Biomass CHP - FINLAND BioCoGen Second Meeting
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Finland number one in bioenergy t t
t t t
t
t
Finland has coldest climate in Europe Finland is large and sparsely populated; 5.2 million inhabitants, 17 people per square kilometre Fifth largest country in Europe: 338 145 km2 Indigenous energy sources; hydropower, wood, peat and wind energy Renewable energy sources accounts 23% of total energy consumption (85% of RES from wood energy) in 2001 Forest and paper, metal &engineering and chemical industries represent about 80% of Finland´s industrial production Energy-intensive industry; forest and paper industry accounts for 63% of industrial energy consumption
VTT PROCESSES
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Total primary energy by sources in Finland 2001 Coal 10.6% Natural gas 11.2 %
Oil 26.4%
Hydro power 3.4% Wood fuels total 19.5 %
Black liquors 9.8% Ind. wood residues 6.1% fire wood 3.6%
Heat pumps 0.2% REF 0.3 % Others 2.1 %
Nuclear power 17.5% Net imports of electricity 2.6% Peat 6.2 % Wind energy 0.018 %
Total energy consumption 1 364 PJ VTT PROCESSES
Source: Energy Statistics 2001
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Renewable energy sources in Finland, 2001 Wind 0 % 251 TJ
TJ
Solar 0 % 9 TJ
48 500
Hydro power 14.8% % 46 865 TJ Recycled fuels 1 680 TJ
18.2%
Firewood (logs and chips)
Biogas 745 TJ
31.4 %
Bark 51 721 Sawdust 16 333 Forest chips, ind. 6 671 Ind. wood residues 6 106 Construction and 1 696 demolition wood Pellets and briquettes 371 Other 349
50.4%
Black liquor
Ambient energy 2 730 TJ
Wood 83.5% % 265 442 TJ
Renewable energy sources 317 722 TJ 23% of total primary energy VTT PROCESSES
133 696
Source: Energy Statistics 2001
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Primary energy sources in electricity production in Finland, 2001 Other 1.0%
Electricity net imports 12.3 % Black liquors 6.1%
Natural gas 11.0%
Solid wood 4.5%
Oil 1.8 % Coal 13.1 %
Indigenous sources 33.8%
Peat 6.8%
Wind 0.01% Solar 0.008% Biogas 0.05%
Forest chips 0.3% REF 0.06%
Hydro power 16.0%
Nuclear power 27.0 %
Electricity production by RES 22.0 TWh 27.1% of total electricity production (81.2 TWh) VTT PROCESSES
Source: Energy Statistics 2001
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Total energy consumption by sector sector,, 2001 Other 15 %
Transportation 13 %
Industry 50 %
Space heating 21 %
Total energy consumption 1 364 PJ VTT PROCESSES
Source: Energy Statistics 2001
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Electricity production in forest industry industry,, 2001 Coal 0.04 TWh
Heavy fuel oil 0.2 TWh Others 0.3TWh Solid wood 2.1 TWh
Peat 0.9 TWh Wood 7.0 TWh
Black liquors 4.9 TWh
Natural gas 2.7 TWh
Other by-products 0.1 TWh
Total electricity production in forest industry 11.2 TWh Total electricity use in forest industry 25.5 TWh VTT PROCESSES
Source: Finnish Forest Industries Federation
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Fuels for district heat and municipal cogeneration (CHP) in 2001 Wood 7.6%
REF 0.3% and others 3.3%
Oil 6.7 %
District heat production 31.8 TWh
Coal 27.6 %
District heat capacity 14 810 MW Average selling price 36.68 €/MWh Number of homes heated by DH 1.1 million 2.4 million people living DH heated buildings
Peat 18.5 % Natural gas 36.0% Total fuel utilization 189.0 PJ VTT PROCESSES
District heat production by cogeneration 78 % Electricity 14.09 TWh 48.6% of space heating by DH
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Basics of Finnish energy policy
t
t t t t
Kyoto protocol on the reduction of emissions of greenhouse gases, Kyoto 1997 EU White Paper, Commission in 1997, Council in 1998 Finland´s Energy Strategy 1997 Action Plan for Renewable Energy Sources, 1999 Finland´s Climate Change Strategy, 2001
