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© Natural Resources Institute Finland © Natural Resources Institute Finland
Dr. Lauri Sikanen Group Manager, Bioeconomy Business Natural Resources Institute Finland (Luke)
First Commercial Pyrolysis Oil Plant in Finland – Technology, Value Network and Socio-Economic Effects
© Natural Resources Institute Finland
The Big Picture
2 28.10.2016
The plant is located in the city of Joensuu, in North-Karelia, which wants to be free from heating oil in 2020. ”Oil-free North-Karelia Capaign”.
Joensuu City has 200km district heating pipelines under the city and the water in pipes is heated by one big CHP and 9 small heat only plants using heavy heating oil.
© Natural Resources Institute Finland 4 28.10.2016
is our most famous experienced
producer of pulp and paper
machinery
wants to be the most green energy
company in the Major League of
Europe
© Natural Resources Institute Finland 5 28.10.2016
Long-term R&D co-operation with partners produces results – Pyrolysis as an example
1990’s
First R&D projects
including Finnish
companies
1980’s
First Finnish R&D
laboratory studies on
pyrolysis (VTT)
2007 Technology
development
consortium formed
(Valmet, UPM, VTT)
Tekes support starts
Cold model tests for
oil production start at
Valmet R&D Center in
Tampere
2009
Fortum joins
development
consortium
Bio-oil pilot tests at
Valmet R&D Center
starts
2010
Pyrolysis oil
combustion tests
Start of concept
planning for a
commercial demo
plant
2012
Fortum and Valmet
sign contract on
Joensuu plant
2013 - R&D projects on
pyrolysis oil
upgrading
on-going
Press release
March 11, 2014
Fortum, UPM and
Valmet are jointly
developing
technology to
produce advanced
biomass based fuels
2013 Commissioning and
commercial operation
of Joensuu plant
© Valmet | Jussi Mäntymiemi: 5
June 30, 2015
Joensuu plant
handed over to
Fortum
© Natural Resources Institute Finland 6
Integrated pyrolysis oil production technology Valmet DCS High pressure steam Turbine
Electricity
Non-condensible gas
District heat
Condenser Crusher
Drying
Woody biomass
Fluidized bed boiler Pyrolysis unit Bio-oil
© Natural Resources Institute Finland
Facts and Figures
7 28.10.2016
• Annual production capacity 50 000 tonnes of oil
• Annual wood use 250 000 solid m3 per year (100 000 dry tonnes)
• Overall energy efficiency of the integrated system: 90%
• Investment cost: 32M€, subsidised 8M€ by state.
© Natural Resources Institute Finland 8 28.10.2016
50,000 t per annum
10,000 houses could be heated
Up to
90% less greenhouse
emissions
160 tonnes of bio-oil exported
to E.ON’s Karlshamn power
plant in Sweden
320 t less sulphur
emissions
© Natural Resources Institute Finland
What is pyrolysis oil?
11 28.10.2016
• Extremely complex chemical mix
• Very acidy (pH 2-4) and contains a lot of water (15-30%, but not in the form of real water).
• Can be used as a substitute of heavy heating oil after small adjustments in pipes, containers and feeding.
• More valuable large scale use is coming, but we do not know when .
© Natural Resources Institute Finland
Bio-oil combustion is scalable to wide size range
• Fortum, Joensuu, Finland – 10 MWth
• Savon Voima, Iisalmi, Finland – 10 MWth
• Fortum, Vermo, Finland – 50 MWth
• E.ON, Karlshamn, Sweden – 174 MWth
12
E.On Karlshamn, photo courtesy of E.On
© Natural Resources Institute Finland
Supply Chains
13 28.10.2016
• Cut-to-lenght –method, harvester-forwarder-timber truck
• Small size timber from early thinnings (no harvesting residues or hog fuel)
• Comminution just before process to avoid the escape of volatile compounds
© Natural Resources Institute Finland
Socio-economic effects
14 28.10.2016
• Employs 8 full-time supply chains (harvester-forwarder-truck) to feed the plant.
• Employment effect: 55 direct man-years in supply and 7 at the plant + about 15 indirect jobs.
• Circulates 8.5 M€ annually in local economy instead of paying it out in oil bills.
© Natural Resources Institute Finland
Why this works in Finland?
15 28.10.2016
• High quality feedstock & existing procurement systems/expertise
• Verified technology and high motivation
• Effective integration => low investment cost
• Possibility to maintain economic sustainability (despite that oil is not too cheap in Finland) and buy time for further development.
© Natural Resources Institute Finland
Concluding remarks
16 28.10.2016
• Integrated flash pyrolysis is probably the most effective way to liquefy wood to raw material of further refining.
• and know what they are doing and we all hope that academia soon finds methods to increase the value created in the process.
• Success requires careful adaptation into the operational environment.