value chain models for effective biogas production and utilization

20
Value chain models for effective biogas production and utilization case study from Østfold region in Norway Nordic Biogas Conference, Reykjavik Kari-Anne Lyng [email protected]

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Page 1: Value Chain models for effective biogas production and utilization

Value chain models

for effective biogas

production and

utilization – case study from Østfold region

in Norway

Nordic Biogas Conference,

Reykjavik

Kari-Anne Lyng

[email protected]

Page 2: Value Chain models for effective biogas production and utilization

Østfoldforskning

• Norwegian research institute

(private, non profit) located in

Fredrikstad

• 15 researchers with expertise in

sustainable innovation and life

cycle assessments

• 5 main markets:

– Building and construction

– Waste resources and energy

– Food and packaging

– Textiles and furniture

– Regional innovation

– Environmental impact tools

Page 3: Value Chain models for effective biogas production and utilization

Case study: Østfold region in Norway

Environmental impacts and economy for the actors in the

value chain:

Questions

• What is the best use of the biogas produced in the region?

• What is the optimal number of pre-treatment plants?

• What is the optimal number of biogas plants?

Page 4: Value Chain models for effective biogas production and utilization

Biogas production in Norway

• Main motivation: treatment of organic waste and sewage

sludge

• Climate mitigation measure

• Use of biogas: heat, electricity – newest biogas plants: fuel

for buses and renovation trucks

• There is a great potential for better utilization of organic

waste and manure in Norway as a resource for biogas

production.

Page 5: Value Chain models for effective biogas production and utilization

Purpose of biogas model

• Documentation of net GWP and other environmental indicators

(benefits and emissions) and economy (costs and income)

– Through the value chain of biogas production

– In a region, for a specific biogas plant or for treatment of a certain amount of

waste/manure

• Simulate the effect of different solutions such as:

• Size on new plants (amount and type substrate)

• Analyze consequenses of localisation alternatives (transport distances)

• Different utilizations of biogas

Page 6: Value Chain models for effective biogas production and utilization

Models developed in 3 phases

Contributors

• Norwegian Agricultural Authority

(SLF)

• Norwegian Research Council

• Avfall Norge

• The Norwegian Farmers Union

(Bondelaget)

• Cambi

• NHO Mat og Drikke

• Agricultural department, Østfold and

Vestfold County (Fylkesmannens

landbruksavdeling)

Research collaboration

between:

• Østfoldforskning

• NMBU

• Bioforsk

• Telemark University

College

• TelTek

• RebioKonsult

• DTU Management

engineering

• University of Southern

Denmark

Page 7: Value Chain models for effective biogas production and utilization

Environmental impact model

+ Direct emissions

from biomass

+ Indirect emissions

- Avoided burdens

= Net environmental

impact

Functional unit (reference flow):

Amount of substrate

(1 tonne of DM)

Current

practice for

LCA of waste

management

systems

Storage

Transport

Pre-treatment

Anaerobicdigestion

Transport and storage

Use and application on

land

Avoided burdens from substitution of mineral fertiliser or

soil improvement products

Manure

Organic waste

Use of

biogas

Avoided emissions from substitution of

fuels, heat or electricity

Sequestration of biogenic

carbon in soil

Page 8: Value Chain models for effective biogas production and utilization

Economic model

• Life Cycle Costing (LCC):

– All costs associated with the investment

throughout the service life.

– Investment costs (minus investment

support), plus operating costs adjusted

for interests every year.

