european ws heat not waste 130612 neu - e- · pdf filemake heat, not waste ... biogas issues...

June 12, 2012

Make heat, not wasteLearning from practice

Christof Amann

Christof Amann – June 2013

Context

● European Union 20-20-20 goals 20% less GHG emissions (compared to 1990) 20% less final energy consumption (compared to projection 2007) =

20% increase of energy efficiency 20% share of final energy produced from renewable resources

● EU Commitment to low-carbon economy 2050

● Renewable Energy Directive

● Increasing awareness on energy efficiency, climate change ...

● Reduced public budgets


International Figures and Trends

● Appr. 10.000 biogas plants in 2012 (2/3 in GER), 5.000 MWel

● Future market growth outside of Europe (US, Can, China, India, Japan)

● Increase of average size of plants


Challenges in the biogas market

● Biogas production plays an important role in the context of the energy turnaround towards a low-carbon economy

● However, in many cases heat produced in biogas plants is not utilized, but wasted totally or to a large extent

● Changes in political discussion and public awareness Economic performace of biogas plants highly depends on public funding (investment

subsidies, feed-in tarriffs) High political competition concerning public subsidies: high efficient systems (high benefits

for society and/or environment) will have an advantage Political discussion on high energy tariffs as a result of subsidies for RES Smart grids: increasing need for load management as a result of decentralized feed-in of

alternative/renewable electricity (photovoltaics, micro-CHPs, wind-turbines)


Challenges for biogas plants

● Fluctuation in substrate prices increases uncertainty and influences profitability; need for new instruments for the financial markets (risk management)

● Financing of new or renovated plants requires high-quality business plans including heat use concepts

● Mostly, biogas plants are located far away from cities or other large heat consumers

● Main income comes from power production

● Economic situation does not allow re-investment or expansion of the plant

● (Unregulated) Heat market is different to (highly regulated) green electricity market


Overall heat demand will be decreasing in the coming decades

Source: e7/FGW


Heat production and heat demanddo not fit

Source: HEI Consulting GmbH 2008


Further specific characteristicsof the heat market

● Heat with low temperature has a low share of exergy (compared to electricity) - heat price is lower

● Heat is simple to produce - there are lots of reasonable alternatives for heat consumers

● Heat is difficult to store for long periods and to transport on long distances (losses)

● Heat transport is expensive (compared to electricity or gas)

● Heat providers sell base-load (cheap) and peak-load (expensive); biogas plants produce only base-load

● Difficult negotiation position for heat (only one customer)


Biogas: Heat Use Options

Source: Rutz, D. et al. 2012: Sustainable Heat Use of Biogas Plants. A Handbook.


Heat Utilisation in EuropeResults from Expert Interviews

● Level of heat utilisation in biogas plants is quite different in Europe Some countries (e.g. Denmark) have a long tradition in using heat for district heating

networks In most European countries the original focus was on the production of green electricity, and

it still is Heat use is a topic in more or less all countries now, in some cases discussion just started Legal requirements on heat use exist in most countries, but the requirements vary to a large

extent

● Major driver for heat utilisation is to provide extra income Selling of a otherwise wasted good Additional subsidies or higher feed-in tariffs

● In some cases legal requirements are very high, leading to a decelerated development (e.g. CHP-Bonus in Austria, Germany)


Success factors, good practice instruments

● Competitive heat price Tax reduction for heat from biogas plants (e.g. Denmark) CHP bonus for efficient biogas plants (e.g. Austria, Czech Republic) Dimensioning of biogas plant (optimal size)

considerung the actual heat demand and feed-in tariffs availability of nearby substrates

Use on own facility

● Co-operation of farmers

● Communication with other biogas plant operators (sharing of experience)

● Public relations, especially when the biogas plant should be located near a city or municipality

● Clear regulations with a long term perspective

● Increasing of energy prices of fossil fuels


What is Important for the Future

● Similar to real estate, the location of new biogas plants is probably the most crucial factor for the utilisation of the heat Cheap and stable availability of substrates Short distance to demand of heat or gas

● Development of new biogas plants will increasingly need the involvement of experienced planners and project developers to ensure a solid technical and economical basis

● External financing and public funding will only be possible for high efficient, well designed plants, including a heat use concept

● In most countries investigated, upgrading of biogas and feed-in into existing gas-grids is seen as very interesting alternative to producing electricity and finally heat (households, commerce, industry, but also power plants)

● There is a clear trend to bigger plants (economy of scale), especially when talking about upgrading of biogas


