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Economic feasibility of district heating delivery from industrial excess heat: A case study of a Swedish petrochemical cluster

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  • Morandin, Matteo
  • Hackl, Roman
  • Harvey, Simon

Abstract

The present work discusses the potential and the economic feasibility of DH (district heating) delivery using industrial excess heat from a petrochemical cluster at the Swedish West Coast. Pinch Analysis was used for estimating the DH capacity targets and for estimating the cost of heat exchanger installation. A discounted cash flow rate of return of 10% was used as a criterion for identifying the minimum yearly DH delivery that should be guaranteed for a given DH capacity at different DH sales prices. The study was conducted for the current scenario in which no heat recovery is achieved between the cluster plants and for a possible future scenario in which 50% of the fuel currently used for heating purposes is saved by increasing the heat recovery at the site. The competition between excess heat export and local energy efficiency measures is also discussed in terms of CO2 emission consequences. The maximum capacity of DH delivery amounts today to around 235 MW, which reduces to 110 MW in the future scenario of increased site heat recovery. The results of our analysis show that feasible conditions exist that make DH delivery profitable in the entire capacity range.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:energy:v:65:y:2014:i:c:p:209-220
    DOI: 10.1016/j.energy.2013.11.064
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    9. Borna Doračić & Tomislav Novosel & Tomislav Pukšec & Neven Duić, 2018. "Evaluation of Excess Heat Utilization in District Heating Systems by Implementing Levelized Cost of Excess Heat," Energies, MDPI, vol. 11(3), pages 1-14, March.
    10. Hür Bütün & Ivan Kantor & François Maréchal, 2019. "Incorporating Location Aspects in Process Integration Methodology," Energies, MDPI, vol. 12(17), pages 1-45, August.
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    13. Lund, Henrik & Werner, Sven & Wiltshire, Robin & Svendsen, Svend & Thorsen, Jan Eric & Hvelplund, Frede & Mathiesen, Brian Vad, 2014. "4th Generation District Heating (4GDH)," Energy, Elsevier, vol. 68(C), pages 1-11.
    14. Joe Williams & Stefan Bouzarovski & Erik Swyngedouw, 2019. "The urban resource nexus: On the politics of relationality, water–energy infrastructure and the fallacy of integration," Environment and Planning C, , vol. 37(4), pages 652-669, June.
    15. Lygnerud, Kristina & Popovic, Tobias & Schultze, Sebastian & Støchkel, Hanne Kortegaard, 2023. "District heating in the future - thoughts on the business model," Energy, Elsevier, vol. 278(C).
    16. Karner, Katharina & Theissing, Matthias & Kienberger, Thomas, 2017. "Modeling of energy efficiency increase of urban areas through synergies with industries," Energy, Elsevier, vol. 136(C), pages 201-209.
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    18. Jiménez Navarro, Juan Pablo & Cejudo López, José Manuel & Connolly, David, 2017. "The effect of feed-in-tariff supporting schemes on the viability of a district heating and cooling production system," Energy, Elsevier, vol. 134(C), pages 438-448.
    19. Weinberger, Gottfried & Amiri, Shahnaz & Moshfegh, Bahram, 2017. "On the benefit of integration of a district heating system with industrial excess heat: An economic and environmental analysis," Applied Energy, Elsevier, vol. 191(C), pages 454-468.
    20. Bertrand, Alexandre & Mian, Alberto & Kantor, Ivan & Aggoune, Riad & Maréchal, François, 2019. "Regional waste heat valorisation: A mixed integer linear programming method for energy service companies," Energy, Elsevier, vol. 167(C), pages 454-468.
    21. Werner, Sven, 2017. "District heating and cooling in Sweden," Energy, Elsevier, vol. 126(C), pages 419-429.
    22. Liew, Peng Yen & Wan Alwi, Sharifah Rafidah & Ho, Wai Shin & Abdul Manan, Zainuddin & Varbanov, Petar Sabev & Klemeš, Jiří Jaromír, 2018. "Multi-period energy targeting for Total Site and Locally Integrated Energy Sectors with cascade Pinch Analysis," Energy, Elsevier, vol. 155(C), pages 370-380.

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