Life cycle assessment of fuels for district heating: A comparison of waste incineration,biomass- and natural gas combustion

The aim of this consequential life cycle assessment (LCA) is to compare district heating based on waste incineration with combustion of biomass or natural gas. The study comprises two options for energy recovery (combined heat and power (CHP) or heat only), two alternatives for external, marginal electricity generation (fossil lean or intense), and two alternatives for the alternative waste management (landfill disposal or material recovery). A secondary objective was to test a combination of dynamic energy system modelling and LCA by combining the concept of complex marginal electricity production in a static, environmental systems analysis. Furthermore, we wanted to increase the methodological knowledge about how waste can be environmentally compared to other fuels in district-heat production. The results indicate that combustion of biofuel in a CHP is environmentally favourable and robust with respect to the avoided type of electricity and waste management. Waste incineration is often (but not always) the preferable choice when incineration substitutes landfill disposal of waste. It is however, never the best choice (and often the worst) when incineration substitutes recycling. A natural gas fired CHP is an alternative of interest if marginal electricity has a high fossil content. However, if the marginal electricity is mainly based on non-fossil sources, natural gas is in general worse than biofuels.     

Large-scale integration of wind power into different energy systems

The paper presents the ability of different energy systems and regulation strategies to integrate wind power. The ability is expressed by the following three factors: the degree of electricity excess production caused by fluctuations in wind and Combined Heat and Power (CHP) heat demands, the ability to utilise wind power to reduce CO₂ emission in the system, and the ability to benefit from exchange of electricity on the market. Energy systems and regulation strategies are analysed in the range of a wind power input from 0 to 100% of the electricity demand. Based on the Danish energy system, in which 50% of the electricity demand is produced in CHP, a number of future energy systems with CO₂ reduction potentials are analysed, i.e. systems with more CHP, systems using electricity for transportation (battery or hydrogen vehicles) and systems with fuel-cell technologies. For the present and such potential future energy systems different regulation strategies have been analysed, i.e. the inclusion of small CHP plants into the regulation task of electricity balancing and ancillary grid stability services and investments in electric heating, heat pumps and heat storage capacity. The results of the analyses make it possible to compare short-term and long-term potentials of different strategies of large-scale integration of wind power.     

Role of a district-heating network as a user of waste-heat supply from various sources – the case of Göteborg

District-heating (DH) networks can utilise heat that would otherwise be of limited use. This study analyses a municipal DH system, which uses waste heat from industries and waste incineration as base suppliers of heat and is currently investing in a natural-gas fired combined heat-and-power (CHP) plant. An important assumption in this study is of the establishment of an integrated European electricity-market, which means higher electricity prices than are traditional in Sweden. The study shows that there is space in the DH system for all three energy carriers; heat from industries, waste incineration and CHP plants. The new CHP plant replaces mainly other heat sources, i.e., hot water boilers and heat pumps. The new CHP plant’s operating time is strongly dependent on the electricity price.     

Stockholm CHP potential—An opportunity for CO2 reductions?

The potential for combined heat and power (CHP) generation in Stockholm is large and a total heat demand of about 10 TWh/year can be met in a renewed large district heating system. This model of the Stockholm district heating system shows that CHP generation can increase from 8% in 2004 to 15.5% of the total electricity generation in Sweden. Increased electricity costs in recent years have awakened an interest to invest in new electricity generation. Since renewable alternatives are favoured by green certificates, bio-fuelled CHP is most profitable at low electricity prices. Since heat demand in the district heating network sets the limit for possible electricity generation, a CHP alternative with a high electricity to heat ratio will be more profitable at when electricity prices are high. The efficient energy use in CHP has the potential to contribute to reductions in carbon dioxide emissions in Europe, when they are required and the European electricity market is working perfectly. The potential in Stockholm exceeds Sweden's undertakings under the Kyoto protocol and national reduction goals.     

