Techno-economic analysis of a local district heating plant under fuel flexibility and performance

Brovst is a small district in Denmark. This paper analyses the use of local renewable resources in the district heating systems of Brovst. The present use of fossil fuels in the Brovst district heating plant (DHP) represents an increasing environmental and climate-related load. Therefore, an investigation has been made to reduce the use of fossil fuels for district heating system and make use of the local renewable resources (biogas, solar, and heat pump) for district heating purposes. In this article, the techno-economic assessment is achieved through the development of a suite of models that are combined to give cost and performance data for this district heating system. Local fuels have been analyzed for different perspectives to find the way to optimize the whole integrated system in accordance with fuel availability and cost. This paper represents the energy system analysis mode, energyPRO, which has been used to analyze the integration of a large-scale energy system into the domestic district heating system. A model of the current work on the basis of information from the Brovst plant (using fossil fuel) is established and named as a reference option. Then, four other options are calculated using the same procedure according to the use of various local renewable fuels known as “biogas option,” “solar option,” “heat pump option,” and “imported heat option.” A comparison has been made between the reference option and other options. The greatest reduction in heat cost is obtained from the biogas option by replacing a new engine, where 66 % of the current fuel is substituted with biogas.     

Meeting U.S. liquid transport fuel needs with a nuclear hydrogen biomass system

The two major energy challenges for the United States are replacing crude oil in our transportation system and eliminating greenhouse gas emissions. A domestic-source greenhouse-gas-neutral nuclear hydrogen biomass system to replace oil in the transportation sector is described. Some parts of the transportation system can be electrified with electricity supplied by nuclear energy sources that do not emit significant quantities of greenhouse gases. Other components of the transportation system require liquid fuels. Biomass can be converted to greenhouse-gas-neutral liquid fuels; however, the conversion of biomass-to-liquid fuels is energy intensive. There is insufficient biomass to meet U.S. liquid fuel demands and provide the energy required to process the biomass-to-liquid fuels. With the use of nuclear energy to provide heat, electricity, and hydrogen for the processing of biomass-to-liquid fuels, the liquid fuel production per unit of biomass is dramatically increased, and the available biomass could meet U.S. liquid fuel requirements.     

Comparing costs and emissions of northern New England space heating fuel options

Practical considerations of the environmental and economic costs and pollutant emissions of different fuel choices are not always well-outlined in the literature and thus are not always considered or understood by consumers and planners. In this paper, we analyze data to compare various fuels used for heating in the northern New England region of the USA, an area heavily dependent on heating oil. Our results suggest that (1) current rural households using fossil fuels or electricity for heating could lower energy costs and contribute less fossil carbon dioxide to the atmosphere by switching to wood as a heat energy source and (2) in newly built rural schools and other comparable complexes, heating with woodchips can be more cost effective and less environmentally damaging than heating with fossil fuels or electricity.     

Hard coal for energetic purposes: price–quality relationships; international coal market observations and Polish practice

Coal is the most abundant and commonly used energy carrier in the world. In coal-producing countries, coal is often the cheapest fuel for electricity and heat production. Prices of steam coals offered by exporters on international markets reflect current economic and market conditions and are also related to the prices of other fossil fuels like crude oil and natural gas. International coal-market observations and analyses lead to the conclusion that steam-coal prices depend only on heating value. In Polish practice, steam-coal prices are calculated using a price formula in which coal price is a function of three quality parameters: net calorific value, ash content and sulphur content, and a price of ‘basic’ or ‘reference’ coal (which means: coal of defined quality). This paper presents the results of international coal-market analyses of relationships between coal price and quality and describes the Polish coal-pricing system. A new solution, relevant to domestic coal mines and power plants, is presented to improve and simplify the conditions of bilateral settlements of coal deliveries.     

Keep that fire burning: Fuel supply risk management strategies of Swedish district heating plants and implications for energy security

