1 Green Combined Heat and Power (CHP) How to unfold the potential of bioenergy CHP to contribute to a renewable and efficient energy supply A report based on the findings from regional workshops and interviews on biomass cogeneration within the project CHP goes Green
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Green Combined Heat and Power (CHP)
How to unfold the potential of bioenergy CHP to
contribute to a renewable and efficient energy supply
A report based on the findings from regional workshops and
interviews on biomass cogeneration within the project CHP goes
2.2 Directive on Renewable Energy (RES) - 2009/28/EC ..................................................... 5
2.3 Directive on Cogeneration - 2004/8/EC and Energy Efficiency Directive (EED) (2012/27/EC) ............................................................................................................................... 5
2.4 National Energy Efficiency Action Plans (NEEAPs) and Renewable Energy Action Plans (NREAPs) .............................................................................................................. 6
2.5 Cohesion funds and other sources of finance ..................................................................... 6
2.6 Co-ordination around the bioenergy supply chain ........................................................... 6
3 Regional key factors for promoting green CHP ........................................................................... 7
The following report summarises the key lessons generated during the project. Given the
overall relevance, the focus lies on recommendations regarding the European
framework conditions for green CHP, presented in Chapter 2.
The regional level success factors relevant for all participating regions are summarised
in Chapter 3. Chapter 4 provides practical examples from each region, illustrating the
variety of applications, solutions and advantages of green CHP.
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2 European key factors for promoting green CHP
In order to determine the factors that facilitate the deployment of bioenergy CHP and
draw recommendations for actions that can be taken at the EU level, key stakeholders in
the eight model cities were interviewed.
The surveys in the participating eight model cities and regions clearly showed the
importance of European Union policy for bioenergy success. Also various aspects of
energy markets such as bureaucracy, grid connection and complexity should be given
serious consideration as the details of the implementation of the liberalised market are
developed and finalised.
The model cities cited relevant impacts in areas of climate targets, Directives on
renewables, cogeneration and energy efficiency, National Energy Efficiency Action Plans
(NEEAPs) and Renewable Energy Action Plans (NREAPs), cohesion funds and other
sources of finance as well as issues linked to the supply chain.
2.1 Climate targets
All respondents highlighted the importance of climate targets, especially the EU 2020
Climate and Energy targets, as driving the uptake of bioenergy in their city or region.
This had pushed national level support mechanism for bioenergy which is fundamental
to creating the business case for adopting bioenergy as an energy source.
However, the climate targets are hardly co-ordinated with the CHP legislation and this is
particularly clear when considering support mechanisms. Both bioenergy and CHP are
supported in Germany, France and the Czech Republic at the time of writing, with very
little co-ordination between the two policies. Higher policy co-ordination with respect to
bioenergy and CHP support is deemed beneficial for the more efficient use of bioenergy
on one hand, and the increased use of CHP on the other hand. The lack of co-ordination
may lead to suboptimal outcomes, as it happened in the Czech Republic, where
bioenergy electricity has been incentivised until recently, leading to heat being dumped
and a very low efficiency electricity generating process being supported.
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As it is the CO2 agenda driving the uptake of renewables, including bioenergy, Member
States legislation focuses on the bioenergy elements often ignoring the energy efficiency
benefits that can be achieved through CHP. Legislation on climate issues at the EU and
Member State level should therefore take the energy efficiency and sustainability
benefits of CHP combined with bioenergy into account.
2.2 Directive on Renewable Energy (RES) - 2009/28/EC
The Directive on Renewable Energy (RES) - 2009/28/EC (RES Directive) is fundamental
to the success of bioenergy in Europe. It drove the introduction of support mechanism
for bioenergy uptake and bio-CHP at the national level, providing the economic basis for
the success of bioenergy at the city and regional levels. In Member States such as France
or Austria the specific target for bioenergy, introduced at the national level has directly
driven additional action around bioenergy, but it has not always resulted in more
bioenergy CHP. For CHP to be promoted there must be an additional incentive beyond
the fuel type itself, targeting the efficient use of bioenergy with respect to both heat and
electricity. The example provided by the Prague model city is very telling since,
bioenergy CHP started becoming a more attractive option as soon as the support scheme
was amended to not only reward electricity-only bioenergy use.
2.3 Directive on Cogeneration - 2004/8/EC and Energy Efficiency
Directive (EED) (2012/27/EC)
The Directive on Cogeneration - 2004/8/EC (CHP Directive) is seen as important due to
the framework it creates for facilitating the application of CHP. The Directive contains
definitions and an assessment methodology standardising the use of the term high
efficiency CHP and paving the way for support and access to state aid for CHP projects.
