LIEN – Reporting Energy & CO2 Emissions for Carbon Tax and Emissions Trading.

Fuel Use and Distribution in Ireland

Fuel Use & Distribution

• Where does Industry fit in the overall energy picture

• Industry’s fuel mix

• Industry CO2

• Carbon Tax

• Profile of Industrial Energy Consumption

• Competitiveness and Energy

• Industrial economic activity and energy consumption

Index of GDP, TPER & Energy Related CO2

100

120

140

160

180

200

220

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Ind

ex 1

990 =

100

GDP (CSO) TPER Energy CO2 (EPA)

Total Primary Energy Requirement by Fuel Type

0

2

4

6

8

10

12

14

16

1990 1992 1994 1996 1998 2000

Mto

e

Coal Peat Oil Gas Hydro Other RE

Total Primary Energy Requirement by Sector

0

2

4

6

8

10

12

14

16

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Mto

e

Industry Transport Residential Commercial / Public Agriculture

Energy Import Dependency

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Imp

ort

De

pe

nd

en

cy

Ireland EU-15

Total Final Consmption of Energy by Fuel Type

0

2

4

6

8

10

12

1990 1992 1994 1996 1998 2000

Mto

e

Coal Peat Oil Gas Electricity Biomass

Total Final Consmption of Energy by Sector

0

2

4

6

8

10

12

1990 1992 1994 1996 1998 2000

Mto

e

Industry Transport Residential Commercial Agricultural

Electricity Primary Fuel Mix

0.0

1.0

2.0

3.0

4.0

5.0

6.0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Mto

e

Coal Peat Fueloil Gasoil Gas Hydro Other RE

Greenhouse Emissions by Source, 1990 & 2001

1990

Industrial Processes

6%

Solvent & Other Product Use

0%

Agriculture 34%

Land Use Change & Forestry

0%

Waste 3%

Energy 57%

2001

Land Use Change & Forestry

1%

Industrial Processes

5%

Agriculture 27%

Energy 65%

Solvent & Other Product Use

0%

Waste 2%

Energy Related CO2 by Sector – includes primary electricity CO2

0

5

10

15

20

25

30

35

40

45

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Mt

CO 2

Industry Transport Residential Commercial Agriculture

Industry Energy by Fuel

0.0

0.5

1.0

1.5

2.0

2.5

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Mto

e

Coal Peat Briquettes Oil Gas Renewables Electricity

Industry CO2

0

2

4

6

8

10

12

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Mt C

O2

Coal Kerosene Fueloil LPG Gasoil Natural Gas Electricity

Profile of Industrial Energy Consumption

• Pareto principle states that;• A vital few of the factors are responsible for the

bulk of the effects• 80/20 rule

• 80% of the effects are caused by 20% of the factors

• It has long been assumed that the bulk of energy consumption in Industry was by a small number of enterprises.

Profile of Industrial Energy Consumption

0

10

20

30

40

50

60

70

80

90

100

0 10 20 30 40 50 60 70 80 90 100

% of Enterprises

% o

f E

nerg

y C

on

sum

pti

on

Total Electricity Fuel

CO2 Factors Source: EPA

Carbon FactorTJ/ktoe t C/TJ t CO2/TJ kg CO2/TJ kg CO2/MJ kg CO2/kWh

Coal 41.87 24.60 90.20 90200 90.20 324.72

Peat 41.87 29.57 108.42 108423 108.42 390.32

Briquettes 41.87 29.57 108.42 108423 108.42 390.32

Gasoline 41.87 18.90 69.30 69300 69.30 249.48

Kerosene 41.87 19.47 71.39 71390 71.39 257.00

Fueloil 41.87 20.73 76.01 76010 76.01 273.64

LPG 41.87 17.37 63.69 63690 63.69 229.28

Gasoil 41.87 19.99 73.30 73297 73.30 263.87

Gas 41.87 14.98 54.93 54927 54.93 197.74

Electricity CO2 (kg CO2/kWh)

0.65

0.7

0.75

0.8

0.85

0.9

0.95

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

kg

CO 2/k

Wh

Carbon Tax

• Taking an indicative tax of €10/tonne CO2;

• This equates to 1c/kg CO2

• Therefore a fuel that produces say 0.2kg CO2/kWh will incur a tax of 0.2c/kWh

• Variations on the €10/tonne can be easily calculated from this.

