Green Electricitywhitty/blackliquor/colloquium2006... · 2006. 8. 2. · June 6, 2006 4 Green...

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June 6, 2006 Green Electricity 1 Green Electricity Esa Vakkilainen

Transcript of Green Electricitywhitty/blackliquor/colloquium2006... · 2006. 8. 2. · June 6, 2006 4 Green...

Page 1: Green Electricitywhitty/blackliquor/colloquium2006... · 2006. 8. 2. · June 6, 2006 4 Green Electricity Kyoto Protocol - Excerpt and objectives • So far 122 countries have ratified

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Green Electricity

Esa Vakkilainen

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Why is green energy a hot topic?

• Energy costs make typically 10-15% of total paper production costs

• Energy costs are rising

• Emissions trading started in 2005

• Environmentally responsible production vital for corporate image

• Fierce competition on saturated markets

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Kyoto Protocol - Objectives

• Climate protection• Avoidance of climate changes and resulting catastrophes• Preservation of resources• Independence from fossil fuels imports• Sustainable development

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Kyoto Protocol - Excerpt and objectives

• So far 122 countries have ratified the Kyoto Protocol• Reduction of GHG – mainly CO2 – by 5,2 % until 2008 – 2012

from the level in 1990• EU reduction target: 8 %

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Kyoto Protocol

• USA has withdrawn (= 36 % of the CO2 emissions of this group)– USA pursues its own program with Japan, China, India and Australia

• The recently established national allocation plans for CO2 emission allowances → EU took the lead

– Emission cap and trading system – Subsidized electricity production from RES and CHP generation– Taxes on fossil fuels and CO2 emissions

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Greenhouse gases

• CO2 represents the predominant portion of all GHG emissions• More than 80 % of all CO2 emissions originate from combustion of fossil

fuels for energy production / transportation• Renewable energy sources (RES) are an alternative

– Hydro power– Wind– Solar and geothermal energy– Nuclear energy– Biomass (photosynthesis !)

• Combustion of biomass is CO2 neutral• After fossil fuels the most important energy source (covers about 20 %

of the global primary energy demand)• Efficiency is still low

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Implications for the P&P Industry

• P&P Industry is affected more than other industries → largest industrial user of wood

• Wood is the most important and versatile renewable raw material• Wood is globally the most important RES• The P&P industry is the single largest producer of renewable energy in Europe

(17 % of renewable energy and 28 % of “bioenergy”)• Forests and wood products are also carbon sinks• It is classified as energy intensive – European CO2 emission cap and trading

system• It is rapidly growing, more than 50 % between 1990 and 2010• The massive subsidies for electricity production from RES /wood

lead to raising wood and electricity prices

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Implications on the P&P Industry Cont.

• Opportunities, which existed for the P&P industry when the EU directives were implemented, could not be realized

– Electricity produced form biogen residues (black liquor, sludge) is excluded from subsidies (exception NL) – about 30 mio t/a in Europe

– Typically produced in efficient CHP plants– Internally produced electricity from bark and wood waste is also

excluded from the promotion schemes → increased outsourcing, which quite often prohibits CHP generation

– The combustion of wood for electricity production is subsidized,however, not internal CHP generation from biogen residues

• Declared objective of subsidized electricity production: promotion of new technologies to increase energy efficiency

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Ponderings

• The P&P industry is classified as energy intensive (together with steel, glass, cement, etc.) → emission intensive ?

• Europe: About 50 % of its power and heat demand is generated from biomass in highly efficient CHP plants

• World: P&P industry: 4 % of the world’s industrial energy consumption but only 1,2 % of fossil CO2 emissions

• System boundaries are critical because wood and wood products are raw materials, CO22 sinks and energy sources

• CEPI flow chart (2000): 36,6 Mt/a accessible /recovered paper (not recycled for P&B production)

– The heat value is about the same as of all fossil fuels utilized (520 PJ/a)

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Decrease use of water

Process integration on site

Increase heat value of biofuels

Maximum heat recoveryOptimal arrangements of

secondary heat

Effective power production

Items of Energy Efficiency Improvement

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New biomass power plants Finland 1/2

Oy Alholmens Kraft Ab, Pietarsaari– start up 2001, 240 MWe, process steam 100 MW and district heat 60 MW

Jämsänkosken Voima Oy, Jämsänkoski– start up 2002, boiler capacity 185 MW and turbine 46 MWe

Kymin Voima Oy, Kuusankoski– start up 2002, 85 MWe, process steam 125 MW and district heat 40 MW

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New biomass power plants Finland 2/2

Järvi-Suomen Voima Oy, Ristiina– start up 2002, 10 MWe and process steam 65 MW

Järvi-Suomen Voima Oy, Savonlinna– start up 2003, 17 MWe, process steam 20 MW and district heat 33 MW

Rauman Voima Oy, Rauma– start up 2006, boiler capacity 185 MW and turbine 46 MWe

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The boiler – Alholmens Kraft

• Annual proportion of fuels:– Peat 50%– Wood fuels 25% (LR, Bark)– Coal 25%

• 2.5 years of successful operation in open electricity market

• Operates with anything from 100% coal to 100% biofuel

• Combusts the fuels in any given combination while staying within the emission limits

• Consumes a truck load of peat in 7 minutes

• 30,000 truck deliveries annually• Furnace measures 8.5 by 24m and is

40m in height550MWth

194kg/s, 165bar, 545°C

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Fuel properties

FUELS Peat Coal Bark LR WCTotal moisture (%) 42 12 48-52 40-52 41.7

Ash (wt-%, D.S.) 6.8 12.5 2.5 2.5 3.3

Volatile matter 70.7 36.8 76.4 76.1 -

ULTIMATE ANALYSIS OF DRY SOLIDS (wt-%)