Recommendations

● Existing plants: enhancement of heat utilization

● New plants Thorough assessment of location Feasibility check of all possible options (biomethane, CHP) Strong long-term committment of heat consumers necessary Securing long-term supply of subtrates from agriculture, industry or

municipalities

● Regulatory and financial framework conditions: Clear and reliable, including market elements

● No standard solution available, each plant has to be developed from scratch (however, technology is available)


Contact

Christof Amanne7 Energie Markt Analyse GmbH

Theresianumgasse 7/1/81040 Vienna+43-1-907 80 [email protected]


Heat Utilisation in EuropeResults from Expert Interviews

● DK quite high heat utilization, heat from biogas plants is untaxed (or lower taxed); limitations for pricing of heat; low

heat demand in summer, locations of biogas plants feed-in tariffs, subsidies for investment; subsidies for upgrading options: CHP, upgrading (large plants) growth of large centralized plants Centralized biogas plants (group of farmers) instead of farm biogas


● LV increasing awareness on heat use, already some examples driver: only economic; high investment cost (was not required as an obligatory measure); banks are not willing

to give a loan unclear production - consumer subsidies necessary none of existing incentives were successful upgrading: unrealistic due to missing regulation pessimistic, new renewable energy support scheme will stop development heat use requires appropriate location solution: greenhouse heating, diversification of activities district heating most promising option, but in some cases monopooly rights heat price is not competetive; feed-in tarift too high heat use options should be planned from the start support for heat production (RES) instead of CHP lack of expertise investment subsidies instead of feed-in tariffs installed capacity should have been chosen more carefully


Germany

EEG 2012: 60% heat utilization requirement, removement of the CHP-bonus >> this will limit biogas projects Energiewende focuses on electricity, strong incentives in new heating networks are missing location is a main barrier no incentives for heat concepts in existing plants information on heat use possibilities - information plate 1.500 new in 2011, 600 in 2012, 300 in 2013 - booming period is over banks will be more careful as the 60% heat utilization is a risk perfect situation: heat used in industry find a good location public acceptance

most biogas plants were installed without heat concept, but operators try to find possibilities -- increasing acceptance of biogas

potential difficult to measure heat is used for additional income residentiál buidings need not very much heat neu EEG: all small CHP are summed up, lower (too low) tariff BAFA for heat distribution is successful ORC is a good technology and widely used for geothermal energy, efficiency of 20%, not very helpful,

consuming a lot of heat to produce a lot of heat - it is heat wasting, actually Industry (slaughterhouses, breweries): very efficient fossil fuels become more expensive saving public swimming pools from closing


CR

focus on electricity financial drivers, opportunity for additional income lack of technological knowhow among investors investors are not thinking beyond "turn key" equipment biogas framework is not aimed at heat utilization communication and cooperation needed development of renewable heat market existing conditions n>50% is easy to achieve most promising: CHP, Biomethane, Digestate drying research to facilitate improvements in practical application expansion is expected development of heat use depends on financial capabilities of investors distance between plants and consumers is a problem no heat use concept required in the old subsidy scheme 2007, new: from 300kwel only successful model: own heat demand within its facility communicaton between operators low capacity of personnel in authorities economies of scale


biogas für greenhouses overall system for heat use from biogas plants is in disorder additional investments and additional thing to worry about missing: incentive price for heat, or subsidised investment cost too much focus on electricity production lack of knowledge joint committee of ministry of agriculture and ministry of economy would help connection of agricultural production and waste heat best options: CHP, raw biogas supply of distant CHP, digestate drying research in the combination of heat and greenhouses (high demand for out of season strawberries, exotic fruits general development: positive specific development: depends on knowledge/information of investors only successful model: own heat demand within its facility or nearby heat consumer crucial: project planning and awareness rising biogas issues should be placed in a political focus investors that do not have a background either in agriculture or engineering perceive heat utilisation as

something unknown energy coopeartives


4 operating biogas plants, 2 use heat fully in greenhouses 100s plants pending in the permitting process, very few have a heat utilisation concept location, building of heat consumers are necessary current heat prices from public district heating companies are too low to compete biogas plants must be built on industrial land general absence of heat utilisation infrastructure bad or lack of national policy for biogas heat utilisation feed in tarrifs for heat or incentives for investments exemption of some fees best options CHP, biomethane, biogas fuel sales, digestate drying (last options); sterling engines general future: positive, waste management, large agro-food companies as carriers, development of energy

villages incorperation of CHP in industrial zones (heat infrastructure is missing) green heat certificates would help responsible with the capabilities to understand the topic additional investment cost condito sine qua non: establishing a joint biogas body of responsible ministries


