CBP seminar - Session 3

-Oportunities and barriers

-Current trade

-Co-firing – Danish case

CBP Kuala Lumpur , Malaysia

JONAS DAHL

Danish Technological Institute

OPPORTUNITIES AND BARRIERSOPPORTUNITIES AND BARRIERSOPPORTUNITIES AND BARRIERSOPPORTUNITIES AND BARRIERS

FOR MALAYSIAN BM TO EUROPEFOR MALAYSIAN BM TO EUROPEFOR MALAYSIAN BM TO EUROPEFOR MALAYSIAN BM TO EUROPE

Opportunities biomass Europe

- Drivers the 20-20-20 target

Miising figure �

Source:

“Biomass co-firing in modern, largescale coal power plants is efficient, cost-effective and requires moderate additional investment.

In general, combustion efficiency of biomass can be 10 percentage points lower than for coal at the same installation, but co-firing efficiency in large-scale coal plants (35%-45%) is higher than the efficiency of biomass-dedicated plants.

In the case of cocombustion of up to 5%-10% of biomass (in energy terms) only minor changes in the handling equipment are needed and the boiler is not noticeably derated.

For biomass exceeding 10% or if biomass and coal are burned separately, then changes in mills, burners and dryers are needed. In addition, coal ashes that are used to produce construction materials should not be contaminated with tar and alkali metals-rich ash from biomass.”

Opportunity - Co-firing

Oportunity – Potential for Co-firing NW Europe

Assumption: 5% co-firing in existing coal power plants => 33 mil ton wood pellets / year needed

(present global production is 10 mil)

Source: Schouwenberg, 2010

Source: Junginger, www.eubionet.net, 2010

Utilities using or planning to use biopellets for Utilities using or planning to use biopellets for Utilities using or planning to use biopellets for Utilities using or planning to use biopellets for

cocococo----firing in Europe firing in Europe firing in Europe firing in Europe

n GDFSUEZGDFSUEZGDFSUEZGDFSUEZ www.gdfsuez.comwww.gdfsuez.comwww.gdfsuez.comwww.gdfsuez.com (Belgium)(Belgium)(Belgium)(Belgium)

n RWE RWE RWE RWE www.rwe.comwww.rwe.comwww.rwe.comwww.rwe.com (Germany)(Germany)(Germany)(Germany)

n EON EON EON EON www.eon.comwww.eon.comwww.eon.comwww.eon.com (Germany, UK)(Germany, UK)(Germany, UK)(Germany, UK)

n FORTUM FORTUM FORTUM FORTUM www.fortum.comwww.fortum.comwww.fortum.comwww.fortum.com (Sweden)(Sweden)(Sweden)(Sweden)

n DRAX DRAX DRAX DRAX www.draxgroup.plc.ukwww.draxgroup.plc.ukwww.draxgroup.plc.ukwww.draxgroup.plc.uk (UK)(UK)(UK)(UK)

n VATTENFALL VATTENFALL VATTENFALL VATTENFALL www.vattenfall.dewww.vattenfall.dewww.vattenfall.dewww.vattenfall.de (Sweden, Denmark, Netherlands)(Sweden, Denmark, Netherlands)(Sweden, Denmark, Netherlands)(Sweden, Denmark, Netherlands)

n DONG DONG DONG DONG www.dongenergy.comwww.dongenergy.comwww.dongenergy.comwww.dongenergy.com (Denmark)(Denmark)(Denmark)(Denmark)

(2008)

Source: www.pelletsatlas.info

European Pellet utlization versus production

(2008)

Source: www.pelletsatlas.info, Junginger, www.eubionet.net

European pellet utilization versus production

• Total imports EU 2009 ~ 3.4 million tonnes; about half intra-EU trade.• Total export ~ 2.7 million tonnes, predominantly intra –EU trade.

Import from outside EU will grow in the future !!!!