Recent decades have seen a strong increase in bioenergy utilization in Sweden, from 52 TWh in 1983 to 128 TWh in 2013. Much of this increase has been achieved by replacing fossil fuels with different forms of bioenergy in district heating. Increased use of bioenergy is generally seen as key to reducing fossil fuel consumption and greenhouse gas emissions and improving energy security.However, replacing fossil fuels with solid biomass fuels in stationary heat and power generation entails significantly more complicated fuel supply logistics, with geographically scattered material associated with storage difficulties and low energy density. Given these risks and challenges and the key role of biomass-based district heating in the Swedish energy system, disturbances in fuel supply to district heating could potentially be an energy security issue.Through literature studies and interviews with employees at 18 district heating plants, we mapped present and future risks and risk management strategies in district heating supply in the Mälardalen region, south-east Sweden. We found that although small disturbances to fuel supply are not uncommon, the likelihood of heat supply failures due to fuel supply problems is low. Risk awareness is generally high among fuel supply managers, with widespread use of multilevel redundancies and diversification as key risk management strategies. However, fuel supply to plants is highly dependent on functioning truck transport and, consequently, availability of diesel fuel for trucks. Risk management can be strengthened further by implementation of forward-looking risk assessments that are less reliant on past experiences.     

Systems analysis of integrating biomass gasification with pulp and paper production - Effects on economic performance, CO2 emissions and energy use

This paper evaluates system aspects of biorefineries based on biomass gasification integrated with pulp and paper production. As a case the Billerud Karlsborg mill is used. Two biomass gasification concepts are considered: BIGDME (biomass integrated gasification dimethyl ether production) and BIGCC (biomass integrated gasification combined cycle). The systems analysis is made with respect to economic performance, global CO₂ emissions and primary energy use. As reference cases, BIGDME and BIGCC integrated with district heating are considered. Biomass gasification is shown to be potentially profitable for the mill. The results are highly dependent on assumed energy market parameters, particularly policy support. With strong policies promoting biofuels or renewable electricity, the calculated opportunity to invest in a gasification-based biorefinery exceeds investment cost estimates from the literature. When integrated with district heating the BIGDME case performs better than the BIGCC case, which shows high sensitivity to heat price and annual operating time. The BIGCC cases show potential to contribute to decreased global CO₂ emissions and energy use, which the BIGDME cases do not, mainly due to high biomass demand. As biomass is a limited resource, increased biomass use due to investments in gasification plants will lead to increased use of fossil fuels elsewhere in the system.     

A renewable energy scenario for Aalborg Municipality based on low-temperature geothermal heat, wind power and biomass

Aalborg Municipality, Denmark, wishes to investigate the possibilities of becoming independent of fossil fuels. This article describes a scenario for supplying Aalborg Municipality’s energy needs through a combination of low-temperature geothermal heat, wind power and biomass. Of particular focus in the scenario is how low-temperature geothermal heat may be utilised in district heating (DH) systems. The analyses show that it is possible to cover Aalborg Municipality’s energy needs through the use of locally available sources in combination with significant electricity savings, heat savings, reductions in industrial fuel use and savings and fuel-substitutions in the transport sector. With biomass resources being finite, the two marginal energy resources in Aalborg are geothermal heat and wind power. If geothermal heat is utilised more, wind power may be limited and vice versa. The system still relies on neighbouring areas as an electricity buffer though.     

Possibilities and consequences of deregulation of the European electricity market for connection of heat sparse areas to district heating systems

The objective of the study is to analyse the conditions for connection of residential buildings in heat sparse areas to district heating systems in order to increase electricity production in municipal combined heat and power plants. The European electricity market has been assumed to be fully deregulated. The relation between connection of heat sparse areas, increased electricity and heat production as well as electricity prices, fuel prices and emissions rights is investigated. The results of the study show that there is potential to expand the district heating market to areas with lower heat concentrations in the cities of Gävle, Sandviken and Borlänge in Sweden, with both economic and environmental benefits. The expansion provides a substantial heat demand of approximately 181 GWh/year, which results in an electricity power production of approximately 43 GWh/year. Since the detached and stand-alone houses in the studied heat sparse areas have been heated either by oil boiler or by direct electricity, connection to district heating also provides a substantial reduction in emissions of CO₂. The largest reductions in CO₂ emissions are found to be 211 ktonnes/year assuming coal-fired condensing power as marginal electricity production. Connection of heat sparse areas to district heating decrease the system costs and provide a profitability by approximately 22 million EURO/year for the studied municipalities if the price of electricity is at a European level, i.e. 110 EURO/MWh. Sensitivity analysis shows, among other things, that a strong relation exists between the price of electricity and the profitability of connecting heat sparse areas to district heating systems.     

