Bellona Report No 3:1999 Green Heat and Power Eco-effective Energy Solutions in the 21st Century T. Palm, C. Buch, B. Kruse, E. Sauar June 1999 English version June 2000 ISBN 82-993138-8-0 ISSN 0806-3451 Published by the Bellona Foundation 4 Green Heat and Power Eco-effective Energy Solutions in the 21st Century Preface 6 3.5. Hydrogen production from renewable energy 37 Summary 7 3.5.1. Electrolysis of water 37 3.5.2. Gasification of biomass 37 1. The Energy and Environment Challenge 9 3.5.3. Photoelectrochemical production 37 1.1. Three sources of fossil fuel 9 3.5.4. Photobiological hydrogen production 37 1.1.1. Three key factors 9 3.5.5. Biological hydrogen production from 1.2. Three principle sources of energy in Norway 10 organic wast 38 1.3. Three uses of energy 10 3.5.6. Thermal electrolysis of water 38 1.4. Three key solutions 10 1.4.1. Cleaner fossil fuels 11 1.4.2. Renewable energy 11 4. Energy efficiency on the mainland 39 1.4.3. Energy efficiency 12 4.1. New technology to curb increasing 1.5. Three sources of emissions to the environment 12 consumption of electricity 39 1.5.1. Three major kinds of emissions and their 4.1.1. Using the most appropriate type of energy 39 consequences 12 4.1.2. Increased use of electricity for heating costs 1.5.2. A closer look at greehouse gas emissions more than district heat 40 in Norway 14 4.1.3. Inconsistent regulations hinder district heating 40 4.1.4. Lower power-grid rates for decentralized 2. Fossil fuel 15 electrical power plants 41 2.1. Energy Carriers 15 4.1.5. Prohibition of resistance heaters in new 2.2. Carbon extraction 16 construction except single-family homes 41 2.2.1. Depositing 16 4.1.6. Minimum requirements for electrc lighting 42 2.3. Stationary discharge stations 16 4.1.7. Maximum requirements for power drawn by 2.3.1. Extraction of CO2 from natural gas 17 Limiting the stand-by function on new 2.4. The petroleum industry in Norway 20 electronic equipment 42 2.4.1. Power supply 21 4.2. Cheaper food and clothing - more expensive 2.4.2. Process optimization 23 electricity and wast of energy 42 2.4.3. Zero emissions 24 4.3. New cable technology 42 2.4.4. Localizing new, versus reduced, access to 4.4. Tax loopholes from Sweden and Denmark 43 fossil resources 24 2.4.5. Summary 26 5. Hydrogen and electricity in the 2.5. More on the production of hydrogen transportation sector 44 from fossil fuels 27 5.1. Regulations and taxes force the development 2.5.1. Gasification of coal 27 of new technology 44 2.5.2. Partial oxidation of heavy hydrocarbons 27 5.2. Fuel Cell Cars 45 2.5.3. Steam reforming of natural gas 28 5.3. Hydrogen in Norwegian Transportation 46 2.5.4. Autothermal reforming 28 5.4. Storage 47 2.5.5. Carbon monoxide exchange 28 5.4.1. Compressed Hydrogen 47 2.5.6. The Kværner Carbon Black & Hydrogen Process 28 5.4.2. Liquid Hydrogen 47 2.5.7. Plasmatron 28 5.4.3. Metal hydrid 47 2.5.8. Key figures for hydrogen 29 5.4.4. Hydrogen in carbons 48 5.4.5. Methanol 48 3. Renewable energy 30 5.4.6. Gasoline and other hydrocarbons 48 3.1. Sources of renewable energy 30 5.5. Hydrogen in airplanes 49 3.1.1. Wind power 30 5.6. Other use of hydrogen in the transport sector 50 3.1.2. Tidal energy 31 5.7. Hydrogen and safty 50 3.1.3. Osmotic pressure 31 5.8. Battery-driven electric cars 50 3.1.4. Wave power 31 5.9. Other elecric-powered vehicles 51 3.1.5. Hydropower 31 3.1.6. Solar energy 32 6. The Energy Industry: 3.2. Abundant and inexpensive supplies of From supplying raw material to providing heat available in Norway 32 technology 52 3.2.1. Bioenergy and waste 32 6.1. Hydrogen in transportation based on Norwegian 3.2.2. Solar heating systems 34 electrolysis and gas expertise 52 3.2.3. Heat pumps 34 6.2. From Norwegian silicon to international solar 3.2.4. Geothermal energy 34 power 52 3.2.5. 1-2 TWh process heat available close by 6.3. Energy from waste 53 consumers 35 6.4. Concrete with 50 % CO2 emission 53 3.3. Renewable energy in other countries 35 6.5. Light materials for cleaner transportation 54 3.3.1. Denmark 35 3.3.2. Sweden 36 7. A total energy policy 55 3.3.3. The EU 36 7.1. Developments in the energy market 55 3.4. The political and economic structure 36 7.2. Norway, the land of energy 56 3.4.1. Free energy from the process industry, 7.3. Effective use of existing energy consumption 57 geothermal sources, and wast incineration 7.3.1. Less expensive food and clothing, higher to be given the same advantages as price for electricity 57 renewable energy 36 7.3.2. Thechnological efficiency to avoid energy waste 57 Green Heat and Power Eco-effective Energy