CASE STUDY OF FUEL SWITCH IN THE LUDZA BOILER HOUSE

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CASE STUDY OF FUEL SWITCH IN

THE LUDZA BOILER HOUSE

Edgars Vīgants director of Ludzas Bio-EnerģijaLatvia Bioenergy AssociationLatvian District Heating Association

“Bioenergy Promotion 2 ”

The Latvian Environmental Investment Fund, October 3, 2012, Riga

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Content

Introduction Technical solutionsSecuring of BiomassOperational resultsNew experienceDdifferent biomass impact analiseConclusions



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Boiler house grouping after consumed fuel type

67%12%

6%

6%

4%4%

1% 1%

DabasgāzeŠķeldasMalkaTrīs vai vairāki kurināmā veidiKurināmā koksneKurināmā koksne un fosilais kuināmaisCiti fosilie energoresursiDūmgāzesOglesMazutsKokapstrādes atlikumiKoksnes granulasSalmiElektroenerģija

Source: LR Ministry of Economics“Bioenergy Promotion 2 ”


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Potential of Latvian energy wood

25%27%

36%38%

41%45%

24%

54%

1930

1933

1949

1961

1973

1983

2002

2008

12,6 mill. m3c

/year30 TWh/year

Forest area:



5

19951996

19971998

1999200

02001

20022003

20042005

20062007

2008

2009

03.2010.

07.2010.

01.2011.

07.2011.

01.2012.05

101520253035404550556065

Natural gas (2 group)Natural gas (5 group)Wood pelletsWood chipsLPGDiesel

Period

Heat

ene

rgy

cost

s, L

s/M

Wh

*

Actual fuel price (excl. VAT):- natural gas (2 group) 0,31668 Ls/m3- natural gas (5 group) 0,27310 Ls/m3 - pellets 100 Ls/ton- wood chips 7,00 Ls/m3

- LPG 570 Ls/ton

- Diesel 635 Ls/ton

* Incl. efficiency of the modern boiler

Cost comparison of different fuels



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Location

Ludza



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Lindeks ESSENT supported by Dutch Government

Municipality of Ludza

Ludzas Bio-Energija

Heat production

14 MW

Supply of wood biomasss Biofuel

Light oil

Heat energy distribution

Heat energy> 29000 MWh/year

Investor Investor Investor

Heat end users

Co-operation partners



8

Erection of new boiler house

Installation was finished in December 2000.

Supplier of boiler house equipment was Dutch company KARA Energy Systems.

Building works were performed by local company Valmieras SCO centrs.

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Technical solution

Diesel boiler7 MW

Wood boiler Transport system

Diesel oil

Flue gas filter

Heat exchangers 2x8 MW

Heat meters

Fuel tank

8 MW

Wood chips

Open storage for wood chips

7000 m3

Wood chips storage with

walking floor

Network pumps

ChimneyChimney

District heating grid

Property of Ludza municipalityProperty of LBE

LBE boiler house (Ludza)

Lindeks - wood processing (Ludza, 8 km)

Verems - plywood production (Rezekne district, 27 km)

Nomis - wood processing and forestry (Rezekne district, 45 km)

Junions - wood processing (Ludza, 2 km)

Ludzas MRS - wood processing and forestry (Ludza district, 20-40 km)

Graudi - cleaning of roadsides/under power lines (Ludza district, up to 40 km)

Lapegles 2 - forestry (Ludza district, 15 km)

Vels 2 - wood processing and forestry (Daugavpils and Kraslava district, up to 120 km)

The most of suppliers are situated in 45 km radius

Logistics of Biomass

10“Bioenergy Promotion 2 ”


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Securing of biomassInitially agreement on wood fuel supply was concluded between LBE and biggest local wood processing company LINDEKS

The contract term is 15 years

Payments for the biomass were made according to produced MWh of heat

Fuel moisture 40-60% on wet base

On 2005 Lindeks reduced amount of output

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Securing of biomass

Payment for delivered biomass now is made per loose cubic meter.

Fuel moisture 20-55% on wet base.

For reduction of the risk related to only one supplier, we have agreed that part of biomass is supplied by alternative suppliers – the biggest plywood producer “Latvijas Finieris” and other local companies.

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Looking a hed

Wood chips from forestryActual cost ~ 5,5 LVL /m3 loose



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Wood chips from wood-processing (ashes under 1,5 %)

Wood chips from bushes (ashes under 3 %)

Wood chips from forestry (ashes under 20 %)

Securing of biomass



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Fuel balance

Diesel oil,30 Ls/MWh (43 EUR/MWh)

2%

98%

Estimated

Operational results

Fact 200875%

25%

Wood fuel,9,50 Ls/MWh (13,57 EUR/MWh)



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Use of biomass and diesel fuel

20052006

20072008

97,6

2,4

99,2

0,8

97,4

2,6

97,6

2,40,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

%

Year

BiomassDiesel



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Optimization of wood fuel consumption

Wood fuel consumption (loose cubic meters on 1 MWh heat energy)

1,40

1,50

1,60

1,70

1,80

1,90

2,00

2001 2002 2003 2004 2005Period

m3/

MW

h



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Positions Initial situation 2000 New situation 2001Fuel Mazut (heavy oil) Wood fuel, diesel oil

Equipment Steam boilers produced in 1967 with a total capacity 55 tons/h

New boiler equipment with a total capacity 15 MW

Efficiency 65 % 85 %Employees 18 8

Heat price 20,00 Ls/MWh - cost price(28,57 EUR/MWh)

