sheet 1 van 25 biomass energy installations latvia presentation for stockholm school of economics...

Sheet 1 van 25www.HoSt.nl

Biomass Energy Installations

Latvia

Presentation for Stockholm School of Economics in Riga

Ebbing Osinga (Commercial Director)

HoSt Energo SIA+371 29278886


Introduction Welcome

Who is HoSt and examples of latest biogas and wood CHP technolgy

The concept of the SIA Bio Ziedi biogas project

The Concept of the Valka wood CHP project

Future projects

Program of the day

Sheet 3 van 25www.HoSt.nl 3

More about HoSt Energo:

3 Main Competences

Classical Combustion & CHP

Gasification systems

Fermentation technology (biogas)

www.host.nltel. +371.29278886


• Head office HoSt Enschede• Biogas installation• Gasifier installation• Wood fired CHP installation

Netherlands and Belgium

HoSt has supplied nearly 40% of all Dutch biogas installations and wood fired CHP’s


Europe (Excl. NL & B)• Head office HoSt Enschede• Local offices• Biogas installation• Gasifier installation• Wood fired CHP

Already 3 other projects in Latvia


Two trends meeting each other: Technological Development.

Through on-going technnological improvements renewable energy becomes wider accesible for everyone and biomass can be converted more efficiently and directly into practical different commercial products.

As well technology becomes available on small scale (<2 MW electricity) what makes decentralization of electricity production possible. (Example are biogas plants with farms.)

General developments in the world.

Due to increased demand for energy and fear for climatic change renewable energy products become commercially attractive.

Combination of these trends give many positive impulses to Latvian economy (and environment).


HoSt: Supplier of Biomass Energy systems

Biogas installations

Farm scale Industrial

Circulating fluid bed gasifier

Wood fired Combined heat and power

Digestion from waste, straw, manure, corn

400 up to 3.000 kWe

700 up to 5.000 kWe

2.500 up to 15.000 kWt

HoSt Build 40% of all Biogas units and wood fired CHP in the Netherlands


Important kinds of biomass in Baltics:


Wood / Peat / Straw Manure / slurry Silaged grass / maize Beets / grains Leftovers from food industry other


www.host.nltel. 074-2401807

Biomass type and technology:Type of biomass: Examples: Technolgy:

“Wet” biomass ≤ 65% dm

grass, maïs, quinoa,

slaughter waste, manure

Fermentation

(biogas electricity/heat)

“Medium wet” biomass 35% - 70% dm

Wood chips/dust, peat

Combustion (heat/steam

heat/electricity)

“Dry” biomass ≥ 70% dm

Sludge, straw, chicken manure,

woodchips

Gassification

(syngas heat/steam)

Exceptions: sugars, oils and fats, dry products which are easy soluble.


Wet biomass Medium wet biomass

Dry biomass

Biogas installations Cogeneration on wood

CFB Gasifiers

Biogas systems for farmers:

100-4000 kWe 100-4000 kWt

Industrial biogas installations:

300-4000 kWe300-4000 kWt

Steam cycles: 500-4000 kWe2400- 20000 kWt

Gasifiers with or without CHP:

600-2.000 kWe2400- 4500 kWt

Farmers, with or without manure

Industrial or other liquid wasts

Wood, peat Dry manure, straw, sludge, bone meal




WORLD MARKET TRENDS

&

DEVELOPMENTS IN THE ENERGY MARKETS



WORLD MARKET TRENDS & DEVELOPMENTS IN THE ENERGY MARKETS

Increased demand for energy in general; Improvement of energy efficiency; however, growing share of electricity

consumption and more world consumers; Environmental concerns and introduction of CO2 Credit trade schemes; Increasing costs for logistics; and International fuel/raw material markets are very volatile.

Leading to long term increase in oil and gas prices (and shortages);

Local energy sources become more atractive;



Developments in Energy prices (2001 – 2009)

2001 2002 2003 2004 2005 2006 2007 2008 2009Ls 0.00

Ls 10.00

Ls 20.00

Ls 30.00

Ls 40.00

Ls 50.00

Ls 60.00

Ls 70.00

Ls 80.00

Ls 90.00

Wood Chips (loose m³) gas 1000 n.m3 (small consumers) electricity kWh (larger consumer) SIA Valkas BEK (chips)

SIA "Rīgas Siltums" (gas)

Pri

ces

as p

er M

W

Sheet 14 van 25www.HoSt.nlbiomasas koģenerācijas tehnoloģijas

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Developments in Energy delivery prices (1997 – 2009)

1997

/199

8

1998

/199

9

2000

/200

1

2002

/200

3

2003

/200

4

2004

/200

5

2005

/200

6

2006

/200

7

2007

/200

8

2008

/200

9

Ls -

Ls 5.00

Ls 10.00

Ls 15.00

Ls 20.00

Ls 25.00

Ls 30.00

Ls 35.00

Ls 40.00

Ls 45.00

Ls 50.00

Siltumenerģijas tarifu izmaiņas 1997-2008 gads (piegādes grupa)