Carbon Tax

€5/tonne €10/tonne €15/tonne €20/tonne €25/tonnekg CO2/kWh c/kWh c/kWh c/kWh c/kWh c/kWh

Coal 0.325 0.162 0.325 0.487 0.649 0.812Peat 0.390 0.195 0.390 0.585 0.781 0.976

Briquettes 0.390 0.195 0.390 0.585 0.781 0.976Gasoline 0.249 0.125 0.249 0.374 0.499 0.624Kerosene 0.257 0.129 0.257 0.386 0.514 0.643Fueloil 0.274 0.137 0.274 0.410 0.547 0.684LPG 0.229 0.115 0.229 0.344 0.459 0.573

Gasoil 0.264 0.132 0.264 0.396 0.528 0.660Gas 0.198 0.099 0.198 0.297 0.395 0.494

Electricity 0.774 0.387 0.774 1.161 1.548 1.935

Carbon Tax Rates

Cost Competitiveness

• Energy Productivity• How much wealth can be created for a given

amount of energy?

• How do we compare on price paid for energy?

• What proportion of manufacturing costs is accounted for by expenditure on energy?

Primary Energy Intensity

0

0.05

0.1

0.15

0.2

0.25

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

kgoe/€

95

Primary Intensity EU Primary Intensity

Final Energy Intensity

Str

uctu

ral E

ffec

t

0.12

0.13

0.14

0.15

0.16

0.17

0.18

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

kgoe

/€95

Total Intensity Intensity at 1990 sectoral intensity

Electricity Prices to Industry

0

1

2

3

4

5

6

7

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

c/k

Wh

(e

xcis

e t

axe

s i

nclu

de

d)

Ireland EU Average

Fuel Oil Prices to Industry

0

50

100

150

200

250

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

€/t

on

ne (

exci

se t

axes

incl

ud

ed

)

Ireland EU Average

Industry Expenditure on Energy 1990 vs 1998 (1990 prices)

0

20

40

60

80

100

120

140

160

Mining,quarrying and

turf

Metals andengineering

Manufacture ofnon-metallic

mineral products

Chemicals(including man-

made fibres)

Food, drink andtobacco

Textile industry Timber andwoodenfurnitureindustries

Paper and paperproducts

Miscellaneousindustries

€m

illi

on

(1

99

0 p

rice

s)

1990

1998

Industry Expenditure on Energy 1998

0

20

40

60

80

100

120

140

Mining andquarrying

Manufactureof food

products;beverages and

tobacco

Manufactureof textiles and

textileproducts

Manufactureof wood and

woodproducts

Manufactureof pulp, paper

and paperproducts;publishing

and printing

Manufactureof chemicals,

chemicalproducts andman-made

fibres

Manufactureof rubber and

plasticproducts

Manufactureof other non-

metallicmineralproducts

Manufactureof basic

metals andfabricated

metalproducts

Manufactureof machinery

andequipment

n.e.c.

Manufactureof electricaland opticalequipment

Manufactureof transportequipment

Manufacturingn.e.c.

€ (

million

s)

FuelElectricity

€34.1m

€147.0m

€15.6m €18.8m€23.4m

€90.5m

€24.5m

€48.1m

€66.4m

€16.3m

€73.8m

€7.9m€16.0m

Total: €582 millionFuel: €205 millionElectricity: €377 million

Industrial Energy Consumption 1998

190

635

5841

60

250

55

235

341

46

190

1938

0

100

200

300

400

500

600

700

Mining andquarrying

Manufactureof food

products;beverages and

tobacco

Manufactureof textiles and

textileproducts

Manufactureof wood and

woodproducts

Manufactureof pulp, paper

and paperproducts;publishing

and printing

Manufactureof chemicals,

chemicalproducts andman-made

fibres

Manufactureof rubber and

plasticproducts

Manufactureof other non-

metallicmineralproducts

Manufactureof basic metalsand fabricated

metalproducts

Manufactureof machinery

andequipment

n.e.c.

