POTENTIAL OF BOVINE BIOMASS FOR ELECTRICITY PRODUCTION IN THE AZORES André Pina, Kiti Suomalainen & Leonardo Rosado January 2008 Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Economics of Natural Resources and Environment Contents Contents 1. 2. 3. 4. 5. 6. Introduction Biomass Azores Anaerobic Digestion Energy Potential Conclusions 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Introduction: The Green Island Project • Indicate prospects for reducing fossil fuel use – Reduction of energy use – Increase conversion efficiencies – Increase share of renewable energy • Energy consumption Contents 1. Introduction 2. Biomass – – – – Fossil fuels, transports, CO2 Electricity consumption, efficiency in buildings Electricity production, fossil and renewable Grid capacities 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Introduction: Objectives • Contribute to the Green island project – explore a renewable energy source – endogenous natural resources of the Azores • Evaluate the economic viability of bovine biomass Contents 1. Introduction – – – – Energetic potential Definition of a system to generate electricity Costs to implement the system Evaluation of economic viability 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Biomass: What is it? • Biological material derived from living or recently living organisms, both animal and vegetable. Contents • • • • • Virgin wood Energy crops Agricultural residues Industrial waste and co-products Food waste 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Biomass: What to do with it? FROM BIOMASS • Thermal – Combustion – Gasification – Pyrolysis • Chemical – Anaerobic digestion TO USEFUL STUFF Contents 1. Introduction 2. Biomass 3. Azores • • • Biofuels - transports Biopower – electricity & heat Bioproducts – chemicals, replace plastics, pellets (heat) 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Biomass: Facts about biogas from cow dung • Cow dung gas is 55-65% methane, 30-35% carbon dioxide, with some hydrogen, nitrogen and other traces. Contents 1. Introduction 2. Biomass • • • • • Heating values (MJ/kg) Methane: 40 Natural gas: 36 Biogas: 27 Fuel oil: 42 • • • • • Cow dung slurry is composed of (%) Nitrogen (N2): ~2.2 Phosphorus (P2O5): ~1.1 Potassium (K2O): ~0.7 Organic humus: 50-75. 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Azores: Socioeconomical Characterization 1|2 • Spatial Distribution – 9 isles – 3 groups • GDP & Productivity Contents 1. Introduction – Lower GDP per capita – Higher Productivity 2005 GDP Millions € GDP per capita € Productivity (GVA/Employment) Thousands € Portugal 143 478 13 575 28,8 Continente 136 259 13 515 27,8 Açores 2890 11 930 29,2 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Azores: Socioeconomical Characterization 2|2 • Population – ¾ in S. Miguel & Terceira 2005 Population Population Area Pop. Density % km2 cap/km2 São Miguel 126937 53.6% 747 170 Santa Maria 5524 2.3% 97 57 São Jorge 9523 4.0% 246 39 Terceira 55599 23.5% 402 138 Graciosa 4813 2.0% 61 79 Faial 15343 6.5% 173 89 Pico 14750 6.2% 448 33 1. Introduction Flores 4023 1.7% 142 28 2. Biomass Corvo 461 0.2% 17 27 Azores 236973 100 2333 102 Contents 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Azores: Electricity Consumption 1|5 • Island distribution of primary energy used – Higher consumption in Faial – Lower consumption in Corvo Sources: IEA, website consulted in August 2007, DGGE 2005, EDA 2005. Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions • Sector distribution of primary energy used – Higher consumption in electricity – 7% in electricity production from a non-fossil source – 3% of total from a non-fossil source Economics of Natural Resources and Environment Primary energy use per capita GJ/cap São Miguel 64,94 Santa Maria 51,92 São Jorge 58,23 Terceira 57,02 Graciosa 52,15 Faial 79,50 Pico 66,23 Flores 59,16 Corvo 31,92 Lisbon: 97.2 GJ/cap Primary energy TJ Domestic 1123 Commerce/ services 336 Public services 269 Industries 2382 Transports 4826 Electricity production 6019 Sources: IEA, website consulted in August 2007, DGGE 2005, EDA 2005. Azores: Electricity Consumption 2|5 • Final use by sector and island – Higher consumption in Domestic sector followed by Commerce & Services Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Azores: Electricity Consumption 3|5 • Consumption per Capita – Higher consumption in Terceira – Lower consumption in Corvo Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Electricity consumption per capita MWh/cap