SIA "Kuldīgas Siltumtīkli" (Šķēlda)

SIA "Madonas Siltums" (Šķēlda)

SIA "Pārventas Siltums" (mazut)

SIA "Rīgas Siltums" (gāze)

Average tariff:

Year / gads

Ls/

MW

h

Tariffs of heat delivery to end consumers / increases compared over 10 years period



Developments in Energy production prices (1997 – 2009)

1997

/199

8

1998

/199

9

2000

/200

1

2002

/200

3

2003

/200

4

2004

/200

5

2005

/200

6

2006

/200

7

2007

/200

8

2008

/200

90

5

10

15

20

25

30

Siltumenerģijas tarufu izmaiņas (ražošanas grupa)

SIA Valkas BEK (Šķēlda) SIA "Ludzas Bio-Enerģija" (Šķēlda) TEC-1 (gāze) TEC-2 (gāze) Vidējā tarifs:

Year

Ls/

MW

h

Tariffs of heat producers



MARKET TRENDS IN THE LATVIAN ENERGY SECTOR

Cost increase of inputs like energy, labor, capital;

Energy becomes rather expensive for Latvian inhabitants:

salaries/social fee’s are not keeping up with social expenses on heat

and other communal expenses;

Shift from “White” to “forest” chips: forest potential finally sourced;

Electricity consumption to increase as LV base load decreases;

No further gasification (by GazProm/Latvijas Gāze) to be expected;


Gas and Oil prices will rise, due to shortage and increasing demand: - EU becomes more depending on Russia and Middle East

EU Governmental goal - Produce renewable energy and reduce CO2 emission

Developments of costs factors in agriculture and municipalities

2006 2007 2008 2009 2010 20110.0

50.0

100.0

150.0

Diesel price for agriculture and heating (EUR/100 kg)

Diesel price for agricul-ture and heating (EUR/100 kg)


World Food demand will rise:- Maize and grain will become more expansive

Fertilizer price will rise due to:- Increasing demand due to higher food process; - Increasing gas prices;- shortage on phosphates = energy product;

Developments of food prices.

2006 2007 2008 2009 2010 20110.0

50.0100.0150.0200.0250.0300.0

Soft-Wheat prices (EUR/t)

Soft-Wheat prices (EUR/t)



TRENDS IN BIOGAS

technology & costs factors


CASE STUDY: SIA Bio Ziedi: Concept of the biogas project


Digesters of SIA Bio Ziedi (also winter proof)

SIA Bio Ziedi: Concept of the biogas project


Gas engine Combined heat and power

Conversion of Organic Biomass in to Methane and CO2 by bacteria's

In a gas tight,heated at 40-50 °Cmixed Reactor tank

Liquid Manure

Solids (straw, manure, waste) Liquid waste

Fertilizer

What is digestion?


Picture of 60 m3solid feeding system of SIA Bio Ziedi

SIA Bio Ziedi: Concept of the biogas project

Input at full load:(ton per day)

100 ton liquid manure50 ton of maize (27% solids)50 ton of grass, to replace maize in future.25 ton of straw manure25 ton of chicken manure


Co-digesting manure, energy crops, food wasteand organic residues

250 tot 2.500 kWe Pure manure digesting, modular 62 kWe

Other projects: Biogas installations farm scale


Digestion of organic products

350 till 4.000 kWe

Other projects: Biogas installations industrial scale


Dutch Innovation 1: Very broad experience with all kinds of organic waste

Co- digestion

Fruit and vegetable GrassSugar beat pulp Orange waste Onions, flower bulbs

Liquid waste Dairy, Slaughter house,

Glycerin Sludge, manure

Influence of the worlds tendency of Biogas (agricultural) waste instead of corn


Digested material: Over date super market food , Thermal treatment at 70° C

Belgium Order Eneco: modify 3 biogas plants to thick material and food waste

Farm scale biogas installation: Bio-Energie Herk - Belgium


Dutch innovation: Thermal pre-treatment at 140°C - Increased gas production per ton

Biogas installation s with thermal pre -treatment Cat. 2 material BIR I (2004) and BIR II (2007) Rendac /Ecoson Aaylex (Romania)

- Category 2 material- Slaughter house waste- Sanitation 140°C, 20 minutes (conform EU-regulations 1774/2002



FINANCIAL FACTORS in biogas plants:

Costs:1. Ingredients : biomass and/or biowaste2. Operational : maintenance, monitoring, biology and insurances3. Capital : investment, interest, subsidy

- Income:1. sales of electricity2. sales of heat3. production of minerals4. income from biowaste




The Costs:

Ingredients / major biomass for biogas in Latvia:

Biomass Yield

kWh/t

Cost price

EUR/t

Gross income: (160 €/MWh)

EUR/t

Manure 84 kWh / ton 0 EUR/ton 13,40 EUR/t

Grass silage 450 kWh /ton 18 EUR/ton 54,00 EUR/t

Maize silage 395 kWh /ton 25 EUR/ton 38,20 EUR/t




The Costs: Operational : maintenance, monitoring, biology and insurances

Operational costs: per kWh

Gas engine 0,012 EUR/ kWh 2011 price level

Other maintenance 0,007 EUR/kWh 2011 price level

Kasko insurance See hereunder

Income loss insurance Together 1,1 % on income

Only in combination with licensed maintenance

Owners costs and equipment

Neglectible if in combination with existing farm.



