competition of energy carriers
DESCRIPTION
Wood pellets in competition with other energycarriers to provide heat – a market analysisTRANSCRIPT
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© KWA EVIVA GMBH 2010 VOGELSANGER STRASSE 250 I 50825 KÖLN I GERMANY
Wood pellets in competition with other energycarriers to provide heat – a market analysis
Frank Schillig
International Pelletforum 2011, Stuttgart , 5.10.2011
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© KWA EVIVA GMBH 2010 Eviva – nachhaltige Energiedienstleistungen
Content
• Satisfying heat demand today
• Price and price development of different energy carriers
• Excursus heat from biogas plants
• Economics of heat suppy– Investment and O&M costs
– levelized heat costs
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Energy carriers to satisfy German heat demand
2006 2010
…and heat from renewable energy sources?
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Structure of heat supply from renewable energy sources in
Germany 2010
Near-surface
geothermal energy:
3.9 %
Deep geothermal
energy:
0.2 %
Solar thermal energy:
3.8 %
Biogenic share of
waste:
8.7 %
Landfill gas:
0.3 %
Sewage gas:
0.8 %
Biogas:
5.6 % Biogenic liquid fuels:
3.0 %
Biogenic solid fuels (co-
generation power
installations and
heating installations):
5.3 %
Biogenic solid fuels
(industry):
15.0 %
Biogenic solid fuels
(households):
53.4 %
* Solid and liquid biomass, biogas, sewage and landfill gas, biogenic share of waste; Source: BMU-KI III 1 according to Working Group on Renewable Energy-Statistics (AGEE-Stat); 1 TWh = 1 Bill. kWh; deviations in the totals are due to rounding; as at: July 2011; all figures provisional
Total: 136.1 TWh
Share of biomass *: 92 %
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Energy from biomasse – heating values
• LHV wood/straw (absolute dry): ~18 MJ/kg – ~ 65-70% hard coal
– ~40% fuel oil
– ~50% natural gas
• LHV vegetable oils: ~ 35 MJ/kg (~90% diesel)
• LHV biogas: ~ 20-22 MJ/m3 (~55-65% natural gas)
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© KWA EVIVA GMBH 2010 Eviva – nachhaltige Energiedienstleistungen
Price development of different energy carriers
Wood chipsWood pelletsFuel oilNatural gas
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Investment costs of different heating systems
Oil heating gas heating pellet heating wood chip heating
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O&M costs – comparing wood chip with oil heatings
Oil heating Wood chip heating
Annuised Investment
O&M
Fuel
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Excurs biogas heat
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Biogas-
CHP-unit school pool Etc.
biogas pipeline
Heat offtake Heat offtake Heat offtake
Local district heating gridHeat exchanger
Supply boundary
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Biogas heat from CHP
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Why biogas heat? I
• Biogas plants: ~70% of the CHP-unit heat isavailable
• >6000 biogas plants in Germany with >2200 MWel installed capacity � >2300 MWthcapacity
• Heat usage limited: ~50%, often only to heatfarm buildings or neighbouring houses
• EEG 2012: heat usage > 60% !
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Why biogas heat? II
• Improved heat usage results in:– Income from heat sales– Income from CHP-bonus
� improved economics– Relating the heat price to fossile fuel prices �
increased economic stability by hedging pricevariations
– Constant EEG-tariffs + market driven heat sales� hedging the market variations in biogas substrateprices
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© KWA EVIVA GMBH 2010 Eviva – nachhaltige Energiedienstleistungen
Comparison of levelised heat costs for different heating systems
Fuel oilNatural gasWood pelletsWood chipsBiogas heat
Operational years
Leve
lised
hea
t cos
ts (
€/kW
h)
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© KWA EVIVA GMBH 2010 Eviva – nachhaltige Energiedienstleistungen
summary
• Heat supply from biomass more economic in themid- and long-term
• Today wood chips (HHS) and Pellets can becompetitive to oil and gas, depending on the case– Investment costs higher for biomass based
heatings compared to oil or gas heatings– Energy carrier prices of oil and gas higher than
wood chips or pellets• Biogas heat can be very competitve if available
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