CZ

large majority utilize only 10 or 5% of gross heat production sizing of plants did not pay attention on heat demand (the larger the plant, the better) of 250 plants, only 5-10% use more than 10%! investement support schemes as main driver (condition that heat is used by 20-50%) - heating of pathways or

empty stables, CHP without flue gas heat exchanger (until 2012) from 2013: green bonus for CHP; regulator to assess usefulness of heat use location: combination of capacity and location, mostly no heat demand increased CHP bonus for CHP (20 EUR/MWhel) most important options: CHP, Biomethane, local district heating research on fishery, mobile heat accumulators and digestate drying general outlook: no new projects after 2013 specific outlook: ORC for bigger plants, additional CHP; if digestate drying will be eligible >> mass scale

practice presently, no high stimuli for heat use successful models: satellite CHP (max. 5 km); drying of agricultural goods; fish breeding; biogas plant or CHP

in industrial area; digestate drying important: far-sighted investor and skilful and hardworking project manager (farmer would not be able)


IT

heat use is very uncommon good subsidy policy needed for heat use problem: location of plants, distance to heat demand stronger policy is needed: premium for heat use is weak (energy efficiency premium: 4 ct/kWh) ORC engine is added to CHP power >> lower feed in tariff; should be accounted as energy efficiency

improvement most important option: biomethane; digestate drying is an interesting solution, still too expensive; distant CHP

could work new concepts for heat use best working business case: group of farmers, find most suitable place necessary: premium; communication campain for public acceptance


AT/Verband

durchschnittlicher brennstoffnutzungsgrad in AT: 64%; nel = 36-37%; rest wärme, 10-15% eigenbedarf breites spektrum an wärmenutzung, sind auf gutem weg früher fokus rein auf ökostromproduktion nahwärmenetze wurden angeschlossen (praktisch ausgereizt; max 2.000 volllaststunden), trocknung: getreide,

kürbis, mais, hackschnitzel (da ist noch einiges möglich, man sollte breit aufgestellt sein) biogasanlagen aus raumordnungsgründen weit von siedlungen entfernt gebaut für kwk-bonus brennstoffnutzungrad > 73% für wärmenutzung: relativ schwierig, da man nur niedrigtemperatur (60-70 grad) anbieten kann; für trocknung

bedeutet die niedrige temperatur geringere effizienz, da der prozess länger dauert industrielle wärme: temperaturniveau zu niedrig eher anreize: kwk-bonus: 73% ist sehr hoch; eine zwischenstufe wäre günstig wärmekosten bei heizwerken liegen zw. 0,5 und 1,5 ct/kWh (d.h. max 1/10 der erlöse aus wärme); keine

ausfallgarantie externe KWK: gibt es in einigen wenigen fällen ORC-prozess rechnet sich nicht, da brennstoffnutzungsgrad von 73% nicht erreicht wird für kwk-bonus hoffnung, dass es wieder einen aufschwung gibt wärmenutzung spielt bei zukünftigen anlagen eine große rolle, durch den kwk-bonus: standortplanung wird

wichtiger, nähe zu heizwerken, größeren orten, industrie mit satelliten bhkw ab 750 kw: biomethan; kleinere anlagen: ökostromerzeugung, kritisch ist der nachfolgetarif; entscheidend der

ökostrom potenziale sind ausgeschöpft; eigen wärmenutzung - banken müssen mitspielen, sind aber vorsichtiger

geworden; ohne wärmenutzungskonzept braucht man nicht zur bank gehen


AT/e-Control

derzeit im betrieb viele wirtschaftliche probleme ansätze: rohstoffkostenzuschlag, betriebskostenzuschlag bau neuer anlagen werden kritisch gesehen, wenn, dann biomethan ziel war förderung einer technologie zur marktreife, aber kosten steigen, effekt ist nicht eingetreten fremdkapitalbeschaffung schwierig, banken sagen zu biomasse nein derzeit pauschal neue anlagen: am besten in der nähe eines fernwärmenetzes, reicht aber oft nicht, trocknung als ergänzung finanziert wird vom ökostromgesetz nur stromerzeugung und einspeisung möglichkeit, mit virtuellem biogas ökostromanlage zu betreiben bestehende anlagen sollten so lange laufen, bis sie mehr oder weniger ausbezahlt sind

european ws heat not waste 130612 neu - e- · pdf filemake heat, not waste ... biogas issues...

Documents