• Annual costs:

– Yearly capital costs (investment costs

distributed per year)

– Annual operating costs

– Annual transport costs

– Includes annual depreciation and

interest costs

Page 9: Value Chain models for effective biogas production and utilization

Income and avodided

costs

Storage payment

from biogas plant

for digestate,

digestate

replaces mineral

fertiliser

Gate-fee waste,

energy sales,

digestate sales

Variable operating costs

Energy and heat,

pretreatment costs

(/ton waste)

Energy and heat,

water costs

Energy and heat,

upgrading costs (/Nm3)

Investment costs Manure storage,

digestate tank,

cover digestate

tank

Infrastructure Infrastructure,

sedimentation

tank, digester,

storage digestate,

additional costs

Infrastructure

Farm Pretratment plant Biogas plant Upgrading plant

Maintenance costs Personell,

maintenance

costs, gas

motor, manure

pump, property

costs

Maintenance costs, Fixed operating costs Maintenance

costs, digestate

Page 10: Value Chain models for effective biogas production and utilization

Østfold: Analysed scenariosTreatment of all organic household waste and 30 % of the manure in the

region

0 Reference scenario: current treatment of organic

waste (14% compost og 86% energy recovery) and

manure spread locally as fertiliser.

1 One central biogas plant + one local farm based

plant. One pre-treatment facility

2 Two biogas plants + one local farm based plant. a) One pre-treatment facility

b) Two pre-treatment facilities

3 Three biogas plants + one local farm based plant.

Two pre-treatment facilities.

All scenarios: upgraded and used as fuel in buses and

renovation trucks, liquid digestate used as fertilizer

17.000 tonnes organic waste

23.000 tonnes manure from cattle

42.000 tonnes manure from pig

Frevar (Fredrikstad)

Tomb (Råde)

Bodal (Rakkestad)

Stegen (Askim)

Page 11: Value Chain models for effective biogas production and utilization
Page 12: Value Chain models for effective biogas production and utilization
Page 13: Value Chain models for effective biogas production and utilization

Results for Global Warming Potentialto

nnes

CO

2-e

qiv

./year

1 biogas

plant

2 biogas plants 3

biogas

plants

Page 14: Value Chain models for effective biogas production and utilization

Results for global warming potential

• Use of biogas in the transport sector is more preferable

than producing heat, electricity or a combination.

• No large differences between the different options

• Larger scale result in more impact from transport and

increased production of biogas gives a benefit

• Other environmental impact categories

Page 15: Value Chain models for effective biogas production and utilization

Resuls for LCC

1 biogas

plant2 biogas plants

3

biogas

plants

Page 16: Value Chain models for effective biogas production and utilization

Results for annual costs

Gate fee

for waste

Income

upgraded

biogas

Page 17: Value Chain models for effective biogas production and utilization

-

10 000 000

20 000 000

30 000 000

40 000 000

50 000 000

60 000 000

Gården Forbehandlingsanlegg Biogassanlegg

Ko

stn

ader

i N

OK

per

år

Oppgraderingskostnader

Transportkostnader

Investeringskostnader

Driftskostnader

Årlige kostnader per verdikjedeledd,

scenario I

Costs for the

farmers are equal

for all scenarios

Two smaller pre-treatment

facilities:

investment and

maintenance costs

increases, while transport

costs are reduced

Two or three smaller biogas plants:

upgrading, investment and

maintenance costs increases, while

transport costs are reduced

Page 18: Value Chain models for effective biogas production and utilization

Conclusions for value chain economy

• Transport affect the annual costs and should be optimised

• It is more profitable to build one large scale biogas plant

rather than several medium sized plants.

• This may change if political measures are introduced

Page 19: Value Chain models for effective biogas production and utilization

Developments in the

Østfold region

• A new biogas plant has been

established in accordance

with the results from the

study

• Østfold County has set as a

requirement in new tender

for bus transport in the

region that the buses should

use biogas as a fuel,

resulting in about 100 new

buses using biogas from the

local plant

Page 20: Value Chain models for effective biogas production and utilization

Further work

Through the research projects BioValueChain and BioChain:

• Continue to improve models by verifying data, including

more environmental impact indicators, performing

sensitivity analysis, work on integration of the models

• Test the model through more Norwegian case studies for

existing biogas plants and planned plants

• Perform comparative analysis of biogas in Norway and

Denmark: framework conditions, political measures

• Assess how to optimise biogas value chains in Norway

and in Denmark