Green Electricity

Esa Vakkilainen

June 6, 2006
1 Green Electricity
 Why is green energy a hot topic?

Energy costs make typically 10-15% of total

paper production costs
Energy costs are rising
Emissions trading started in 2005
Environmentally responsible production vital
for corporate image
Fierce competition on saturated markets

June 6, 2006
2 Green Electricity
Kyoto Protocol - Objectives

Climate protection
Avoidance of climate changes and resulting catastrophes
Preservation of resources
Independence from fossil fuels imports
Sustainable development

June 6, 2006
3 Green Electricity
Kyoto Protocol - Excerpt and objectives

So far 122 countries have ratified the Kyoto Protocol

Reduction of GHG mainly CO2 by 5,2 % until 2008 2012
from the level in 1990
EU reduction target: 8 %

June 6, 2006
4 Green Electricity
Kyoto Protocol

USA has withdrawn (= 36 % of the CO2 emissions of this group)

USA pursues its own program with Japan, China, India and Australia

The recently established national allocation plans for CO2 emission

allowances EU took the lead
Emission cap and trading system
Subsidized electricity production from RES and CHP generation
Taxes on fossil fuels and CO2 emissions

June 6, 2006
5 Green Electricity
Greenhouse gases

CO2 represents the predominant portion of all GHG emissions

More than 80 % of all CO2 emissions originate from combustion of fossil
fuels for energy production / transportation
Renewable energy sources (RES) are an alternative
Hydro power
Wind
Solar and geothermal energy
Nuclear energy
Biomass (photosynthesis !)
Combustion of biomass is CO2 neutral
After fossil fuels the most important energy source (covers about 20 %
of the global primary energy demand)
Efficiency is still low

June 6, 2006
6 Green Electricity
Implications for the P&P Industry

P&P Industry is affected more than other industries largest

industrial user of wood
Wood is the most important and versatile renewable raw material
Wood is globally the most important RES
The P&P industry is the single largest producer of renewable energy in Europe
(17 % of renewable energy and 28 % of bioenergy)
Forests and wood products are also carbon sinks
It is classified as energy intensive European CO2 emission cap and trading
system
It is rapidly growing, more than 50 % between 1990 and 2010
The massive subsidies for electricity production from RES /wood
lead to raising wood and electricity prices

June 6, 2006
7 Green Electricity
Implications on the P&P Industry Cont.

Opportunities, which existed for the P&P industry when the EU

directives were implemented, could not be realized
Electricity produced form biogen residues (black liquor, sludge) is
excluded from subsidies (exception NL) about 30 mio t/a in Europe
Typically produced in efficient CHP plants
Internally produced electricity from bark and wood waste is also
excluded from the promotion schemes increased outsourcing, which
quite often prohibits CHP generation
The combustion of wood for electricity production is subsidized,
however, not internal CHP generation from biogen residues
Declared objective of subsidized electricity production: promotion of
new technologies to increase energy efficiency

June 6, 2006
8 Green Electricity
 Ponderings

The P&P industry is classified as energy intensive (together with steel,

glass, cement, etc.) emission intensive ?
Europe: About 50 % of its power and heat demand is generated from
biomass in highly efficient CHP plants
World: P&P industry: 4 % of the worlds industrial energy consumption but
only
1,2 % of fossil CO2 emissions
System boundaries are critical because wood and wood products are raw
materials, CO2 sinks and energy sources
CEPI flow chart (2000): 36,6 Mt/a accessible /recovered paper (not
recycled for P&B production)
The heat value is about the same as of all fossil fuels utilized (520 PJ/a)

