delivering biomass to europe, the port of rotterdam … · logo london, october 1-2, 2012 port of...

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London, October 1-2, 2012

Port of Rotterdam

D E L I V E R I N G B I O M A S S T O E U R O P E , T H E

P O R T O F R O T T E R D A M

EUROPEAN BIOMASS POWER GENERATION CONFERENCE

Logo Port of Rotterdam

Rotterdam, The Netherlands

• Deepwater port

• No locks

• 435 million tons in 2011

• 12.000 ha

• 89 km quay

• No. 5 port in the World

• No. 1 port in Europe

• Investments € 500 million.

ROTTERDAM

© Copyright - Port of Rotterdam - 2012 27-9-2012 2

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Biomass for climate change

International Energy Agency

• Biomass

• Coal and CCS

• Gas


INCREASE BIOMASS, REDUCE CO2

POWER (MW)

7000

2011

CO2

SOLAR WIND

BIOMASS

COAL + CCS

COAL

GAS

Logo Rotterdam Energy Port:

Power generation capacity

• GdF Suez (2013) - coal/bio

• E.ON Benelux MPP3 (2013)-

coal/bio

• Enecogen (2011) - gas

• Intergen-Maasstroom (2010) -

gas

• E.ON Benelux MPP1/MPP2

(1985) - coal/bio

• Wind


Logo Projected CO2 emissions & reduction Rotterdam

REDUCTION OF CO2


Rotterdam Climate Initiative –

27mt CO2 reduction:

1. Energy efficiency: 5.0mt

2. Biomass: 4.5mt

3. CCS: 17.5mt

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27-9-2012 © Copyright - Port of Rotterdam - 2012 6

ECONOMICS LOGISTICS

Logo Wood pellets vs coal

Coal is the more profitable fuel in power generation


PSS -2.40€/MWh

CDS 9.34€/MWh

PSS -43.62€/MWh

CDS -0.13€/MWh

Coal €70/ton

Pellets €135/ton

€/MWh - August 2012 UK NL

electricity 53.22 43.75

pellet 26.25 26.25

coal 10.35 10.35

CO2 9.38 9.38

pellet spark spread -2.40 -43.75

clean dark spread 9.34 -0.13

clean dark spread minus pellet spark spread 11.74 43.62

Coal power plant with 30% efficiency

Source: Argus, July/August

Economics of co-firing

Logo Logistic costs

SHIPPING € 18-46/T PORT € 2-3/T


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Ship size development Year Size range/DWT

2000 750 –10,000

2010 1,500‐40,000

2012 45,000

2013 50,000- 60,000

(supramax)

2013/’15 - 80,000

(Panamax)

PANAMAX


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TRENDS/SCENARIO'S 2030

Logo Wood pellet demand scenario's 2010-2030 (1)

• Business as usual (BAU): continuation of

current renewable energy support and

policy instruments to 2030, but the RES-

2020 targets will not be met.

• Business as Usual, barrier mitigated

(BAU-bm): similar to BAU, a continuation

of current policies is assumed, but non-

economic barriers will be mitigated.

• Strengthened National Policies (SNP):

improvement and fine-tuning of current

policies implemented to meet the RES

2020 targets.

WOOD PELLET DEMAND (COPERNICUS STUDY)


Total primary demand of solid biomass for electricity and heat in

the BAU scenario - 15Mt in 2030

Logo Wood pellet demand scenario’s 2010-2030 (2)

WOOD PELLET DEMAND (COPERNICUS STUDY): WORK IN PROGRESS

27-9-2012 12

Total primary demand of solid biomass for electricity

and heat in the BAU-bm scenario - 24Mt in 2030

Total primary demand of solid biomass for electricity

and heat in the SNP scenario - 25 Mt in 2030

SNP: exclusive biomass obligation needed for NL RES target. If included: SNP growth already

in 2020

Logo Supply 2020 - 2030

• 2012-2020: NA export

• 2020-2030:

• NA more domestic use,

export declines

• Potential new suppliers: BRA,

Russia, Ukraine

• Issues: sustainability, logistics

• Other potential suppliers:

AUS, MAL, AFR: but export to

EU depends on development

of Asian demand (China?)

