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Evaluating System Consequences of Energy Co-operation between Industries and Utilities
Linköping University, Department of Management and Engineering, Energy Systems. Linköping University, The Institute of Technology.
2011 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Energy conservation, energy efficiency measures, and energy carrier conversion within the industry are extremely important issues in order to deal with energy resource depletion and the threats from global warming. In Swedish industry there is potential for reductions of carbon dioxide emissions and resource use through utilization of excess heat and conversion of compression cooling to other cooling technologies using less electricity. Co-operation between industries and utilities can be obtained concerning both heating and cooling, but the choice of technologies and the profitability of co-operation are influenced by a number of factors such as the type of industry, policy instruments, the size and design of the district heating and cooling systems, and energy market prices.

In this thesis, energy co-operation has been studied on two levels: a techno-economic level and a socio-technical level. On the techno-economic level the possibilities for co-operation in two industrial cases have been studied, Scandinavian kraft pulp mills and manufacturing industry in the municipality of Södertälje:

The pulp and paper industry is one of the major energy users in Sweden, and 2.2 TWh of heat was delivered from pulp mills in 2007, mainly to district heating systems. At kraft pulp mills the excess heat can be used either internally or externally. Internally, excess heat can be used in the production process and/or to replace steam and thereby increase the production of electricity, depending on the quality of the excess heat. Externally, excess heat can be used as district heating. The trade-off between internal and external use of excess heat depends on numerous factors. The economic profitability of possible investments is influenced not only by investment costs and fuel costs; several policy instruments, including the electricity certificate system and the carbon dioxide trading scheme, also influence the choice of technology as well as the willingness to co-operate.

In the municipality of Södertälje two large industries use large amounts of electricity, district heating and cooling. The cooling demand in Södertälje is currently covered by free cooling from lake water and compression chillers; but in order to reduce the use of electricity, conversion to heat-driven cooling or increased lake water cooling can be considered. The large CHP plant in Södertälje is today not used to its full potential, but investment in heat-driven cooling and/or a cold condenser unit integrated with the CHP plant could increase the plant’s operation hours. New investments in district cooling could increase the level of co-operation between the two industries and the local utility, but depending on policy instruments, energy market prices and the possible exchange of heat between Södertälje and Stockholm, the profitability of such investments will vary.

On the socio-technical level, co-operation between utilities and industries has been studied through interviews and surveys to further analyze factors concerning co-operation beyond the techno-economic level. Results from the studies show that communication between the parties, the willingness to take risks, and trust between the co-operating parties are key factors that are as vitally important for a co-operation to take place as technical and economic factors.

Abstract [sv]

Energibesparingar, energieffektivitet och konvertering av energibärare i industrin är oerhört viktiga frågor att hantera med tanke på det hot vi står inför med uttömning av resurser och global uppvärmning. I svensk industri finns det potential för reducering av koldioxidemissioner och resursanvändning genom utnyttjande av industriell överskottsvärme och konvertering av kompressionskyla till andra kyltekniker som använder mindre el. Samarbete mellan industrier och energibolag kan uppnås både för värme och kyla, men valet av teknik och lönsamheten i samarbete påverkas av ett flertal faktorer som typen av industri, styrmedel, storleken och produktionsmixen i fjärrvärme- och fjärrkylanäten samt energimarknadspriser.

I den här avhandlingen har energisamarbeten studerats på två olika nivåer: en tekno-ekonomisk nivå och en socio-teknisk nivå. På den tekno-ekonomiska nivån har möjligheter till samarbete undersökts i två industriella fall, skandinaviska kemiska massabruk och tillverkningsindustri i Södertälje.

Massa- och pappersindustrin är en av de största energianvändarna i Sverige och 2,2 TWh värme levererades 2007 från olika bruk till fjärrvärmenäten. I ett kemiskt massabruk kan överskottsvärme användas antingen internt eller externt. Intern kan värmen användas i produktionsprocesserna och/eller för att ersätta ånga och därmed öka elproduktionen, beroende på överskottsvärmens kvalitet. Externt kan värmen användas till fjärrvärme. Avvägningen mellan intern och extern användning beror på flera faktorer. Den ekonomiska lönsamheten för möjliga investeringar påverkas inte bara av investeringskostnader och bränslekostnader, ett flertal styrmedel, inklusive elcertifikatsystemet och handeln med utsläppsrätter, påverkar valet av teknik och viljan att samarbeta.