June 6, 2006
9 Green Electricity
Items of Energy Efficiency Improvement

Effective power production Increase heat value of biofuels

Process integration on site

Optimal arrangements of
Maximum heat recovery
secondary heat

Decrease use of water

June 6, 2006
10 Green Electricity
New biomass power plants Finland 1/2

Oy Alholmens Kraft Ab, Pietarsaari

start up 2001, 240 MWe, process steam 100 MW and district heat 60 MW

Jmsnkosken Voima Oy, Jmsnkoski

start up 2002, boiler capacity 185 MW and turbine 46 MWe

Kymin Voima Oy, Kuusankoski

start up 2002, 85 MWe, process steam 125 MW and district heat 40 MW

June 6, 2006
11 Green Electricity
New biomass power plants Finland 2/2

Jrvi-Suomen Voima Oy, Ristiina

start up 2002, 10 MWe and process steam 65 MW

Jrvi-Suomen Voima Oy, Savonlinna

start up 2003, 17 MWe, process steam 20 MW and district heat 33
MW
Rauman Voima Oy, Rauma
start up 2006, boiler capacity 185 MW and turbine 46 MWe

June 6, 2006
12 Green Electricity
 June 6, 2006
13 Green Electricity
The boiler Alholmens Kraft

Annual proportion of fuels:

Peat 50%
Wood fuels 25% (LR, Bark)
Coal 25%
2.5 years of successful operation in
open electricity market
Operates with anything from 100%
coal to 100% biofuel
Combusts the fuels in any given
combination while staying within the
emission limits
Consumes a truck load of peat in 7
minutes
30,000 truck deliveries annually
Furnace measures 8.5 by 24m and is
40m in height
550MWth
194kg/s, 165bar,
545C

June 6, 2006
14 Green Electricity
Fuel properties

FUELS Peat Coal Bark LR WC

Total moisture (%) 42 12 48-52 40-52 41.7
Ash (wt-%, D.S.) 6.8 12.5 2.5 2.5 3.3
Volatile matter 70.7 36.8 76.4 76.1 -
ULTIMATE ANALYSIS OF DRY SOLIDS (wt-%)
C 53.1 73.0 51.0 50.0 55.0
H 5.2 4.5 5.6 6.0 5.8
N 1.5 2 0.7 0.4 0.2
O 33.3 8.2 40.2 41.0 34.4
S 0.15 0.3 0.04 0.06 0.014
Cl 0.020 0.010 0.010 0.014 0.004
HEATING VALUE (MJ/kg)
HHV 20.5 27.0 21.9 21.1 19.6
8.1-10.
LHV 10.9 22.5 9.2 9.6
2

June 6, 2006
15 Green Electricity
Steam consumption of the mill - evaporation

The most important self consumption issues inside the

recovery island are the dry solids of the entering wash liquor
and the number of stages in the evaporating plant
The difference in the evaporation energy need between 15 % and 17
% dry solids in the entering wash liquor is 15 %
The maximum number of the stages in the evaporator is typically 7, or
7+ , if the steam from liquor heat treatment is taken into account. The
latest studies about evaporation are for 8 stages, where the last stage
grows considerably. Steam consumption with 8 stages is 4 % lower
than with 6 stages

June 6, 2006
16 Green Electricity
Consumption and steam pressure levels of the mill

Pressure levels in the fiber line

The needed temperature cooking temperature
The needed pressure for moving material
The source is today the same extraction or back pressure steam place for
new ideas and systems
In a 200 kg/s steam generating boiler a 0.1 MPa change in back pressure
is equivalent to 3.5 4 MW change in power generation
Exergy principle should be used in the system integration
Sootblowing steam from the turbine
2.5 % vs. 5 % in steam consumption means with 200 kg/s steam production
1.5 2.0 MW in power generation, although the steam comes from
extraction if the steam would be from the boiler, the loss in power
production would be 2.5 3 MW

June 6, 2006
17 Green Electricity
Power to heat ratio

ST

F circ

W
P P
= =
H ST - P - [ circ + W ]
H
P
P =
F

June 6, 2006
18 Green Electricity
Total efficiency and power generation efficiency v.s. power to
heat ratio

June 6, 2006
19 Green Electricity
 The emissions trading mechanism

Emission reduction targets of operators participating ET

1. Links to the other
ET schemes
2. JI, CDM
3. sinks
Emission reduction costs and related emissions ->
feasible actions

Electricity market price,

Market price of allowances
fuel prices

Economic growth and

total emissions trend
June 6, 2006
20 Green Electricity
Fuel competitiveness

Price for allowance 5/tCO2 10/tCO2 20/tCO2

Natural gas 1.0 2.0 4.0

Heavy fuel oil 1.4 2.8 5.6
Coal 1.7 3.4 6.7
Peat 1.9 3.8 7.6
Wood 0 0 0

June 6, 2006
21 Green Electricity
Fuel competitiveness in emissions trading sector and other
sector may change from the current situation

