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Integration of biofuel production into district heating – Part II: an evaluation of the district heating production costs using Stockholm as a case study
Linköping University, Department of Management and Engineering, Energy Systems. Linköping University, The Institute of Technology.
School of Sustainable Development of Society and Technology, Mälardalen University, Västerås, Sweden.
Linköping University, Department of Management and Engineering, Energy Systems. Linköping University, The Institute of Technology.
Department of Strategic Sustainable Development, School of Engineering, Blekinge Institute of Technology, Karlskrona, Sweden.
2014 (English)In: Journal of Cleaner Production, ISSN 0959-6526, E-ISSN 1879-1786, Vol. 69, 188-198 p.Article in journal (Refereed) Published
Abstract [en]

Biofuel production through polygeneration with heat as one of the by-products implies a possibility for cooperation between transport and district heating sectors by introducing large-scale biofuel production into district heating systems. The cooperation may have effects on both the biofuel production costs and the district heating production costs. This paper is the second part of the study that investigates those effects. The biofuel production costs evaluation, considering heat and electricity as by-products, was performed in the first part of the study. In this second part of the study, an evaluation of how such cooperation would influence the district heating production costs using Stockholm's district heating system as a case study was performed. The plants introduced in the district heating system were chosen depending on the future development of the transport sector. In order to perform sensitivity analyses of different energy market conditions, two energy market scenarios were applied.

Despite the higher revenues from the sale of by-products, due to the capital intense investments required, the introduction of large-scale biofuel production into the district heating system does not guarantee economic benefits. Profitability is highly dependent on the types of biofuel production plants and energy market scenarios. The results show that large-scale biogas and ethanol production may lead to a significant reduction in the district heating production costs in both energy market scenarios, especially if support for transportation fuel produced from renewable energy sources is included. If the total biomass capacity of the biofuel production plants introduced into the district heating system is 900 MW, the district heating production costs would be negative and the whole public transport sector and more than 50% of the private cars in the region could be run on the ethanol and biogas produced. The profitability is shown to be lower if the raw biogas that is by-produced in the biofuel production plants is used for combined and power production instead of being sold as transportation fuel; however, this strategy may still result in profitability if the support for transportation fuel produced from renewable energy sources is included. Investments in Fischer–Tropsch diesel and dimethyl ether production are competitive to the investments in combined and power production only if high support for transportation fuel produced from renewable energy sources is included.

Place, publisher, year, edition, pages
Elsevier, 2014. Vol. 69, 188-198 p.
Keyword [en]
District heating; Biofuel; Energy cooperation; Transport sector
National Category
Engineering and Technology
Identifiers
URN: urn:nbn:se:liu:diva-106897DOI: 10.1016/j.jclepro.2014.01.042ISI: 000335102900021OAI: oai:DiVA.org:liu-106897DiVA: diva2:719318
Available from: 2014-05-23 Created: 2014-05-23 Last updated: 2017-12-05Bibliographically approved
In thesis
1. With district heating toward a sustainable future: System studies of district heating and cooling that interact with power, transport and industrial sectors
Open this publication in new window or tab >>With district heating toward a sustainable future: System studies of district heating and cooling that interact with power, transport and industrial sectors
2014 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The aim of this thesis is to identify measures which should be taken in DH systems (DHSs) in order to contribute to the development of the DHSs and other energy systems (especially transport, industrial and power sectors) toward sustainability.

Four business strategies were analysed: delivering excess heat from biofuel production industry to DHSs, conversion of industrial processes to DH, integration of biofuel production in DHSs and integration of DHdriven absorption cooling technology in DHSs. Delivering excess heat from biofuel production industry to DHSs was analysed with a focus on the biofuel production costs for four biofuel production technologies. Integration of biofuel production and integration of DH-driven absorption cooling technology in DHSs were analysed with a focus on Stockholm’s DHS, using an optimisation model framework called MODEST. When the conversion of industrial processes to DH was analysed, DHSs and industrial companies in Västra Götaland, Östergötland and Jönköping counties were used as case studies; a method for heat load analysis called MeHLA was used to analyse the effects on the local DHSs.

The results showed that when considering biomass an unlimited resource, by applying the abovementioned business strategies DH has a potential to reduce global fossil fuel consumption and global GHG emissions associated with power, industrial and transport sectors.

DH producers may contribute to the sustainable development of the  transport sector by buying excess heat from the biofuel production industry. This business strategy results in lower biofuel production costs, which promotes development of biofuel production technologies that are not yet commercial. Moreover, introduction of large-scale biofuel production into local DHSs enables development of local biofuel supply chains; this may facilitate the introduction of biofuel in the local transport sectors and subsequently decrease gasoline and fossil diesel use. Conversion of industrial processes from fossil fuels and electricity to DH is a business strategy which would make the industry less dependent on fossil fuels and fossil fuelbased electricity. DH may also contribute to the sustainable development of the industry by buying waste heat from industrial processes, since this strategy increases the total energy efficiency of the industrial processes and reduces production costs. Furthermore, DH has a possibility to reduce fossil fuel consumption and subsequently GHG emissions in the power sector by producing electricity in biomass- or waste-fuelled CHP plants.

