Valmet Gasification Solutions for Biomass and Waste Biomass Gasification Europe 2014, Alkmaar Frank Ligthart

Sales Director Valmet Power

+358 40 561 9612

frank.ligthart@valmet.com

Valmet Gasification Solutions for Biomass and Waste

�  Valmet

�  Part replacement of coal with biomass in utility boiler Ø Vaasa biomass gasification

�  Synthetic natural gas as vehicle fuel from biomass Ø GoBiGas

�  Highest efficiency for energy from waste Ø Lahti waste gasification

�  Summary

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Valmet

Global supplier of services and technologies for the pulp, paper and energy industries.

Services •  Mill and plant

improvements •  Spare parts •  Maintenance services •  Life-cycle services

Pulp and Energy Technologies and solutions for •  Pulp production •  Energy production •  Biomass conversion

Paper Technologies and solutions for •  Board production •  Tissue production •  Paper production

December 31 2013 © Valmet | 4

Valmet has a turnover of €3 billion and was reborn through the demerger of Metso Group on December 31, 2013.

Gas boilers, PC boilers

& kilns

PC boilers & Industrial

kilns

New technologies facilitate transfer from fossil fuels to utilization of sorted waste and biomass

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Atmospheric gasification

Hot gas filtering

Bio-oil

Waste

Heating Plants

& biofuels

Fast pyrolysis

Biomass Atmospheric gasification

Biogas

Biogas

Steam explosion Biocoal

Co-firing in PC boilers

oktober 7, 2014 1) HFO = Heavy fuel oil

Gasification technology

�  Technology –  Atmospheric circulating fluidized bed

gasification –  Waste and biomass are converted to a fuel

gas that can be cleaned or directly burned –  Product gas 3-7 MJ/nm3 (LHV) –  Indirect gasification (Repotec license)

�  Experience –  First biomass gasifier in 1980’s

–  Valmet has built the world’s largest gasifiers for waste and biomass

�  Key applications –  Replacing fossils with renewable biomass in

industrial kilns and utility coal fired boilers

–  Waste to energy with highest possible electrical efficiency

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Valmet’s gasification experience

�  Värö Bio gasifier –  35 MW Biomass gasifier – 1987 –  Oil replaced by biomass in limekiln

�  Lahti Waste gasification plant –  160 MW Waste gasifier – 2011 –  Waste used in municipal CHP

�  Vaasa Bio-gasification plant –  140 MW Biomass gasifier – 2012 –  Biomass replacing coal in utility boiler

�  Gothenburg Bio-SNG plant –  32 MW Wood gasifier – 2013 –  Biomass to replace NG

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Latest news: two CFB gasifiers to OKI in Indonesia for lime kiln Fuel: Eucalyptus bark, screening fines

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Replacing coal with biomass: Vaasa biogasification

Replacement import coal with local biomass in utility boiler Vaskiluodon Voima, Finland �  Circulating fluidized bed gasifier plant

that converts biomass into product gas �  Gasifier added to existing power plant to

replace 40% of coal with biomass

Key results �  Fossil fuels can be partly replaced with

renewable energy �  Reduction of carbon dioxide emissions

by about 230,000 tons per year �  Existing assets utilized and power plant

life-time significantly extended

10 1) Source: European Commission's Joint Research Centre

CO2 savings correspond to

the emissions of a European city

with 30,000 inhabitants1)

Gasification Finland

oktober 7, 2014

Supply of Biomass

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The fuel is procured within 100 kilometers of the plant: •  Wood (forest harvest residues)

90% (50–100%) •  Straw and reed canary grass 0%

(0–5%) •  Peat (milled) 10% (0–50%) Amount: •  900 GWh/a •  30 trucks a day

Main project drivers

Main drivers for the project: �  To replace large amount (25-40%) of coal with renewable CO2-neutral fuel.

‒  The gasification plant will be run on full capacity and coal firing will be reduced on boiler part loads.

�  To extend the lifetime of the existing power plant unit

�  To achieve capability to use multiple fuels (fuel cost optimization)

�  To guarantee a cost-effective district heating solution

Investment cost and benefits

�  Total investment cost 40 M€. State investment subsidy 10,8 M€ (Ministry of Employment and the Economy)

�  Cost savings: ‒  Reduction of CO2-emission cost, reduction of CO2-emissions

up to 230 000 t/yr. ‒  Feed-in tariffs of renewable energy ‒  Reduction of the environmental taxes of district heating

�  Other benefits: ‒  Lower total cost compared with construction of a new biomass power

plant and much higher efficiency ‒  Gasification compared with wood pellet firing: avoid high cost of pellet

production (around +50%) and pellet milling is avoided ‒  Local fuels - Positive effects to the local economy, 15 M€/a.

