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Economic and environmental benefits of converting industrial processes to district heating
Linköping University, Department of Management and Engineering, Energy Systems. Linköping University, The Institute of Technology.
Linköping University, Department of Management and Engineering, Energy Systems. Linköping University, The Institute of Technology.
2014 (English)In: Energy Conversion and Management, ISSN 0196-8904, E-ISSN 1879-2227, Vol. 87, 305-317 p.Article in journal (Refereed) Published
Abstract [en]

The aim of this study is to analyse the possibilities of converting production and support processes from electricity and fossil fuels to district heating in 83 manufacturing companies in three different Swedish counties. A tool for heat load analysis called Method for Heat Load Analysis (MeHLA) is used to explore how the conversions would affect the heat load duration curves in local district heating systems. Economic effects and impacts on global emissions of greenhouse gases are studied from a system perspective. The study has been conducted considering two different energy market conditions for the year 2030.

The results show that there is a potential for increasing industrial district heating use in all analysed counties. When comparing all three counties, the greatest potential regarding percentage is found in Jönköping, where the district heating use in the manufacturing companies could increase by nine times (from 5 GWh to 45 GWh annually). The industrial district heating use could increase by two times (from 84 GWh to 168 GWh annually) in Östergötland and by four times (from 14 GWh to 58 GWh annually) in Västra Götaland. The conversion of the industrial production processes to district heating would lead to a district heating demand curve which is less dependent on outdoor temperature. As a result, the utilization period of the combined heat and power plants would be prolonged, which would decrease district heating production costs due to the increased income from the electricity production.

In all analysed counties, the energy costs for the companies decrease after the conversions. Furthermore, the increased electricity production in the combined heat and power plants, and the decreased electricity and fossil fuel use in the industrial sector opens up a possibility for a reduction of global greenhouse gas emissions. The potential for the reduction of global greenhouse gas emissions is highly dependent on the alternative use of biomass and on the type of the marginal electricity producers. When the marginal effects from biomass use are not considered, the greenhouse gas emissions reduction is between 10 thousand tonnes of CO2eq and 58 thousand tonnes of CO2eq per year, depending on the county and the type of marginal electricity production plants. The highest reduction is achieved in Östergötland. However, considering that biomass is a limited resource, the increase of biomass use in the district heating systems may lead to a decrease of biomass use in other energy systems. If this assumption is included in the calculations, the conversion of the industrial processes to district heating still signify a  potential for reduction of greenhouse gas emissions, but this potential is considerable lower.

Place, publisher, year, edition, pages
Elsevier, 2014. Vol. 87, 305-317 p.
Keyword [en]
District heating; Energy cooperation; Industry sector
National Category
Mechanical Engineering
URN: urn:nbn:se:liu:diva-106898DOI: 10.1016/j.enconman.2014.07.025ISI: 000343337200032OAI: diva2:719320
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.
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 1601
National Category
Engineering and Technology
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)
Available from: 2014-05-23 Created: 2014-05-23 Last updated: 2015-11-06Bibliographically approved

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