Some national support mechanisms provide an additional bonus for the use of bioenergy
to fuel CHP installations. However, this is not a sufficient additional incentive to
persuade bioenergy users to always take on the additional implications of funding a CHP
plant compared to running either a simple combustion or a simple condensing electricity
generating plant.
As the CHP Directive will be repealed by the Energy Efficiency Directive (EED)
(2012/27/EC), with reinforced provisions for CHP, the implementation of the EED offers
new opportunities to realise the potential of bioenergy CHP.
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2.4 National Energy Efficiency Action Plans (NEEAPs) and Renewable
Energy Action Plans (NREAPs)
The National Energy Efficiency Action Plans (NEEAPs) and Renewable Energy Action
Plans (NREAPs) could be the driving force in identifying the potential for growth on
bioenergy CHP and for driving action through planning and objective setting. However,
these plans do not connect well to the regional level and thus have not been a specific
driver for greater use of bioenergy CHP. The reporting under the NREAP and the CHP
potential study seem to have been carried out entirely independently of the cities and
regions. Neither the model cities nor other European cities were involved to give input
and hence all actions at the city and region level lack a link to the action plans as
reported at the EU level.
2.5 Cohesion funds and other sources of finance
In 2010 Europe agreed to allow the spending of up to 4% of the cohesion funds on
energy efficiency projects. CHP can benefit from this source of funding, which appears to
work very well for Riga. The use of Cohesion Funds in Latvia is a best practice case of
mobilising private capital with public funds. However, to bringing down the investment
costs the methodology and framework to assess and quantify the risks of such projects
are crucial and should be adopted to the national situation.
The presence of a bank willing to fund projects at reasonable rates is an important
element of any new project. In this context, the public German KfW bank stands out for
its continuous support of projects while the innovative proKlima partnership of
Hannover stands out for its innovative approach to providing targeted funds.
These examples stand as evidence that the cohesion funds and other sources of finance
can be quite beneficial to promoting bioenergy CHP, as long as the technologies and their
inherent benefits are well understood and there is a sound methodology to assess CHP
projects.
2.6 Co-ordination around the bioenergy supply chain
The bioenergy supply chain has emerged as both an opportunity and a challenge within
the model cities responses. Bio-energy CHP is at the cross-roads between policies on
agricultural, energy, waste management and climate.
Paris, Hannover and Riga all highlight the benefit of linking at the regional level the
bioenergy opportunities into existing strategies focusing on either waste or agriculture
and forestry. In the region of Rhone-Alpes there are clear links developing between
regional agricultural policy, waste management and bioenergy.
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In Germany the use of bio-gas and mixing bio-gas with natural gas is a supported
strategy. In Latvia and the Czech Republic there is awareness of the value of bio-gas for
cities but as yet a limited engagement with bio-gas technology. Several model cities also
mention a lack of clarity around bioenergy and concerns of conflict with other bio-use
supply chains (food, raw materials, waste).
The input provided by the model city respondents indicates that there is room for
improvement at European level in terms of ensuring better co-ordination between the
elements of the supply chain. Especially with regard to the overall resource and
sustainability debate, Europe needs to show leadership and guidance on the role
bioenergy has to play in the future, ensuring that investors in the sector are not hindered
by additional uncertainty. Therefore, in the context of current discussions on
sustainability criteria for solid and gaseous biomass, a close co-ordination between DG
Climate Action, DG Energy and DG Agriculture would be beneficial to the process, paying
special attention to forest, agriculture and waste policies at the regional and local levels.
3 Regional key factors for promoting green CHP
Regional workshops were held to gain further feedback on the framework conditions for
bio-CHP success in the regions. Ambitious local and state targets for the deployment of
RES and the reduction of CO2 were endorsed as key elements for driving deployment via
the European level. Specific government and regulatory support policies for green CHP,
such as feed-in-tariffs, buy in obligation contracts and green certificates, were cited as
underpinning the finance of bioenergy CHP. All result directly from European legislation.
The main ones concerning all cities/regions are summarised below:
3.1 Policy-related enablers
As on EU-level also regional and local climate targets act as signal for the promotion of
RES-fuelled CHP. A very good example is the Covenant of Mayors, a voluntary
commitment by cities, towns and regions to exceed the CO2 reduction level set by the
2020 targets. It has been a major success with 2.623 European cities and regions
subscribing so far. The Covenant brings what is still in many member states a national
agenda to the local level. The members of the Covenant set their own targets for CO2
abatement, and in doing so give CO2 abatement a position on the agenda of the city or
region.
