LIEN – Reporting Energy & CO 2 Emissions for Carbon Tax and Emissions Trading. Fuel Use and Distribution in Ireland
Dec 31, 2015
LIEN – Reporting Energy & CO2 Emissions for Carbon Tax and Emissions Trading.
Fuel Use and Distribution in Ireland
Fuel Use & Distribution
• Where does Industry fit in the overall energy picture
• Industry’s fuel mix
• Industry CO2
• Carbon Tax
• Profile of Industrial Energy Consumption
• Competitiveness and Energy
• Industrial economic activity and energy consumption
Index of GDP, TPER & Energy Related CO2
100
120
140
160
180
200
220
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Ind
ex 1
990 =
100
GDP (CSO) TPER Energy CO2 (EPA)
Total Primary Energy Requirement by Fuel Type
0
2
4
6
8
10
12
14
16
1990 1992 1994 1996 1998 2000
Mto
e
Coal Peat Oil Gas Hydro Other RE
Total Primary Energy Requirement by Sector
0
2
4
6
8
10
12
14
16
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Mto
e
Industry Transport Residential Commercial / Public Agriculture
Energy Import Dependency
45%
50%
55%
60%
65%
70%
75%
80%
85%
90%
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Imp
ort
De
pe
nd
en
cy
Ireland EU-15
Total Final Consmption of Energy by Fuel Type
0
2
4
6
8
10
12
1990 1992 1994 1996 1998 2000
Mto
e
Coal Peat Oil Gas Electricity Biomass
Total Final Consmption of Energy by Sector
0
2
4
6
8
10
12
1990 1992 1994 1996 1998 2000
Mto
e
Industry Transport Residential Commercial Agricultural
Electricity Primary Fuel Mix
0.0
1.0
2.0
3.0
4.0
5.0
6.0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Mto
e
Coal Peat Fueloil Gasoil Gas Hydro Other RE
Greenhouse Emissions by Source, 1990 & 2001
1990
Industrial Processes
6%
Solvent & Other Product Use
0%
Agriculture 34%
Land Use Change & Forestry
0%
Waste 3%
Energy 57%
2001
Land Use Change & Forestry
1%
Industrial Processes
5%
Agriculture 27%
Energy 65%
Solvent & Other Product Use
0%
Waste 2%
Energy Related CO2 by Sector – includes primary electricity CO2
0
5
10
15
20
25
30
35
40
45
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Mt
CO 2
Industry Transport Residential Commercial Agriculture
Industry Energy by Fuel
0.0
0.5
1.0
1.5
2.0
2.5
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Mto
e
Coal Peat Briquettes Oil Gas Renewables Electricity
Industry CO2
0
2
4
6
8
10
12
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Mt C
O2
Coal Kerosene Fueloil LPG Gasoil Natural Gas Electricity
Profile of Industrial Energy Consumption
• Pareto principle states that;• A vital few of the factors are responsible for the
bulk of the effects• 80/20 rule
• 80% of the effects are caused by 20% of the factors
• It has long been assumed that the bulk of energy consumption in Industry was by a small number of enterprises.
Profile of Industrial Energy Consumption
0
10
20
30
40
50
60
70
80
90
100
0 10 20 30 40 50 60 70 80 90 100
% of Enterprises
% o
f E
nerg
y C
on
sum
pti
on
Total Electricity Fuel
CO2 Factors Source: EPA
Carbon FactorTJ/ktoe t C/TJ t CO2/TJ kg CO2/TJ kg CO2/MJ kg CO2/kWh
Coal 41.87 24.60 90.20 90200 90.20 324.72
Peat 41.87 29.57 108.42 108423 108.42 390.32
Briquettes 41.87 29.57 108.42 108423 108.42 390.32
Gasoline 41.87 18.90 69.30 69300 69.30 249.48
Kerosene 41.87 19.47 71.39 71390 71.39 257.00
Fueloil 41.87 20.73 76.01 76010 76.01 273.64
LPG 41.87 17.37 63.69 63690 63.69 229.28
Gasoil 41.87 19.99 73.30 73297 73.30 263.87
Gas 41.87 14.98 54.93 54927 54.93 197.74
Electricity CO2 (kg CO2/kWh)
0.65
0.7
0.75
0.8
0.85
0.9
0.95
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
kg
CO 2/k
Wh
Carbon Tax
• Taking an indicative tax of €10/tonne CO2;
• This equates to 1c/kg CO2
• Therefore a fuel that produces say 0.2kg CO2/kWh will incur a tax of 0.2c/kWh
• Variations on the €10/tonne can be easily calculated from this.