Source: Copernicus 2012 GLOBAL DEMAND AND SUPPLY


Logo Transition

TRANSITION

2010-2020

• Co-firing and conversion

• Increasing demand = imports

• Growth in overseas production,

energy crops

• Dedicated pellet plants

• Certification and standardization

initiatives

• Increase in trade, coal traders enter

wood pellet market

• OTC trade, clearing

2020-2030

• Co-firing, residential heating, bio-

refining and bio-chemicals

• Imports, blending and stockpiling

• Torrefaction?

• Biomass is a commodity

• Market liquidity, physical + financial

trading

• Standard contract: Index CIF ARA

2000-2010

• Still in experimental phase

• Biomass plants, local feedstock

• Start up of co-firing

• Dependent on subsidies

• Feedstock: residues, waste

• Ad hoc trade, bilateral contracts

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HUB: ECONOMIES OF SCALE PORT OF ROTTERDAM

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• EU seaborne steam coal

imports: 125 Million Tons p/a

• Large import flows, capesize

bulk carriers

• Large stocks in ARA ports

(security of supply for power

plants, physical trading)

• Coal imports are concentrated

into a few large hub ports to

create economies of scale

• The transition in biomass needs

a hub port!!


Lessons to be learned from the thermal coal market

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ROTTERDAM

Rotterdam – central location


HUB: ECONOMIES OF SCALE!

Captive cargo for energy

generation Rotterdam

> 3000MW coal/bio fired capacity

> Syngas cluster (2018/2020)

Hub:

• Hinterland NL (Essent, GdF,

Vattenfall)

• UK (RWE, Drax, E.ON, IPP’s)

• Belgium (GdF, E.ON)

• Denmark (Vattenfall)

• Germany (residential heating)

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Bioport HUB

BioPort/Hub: terminals Biomass transhipment/storage terminals

© Copyright - Port of Rotterdam - 2012 27-9-2012

BIOMASS TERMINALS

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EMO

EBS 1

2

2

1

1

Marcor 3

RBT 4

3

4

5 ZHD

5

• Ship to shore

• Board-board

• Covered storage (500,000m3)

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ROTTERDAM BIOPORT PORT OF ROTTERDAM

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Port of Rotterdam map

ENERGY PORT


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ENERGY PORT + FUEL HUB


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ENERGY PORT + FUEL HUB + CHEMICAL CLUSTER


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Biomass use Biomass for co-firing in power

plants

• Legislation: 20% in 2020 (RES)

Biofuels production and storage

• Legislation: 10% renewable

fuels in 2020

Biochemicals

• No legislation yet: market pull,

pilots

BIOMASS ROTTERDAM


Energy Port

Bio-energy Fuel Hub

Bio-fuels

Biobased

industry

Chemical

Cluster

Bio-chemicals

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Rotterdam offer Rotterdam BioPort

• Demand NW EU increase

• Import increase

• Shipment size increase

• Hub needed for economies of

scale and security of supply

• Rotterdam excellent position for

hub:

• captive, • central, • energy feedstock hub, • efficient handling • cascading

MAASVLAKTE BIOBASED CLUSTER


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Hugo du Mez

[email protected]

+31 6 20134664

THANK YOU PORT OF ROTTERDAM

mailto:[email protected]

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ADDITIONAL SLIDES PORT OF ROTTERDAM

Logo European Bulk Services (EBS)

Minerals, coal, iron ore,

agribulk, biomass

• 4.3 mio t (2010)

• Storage silos cap 400,000 m3

• 35 silos and sheds

• Surface area 320,000 m2

• 14,5 m draught

Botlek


Logo Rotterdam Bulk Terminal (RBT)

Minerals, agribulk, coal, biomass

• 1.1 mio t (2010)

• 8 steel storage silos (80,000 m3)

• Covered shed (15,000 m3)

• Covered storage shed (3,696

m2)

• 3 km covered belt system

Vlaardingen


Logo Zeehavenbedrijf Dordrecht (ZHD)

Minerals, scrap, coal, general

cargo, biomass

• 2.7 mio t (2010)

• Surface area 230,000 m2

• Quay length 1,750 m (draught

9.5m)

• transhipment biomass

Dordrecht


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Bioport

BIOBASED CLUSTER MV2


delivering biomass to europe, the port of rotterdam … · logo london, october 1-2, 2012 port of...

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