I Södertälje finns två stora industrier som använder stora mängder el, fjärrvärme och kyla. Kylbehovet i Södertälje täcks för närvarande av frikyla från sjövatten och kompressionskylmaskiner, men för att minska elanvändningen kan konvertering till värmedriven kyla eller en ökning av mängden frikyla vara aktuellt. Den stora kraftvärmeanläggning som finns i Södertälje utnyttjas idag inte till sin fulla potential, men investering in värmedriven kyla kan öka drifttiden i anläggningen. Nya investeringar i fjärrkyla kan ge ett ökat samarbete mellan industrierna och energibolaget i Södertälje, men beroende på styrmedel, energimarknadspriser och det fjärrvärmeutbytet mellan Södertälje och Stockholm, kommer lönsamheten i dessa investeringar att variera.

På den socio-tekniska nivån har samarbeten mellan industrier och energibolag undersökts genom intervjuer och enkäter för att ytterligare analysera de faktorer som påverkar samarbeten utöver de tekno-ekonomiska möjligheterna. Resultaten från studierna visar att kommunikation mellan parterna, vilja att ta risker och förtroende mellan parterna är faktorer som är lika viktiga för att uppnå ett samarbete som tekniska möjligheter och ekonomisk lönsamhet.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press , 2011. , 69 p.
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 1407
National Category
Engineering and Technology
Identifiers
URN: urn:nbn:se:liu:diva-71849ISBN: 978-91-7393-035-2 (print)OAI: oai:DiVA.org:liu-71849DiVA: diva2:454529
Public defence
2011-11-14, ACAS, Hus A, Campus Valla, Linköpings universitet, Linköping, 10:15 (English)
Opponent
Supervisors
Available from: 2011-11-07 Created: 2011-11-07 Last updated: 2011-11-09Bibliographically approved
List of papers
1. Excess heat from kraft pulp mills: Trade-offs between internal and external use in the case of Sweden - Part 1
Open this publication in new window or tab >>Excess heat from kraft pulp mills: Trade-offs between internal and external use in the case of Sweden - Part 1
2008 (English)In: Energy Policy, ISSN 0301-4215, Vol. 36, no 11, 4178-4185 p.Article in journal (Refereed) Published
Abstract [en]

Excess heat from a kraft pulp mill can be used either internally to increase the level of efficiency in the mill, or externally for example as district heating. This paper presents an approach to investigate the competition between external and internal use through modelling the pulp mill and an energy company (ECO) within the same system boundary. Three different sizes of ECOs with different district heating demands are studied. To investigate the competitiveness of using industrial excess heat as district heating compared with other heat production techniques, the option of investing in excess heat use is introduced, along with the possibility for the ECO to invest in biomass combined heat and power (CHP), waste CHP and natural gas combined cycle (NGCC). To evaluate the robustness of the model, alternative solutions are identified and will be used as a comparison to the optimal solutions. The model has been verified by comparing the results with previous studies concerning kraft pulp mills and with related studies regarding district heating and real ECOs. Finally, the approach presented in this part of the study will be used in the second part in order to investigate the trade-off between internal and external use of excess heat under different future energy market scenarios.

Keyword
Kraft pulp mill, Industrial excess heat, Energy efficiency
National Category
Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-16153 (URN)10.1016/j.enpol.2008.07.017 (DOI)
Available from: 2009-01-08 Created: 2009-01-07 Last updated: 2011-11-07
2. Excess heat from kraft pulp mills: Trade-offs between internal and external use in the case of Sweden - Part 2
Open this publication in new window or tab >>Excess heat from kraft pulp mills: Trade-offs between internal and external use in the case of Sweden - Part 2
2008 (English)In: Energy Policy, ISSN 0301-4215, Vol. 36, no 11, 4186-4197 p.Article in journal (Refereed) Published
Abstract [en]

In this paper the trade-off between internal and external use of excess heat from a kraft pulp mill is investigated for four different future energy market scenarios. The work follows the methodology described in Svensson et al. [2008. Excess heat from kraft pulp mills: trade-offs between internal and external use in the case of Sweden-Part 1: methodology. Energy Policy, submitted for publication], where a systematic approach is proposed for investigating the potential for profitable excess heat cooperation. The trade-off is analyzed by economic optimization of an energy system model consisting of a pulp mill and an energy company (ECO). In the model, investments can be made, which increase the systems energy efficiency by utilization of the mills excess heat, as well as investments that increase the electricity production. The results show that the trade-off depends on energy market prices, the district heating demand and the type of existing heat production. From an economic point of view, external use of the excess heat is preferred for all investigated energy market scenarios if the mill is studied together with an ECO with a small heat load. For the cases with medium or large district heating loads, the optimal use of excess heat varies with the energy market price scenarios. However, from a CO2 emissions perspective, external use is preferred, giving the largest reduction of global emissions in most cases.

