Post on 02-Oct-2021
Bioheat Applications – From Residential to Large Emitters
Jamie Stephen, PhD Managing Director, TorchLight Bioresources QIEEP Fellow, Queen’s University
Warren Mabee, PhD Canada Research Chair, Renewable Energy Development & Implementation Associate Professor & Department Head, Queen’s University Senior Consultant, TorchLight Bioresources
March 7, 2017 Supporting Biomass Heat in Ontario Bio-Heat Community of Practice Workshop
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Key Messages Bioheat Applications Overview Bioheat Database Remote Community Oil Sands RNG
1. Bioheat sector is growing, but small
2. Government plays a key role in success
3. Unique bioheat opportunities should be explored
4. Policies generally downplay the role of bio
5. Bioenergy must be viewed as an adaptation strategy
Overview
• The Canadian Bioheat Database
• Novel Bioheat Examples:
Residential BioHeat in Remote Communities for Diesel-fired Electricity Reduction
Process Heat in Oil Sands Operations for Transportation Fuels
Biosteam in Chemical Production
Renewable Natural Gas (RNG/Biomethane)
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Bioheat Applications Overview Bioheat Database Remote Community Oil Sands Biosteam RNG
Updating & Validation
• Canadian Bioheat Database was created in 2013/2014 by TorchLight under contract with NRCan (CanmetENERGY – Ottawa)
• 150 kW to 5 MW; major characteristics of project
• 230 in database in March, 2014; 275 in March, 2016
• Interviews vs. internet and reports
• Validate existing data
• Collaborative data gathering between TorchLight and NRCan
• Opportunities for filling data gaps – time limited 4
Location
• QC and BC lead; NWT & PEI greatest growth
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Scale
• >60% less than 1 MW; larger projects are greenhouses & industry
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Scale • Larger projects regionally concentrated
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Sector
• Institutions (schools, hospitals) most active market
• Growth in district energy (economies-of-scale)
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Sector • Small industrial concentrated; institutional disbursed
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Installation Date
• CAGR of >17%; one successful project leads to others
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Feedstocks • High quality predominant at this scale
• Feeding systems, ash handling, logistics, etc. limit low quality fuels
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Greenhouse Gas Impact
• Combustion emissions only
• Avoided fuel known vs. unknown
• BC-ON = NG; QC-NL, Territories = Heating oil
• Efficiencies: NG=90%; Propane=85%; Oil=80%; Coal=70%
• Full load equivalent hours: 2200 (2400 for Territories)
• 230,000 t CO2 eq/yr for 275 projects
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Update for 2017
• New projects
• Validate data
• Expand to include 50-150 kW commercial/institutional
• High volume suppliers
• Wood chip quality control; emissions monitoring
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Conclusions • Industry growth concentrated in PE, NT, QC, BC
• QC & BC have greatest number of projects
• QC appears to be most competitive jurisdiction
• Unrestrictive policy & dependence upon heating oil more important than feedstock availability
• Majority of projects <1 MW
• Institutional market is strongest at present
• A few developers and manufacturers = most new projects
• High quality feedstocks preferred
• Avoided fuel known vs. unknown
• BC-ON = NG; QC-NL, Territories = Heating oil
• Efficiencies: NG=90%; Propane=85%; Oil=80%; Coal=70%
• Full load equivalent hours: 2200 (2400 for Territories)
• 230,000 t CO2 eq/yr for 275 projects
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Background Remote Communities in Canada
• Not connected to North American electrical grid ~200 communities Population of ~ 200,000 Energy cost up to 10x average in Canada Many First Nations (aboriginal) communities
• Micro-grid generation Diesel dominates Small hydro common Several have integrated wind and/or solar
• Firewood heating common • Electric hot water
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Bioheat Applications Overview Bioheat Database Remote Community Oil Sands Biosteam RNG
Case Study Bella Coola, British Columbia
• Bella Coola Valley
Traditional territory of the Nuxalk First Nation
450 km on gravel road to nearest urban centre
1900 people in the valley; 850 on-reserve
Average family income <$30,000 (Reserve)
Reserve estimates of unemployed: 70-80%
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Bioheat Applications Overview Bioheat Database Remote Community Oil Sands Biosteam RNG
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Bioheat Applications Overview Bioheat Database Remote Community Oil Sands Biosteam RNG
Energy on the Nuxalk Reserve, BC
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Heating Oil
Propane Electricity Firewood
Consumption 435,000 L 110,000 L 4,484,000 kWh 900 cords
Cost of Heat ($/MWh)
163 141 130 (410*) 46
• 275 residences, 30 commercial/institutional buildings Typical residence: firewood, heating oil, and electric
hot water Commercial buildings usually propane
• Yearly consumption of ~12,000 MWh (41,000 MMBTU) Average cost of heat = $100/MWh
• Comparison of DES vs. Decentralized Single energy centre vs. boiler in each building Local (chip) vs. imported (pellet) fuel
