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Coproduction of district heat and electricity or biomotor fuels

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  • Gustavsson, Leif
  • Truong, Nguyen Le

Abstract

The operation of a district heating system depends on the heat load demand, which varies throughout the year. In this paper, we analyze the coproduction of district heat and electricity or biomotor fuels. We demonstrate how three different taxation scenarios and two crude oil price levels influence the selection of production units to minimize the district heat production cost and calculate the resulting primary energy use. Our analysis is based on the annual measured heat load of a district heating system. The minimum-cost district heat production system comprises different production units that meet the district heat demand and simultaneously minimize the district heat production cost. First, we optimize the cost of a district heat production system based on the cogeneration of electricity and heat with and without biomass integrated gasification combined-cycle technology. We considered cogenerated electricity as a byproduct with the value of that produced by a condensing power plant. Next, we integrate and optimize different biomotor fuel production units into the district heat production system by considering biomotor fuels as byproducts that can substitute for fossil motor fuels. We demonstrate that in district heating systems, the strengthening of environmental taxation reduces the dependence on fossil fuels. However, increases in environmental taxation and the crude oil price do not necessarily influence the production cost of district heat as long as biomass price is not driven by policy measures. Biomotor fuel production in a district heating system is typically not cost-efficient. The biomotor fuels produced from the district heating system have to compete with those from standalone biomotor fuel plants and also with its fossil-based counterparts. This is also true for high oil prices. A carbon tax on fossil CO2 emissions based on social cost damage will increase the competitiveness of biomass-based combined heat and power plants, especially for BIGCC technology with its high electricity-to-heat ratio.

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  • Gustavsson, Leif & Truong, Nguyen Le, 2011. "Coproduction of district heat and electricity or biomotor fuels," Energy, Elsevier, vol. 36(10), pages 6263-6277.
    • Handle: RePEc:eee:energy:v:36:y:2011:i:10:p:6263-6277
    DOI: 10.1016/j.energy.2011.07.021
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    References listed on IDEAS

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    Cited by:

    1. Gustavsson, Leif & Haus, Sylvia & Lundblad, Mattias & Lundström, Anders & Ortiz, Carina A. & Sathre, Roger & Truong, Nguyen Le & Wikberg, Per-Erik, 2017. "Climate change effects of forestry and substitution of carbon-intensive materials and fossil fuels," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 612-624.
    2. Truong, Nguyen Le & Gustavsson, Leif, 2014. "Cost and primary energy efficiency of small-scale district heating systems," Applied Energy, Elsevier, vol. 130(C), pages 419-427.
    3. 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.
    4. Natalia Kabalina & Mário Costa & Weihong Yang & Andrew Martin, 2016. "Production of Synthetic Natural Gas from Refuse-Derived Fuel Gasification for Use in a Polygeneration District Heating and Cooling System," Energies, MDPI, vol. 9(12), pages 1-14, December.
    5. Gustavsson, Leif & Truong, Nguyen Le, 2016. "Bioenergy pathways for cars: Effects on primary energy use, climate change and energy system integration," Energy, Elsevier, vol. 115(P3), pages 1779-1789.
    6. 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.
    7. Truong, Nguyen Le & Dodoo, Ambrose & Gustavsson, Leif, 2014. "Effects of heat and electricity saving measures in district-heated multistory residential buildings," Applied Energy, Elsevier, vol. 118(C), pages 57-67.
    8. Gustavsson, Leif & Haus, Sylvia & Ortiz, Carina A. & Sathre, Roger & Truong, Nguyen Le, 2015. "Climate effects of bioenergy from forest residues in comparison to fossil energy," Applied Energy, Elsevier, vol. 138(C), pages 36-50.
    9. Kabalina, Natalia & Costa, Mário & Yang, Weihong & Martin, Andrew, 2017. "Energy and economic assessment of a polygeneration district heating and cooling system based on gasification of refuse derived fuels," Energy, Elsevier, vol. 137(C), pages 696-705.

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