biomass chp a sustainable solution for jelgava heat...
TRANSCRIPT
Ginta Cimdiņa
Chairperson of the Board, Fortum Jelgava
„Innovative Sustainable Energy Solutions for Smart Cities and Communities”
Riga, October 18, 2013
Biomass CHP – a sustainable
solution for Jelgava heat supply
What is Fortum?
2
TGC-1 (~25%)
Power generation ~7 TWh
Heat sales ~8 TWh
OAO Fortum
Power generation 19.2 TWh
Heat sales 26.4 TWh
Russia
Poland Power generation 0.8 TWh
Heat sales 4.3 TWh
Baltic countries Power generation 0.4 TWh
Heat sales 0.9 TWh
Nordic countries
Power generation 51.6 TWh
Heat sales 14.5 TWh
Distribution customers 1.6 million
Electricity customers 1.2 million
Nr 3 Power
generation
Electricity
sales
Nr 2
Nr 1 Heat
Distribution
Nr 1
Key figures 2012 Sales EUR 6.2 bn
Operating profit EUR 1.9 bn
Balance sheet EUR 25 bn
Personnel 10,400
Great Britain Power generation 1.1 TWh
Heat sales 1.8 TWh
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Fortum is the world’s 4th largest heat producer with operations in 8 countries
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• Listed at the Helsinki Stock Exchange since 1998
• Over 90,000 shareholders
• CHP/condensing production in over 30 plants
Small scale heat production in over 700 heat-only boilers
Operations in over 200 district heating networks located in 80
cities
• Industrial heat and steam supply for over 250 industrial customers
• Management model under two divisions
Heat: Sweden, Finland, Norway, Poland and Baltic countries
Russia: OAO Fortum (former TGC-10) and ~25% in TGC-1
Foreign
investors
30.5% The Finnish
state
50.8%
Other Finnish
investors 8.9%
Households 7.1%
Financial and insurance
institutions 2.7%
Heat Market in Latvia / Top 9 cities
4
Territorial
unit
Heat
production
(GWh)
Market
share
LATVIA 6 944
Rīga 3 484 50%
Daugavpils 467 7%
Jelgava 213 3%
Jēkabpils 89 1%
Jūrmala 164 2%
Liepāja 288 4%
Rēzekne 163 2%
Valmiera 106 2%
Ventspils 217 3%
Source: CSB
3 484
467
106
163 288
217
213
164
89
Next generation energy company: mission and strategy
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Strategy
Fortum’s purpose is to create energy that improves life for present and future
generations. We provide sustainable solutions to the society and deliver
excellent value to our shareholders
Mission
Build on the strong
Nordic core
Create solid earnings growth in Russia
Build platform for future growth
Competence in CO2-free hydro and nuclear,
efficient CHP production and energy markets
Fortum Jelgava
• Shareholders: 100% owned by Finnish energy corporation Fortum
• DH operator in Jelgava since 2008
• Concession of DH assets for 30 years from the city of Jelgava
In 2012:
• Heat sales: 200 GWh
• Heat losses: 15.6%
• Length of network: 72.4 km
• Heat customers: 388 contracts
residential customers: 78%
business customers: 22%
• Electricity produced per annum:
from natural gas 33 GW
from biomass 110 GW
• Employees 93
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Jelgava district heating system in 2008 - 2009
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Filozofu
0.8MW
Ganību II
4,6 MWth/3,9 MWel
Ganību I
113MW Skautu
0.3MW
Instituta
0.9MW
Kalnciema
2.5MW
Aviacijas
28MW
Neretas
1MW
Rupniecibas
53MW
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Investments in Jelgava DH system in 2008 - 2009
• CHP plant at Ganību iela
• Installed capacity : 4,6 MWth/3,9 MWel
• In operation since 2009
• Fuel – natural gas
• 4 gas engines
• Boiler palnt at Aviācijas iela
• Installed capacity: 28MW
• In operation since 2008
• Fuel – natural gas
• 3 HOBs
• DH network
• 9 km constructed
Total investments – 12,3 MEUR
What has changed since 2005?
• The price of natural gas has increased by
300%
• Excise tax for natural gas that is used as
fuel has been implemented
• Electricity price has increased 2 times
• VAT for heat energy for residential
consumers has been implemented
0
50
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300
350
jan
.05
jūl.0
5
jan
.06
jūl.0
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jan
.07
jūl.0
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jan
.08
jūl.0
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jan
.09
jūl.0
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jan
.10
jūl.1
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jan
.11
jūl.1
1
jan
.12
jūl.1
2
%
During the time period from January 2005 till July 2012
Importētās Krievijas gāzes cenu procentuālāssvārstības (%) *
Latvijas koksnes enerģētiskās šķeldas cenuprocentuālās svārstības (%)
Gāzes cenu tendence
Šķeldas cenu tendence
Gas and biomass price development
+300 %
* Source: Latvijas gāze (tariffs for industrial customers the largest group)
+85 %
10
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Heat energy tarrifs in Jelgava 2005 – 2013
20
30
40
50
21,51
54,33
47,51
43,01
Jelgava biomass CHP Plant
• Jelgava biomass CHP plant will provide up to
85% percent of Jelgava district heating load
• Installed capacity - 23MW for electricity and -
45MW for heat. The plant will generate 230
GWh of heat and 110 GWh of electricity per
year
• Fuel – biomass (woodchips)
• Total investment in Jelgava CHP plant –
70 million Euros in plant and associated
infrastructure constructions, added 6 million
Euros have been allocated from the EU funds
• Commissioned – September 2013
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Site at Rūpniecības iela, Jelgava, in 2008
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Fortum biomass CHP in Jelgava, June 2012
Fortum biomass CHP in Jelgava, June 2013
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Ganību HOB
110 MW
Ganību CHP
4.6 MWth/4 MWel
Kalnciema
2.5 MW
Aviācijas
28 MW
Neretas
1MW
Skautu
0.3 MW
Rūpniecības BIO CHP
45 MWth/23 MWel Rūpniecības
HOB 23 MW
Vapor 8 MW
16
Jelgava DH system and heat sources from autumn 2013
The first interconnection of DH systems in Latvia under the river
• Aim of the project – to connect the right
bank and the left bank district heating
systems in order to provide district heating
from the new biomass CHP plant
• Total length – 1408 m, from which 380 m are
under the river
• Construction finalized in Q4, 2012
• Total costs – around 2 million Euro
Existing production and new heat supply after Bio CHP start-up
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Gas boilers
Gas CHP > 4MW
Existing MW
Days
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70
80
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New MW
Days
Bio CHP capacity is almost fully utilized during the heating season/
Gas boilers (only for peak hours)
Bio CHP 23MW ( working hours ~ 5200 h)
Gas CHP < 4MW (working hours ~ 8050 h)
Existing District
heating gas boilers
where from 70`s and
needed replacement.