Solutions in the 21st Century 5 7.3.3. Free environmental process heat must be treated the same as renewable energy 57 7.3.4. Power grid companies must opt for a district heating network when this is least expensive 58 7.4. Development of new renewable energy 58 7.4.1. Required sale of at least 5% renewable energy 58 7.4.2. Tax-exemption the first five years 58 7.5. Direct emissions reduction from energy production and use 59 7.5.1. The petroleum industry and oil heating 59 7.5.2. Transportation and energy technology, and energy carriers 59 7.5.3. Energy recycling of solid waste 60 7.5.4. Other significant stationary point sources of CO2 60 References 61 Attachment 1: Gasturbines on the Norwegian shelf 63 Attachment 2: A closer look at fossil oil, well pressure, and produced water 65 Attachment 3: Fuel Cells: From fuel to electricity and clean watert 66 Attachment 4: Index of organization names and abbreviations 67 6 Green Heat and Power Eco-effective Energy Solutions in the 21st Century Bellona Report No 3:1999 Preface Green Heat and Power Autor of this report are: Thomas Palm, Cato Buch, Bjørnar Kruse and Erik Sauar Translation: Diana Smith Oeding Norway has emerged as a major pro- developed from a more integrated The Bellona Foundation ducer of oil, gas, and hydropower du- ìbig-pictureî perspective. Our target ring the lifetimes of the authors of audience is people with a general this report. Our accumulated experi- interest in the subject, individuals Norway: ence in working on environmental who work with these kinds of chal- P.O. Box 2141, Grünerløkka conservation spans approximately 50 lenges on a day-to-day basis, politici- N-0505 Oslo years, with our main area of concen- ans and other decision-makers, and Norway tration being energy and the envi- people who are actively engaged in Street address: Nordregate 2 ronment. Although river systems research and development. Email: mailto:[email protected] have been harnessed into pipes and This report represents a stark con- many oil fields have been developed, trast to the report published by the Russia: on the threshold of a new century we government-appointed energy com- Russia feel confident that the majority mission, a commission which was 183038 Murmansk would agree that our future energy unable to demonstrate how Norway P.O. Box 4310 needs cannot be based and sustained could both increase energy producti- Bellona Murmansk on the exploitation of the natural en- on and decrease energy consumpti- Email: mailto:[email protected] vironment. on, while simultaneously reducing This report sketches how Norway greenhouse-gas emissions in compli- EU (Belgium): can reposition itself to become an ance with our international commit- Bellona Europe important energy supplier that can ments. The report Green Heat and 142-144 Avenue de Tervueren help solve environmental problems Power: Eco-Eeffective Energy Soluti- B-1150 Brussels instead of create them. It is also a ons in the 21st Century documents Belgium guide to what we think is important that up until the year 2020 Norway Email: to know about energy and the chal- can free up one sixth of the electrici- [email protected] lenges facing the environment. It is ty produced, reduce CO2 emissions all too easy to become swamped by by over 50%, produce 50 TWh of re- USA: information, which is why we have newable energy, and export large Bellona USA elected to focus firmly on essentials. amounts of ìcleanî fossil fuels such P.O. Box 11835 We not only look at the solutions of as hydrogen and electricity. We have Washington, D.C. 20008 the past, we look into what the futu- only proposed measures up until USA re may bring. New thinking and ap- 2010, partly because the world will Email: mailto:[email protected] proaches to the problems that are as have changed by that time, and be- URL:http://www.bellona.no yet little known are outlined in de- cause the best means of predicting tail. We seek to present solutions the future is to be part of creating it. This report is available in English and Norwegian. Copying permitted when source is cited. Oslo, June 1999 Comments to this report are welcomed. Thomas Palm Cato Buch Bjørnar Kruse Erik Sauar Bellona wishes to thank its partners in conjunction with the B7-strategy: Aker Maritime Norway Seafoods Scanbio Aker RGI Fred Olsen & Co Scancem/Norcem Eiendomsspar Länsförsäkringar Miljö Scandic Energos Oslo Lufthavn Statkraft Forbrukersamvirket Phillips Statoil NHO SAS Uniteam Green Heat and Power Eco-effective Energy Solutions in the 21st Century 7 Summary Energy and the environmental challenge.