Bioheat Applications Overview Bioheat Database Remote Community Oil Sands Biosteam RNG
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Bella Coola Village
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Four Mile
Economics & Risks Summary Results
District Energy System Four scenarios (2.1-5.2 MW) $128-154/MWh
Decentralized Boilers $110-127/MWh Still dependent upon fuel imports
Low cost firewood Pellet boilers/DES higher cost Firewood boilers may be best option
Electricity is subsidized Residents pay $0.13/kWh; diesel cost is $0.40/kWh BC Hydro has incentive to reduce electrical space and
hot water heating: 5-7 year payback
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Bioheat Applications Overview Bioheat Database Remote Community Oil Sands Biosteam RNG
Background on Canada’s Oil Sands
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• Canada has the world’s 3rd largest oil reserves: 173 B bbl
• Ultimate potential is 315 B bbl (larger than Saudi reserves)
• Oil sands are 97% of Canada’s proven reserves
• Production: 2.3 M bpd in 2014 to 4 M bpd in 2024 World = 94 M bpd
• CDN Economic impact 2010 to 2035 forecast: $2.1 trillion
• Contribute >$750 B to government revenue (2010-2035)
• 2014: 0.5 EJ/yr of natural gas
Bioheat Applications Overview Bioheat Database Remote Community
Oil Sands Biosteam RNG
Background on Canada’s Oil Sands
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• Surface mining & In situ recovery options
• SAGD is most common In situ method
• Surface mining = more water challenges; lower GHGs
• Only 20% of oil sands recoverable using surface mining
• ~50% of recovery is In situ and main source of growth
• ~55% of bitumen upgraded to synthetic crude oil in Alberta but forecast to drop to 20% by 2026
• Bitumen must be blended with a diluent (e.g., natural gas condensate) to pipeline
Bioheat Applications Overview Bioheat Database Remote Community
Oil Sands Biosteam RNG
Well-To-Refinery GHG Emissions
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Alternative Approach to Liquid Biofuels
Cellulosic Ethanol Thermal Bioenergy & Biohydrogen in Oil Sands
300 L EtOH/bdt (200 L gasoline) 1450 L SCO/bdt (gasoline cut = 650 L)
CHP for internal demand CHP for In situ recovery
33% energy yield to ethanol 80% (or more) thermal efficiency
Electricity exports? Displace coal vs. gas?
80% GHG ↓ from CDN baseline 90% GHG ↓ Well-to-Refinery
↓ ~0.5 t CO2e/bdt Thermal: ↓ ~1.0 t CO2e/bdt
• Low carbon fuel standard: reduce life cycle GHG emissions by 20% from 100 g CO2e/MJ fuel baseline from 1 BL
• Cellulosic ethanol: 1.1 M bdt
• Thermal bioenergy: 500 k bdt
Bioheat Applications Overview Bioheat Database Remote Community
Oil Sands Biosteam RNG
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Biosteam for Manufacturing?
• Eneco to provide ‘biosteam’ for Delfzijl Chemie Park in the Netherlands (via CHP generation)
• AkzoNobel Specialty Chemicals is main tenant
• Retrofit to existing biomass power plant
• Site accounts for 10% of Dutch chemical production
Bioheat Applications Overview Bioheat Database Remote Community Oil Sands
Biosteam RNG
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Renewable Natural Gas (Biomethane)
• Most likely bioheat for detached homes in cities with natural gas
• Agriculture and municipal feedstocks will dominate
• Greatest potential volume is forest feedstocks
• $12-15/GJ for ag/municipal; double that for forest
• In Ontario, much lower cost than electric heat
• Competitor is electricity, NOT natural gas
• Europe = government-led approach
• Canada = utility-led approach
• Biggest hurdle at present is regulatory situation
• Regulated utilities limited by the OEB
Bioheat Applications Overview Bioheat Database Remote Community Oil Sands Biosteam
RNG
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Fort McMurray Wildfires 2016
• $9.5B in costs
• 590,000 ha burned (>2x size of Luxembourg)
Mitgation AND Adaptation
Bioheat Applications Overview Bioheat Database Remote Community Oil Sands Biosteam RNG
Conclusion
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1. Bioheat sector is growing, but small
2. Government plays a key role in success
3. Unique bioheat opportunities should be explored
4. Policies generally downplay the role of bio
5. Bioenergy must be viewed as an adaptation strategy
Bioheat Applications Overview Bioheat Database Remote Community Oil Sands Biosteam RNG
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Jamie Stephen, PhD jstephen@TLBio.com www.torchlightbioresources.com
Warren Mabee, PhD warren.mabee@queensu.ca www.queensu.ca
March 7, 2017 Supporting Biomass Heat in Ontario Bio-Heat Community of Practice Workshop
Thank you
Bioheat Applications – From Residential to Large Emitters
Alberta in 2013
Net Electricity Supply
Ontario Demand Decreased by 13% Since 2005
Alberta Demand Increased by 42% Since 2000
2014
• Capacity = 6258 MW
• Generation = 44.4 TWh
• Capacity Factor = 81%
• Coal consumption (@ 32% net efficiency) = 500 PJ of fuel (500 M GJ)
Post 2029 Federal Regulations
• Capacity = 2619 MW
• Generation = 18.6 TWh
• Coal consumption (@ 32% net efficiency) = 210 PJ of fuel (210 M GJ)
• Need ~12.5 M bdt biomass to satisfy demand
Gamut of Bioenergy Overview Energy in Canada Biomass Resources Bioheat
Coal Displacement Oil Sands Conclusion
Roundwood Harvest – Canada
Pulp Production – Canada
Facilitator
Alberta Electricity Pool Price
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Facilitator
Alberta Wholesale Gas Price
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