São Miguel 2,85 Santa Maria 3,02 São Jorge 2,34 Terceira 3,03 Graciosa 2,20 Faial 2,81 Pico 2,31 Flores 2,36 Corvo 2,10 Azores: Electricity Consumption 4|5 • Fuels’ consumption – Four main fuels: Butane, Gasoline, Diesel & Fuel oil – Diesel and Fuel Oil for Electricity production DIESEL Domestic Commerce/services 12% 0% 6% 3% 11% Public services 0% Industries and agriculture Public lighting 68% FUEL OIL Transports Electricity Production 0% Domestic 0% Contents 1% 1. Introduction 6. Conclusions Economics of Natural Resources and Environment Public services Industries and agriculture Public lighting 3. Azores 5. Energy Potential 0% 0% 2. Biomass 4. Anaerobic Dig. Commerce/services 15% 84% Transports Electricity Production Azores: Electricity Consumption 5|5 • CO2 emissions – Electricity Production & Transports account for 75% São Miguel Santa Maria São Jorge Terceira Graciosa Faial Pico Flores Corvo tons CO2 Source: Edifícios Saudáveis Consultores, 2004. Contents 1. Introduction 2. Biomass 3. Azores Domestic 41824 1759 2698 10556 1113 2142 2704 1213 111 Commerce/s ervices 20691 0 0 897 0 0 1403 0 0 Public services 6469 0 63 1790 528 9402 33 0 0 Industries and agriculture 84621 2732 2337 50551 1597 13014 13192 4339 0 Transports 213384 7122 16207 30282 6689 27051 24682 6263 147 Electricity Production 195732 7281 15968 127976 6829 33209 25296 3042 739 Total 562721 18894 37273 222052 16756 84818 67310 14857 997 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Anaerobic Digestion: Technological Overview • A process where bacteria break down organic material in the absence of air (oxygen). • Used for treating – – – – Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment agricultural, household and industrial residues and sewage sludge. Anaerobic digestion: Entire process overview Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Anaerobic digestion : 4 steps 1. Hydrolysis : Complex organic matter decomposed into simple soluble organic molecules (water used to split the chemical bonds between). 2. Fermentation: Enzymes, bacteria, yeasts, or molds decompose carbohydrates in the absence of oxygen. 3. Acetogenesis: Acetogenic bacteria convert fermentation products into acetate, hydrogen and carbon dioxide. 4. Methanogenesis: CH4 and CO2 are formed from acetate and hydrogen/carbon dioxide by methanogenic bacteria. Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Anaerobic digestion: The products • The products of this process are: • Biogas (principally methane (CH4) and carbon dioxide (CO2)) • A solid residue that is similar to compost • A liquid liquor that can be used as a fertilizer. Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Biogas can be used for heat and/or electricity production Anaerobic digestion: Electricity production • Electricity (and heat) may be produced in conventional boilers, (dual)fuel engines or CHP plants (the same way as natural gas is used). • Efficiency – Electric ~40% – With heat recovery ~80-85% Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Anaerobic digestion: Example from Luxemburg 1|2 Redange co-operative • A co-operative of 29 local farms, ”Biogas un der Atert”, in cooperation with the municipality, the wastes syndicate, the biogas planning office. • Area radius 6 km • Annual energy valorisation of – 230 tonnes manure • Energetic valorisation of municipality house waste foreseen • 2 x 3 x 1000 m3 digesters Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Anaerobic digestion: Example from Luxemburg 2|2 Output and feasibility • 5 800 m3 biogas per day, 60% methane • 700 kWe cogeneration module – 4.5 GWh(e), – 5.6 GWh(th) per year • Investment cost 4.5 M€ (60% Ministry of agriculture, 4000€ per farmer, rest financed by a loan) Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment • Electricity sold at 10 c€/kWh investment return rate <5 yrs Anaerobic digestion: From small-scale to large-scale Contents 0.5 kg of cow dung gives enough gas to cook a day's meals for a family in India. 