Pellets utilisation in Europe Pellets utilisation in Europe Pellets utilisation in Europe Pellets utilisation in Europe

Source: Junginger , 2011

Potential Barriers

Opportunities export to Europe Opportunities export to Europe Opportunities export to Europe Opportunities export to Europe

n Hugh demand in Europe for biomass => Hugh demand in Europe for biomass => Hugh demand in Europe for biomass => Hugh demand in Europe for biomass =>

Solid biomass the most likely for reaching RE goals Solid biomass the most likely for reaching RE goals Solid biomass the most likely for reaching RE goals Solid biomass the most likely for reaching RE goals

n A large part of this Biomass will have to imported from outside A large part of this Biomass will have to imported from outside A large part of this Biomass will have to imported from outside A large part of this Biomass will have to imported from outside EUEUEUEU

n Large part by cofiring in power plants Large part by cofiring in power plants Large part by cofiring in power plants Large part by cofiring in power plants

Potential Barriers for malaysian biomass Potential Barriers for malaysian biomass Potential Barriers for malaysian biomass Potential Barriers for malaysian biomass

(EFB, Rice Husk, PKS(EFB, Rice Husk, PKS(EFB, Rice Husk, PKS(EFB, Rice Husk, PKS…………

n Most EU utlilty coMost EU utlilty coMost EU utlilty coMost EU utlilty co----firing utilisations are based on wood pellets firing utilisations are based on wood pellets firing utilisations are based on wood pellets firing utilisations are based on wood pellets

n Any biomas with ashAny biomas with ashAny biomas with ashAny biomas with ash----content above 3 % will need case by case content above 3 % will need case by case content above 3 % will need case by case content above 3 % will need case by case

attention attention attention attention –––– no standards covering these types of fuels no standards covering these types of fuels no standards covering these types of fuels no standards covering these types of fuels

n Political aspects of using palmoil residues Political aspects of using palmoil residues Political aspects of using palmoil residues Political aspects of using palmoil residues

n …………....

Other markets? Other markets? Other markets? Other markets?

Biofuel Pelleting. Biofuel Pelleting. Biofuel Pelleting. Biofuel Pelleting.

Current and Future new perspectives worldwide Current and Future new perspectives worldwide Current and Future new perspectives worldwide Current and Future new perspectives worldwide

Current Biofuel pelleting regions Potential regions Current main Biofuel pellets markets

Source: Pandrup Christensen, Andritz-sprouit Matador, 2010

Pelletprices payed by large power producers (CIF)Pelletprices payed by large power producers (CIF)Pelletprices payed by large power producers (CIF)Pelletprices payed by large power producers (CIF)

Source: Junginger, www.eubionet.net, 2011

Price index:

FOEX (scandi)

ENDEX (ARA)

ARGUS (NWE)

Wood pellet prices FOB in North American HarboursWood pellet prices FOB in North American HarboursWood pellet prices FOB in North American HarboursWood pellet prices FOB in North American Harbours

Source : www.canbio.ca

Enduser pricesEnduser pricesEnduser pricesEnduser prices

Source: Winterbäck, www.eubionet .net, 2011

(~17,5 GJ/ton)

~250 €/ton

~150 €/ton

General conclusions wood pellet markets

Enduser prices EuropeEnduser prices EuropeEnduser prices EuropeEnduser prices Europe

Source: Winterbäck, www.eubionet.net, 2011

Enduser prices EuropeEnduser prices EuropeEnduser prices EuropeEnduser prices Europe

Source: Winterbäck, www.eubionet.net, 2011

Oportunities- according to C.F. Nielsen

(Danish Briquettingmachine manufacture)

� Conclusions on Indonesian market according to CF Nielsen.

� Should focus on local market use

� Eksport to Europa is very difficult due to logitics prices and the Europena market will only by wood based briquettes

� No power plants are interrested unless price is much lower than other biomass

Investment in Briquetting machinery

(C.F. Nielsen)

� For consumer briquettes � Investment: 200.000 - 300.000 €� Capacity: 1.000 - 1.400 kg /h . � Direct costs such as electricty, spare parts, service and maintenance

( ~ 15 EUR per ton)

� For industrial briquettes � Investment: 100.000 og 200.000 €� Capacity: 500 kg - 1.800 kg /h. � Direct costs such as electricty, spare parts, service and maintenance

( ~ 10 EUR per ton)

� Includes briquettingmachinery and silo for raw material. � Does not include shipping or milling and not drying. (these could be

expensive)

� CF Nielsen has currently 3 mashines in operation in Malaysia (se photo)

C.F Nielsen machinery in Malaysia

C.F Nielsen machinery in Malaysia

C.F Nielsen machinery in Malaysia

COCOCOCO----FIRING PELLETS IN FIRING PELLETS IN FIRING PELLETS IN FIRING PELLETS IN

DENMARK DENMARK DENMARK DENMARK

CoCoCoCo----firingfiringfiringfiring

Three state–of–the–art systems:

Direct Co–firing systems, combustion of both fuels takes place within the same boiler, thus mixing coal and biomass ashes.