Keyword
Kraft pulp mill, Industrial excess heat, Energy market scenarios
National Category
Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-16154 (URN)10.1016/j.enpol.2008.07.027 (DOI)
Available from: 2009-01-08 Created: 2009-01-07 Last updated: 2011-11-07Bibliographically approved
3. Absorption cooling - An analysis of the competition between industrial excess heat, waste incineration, bio-fuelled CHP and NGCC
Open this publication in new window or tab >>Absorption cooling - An analysis of the competition between industrial excess heat, waste incineration, bio-fuelled CHP and NGCC
2008 (English)In: Proceedings of the 21st International Conference on Efficiency, Cost,Optimization, Simulation and Environmental Impact of Energy Systems, ECOS2008, 24-27 June, Kraków, Poland, Krakow: ECOS , 2008, 949- p.Conference paper, Published paper (Other academic)
Abstract [en]

Excess heat from kraft pulp mills can be used either for internal purposes in the mill or externally, as district heating. Previous studies have shown that the trade-off between internal and external use of excess heat from kraft pulp mills depends mainly on energy prices and the demand for heat. The aim of this study is to investigate whether the trade-off between the investment options is altered when the option to produce district cooling through absorption cooling is introduced. The influence of absorption cooling on the trade-off between internal or external use of excess heat is investigated through modeling the pulp mill and the Energy Company (ECO) using the energy systems modeling tool reMIND. To obtain a broader system perspective, the kraft pulp mill and ECO are modeled within the same system boundaries. The results of the optimizations show that absorption cooling mainly benefits investments in bio-fuelled CHP and only influence the trade-off between internal or external use of excess heat when the conditions for CHP are unfavorable, for instance when the price of bio-fuels is high and the price of electricity certificates is low. The larger heat demand made increased electricity production possible which not only increases the system revenue but also decreases the CO2 emissions of the system.

Place, publisher, year, edition, pages
Krakow: ECOS, 2008
Keyword
absorptionskyla, överskottsvärme, kraftvärme
National Category
Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-42847 (URN)69339 (Local ID)69339 (Archive number)69339 (OAI)
Conference
The 21st International Conference on Efficiency, Cost, Optimization, Simulation and Environmental Impact of Energy Systems, ECOS 2008, 24-27 June, Kraków, Poland
Available from: 2009-10-10 Created: 2009-10-10 Last updated: 2011-11-07Bibliographically approved
4. System analysis in a European perspective of new industrial cooling supply in a CHP system
Open this publication in new window or tab >>System analysis in a European perspective of new industrial cooling supply in a CHP system
2011 (English)In: Applied Energy, ISSN 0306-2619, E-ISSN 1872-9118, Vol. 88, no 12, 5164-5172 p.Article in journal (Refereed) Published
Abstract [en]

In the municipality of Södertälje two large industries use much of the electricity, district heating (DH) and chilled water in the area. The Södertälje energy system is not isolated, however, but is connected to the DH systems of southern and central Stockholm, and a change in the Södertälje energy system will also influence the connected energy systems in Stockholm. The cooling demand in Södertälje is currently covered by lake water cooling and compression chillers, but in order to reduce the use of electricity, conversion to absorption cooling or increased lake water cooling can be considered. The large combined heat and power (CHP) plant in Södertälje is not used to its full potential today, but investment in absorption cooling and/or a cold condenser unit integrated with the CHP plant could increase the plant’s operation hours. In this paper the system effects of introducing new industrial cooling supply in Södertälje has been investigated through optimizations of a model including both the industries and the district heating supply in Södertälje and Stockholm. The results show that, independently of whether condensing power production is feasible in the CHP plant or not, investments in both increased lake water cooling and absorption cooling are profitable. A sensitivity analysis of how energy market prices affect the results shows that even though the system cost will change depending on energy market prices, the optimum cooling technology mix will remain the same. However, a sensitivity analysis of the transfer DH capacity between the Södertälje and Stockholm energy systems shows that if the transfer DH capacity is increased, absorption cooling will be less profitable since more heat can be sold from Södertälje to Stockholm while at the same time reducing the use of fuel resources.

Place, publisher, year, edition, pages
Elsevier, 2011
Keyword
Industrial cooling; CHP; District heating and cooling
National Category
Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-71847 (URN)10.1016/j.apenergy.2011.07.026 (DOI)000295387200095 ()
Note
Funding agencies|Swedish Energy Agency||Available from: 2011-11-07 Created: 2011-11-07 Last updated: 2017-12-08Bibliographically approved
5. Integrated energy systems analysis of industries and utilities: Potential for cooperationconcerning district cooling and industrial excess heat
Open this publication in new window or tab >>Integrated energy systems analysis of industries and utilities: Potential for cooperationconcerning district cooling and industrial excess heat
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Global warming and higher prices of fuel and electricity have increased the importance of energy efficiency measures in industry. Conversions of compression cooling to heat-driven cooling, and introduction of industrial excess heat in district heating systems, are two measures that can contribute to more sustainable energy systems. In the Södertälje energy systems, there is a potential for conversion of the cooling system due to the large industrial cooling loads. Heat-driven cooling processes such as absorption and adsorption cooling create a larger heat demand for combined heat and power (CHP), thus generating a larger production of electricity. Another option is to invest in free cooling, using lake water, and at the same time increase electricity production in the power plant through shifting to condensing mode. The increased use of fuel resources caused by the increased operation of the CHP plant can be reduced through introduction of industrial excess heat at peak loads to reduce the use of oil boilers and thereby further reduce the carbon dioxide emissions. The combination of reducing the electricity use from compression chillers, increased electricity production in the CHP plant, and increased use of industrial excess heat could thus reduce carbon dioxide emissions while at the same time reducing the system cost of the studied energy systems as a whole.