Specific support policies for green CHP, such as feed-in-tariffs, buy in obligation
contracts and green certificates, also further the commercial potential of RES-fuelled
CHP. Specific economic advantages to small investors could likewise trigger faster
deployment of small scale applications of specific capacity.
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For instance, as underlined during the workshop at Ile-de-France, the French state
supports solid biomass CHP through buy in obligation contracts combined with feed in
tariffs for units with a power over 12 MWel. The consequence of this centralised
conception of electricity production is a low level of actual implementation because of
the problems induced in heat use and in sourcing these very large plants. A
complementary support for smaller plant, installed on district heating network for
instance, would definitely enlarge the scope for potential green CHP.
3.2 Commercial-related enablers
Long-term price certainty and competitiveness of biogas is important to allow for a
degree of profitability and thus create necessary incentives for RES-fuelled CHP
investments. Furthermore an improbability in fossil fuel prices could lead to a switch
towards renewable fuels for CHP technology. Indeed, the consultations held in Riga
underlined that the difficulty of forecasting long-term fossil fuel prices, can serve as a
driving factor for RES-fuelled CHP in Latvia.
Sheer economies of scale through the construction of more RES-fuelled CHP units could
lead to a drop in the cost of the price of fuel and the emergence of effective economies of
scale.
Finally, stable heat demand, potentially throughout the year such as in hospitals, indoor
pools and hotels adds to the economic feasibility of RES-fuelled CHP projects.
3.3 Awareness-related enablers
Self-initiative and green mentality by consumers as well as by public regulators and
private companies are an important first steps towards the examination of RES-fuelled
CHP as a key low carbon technology. For example, the workshop in Riga emphasised the
distinct role of self-initiative and green thinking as a driver for bioenergy development
in Latvia in general and for the examined city in particular.
Intersectoral collaboration and networking can lead to effective experience exchange
and investment boost. As an example, biogas CHP subsidies could present a
collaboration opportunity between cities, waste management companies and
agricultural companies to develop green CHP projects. This prospect was particularly
emphasised during the course of the workshop held at Ile-de-France. In France the
national operator ADEME and the regional council provide subsidies for investment in
methane units. This could lead to the ‘development of territorial projects driven by cities
through partnerships with waste management and agro companies’.
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4 Regional best practice examples
4.1 Biogas-CHP in a waste treatment utility in Frankfurt/Main, Germany
Rhein Main Biokompost GmbH
Project description
In Frankfurt/Main biogenic waste is utilized in one of Europes modernst waste treatment utilities.
Especially for the demand of the city of Frankfurt/Main a combination of fermentation and composting was realized.
The combination of dry fermentation and composting offers a high operational standard for the disposal of waste.
The biogas, produced in the fermenter, is used for powering the CHP units.
The heat is used in the fermentation process and for heating the facility in winter. The electricity produced is feed in the grid.
Climate benefits
There are several environmental benefits by generating electricity in a biogas driven CHP-unit and a partially local use of heat.
In comparison to heat supply with natural gas boilers and electricity purchase from power plants without CHP you can reach a broad reduction of greenhouse emissions.
By the fermentation the methane emissions are avoided by the following composting.
The greenhouse potential of methane is twenty four times higher than carbon dioxide.
RMB Frankfurt am Main
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Repowering
In November 2010 the existing CHP unit (780 kWth, 499 kWel) was replaced by three motors with now 635 kWth and 680 kWel.
The advantages of the new plant are:
Higher electrical efficiency The same amount of biomass generates more electricity.
Higher reduction of CO2 emissions Until now reduction of CO2 of about 1.320 tonnes per year, (in future 1.980 per year)
Low-emission running Clean burning and cleaning of exhaust emission avoid formaldehyde emission
Low running costs Higher subsidies according to EEG. The legislative authority supports the installation with different bonuses, e.g. Bonus for innovative technology, Bonus for CHP, bonus for reduction of the emission of formaldehyde.
CHP modules (Copyr. RMB)
Fact Sheet:
Project name: Biogas- BHKW bei der Rhein Main Biokompost GmbH
Location: Rhein-Main-Biokompost GmbH Peter-Behrens Straße 8 60314 Frankfurt
Year of installation: September 1999 Repowering Nov. 2010
Technical specification, Characteristics of the facility
Location of the plant Energiezentrale Weiherfeld, Maria-Montessori-Straße 38, 30855 Langenhagen
cogeneration technology Jenbacher 412 Gas Otto Motor
electrical power, thermal power 6.7 Mio. kWhel, 6,8 kWhth kind of fuel biogas
CO2 savings 8.600 t/a
operating hours 8300 year of installation/start of operation 2008 Investment Appr. 500.000 Euro
Pictures
Author
Energie Projekt Gesellschaft Langenhagen (EPL)
Contact
Energiezentrale Weiherfeld,
Maria-Montessori-Straße 38,
30855 Langenhagen,
www.epl-energie.de
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4.4 Sizeranne Renewable Energy Production (SIPER), Rhône-Alpes,
France
PROJECT OWNER The Jamonet family, comprised of two parents and their three children, has decided to diversify their resources. Their farm integrates several different activities: cereal production (corn, wheat, barley) with a cereal drying and storage activity, the transport and trade of liquid products and organic matter for anaerobic digestion. The SIPER limited liability company unites the entire family around a large-scale anaerobic digestion project.
