Biomass and CHP: Opportunities not only for central and eastern Europe

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Biomass and CHP Opportunities not only for
central and eastern Europe

• Dr. H. Kopetz
• Berlin
• 5. Oktober 2007

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Content

• Some facts of the European energy system
• District heating (DH)-The situation in central
  and eastern Europe
• Efficiency, District heating and biomass
  European opportunities
• Source The used data are taken from the
  Statistical pocketbook 2006, EU Commission and
  from EUROPEAN BIOMASS STATISTICS 2007, AEBIOM.

Association Européenne pour la BIOMasse
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AEBIOMEuropean Biomass Statistics 2007

• AEBIOM, the European Biomass Association, has
  published a comprehensive report, in September
  2007, on the contribution of biomass to the
  energy system in the EU 27.
• The report includes all relevant statistical data
  on biomass and serves as an important reference
  for every person employed or interested in the
  bioenergy sector.
• A statistical report on the contribution of
  biomass to the energy system in the EU 27
• Price 40,- (excl. postal charges)
• Copies of the report can be ordered via e-mail to
  vagonyte_at_aebiom.org
• Some table of contents-headlines
• Biomass energy content, transformation
  coefficients, conversion factors
• Biomass in the European Energy System
• Land ressources and biomass potential
• Biomass for heat and electricity
• Biogas
• Biofuels for transport

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Introduction

• Global warming is the biggest threat to our
  societies and the economic wellbeing of future
  generations. Therefore the energy policy has to
  contribute to the reduction of C0² emissions. The
  decisions of the European council of March 2007
  set the targets they are very ambitious as the
  following table demonstrates

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Climate change and greenhouse gas emissions

• A succesful strategy against climate change
  requires a strong reduction of the greenhouse gas
  emissions minus 831 Mt until 2020 to comply
  with the council of 9.3.2007

C02 emissions, EU-25, Million tonnes CO2
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Where come the C0² emissions from?

• The main source of the C0² emissions is the
  burning of fossil fuels. Given the European
  energy mix 1Mtoe of fossil fuels releases
• 2.88Mt C0².
• This means the use of fossil fuels has to be
  reduced until 2020 by
• 300Mtoe
• to comply with the decisions of the council.

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What does 300 Mtoe mean in relation to the energy
system and the potential of RES?

• As the following tables show
• the losses in the energy system are much bigger
  than the required reduction of fossil fuels, and
  the additional amount of RES from 2004 to 2020 is
  not enough to replace 300 Mtoe fossil fuels.
• Therefore the question How can the losses be
  reduced and what can biomass contribute to the
  reduction of greenhouse gases?

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Primary energy consumption and transformation
losses, EU 25, 2005Losses occur mainly in
thermal power plants without heat use!
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The potential of RES as compared to the
transformation losses, Mtoe
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Heat in all forms 50 of the final energy demand

• If we now turn to the final energy, we can see
  that ca 50 of the final energy is used as heat
• Heat for warm water, for space heating in the
  residential, tertiary and industry sector and for
  industrial processes.

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Final energy consumption, EU 25, 2004, Mtoe
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First conclusions

• The transformation losses are much higher than
  the potential of the RES
• One main reason for these losses the separation
  of heat supply and electricity production in
  thermal power plants
• Traditional thermal power plants have an
  efficiency of 35 40 this share of the primary
  energy is converted to electricity, 65 60 is
  wasted as heat, released to the environenment
• Heat is the biggest market within the energy
  sector! To supply this market with the waste heat
  from power plants you need DH-grids!

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Content

• Some facts of the European energy system
• The situation in central and eastern Europe
• Efficiency, DH and biomass
• Opportunities for a decentralised heatpower
  production

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District heating (DH) in Europe

• In 2003 the total heat demand/capita was ca
• 13 400kWh (total heat heat for industry,
  tertiary and residential sector).
• In some member states 40 of the needed heat was
  delivered by DH, in the average only 8, in some
  countries less than 4 .
• As the following table shows, the nordic and
  baltic countries are leading in DH. But also the
  Eastern European countries are well positioned.
  In these countries DH is 100 above the EU
  average.
• A well developed DH grid is a prerequisite for an
  efficient power production in thermal power
  plants.
• In many cases natural gas grids are the main
  competitors for DH!

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District heating in Europe, kWh/capitaEU 27, 2003
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One source of losses

• The lack of sufficient district heating systems
  in many countries is one main source for the huge
  losses of energy in the thermal power plants.
• If we try to use 20 of these losses to heat our
  cities and industries we could save
• 120 Mtoe!
• This is already a big share of the necessary
  300 Mtoe reduction of fossil fuels in the frame
  of the C0² reduction policy.