National energy policies: Obstructing the reduction of global CO2 emissions? An analysis of Swedish energy policies for the district heating sector

The effect of national energy policies on a local Swedish district heating (DH) system has been studied, regarding the profitability of new investments and the potential for climate change mitigation. The DH system has been optimised regarding three investments: biomass-fuelled CHP (bio CHP), natural gas-fuelled combined cycle CHP (NGCC CHP) and biomass-fuelled heat-only boiler (bio HOB) in two scenarios (with or without national taxes and policy instruments). In both scenarios EU’s tradable CO₂ emission permits are included. Results from the study show that when national policies are included, the most cost-effective investment option is the bio CHP technology. However, when national taxes and policy instruments are excluded, the DH system containing the NGCC CHP plant has 30% lower system cost than the bio CHP system. Regardless of the scenario and when coal condensing is considered as marginal electricity production, the NGCC CHP has the largest global CO₂ reduction potential, about 300 ktonne CO₂. However, the CO₂ reduction potential is highly dependent on the marginal electricity production. Demonstrated here is that national policies such as tradable green certificates can, when applied to DH systems, contribute to investments that will not fully utilise the DH systems’ potential for global CO₂ emissions reductions.     

Power-to-gas leverage effect on power-to-heat application for urban renewable thermal energy systems

High Renewable Energy Sources (RES) share in energy systems entails environmental advantages in its use but drawbacks in its distribution, management and effectiveness. The interconnection between electricity, heat and transport sector seems to be a comprehensive answer. Its actual link is on-going and, currently, involves electricity and heat. Indeed, Power to Heat (P2H) is the strategy of meeting the heating demand by supplying electricity to feed Heat Pump (HP). Their higher efficiency compared to fossil fuel boilers requires a further check in the quality of the heating demand to meet, i.e. the temperature levels. Great part of current building stock calls for High Temperature (HT) Heat which is not affordable by HP maintaining their Coefficient of Performance. To face this issue, RES can be used to produce synthetic fuels for feeding existing energy systems, the so-called Power-to-Gas option. In this way, greening the fuel supply can be seen as the best option for meeting HT heating demand while, Medium and Low Temperature are met by HP. Therefore, two technological scenarios, P2H and its combination with P2G, are presented and assessed in three reference Urban Energy Systems. The authors investigated on the impact of RES share increase from 25% up to 50% in the electricity mix with the objective function of Primary Energy Consumption (PEC). The outcomes of twenty-four energy scenarios, eight for each Reference City were assessed also through the value of delivered Renewable Heat. Finally, the leverage effect of P2G on the system is evaluated in terms of renewable heat contribution.     

Manure's allure: Variation of the financial, environmental, and economic benefits from combined heat and power systems integrated with anaerobic digesters at hog farms across geographic and economic regions

Several studies have shown that anaerobic digesters integrated with combined heat and power systems (CHP/AD) are a financially attractive way to generate electricity, reduce odor, and improve nutrient management on hog farms; yet only very few systems have been installed to date. Employing published financial, economic, and environmental indicators, this study tests whether the benefits from CHP/AD identified in these studies can be replicated across all major hog-farming regions in the US. The study finds that a modest support of 1 cent per kWh is needed to assure that CHP/AD generated electricity is competitive with current utility rates in many hog-farming states. However, the study also shows that once CHP/AD systems are promoted hog-farming states stand to reap large benefits from CHP/AD, particularly environmental benefits (such as odor control and emissions reductions), economic benefits (in form of job creation), and added generating capacity.     

Primary energy savings through thermal storage in district heating networks

District heating is an efficient way to provide heat to residential, tertiary and industrial users. Heat is often produced by CHP (combined heat and power) plants, usually designed to provide the base thermal load (40-50% of the maximum load) while the rest is provided by boilers. The use of storage tanks would permit to increase the annual operating hours of CHP: heat can be produced when the request is low (for instance during the night), stored and then used when the request is high. The use of boilers results partially reduced and the thermal load diagram is flattered. Depending on the type of CHP plant this may also affect the electricity generation. All these considerations are crucial in the free electricity market.In this paper, a multi-scale model of storage tanks is proposed. This model is particularly suitable to analyze the operation of storage systems during the heating season and to predict their effects on the primary energy consumption and cash flows. The analysis is conducted considering the Turin district heating system as case study. Results show that primary energy consumption can be reduced up to 12%, while total costs can be reduced up to about 5%.     