A family project developer for a regional plant
Initiated in 2007, the SIPER project (Sizeranne Renewable Energy Production) aims at
diversifying farming activities via a renewable energy production unit.
In a large industrial basin, this unit will transform 50,000 tonnes of organic matter via supply and hygienisation modules. These inputs (liquid, paste, solid) will originate from local sources, and in particular from the agri-food industry (AFI). They will be transferred into two digesters, each with a volume of 3,400 m3.
The digestion method chosen is the "completely mixed" method and shall be implemented by the Envitec-Biogas company. A building with a surface area of 2,000 m2 integrating a bio-filtration system shall be subject to negative pressure and shall house the organic matter and technical equipment.
After treatment, the biogas shall be transported to two 889 kWe cogeneration engines for electricity and heat generation. A 6 MW dual-fuel boiler house (biogas - natural gas) shall also be built to use the biogas in the event of additional requirements or plant malfunction. The heat produced shall be used by the process (digester, hygienisation unit, drying unit) and by a public heat grid. This will supply renewable heat to the buildings in the industrial area of Bourg de Péage. The unit shall be commissioned in the third quarter of 2013.
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PURPOSE • Providing additional activity for the farm. • Transforming locally-produced organic matter, without on-site storage. • Producing local, renewable energy. Electricity shall be reinjected into the existing ERDF
power grid and the heat shall be used to supply a public heat network. • Contributing to regional development via its location in the Bourg de Péage industrial area.
- 14,400 MWh/year of heat energy 14,000 MWh/year of electricity - 50,000 t/year of transformed organic
matter � Overall energy efficiency of 67 % � Overall investment: €9,400 K � Public aid: - French Ministry of Agriculture: €325,000 - Rhone-Alps region: €200,000 - General Council of La Drôme: €100,000 - ADEME Rhone-Alps: €299,000
SPECIFIC FEATURES
� Private producer / public
distributor � Transformation of local organic
matter � Technological innovations
Installation
SIPER is a regional project grouping together farmers, local authorities, industrialists from the agri-food industry and local stakeholders. It creates virtuous circles with regard to treating organic matter, by short circuits and guaranteed back to the ground of a high agronomic quality product. A heat grid developed by the Syndicat Des Energies de la Drôme (renewable energy board) will distribute the heat generated to the industrialists located in the Industrial Area.
4.5 Biomethane CHP plant at fire station in Berlin, Germany
In one of Berlin’s most important fire department – the station of the Charlottenburg-Nord professional fire brigade – Berlin Energy Agency (BEA) is operating its first bionatural gas fuelled (CHP) combined heat and power unit. With an output of 240 kWel and 365 kWth, it is one of the first and biggest plants of its kind in Berlin. Compared to conventional power generation with fossil fuels, annual carbon dioxide emissions are reduced by 1.350 tons. At the fire station, heat is supplied centrally from a heating system located in the basement of the administrative building. In addition to the CHP, BEA also has installed a new natural gas fuelled condensing boiler with a thermal output of 854 kW to support the existing low-temperature boiler at times when large amounts of heat and hot water are required (peak load).
Among other things, BEA has renewed pressure maintenance, hot water preparation and heat distribution in the building. All of the power generated is fed into the public grid and paid for as specified in the Renewable Energies Act (REA). The bio-natural gas is supplied by GASAG. The gas comes from various biogas plants located in Brandenburg, Saxony-Anhalt and Mecklenburg-West Pomerania.
Pilot project in the context of “CHP goes green“
To reduce the heat requirement of the property with a heated floor space of 21,500 m², BIM as the building manager has completely modernised in respect of energy efficiency the administrative building of the fire station West, investing about 10 million euro from the Konjunkturpaket II (economic stimulus package). Among other things, BIM has redesigned the facade using a thermal insulation composite system and replaced the windows and the electrical installations. The combined heat and power unit is a model project in the context of the EU’s “CHP goes Green” initiative. With the support of Berlin’s energy supplier GASAG, the Senate Department for Urban Development and the “Intelligent Energy Europe” programme, “green” CHP is to be promoted in the housing industry and among public and private service providers and other customer groups.
