dr keith lovegrove head solar thermal, it power group ...€¦ · • capital available at...
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Dr Keith Lovegrove
Head – Solar Thermal, IT Power Group, http://www.itpau.com.au
(with acknowledgements to Steve Edwards, Josh Jordan, Juergen
Peterseim, Hugh Saddler, Jay Rutovitz, Muriel Watt, Joe Wyder)
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Renewable Energy Consulting Joe Wyder
Projects Manager
IT Power Australia
March 2015
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IT Power Renewable Energy Consulting
Established in the UK in 1981 as
Intermediate Technology Power.
Specialist sustainable energy engineering
consultancy:
– renewable energy and efficiency
consulting,
– climate change policies and carbon
trading market analysis,
– international development, and
– business consulting and due
diligence.
More than 2,000 sustainable energy
projects in over 100 countries.
Head Office and Marine Energy Division
in the UK with offices in
India, China, Australia, East Africa
and South America.
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ITP provides independent energy advice
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RE Options for Australian Industrial Gas Users
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Data From Australian Energy Statistics 2014
Australia’s end use energy
70% from
gas
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Current Industrial Use
• Chemical feedstock
• Drying
• Ovens
• Heating water / steam
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• Gas prices are increasing
• Gas supply is uncertain
• Some gas users are keen to reduce their carbon footprint
• Potential to make use of unused resources
• Capital available at affordable rates
• Technical risk is low
Renewable energy viability
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Viable technology solutions
Industrial gas users should consider:
• Biomass if a low cost suitable biomass resource is available
convenient to the location.
• Solar heating of water or steam at temperatures below
approximately 250oC in areas of reasonable solar resources.
• Hot sedimentary aquifers for low temperature process heat where
a resource exists nearby to the point of use at modest depth.
• Heat pumps (and PV) if electricity costs justify.
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De Bortoli Winery Griffith NSW,100 x 30 tube collectors to deliver 12,000L of water per day, at 95°C
Case study - Evacuated tubes
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Case study – Parabolic trough
10MWth solar thermal trough array for 250°C, at a copper mine in Chile.
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Case study - Biomass boiler
8MWth boiler using grape spent grape marc at Australian Tartaric site in Victoria
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Case study - Biomethane
Altmark biomethane plant in Germany 1,650m3 biogas per hour from mixed feedstock
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Costs for biomass: Capex
• Capital cost has strong dependence on size
• Almost independent of technology or temperature of use
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
0 10 20 30 40 50
Spe
cifi
c p
lan
t co
st, A
U$
/MW
th
Process heat demand, MWth
Process Heat Plant Specific Cost
Boilers or gasifiers
Digestors
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• Biomass fuel not universally available
• Cost ranges from zero upward
Costs for biomass: Fuel
Resource Indicative cost per GJ
Animal wastes, sewage sludge, landfill gas Generally low to zero, can be negative if
disposal costs are avoided
Wood process residues, bagasse, etc low to zero
Short cycle crops such as oil mallee $5 to $7/GJ near term
Wood pellets $12/GJ at plant gate, add $0.3/GJ up to 15km
and $0.8GJ up to 70km
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Assumptions:
7.5% on 60%
debt, 10% on
equity, 15 year
depreciation,
20yrs life… 16
Inte
rnal R
ate
of
Re
turn
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Opportunities for bioenergy
Locations where:
– there is access to a low cost bioenergy supply, eg a waste stream close by, and
– relatively high gas costs make the expense of bioenergy investments worthwhile.
Prospective industries include:
– food and beverage manufacturing,
– agriculture (dairy, feedlots and meat processing), and
– pulp and paper manufacturing.
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18
Capex for solar thermal –
depends on temperature and size
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19
Assumptions:
7.5% on 60%
debt, 10% on
equity, 15 year
depreciation,
20yrs life…
Inte
rnal R
ate
of
Retu
rn
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Opportunities for solar thermal
Industries where:
– gas is used for low to medium temperature applications (50 – 250oC).
Locations where:
– appropriate waste streams are not readily available or biomass transportation and storage costs are prohibitive,
– there is an above average solar resource, and
– land (including roof space) is available at low or no cost.
Prospective industries include:
– meat processing and dairy products,
– minerals and resource processing,
– chemicals manufacturing, and
– fertiliser manufacturing.
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Australia’s Policy
Landscape
• Emissions Reduction Fund
• Renewable Energy Target
• Clean Energy Finance Corporation
• Australian Renewable Energy Agency
• State Government agencies
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Conclusions
• Rising gas prices are creating challenges for gas users and opportunities
for renewables.
• Renewable energy technologies displacing gas can offer increased
certainty and attractive longer term opportunities.
• Gas users are risk averse and expect high IRRs, thus there may be
opportunities for Energy Service Companies.
• The CEFC can provide low interest financing.
• Proponents should be discussing potential projects with relevant
State Governments and ARENA.
For more information, updates or feedback: [email protected]
www.itpau.com.au