National Category
Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-71848 (URN)
Available from: 2011-11-07 Created: 2011-11-07 Last updated: 2011-11-07Bibliographically approved
6. Analyzing variables for district heating collaborations between energy utilities and industries
Open this publication in new window or tab >>Analyzing variables for district heating collaborations between energy utilities and industries
2010 (English)In: Energy, ISSN 0360-5442, E-ISSN 1873-6785, Vol. 35, no 9, 3649-3656 p.Article in journal (Refereed) Published
Abstract [en]

One vital means of raising energy efficiency is to introduce district heating in industry. The aim of this paper is to study factors which promote and inhibit district heating collaborations between industries and utilities. The human factors involved showed to affect district heating collaborations more than anything else does. Particularly risk, imperfect and asymmetric information, credibility and trust, inertia and values are adequate variables when explaining the establishment or failure of industry-energy utility collaborations, while heterogeneity, access to capital and hidden costs appear to be of lower importance. A key conclusion from this study is that in an industry-energy utility collaboration, it is essential to nurture the business relationship. In summary, successful collaboration depends more on the individuals and organizations involved in the relationship between the two parties than on the technology used in the collaboration.

Place, publisher, year, edition, pages
Elsevier Science B.V., Amsterdam., 2010
Keyword
District heating, Industry, Energy utility, Collaboration
National Category
Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-59265 (URN)10.1016/j.energy.2010.05.009 (DOI)000281178000017 ()
Note
Original Publication: Patrik Thollander, Inger-Lise Svensson and Louise Trygg, Analyzing variables for district heating collaborations between energy utilities and industries, 2010, ENERGY, (35), 9, 3649-3656. http://dx.doi.org/10.1016/j.energy.2010.05.009 Copyright: Elsevier Science B.V., Amsterdam. http://www.elsevier.com/ Available from: 2010-09-10 Created: 2010-09-10 Last updated: 2017-12-12Bibliographically approved
7. Socio-Techincal Aspects of Potential Future Use of Excess Heat from Kraft Pulp Mills
Open this publication in new window or tab >>Socio-Techincal Aspects of Potential Future Use of Excess Heat from Kraft Pulp Mills
Show others...
2009 (English)In: 22nd International Conference on Efficiency, Cost, Optimization, Simulation and Environmental Impact of Energy Systems: August 31 – September 3, 2009, Foz do Iguaçu, Paraná, Brazil, 2009Conference paper, Published paper (Other academic)
Abstract [en]

The pulp and paper industry is one of the largest energy users in Sweden and in 2007 2.2 TWh of heat was delivered from pulp mills, mainly to district heating systems. In this study, two market kraft pulp mills and two energycompanies (ECOs) have been interviewed about their views on excess heat, energy efficiency and energy strategies.The interviews have been brought together with results from previous optimization studies concerning kraft pulp millexcess heat by the authors and results from other related work in a socio-technical synthesis that aims to provide amore comprehensive view on the factors that influence the utilization of kraft pulp mill excess heat than achieved inprevious studies. The results show that the kraft pulp mills are more positive towards sales of excess heat than theECOs, which can be related to the fact that the ECOs take a greater risk when entering a heat cooperation. Anotherbarrier to co-operations is the already existing utilities in the ECOs that compete with excess heat for the position asbase load in the district heating systems. Both internal and external use of excess heat can benefit from policymeasures. Other important factors are the view on energy-related investments in the mill, the level of communicationbetween the parties, and the goodwill qualities obtained through energy-efficient solutions.

Keyword
Kraft pulp mill, Industrial excess heat, District heating, Barriers and driving forces
National Category
Social Sciences
Identifiers
urn:nbn:se:liu:diva-51626 (URN)
Conference
22nd International Conference on Efficiency, Cost, Optimization, Simulation and Environmental Impact of Energy Systems, August 31-September 3, Foz do Iguaçu, Paraná, Brazil
Available from: 2009-11-10 Created: 2009-11-10 Last updated: 2011-11-07Bibliographically approved

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