June 6, 2006
22 Green Electricity
Electricity price

Expected Developments
Price regions Homogeneous electricity price regions
will remain for the foreseeable future

Emission Allowance Market will be

European wide

Two markets, two price mechanisms to be

SF
dealt with simultaneously
N
S EE RU
GB LV
DK LT
BY
NL PL
B UA
L D CZ
CZ
F SK MD Emission Allowance market will
A
CH H
SL
HR
RO
have different effect to different
HR
BH
BIHYU
BG price regions depending on market
P I MZ
E AL mechanism and production
GR TR
structure

Emission Allowance price regions

Widely homogeneous electricity price regions
June 6, 2006
23 Green Electricity
Maximum impact on electricity price Nordic market as an
example

Marginal production cost

Electricity Price
EUR/MWh
60
Gas turbines
50

40
Condensing power

30
Maximum electricity price increase /MWh = 0,8 * x /tCO2
20 CHP, district
heating
10
CHP industry Nuclear power
Hydro power
0
Consumption TWh/a

June 6, 2006
24 Green Electricity
Current Bioenergy Consumption in Europe, 1800 PJ - 44 Mtoe/a

350,0

Other biomass resources

300,0 Refined wood fuels
Wood wastes
Domestic (residential) firewood
250,0 Industrial black liquors
Industrial by-products (solid)
Forest residues
200,0
PJ

150,0

100,0

50,0

0,0 Po ds
k

ia
al

ia
ia
um

en
ia

a
d

nd
ce

nd

ia
n
ly

K
an
ar

ni
ec
an

an
ug

ak

en
ai
n
tr

tv
U
Ita

ed
an

la
la
m

rla

to
gi
us

Sp
m

re
nl

ov
La

om

ov
rt

Po
Ire
en

Sw
el

Fr

Es
er

he
G
Fi
A

Sl

Sl
B

R
G
D

et
N

June 6, 2006
1 Mtoe = 41 PJ
25 Green Source:
Electricity Vesterinen, Alakangas, EU Altener report,2001
Finnish Targets - bioenergy will dominate up to 2025, new
biomass-based fuels will be introduced

PJ
600 Heat pumps
508 Solar heat
500 Solar PV
412 Hydropower (<10 MW)
400 359 Hydropower (>10 MW)
317 Liquid fuels for transport
256
300 Agrobiomass
Biogas
200 REF
Forest chips
Firewood excl.forest chips
100
Industrial wood residues
Black liquors
0
1995 2001 2005 2010 2025

June 6, 2006
26 Green Electricity
EU Target - bioenergy will replace wood traditionally used for
forest industry

European Environment Agency, 2006

June 6, 2006
27 Green Electricity
 Options for forest industry

Pulp & Paper

Mill Power
Heat
Bark BioPower
boiler

rk
Ba
Power
Steam

Wood Wood
handling residues Biofuels:
pellets
Forest biomass
in future also Biofuel production
bio crude
urban waste and straw
EtOH/MeOH

Crude Oil

Refinery

June 6, 2006
28 Green Electricity
Black-Liquor Gasification - Costs of Additional Electricity

35
Electricity Cost, euro/MWh

30
Inte
gra
25 t ed
P&
Pm Chemrec, Base
i ll
MTCI, Base
20
LT/O2, Base

15 Sta LT/O2, Pressurised

nd-
al o LT/air, Base
ne
m i ll
10 LT/air, Pressurised

0
40 60 80 100 120 140
Additional Electricity Output of Power Plant, MW

Notes: back-pressure power output of reference recovery boiler: 79 MW

Source: P.McKeough, VTT

June 6, 2006
29 Green Electricity
Use of biomass to fire lime kiln is commercial!

June 6, 2006
30 Green Electricity