Optimisation of merged district-heating systems—benefits of co-operation in the light of externality costs

Studies have shown that separate actors can benefit from co-operation around heat supply. Such co-operation, for example, might be between an industry selling waste heat to a district-heating system or two district-heating systems interconnecting their respective systems. Co-operation could also be expected to reduce the environmental impacts of the energy systems by choosing the plants with the lowest emissions. It is widely accepted that the production of heat and electricity causes damage to the environment. This damage often imposes a cost on society, but not on company responsible. In general, using a broader system perspective when analysing local energy systems results in a lower total cost, more efficient use of plants and a greater potential for producing electricity in combined heat-and-power (CHP) plants. Internalising the externality costs in the energy system model facilitates the study of what co-operation can mean for reducing emissions. This study shows that co-operation between the two systems is on the whole cost-effective, but the benefits are greater when external costs are not included in the calculation. Considering externality costs in combination with current electricity prices would lead to a higher system cost, but the quantity of emission gases will be lower. If, on the other hand, the calculation is made taking externality costs and corresponding adjusted electricity prices (the adjustment being necessary to compensate for the additional cost due to externality costs) into consideration, the quantities of emission gases will rise because more heat-and-power will be generated by one of the CHP plants.     

Biomass gasification in district heating systems – The effect of economic energy policies

Biomass gasification is considered a key technology in reaching targets for renewable energy and CO₂ emissions reduction. This study evaluates policy instruments affecting the profitability of biomass gasification applications integrated in a Swedish district heating (DH) system for the medium-term future (around year 2025). Two polygeneration applications based on gasification technology are considered in this paper: (1) a biorefinery plant co-producing synthetic natural gas (SNG) and district heat; (2) a combined heat and power (CHP) plant using integrated gasification combined cycle technology. Using an optimisation model we identify the levels of policy support, here assumed to be in the form of tradable certificates, required to make biofuel production competitive to biomass based electricity generation under various energy market conditions. Similarly, the tradable green electricity certificate levels necessary to make gasification based electricity generation competitive to conventional steam cycle technology, are identified. The results show that in order for investment in the SNG biorefinery to be competitive to investment in electricity production in the DH system, biofuel certificates in the range of 24–42 EUR/MWh are needed. Electricity certificates are not a prerequisite for investment in gasification based CHP to be competitive to investment in conventional steam cycle CHP, given sufficiently high electricity prices. While the required biofuel policy support is relatively insensitive to variations in capital cost, the required electricity certificates show high sensitivity to variations in investment costs. It is concluded that the large capital commitment and strong dependency on policy instruments makes it necessary that DH suppliers believe in the long-sightedness of future support policies, in order for investments in large-scale biomass gasification in DH systems to be realised.     

Comparative analyses of seven technologies to facilitate the integration of fluctuating renewable energy sources

An analysis of seven different technologies is presented. The technologies integrate fluctuating renewable energy sources (RES) such as wind power production into the electricity supply, and the Danish energy system is used as a case. Comprehensive hour-by-hour energy system analyses are conducted of a complete system meeting electricity, heat and transport demands, and including RES, power plants, and combined heat and power production (CHP) for district heating and transport technologies. In conclusion, the most fuel-efficient and least-cost technologies are identified through energy system and feasibility analyses. Large-scale heat pumps prove to be especially promising as they efficiently reduce the production of excess electricity. Flexible electricity demand and electric boilers are low-cost solutions, but their improvement of fuel efficiency is rather limited. Battery electric vehicles constitute the most promising transport integration technology compared with hydrogen fuel cell vehicles (HFCVs). The costs of integrating RES with electrolysers for HFCVs, CHP and micro fuel cell CHP are reduced significantly with more than 50% of RES.     

A review on energy,economical, and environmental benefits of the use of CHP systems for small commercial buildings for the North American climate

The use of combined heating and power (CHP) systems to produce both electricity and heat is increasing rapidly due to their high potential of reducing primary energy consumption (PEC), cost, and emissions in domestic, commercial, and industrial applications. In addition to producing both electricity and heat, CHP systems can be coupled with vapor compression systems to provide cooling. This paper analyzes a natural gas engine CHP system together with a vapor compression system for different American climate zones. Performance is measured in terms of operational costs, PEC, and carbon dioxide emissions as a percent of a reference building. The objective of this paper is to compare the performance of a CHP system operating 24 h a day with a system that only operates during typical office hours. Furthermore, the system is optimized based on reducing PEC, minimizing costs, and reducing emissions. In addition, the benefits of CHP systems based on the Energy Star program and the Leadership in Energy and Environmental Design (LEED) program are presented. Results show that, in general, it is more beneficial to operate the CHP system during typical office hours than to operate the system 24 h a day. Also, the CHP system performance strongly depends on the location where it is installed. In addition to reductions in cost, primary energy, and emissions, CHP systems can help achieve the Energy Star label for commercial office buildings and help obtain LEED points that go toward achieving LEED certification status. Copyright © 2009 John Wiley & Sons, Ltd.     