•  The new activities will employ 100 people in fuel logistics

Vaskiluodon Voima Oy 13

Vaasa bio-gasification plant

�  140 MW biomass gasification plant �  Connected to existing 565 MW coal-fired

boiler

�  Replacing 40% of annual coal consumption with biomass

�  Forestry residue with up to 50% moisture

Schedule �  Award 6/2011 �  Hand Over 12/2012

Total investment < 40 M€

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Valmet scope in Vaskiluodon Voima’s gasification project

�  Full scope services with total plant optimization –  Fuel receiving and handling –  Drying –  Gasification –  Boiler modifications incl. gas burners –  Automation, electrification and instrumentation

Wet biomass

Existing PC boiler

Instrumentation, electrification and automation

Biomass receiving and pre-handling Large-scale belt dryer CFB gasifier

140 MWfuel

Product gas

Dried biomass

Combustion

VAASA BIOMASS GASIFICATION PLANT

Date Author Title INTERNAL 16

FUEL STORAGE AND HANDLING

PC BOILER

CFB GASIFIER

DRYER

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Benefits of the Valmet solution for Vaskiluoto

Low investment cost

Use of multiple fuels

Efficient use of biomass

Reduced emissions CO2, NOx and SOx

Short delivery time

No loss of coal generation during construction

Original coal capacity still available

Synthetic natural gas from biomass: GoBiGas

Fuel production technology for producing biomethane as vehicle fuel

GoBiGas Project, Göteborg Energi AB, Sweden �  Indirect gasification of forest

residues and wood pellets to produce synthetic natural gas

�  A 20 MW demonstration plant based on indirect gasification

�  A commercial scale plant to follow

Key results �  Synthetic natural gas is comparable to

natural gas and can be used to replace fossil vehicle fuels

19 1) Source: Swedish Energy Agency

Contributing to Sweden’s shift

to 100% renewable

vehicle fuels by 20301)

Synthetic natural gas as

vehicle fuel Sweden

oktober 7, 2014

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}

Steam

Biomethane

Air

Steam

Flue gas

Wood pellets

Bed material

Forest residues

Tar

Sulphur rich gas

Air preheater

Hot water

Hot water

CO2 to inert

gas system/

atm

Tar

GoBiGas

International Seminar on Gasification Gothenburg 16-18 Oct 2013 Claes Breitholtz

Application of Gasification to a Biorefinery

Source: GoBiGas

Gasification: Valmet scope

Methanation

Combustor Gasifier

Dryer

Bag filter De-NOx

Fuel handling

Tar removal

Shift Tar removal

Drying Upgrading

Methanation

Sulphur removal

CO2- removal

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Gasification Island - Overview

International Seminar on Gasification Gothenburg 16-18 Oct 2013 Claes Breitholtz 23

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Highest efficiency for energy from waste: Lahti waste gasification

From coal to waste-fuelled energy

Lahti Energia Oy, Finland �  Circulating fluidized bed gasifier plant

that converts waste into product gas �  Processing of 250,000 tons of solid

recovered fuel to –  50 MW of electricity and –  90 MW of district heat

Key results �  Highest possible electrical efficiency

achieved from waste to energy > 31% �  Reduction of use of fossil fuels and CO2

emissions �  Avoided use of coal in CHP production

is 170,000 tonnes per year

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3,300 railway cars of coal replaced by

waste-fuelled energy

Waste gasification

Finland

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Valmet Waste Gasification Concept

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RDF handling

Gasification

Hot gas cleanup

Steam generation 121 bar/540 °C

Flue gas cleaning

LAHTI WASTE GASIFICATION PLANT

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Gasifier Gas

cleanup

Boiler

Old power station

Conveyor

Stack

APC

Turbine

Valmet Waste Gasification Operational experience

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à  Gasification RDF end 2011

à  Commercial May 2012

à  Capacity demonstrated

à  Gasifier operation reliable

à  Stable and good combustion

à  Compliance with WID

à  No corrosion detected

à  Some filter element failures

Summary

Valmet gasification Summary benefits

�  Replacement of import fossil fuels with renewable and more competitive local biomass and waste derived fuels

�  Biomass can be converted in fuel gas for existing industrial furnaces or kilns and utility boilers

�  Biomass can be converted in SNG for use as vehicle fuel

�  Waste can be converted into clean gas for highest efficiency EfW or co-firing

�  Demonstrated in world’s largest plants

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