Carbon Tax
€5/tonne €10/tonne €15/tonne €20/tonne €25/tonnekg CO2/kWh c/kWh c/kWh c/kWh c/kWh c/kWh
Coal 0.325 0.162 0.325 0.487 0.649 0.812Peat 0.390 0.195 0.390 0.585 0.781 0.976
Briquettes 0.390 0.195 0.390 0.585 0.781 0.976Gasoline 0.249 0.125 0.249 0.374 0.499 0.624Kerosene 0.257 0.129 0.257 0.386 0.514 0.643Fueloil 0.274 0.137 0.274 0.410 0.547 0.684LPG 0.229 0.115 0.229 0.344 0.459 0.573
Gasoil 0.264 0.132 0.264 0.396 0.528 0.660Gas 0.198 0.099 0.198 0.297 0.395 0.494
Electricity 0.774 0.387 0.774 1.161 1.548 1.935
Carbon Tax Rates
Cost Competitiveness
• Energy Productivity• How much wealth can be created for a given
amount of energy?
• How do we compare on price paid for energy?
• What proportion of manufacturing costs is accounted for by expenditure on energy?
Primary Energy Intensity
0
0.05
0.1
0.15
0.2
0.25
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
kgoe/€
95
Primary Intensity EU Primary Intensity
Final Energy Intensity
Str
uctu
ral E
ffec
t
0.12
0.13
0.14
0.15
0.16
0.17
0.18
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
kgoe
/€95
Total Intensity Intensity at 1990 sectoral intensity
Electricity Prices to Industry
0
1
2
3
4
5
6
7
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
c/k
Wh
(e
xcis
e t
axe
s i
nclu
de
d)
Ireland EU Average
Fuel Oil Prices to Industry
0
50
100
150
200
250
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
€/t
on
ne (
exci
se t
axes
incl
ud
ed
)
Ireland EU Average
Industry Expenditure on Energy 1990 vs 1998 (1990 prices)
0
20
40
60
80
100
120
140
160
Mining,quarrying and
turf
Metals andengineering
Manufacture ofnon-metallic
mineral products
Chemicals(including man-
made fibres)
Food, drink andtobacco
Textile industry Timber andwoodenfurnitureindustries
Paper and paperproducts
Miscellaneousindustries
€m
illi
on
(1
99
0 p
rice
s)
1990
1998
Industry Expenditure on Energy 1998
0
20
40
60
80
100
120
140
Mining andquarrying
Manufactureof food
products;beverages and
tobacco
Manufactureof textiles and
textileproducts
Manufactureof wood and
woodproducts
Manufactureof pulp, paper
and paperproducts;publishing
and printing
Manufactureof chemicals,
chemicalproducts andman-made
fibres
Manufactureof rubber and
plasticproducts
Manufactureof other non-
metallicmineralproducts
Manufactureof basic
metals andfabricated
metalproducts
Manufactureof machinery
andequipment
n.e.c.
Manufactureof electricaland opticalequipment
Manufactureof transportequipment
Manufacturingn.e.c.
€ (
million
s)
FuelElectricity
€34.1m
€147.0m
€15.6m €18.8m€23.4m
€90.5m
€24.5m
€48.1m
€66.4m
€16.3m
€73.8m
€7.9m€16.0m
Total: €582 millionFuel: €205 millionElectricity: €377 million
Industrial Energy Consumption 1998
190
635
5841
60
250
55
235
341
46
190
1938
0
100
200
300
400
500
600
700
Mining andquarrying
Manufactureof food
products;beverages and
tobacco
Manufactureof textiles and
textileproducts
Manufactureof wood and
woodproducts
Manufactureof pulp, paper
and paperproducts;publishing
and printing
Manufactureof chemicals,
chemicalproducts andman-made
fibres
Manufactureof rubber and
plasticproducts
Manufactureof other non-
metallicmineralproducts
Manufactureof basic metalsand fabricated
metalproducts
Manufactureof machinery
andequipment
n.e.c.