Location of a biomass based methanol production plant: A dynamic problem in northern Sweden

Concerning production and use of biofuels, mismatch between the locations of feedstock and the biofuel consumer may lead to high transportation costs and negative environmental impact. In order to minimize these consequences, it is important to locate the production plant at an appropriate location. In this paper, a case study of the county of Norrbotten in northern Sweden is presented with the purpose to illustrate how an optimization model could be used to assess a proper location for a biomass based methanol production plant. The production of lignocellulosic based methanol via gasification has been chosen, as methanol seems to be one promising alternative to replace fossil gasoline as an automotive fuel and Norrbotten has abundant resources of woody biomass. If methanol would be produced in a stand-alone production plant in the county, the cost for transportation of the feedstock as well as the produced methanol would have great impact on the final cost depending on where the methanol plant is located. Three different production plant sizes have been considered in the study, 100, 200 and 400 MW (biomass fuel input), respectively. When assessing a proper location for this kind of plant, it is important to also consider the future motor fuel demand as well as to identify a heat sink for the residual heat. In this study, four different automotive fuel- and district heating demand scenarios have been created until the year 2025. The results show that methanol can be produced at a maximum cost of 0.48 €/l without heat sales. By selling the residual heat as district heating, the methanol production cost per liter fuel may decrease by up to 10% when the plant is located close to an area with high annual heat demand.     

Assessment of integration of different biomass gasification alternatives in a district-heating system

With increasingly stringent CO₂ emission reduction targets, incentives for efficient use of limited biomass resources increase. Technologies for gasification of biomass may then play a key role given their potential for high electrical efficiency and multiple outputs; not only electricity but also bio transport fuels and district heat. The aim of this study is to assess the economic consequences and the potential for CO₂ reduction of integration of a biomass gasification plant into a district-heating (DH) system. The study focuses on co-location with an existing natural gas combined cycle heat and power plant in the municipal DH system of Göteborg, Sweden. The analysis is carried out using a systems modelling approach. The so-called MARTES model is used. MARTES is a simulating, DH systems supply model with a detailed time slice division. The economic robustness of different solutions is investigated by using different sets of parameters for electricity price, fuel prices and policy tools. In this study, it is assumed that not only tradable green certificates for electricity but also tradable green certificates for transport fuels exist. The economic results show strong dependence on the technical solutions and scenario assumptions but in most cases a stand-alone SNG-polygeneration plant with district-heat delivery is the cost-optimal solution. Its profitability is strongly dependent on policy tools and the price relation between biomass and fossil fuels. Finally, the results show that operation of the biomass gasification plants reduces the (DH) system's net emissions of CO₂.     

Biofuel excision and the viability of ethanol production in the Green Triangle,Australia

The promotion and use of renewable energy sources are established priorities worldwide as a way to reduce emissions of Greenhouse Gases and promote energy security. Australia is committed to reach a target of 350 ML of biofuels per year by 2010, and incentives targeted to producers and consumers have been placed. These incentives include zero excise until 2011 for the ethanol produced in Australia and gradual increase of the taxation rates reaching the full excise of 0.125 AUD per litre by 2015. This paper analyses the viability of the second generation ethanol industry in the Green Triangle, one of the most promising Australian regions for biomass production, by comparing the energy adjusted pump prices of petrol and the produced ethanol under different taxation rates and forecasted oil prices. Major findings suggest that under the current conditions of zero fuel excise and oil prices around 80US$ per barrel ethanol production is viable using biomass with a plant gate cost of up to 74 AUD per ton. Moreover, the forecasted increase in oil prices have a higher impact on the price of petrol than the increased ethanol excise on the pump price of the biofuel. Thus, by 2016 feedstock with a plant gate cost of up to 190 AUD per ton might be used for ethanol production, representing a flow of 1.7 million tons of biomass per year potentially mitigating 1.2 million tons of CO₂ by replacing fossil fuels with ethanol.     

Thermochemical production of liquid fuels from biomass: Thermo-economic modeling,process design and process integration analysis

A detailed thermo-economic model combining thermodynamics with economic analysis and considering different technological alternatives for the thermochemical production of liquid fuels from lignocellulosic biomass is presented. Energetic and economic models for the production of Fischer–Tropsch fuel (FT), methanol (MeOH) and dimethyl ether (DME) by means of biomass drying with steam or flue gas, directly or indirectly heated fluidized bed or entrained flow gasification, hot or cold gas cleaning, fuel synthesis and upgrading are reviewed and developed. The process is integrated and the optimal utility system is computed. The competitiveness of the different process options is compared systematically with regard to energetic, economic and environmental considerations. At several examples, it is highlighted that process integration is a key element that allows for considerably increasing the performance by optimal utility integration and energy conversion. The performance computations of some exemplary technology scenarios of integrated plants yield overall energy efficiencies of 59.8% (crude FT-fuel), 52.5% (MeOH) and 53.5% (DME), and production costs of 89, 128 and 113 € MWh^?1 on fuel basis. The applied process design approach allows to evaluate the economic competitiveness compared to fossil fuels, to study the influence of the biomass and electricity price and to project for different plant capacities. Process integration reveals in particular potential energy savings and waste heat valorization. Based on this work, the most promising options for the polygeneration of fuel, power and heat will be determined in a future thermo-economic optimization.     