Combined heat and power economics

Combined heat and power is a joint product system generating electricity and heat, both relatively ‘non-storable’ commodities with temporally fluctuating demands. A ‘peak-load pricing’ model of the CHP system is developed to investigate the pricing and capacity decisions involved in this two market system. Various market structures are considered and the pricing implications investigated. The solutions have several interesting features, including possible peak-load switching. Where a decentralized CHP system exports electricity to the central system and operates in a local heat market, then, ceteris paribus, higher central electricity system prices imply lower optimal local heat market prices. In this latter case, the tariff offered by the electricity supply industry for CHP generated electricity has implications for investment and for pricing in the heat market — this tariff is therefore examined further. The case for marginal cost pricing is shown to have several attractive features.     

Application of combined heat-and-power and absorption cooling in a supermarket

In recent years, it has become standard practice to consider Combined Heat-and-Power (CHP) systems for commercial buildings. CHP schemes are used, because they are an efficient means of power generation. Unlike conventional power stations, they produce electricity locally and thus minimise the distribution losses, however, they also utilise the waste heat from the generation process. In applications where there is a combined heating and electricity requirement, a very efficient means of energy production is achieved compared to the conventional methods of providing heating and electricity. With new initiatives from the UK government on reduced energy-use, energy-efficient systems such as CHP have been considered for new applications. This paper summarises the results of an investigation into the viability of CHP systems in supermarkets. The viability of conventional CHP has been theoretically investigated using a mathematical model of a typical supermarket. This has demonstrated that a conventional CHP system may be practically applied. It has also been shown that compared to the traditional supermarket design, the proposed CHP system will use slightly less primary energy and the running costs will be significantly reduced. An attractive payback period of approximately 4 years has been calculated. Despite these advantages a considerable quantity of heat is rejected to atmosphere with this system and this is because the configuration utilises the heat mainly for space heating which is only required for part of the year. To increase the utilisation time, a novel CHP/absorption system has been investigated. This configuration provides a continuous demand for the waste heat, which is used to drive an absorption chiller that refrigerates propylene glycol to −10°C for cooling the chilled-food cabinets. The results show this concept to be theoretically practical. The system has also been shown to be extremely efficient, with primary energy savings of approximately 20%, when compared to traditional supermarket designs and this would result in significant revenue cost savings as well as environmental benefits. Based upon these savings a payback period for this system of approximately 5 years has been demonstrated.     

The effectiveness of storage and relocation options in renewable energy systems

Across the world, energy planners and transmission system operators are faced with decisions on how to deal with challenges associated with high penetration levels of intermittent energy resources and combined heat and power (CHP). At the same time, distributed plant operators are eager to reduce uncertainties related to fuel and electricity price fluctuations. These interests meet-up for options in distributed supply that introduces the principle of storage and relocation, typically by integrating heat pumps (HP) or electric boilers (EBs) into the operational strategies of existing CHP plants. This paper introduces the principle of storage and relocation by energy system design, and proposes for the storage and relocation potential of a technology option to be found by comparing options by their storage and relocation coefficient R_c, defined as the statistical correlation between net electricity exchange between plant and grid, and the electricity demand minus intermittent renewable electricity production. Detailed operational analyses made for various CHP options within the West Danish energy system, point to the concepts of CHP-HP and CHP-HP cold storage for effectively increasing energy system flexibility. For CHP-HP cold storage, R_c increases from 0.518 to 0.547, while the plant's fuel efficiency increases from 92.0% to 97.2%. These findings are discussed within frameworks of renewable energy systems, suggesting principles for 1st, 2nd, and 3rd generation system designs.     

