march 7, 2017 bioheat applications residential to large

Bioheat Applications – From Residential to Large Emitters

Jamie Stephen, PhD Managing Director, TorchLight Bioresources QIEEP Fellow, Queen’s University

Warren Mabee, PhD Canada Research Chair, Renewable Energy Development & Implementation Associate Professor & Department Head, Queen’s University Senior Consultant, TorchLight Bioresources

March 7, 2017 Supporting Biomass Heat in Ontario Bio-Heat Community of Practice Workshop

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Key Messages Bioheat Applications Overview Bioheat Database Remote Community Oil Sands RNG

1. Bioheat sector is growing, but small

2. Government plays a key role in success

3. Unique bioheat opportunities should be explored

4. Policies generally downplay the role of bio

5. Bioenergy must be viewed as an adaptation strategy

Overview

• The Canadian Bioheat Database

• Novel Bioheat Examples:

Residential BioHeat in Remote Communities for Diesel-fired Electricity Reduction

Process Heat in Oil Sands Operations for Transportation Fuels

Biosteam in Chemical Production

Renewable Natural Gas (RNG/Biomethane)

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Bioheat Applications Overview Bioheat Database Remote Community Oil Sands Biosteam RNG

Updating & Validation

• Canadian Bioheat Database was created in 2013/2014 by TorchLight under contract with NRCan (CanmetENERGY – Ottawa)

• 150 kW to 5 MW; major characteristics of project

• 230 in database in March, 2014; 275 in March, 2016

• Interviews vs. internet and reports

• Validate existing data

• Collaborative data gathering between TorchLight and NRCan

• Opportunities for filling data gaps – time limited 4

Location

• QC and BC lead; NWT & PEI greatest growth

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Scale

• >60% less than 1 MW; larger projects are greenhouses & industry

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Scale • Larger projects regionally concentrated

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Sector

• Institutions (schools, hospitals) most active market

• Growth in district energy (economies-of-scale)

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Sector • Small industrial concentrated; institutional disbursed

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Installation Date

• CAGR of >17%; one successful project leads to others

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Feedstocks • High quality predominant at this scale

• Feeding systems, ash handling, logistics, etc. limit low quality fuels

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Greenhouse Gas Impact

• Combustion emissions only

• Avoided fuel known vs. unknown

• BC-ON = NG; QC-NL, Territories = Heating oil

• Efficiencies: NG=90%; Propane=85%; Oil=80%; Coal=70%

• Full load equivalent hours: 2200 (2400 for Territories)

• 230,000 t CO2 eq/yr for 275 projects

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Update for 2017

• New projects

• Validate data

• Expand to include 50-150 kW commercial/institutional

• High volume suppliers

• Wood chip quality control; emissions monitoring

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Conclusions • Industry growth concentrated in PE, NT, QC, BC

• QC & BC have greatest number of projects

• QC appears to be most competitive jurisdiction

• Unrestrictive policy & dependence upon heating oil more important than feedstock availability

• Majority of projects <1 MW

• Institutional market is strongest at present

• A few developers and manufacturers = most new projects

• High quality feedstocks preferred

• Avoided fuel known vs. unknown

• BC-ON = NG; QC-NL, Territories = Heating oil

• Efficiencies: NG=90%; Propane=85%; Oil=80%; Coal=70%

• Full load equivalent hours: 2200 (2400 for Territories)

• 230,000 t CO2 eq/yr for 275 projects

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Background Remote Communities in Canada

• Not connected to North American electrical grid ~200 communities Population of ~ 200,000 Energy cost up to 10x average in Canada Many First Nations (aboriginal) communities

• Micro-grid generation Diesel dominates Small hydro common Several have integrated wind and/or solar

• Firewood heating common • Electric hot water

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Case Study Bella Coola, British Columbia

• Bella Coola Valley

Traditional territory of the Nuxalk First Nation

450 km on gravel road to nearest urban centre

1900 people in the valley; 850 on-reserve

Average family income <$30,000 (Reserve)

Reserve estimates of unemployed: 70-80%

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Energy on the Nuxalk Reserve, BC

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Heating Oil

Propane Electricity Firewood

Consumption 435,000 L 110,000 L 4,484,000 kWh 900 cords

Cost of Heat ($/MWh)

163 141 130 (410*) 46

• 275 residences, 30 commercial/institutional buildings Typical residence: firewood, heating oil, and electric

hot water Commercial buildings usually propane

• Yearly consumption of ~12,000 MWh (41,000 MMBTU) Average cost of heat = $100/MWh

• Comparison of DES vs. Decentralized Single energy centre vs. boiler in each building Local (chip) vs. imported (pellet) fuel


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Bella Coola Village

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Four Mile

Economics & Risks Summary Results

District Energy System Four scenarios (2.1-5.2 MW) $128-154/MWh

Decentralized Boilers $110-127/MWh Still dependent upon fuel imports

Low cost firewood Pellet boilers/DES higher cost Firewood boilers may be best option

