Karthikeyan Natarajan Doctoral student
School of Forest Sciences, UEF, Joensuu [email protected]
Supervisors Prof. Paavo Pelkonen, Dr. Sylvain Leduc School of Forest Sciences, International Institute for Applied University of Eastern Finland, Joensuu Systems Analysis (IIASA),Vienna
BeWhere Finland – A comprehensive modelling approach for sustainable bioenergy production in
Finland
Contents
•Background
•Bioenergy in Finland
•BeWhere Finland
•Model applications: FT-biodiesel production
•Future work
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Background • 2020 Renewable energy targets of Finland:
– 38% renewable energy share (from 25% 2009 ) – 25.2 PJ / 20% minimum biofuel distribution requirement (double
counting) • National Renewable Energy Action Plan:
– 13.5 Mm3 forest chips use (from 6 Mm3 2009 )
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• Technological advancements (Fischer Tropsch biodiesel production) • Structural changes in the Finnish forest industry
1st BeWhere Workshop / Natarajan
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Different measures
• Incentives e.g, wood incentive per MWh electricity and linked with
CO2 price.
•Subsidies for small wood procurement eg. Thinning
•Mandatory blending % with fossil transport fuels
• Investment support for biomass based energy system installations
•Strong funding for energy research and development
1st BeWhere Workshop / Natarajan
Biomass based DH/CHP plants
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Large scale 50 - 500 MW
Medium scale 1 - 50 MW
Small scale 5 - 200 kW
Source: Dominik
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Fortum, Joensuu bio-oil plant
World’s first industrial-scale Integrated with CHP Capacity 50, 000 tonnes bio-oil Feedstock: woody biomass (300,000 m3 per year) Emissions: 70% compared to fossil fuels Investment cost: 30 million euros
1st BeWhere Workshop / Natarajan
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Integrated biorefinery
Source: Mc Keough 2007
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Energy demand .transport fuel .district heating
Candidate sites
.close to biomass supply
.close to energy demand
.pulp & paper industry
.ports
Transport network .Road origin destination
++++++++++++ .Rail origin terminal destination
Biomass supply
Forest
Sawmill
Import
CHP
Pellet
Pulp mill
Bioenergy
Model results
1.plant no
2.optimal location
3.Size
4.biomass area
5.biomass share
6.biofuel sold
7.heat sold
8.electricity sold
9. minimized costs
a.biomass
b.transport
c.production
d.fuel station
10.biofuel cost
11.CO2 emissions
12.parameter sensitivity
13.biofuelblend
14.import &export
Constraints .biomass supply .production plant .energy demand .heat transport
Parameters .biofuel yield .heat yield .electricity yield .emission factor
Other costs .fossil fuel .heat price .electricity price
Bioenergy supply chain costs
Biomass Biomass transport
Production Biodiesel transport
Distribution
.harvesting
.forwarding
.chipping
.storage
.truck
.train .investment .operation & maintenance .interest rate
.truck
.train .fuel station
Biomass supply
Bioenergy production
Biofuel demand
Heat Demand
BeWhere Finland
1st BeWhere Workshop / Natarajan
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Eastern Finland - Model Scheme
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Influence of CO2 cost on technology diffusion
and emission savings
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Optimal plant locations
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Flow of Feedstock and energy
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Source: Thomas Gschwantner
Logging residues
Pulpwood
Sawwood
Sawmill residuals
Stumps and roots
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Source: pic 2 and 4 are from Google
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Spatial distribution of feedstock resources
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Transport Network
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Energy demand
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Scenarios for 2020 biofuel target
•Base Scenario •Feedstock availability
• Industrial competition
