AdvantagesAdvantages ooff Biofuel Biofuel CHPsCHPs · CHP Naantali, Finland Coal, biomass 325 430...
Transcript of AdvantagesAdvantages ooff Biofuel Biofuel CHPsCHPs · CHP Naantali, Finland Coal, biomass 325 430...
AdvantagesAdvantages ofof BiofuelBiofuel CHPsCHPs
Zemgale Zemgale EnergyEnergy DaysDaysJelgavaJelgava
Ginta CimdiĦa-Pundure24 September 2010
Fortum is the world’s 4th largest heat producer with operations in 8 countries
• Listed at the Helsinki Stock Exchange since 1998• Over 90,000 shareholders• Heat sales 50,2 TWh and electricity sales 20,4 TWh (2009):
CHP/condensing production in over 30 plantsSmall scale heat production in over 700 heat-only boilersOperations in over 200 district heating networks located in 80 cities
Households 7.1%
Financial and insuranceinstitutions 2.7%
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• Industrial heat and steam supply for over 250 indus trial customers• Management model under two divisions
Heat: Sweden, Finland, Norway, Poland and Baltic countriesRussia : OAO Fortum (former TGC-10) and ~25% in TGC-1
Foreigninvestors30.5% The Finnish
state50.8%
Other Finnishinvestors 8.9%
TGC-1 (~25%)Russia
Our geographical presence today
Nordic countriesGeneration 48.1 TWhElectricity sales 54.9 TWhHeat sales 18.0 TWhDistribution cust. 1.6 millionElectricity cust. 1.2 million
Nr 1
Nr 3
Heat
Electricity sales
Distribution
Power generation
Nr 1
Nr 2
Total sales: – ca. 25 TWh heat – 5 TWh electricity
Total production capacity:– 23 CHP plants – 700 heating plants
and stations
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Power generation ~6 TWhHeat sales ~8 TWh
OAO Fortum Power generation 16.0 TWhHeat sales 25.6 TWh
PolandHeat sales 3.7 TWhElectricity sales 20 GWh
Baltic countriesHeat sales 1.3 TWhElectricity sales 0.1 TWhDistribution cust. 24,100
Fortum’s Mission and Strategy
Strategy
Fortum’s purpose is to create energy that improves life for present and future generations.
We provide sustainable solutions that fulfill the needs for low emissions, resource efficiency and energy supply
security, and deliver excellent value to our shareholders.
Mission
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Competence in CO2 free nuclear, hydro and energy efficient CHP production, and
operating in competitive energy markets
Fuel mix
Waste21%
Biomass fuels35%
Seawater16%
Electricity17%
Fosil oil6%
Coal5%
Stockholm
Biomass fuels78%
Peat16%
Natural Gas6%
Tartu
55
Natural gas
100%
Jelgava
Biomass fuels81%
Peat17%
Natural Gas2%
Parnu
Overview of Heat’s main CHP plants
Existing Main CHP's in Heat Division
Fuels Electricity MW
Heat MW
CHP Suomenoja, Finland Gas, Coal 370 565
CHP Naantali, Finland Coal, biomass 325 430
CHP Stockholm City, Sweden Coal 125 295
CHP Högdalen, Stockholm, Sweden Waste, biofuel 70 150
CHP Brista, Stockholm, Sweden Biofuel 42 108
CHP Hässelby, Stockholm, Sweden Wood pellets 75 194
CHP Joensuu, Finland Biofuels, Peat 70 130
CHP Nokia, FInland Gas 70 85
CHP Tartu, Estonia Biofuels, Peat 22 65
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CHP Tartu, Estonia Biofuels, Peat 22 65
CHP Projects, under construction or planned
Fuels Electricity MW
Heat MW
CHP Czestochowa Coal, biomass 65 120
CHP Pärnu, Estonia Biomass, peat 20 45
CHP Klaipeda, Lithuania Waste, biomass 20 50
CHP Brista, Sweden Waste 20 60
CHP Järvenpää, Finland Biomass, peat 24 60
CHP Jelgava, Latvia Biomass 23 45 Naantali CHP plant provides heat for the city of Turku
CHP regulation challenges in Latvia
Date No Title Status
24.07.2007. 503 “Regulations Regarding power production using RES ”
not in force
24.02.2009. 198 “Regulations Regarding power production using RES and determination of price”
not in force
16.03.2010. 262 “Regulations Regarding power in force
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16.03.2010. 262 “Regulations Regarding power production using RES and determination of price”
in force
06.11.2006. 921 “Regulations regarding power production in cogeneration ”
not in force
10.03.2009. 221 “Regulations regarding power production and price determination for power produced in cogeneration ”
changed 18.03.2009, 01.12.2009, 31.12.2009, 23.09.2010
End 2010 “Renewable energy Law “ in prog. from Jan-2010
Combined heat and power production and district heating is extremely energy efficient
• Very high fuel efficiency
• Small scale production enables local fuels (bio, waste, peat) with lower price volatility
• Competitiveness of CHP increases with higher coal and gas prices,
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• Fuel efficient CHP utilising heat as primary energy source
• CHP is small scale electricity production
with higher coal and gas prices, and with the need to reduce emissions (CO 2)
• Dust emission regulation (Industrial Emissions Directive) by 2016 drives potential for new CHP investments
Benefits of CHP are undisputable – offering untapped business opportunities
• High fuel efficiency• High fuel flexibility• A key solution in meeting increasing
demand for heat and power in urban environments
• Politically sound solution for sustainability
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sustainability• Subsidies from power production
(Green certificates)• Competitive• Still unexploited potential
Value creation logic based on the cost of alternative supply options
Condensingthermalpower
Alternativeheat supply
Power Heat Power Heat
CHP
Value creation logic
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Production cost Production Cost
If electricity price is set by condensing thermal power plant new entry cost and heat is priced according to alternative supply, CHP production is principally profitable due
to more efficient fuel utilisation.
