Energy System Analysis of Waste-to-Energy technologies

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1 Energy System Analysis of Waste-to-Energy technologies MARIE MÜNSTER PHD THESIS Department of Development and Planning Aalborg University June 2009

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3 Abstract Alternative uses of waste for energy production becomes increasingly interesting both from a waste management perspective - to deal with increasing waste amounts while reducing the amount of waste deposited at landfills and from an energy system perspective to improve the flexibility of the energy system in order to increase the share of renewable energy and reduce greenhouse gas emissions. The focus of this PhD thesis is the analysis of the optimal use of waste for energy production in Denmark, now and in the future. The object of analysis is waste which is not reused or recycled, but can be used for energy production. Different Waste-to-Energy technologies are analysed through energy system analysis of the current Danish energy system with 13-14% renewable energy, as well as possible future Danish energy systems with 43% (2025) and 100% renewable energy (2050), respectively. The technologies include combustion, thermal gasification, anaerobic digestion, fermentation, and transesterification technologies producing electricity, heat, or transport fuel. The influences on and from the surrounding countries Norway, Sweden, Finland and Germany are included in some of the analyses. The analyses are performed in two Danish energy models: the EnergyPLAN model developed at Aalborg University and the Balmorel model developed at the former TSO, ElkraftSystem. A set of important aspects related to the modelling of waste and Waste-to-Energy technologies have been identified, and both models have been developed and improved in this respect in the course of the PhD project. Given the assumptions applied, an optimal use of waste in the current and future Danish energy systems is mainly for combined heat and power (CHP) production. It is assessed as feasible to sort out 4% of the mixed combustible waste as a wet organic waste fraction and 19% as refuse derived fuel (RDF) consisting of paper, plastic, and waste wood. 1

4 The following combination of Waste-to-Energy technologies is found to be optimal: 1) Incineration for CHP of the main amount of waste (77% of total) with the highest possible electricity and heat efficiencies. 2) Biogas production from the full potential of organic household waste and manure, assuming that untreated manure is available equal to 5% of the current untreated potential and that a treatment price of 3 EUR/GJ can be obtained for organic waste. The biogas should be used for CHP or transport fuel, depending on the CO2 quota costs and declared goal (reduced costs or reduced CO2 emissions). 3) Thermal gasification of RDF for CHP combined with co-combustion of the remaining RDF with coal in new coal-fired power plants, if reduced CO2 emissions are not the main goal. This is under the assumptions that the new coal-fired plants would, to a large extent, be built anyway; that the efficiencies of the waste incineration plants do not decrease due to a decreased heating value of the mixed waste used for incineration, and RDF is available for free. Affected or marginal energy production has been identified as input to life cycle assessments. The main conclusion in this respect is that the affected energy production always consists of a combination of energy technologies, which can be identified by the use of energy system analysis. Which technologies are affected depends on the time perspective (shortterm or long-term), the energy system analysed, the area analysed (Denmark or Nordic and German electricity markets), as well as on assumptions regarding capacities, efficiencies, costs, and prices. When modelling Denmark along with its surrounding countries and including investments as part of the optimisation, technologies located outside Denmark are affected by the changed uses of waste in Denmark. Furthermore, not only flexible technologies, such as coal-fired power plants, which are capable of reacting to short-term changes in demand, are affected, but also inflexible technologies, such as nuclear power. 2