Þ Proposal for Revised Action Plan for RES in 2002 by a working group
VTT PROCESSES
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
The Action Plan for Renewable Energy in Finland t
t t t t
Launched in 1999 as a programme of the Ministry of Trade and Industry In 2001 part of the National Climate Strategy Revised by a working group in end of the year 2002 Targets for 2005 and 2010 and a vision for 2025 Target in 2010: use of renewable energy sources 412 PJ – – –
100 PJ increase (30%) from the level in 2001 (317 PJ) by biomass 85% of renewable energy utilisation electricity production by RES 29.3 TWh (31.5% of total electricity production)
VTT PROCESSES
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Targets for different biofuels Proposal of the working group
PJ
Liquid fuels for transport
450
414
400
349
350
Biogas
305
300 250
Agrobiomass
267
REF
209
200
Forest chips
150
Firewood excl.forest chips
100
Industrial wood residues
50 Black liquors
0 1995
VTT PROCESSES
2001
2005
2010
2025
Source: Ministry of Trade and Industry
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Bioenergy use by different sector Proposal of the working group PJ 450
414
Firewood (households)
400 350
District heating
305
Industry
300 250
349
267 209
200 150 100 50 0 1995
VTT PROCESSES
2001
2005
2010
2025
Source: Ministry of Trade and Industry
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Targets for electricity production by RE Proposal of the working group TWh 50
45 40 35 30 25 20
44.3
Solar power Wind power Hydropower (10 MW) Bioenergy 22.0
29.3 25.1
18.9
15 10 5 0 1995
VTT PROCESSES
2001
2005
2010
2025
Source: Ministry of Trade and Industry
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Targets for electricity capacity by RE, MW Proposal of the working group
MW 12 000 10 000
10 870
Solar power Wind power Hydropower (10 MW)
8 000 6 000
Bioenergy
6 890 5 170*
5 768
4 777
4 000 2 000 0 1995
2001
2005
* bioenergy estimated
VTT PROCESSES
2010
2025
Source: Ministry of Trade and Industry
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Estimated shutdown schedule of the present electricity generating capacity and demand for new capacity Nominal power (MW) 21000 18000
7500 MW
15000 12000 9000
Demand of new capacity CHP, industrial CHP, district heat Other condensing Coal-condensing Nuclear power Hydro & wind power
6000 3000 0 2000
2010
2020
2030
2040
2050
Source: Energy Visions 2030, VTT VTT PROCESSES
WOOD ENERGY TECHNOLOGY PROGRAMME
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
The biomass reserve of the Finnish forests
Residues from integrated operations 20 + 5 Stumpwood from integrated operations 15
Theoretical biomass potential 45 Mm3 /a
Separate fuelwood operations 5
100 %
Residues from integrated operations 7-11 Stumpwood from integrated operations 1-2
Technically harvestable biomass potential 10-16 Mm3 /a
Separate fuelwood operations 2-3
22-35 %
Residues from integrated operations 4 Stumpwood from integrated operations 0
Goal of the Action Plan for 2010 5 Mm3 /a
Separate fuelwood operations 1
11 %
Residues from integrated operations 1.0 Stumpwood from integrated operations 0.0 Separate fuelwood operations 0.3
VTT PROCESSES
Production of Forest chips in 2001 1.3 Mm3 /a
Integrated harvesting of industrial raw material and fuel Separate harvesting of forest chips
3%
WOOD ENERGY TECHNOLOGY PROGRAMME
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
An estimate of technically harvestable residual biomass from conventional forestry in Finland No maximum cost limit applied
VTT PROCESSES
WOOD ENERGY TECHNOLOGY PROGRAMME