Manufactureof electricaland opticalequipment

Manufactureof transportequipment

Manufacturingn.e.c.

kto

e

Total: 2,159ktoe

Industry CO2 1998 (Mt CO2)

0.43

1.47

0.13 0.05 0.09

0.43

0.06

0.40

0.89

0.060.30

0.03 0.05

0.37

1.24

0.18 0.25 0.22

0.91

0.32

0.44

0.50

0.16

0.77

0.090.20

0

0.5

1

1.5

2

2.5

3

Mining andquarrying

Manufacture offood products;beverages and

tobacco

Manufacture oftextiles and

textile products

Manufacture ofwood and

wood products

Manufacture ofpulp, paperand paperproducts;

publishing andprinting

Manufacture ofchemicals,chemical

products andman-made

fibres

Manufacture ofrubber and

plasticproducts

Manufacture ofother non-metallicmineralproducts

Manufacture ofbasic metals

and fabricatedmetal products

Manufacture ofmachinery and

equipmentn.e.c.

Manufacture ofelectrical and

opticalequipment

Manufacture oftransport

equipment

Manufacturingn.e.c.

FuelElectricity

Total: 10.03 Mt CO2

Fuel: 4.39 Mt CO2

Electricity: 5.64 Mt CO2

Industry Gross Value-added 1998

0.26

4.47

0.410.17

1.97

8.04

0.45 0.57 0.56 0.64

3.99

0.330.56

0

1

2

3

4

5

6

7

8

9

Mining andquarrying

Manufactureof food

products;beverages and

tobacco

Manufactureof textiles and

textileproducts

Manufactureof wood and

woodproducts

Manufactureof pulp, paper

and paperproducts;publishing

and printing

Manufactureof chemicals,

chemicalproducts andman-made

fibres

Manufactureof rubber and

plasticproducts

Manufactureof other non-

metallicmineralproducts

Manufactureof basic

metals andfabricated

metalproducts

Manufactureof machinery

andequipment

n.e.c.

Manufactureof electricaland opticalequipment

Manufactureof transportequipment

Manufacturingn.e.c.

€B

illion

s

Total Industry Value Added: €22 billion

Expenditure on Energy as % of Gross Value Added

0%

2%

4%

6%

8%

10%

12%

14%

Mining andquarrying

Manufactureof food

products;beverages and

tobacco

Manufactureof textiles and

textileproducts

Manufactureof wood and

woodproducts

Manufactureof pulp, paper

and paperproducts;publishing

and printing

Manufactureof chemicals,

chemicalproducts andman-made

fibres

Manufactureof rubber and

plasticproducts

Manufactureof other non-

metallicmineralproducts

Manufactureof basic

metals andfabricated

metalproducts

Manufactureof machinery

andequipment

n.e.c.

Manufactureof electricaland opticalequipment

Manufactureof transportequipment

Manufacturingn.e.c.

Ratio of Energy Expenditure to “Direct Costs”

• 97% of Industrial Enterprises have an energy to “costs” ratio of less than or equal to 4%

• This accounts for 67.3% of Industry energy CO2 (primary basis)

• 99.6% of Industrial Enterprises have a ratio of 10%

• Accounting for 80.5% of industry energy CO2

• 19 enterprises have ratios between 10% and 60%

• 19.5% of industry energy CO2

Conclusion

• Industry value-added grew by approx. 170% between 1990 and 2000

• Industry energy consumption grew by 31% in the same period

• Energy intensity fell by 3.7%/annum on average over the period

• Reduction in energy intensity cannot all be attributed to efficiency gains

• Energy intensive sectors are most sensitive to energy price change (carbon tax)

LIEN – Reporting Energy & CO2 Emissions for Carbon Tax and Emissions Trading.

Fuel Use and Distribution in Ireland

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