Cost vs income, a case study Biogas 1 MW electricity co-generation plant

Biomass need Energy yield Price of

biomass Costs price:

(m3/year) (MWh/year) (EUR/m3) (EUR/MWh net)Capital costs € 59 Operational costs € 30 Biomass costs: - 400 - 450 dairy cows manure 13 830 1 095 € - € - - maize silage or 18 600 8 000 € 25 € 58 - grass silage 16 275 8 000 € 18 € 37 Total costs: - if on Maize silage € 147 - if on grass silage € 126 Income: Net supply: Net supply: Sales Price: Sales: (MWh, CHP) (MWh, no CHP) (EUR/MWh) (EUR/MWh) - Electricity 1,00 € 170 € 170 - Heat 0,70 2,05 € 40 € 28 € 198

PROFIT:

Electricity & heat:

Only electricity

Electricity & heat:

Maximum profit for dairy farm: EUR/h EUR/year EUR/year - Maximum profit with maize silage: € 51 € 23 € 407 567 - Maximum profit with grass silage: € 72 € 44 € 579 619



TRENDS IN WOOD FIRED CHP

technology & costs factors

(CHP = Combined Heat & Power)


Wood fired Combined Heat and Power (CHP)


Wood fired Combined Heat and Power

Projects in Latvia:

Kraslavas central boilerhouse

(9 MW steam, 0,7 MW electricity).

See picture

Enefit Power & Heat Valka:

Management & Engineering wood fired co-generation (10 MW, 2,4 MW el);

Talsu Bioenergija

Flue gas condensing technology


- Fuel : Chicken manure and forestry - 1.000 kg/hr unit, gas to gas motor- 4 MWth input, 1 MWe

Circulating fluid bed gasifier

Overview Gasifier Portugal



COMPARISON WOOD CHP vs GASSIFIER

WOOD FIRED CHP: GASIFIER (WITH CHP):

Large availability >90% Low availability <80%

Low maintenance costs (0,2 €cent/kWh) High maintenance costs (1.5 €cent)

Investment: 2500-4000 €/kWe Investment: 3500-4500 €/kWe

Wet fuel not problematic Needs low moisture fuel (<30% mitrums)

Biomass fraction: <15 cm Max. Biomass fraction (<7 cm)

Electricity efficiency: 17-26% Electricity efficiency: 24-29%

Total efficiency: 85-100% Kopējā lietderība: 75-90%

Low technical risks High technological risks



COMPARISON WOOD CHP: Steam vs ORC

Steam: ORC

Large availability >90% Large availability ~90%

Low maintenance costs (<1,0 €cent/kWh) Medium maintenance costs (~1.0 €cent)

Investment: 2500-4000 €/kWe Investment: 3000-4750 €/kWe

Wet fuel not problematic Idem

Biomass ash not problematic Biomass ash is problematic (gives lower efficiency)

Electricity efficiency: 17-26% Electricity efficiency: 12-16%

Total efficiency: 88-113% Kopējā lietderība: 84-109%

Low technical risks Higher technological risks (explosion and working environment due to oil-gasses)



FINANCIAL FACTORS in wood fuel CHP plants:

Costs:

1. Ingredients : biomass = wood fuel (mostly straight from forest)alternatively up to 10% peat or straw

2. Operational : maintenance, monitoring, insurances3. Capital : investment, interest, subsidy4. Overhead : depending on scale overhead could be needed.

- Income:

1. sales of electricity2. sales of heat



FINANCIAL FACTORS in wood fuel CHP plants:

Station CostsEUR/h

IncomeEUR/h

Net income

Wood fuel CHP :1 MW electricity4 MW heat

Wood: 8 m3 / h =10 m3 x 10 €/m3 =

100 €/h

Electricity = 90% x 168 €/MWh =

151, 80 €/h

7200 MWh electricity

32.800 MWh heat

Operational & Overhead:

€25 / h

Heat = 4 MW x 40 €/MWh = 160 €/h

Capital costs: (based on 15 years)

€67 / h

Under condition heat is sold commercially:

Total costs/h:€192/h

Total income:€311,80

€120 / h€ 980 000 / year

sheet 1 van 25 biomass energy installations latvia presentation for stockholm school of economics...

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