Manufactureof electricaland opticalequipment
Manufactureof transportequipment
Manufacturingn.e.c.
kto
e
Total: 2,159ktoe
Industry CO2 1998 (Mt CO2)
0.43
1.47
0.13 0.05 0.09
0.43
0.06
0.40
0.89
0.060.30
0.03 0.05
0.37
1.24
0.18 0.25 0.22
0.91
0.32
0.44
0.50
0.16
0.77
0.090.20
0
0.5
1
1.5
2
2.5
3
Mining andquarrying
Manufacture offood products;beverages and
tobacco
Manufacture oftextiles and
textile products
Manufacture ofwood and
wood products
Manufacture ofpulp, paperand paperproducts;
publishing andprinting
Manufacture ofchemicals,chemical
products andman-made
fibres
Manufacture ofrubber and
plasticproducts
Manufacture ofother non-metallicmineralproducts
Manufacture ofbasic metals
and fabricatedmetal products
Manufacture ofmachinery and
equipmentn.e.c.
Manufacture ofelectrical and
opticalequipment
Manufacture oftransport
equipment
Manufacturingn.e.c.
FuelElectricity
Total: 10.03 Mt CO2
Fuel: 4.39 Mt CO2
Electricity: 5.64 Mt CO2
Industry Gross Value-added 1998
0.26
4.47
0.410.17
1.97
8.04
0.45 0.57 0.56 0.64
3.99
0.330.56
0
1
2
3
4
5
6
7
8
9
Mining andquarrying
Manufactureof food
products;beverages and
tobacco
Manufactureof textiles and
textileproducts
Manufactureof wood and
woodproducts
Manufactureof pulp, paper
and paperproducts;publishing
and printing
Manufactureof chemicals,
chemicalproducts andman-made
fibres
Manufactureof rubber and
plasticproducts
Manufactureof other non-
metallicmineralproducts
Manufactureof basic
metals andfabricated
metalproducts
Manufactureof machinery
andequipment
n.e.c.
Manufactureof electricaland opticalequipment
Manufactureof transportequipment
Manufacturingn.e.c.
€B
illion
s
Total Industry Value Added: €22 billion
Expenditure on Energy as % of Gross Value Added
0%
2%
4%
6%
8%
10%
12%
14%
Mining andquarrying
Manufactureof food
products;beverages and
tobacco
Manufactureof textiles and
textileproducts
Manufactureof wood and
woodproducts
Manufactureof pulp, paper
and paperproducts;publishing
and printing
Manufactureof chemicals,
chemicalproducts andman-made
fibres
Manufactureof rubber and
plasticproducts
Manufactureof other non-
metallicmineralproducts
Manufactureof basic
metals andfabricated
metalproducts
Manufactureof machinery
andequipment
n.e.c.
Manufactureof electricaland opticalequipment
Manufactureof transportequipment
Manufacturingn.e.c.
Ratio of Energy Expenditure to “Direct Costs”
• 97% of Industrial Enterprises have an energy to “costs” ratio of less than or equal to 4%
• This accounts for 67.3% of Industry energy CO2 (primary basis)
• 99.6% of Industrial Enterprises have a ratio of 10%
• Accounting for 80.5% of industry energy CO2
• 19 enterprises have ratios between 10% and 60%
• 19.5% of industry energy CO2
Conclusion
• Industry value-added grew by approx. 170% between 1990 and 2000
• Industry energy consumption grew by 31% in the same period
• Energy intensity fell by 3.7%/annum on average over the period
• Reduction in energy intensity cannot all be attributed to efficiency gains
• Energy intensive sectors are most sensitive to energy price change (carbon tax)
LIEN – Reporting Energy & CO2 Emissions for Carbon Tax and Emissions Trading.
Fuel Use and Distribution in Ireland
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