>
Emission reduction targets and increasing fuel costs will promote growth of CHP production in the future
Customer and Social Benefits from District Heating Customer benefits• Competitive price• Comfortable and reliable• Constant local presence• Automated metering and online
reporting support energy savings
Social benefits• Enables efficient CHP production and
thus superior CO2 efficiency
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thus superior CO2 efficiency• Suits urban infrastructure• Centralized emission control in power
plant
Other benefits• Fuel flexibility• New market and new industry
development (based on local biofuels)
• New work places
Parnu CHP plant (2010-Apr)
• Heat 45 MW• Electricity 24 MW• Fuel:
– peat 50%, – biomass 50%,
1212
Tartu CHP plant
• Heat 52 MW• Electricity 25 MW• Fuel:
– peat 40%, – biomass 50%,– waste10%
1313
Existing heat load curve
40
50
60
70
80MW
0
10
20
30
40
1 8 15 22 29 36 43 50 57 64 71 78 85 92 99 106
113
120
127
134
141
148
155
162
169
176
183
190
197
204
211
218
225
232
239
246
253
260
267
274
281
288
295
302
309
316
323
330
337
344
351
358
365
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Gas boilers
Gas CHP
Days
Heat load curve with BioCHP
40
50
60
70
80MW
0
10
20
30
40
1 8 15 22 29 36 43 50 57 64 71 78 85 92 99 106
113
120
127
134
141
148
155
162
169
176
183
190
197
204
211
218
225
232
239
246
253
260
267
274
281
288
295
302
309
316
323
330
337
344
351
358
365
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Gas boilers
BioCHP
Gas CHP
Days
Heat Tariff from 2007 - 2010LVL/MWh
35
40
45
50
55
60
Heat tarif LVL/MWh w/o VAT
16
10
15
20
25
30
35
Jan.
07
Feb
.07
Mar
.07
Apr
.07
Mai
.07
Jūn.
07
Jūl.0
7
Aug
.07
Sep
.07
Okt
.07
Nov
.07
Dec
.07
Jan.
08
Feb
.08
Mar
.08
Apr
.08
Mai
.08
Jūn.
08
Jūl.0
8
Aug
.08
Sep
.08
Okt
.08
Nov
.08
Dec
.08
Jan.
09
Feb
.09
Mar
.09
Apr
.09
Mai
.09
Jūn.
09
Jūl.0
9
Aug
.09
Sep
.09
Okt
.09
Nov
.09
Dec
.09
Jan.
10
Feb
.10
Mar
.10
Apr
.10
Mai
.10
Jūn.
10
Jūl.1
0
Aug
.10
Sep
.10
Okt
.10
Heat Tariffs in Latvia April 2010, LVL/MWh
25.00
30.00
35.00
40.00
45.00
50.00
55.00
17
10.00
15.00
20.00
Heat Tariffs in Latvia September 2010, LVL/MWh
35.00
40.00
45.00
50.00
55.00
18
25.00
30.00
Fortum Jelgava (heat supply in perspective)
Ganību II5MWth/4MWel
Ganību I113MW
Skautu0.3MW
Instituta0.9MW
Kalnciema2.5MW
Aviacijas28MW
1919
BIO CHP plant45MWth/23MWel
New connection
Filozofu0.8MW
5MWth/4MWel
Neretas1MW
Construction of Bio Fuel CHP Plant in Jelgava
• Installed capacity – 45th / 23el MW• Fuel: wood, straws, etc.• Boiler technology: Bubbling Fluidized Bed
Boiler• Turbine technology: backpreasure steam
turbine
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turbine• Amount of heat energy produced per year –
up to 230 GWh • Planned investments up to 65 MEUR• Finalization of the project – in Dec, 2012• Within the scope of the project it is required
to construct a connection pipeline between the two networks.
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Structure of heat energy costs
ConsumptionConsumption
Total costs
Client’s responsibility
2121
DistributionDistribution
ProductionProduction
Total costsLVL/m2
Energy supplier’s responsibility
Improvements in DH network
3000
3500
4000
4500
5000
Replaced DH pipes, m
€ 800 000
€ 1 000 000
€ 1 200 000
22.0%
24.0%
26.0%
Heat loses in DH network andInvestments
Heat loses
Investments
22
0
500
1000
1500
2000
2500
2005 2006 2007 2008 2009
22
€ 0
€ 200 000
€ 400 000
€ 600 000
14.0%
16.0%
18.0%
20.0%
2005 2006 2007 2008 2009
Heat loses
2323
Thank You!