5 Resumé Alternativ anvendelse af affald til energiproduktion har en stigende interesse både fra et affaldsplanlægningsperspektiv for at håndtere stigende mængder affald og mindske mængden af affald der bliver deponeret og fra et energisystemsperspektiv for at forbedre fleksibiliteten af energisystemet med det mål at øge andelen af vedvarende energi og reducere udledningen af drivhusgasser. Fokus i denne afhandling er analyser af optimal udnyttelse af affald til energiproduktion i Danmark nu og i fremtiden. Objektet for analyserne er affald, der ikke genanvendes, men som kan udnyttes til energiproduktion. Forskellige affaldsteknologier er analyseret i energisystemanalyser af det eksisterende danske energisystem med 13-14% vedvarende energi såvel som fremtidige mulige energisystemer med henholdsvis 43% (2025) og 100% vedvarende energi (2050). Teknologierne inkluderer forbrænding, anaerob afgasning, fermentering, trans-esterificering og termisk forgasning med produktion af varme, el og transportbrændsler. Indflydelsen på og fra de omkringliggende lande, Norge, Sverige, Finland og Tyskland, gennem elmarkederne er inkluderet i nogle af analyserne. Analyserne er udført på to danske energimodeller: EnergyPLAN-modellen, udviklet på Aalborg Universitet, og Balmorel-modellen, udviklet af den tidligere systemoperatør, ElkraftSystem. En række vigtige aspekter relateret til modellering af affald og affaldsenergiteknologier er blevet identificeret og begge modeller er blevet udviklet og forbedret under hensyntagen til disse i løbet af PhD projektet. En optimal anvendelse af affald, primært til kraftvarme produktion, i det eksisterende og fremtidige danske energisystem er fundet ud fra de givne antagelser. Det er antaget, at det vil være muligt at udsortere 4% af det blandede forbrændingsegnede affald som en våd organisk affaldsfraktion og 19% som RDF (refuse derived fuel), bestående af papir, plastik og affaldstræ. Den følgende kombination af energiteknologier til behandling af affald er fundet optimal: 1) Affaldsforbrænding til kraftvarme af størstedelen af affaldet (77% af den fulde mængde) med den højest mulige el og varme-effektivitet. 2) Biogasproduktion fra det organiske husholdningsaffald og gylle ud fra den antagelse, at ubehandlet gylle er tilgængeligt i en mængde svarende til 5% af den nuværende uudnyttede ressource, og at en behandlingspris på 3 EUR/GJ kan opnås for organisk affald. Biogassen bør anvendes til kraftvarme eller transportbrændsel afhængigt af CO2 kvote-priser og definerede mål (reducerede omkostninger eller reducerede CO2 udledninger). 3) Termisk forgasning af RDF til kraftvarme kombineret med medforbrænding af RDF i nye kulfyrede kraftværker, hvis CO2- reduktion ikke er det primære mål. Dette bygger på den antagelse, at de nye kulfyrede kraftværker i det store hele ville blive bygget alligevel; at effektiviteten på de eksisterende affaldsforbrændingsanlæg ikke falder som følge af en nedsat 3

6 brændværdi af blandet affald til affaldsforbrænding, samt at RDF kan fås gratis. Påvirket eller marginal energiproduktion er i projektet blevet identificeret som input til livscyklusanalyser. Den primære konklusion i denne henseende er, at den påvirkede energiproduktion altid består af en kombination af energiteknologier, som kan identificeres ved hjælp af energisystemanalyser. Hvilke teknologier, der er påvirket, afhænger af tidsperspektivet (kort eller langsigtet), det energisystem der analyseres, det område der analyseres (Danmark eller det nordiske og tyske elmarked), så vel som af antagelser vedrørende kapaciteter, effektivitet, omkostninger og priser. Når Danmark modelleres med sine omkringliggende lande, og investeringer inkluderes som del af optimiseringen, bliver teknologier uden for Danmark påvirket af forandringer i udnyttelsen af affald i Danmark. Derudover påvirkes ikke kun fleksible teknologier, som fx kulfyrede kraftværker, som kan reagere på korttidsforandringer i forbrug, men også ufleksible teknologier som atomkraft. 4

7 Publications Primary Publications Paper I Modelling Waste-To-Energy Technologies in National Energy Systems Münster, M. Peer reviewed conference proceeding The 17th IASTED International Conference on Applied Simulation and Modelling June 23rd 25th, 2008 Corfu, Greece Paper II Use of Waste for Heat, Electricity and Transport - Challenges when performing Energy System Analysis. Münster, M. & Lund, H. Published in Energy The International Journal. vol. 34, no. 5, pp , May Paper III Comparing Waste-to-Energy Technologies by applying Energy System Analysis. Münster, M. & Lund, H. Published in the International Journal of Integrated Waste Management, Article in Press, Corrected Proof, Accepted 13 July Available online 22 August Paper IV Optimal Use of Waste in the Future Energy System. Münster, M. & Meibom, P. To be submitted to Energy The International Journal Paper V Uncertainties related to the identification of the marginal energy technology in consequential life cycle assessments. Mathiesen, B.V. Münster, M. & Fruergaard, T. Published in Journal of Cleaner Production, April Volume 17, Issue 15, October 2009, Pages Paper VI Importance of Flexible Use of Waste for Energy for the National Energy System. Münster, M. & Meibom, P. Conference proceeding. Abstract accepted March Final paper submitted June 2009 Twelfth International Waste Management and Landfill Symposium 5-9 October 2009 S. Margherita di Pula (Cagliari), Sardinia, Italy Report Energy Systems Analysis of Waste-to-Energy Technologies using EnergyPLAN. Münster, M. Risø-DTU Report. Risø-R-1667(EN). June