•Parameter costs and energy price
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Results
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Cost-optimal locations
•Five FTplants : Rovaniemi, Lapinjärvi, Rauma, Salo, Kauhava >130times •Minimised transportation
costs means abundant feedstock supply and high energy demand • Max heat transport distance
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Cost breakdown of biodiesel production supply chain
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P1 P2 P3 P4 P5
M€
-40
-20
0
20
40
60
80
100
120
140Forest biomass Sawmill residual Biomass transport Production
Biodiesel transport Distribution Heat income Electricity income
1st BeWhere Workshop / Natarajan
•P3 produces the cheapest biodiesel. •Unit cost varied between
22.15€/GJ and 22.49€/GJ without any by-product sales. 13%
8%
6%
49%
1% 7%
8% 8%
Biomass Cost
Sawmill ResidualsCostBiomass Transport
Production Cost
Biofuel Transport
Distribution Cost
Heat Income
Electricity Income
Biomass supply and feedstock resource allocation
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Forest harvesting (%)
-20 0 20 40
Feed
stoc
k us
ed (P
J)
0
10
20
30
40
50
60Energywood Sawmill residual
Industrial competition (%)
-60 -40 -20 0 20 40 60
Feed
stoc
k us
ed (P
J)
0
10
20
30
40
50
60Energywood Sawmill residual
Costs and feedstock resource allocation
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•30% decrease would completely substitute sawmill residuals •30% increase = 40% energy
wood + 51% pulpwood + 9% sawmill residuals •40% increase = pulpwood
replace energywood completely
Energywood cost (%)
-60 -40 -20 0 20 40 60
Feed
stoc
k us
ed (P
J)
0
10
20
30
40
50
60
Energywood Sawmill residual Pulpwood
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Costs and feedstock resource allocation
1st BeWhere Workshop / Natarajan
Maximum pulpwood utilization potential at -30%
SMR price no influence as maximum utilization potential is reached
Pulpwood cost (%)
-50 -40 -30 -20 -10 0
Feed
stoc
k us
ed (P
J)
0
10
20
30
40
50
60
Energywood Sawmill residual Pulpwood
Sawmill residual cost (%)
-60 -40 -20 0 20 40 60F
eeds
tock
use
d (P
J)0
10
20
30
40
50
60Energywood Sawmill residual
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Costs and feedstock resource allocation
1st BeWhere Workshop / Natarajan
•31 PJ of wood imports used when 40% decrease in cost •Cost changes in energywood,
pulpwood and sawmill residuals did not influence •Because:
– Expensive – Longer transport distance
Wood import cost (%)
-50 -40 -30 -20 -10 0
Feed
stoc
k us
ed (P
J)0
10
20
30
40
50
60
Energywood Sawmill residual Wood import
Influence of biofuel import price and fossil diesel price on the 2020 biofuel target
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Biofuel import price (%)
-50 -40 -30 -20 -10 0
2020
Bio
fuel
targ
et (P
J)
0
5
10
15
20
25
30 FT-biodiesel production Biofuel import
Fossil diesel price (%)
-50 -40 -30 -20 -10 0
2020
Bio
fuel
targ
et (P
J)
0
5
10
15
20
25
30 FT-biodiesel production Fossil diesel consumption
Parameter sensitivity analysis
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Parameter change (%)
-40 -30 -20 -10 0 10 20 30 40
Var
iatio
n of
FT-
biod
iese
l cos
t (%
)
-30
-20
-10
0
10
20
30
Feedstock share Industrial demand Energywood cost Transport cost Investment cost Heat price Electricity price Plant size Conversion efficiency
Future work
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Social
Environment Economy
Sustainability
Employment
LCA
Publications •Natarajan K, Leduc S, Pelkonen P, Tomppo E, Dotzauer E. Potential
expansion of second generation Fischer-Tropsch biodiesel industry in Finland. Renewable Energy 62 (2014) 319e330. • Natarajan K, Leduc S, Pelkonen P, Tomppo E, Dotzauer E. Optimal
Locations for Methanol and CHP Production in Eastern Finland. BioEnergy Research 2012;5:412-23.
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• International Nordic Bioenergy Conference 2011, 5-9 September
2011, Jyväskylä, Finland. •World Bioenergy 2012, 29-31 May 2012, Jönköping, Sweden. •Nordic Wood Biorefinery Conference (NWBC) 2012, 23-25 October
2012, Helsinki, Finland
THANK YOU!