Competition of energy carriers

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Wood pellets in competition with other energy
carriers to provide heat – a market analysis

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Competition of energy carriers

  1. 1. SERVICE MIT ENERGIE. Wood pellets in competition with other energy carriers to provide heat – a market analysis Frank Schillig International Pelletforum 2011, Stuttgart , 5.10.2011© KWA EVIVA GMBH 2010 VOGELSANGER STRASSE 250 I 50825 KÖLN I GERMANY
  2. 2. SERVICE MIT ENERGIE. 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© KWA EVIVA GMBH 2010 Eviva – nachhaltige Energiedienstleistungen
  3. 3. SERVICE MIT ENERGIE. Energy carriers to satisfy German heat demand2006 2010 …and heat from renewable energy sources?© KWA EVIVA GMBH 2010 Eviva – nachhaltige Energiedienstleistungen
  4. 4. SERVICE MIT ENERGIE. Structure of heat supply from renewable energy sources in Germany 2010 Total: 136.1 TWh Biogenic solid fuels (households): 53.4 % Near-surface Biogenic solid fuels geothermal energy: (industry): 3.9 % 15.0 % Biogenic solid fuels (co- generation power Deep geothermal installations and energy: Biogenic share of heating installations): 0.2 % Biogas: waste: 5.3 % 5.6 % Biogenic liquid fuels: Solar thermal energy: 8.7 % 3.0 % 3.8 % Sewage gas: Landfill gas: 0.8 % 0.3 % Share of biomass *: 92 % * 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
  5. 5. SERVICE MIT ENERGIE. 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)© KWA EVIVA GMBH 2010 Eviva – nachhaltige Energiedienstleistungen
  6. 6. SERVICE MIT ENERGIE. Price development of different energy carriers Wood chips Wood pellets Fuel oil Natural gas© KWA EVIVA GMBH 2010 Eviva – nachhaltige Energiedienstleistungen
  7. 7. SERVICE MIT ENERGIE. Investment costs of different heating systems Oil heating gas heating pellet heating wood chip heating© KWA EVIVA GMBH 2010 Eviva – nachhaltige Energiedienstleistungen
  8. 8. SERVICE MIT ENERGIE. O&M costs – comparing wood chip with oil heatings Oil heating Wood chip heating Annuised Investment O&M Fuel© KWA EVIVA GMBH 2010 Eviva – nachhaltige Energiedienstleistungen
  9. 9. SERVICE MIT ENERGIE. Excurs biogas heat© KWA EVIVA GMBH 2010 Eviva – nachhaltige Energiedienstleistungen
  10. 10. SERVICE MIT ENERGIE. Local district heating grid Heat exchanger Biogas- CHP-unit school pool Etc. Heat offtake Heat offtake Heat offtake Supply boundary biogas pipeline© KWA EVIVA GMBH 2010 Eviva – nachhaltige Energiedienstleistungen
  11. 11. SERVICE MIT ENERGIE. Biogas heat from CHP© KWA EVIVA GMBH 2010 VOGELSANGER STRASSE 250 I 50825 KÖLN I GERMANY
  12. 12. SERVICE MIT ENERGIE. Why biogas heat? I • Biogas plants: ~70% of the CHP-unit heat is available • >6000 biogas plants in Germany with >2200 MWel installed capacity >2300 MWth capacity • Heat usage limited: ~50%, often only to heat farm buildings or neighbouring houses • EEG 2012: heat usage > 60% !© KWA EVIVA GMBH 2010 Eviva – nachhaltige Energiedienstleistungen
  13. 13. SERVICE MIT ENERGIE. 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 price variations – Constant EEG-tariffs + market driven heat sales hedging the market variations in biogas substrate prices© KWA EVIVA GMBH 2010 Eviva – nachhaltige Energiedienstleistungen
  14. 14. SERVICE MIT ENERGIE. Comparison of levelised heat costs for different heating systems Fuel oil Natural gas Wood pellets Wood chips Biogas heat Levelised heat costs (€/kWh) Operational years© KWA EVIVA GMBH 2010 Eviva – nachhaltige Energiedienstleistungen
  15. 15. SERVICE MIT ENERGIE. summary • Heat supply from biomass more economic in the mid- and long-term • Today wood chips (HHS) and Pellets can be competitive 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© KWA EVIVA GMBH 2010 Eviva – nachhaltige Energiedienstleistungen
  16. 16. SERVICE MIT ENERGIE. Don‘t hesitate to contact us! Frank Schillig e: f.schillig@eviva-energy.com t: +49-221-789469-10 w: www.eviva-energie.com Eviva Strives for a Proper and Straight Support of Your Sustainable Energy Supply

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