Value chain models for effective biogas production and utilization – case study from Østfold region in Norway Nordic Biogas Conference, Reykjavik Kari-Anne Lyng kari-anne@ostfoldforskning.no 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 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? 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. 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 Models developed in 3 phases Research collaboration between: • Østfoldforskning • NMBU • Bioforsk • Telemark University College • TelTek • RebioKonsult Contributors • Norwegian Agricultural Authority (SLF) • Norwegian Research Council • Avfall Norge • The Norwegian Farmers Union (Bondelaget) • Cambi • NHO Mat og Drikke • DTU Management engineering • Agricultural department, Østfold and • University of Southern Vestfold County (Fylkesmannens Denmark landbruksavdeling) Environmental impact model Organic waste Storage Functional unit (reference flow): Manure Amount of substrate (1 tonne of DM) Sequestration of biogenic + Direct emissions from biomass + Indirect emissions Transport carbon in soil Avoided burdens from substitution of mineral fertiliser or soil improvement products Pre-treatment - Avoided burdens = Net environmental impact Current practice for LCA of waste management systems Anaerobic digestion Use and application on land Transport and storage Avoided emissions from substitution of fuels, heat or electricity Use of biogas 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 Farm Pretratment plant Investment costs Manure storage, Infrastructure digestate tank, cover digestate tank Fixed operating costs Maintenance costs, digestate Upgrading plant Infrastructure, Infrastructure sedimentation tank, digester, storage digestate, additional costs Maintenance costs Personell, Maintenance costs, maintenance costs, gas motor, manure pump, property costs Energy and heat, Energy and heat, Energy and heat, pretreatment costs water costs upgrading costs (/Nm3) (/ton waste) Variable operating costs Income and avodided costs Biogas plant Storage payment from biogas plant for digestate, digestate replaces mineral fertiliser Gate-fee waste, energy sales, digestate sales Østfold: Analysed scenarios Treatment of all organic household waste and 30 % of the manure in the region 0 1 2 Reference scenario: current treatment of organic waste (14% compost og 86% energy recovery) and manure spread locally as fertiliser. One central biogas plant + one local farm based plant. One pre-treatment facility Two biogas plants + one local farm based plant. Stegen (Askim) Bodal (Rakkestad) Tomb (Råde) a) One pre-treatment facility b) Two pre-treatment facilities 3 Three biogas plants + one local farm based plant. 17.000 tonnes organic waste Two pre-treatment facilities. Frevar (Fredrikstad) 23.000 tonnes manure from cattle 42.000 tonnes manure from pig All scenarios: upgraded and used as fuel in buses and renovation trucks, liquid digestate used as fertilizer tonnes CO2-eqiv./year Results for Global Warming Potential 1 biogas plant 2 biogas plants 3 biogas plants 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 Resuls for LCC 1 biogas plant 2 biogas plants 3 biogas plants Results for annual costs Gate fee for waste Income upgraded biogas 60 000 000 Årlige kostnader per verdikjedeledd, scenario I Two or three smaller biogas plants: upgrading, investment and maintenance costs increases, while transport costs are reduced 50 000 000 Kostnader i NOK per år 40 000 000 Oppgraderingskostnader Transportkostnader 30 000 000 Investeringskostnader 20 000 000 Costs for the farmers are equal for all scenarios Driftskostnader Two smaller pre-treatment facilities: investment and maintenance costs increases, while transport costs are reduced 10 000 000 - Gården Forbehandlingsanlegg Biogassanlegg 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 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 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