13,67 Ls/MWh – tariff(19,53 EUR/MWh)

EmissionsCO2 13 000 t/year

SO2 220 t/year

SO2 0,5 t/year (440 x)CO2 175 t/year (74 x)EUA(2005-2007) 39000

Benefits



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Efficiency versus moisture content

72

74

76

78

80

82

84

86

88

90

30 40 50 60 70

Biomass moisture, %

Boile

r ef

ficie

cy, %



20

5,00

5,50

6,00

6,50

7,00

7,50

1 3 5 10 15 20

Ash content, %

Fuel

cos

ts, L

s/lo

ose

m3

Fuel costs depending on the ash content of wood chip



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Various types of biomass use

20052006

20072008

0 0

100,00

0 0

100,00

12

1

87,00

23

2

75,00

0

10

20

30

40

50

60

70

80

90

100

%

Year

Wood chips from forestry

Wood chips from bushes

Wood chips from wood processing



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Utilization factor for biomass boiler

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

1 2 3 4 5 6 7 8 9 10 11 12

Month

Util

isat

ion

fact

or, %

2005200520072008

May 6-7, 2009, Riga

“RTU Int. Conference “Wood Fuel Standards. Combustion”

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Operation with no scheduled boiler cleaning

Position Chips from forest (ashes under 20 %)

Chips from bushes (ashes

under 3 %)

Chips from wood-processing (ashes

under 1,5 %)

General indicators

Particular indicators, Ls/MWh

Wood chips price, excl. Ls/ loose m3 5,50 6,00 7,00 - -

Wood chips amount, % 0 0 100 100 -

Wood chips amount, loose m3 0 0 43750 43750 -

Ash amount, t 0 0 167 167 -

Ash transportation expenses, Ls 0 0 3664 3664 0,116

Wood chip expenses, excl. VAT, Ls 0 0 306250 306250 9,72

Diesel fuel expenses, excl. VAT, Ls 0 0 0

Total expenses, excl. VAT, Ls 309914 9,83



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Operation with 3 scheduled boiler cleanings

Position Chips from forest (ashes under 20 %)

Chips from bushes (ashes

under 3 %)

Chips from wood-processing (ashes

under 1,5 %)

General indicators

Particular indicators,

Ls/MWh

Wood chips price, excl. Ls/ loose m3 5,50 6,00 7,00 - -

Wood chips amount, % 20 30 50 100 -

Wood chips amount, loose m3 9692 13500 21875 45067 -

Ash amount, t 492 103 83 678 -

Ash transportation expenses, Ls 10823 2261 1832 14917 0,473

Wood chip expenses, excl. VAT, Ls 53306 81000 153125 287431 9,12

Diesel fuel expenses, excl. VAT, Ls 26250 26250 0,83

Total expenses, excl. VAT, Ls 328598 10,43



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Specific cost changes depending from wood chip source

8,8

9,2

9,6

10

10,4

10,8

0 0,5 1 1,5 2 2,5 3 3,5 4 4,5

Scenario

Exp

ense

s (to

tal,

chip

s), L

s/M

Wh

0

0,3

0,6

0,9

1,2

Exp

ense

s (as

h, d

iese

l), L

s/MW

h

Total Chips Ash Diesel oil



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Comparison of heat tariffsDistrict Heating tariffs in Latvian towns 2008/2009

green - wood biomass; red - with CHP; blue - fossil fuels

63,8

5

20,00

30,00

40,00

50,00

60,00

70,00

80,00

90,00

Rujie

na

Ludz

a

Talsi

Valk

a

Mad

ona

Kuld

iga

Tuku

ms

Aluk

sne

Vent

spils

Limba

zi

Kras

lava

Valm

iera

Plav

inas

"Kom

f.", T

ukum

s

Vang

azi

Aizk

rauk

le

Ogr

e

"Rīg

as S

iltum

s"

Sigu

lda

Lielv

arde

Jeka

bpils

Cesis

Daug

avpi

ls

Sald

us

Jelg

ava

Jurm

ala

Ola

ine

Sala

spils

Liepa

ja

EUR

/ M

Wh



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Patent for an invention

A group of authors: RTU VASSI SIA «Ludzas Bio-Enerģija» AS Komforts



2011.gada 22., 23. februāris, RīgaEnerģētikas politika un klimata aizsardzība – Kur

atrodamies 20 gadus pēc Rio?28

Flue gas condenser

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Assembling of condenser



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Benefits

Consumes for 10-20% less fuel

More power from boiler

Fossil fuel consumption reduces by 150 tons / year

GHG emission reductions of 500 tons / year

Reduction of hard particle emissions

Strengthening of the competitiveness

Option of installing similar condensers in other boiler houses



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Heat production from biomass could be feasible and cost-effectiveIn Latvia amount of sustainable wood biomass is enough Cheap fuel dos’t meen cheaper energy

Conclusions



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Ludzas Bio-EnerģijaS. Eizensteina 29, Riga LV-1079Phone: 67817090; fax: 67817087E-mail: [email protected] house: Rupniecibas 2b, Ludza LV-5701Phone: 65707182; fax: 65707181E-mail: [email protected]

Contacts



mailto:[email protected]

mailto:[email protected]

http://www.balteneko.lv/

CASE STUDY OF FUEL SWITCH IN THE LUDZA BOILER HOUSE

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