C 53.1 73.0 51.0 50.0 55.0

H 5.2 4.5 5.6 6.0 5.8

N 1.5 2 0.7 0.4 0.2

O 33.3 8.2 40.2 41.0 34.4

S 0.15 0.3 0.04 0.06 0.014

Cl 0.020 0.010 0.010 0.014 0.004

HEATING VALUE (MJ/kg)

HHV 20.5 27.0 21.9 21.1 19.6

LHV 10.9 22.5 9.2 8.1-10.2 9.6

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Steam consumption of the mill - evaporation

• The most important self consumption issues inside the recovery island are the dry solids of the entering wash liquor and the number of stages in the evaporating plant

– The difference in the evaporation energy need between 15 % and 17 % dry solids in the entering wash liquor is 15 %

– The maximum number of the stages in the evaporator is typically 7, or 7+ , if the steam from liquor heat treatment is taken into account. The latest studies about evaporation are for 8 stages, where the last stage grows considerably. Steam consumption with 8 stages is 4 % lowerthan with 6 stages

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Consumption and steam pressure levels of the mill

• Pressure levels in the fiber line– The needed temperature – cooking temperature– The needed pressure for moving material– The source is today the same – extraction or back pressure steam – place for

new ideas and systems• In a 200 kg/s steam generating boiler a 0.1 MPa change in back pressure

is equivalent to 3.5 – 4 MW change in power generation

• Exergy principle should be used in the system – integration– Sootblowing steam from the turbine

• 2.5 % vs. 5 % in steam consumption means with 200 kg/s steam production 1.5 – 2.0 MW in power generation, although the steam comes from extraction – if the steam would be from the boiler, the loss in power production would be 2.5 – 3 MW

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Power to heat ratio α

P- - +[ ]ΦST Φcirc ΦWP

α = =ΦH

P

ΦF Φcirc

ΦST

ΦW

P

ΦH

ηP ΦF

P=

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Total efficiency and power generation efficiency v.s. power to heat ratio

.

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Emission reduction costs and related emissions ->

feasible actions

Market price of allowancesElectricity market price,

fuel prices

Emission reduction targets of operators participating ET

Economic growth and

total emissions trend

1. Links to the other ET scheme’s

2. JI, CDM

3. sinks

The emissions trading mechanism

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Fuel competitiveness

Price for allowance € 5/tCO2 € 10/tCO2 € 20/tCO2

Natural gasHeavy fuel oilCoalPeatWood

1.01.41.71.90

2.02.83.43.80

4.05.66.77.60

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Widely homogeneous electricity price regions

P EBG

TR

MD

UA

EE

LVLT

BY

RUN

S

SF

DK

BNL

LF

IAL

BH YUMZ

CH A

PL

CZSKH

SLHR

D

GR

BNL

LF

IAL

BH YUMZ

CH A

PL

CZSKH

SLHR

D

RO

BIH

Price regions • Homogeneous electricity price regions will remain for the foreseeable future

• Emission Allowance Market will be European wide

• Two markets, two price mechanisms to be dealt with simultaneously

Expected Developments

Electricity price

GB

Emission Allowance price regions

Emission Allowance market will have different effect to different price regions depending on market mechanism and production structure

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0

10

20

30

40

50

60

TWh/a

Electricity Price EUR/MWh

Hydro powerCHP industry Nuclear power

CHP, districtheating

Condensing power

Gas turbines

Consumption

Maximum electricity price increase €/MWh = 0,8 * x €/tCO2

Marginal production cost

Maximum impact on electricity price – Nordic market as an example

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0,0

50,0

100,0

150,0

200,0

250,0

300,0

350,0

Austria

Belgium

Denmark

Finland

France

German

yGree

ceIre

land

Italy

Netherl

ands

Portugal

SpainSwed

en UKEsto

niaLatv

iaPolan

dRoman

iaSlova

kiaSlove

niaPJ

Other biomass resourcesRefined wood fuelsWood wastesDomestic (residential) firewoodIndustrial black liquorsIndustrial by-products (solid)Forest residues

Source: Vesterinen, Alakangas, EU Altener report,2001 1 Mtoe = 41 PJ

Current Bioenergy Consumption in Europe, 1800 PJ - 44 Mtoe/a

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Finnish Targets - bioenergy will dominate up to 2025, new biomass-based fuels will be introduced

0

100

200

300

400

500

600

1995 2001 2005 2010 2025

Heat pumpsSolar heatSolar PVHydropower (<10 MW)Hydropower (>10 MW)Liquid fuels for transportAgrobiomassBiogasREFForest chipsFirewood excl.forest chipsIndustrial wood residuesBlack liquors

PJ

256317

359412

508

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EU Target - bioenergy will replace wood traditionally used for forest industry

European Environment Agency, 2006

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Forest biomassin future also

urban waste and strawBiofuel production

Biofuels:pelletsbio crudeEtOH/MeOH

Bark

Woodresidues

Pulp & PaperMill

Woodhandling

Barkboiler

PowerHeat

PowerSteam

Refinery

Crude Oil

BioPower

Options for forest industry

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0

5

10

15

20

25

30

35

40 60 80 100 120 140

Chemrec, BaseMTCI, BaseLT/O2, Base

LT/O2, PressurisedLT/air, BaseLT/air, Pressurised

Additional Electricity Output of Power Plant, MW

Elec

tric

ity C

ost,

euro

/MW

h

Stand-alone mill

Integrated P&P mill

Notes: back-pressure power output of reference recovery boiler: 79 MWSource: P.McKeough, VTT

Black-Liquor Gasification - Costs of Additional Electricity

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Use of biomass to fire lime kiln is commercial!