF SUEZ Inter RAO UES RusHydro NNEGC Energoat. Iberdrola EuroSibEnergo 1 ) Fortum CEZ EnBW PGE IES Statkraft DTEK EDP DEI Gazprom IES Inter RAO UES 2 ) Veolia 1 ) Fortum RusHydro EuroSibEnergo Sibgenco Vattenfall Quadra 2) EDF. TGC-2 Lukoil Minskenergo KDHC DTEK Dong Energy PGNiG Tatenergo Enel Heat production Largest global producers, 2013 TWh Enel EDF E.ON RWE Iberdrola DEI CEZ Centrica EDP Vattenfall SSE EnBW GDF SUEZ Tauron PGE Gas Natural Fenosa Fortum Hafslund Dong Energy Customers Electricity customers in EU, 2013 Millions ) Incl. Fortum's associated company Fortum Värme; power generation 1.3 TWh and heat production 8.2 TWh. 2) Veolia incl. Dalkia International and EDF incl. Dalkia's activities in France. Source: Company information, Fortum analyses, 2013 figures pro forma, heat production of Beijing DH not available. 3

4 Fortum's European power generation based on hydro and nuclear power wide flexibility in heat production Fortum's European power generation in 2014 Fortum's European heat production in 2014 Nuclear power 47% Coal 26% Biomass 24% Other 2% Natural gas 2% Biomass 2% Coal 4% Oil 1% Peat 2% Natural gas 15% Heat pumps, electricity 17% Hydro power 43% Waste 15% European generation 51.3 TWh (Generation capacity 10,478 MW) European production 15.7 TWh (Production capacity 7,572 MW) Incl. Fortum s associated company Fortum Värme; power generation 1.2 TWh (capacity 627 MW) and heat production 7.5 TWh (capacity 3,636 MW). 4

5 Jelgava Bio-CHP and turn-around in Jelgava district heating system Earlier production was 100% natural gas based, using boiler houses from 1970`s Fortum total investment during totals ~ 90 M, including: Network renovation and interconnection of two district heating systems under the river Lielupe, Replacement of all heat production units, Bio cogeneration plant based on wood chips First and largest bio-chp project of its kind in Latvia CO 2 emissions from heat production (g CO 2 /kwh)

6 Former production and new heat supply after Bio CHP start-up MW MW Former New Gas boilers Gas CHP > 4 MW Gas boilers (only for peak hours) Bio CHP 23 MW ( working hours ~ 5,200 h) Gas CHP < 4 MW (working hours ~ 8,050 h) Old district heating gas boilers where from 1970`s and needed replacement. Days Days Bio CHP capacity is almost fully utilised during the heating season 6

7 Fortum s investments in Jelgava with EU co-financing Gas CHP construction and district heating network reconstruction (2.5 km) Bio-CHP plant project Interconnection of DH systems under the river Lielupe Construction of new DH network interconnection loop Efficiency increase of DH distribution system in Jelgava Total support from the EU financing 9.5 M 7

8 Time schedule Environmental impact assessment Investment decision Civil works started Construction works started First firing with gas First firing with biomass Synchronization with the grid Start of trial run Commissioning

9 Key indicators Technical indicators Fuel power 77 MW fuel District heat capacity 45 MW heat Electricity capacity 23 MW e Estimated DH produced 220 GWh Generated backpressure electricity 110 GWh Fuel and personnel Fuel supply in summer trucks/day Fuel supply in winter trucks/day Staff 31 engineers and operators; 5 shifts each 12h 9

10 Fortum s recent investments in the Baltics in local fuel based CHPs Tartu, Estonia bio/peat CHP 25 MW el /50 MW th in operation since 2009 Total investment 75 MEUR Pärnu, Estonia bio/peat CHP 23 MW el /45 MW th in operation since 2010 Total investment 80 MEUR Klaipeda, Lithuania WtE CHP 20 MW el /50 MW th in operation since May 2013 Total investment 130 MEUR Jelgava, Latvia bio CHP 23 MW el /45 MW th in operation since September 2013 Total investment 70 MEUR 10

11 Fortum s investment programme Nordic region and Baltic countries Project Electricity, MW Heat, MW Commissioning Olkiluoto 3, Finland 400 Swedish nuclear upgrades ~ 260 Refurbishing of hydro power 14 Annually (2015) Total ~ 670 Additional electricity capacity around 670 MW, 100% CO 2 -free Already commissioned in 2013 Blaiken, Sweden, wind power 30 Q Klaipeda, Lithuania, waste CHP Q Järvenpää, Finland, biomass CHP Q Jelgava, Latvia, biomass CHP Q Brista, Sweden, waste CHP Q Investments of associated companies Värtan, biomass (50.1% of shares) Naantali, biomass (49.5% of shares)

12 Innovative ideas for future CHP-integrated pyrolysis oil production in Jelgava Pyrolysis oil production integrated at Jelgava BioCHP. Fortum Jelgava has been allocated 3.9 M from NER300 EU financing. Total investment 30 M. Pyrolysis oil a domestic alternative for fossil oils Bio oil is produced from biomass like forest residues and other forest industry by-products Energy density of bio oil is high compared to unprocessed biomass Bio oil can be economically transported longer distances to be utilised in heat and steam production Bio oil can be used for replacing heavy fuel oil and it s heating value is about half compared to fossil oils In the future bio oil can be a raw material for carbon lean chemicals and traffic fuels 12

13 Thank you!