A key review on emergy analysis and assessment of biomass resources for a sustainable future

The present study comprehensively reviews emergy analysis and performance evaluation of biomass energy. Biomass resources utilization technologies include (a) bioethanol production, (b) biomass for bio-oil, (c) biodiesel production, (d) straw as fuel in district heating plants, (e) electricity from Municipal Solid Waste (MSW) incineration power plant, (f) electricity from waste landfill gas. Systems diagrams of biomass, which are to conduct a critical inventory of processes, storage, and flows that are important to the system under consideration and are therefore necessary to evaluate, for biomasses are given. Emergy indicators, such as percent renewable (PR), emergy yield ratio (EYR), environmental load ratio (ELR) and environmental sustainability index (ESI) are shown to evaluate the environmental load and local sustainability of the biomass energy. The emergy indicators show that bio-fuels from crop are not sustainable and waste management for fuels provides an emergy recovery even lower than mining fossil fuel.     

Hydrogen as a vector for central receiver solar utilities

An assessment is presented to use hydrogen or hydrogen-rich fuels as a vector in the Central Receiver Solar Utility (CRSU) concept.

The CRSU is conceived to meet primarily the domestic energy requirements for space heating and hot water production of a community. It normally operates to provide low grade heat with sensible seasonal heat storage and district heating systems. However, there are institutional problems connected with using sensible heat storage and low grade energy distribution systems into dwellings.

An alternative to this would be to produce hydrogen and hydrogen-rich fuels by using an advanced conversion technology and eliminate low grade heat storage and distribution systems. Two developing technologies, namely high temperature electrolysis and thermochemical processes, are considered for production of the vector. Then, an assessment is carried out at the conceptual level for fully dedicated Central Receiver Solar Utility Plants which integrate a central receiver system, thermochemical plant or electrical power generating system and synthetic fuel production plant with necessary auxiliary sub-systems.

It is shown that for a 10% capital recovery factor, the cost of hydrogen at the plant will be about $18 per GJ using thermochemical processes and about $20 per GJ using high temperature electrolysis processes.

The solar-hydrogen can also be converted to a more easily stored fuel for domestic use such as methanol, ethanol, ammonia or fuel oil. In this case, there is a distinct possibility that by using waste heavy fuels, tar sands and biomass, the cost of synthetic fuel can be considerably reduced.     

Investigating the need of nuclear power plants for sustainable energy in Iran

Over the decades, the consumption of all types of energy such as electricity increased rapidly in Iran. Therefore, the government decided to redevelop its nuclear program to meet the rising electricity demand and decrease consumption of fossil fuels. In this paper, the effect of this policy in four major aspects of energy sustainability in the country, including energy price, environmental issues, energy demand and energy security have been verified. To investigate the relative cost of electricity generated in each alternative generator, the simple levelized electricity cost was selected as a method. The results show that electricity cost in fossil fuel power plants presumably will be cheaper than nuclear. Although the usage of nuclear reactor to generate power is capable of decreasing hazardous emissions into the environment, there are many other effective policies and technologies that can be implemented. Energy demand growth in the country is very high; neither nuclear nor fossil fuel cannot currently cope with the growth. So, the only solution is rationalizing energy demand by price amendment and encouraging energy efficiency. The major threats of energy security in Iran are high energy consumption growth and economic dependency on crude oil export. Though nuclear energy including its fuel cycle is Iran's assured right, constructing more nuclear power plants will not resolve the energy sustainability problems. In fact, it may be the catalyst for deterioration since it will divert capital and other finite resources from top priority and economic projects such as energy efficiency, high technology development and energy resources management.     