When the marginal electricity is associated with high GHG emissions (e.g. when it is produced in coal-fired condensing power (CCP)) plants, the reduction of the marginal electricity production (due to the conversion of industrial processes from electricity to DH and due to the conversion of compression cooling to DHdriven absorption cooling) results in higher environmental benefits. On the other hand, the introduction of biofuel production into DHSs becomes less attractive from an environmental viewpoint, because the investments in biofuel production instead of in CHP production lead to lower electricity production in the DHSs. The increased DH use in industry and introduction of the biofuel production and DH-driven absorption cooling production into the DHSs lead to increased biomass use in the DHSs. Because of this, if biomass is considered a limited resource, the environmental benefits of applying these business strategies are lower or non-existent.

Abstract [sv]

Syftet med denna avhandling är att identifiera åtgärder som bör vidtas i FJV-system (FJVS) för att bidra till en hållbar utveckling av FJV och andra relaterade energisystem som transport, industri- och energisektorn.

Fyra affärsstrategier är analyserade: att leverera överskottsvärme från produktion av biobränsle för transportsektorn, konvertering av industriella processer till FJV, integration av biobränsleproduktion för transportsektorn i FJVS och integration av FJV-driven absorptionskylteknik i FJVS. Att leverera överskottsvärme från produktion av biobränsle till transportsektorn analyserades med fokus på kostnader för fyra olika produktionstekniker. Integration av biobränsleproduktion till transportsektorn och integration av FJV-driven absorptionskylteknik i FJVS analyserades på Stockholms FJVS med optimeringsmodellen MODEST. När konvertering av industriella processer till FJV analyserades, användes FJVS och industriföretag i Västra Götaland, Östergötlands och Jönköpings län som fallstudier. Metoden MeHLA som används för analys av värmebelastning tillämpades för att analysera effekterna på de lokala FJVS.

Resultaten från studierna visar att när biomassa anses vara en obegränsad resurs har FJV en potential att minska den globala konsumtionen av fossila bränslen och de globala utsläppen av växthusgaser som förknippas med transport-, industri- och energisektorn, for samtliga analyserade affärsstrategierna.

FJV producenter kan bidra till en hållbar utveckling av transportsektorn genom användningen av överskottsvärme från produktion av transportbiobränsle. Den analyserade affärsstrategin ger lägre produktionskostnader för transportbiobränsle vilket främjar utvecklingen av produktionsteknik som ännu inte är kommersiell. Dessutom möjliggörs utveckling av lokala försörjningskedjor av transportbiobränsle på grund av den storskaliga produktionen av transportbiobränsle i lokala FJVS. Detta kan sedan underlätta införandet av transportbiobränsle i lokala transporter och även minska användningen av bensin och fossil diesel. Konvertering av industriella processer från fossila bränslen och el till FJV är en affärsstrategi som skulle göra FJV-branschen mindre beroende av fossila bränslen. Att använda spillvärme från industriprocesser ökar den totala energieffektiviteten i de industriella processerna och minskar produktionskostnaderna. Genom att dessutom öka FJV-användningen inom industriella produktionsprocesser och genom att konvertera eldriven kompressionskyla till FJV driven komfortabsorptionskyla, minskar säsongsvariationerna av FJV lasten, vilket leder till ett bättre utnyttjande av produktionsanläggningar för FJV. Om produktionsanläggningarna för baslast i FJVS är kraftvärmeverk, leder dessa två affärsstrategier till en ökad elproduktion i FJVS.

När marginalproducerad el förknippas med höga utsläpp av växthusgaser (t.ex. när det produceras i koleldade kondenskraftverk), resulterar en minskning av den marginella elproduktionen (på grund av konvertering av industriella processer från el till FJV och på grund av konvertering eldriven kompressionskyla till FJV-driven absorptionkyla) i minskade globala emissioner av växthusgas. Om man däremot tittar på införandet av produktion av transportbiobränsle i FJVS är denna affärsstrategi mindre attraktiv ur ett miljöperspektiv. Orsaken till detta är att investering i produktion av transportbiobränsle istället för i kraftvärmeproduktion, leder till minskad elproduktion i FJVS. Den ökade FJV-användningen inom industrin och införandet av produktion av biobränsle för transportsektorn och FJV driven absorptionskylproduktion i FJVS leder till en ökad användning av biomassa i FJVS. När biomassa anses vara en begränsad resurs, är de miljömässiga fördelarna med att tillämpa dessa affärsstrategier relativt låga eller till och med obefintliga.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2014. 109 p.
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 1601
National Category
Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-106899 (URN)10.3384/diss.diva-106899 (DOI)978-91-7519-314-4 (ISBN)
Public defence
2014-06-13, ACAS, hus A, Campus Valla, Linköpings universitet, Linköping, 10:15 (English)
Opponent
Supervisors
Available from: 2014-05-23 Created: 2014-05-23 Last updated: 2015-11-06Bibliographically approved

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