Fire station
Charlottenburg-Nord
CHP: 240 KWth and 365 kWel
Annual yield: 1.440 MWh
CO2-saving: 1.350 t per year
Contact
Berliner Energieagentur
GmbH
Französische Straße 23
10117 Berlin
Phone: 030 / 293330-0
Fax: 030 / 293330-99
E-mail: office@berliner-e-
agentur.de
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4.6 A wood gasification power plant, Austria
A wood gasification power plant fed by wood chips delivers the farm and residential building of an agricultural enterprise with heat and electricity
� Operator
Family Krammer, Köflach
� Description of Facility and Application
The plant of the family Krammer was comissioned in 2010 and reached the level of 11.000 operating hours at the beginning of 2013. The plant supplies the farm and the residential building of the agricultural enterprise with heat, the produced electricity is fed into the electricity grid according the green feed-in tariff system. The plant is free of fine dust and all emissions are significantly below the official regulations. The wood chips are produced in the own agricultural enterprise.
� Advantages for Operator/Energy User
The plant is operated heat driven, that means as soon as there is a heat demand in the agricultural enterprise or in the residential building and the temperature level in the 5.000 liter buffer tank is below a defined level the wood gasification plant starts automatically and is at full power in 3 to 5 minutes. Then it runs until the buffer tank is sufficiently supplied with heat and then it turns itself off again. The produced electricity is fed into the electricity grid according the green feed-in tariff system.
The advantages for the user are:
� Operation of the plant with wood chips from the own agricultural enterprise
� Full supply with heat from the wood gasification power plant (no peak load boiler necessary) – about 95.000 kWh/year
� Fully automated operation mode makes a comfortable operation without continuous support possible
� The produced electricity (40.000 kWh/year) is sold by fixed feed-in tariffs for 13 years according the Austrian Ökostromgesetz (green electricity act)
Sources of pictures: Krammer/REP
Renewable Energy Products GmbH
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Technical Specifications
Cogeneration Technology Wood gasification power plant
Type HV12_7 REP Renewable Energy Products GmbH
Fuel Wood chips G50
Year of Installation 2010
Thermal Power Output 31 kWth
Electrical Power Output 13 kWel
Subsidies Feed-in tariff for green electricity
Annual Operating Hours 3.500 to 4.000h
� Contact Information
REP Renewable Energy Products GmbH Ing. Franz Krammer Concept Strasse 1 A-8101 Gratkorn Tel.:+43/(0)316-685500-0 Email: [email protected]
� CHP Info Point in Styria/Graz Grazer ENERGIEAgentur Kaiserfeldgasse 13/I, A-8010 Graz Tel: +43-316-811848-0
4.7 Biogas plant with split cogeneration in Trebon, Czech Republic
Biogas plant in Trebon - the first Czech biogas plant with split cogeneration
The 1 MWe biogas plant in Třeboň, South Bohemia, is the first Czech biogas plant with significant supply of heat. The plant is situated about 2 km north from the town’s periphery and the input substrates are pig slurry and energy crops, mainly corn and grass silage (15,5 and 4,3 kt/a).
The special design feature is only a small (175 kWe) cogeneration unit at the spot to cover the electricity and heat self consumption of biogas production, while the majority of produced raw gas is transported by a dedicated 4,3 km long pipeline to the spa facility in the town, where a new biogas CHP plant (844 kWe) was built, which supplies heat to the spa central heating system and an adjacent multi-apartment residential building. Two heat accumulators with total volume of 200 m3 are installed to equalize the daily fluctuations of heat demand. Thanks to this concept, most of the heat generated can be effectively used (over 5 000 MWh/a) and the overall efficiency of biogas energy utilization is about 60% compared to typically only 35% at biogas plants with no heat supply.
The main contractors were MT Energie for the biogas production plant and Stavcent for the CHP plant and the piping. The cogeneration units were supplied by Tedom (the smaller one) and GE Jenbacher.
The financing was covered by a bank loan and a subsidy from EU structural funds (30%). The project received the award “The Czech Energy and Environmental Project of the Year 2009”.
Technical specifications Location Třeboň, South Bohemia, CZ Capacity 175+844 kWe, 223+840 kWt Fuel raw biogas CO2 reduction 9 950 t/a In operation December 2009 Capital costs 125 M CZK (5 M €)
CHP goes Green Partner:
SEVEn Americká 17, 120 00 Praha 2 phone +420 221 592 523, [email protected] www.svn.cz