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Opportunities for integration of biofuel gasifiers in natural-gas combined heat-and-power plants in district-heating systems

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  • Marbe, Asa
  • Harvey, Simon

Abstract

As political pressure to improve efficiency and reduce CO2-emissions increases, natural gas combined cycle (NGCC) combined heat-and-power (CHP) technology is an increasingly attractive option for district-heating systems. However, as CO2-emissions reduction targets become more ambitious, it is expected that there will be pressure to reduce CO2-emissions from such units well before they reach the end of their useful lifetime. One way to achieve this goal is to integrate a biofuel gasification unit at the plant site. After clean-up, the produced syngas can be co-fired in the CHP unit. This paper discusses the economic performance of this type of retrofit, with specific emphasis on the impact of the following parameters: (i) the original NGCC CHP plant's power-to-heat ratio; (ii) the size of the district-heating system's annual heat-energy demand; (iii) the fuel mix in the district-heating system; and (iv) the availability of low-cost waste-heat that can be delivered to the district-heating system. The economic performance of the retrofitted CHP unit is measured as the overall cost of electricity production (COE). COE is analysed for four different energy-market parameter sets (referred to as Scenarios), including fuel prices, costs associated with energy and climate change policy instruments, and market electricity prices. The results indicate that even relatively high costs associated with CO2 emissions are insufficient to motivate retrofitting an NGCC CHP unit with an integrated biofuel-gasification unit. To promote this type of retrofit, an additional premium value for electricity generated from renewable fuel sources is required (such as the Swedish REC renewable energy certificate system). An unexpected result of this study is that the required value of REC is essentially independent of the energy market scenario considered.

Suggested Citation

  • Marbe, Asa & Harvey, Simon, 2006. "Opportunities for integration of biofuel gasifiers in natural-gas combined heat-and-power plants in district-heating systems," Applied Energy, Elsevier, vol. 83(7), pages 723-748, July.
    • Handle: RePEc:eee:appene:v:83:y:2006:i:7:p:723-748
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    Cited by:

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    2. Paiho, Satu & Reda, Francesco, 2016. "Towards next generation district heating in Finland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 915-924.
    3. Morandin, Matteo & Hackl, Roman & Harvey, Simon, 2014. "Economic feasibility of district heating delivery from industrial excess heat: A case study of a Swedish petrochemical cluster," Energy, Elsevier, vol. 65(C), pages 209-220.
    4. Mazhar, Abdur Rehman & Liu, Shuli & Shukla, Ashish, 2018. "A state of art review on the district heating systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 420-439.
    5. Jing, Z.X. & Jiang, X.S. & Wu, Q.H. & Tang, W.H. & Hua, B., 2014. "Modelling and optimal operation of a small-scale integrated energy based district heating and cooling system," Energy, Elsevier, vol. 73(C), pages 399-415.
    6. Truong, Nguyen Le & Gustavsson, Leif, 2013. "Integrated biomass-based production of district heat, electricity, motor fuels and pellets of different scales," Applied Energy, Elsevier, vol. 104(C), pages 623-632.
    7. Remston Martis & Amani Al-Othman & Muhammad Tawalbeh & Malek Alkasrawi, 2020. "Energy and Economic Analysis of Date Palm Biomass Feedstock for Biofuel Production in UAE: Pyrolysis, Gasification and Fermentation," Energies, MDPI, vol. 13(22), pages 1-34, November.
    8. Truong, Nguyen Le & Gustavsson, Leif, 2014. "Minimum-cost district heat production systems of different sizes under different environmental and social cost scenarios," Applied Energy, Elsevier, vol. 136(C), pages 881-893.
    9. Bartela, Łukasz & Kotowicz, Janusz & Remiorz, Leszek & Skorek-Osikowska, Anna & Dubiel, Klaudia, 2017. "Assessment of the economic appropriateness of the use of Stirling engine as additional part of a cogeneration system based on biomass gasification," Renewable Energy, Elsevier, vol. 112(C), pages 425-443.
    10. Jiang, X.S. & Jing, Z.X. & Li, Y.Z. & Wu, Q.H. & Tang, W.H., 2014. "Modelling and operation optimization of an integrated energy based direct district water-heating system," Energy, Elsevier, vol. 64(C), pages 375-388.
    11. Fang, Tingting & Lahdelma, Risto, 2015. "Genetic optimization of multi-plant heat production in district heating networks," Applied Energy, Elsevier, vol. 159(C), pages 610-619.
    12. Fahlén, E. & Ahlgren, E.O., 2009. "Assessment of integration of different biomass gasification alternatives in a district-heating system," Energy, Elsevier, vol. 34(12), pages 2184-2195.
    13. Gustavsson, Leif & Truong, Nguyen Le, 2011. "Coproduction of district heat and electricity or biomotor fuels," Energy, Elsevier, vol. 36(10), pages 6263-6277.
    14. Zheng, J.H. & Chen, J.J. & Wu, Q.H. & Jing, Z.X., 2015. "Multi-objective optimization and decision making for power dispatch of a large-scale integrated energy system with distributed DHCs embedded," Applied Energy, Elsevier, vol. 154(C), pages 369-379.

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