Best practices of International Cooperation on sustainable ...

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Best practices of International Cooperation on sustainable energies: Diff sion of sola technologies in Diffusion of solar technologies in industrial processes Marco Calderoni Department of Energy, Politecnico di Milano Department of Energy, Politecnico di Milano TECHITALY 2012 – Bruxelles, October, 3 rd 2012

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Best practices of International Cooperation on sustainable energies:Diff sion of sola technologies inDiffusion of solar technologies in industrial processes

Marco Calderoni

Department of Energy, Politecnico di MilanoDepartment of Energy, Politecnico di Milano

TECHITALY 2012 – Bruxelles, October, 3rd 2012

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Summary

1. Introduction: Tunisian framework2. Results of feasibility study campaign for integration of solar thermal

in industrial processes3. Suggestion for new energy policy in Tunisia3. Suggestion for new energy policy in Tunisia4. Description of pilot plant5. Conclusions

Marco Calderoni – [email protected]

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Tunisian framework conditions

Energy• Tunisia has a large natural gas network. • Most industrial facilities use natural gas for the main thermal processes,

usually producing saturated or superheated steam to be circulated inside the technological processes.

• Average price of natural gas for industrial end users: 0,25 TND/m3 (around 0,12 €/m3).

• Purchase price of natural gas for Tunisia on the international market:Purchase price of natural gas for Tunisia on the international market: 0,5 TND/m3

I d t i l b hIndustrial branche• Textile industry is among the most developed in Tunisia: 2.257 companies

out of 5.342 deal with textile. • Industries exporting 100 % of their production benefit from very high fiscal

advantages.• Men craft is much cheaper compared to Europe.

Marco Calderoni – [email protected]

p p p

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Feasibility study campaign 2011

Six feasibility studies carried out on industrial facilities in 2011:• 3 textile industries

• 1 x dyeing • 1 x washing • 1 x clothes production

• 3 food industry• 3 food industry• 1 x yeast• 1 x milk productsp• 1 x pasta

Most suitable industry has been selected for pilot installation.

Marco Calderoni – [email protected]

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Integration of solar thermal – industry 1

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Integration of solar thermal – industry 3

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Economic analysis – results under current boundary conditions

General data Low cost scenario High cost scenario

End user Technology Gross area Solar yield Investment cost

pay-back Investment cost

pay-back

m2 kWh/ TND TND Y m2 kWh/y TND y TND Y

textile industry 1 ETC 1.333 905.400 600.000 19,7 866.500 >20

textile industry 2 PTC 522 423.000 391.500 >20 522.000 >20

washing industry PTC 522 417.500 391.500 >20 522.000 >20washing industry PTC 522 417.500 391.500 20 522.000 20

Industry 1• IRR (Internal Rate of

Return of theReturn of the investment): 4,22%

• NPV (Net Present Value): about 7 400Value): about 7.400 TND

Marco Calderoni – [email protected]

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Suggestions for new energy policy (1)

Industrial end users in Tunisia, under the conditions chosen for the above mentioned studies, are not interested in investing in solar thermal due to high pay-back times.

From the point of view of the Public Utility, however, interest in solar thermal technology might exist, if one considers that each m3 ofthermal technology might exist, if one considers that each m of saved natural gas corresponds to about 0,25 TND of public saved money.

Total subsidy to solar plant under current subsidy mechanism

Saved public money in 20 years

End user

textile industry 1 184.000 TND 251.000 TND

t til i d t 2 78 300 TND 107 000 TNDtextile industry 2 78.300 TND 107.000 TND

washing industry 78.300 TND 104.000 TND

Marco Calderoni – [email protected]

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Economic analysis – results for industry 1 in «maximum subsidy scenario»

Industry 1• IRR (Internal Rate of

Return of theReturn of the investment): 25,1%

• NPV (Net Present Value): about 413.600 TNDTND

Maximum possible subsidy has been found to be equal to around 80% of investment cost. The payback for the Public Utility is 20 years.P b k f i d t 1 i 5 th ff d bl di t th t i d t i l

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Payback for industry 1 is 5 years, thus affordable according to the current industrial investment tendencies.

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Economic analysis – results for industry 1 in «medium subsidy scenario»

Hypothesis: • End-user can afford an actualized payback of 8 years supported by p y y pp y

bank loan of same duration.(Bank loan covers 80% of investment)

Results for industry:• Required subsidy percentage: 68% (=> investment by end user isRequired subsidy percentage: 68% ( > investment by end user is

6,4%)• IRR (Internal Rate of Return of the investment): 26,0%• NPV (Net Present Value): about 337.600 TND

Results for Public Utility:Results for Public Utility: • IRR (Internal Rate of Return of the investment): 5,41%• NPV (Net Present Value): about 71.600 TND

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( )

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Pilot plant: description of process and load

Benetton industry: production of clothes • Main processes: dyeing and ironing. • Natural gas used to produce steam, partly used directly for ironing, partly

indirectly in heat exchangers to heat up water for dyeing machines.y g p y g• Heat is recovered from hot, dirty water to pre-heat the fresh, clean water.

=> clean water is being pre-heated to 40-45°C in average. • Process runs 6 days a week 24 h a day• Process runs 6 days a week – 24 h a day

Average pre-heated flow rate to 31

load [m3/h]31

Average water temperature to load [°C]

41.5Range : 39‐44load [ C] Range : 39 44

Yearly energy consumption for dyeing processes [MWh/a]

10.000

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Existing plant scheme

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Integration of solar thermal – general view

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Pilot plant characteristics

Main technical characteristics• Collector area: ca 950 m2

• Storage volume: 50 m3

• Collector positioning: on ground

Expected performance• Solar fraction: ca 10 %• Solar fraction: ca. 10 %• Benefits for Benetton in due to higher water temperature and reduced

heating time (= wasted time)

Plant realisation before end 2012

Monitoring activities will be implemented by Politecnico di Milano

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High financial support of Italian Ministry of Environment, Land and Sea

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Conclusions and ongoing activities

Solar thermal technologies in the Tunisian industrial sector are currently not economically appealing for industry (subsidies on fossil fuels ).

Nevertheless, savings produced with the use of solar thermal heat have an important impact on the public budget.

General considerations:• Heat recovery possibilities before applying the solar thermal plants (usually

much lower payback time).much lower payback time).• Risk of stop/decrease in the production if boundary conditions change for

foreign industrial actors.• Effect of reduction of public support to gas price during the next years• Effect of reduction of public support to gas price during the next years.

Other ongoing activities:• Detailed design of pilot plant (Politecnico di Milano, financial support of Italian

Ministry of Environment, Land and Sea).• Detailed study for a potential subsidy mechanism for solar thermal in industry

Marco Calderoni – [email protected]

y p y y(Tunisian company, support of United Nations Environmental Program and IMELS).

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Thank you for your attention!

Marco Calderoni – [email protected]