TY - BOOK
T1 - Techno-economic analysis of biotrade chains
T2 - Upgraded biofuels from Russia and from Canada to the Netherlands
AU - McKeough, Paterson
AU - Solantausta, Yrjö
AU - Kyllönen, Hilkka
AU - Faaij, Andre
AU - Hamelinck, Carlo
AU - Wagener, Martijn
AU - Beckman, David
AU - Kjellström, Björn
N1 - Project code: C1SU00234
PY - 2005
Y1 - 2005
N2 - This study consisted of in-depth techno-economic analyses
of biofuel upgrading processes and of whole biotrade
chains. The chains encompassed the production of
pyrolysis oil or pellets from biomass residues in the
source regions, the transportation of the upgraded fuels
internationally over long distances and the final
utilisation of the fuels. The techno-economic analysis of
the biofuel upgrading processes was undertaken primarily
to generate techno-economic data that were needed as
input data for the assessment of the biotrade chains. The
evaluation of pyrolysis-oil production was deemed to be
one of the most reliable assessments made to date. The
estimated pyrolysis-oil production costs, e.g. below 25
EUR/MWh for stand-alone production from forestry
residues, compare favourably with the current
consumer-prices of heavy fuel oil in many European
countries. Integration of the pyrolysis process with an
industrial combined heat and power (CHP) plant would
lower the production costs by more than 20%. The
production of pellets was assessed to be somewhat more
energy-efficient and more cost-efficient than the
production of pyrolysis oil. However, the higher
production costs of pyrolysis oil would be counteracted
by lower costs in connection with product handling and
utilisation.
Four international biotrade chains were analysed in
detail. The chains cover two source regions,
North-Western Russia and Eastern Canada, and two traded
commodities, pyrolysis oil and pellets. The chains
terminate in the Netherlands where the imported biofuels
are co-fired with coal in condensing power stations. The
costs of the delivered biofuels were estimated to be in
the range 18-30 EUR/MWh, with the costs of pellets about
25% lower than those of pyrolysis oil. The estimated
electricity-generation costs displayed little dependence
on the type of biofuel - pyrolysis oil or pellets -
because the costs associated with the utilisation of the
biofuels for co-firing are higher for the pellets. For
the Canada-Netherlands chains based on zero-cost
sawmilling residues, the costs of the delivered biofuels
were estimated to be about 20% lower, and the
electricity-generation costs about 10% lower, than those
of the Russia-Netherlands chains. With the electricity
consumption calculated as the equivalent amount of fuel
that would be needed for its generation, the energy
consumptions of the biotrade chains, prior to the end-use
of the biofuels, were estimated to be in the range 13-23%
of the energy content of the original biomass residues.
Local-utilisation alternatives were also evaluated. It
was concluded that, particularly when the local reference
energy system is carbon intensive, local utilisation can
be a more cost-efficient and a more resource-efficient
option than international trade and use of biomass
resources elsewhere. This type of comparison is, however,
very dependent on both the greenhouse-gas emission
intensities and the costs of the reference energy systems
in the exporting and importing regions. In practice,
there are many factors which may limit local utilisation
or make utilisation of biomass resources elsewhere more
attractive. Obviously, when increased local utilisation
is not feasible, exporting surplus biofuel is a highly
beneficial and fully justified option. Other drivers for
international bio-energy trade, such as improving access
to markets, developing biomass production potentials over
time and securing stable supply and demand, fuel supply
security and other issues were not part of the present
work programme. Overall, it was concluded that biotrade
will have a definite and important role to play in
reducing humankind's dependency on fossil fuels.
AB - This study consisted of in-depth techno-economic analyses
of biofuel upgrading processes and of whole biotrade
chains. The chains encompassed the production of
pyrolysis oil or pellets from biomass residues in the
source regions, the transportation of the upgraded fuels
internationally over long distances and the final
utilisation of the fuels. The techno-economic analysis of
the biofuel upgrading processes was undertaken primarily
to generate techno-economic data that were needed as
input data for the assessment of the biotrade chains. The
evaluation of pyrolysis-oil production was deemed to be
one of the most reliable assessments made to date. The
estimated pyrolysis-oil production costs, e.g. below 25
EUR/MWh for stand-alone production from forestry
residues, compare favourably with the current
consumer-prices of heavy fuel oil in many European
countries. Integration of the pyrolysis process with an
industrial combined heat and power (CHP) plant would
lower the production costs by more than 20%. The
production of pellets was assessed to be somewhat more
energy-efficient and more cost-efficient than the
production of pyrolysis oil. However, the higher
production costs of pyrolysis oil would be counteracted
by lower costs in connection with product handling and
utilisation.
Four international biotrade chains were analysed in
detail. The chains cover two source regions,
North-Western Russia and Eastern Canada, and two traded
commodities, pyrolysis oil and pellets. The chains
terminate in the Netherlands where the imported biofuels
are co-fired with coal in condensing power stations. The
costs of the delivered biofuels were estimated to be in
the range 18-30 EUR/MWh, with the costs of pellets about
25% lower than those of pyrolysis oil. The estimated
electricity-generation costs displayed little dependence
on the type of biofuel - pyrolysis oil or pellets -
because the costs associated with the utilisation of the
biofuels for co-firing are higher for the pellets. For
the Canada-Netherlands chains based on zero-cost
sawmilling residues, the costs of the delivered biofuels
were estimated to be about 20% lower, and the
electricity-generation costs about 10% lower, than those
of the Russia-Netherlands chains. With the electricity
consumption calculated as the equivalent amount of fuel
that would be needed for its generation, the energy
consumptions of the biotrade chains, prior to the end-use
of the biofuels, were estimated to be in the range 13-23%
of the energy content of the original biomass residues.
Local-utilisation alternatives were also evaluated. It
was concluded that, particularly when the local reference
energy system is carbon intensive, local utilisation can
be a more cost-efficient and a more resource-efficient
option than international trade and use of biomass
resources elsewhere. This type of comparison is, however,
very dependent on both the greenhouse-gas emission
intensities and the costs of the reference energy systems
in the exporting and importing regions. In practice,
there are many factors which may limit local utilisation
or make utilisation of biomass resources elsewhere more
attractive. Obviously, when increased local utilisation
is not feasible, exporting surplus biofuel is a highly
beneficial and fully justified option. Other drivers for
international bio-energy trade, such as improving access
to markets, developing biomass production potentials over
time and securing stable supply and demand, fuel supply
security and other issues were not part of the present
work programme. Overall, it was concluded that biotrade
will have a definite and important role to play in
reducing humankind's dependency on fossil fuels.
KW - biofuels
KW - upgrading
KW - fuel trade
KW - pyrolysis oils
KW - pellets
KW - techno-economy assessment
KW - trade chains
KW - Russia
KW - Netherlands
KW - Canada
M3 - Report
SN - 951-38-6745-5
T3 - VTT Tiedotteita - Meddelanden - Research Notes
BT - Techno-economic analysis of biotrade chains
PB - VTT Technical Research Centre of Finland
CY - Espoo
ER -