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A closer look to Eastern Europe

• As the following tables show, between 1992 and
  2003 the amount of heat sold in DH systems has
  been reduced substantially, in some countries by
  50 - 70 Bulgaria, Romania, Poland).
• But still, at present DH is much more developed
  than in most West European countries.

• DH in these countries is very.

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A closer look to Eastern Europeheat sold via DH
in Mtoe rapid decline!
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Biomass in DH in Europa

• As the following graph shows, the use of biomass
  in DH in Europe is very low in the average
  only 1 of total heat used. There are only a few
  exemptions like Sweden where they sell 3000 kWh
  heat/capita in biomass DH systems.
• In some Eastern European countries they use an
  increasing amount of biomass for cofiring in coal
  fired power plants with an efficiency around 30
  to comply with the EU directive on
  RES-electricity and switched from DH to natural
  gas, which they import from Russia.

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Biomass heat via district heating kWh/capita,
2003Heat demand EU 27 ca 560 Mtoe, here of DH
45.5 Mtoe, hereof biomass 5.24 Mtoe
EU 25 average 132
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Biomass in DH in EE countries(EE East Europe)

• The following table shows the situation more in
  detail. As you can see, in Sweden more than 50
  of DH comes from biomass, in Austria almost one
  third, in EE countries less than 5.
• This analysis demonstrates that there is a
  considerable potential for C0² reduction by
  substituting fossil fuels by biomass in
  DH-systems in EE-countries

• Amazingly the share of biomass in

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District heat(DH) and Biomass District heat(BDH)
in selected countries and EU average kWh per
capita
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A switch from fossil to biomass fuels means
possible C0² reduction up to 85 Mt (13!)lower
operating costsbut high investment costs to
change the systems

• The 7 new member states in central and Eastern
  Europe released 656 Mt C0² in the year 2004. By
  substituting fossil fuels by biomass in the
  present DH systems they would need 16 Mtoe
  biomass equivalent and could save 45 Mt C02, ca
  7 of the present emissions.
• If they rebuild their not used systems to the
  level of 1993 and switch to biomass they would
  need 29 Mtoe biomass and could save 85 Mt C0² or
  13 of their total emissions.
• The potential to deliver and produce this biomass
  exists yet it has to be developed.
• The price of primary energy in woody biomass is
  cheaper than in natural gas, given the fact that
  gas prices increased by 50 in the last 2 years.
• The lack of capital, of know how, of knowledga
  and of government support is the main reason for
  not using these huge potentials for emission
  reduction so far.

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Biomass in DH heating

• From 48 Mtoe biomass for heat only 5 Mtoe are
  used in DH, mainly in SW, Fl, DK, the baltic
  countries and Austria!
• Central and Eastern European countries do have DH
  networks but so far they dont use biomass, they
  offer a huge potential for biomass to heat.
• Many other countries only have small DH networks
  and barely use biomass. They need new DH networks
  and then they also could use biomass.

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Content

• Some facts of the European energy system
• The situation in central and eastern Europe
• Efficiency, District heating (DH),
  biomassEuropean opportunities

Association Européenne pour la BIOMasse
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Biomass to energy chains big differences in
efficiency and yields/ha

• The following 3 tables demonstrate the various
  possibilities of biomass and the big differences
  in efficiency and yields/ha between various
  biomass-to-energy chains.
• They explain, why AEBIOM is in favor to use more
  than 80 of the available biomass for heat
  production and CHP plants, which should be
  operated heat-driven to maximise the total
  efficiency.
• As is shown the efficiency varies from 25 to 90
  and the energy output per ha from 1 toe up to 5
  toe.

• These facts, based on natural

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The versatility of biomass
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Efficiency and conversion technologyefficiency
final energy output in GJ/input inGJ without
considering the additional energy needed for the
process and the energy in by-products
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Final energy/ha based on average yields 2002
-2004, EU 25
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Bioenergy Targets for heat, electricity and
fuels, 2020 share of biomass from 4.1 in 2004
to 12 14 in 2020!
Association Européenne pour la BIOMasse
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The so far developed facts are integrated into
aHeat scenario 2020 (EU 27)

• If we seriously want to reduce the C0² emissions
  by 831Mt, we only can succeed if we use the
  wasted heat and if we promote the most efficient
  biomass to energy chains- that is biomass to
  heat. What does this mean in figures?
• We follow the council decisions 20 less heat
  demand by efficiency gains and better isolation,
  20 use of the heat losses of the power
  generation, efficient use of biomass potential
  according AEBIOM, substitution of electrical and
  fossil fuel driven heating systems - and get the
  following figures