8 Secondary Publications Conference proceedings (peer-reviewed and later expanded and submitted to international scientific journals): Risø International Energy Conference Optimal Use of Organic Waste in Future Energy Systems - the Danish case. Münster, M. and Lund, H p. Risø International Energy Conference, Roskilde, Denmark, 22nd 24th May Dubrovnik Conference on Sustainable Development of Energy, Water and Environmental Systems Use of Waste for Heat, Electricity and Transport - Challenges when performing Energy Systems Analysis Münster, M p. 4th Dubrovnik Conference on Sustainable Development of Energy, Water and Environmental Systems, nr. 4, Dubrovnik, Croatia, 4th 8th June 2007 European Meeting Point - Energy for Development Production of bio-fuel, electricity and heat through gasification of waste Münster, M p. European Meeting Point - Energy for Development 2007, Beja, Alentejo, Portugal, 10th 12th October 2007 SETAC Europe LCA Case Studies Symposium Energy system analyses of the marginal energy technology in life cycle assessments Mathiesen, B.V. Münster, M. and Fruergaard, T p SETAC Europe 14th LCA Case Studies Symposium, Göteborg, Sweden, 3rd- 4th December

9 Contribution of author to papers with co-writers In Papers II and III, the author of this thesis participated in the conceptual modelling of waste and Waste-to-Energy (WtE) technologies in EnergyPLAN and tested the model, after it was finally programmed in EnergyPLAN by Henrik Lund. The author of this thesis, furthermore, performed the energy system analyses and wrote the articles, apart from the parts describing how waste and WtE technologies are modelled in EnergyPLAN, which were written by Henrik Lund. Henrik Lund, furthermore, contributed with quality assurance of the results and comments to the articles. In Papers IV and VI, the author of this thesis did the modelling and programming of waste and WtE technologies in Balmorel. The author, furthermore, performed the energy system analyses and wrote the articles. Peter Meibom contributed with supervision and guidance in the process as well as with quality assurance of the results and comments to the articles. In Paper V, the authors contributed with even shares of the article. The author of this thesis contributed with a case study of affected electricity and heat technologies when increasing waste incineration in ten specific energy system analyses with different energy systems, different types of district heating areas, and different possibilities of storing waste. Brian Vad Mathiesen contributed with an analysis of the application of the consequential life cycle assessment (LCA) methodology at different specific points in time, contemporary and historical, in order to identify the marginal electricity technology and, furthermore, he contributed with a description of consequential LCA methodology. Thilde Fruergaard contributed with a review of the state-of-the-art practice in LCA studies in order to identify the marginal electricity and heat technologies. The introduction, methodology description, as well as conclusions and recommendations were written jointly. 7

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11 TABLE OF CONTENTS 1 INTRODUCTION Content overview METHODS Analysing WtE technologies Energy system analysis of WtE technologies Identifying affected energy production Choice of energy system analysis models Modelling waste in energy systems MODELS Model Characteristics EnergyPLAN Balmorel Summary of model characteristics Modelling waste Waste in EnergyPLAN Waste in Balmorel Summary of waste modelling TECHNOLOGIES RESULTS OF ENERGY SYSTEM ANALYSES Results of Paper II Results of Report and Paper III Results of Paper IV Results of Paper VI Summary of results CONCLUSION AND DISCUSSION Research question Research question Use of energy system analysis PhD goals

12 6.5 Further research...66 BIBLIOGRAPHY APPENDICES Paper I Paper II Paper III Paper IV Paper V Paper VI Report 14

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14 Alternative uses of waste for energy production becomes increasingly interesting both from a waste management perspective - to deal with increasing waste amounts while reducing the amount of waste deposited at landfills and from an energy system perspective to improve the flexibility of the energy system in order to increase the share of renewable energy and reduce greenhouse gas emissions. The focus of this PhD thesis is the analysis of the optimal use of waste for energy production in Denmark, now and in the future. Different Waste-to-Energy technologies are analysed through energy system analysis of the current Danish energy system with 13-14% renewable energy, as well as possible future Danish energy systems with 43% (2025) and 100% renewable energy (2050), respectively. Given the assumptions applied, the following Waste-to-Energy technologies show good prospects: 1) Incineration for CHP of the main amount of waste (77% of total) with the highest possible electricity and heat efficiencies 2) Biogas production from the full potential of organic household waste and manure for production of CHP or transport fuel 3) Co-combustion of refuse derived fuel (RDF) with coal in new coal-fired power plants today and thermal gasification of RDF for CHP in the future when fully developed, if reduced CO 2 emissions are not the main goal Affected or marginal energy production has been identified as input to life cycle assessments. The main conclusion in this respect is that the affected energy production always consists of a combination of energy technologies, which can be identified by the use of energy system analysis. Which technologies are affected depends on the time perspective (short-term or long-term), the energy system analysed, the area analysed (Denmark or Nordic and German electricity markets), as well as on assumptions regarding capacities, efficiencies, costs, and prices. Furthermore, not only flexible technologies, such as coal-fired power plants, which are capable of reacting to short-term changes in demand, are affected, but also inflexible technologies, such as nuclear power.

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