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Water Reclamation Plant, Brisbane, treats sewage and industrial wastes. Sludges are pre-treated by an hydrolysis process prior to anaerobic digestion. > 10 000 tonnes per year sludge treated. Anaerobic digestion: CO2 mitigation Key ways anaerobic digestion reduces CO2 emissions: Contents • • • • • Replacement of fossil fuels Reducing methane emission from landfills Displacing industrially-produced chemical fertilisers Reducing transportation to landfill Reducing electrical grid transportation losses (not in our case though) 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Anaerobic digestion: Our system O Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment C O Energy Potential: Bovine population in the Azores 1|2 • Total number of cows in the Azores is estimated to be around 226000 • The number of cows in each island is proportional to the milk produced Milk produced Cows Thousand liters São Miguel 310730.8 140506 Santa Maria 0.0 0 São Jorge 28979.1 13104 Terceira 129214.5 58428 Graciosa 7468.5 3377 Faial 14047.5 6352 Pico 8346.6 3774 Flores 925.7 419 Corvo 88.8 40 Total 499801.5 226000 2005 Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Energy Potential: Bovine population in the Azores 2|2 • On average, 1 tonne of manure can be produced by 30 cows each day • How much of the total manure is available? • Depends on the farmers and the space the cows are confined in (50% will be used) 2005 Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions São Miguel Santa Maria São Jorge Terceira Graciosa Faial Pico Flores Corvo Total Economics of Natural Resources and Environment Cows Manure produced (100%) tonne/day 140506 4683.5 0 0.0 13104 436.8 58428 1947.6 3377 112.6 6352 211.7 3774 125.8 419 14.0 40 1.3 226000 7533.3 Energy Potential: Biogas produced • From 1 tonne of manure, 25 m3 of biogas can be produced • Each m3 of biogas contains around 24 MJ of energy 2005 Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment São Miguel Santa Maria São Jorge Terceira Graciosa Faial Pico Flores Corvo Total Biogas Energy m3/day MJ/day 58544.2 1405060.0 0.0 0.0 5460.0 131040.0 24345.0 584280.0 1407.1 33770.0 2646.7 63520.0 1572.5 37740.0 174.6 4190.0 16.7 400.0 94166.7 2260000.0 Energy Potential: Electricity production 1|3 • Biogas can be used to produce electricity • Efficiencies are in the order of 40% 2005 Contents 1. Introduction 2. Biomass São Miguel Santa Maria São Jorge Terceira Graciosa Faial Pico Flores Corvo Total 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Electricity kWh/day 156117.8 0.0 14560.0 64920.0 3752.2 7057.8 4193.3 465.56 44.4 251111.1 Electricity kWh/year 56982988.9 0.0 5314400.0 23695800.0 1369561.1 2576088.9 1530566.7 169927.8 16222.2 91655555.6 Energy Potential: Electricity production 2|3 • How do these values compare with total electricity consumption? 2005 Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential São Miguel Santa Maria São Jorge Terceira Graciosa Faial Pico Flores Corvo Total Electricity GWh/year 57.0 0.0 5.3 23.7 1.4 2.6 1.5 0.2 0.0 68.7 Electricity Produced GWh/year 400.1 18.8 25.1 193.0 11.6 50.4 41 10.3 1.1 751.4 Fraction % 14.24 0.00 21.17 12.28 11.81 5.11 3.73 1.65 1.47 12.20 • Electricity savings would come directly from fuel/diesel engines 6. Conclusions Economics of Natural Resources and Environment Energy Potential: Electricity production 3|3 • Fuel/Diesel savings 2005 São Miguel Santa Maria São Jorge Terceira Graciosa Faial Pico Flores Corvo Total Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Electricity GWh/year 57.0 0.0 5.3 23.7 1.4 2.6 1.5 0.2 0.0 68.7 Fuel/Diesel Electricity GWh/year 307.1 16.5 22.4 188.5 9.9 47.1 36.4 4.5 1.1 667.7 • Most promising islands: – – – – São Miguel São Jorge Terceira Graciosa Economics of Natural Resources and Environment Fraction % 18.56 0.00 23.73 12.57 13.83 5.47 4.20 3.78 1.47 14.47 Energy Potential: Capacity to install • The capacity to install must be slightly higher than the estimate – Only 50% of the biomass was accounted as useful 2005 São Miguel São Jorge Terceira Graciosa Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Electricity Capacity needed kWh/h MW 6504.9 7.5 606.7 0.7 2705.0 3.2 156.3 0.2 Energy Potential: Costs 1|2 • Two types of costs must be taken into account: – Installation costs – Running costs • Cost of kW installed decreases with the total capacity 2005 Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. São Miguel São Jorge Terceira Graciosa 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Capacity installed MW 7.5 0.7 3.2 0.2 Cost of kW €/kW 4300 5100 4500 5900 Total installation cost M€ 32.25 3.57 14.40 1.18 Energy Potential: Costs 2|2 • Running costs include – – – – – Contents 1. Introduction Staff Insurance Transport costs Annual fees for licenses and pollution control Operating and Maintenance of digester and generator • Running costs are typically considered to be around 0.03 €/kWh 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Energy Potential: Revenues • Current legislations supports use of biogas with tariffs as following: – 0.104 €/kWh for the first 15 years – 0.060 €/kWh afterwards (assumed value) • Future revenues, as well as future expenses, must be discounted – Discout rate of 7% will be used Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Energy Potential: Economic Feasibility São Miguel São Jorge 80 7 70 6 60 5 50 Total Costs M€ 40 M€ Total Revenue 30 20 Total Costs 4 3 Total Revenue 2 1 10 0 0 1 6 11 16 21 26 31 1 6 Terceira Graciosa 30 25 20 Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential Total Costs M€ 15 Total Revenue 10 5 0 1 6 11 16 21 26 31 6. Conclusions Economics of Natural Resources and Environment 11 16 21 26 31 1.8 1.6 1.4 1.2 1 M€ 0.8 0.6 0.4 0.2 0 Total Costs Total Revenue 1 6 11 16 21 26 31 Energy Potential: Carbon emissions saved • For each kWh of electricity produced using biogas, carbon emissions are mitigated Biogas Electricity Contents CO2 Total CO2 Fraction mitigated 2005 tonneCO2/ tonneCO2/ GWh/year % year year São Miguel 57.0 Thick fuel oil 3.5% 16723 562721 2.97 São Jorge 5.3 Diesel 1341 37273 3.60 Terceira 23.7 Thin fuel oil 7489 222052 3.37 Graciosa 1.4 Diesel 346 16756 2.06 Total 68.7 25899 838802 3.09 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Fuel saved Energy Potential: Total savings with CO2 mitigation • In the future, CO2 will have a cost – Assumed 20€ for each tonne of CO2 emitted CO2 Manure used (50% of Savings per tonne of Savings mitigated produced) manure 2005 tonneCO2/ €/year Tonne/year €/tonne year São Miguel 16723 334460 2341.8 142.8 São Jorge 1341 26820 218.4 122.8 Terceira 7489 149780 973.8 153.8 Graciosa 346 6920 56.3 122.9 Total 25899 517980 3590.3 144.3 Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions • Should the farmers receive money for the manure, given their contribution to CO2 mitigation? – If so, how much? (100 €/tonne will be assumed) – Who would pay for it? (Assumed the company) – Is it included in the tariffs? (Assumed to be) Economics of Natural Resources and Environment Energy Potential: New Economic Feasibility São Miguel São Jorge 80 7 70 6 60 5 50 Total Costs M€ 40 M€ Total Revenue 30 20 Total Costs 4 3 Total Revenue 2 1 10 0 0 1 6 11 16 21 26 31 1 6 Terceira Graciosa 30 2 25 1.5 20 Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 11 16 21 26 31 Total Costs M€ 15 Total Costs M€ Total Revenue 10 5 0 1 Total Revenue 0.5 0 1 6 11 16 21 26 31 6. Conclusions Economics of Natural Resources and Environment 1 6 11 16 21 26 31 Conclusions • 3 Islands show economic viability to implement this system – S. Miguel, S. Jorge & Terceira • Substitution of about 15% of fossil fuels – Reduce CO2 emissions – Decrease dependence on energy imports Contents 1. Introduction • Including cost of dung still maintains economic viability for the 3 islands 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Conclusions: Discussion • How much manure is really available? – Assumed 50% – Is this the farmer’s preferred choice? – Also depends on logistics – where are the cows? • Should the farmer be paid for the cow dung? – Who owns the installation (e.g. cooperative or state)? – Where do the cows graze (who owns the grass)? – What happens to the manure otherwise? • If so, how much? Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. – Delivery costs? – Price of CO2 emission permits avoided? – Who pays? Is this included in the feed-in tariff? 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment Bibliography Contents 1. Introduction 2. Biomass INESC Porto, Avaliação da Capacidade de Integração de Energias Renováveis em redes das Ilhas dos Açores, 2004. EDA – Electricidade dos Açores, Informação Estatística, 2006. DGGE – Direcção Geral de Geologia e Energia, Divisão de Estatística, Consumo de Combustíveis no Mercado Interno, 2005. British Biogen, Anaerobic Digestion of Farm and Food Processing Residues – Good Practice Guidelines, 2000. SREA – Serviço Regional de Estatística dos Açores, Os Açores em números, 2005. SREA – Serviço Regional de Estatística dos Açores, Séries Estatísticas 19942004, 2006. IEA – International Energy Agency, Key World Energy Statistics, 2006. BioMetha inc, Collective biomethanation project of Redange – A public and lasting project, 2004. 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment We’re here to save the day! Will you let us? Contents 1. Introduction 2. Biomass 3. Azores 4. Anaerobic Dig. 5. Energy Potential 6. Conclusions Economics of Natural Resources and Environment THE END