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Heat scenario 2020 changes in the heat supply
between 2004 and 2020 in Mtoe based on the
decisions of the council spring 2007
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The effects of such a programm on C0² reduction

• Implementing such a programm would help to save
  306 Mtoe of fossil fuels just the amount we need
  to attain a 20 reduction of C0² emissions.
• To better evaluate the importance of this issue
  we compare it with the community goals in the
  transporation sector and the electricity sector
• 10 biofuels means ca 33 Mtoe substituted
• An increase of electricity production from 15 to
  21 means ca 52 Mtoe substituted.
• As the following table shows only the heat market
  offers the potential for a substantial decrease
  of emissions

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Scenario C0² reduction 2004 - 2020
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C0² reduction in Mt 2004 - 2020

• The EU- heat market offers the biggest potential
  for C0² reduction by replacing fossil fuels by
  RES and wasted heat yet, a new structure of DH
  in many places is necessary!

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Some explanations and consequences

• The realization of our scenario would require to
  push ca 200 Mtoe renewable or derived heat into
  the market this corresponds to ca 100 Million
  appartments or houses or 50 Million appartments
  and a similar heat quantity in tertiary
  buildings.
• Experiences show that the replacement of a fossil
  driven heating system by a RES system or the
  construction of a new district heating system
  costs ca 10.000 /unit.
• This means 1000 Bn would be necessary for this
  restructuring of the European heating system. In
  comparison the annual Budget of the Union is
  around 100 Bn .

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The obstacles for such a takeoff

• Renewable electricity, blended biofuels can be
  used in the existing energy infratructure and
  dont need new appliances, cars or what ever.
• On the contrary, pellets cannot be burned in a
  oil burner and district heat cannot be used in a
  gas burner.
• Therefore the introduction of RES heat is a
  question of available capital, of laws or of such
  high taxes on fossil combustibles that the low
  operating costs help to overcome the investment
  burden.
• Therefore a new European fund for RES heat and
  retrofitting of buildings is proposed to support
  the member states and the individuals in
  financing the huge investments to restructure the
  European heating system.

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Additional biomass for heat

• So far biomass for heat comes mainly from the
  European forests. But this supply is limited and
  in some regions not available. Therefore new
  perennial crops are neccessary such as SRC,
  miscanthus, with high energy yields/ha to produce
  enough biomass.
• These crops are unknown to the European farmers.
  They need a 10 to 20 year commitment and dont
  allow annual crop rotation. New schemes have to
  be developed that make these crops attractive for
  farmers

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What Instruments can be proposed for this change?

• Higher taxation on fossil combustibles example
  SW,DK ca 200 Euro/1000l heating oil and also on
  electricity for heat
• An European fund for renewable heat and isolation
  of buildings, that cofinances national and
  regional programs 10 bn Euro to build DH grids
  and DH plants based on biomass, to invest in
  pellets and chip boilers, to save energy in
  buildings
• New incentives to grow perennial crops
• Information, awareness building, training

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RES-heat What are the expectations of the sector
concerning the new RES directive ?

• No trading systems for RES obligations
• Indicative target for RES heat of 25 on EU level
• Provisions for national action plans
• - sectoral targets for biomass heat, for DH
  deployment
• -for solar thermal and geothermal heat, for
  biomass to electricity, to fuels, supply
  concept,
• - measures how to reach the targets, monitoring.
• Priority for biomass-to-energy chains with high
  energy output/ha
• Sustainable biomass production
• A new fund for Renewable heat and energy saving
  in buildings

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A new structure for heat and electricity supply

• To meet the targets of the spring council 2007
  Europe needs a new structure for the heat supply
  and the electricity production.
• A more decentralised production electricity
  production has to follow the heat demand.
• RES and derived heat has to replace fossil
  combustibles and electricity in the heating
  sector.
• DH networks, chip and pellets boilers, solar
  thermal installation should be in the center of
  the new heating supply.
• Goverment policies are necessary to steer the
  market forces towards a sustainable heating
  system.

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Summary

• The reduction of fossil fuels in the heating
  sector is a key issue in a policy against global
  warming and for better security of energy supply.
• This restructuring requires huge amounts of
  capital, it also offers many new jobs.
• Therefore an European fund for renewable heat and
  DH networks is proposed.

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Danke für die Aufmerksamkeit! Thank you for the
attention!
Association Européenne pour la BIOMasse