A techno-economic assessment of NuScale and DHR-400 reactors in a district heating and cooling grid

Many companies are developing small modular reactors (SMR), but only few are in a licensing or demonstration phase. Several papers have studied the economy of the SMRs, but district heating studies were carried out without a reference energy system that has a high impact on the results. We modeled NuScale CHP and DHR-400 (heat only) units as a part of a city-level district heating and cooling grid. In the studied reference system, NuScale CHP and DHR-400 look cost-efficient investments with internal rates of return from 7% to 20%. Modeled heat only reactor had better profitability than CHP reactor in almost all cases except when assuming higher than 50 €/MWh electricity prices. Large heat pumps with COP of 3.5 had similar economic performance than studied SMRs. Large heat pumps are less capital intensive than SMRs and easier to accept by public, but their potential is limited by the available heat sources.     

Do liberalised electricity markets help or hinder CHP and district heating? The case of the UK

This paper investigates whether and how Danish-style combined heat and power (CHP) and district heating (DH) can be implemented in the UK in the context of a liberalised electricity market. There is currently an absence, in the UK, of the Danish system of planning rules and also good tariffs for CHP electricity exports to the grid that led to the development of the Danish system of CHP and DH. However, there are some changes in UK planning practice that may help CHP and DH. These would need to be strengthened, but it is also the case that the way the liberalised electricity market operates in the UK effectively discriminates against small CHP plant selling their electricity to the grid. A Danish system of ‘aggregating’ CHP–DH plant using thermal stores could help to overcome this problem. However, an alternative strategy would be to establish feed-in tariffs for CHP units that are linked to DH modelled on the Danish ‘triple tariff’. This could help the UK's long-term objective of absorbing high levels of fluctuating renewable energy sources.     

Techno-economic analysis of using corn stover to supply heat and power to a corn ethanol plant – Part 2: Cost of heat and power generation systems

This paper presents a techno-economic analysis of corn stover fired process heating (PH) and the combined heat and power (CHP) generation systems for a typical corn ethanol plant (ethanol production capacity of 170 dam³). Discounted cash flow method was used to estimate both the capital and operating costs of each system and compared with the existing natural gas fired heating system. Environmental impact assessment of using corn stover, coal and natural gas in the heat and/or power generation systems was also evaluated. Coal fired process heating (PH) system had the lowest annual operating cost due to the low fuel cost, but had the highest environmental and human toxicity impacts. The proposed combined heat and power (CHP) generation system required about 137 Gg of corn stover to generate 9.5 MW of electricity and 52.3 MW of process heat with an overall CHP efficiency of 83.3%. Stover fired CHP system would generate an annual savings of 3.6 M$ with an payback period of 6 y. Economics of the coal fired CHP system was very attractive compared to the stover fired CHP system due to lower fuel cost. But the greenhouse gas emissions per Mg of fuel for the coal fired CHP system was 32 times higher than that of stover fired CHP system. Corn stover fired heat and power generation system for a corn ethanol plant can improve the net energy balance and add environmental benefits to the corn to ethanol biorefinery.     

Management of fluctuations in wind power and CHP comparing two possible Danish strategies

Both CHP (combined heat and power production) and wind power are important elements of Danish energy policy. Today, approximately 50% of both the Danish electricity and heat demand are produced in CHP and more than 15% of the electricity demand is produced by wind turbines. Both technologies are essential for the implementation of Danish climate change response objectives, and both technologies are intended for further expansion in the coming decade. Meanwhile, the integration of CHP and wind power is subject to fluctuations in electricity production. Wind turbines depend on the wind, and CHP depends on the heat demand. This article discusses and analyses two different national strategies for solving this problem. One strategy, which is the current official government policy known as the export strategy, proposes to take advantage of the Nordic and European markets for selling and buying electricity. In this case, surplus electricity from wind power and CHP simply will be sold to neighbouring countries. Another strategy, the self-supply strategy, runs the CHP units to meet both demand and the fluctuations in the wind scheduling. In this case, investments in heat storages are necessary and heat pumps have to be added to the CHP units. Based on official Danish energy policy and energy plans, this article quantifies the problem for the year 2015 in terms of the amount of surplus electricity, and investments in heat pumps, etc. needed to solve the problem are calculated. Based on these results between the two different strategies, the conclusion is that the self-supply strategy is recommended over the official export strategy.