On the potential trade-offs between energy supply and end-use technologies for residential heating

In Sweden, where district heating accounts for a significant share of residential heating, it has been argued that improvements in end-use energy efficiency may be counter-productive since such measures reduce the potential of energy efficient combined heat and power production. In this paper we model how the potential trade-offs between energy supply and end-use technologies depend on climate policy and energy prices. The model optimizes a combination of energy efficiency measures, technologies and fuels for heat supply and district heating extensions over a 50 year period. We ask under what circumstances improved end-use efficiency may be cost-effective in buildings connected to district heating? The answer hinges on the available technologies for electricity production. In a scenario with no alternatives to basic condensing electricity production, high CO₂ prices result in very high electricity prices, high profitability of combined heat and power production, and little incentive to reduce heat demand in buildings with district heating. In contrast, in a scenario where electricity production alternatives with low CO₂ emissions are available, the electricity price will level out at high CO₂ prices. This gives heat prices that increase with the CO₂ price and make end-use efficiency cost-effective also in buildings with district heating.     

An economic assessment of the use of short-rotation coppice woody biomass to heat greenhouses in southern Canada

This study explores the economic feasibility of fossil fuel substitution with biomass from short-rotation willow plantations as an option for greenhouse heating in southern Ontario, Canada. We assess the net displacement value of fossil fuel biomass combustion systems with an integrated purpose-grown biomass production enterprise. Key project parameters include greenhouse size, heating requirements, boiler capital costs and biomass establishment and management costs. Several metrics have been used to examine feasibility including net present value, internal rate of return, payback period, and the minimum or break-even prices for natural gas and heating oil for which the biomass substitution operations become financially attractive. Depending on certain key assumptions, internal rates of return ranged from 11-14% for displacing heating oil to 0-4% for displacing natural gas with woody biomass. The biomass heating projects have payback periods of 10 to >22 years for substituting heating oil and 18 to >22 years for replacing a natural gas. Sensitivity analyses indicate that fossil fuel price and efficiency of the boiler heating system are critical elements in the analyses and research on methods to improve growth and yield and reduce silviculture costs could have a large beneficial impact on the feasibility of this type of bioenergy enterprise.     

Optimal location of lignocellulosic ethanol refineries with polygeneration in Sweden

The integration of ethanol production with combined heat and power plants is considered in this paper. An energy balance process model has been used to generate data for the production of ethanol, electricity, heat and biogas. The geographical position of such plants becomes of importance when using local biomass and delivering transportation fuel and heat. An optimization model has thus been used to determine the optimal locations for such plants in Sweden. The entire energy supply and demand chain from biomass outtake to gas stations filling is included in the optimization. Input parameters have been studied for their influence on both the final ethanol cost and the optimal locations of the plants. The results show that the biomass cost, biomass availability and district heating price are crucial for the positioning of the plant and the ethanol to be competitive against imported ethanol. The optimal location to set up polygeneration plants is demonstrated to be in areas where the biomass cost is competitive and in the vicinity of small to medium size cities. Carbon tax does not influence the ethanol cost, but solicits the production of ethanol in Sweden, and changes thus the geography of the plant locations.     

The role of district heating in future renewable energy systems

Based on the case of Denmark, this paper analyses the role of district heating in future Renewable Energy Systems. At present, the share of renewable energy is coming close to 20 per cent. From such point of departure, the paper defines a scenario framework in which the Danish system is converted to 100 per cent Renewable Energy Sources (RES) in the year 2060 including reductions in space heating demands by 75 per cent. By use of a detailed energy system analysis of the complete national energy system, the consequences in relation to fuel demand, CO₂ emissions and cost are calculated for various heating options, including district heating as well as individual heat pumps and micro CHPs (Combined Heat and Power). The study includes almost 25 per cent of the Danish building stock, namely those buildings which have individual gas or oil boilers today and could be substituted by district heating or a more efficient individual heat source. In such overall perspective, the best solution will be to combine a gradual expansion of district heating with individual heat pumps in the remaining houses. Such conclusion is valid in the present systems, which are mainly based on fossil fuels, as well as in a potential future system based 100 per cent on renewable energy.     

Progress of renewable electricity replacing fossil fuels

Dramatic fall in costs of renewable energy in the last 24 months has not only accelerated the replacement of fossil fuels by renewable energy in electricity generation. The low cost renewable electricity is now starting to replace fossil fuels in other sectors.One reason is that renewable electricity is now cheaper per unit energy than oil, about the same price as fossil methan but, still, more expensive than coal. Another reason is that electricity often offer other opportunities, such as cheaper transport, better control, higher energy efficiency in final production of energy services and lower local environmental costs.