Parallel system, biomass and coal are burned in separate boilers with physically independent feeding and ash removal systems.

Indirect system, fossil fuel is burned with previously gasified biomass and, hence, coal and biomass ashes are also removed in different parts of the processes.

Ash removal is one the most important constraints for increasing the share of biomass in Co–firing systems. Ash melting temperatures of many biomass sources are normally lower than coal due to their high alkali metal, calcium or iron content. This feature may cause several problems such as slagging and fouling in the burners, furnace walls or superheaters.

Other problems that may arise are related to the different grindability of biomass and coal, or the diverse combustion behavior of both fuels.

Direct Co–firing is by far the most implemented configuration in European coal–fired power plants, accounting (more than 150 plants with total electrical and thermal capacities of 35 GWel and 22 GWth).

In Direct systems, the maximum share of biomass in the fuel blend is less than 5 –10 wt% (3 – 6% on energy basis). Higher ratios would imply boilers modification with the inherent increase in capital investment.

Danish Energy

� The government’s long-term vision is that Denmark will become independent of fossil fuels by 2050 while reducing greenhouse gases by 80–95% compared to 1990. This will require a total conversion of the Danish energy system, away from oil, coal, and gas, which today account for more than 80% of energy consumption, to green energy, with wind turbines and bioenergy as the most important elements.

� The European Union presently has a goal of reducing GHG emissions by 20% by 2020 from the 1990 level. Denmark is urging the EU to adopt an even stricter goal of 30%

� Danish coal power plants are already remarkably efficient. Any coal plant makes just two things: electricity and heat. Most coal plants use only the electricity, sending the heat up the chimney as waste. Thus, most coal power plants are only about 30% fuel efficient.

� In Danish power plants, both electricity and heat are used (known as combined heat and power, CHP). The heat is captured and used to heat hot water, which is pumped through a vast network of super-insulated pipes to heat homes throughout the country (called district heating). Denmark’s best power plants are more than 90% fuel efficient. Today, more than 70% of Denmark’s homes are heated by district heating.

n AvedAvedAvedAvedøøøøre II CHP (DONG)re II CHP (DONG)re II CHP (DONG)re II CHP (DONG)– Combusted 343 600 t wood pellets in

2008– Allowence for up to 500 000 t in 2009

Pellets - Combined Heat and Power in Denmark

n Amager CHP (Vattenfall)

– Combusted 50 000 t straw pellets

20 000 t wood pellets

– Refurbished plant 2009 aims at:

100 000 t straw pellets 250 000 t wood pellets

n Herning CHP (DONG) - after 2009

- Capacity of 100 000 t wood pellets/year

Danish consumption of wood pellets 1985Danish consumption of wood pellets 1985Danish consumption of wood pellets 1985Danish consumption of wood pellets 1985----2008200820082008

Source: Danish Energy Authority, www.ens.dk

+ Own estimations for 2008

1160 0001160 000

+ 1,5 miltonnes

Avedøre Power Station

Danish Power plant Avedøre

Dong Energy’s Avedøre Power Station near Copenhagen, which provides electricity

for 1.3 million homes in northern Europe and district heating for 200,000 homes in

Greater Copenhagen. Total electricity production is 825 MW and heat production is

575 MJ (megaJoules). The facility has two units.

Unit 1 is coal- and oil-fired.

Unit 2 uses several types of fuel, including natural gas, oil, and biofuels (straw and

wood pellets). It is one of the world’s most efficient CHP facilities, using up to 94%

of the energy in the fuel. The two 55-MW gas turbines operate as peak load facilities

when electricity and heat demand are high. The plant consumes 600,000 tonnes/year

of wood pellets.

Denmark presently imports 85% of its annual wood pellet consumption. This figure will

increase as the country implements it coal reduction plans.

Avedøre Power Station

http://www.dongenergy.com/en/business%20activities/generation/electricity%20generation/primary%20power%20stations/pages/avedore%20power%20station.aspx

Amager Power StationAmager Power StationAmager Power StationAmager Power Station

Amager Power Station (Vattenfall) near Copenhagen, which has a total electricity capacity of

438 MW and thermal power capacity of 747 MW, which corresponds to the heating required by

about 115,000 households.

It has three units.

The station burns about 700,000 tonnes/year of coal. Oil is used only for start-up, and

consumption is slightly more than 3,000 tonnes/year.

The station also burns about 150,000 tonnes/year of biomass in the form of straw pellets.

Properties of straw pellets compared to EFB??