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Proposal : Research the viability of pellet heating in Australia Graham Palmer MIET2127 October...
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Transcript of Proposal : Research the viability of pellet heating in Australia Graham Palmer MIET2127 October...
Proposal : Research the viability of pellet heating in
Australia
Graham PalmerMIET2127
October 2006
Introduction
• What is pellet heating?• Pellet heaters• Characteristics• Existing pellet markets• Logistics of pellet heating market• Heater market in Australia• Opportunities• What next?
What is pellet heating?
• Small pellets manufactured from wood dust without additives
• Potential to revolutionise wood heating
• High efficiency
• Low emissions
• Automatic operation
• More expensive than log burners
Pellet heater
Pellet space heaters
Pellet boiler - Kunzel
Characteristics• Energy density 18 MJ/kg
– 3 to 4 times more energy than timber per unit volume
• Efficiency 80 to > 90%– Open fire 10%, combustion 40-60%
• Ash content < 5%– Empty tray few times a year
• Emissions– Biomass emissions have decreased by 3
orders of magnitude in 2 decades
Historical emissions improvement- measured biomass heater in Austria
Source : Rakos (2002)
Existing markets
• Sweden, Austria, Germany etc - already using wood + mix of other fuels including gas, oil, coal, electric
• US - high mains gas, electric + some oil• UK - high mains gas penetration +
some oil• Australia - one importer and one
manufacturer
Results of a subsidy scheme in Salzburg (Rakos, 2001)
Pellet production by country 2005 (tonnes)
Note: Australian price for pellets $360/tonne
Sources: Bioenergy International December 2005 (see note in text); Wood Pellet Association of Canada
Sweden 1,356,000 Two plants producing over 130,000 tonnes per year, 15 producing over 30,000 tonnes
Canada 1,000,000 Five plants over 80,000 tonnes, several plants in the 200,000-tonne range
Russia 758,000 Two 100,000-tonne plants, seven over 30,000 tonnes
USA 600,000
Denmark 535,000 One 280,000-tonne plant and two over 80,000 tonnes
Finland 460,000 Six plants over 30,000 tonnes
Austria 409,000 Four plants over 30,000 tonnes, three in 80,000-100,000 tonne range
Germany 388,000 Six plants over 30,000 tonnes
Poland 356,000 One 100,000 tonne plant and three over 30,000 tonnes
Estonia 345,000 Three plants over 80,000 tonnes
Key logistical issues
• Pellet manufacture– Quality– Reliability of supply– Sufficient competition
• Pellet distribution and logistics– Bulk– Bagged
• Pellet burners and boilers
Economics of pellet heating• Economics of existing heating
– Gas - ducted, wall, hydronic– Electric element– Electric reverse cycle - ducted, wall, split– Wood - open fire, combustion, pot belly– Oil– Floor slab– Solar
• Economics of pellet heating– Heaters– Pellets– Pelletising equipment– Distribution
The pellet paradox
• No-one will buy a heater without access to pellets
• No-one will maufacture pellets unless there are heaters to make use of them
• Europe overcame problem because importing was feasible, and fuel costs of competitors are higher
Main reason for purchasing heater - Australia
Source : ABS (2005)
Heating in Australia
Source : ABS (2005)
Opportunities
• Victorian timber communities– Cool climate, access to raw material, log
burning already, no mains gas
• Launceston– Cool climate, access to raw material,
problem with particulate pollution from log fires
Cost of pellets in Melbourne(updated since original presentation)
• 2006 $360/tonne
• 2008 $475/tonne
• 2009 $600/tonne
• little competition and captive market
• Assuming 18 MJ/kg, $600/tonne equates to 3.3 cents/MJ – compare gas at 1 cent/MJ and electricity 5.6 cents/MJ (20 cents/kWh)
Economic
• Support local industry
• Competitive except with mains gas
• Develop regional industry
Social
• Maintain energy autonomy within a regional district
• Consumers may prefer pellet heating
• Greenhouse challenge front runner
Environment
• Net greenhouse benefit• Less particulate pollution• Increased resources for
forest management• High efficiency• Close the carbon loop
TBL Analysis
Users
• Consumers• Retailers• Installers
Creators
• Appliance manufacturers
• Pellet manufacturers• Manufacturer
associations
Supporters
• Australian Greenhouse Office
• Sustainability Victoria• RMIT• Investors
Interested parties
What next?
• Complete a credible report on performance, environmental impacts, economics and market opportunities of pellet heating
• Bring together interested parties• Lobby for support• Greenhouse a big issue• Part of the biomass debate (enthanol, biodiesel,
biogas)• May be cost effective outside of mains gas• Local pollution in urban areas