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Use of forest chips since the mid 1950s Use, Mm3 / year 3
2 Climatic change Silviculture employment
Self-sufficiency
Employment silviculture
1
1960
1970
1980
1990
2000
2010
Source: VTT and Finnish Forest Research Institute VTT PROCESSES
WOOD ENERGY TECHNOLOGY PROGRAMME
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Plants using forest chips in Finland in 2001 Small heat entrepreneurs excluded
3 Use m in 2001 200 - 500 Rovaniemi
500 - 1000
Kemi Suomussalmi
1000 - 5000
Oulu Kajaani
5000 - 10 000
Nivala Ilomantsi Seinäjoki
Rauma Turku
Kitee Jyväskylä Mikkeli Jämsä Tampere
Pori
10 000 - 50 000
Valkeakoski Forssa
Anjalankoski
Savonlinna
over 50 000
Rautjärvi
100 m3 ~ 200 MWh
Salo
Source: Finnish Forest Research Institute VTT PROCESSES
WOOD ENERGY TECHNOLOGY PROGRAMME
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Use of solid wood fuels at heating and power plants in 2001. Small-scale use excluded
Bark
Sawdust
Forest chips
Industrial chips
Recycled wood
Pellets and briquets
Other wood
Source: Finnish Forest Research Institute VTT PROCESSES
WOOD ENERGY TECHNOLOGY PROGRAMME
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
The sources of forest chips in 1995 and 2001. Small-scale use excluded 1000 m
3
/ year Young stands
Mature stands
600
557
500 400
300 203
200 139 100 0
65
71
1995
2001
129 49
Delimbed stems
1995
2001
Whole trees
1995
50
2001
Logging residues
1995
2001
Decayed wood etc.
Source: Finnish Forest Research Institute VTT PROCESSES
WOOD ENERGY TECHNOLOGY PROGRAMME
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Trends in the barriers to the large-scale use of forest chips in Finland *=barrier, *=barrier, **= major barrier, ***= very serious barrier
Barrier
1995
2002
*** ** **
** * *
**
*
** * *
* * **
Excessive cost of chips Uncertain chip supply Shortcomings in receiving and handling Unsuitability of boiler for chip combustion Unsatisfactory quality of chips Shortage of contractors Availability in proportion to demand
VTT PROCESSES
WOOD ENERGY TECHNOLOGY PROGRAMME
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Fuel taxes and fiscal changes and fees 8
EUR/MWh Peat Peat with primary product deduction Coal Natural gas Natural gas with deduction of import fee Heavy fuel oil Light fuel oil
7 6 5 4
Energy tax only for fuels used in heat production Light fuel oil
Coal Heavy fuel oil
3 Natural gas
2
Peat
Peat
1 0
1990
-1 -2
1992
1994
1996
1998
Natural gas with deduction of import fee Peat with primary product deduction
Year VTT PROCESSES
2000
2002
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Excise taxes, precautionary stock fees of fuels in Finland, 2003 EUR/MWh 8
7.08
Precautionary stock fee Basic fee Excise tax
7 6
6.28 5.25
5 4 100 %
3 2
100 % 1,59
0
Peat
Wood
CO2 fee=18 EUR/t CO2 VTT PROCESSES
1.91 50 %
23 %
1 0
100 %
Heavy fuel oil
Light fuel oil
Natural gas
Coal
% is based on CO2 factor of each fuel
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VTT TECHNICAL RESEARCH CENTRE OF FINLAND
Energy taxation in Finland, 2003 WIND POWER
No excise taxes
HYDRO POWER MULTIFUEL CHP Excise tax for "heat" fuels < 1 MW Wood No excise taxes
Wood 0 EUR/MWh Coal 6.28 EUR/MWh Peat* 1.59EUR/MWh Natural gas 1.91 EUR/MWh Heavy fuel oil 5.25 EUR/MWh
Coal Peat Natural gas Heavy fuel oil No taxes for "electricity fuels"
Electricity production support 6.9 EUR/MWh
* if consumption is >25 GWh ** if electricity production by renewable energy sources is >100 MWh
VTT PROCESSES
Application within 6 months **
LOCAL CUSTOMS HOUSE
Electricity production support 4.2 EUR/MWh
Heat
Electricity
Application within 6 months ** Electricity production support 6.9 EUR/MWh for forest chips and 4.2 EUR/MWh for other wood and 2.5 EUR/MWh for REF