Time schedule
• Environmental impact assessment 27.04.2011.
• Investment decision 14.06.2011.
• Civil works started 03.08.2011.
• Construction works started 25.06.2012.
• First firing with gas 16.04.2013.
• First firing with biomass 17.05.2013.
• Synchronization with the grid 13.06.2013.
• Start of trial run 15.07.2013.
• Commissioning 11.09.2013.
Key indicators
– Fuel power – 77 MWfuel
– District capacity – 45 MWdh
– Electricity capacity – 23 MWe
– Condensing capacity – 30 MWth
– Estimated DH produced – 230 GWh
– Generated backpressure electricity – 110 GWh
– Plant efficiency – 88%
– 7 local fuel suppliers
– Fuel supply in summer 10 – 12 trucks/day
– Fuel supply in winter 25 – 30 trucks/day
– Staff – 30 engineers and operators; 5 shifts each 12h
Bubbling Fluidized Bed Boiler
Fuel tanks
Furnice
Stack
Flue gas filters
Fuel feeding
openings
Superheater
Boiler parameters:
Input capacity: 76 MW
Minimum load: 35%
Steam capacity: 26 kg/s
Steam temperature: 527 C
Steam pressure: 117 bar
Temp.in the furnice: 850C – 1000C
22
Fuel Supply
weights Fuel receiving in
a storage Fuel feeding to
the boiler
Samples for the
laboratory to test heat
capacity (MWh/t)
Paying for the
fuel (LVL/MWh)
10-12 trucks/day in summer
25-30 trukcs/day in winter 500 000 m3/year or 400 000 MWh
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Benefits for Jelgava
• Previous production was 100% natural gas based, using boiler houses from 70`s
• Imported fossil fuel replaced by renewable, local
• Fortum’s total investment during 2008-2013 totals ~ 90 M€, including DH network renovation;
interconnection of two DH systems under river and replacement of all heat production units, including
BioCHP CO2 emissions will reduce by 75% .. 90%
• Fuel efficiency – 90 %
• More competitive and predictable district heating price
CO2 emissions from heat production CO2/kWh
0
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2005 2006 2007 2008 2009 2010 2011 2013 2015 2018 2020
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Heat energy tariffs, Ls/MWh
Current
From
December 1st
32
.27
33
.98
34
.15
35
.00
35
.62
36
.18
37
.31
38
.35
38
.90
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.15
39
.28
39
.37
39
.80
40
.12
40
.19
40
.59
40
.99
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.02
42
.12
42
.49
42
.74
42
.96
43
.07
43
.23
43
.77
43
.94
44
.01
44
.42
44
.68
46
.33
47
.01
48
.21
49
.77
51
.60
52
.99
0.00
10.00
20.00
30.00
40.00
50.00
60.00
(Tariff is set at sales price of natural gas up to 205 Ls/thous.nm3) (green- wood chips, red - CHP, natural gas- HOBs)
Tartu, Estonia bio/peat CHP 25 MWel/50 MWth in
operation since 2009
Total investment 75 MEUR
Pärnu, Estonia bio/peat CHP 23 MWel/45 MWth
in operation since 2010
Total investment 80 MEUR
Klaipeda, Lithuania WtoE CHP 20 MWel/50 MWth
in operation since May 2013
Total investment 130 MEUR
Jelgava, Latvia bio CHP 23 MWel/45 MWth
in operation since September 2013
Total investment 70 MEUR
Fortum’s recent investments in the Baltics in local fuel based CHPs
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CHP-integrated pyrolysis oil production
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Next generation CHP with integrated concepts
Why is this important?
•Aim for higher power/heat ratio
•Competition in fuels -> fuel flexibility
•Slow growth or decrease of heat loads
•Load factor (4000 -> 8000 hours/a)
•Integrated concepts could provide new
business opportunities and products
CHP plant
“Biorefinery”
Industry
District
heating, cooling
Examples of integrated concepts
Pyrolysis oil
Torrefaction (bio coal)
Gasification (SNG, traffic fuels, green
chemicals)
Ethanol (1st and 2nd generation)
Heat driven cooling
Desalination
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Pyrolysis oil – a domestic alternative for fossil oils
• Bio oil is produced from biomass like forest residues and
other forest industry by-products
• Energy density of bio oil is high compared to unprocessed
biomass
– Bio oil can be economically transported longer distances to be
utilised in heat and steam production
– Heating value of bio oil is about half compared to fossil oils
• Bio oil can be used for replacing heavy fuel oil
• In the future bio oil can be a raw material for carbon lean
chemicals and traffic fuels
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Thank you!
www.fortum.com & www.fortum.lv