Electricity is subsidized Residents pay $0.13/kWh; diesel cost is $0.40/kWh BC Hydro has incentive to reduce electrical space and

hot water heating: 5-7 year payback

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Background on Canada’s Oil Sands

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• Canada has the world’s 3rd largest oil reserves: 173 B bbl

• Ultimate potential is 315 B bbl (larger than Saudi reserves)

• Oil sands are 97% of Canada’s proven reserves

• Production: 2.3 M bpd in 2014 to 4 M bpd in 2024 World = 94 M bpd

• CDN Economic impact 2010 to 2035 forecast: $2.1 trillion

• Contribute >$750 B to government revenue (2010-2035)

• 2014: 0.5 EJ/yr of natural gas

Bioheat Applications Overview Bioheat Database Remote Community

Oil Sands Biosteam RNG

Background on Canada’s Oil Sands

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• Surface mining & In situ recovery options

• SAGD is most common In situ method

• Surface mining = more water challenges; lower GHGs

• Only 20% of oil sands recoverable using surface mining

• ~50% of recovery is In situ and main source of growth

• ~55% of bitumen upgraded to synthetic crude oil in Alberta but forecast to drop to 20% by 2026

• Bitumen must be blended with a diluent (e.g., natural gas condensate) to pipeline



Well-To-Refinery GHG Emissions

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Alternative Approach to Liquid Biofuels

Cellulosic Ethanol Thermal Bioenergy & Biohydrogen in Oil Sands

300 L EtOH/bdt (200 L gasoline) 1450 L SCO/bdt (gasoline cut = 650 L)

CHP for internal demand CHP for In situ recovery

33% energy yield to ethanol 80% (or more) thermal efficiency

Electricity exports? Displace coal vs. gas?

80% GHG ↓ from CDN baseline 90% GHG ↓ Well-to-Refinery

↓ ~0.5 t CO2e/bdt Thermal: ↓ ~1.0 t CO2e/bdt

• Low carbon fuel standard: reduce life cycle GHG emissions by 20% from 100 g CO2e/MJ fuel baseline from 1 BL

• Cellulosic ethanol: 1.1 M bdt

• Thermal bioenergy: 500 k bdt



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Biosteam for Manufacturing?

• Eneco to provide ‘biosteam’ for Delfzijl Chemie Park in the Netherlands (via CHP generation)

• AkzoNobel Specialty Chemicals is main tenant

• Retrofit to existing biomass power plant

• Site accounts for 10% of Dutch chemical production

Bioheat Applications Overview Bioheat Database Remote Community Oil Sands

Biosteam RNG

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Renewable Natural Gas (Biomethane)

• Most likely bioheat for detached homes in cities with natural gas

• Agriculture and municipal feedstocks will dominate

• Greatest potential volume is forest feedstocks

• $12-15/GJ for ag/municipal; double that for forest

• In Ontario, much lower cost than electric heat

• Competitor is electricity, NOT natural gas

• Europe = government-led approach

• Canada = utility-led approach

• Biggest hurdle at present is regulatory situation

• Regulated utilities limited by the OEB

Bioheat Applications Overview Bioheat Database Remote Community Oil Sands Biosteam

RNG

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Fort McMurray Wildfires 2016

• $9.5B in costs

• 590,000 ha burned (>2x size of Luxembourg)

Mitgation AND Adaptation


Conclusion

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1. Bioheat sector is growing, but small

2. Government plays a key role in success

3. Unique bioheat opportunities should be explored

4. Policies generally downplay the role of bio

5. Bioenergy must be viewed as an adaptation strategy


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Jamie Stephen, PhD [email protected] www.torchlightbioresources.com

Warren Mabee, PhD [email protected] www.queensu.ca

March 7, 2017 Supporting Biomass Heat in Ontario Bio-Heat Community of Practice Workshop

Thank you

Bioheat Applications – From Residential to Large Emitters

Alberta in 2013

Net Electricity Supply

Ontario Demand Decreased by 13% Since 2005

Alberta Demand Increased by 42% Since 2000

2014

• Capacity = 6258 MW

• Generation = 44.4 TWh

• Capacity Factor = 81%

• Coal consumption (@ 32% net efficiency) = 500 PJ of fuel (500 M GJ)

Post 2029 Federal Regulations

• Capacity = 2619 MW

• Generation = 18.6 TWh

• Coal consumption (@ 32% net efficiency) = 210 PJ of fuel (210 M GJ)

• Need ~12.5 M bdt biomass to satisfy demand

Gamut of Bioenergy Overview Energy in Canada Biomass Resources Bioheat

Coal Displacement Oil Sands Conclusion

Roundwood Harvest – Canada

Pulp Production – Canada

Facilitator

Alberta Electricity Pool Price

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Facilitator

Alberta Wholesale Gas Price

Absender | Titel | TT.MM.JJJJ | Seite 39

march 7, 2017 bioheat applications residential to large

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