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Renewable Energy Options for Industrial Process Heat

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Renewable Energy Options for Industrial Process Heat Renewable Energy Options for Industrial Process Heat ITP ITP Thermal Pty Ltd, is a part of the ITP Energised Group (ITP), which was formed in 1981 and is a specialist renewable energy, energy efficiency and carbon markets engineering and consulting group of companies. It has member companies and offices in the UK, Australia, India and China and has completed projects throughout the world. ITP Thermal Pty Limited 19 Moore Street, Turner ACT 2612, Australia PO Box 6127, O’Connor, ACT, 2602, Australia Tel. +61 2 6257 3511 Fax. +61 2 6257 3611 [email protected] www.itpthermal.com www.itpau.com.au Disclaimer This report has been prepared by ITP Thermal at the request of the Australian Renewable Energy Agency (ARENA). It is intended solely to provide information on renewable energy options for industrial process heat. The information contained in this report, including any diagrams, specifications, calculations and other data, remains the property of ARENA or its original owner as referenced in this report. This report may not be copied, reproduced or distributed for commercial purposes, or adapted or modified in any way or for any purpose, without the prior written consent of ARENA. Any use of this report must be attributed to ARENA. The analysis and content of this report was completed in August 2019. The report is provided as is, without any guarantee, representation, condition or warranty of any kind, either express, implied or statutory. ARENA and ITP Thermal Pty Ltd do not assume any liability with respect to any reliance placed on this report by third parties. If a third party relies on the report in any way, that party assumes the entire risk as to the accuracy, currency or completeness of the information contained in the report. © Australian Renewable Energy Agency 2019 www.arena.gov.au Cover graphics by 2B Advertising and design, cover images from iStockphoto. V4.1 ii Renewable Energy Options for Industrial Process Heat RENEWABLE ENERGY OPTIONS FOR INDUSTRIAL PROCESS HEAT Study commissioned by the Australian Renewable Energy Agency (ARENA) to determine the potential opportunity for integrating renewable energy into industrial process heat applications in Australia. This report documents the analysis undertaken by ITP in conjunction with Pitt&Sherry, the Institute for Sustainable Futures, Sustainability Advice Team and Beyond Zero Emissions. It highlights technology options for renewable process heat applications across Australian industries and provides indicative cost estimates for renewable energy compared with fossil energy. Authors Keith Lovegrove, Dani Alexander, Roman Bader, Stephen Edwards, Michael Lord, Ahmad Mojiri, Jay Rutovitz, Hugh Saddler, Cameron Stanley, Kali Urkalan, Muriel Watt iii Renewable Energy Options for Industrial Process Heat CONTENTS EXECUTIVE SUMMARY ................................................................................................................................. 7 1. INTRODUCTION ................................................................................................................................... 21 1.1. Recent studies ............................................................................................................................... 22 1.2. Approach and report structure ....................................................................................................... 23 2. INDUSTRIAL PROCESS HEAT USE IN AUSTRALIA ........................................................................ 25 2.1. Sectors using heat ......................................................................................................................... 25 2.2. Fuel use for process heat .............................................................................................................. 30 2.3. Locations and intensity of process heat use by industry ............................................................... 31 2.4. Cost of fossil fuels for process heat ............................................................................................... 34 3. RENEWABLE ENERGY TECHNOLOGIES FOR PROCESS HEAT ................................................... 38 3.1. Bioenergy ....................................................................................................................................... 38 3.2. Geothermal .................................................................................................................................... 43 3.3. Renewable electric heating ........................................................................................................... 45 3.4. Renewable hydrogen ..................................................................................................................... 48 3.5. Solar thermal ................................................................................................................................. 50 3.6. System optimisation ....................................................................................................................... 54 3.7. Economic assessment ................................................................................................................... 61 3.8. Resources ...................................................................................................................................... 76 4. ALUMINA AND OTHER NON-FERROUS MINERALS ........................................................................ 77 4.1. Overview ........................................................................................................................................ 77 4.2. Renewable energy options ............................................................................................................ 81 4.3. Case studies .................................................................................................................................. 83 5. FOOD AND BEVERAGE ...................................................................................................................... 88 5.1. Overview ........................................................................................................................................ 88 5.2. Renewable energy options ............................................................................................................ 95 5.3. Case studies ................................................................................................................................ 103 6. AMMONIA AND OTHER CHEMICALS .............................................................................................. 107 6.1. Overview ...................................................................................................................................... 107 6.2. Renewable energy options .......................................................................................................... 113 6.3. Case studies ................................................................................................................................ 117 7. IRON AND STEEL .............................................................................................................................. 119 7.1. Overview ...................................................................................................................................... 119 7.2. Renewable energy options .......................................................................................................... 124 7.3. Case studies ................................................................................................................................ 127 8. CEMENT AND LIME ........................................................................................................................... 129 8.1. Overview ...................................................................................................................................... 129 iv Renewable Energy Options for Industrial Process Heat 8.2. Renewable Energy options .......................................................................................................... 132 8.3. Case studies ................................................................................................................................ 135 9. PULP AND PAPER ............................................................................................................................. 138 9.1. Overview ...................................................................................................................................... 138 9.2. Renewable energy options .......................................................................................................... 142 9.3. Case studies ................................................................................................................................ 144 10. OIL, GAS AND PETROLEUM ............................................................................................................ 148 10.1. Overview ...................................................................................................................................... 148 11. OTHER SECTORS .............................................................................................................................. 152 11.1. Overview ...................................................................................................................................... 152 11.2. Key subsectors ...........................................................................................................................
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