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Life Cycle Analysis of the Estonian Oil Shale Industry

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Life Cycle Analysis of the Estonian Oil Shale Industry Eestimaa Looduse Fond Tallinna Tehnikaülikool Estonian Fund for Nature Tallinn University of Technology Life Cycle Analysis of the Estonian Oil Shale Industry Olga Gavrilova1, Tiina Randla1, Leo Vallner2, Marek Strandberg3, Raivo Vilu1 1 Institute of Chemistry, Tallinn University of Technology, 2 Institute of Geology, Tallinn University of Technology 3Estonian Fund for Nature Tallinn 2005 CONTENT Introduction....................................................................................................................... 9 1. General characteristics of the energy sector in Estonia......................................10 1.1. Energy sector of Estonia and its comparison with the other European countries .................................................................................................. 10 1.2. Location of oil shale mining and oil shale consuming enterprises............. 13 1.3. Social indicators of Ida-Viru county......................................................... 16 1.4. Brief history of oil shale mining and consumption in Estonia................... 16 2. Oil shale – a resource for energy generation........................................................18 2.1. Oil shale deposits in the world.................................................................. 18 2.2. Chemical composition of oil shale............................................................ 18 2.3. Oil shale deposits in Estonia..................................................................... 19 2.4. Structure of oil shale beds ........................................................................ 19 2.5. Oil shale reserves ..................................................................................... 24 2.6. Technologies of oil shale mining.............................................................. 27 2.7. Oil shale enrichment................................................................................. 30 2.8. Oil shale consumption (uses of oil shale).................................................. 30 2.8.1. Oil shale consumption for electricity and heat generation..........................30 2.8.1.1. Oil shale combustion technology.................................................................31 2.8.1.2. The Balti Power Plant.....................................................................................31 2.8.1.3. The Eesti Power Plant ....................................................................................32 2.8.1.4. The Kohtla-Järve Combined Heat and Power Plant (CHP) ....................34 2.8.1.5. The Ahtme Combined Heat and Power Plant (CHP) ...............................34 2.8.1.6. The Power Network........................................................................................34 2.8.2. Shale–to–oil processing – oil shale chemical industry................................35 2.9. Efficiency of oil shale industry................................................................. 36 2.9.1. Efficiency of oil shale extraction.....................................................................37 2.9.2. Oil shale losses in the process of enrichment................................................39 2.9.3. Efficiency of electricity generation from oil shale.......................................39 2.9.4. Efficiency of thermal energy generation from oil shale..............................42 3. Natural resources and environmental impact of the oil shale industry ...........45 3.1. Atmospheric emissions............................................................................. 45 3.2. Waste generation...................................................................................... 47 3.2.1. Solid wastes of oil shale mining ......................................................................50 3.2.2. Solid wastes of electricity and heat generation.............................................52 3.2.3. Wastes from chemical industry (production of shale oil) ...........................54 3.2.4. Summary of solid wastes generation and land use for their deposition ...57 3.3. Post-technological processes of oil shale mining and land use.................. 58 2 3.4. Water resources of Northeast Estonia and impact of oil shale industry..... 60 3.4.1. Hydrogeological setting and natural water budget of the regional water resources ..............................................................................................................60 3.4.2. Impact of oil shale mining on water resources..............................................67 3.4.2.1. Impact of draining and flooding of the mines............................................67 3.4.2.2. Impact on of mining on the natural surface water bodies........................73 3.4.2.3. Post-technological impact of mining on regional water resources ........73 3.4.2.4. Water pollution in closed mines ...................................................................75 3.4.3. Overexploitation of aquifers and groundwater proved reserves................77 3.4.4. On quantitaive criteria of sustainable groundwater management..............85 3.4.4.1. EC Water Framework Directive and groundwater bodies.......................85 3.4.4.2. Methodological background..........................................................................88 3.4.4.3. Available groundwater resources and the the quantitative status of groundwater bodies............................................................................................91 4. Economics of Estonian oil shale industry.............................................................95 4.1. Cost price structure of oil shale products and services.............................. 95 4.1.1. Cost price of oil shale extraction .....................................................................95 4.1.2. Cost price of electricity and heat generation from oil shale.................... 96 4.1.3. Estonian environmental taxes.........................................................................100 4.1.2. Cost of shale oil ................................................................................................104 4.2. Vertical monopoly of oil shale industry.................................................. 105 5. Possible future developments of Estonian energy sector – government policy........................................................................................................................107 6. Conclusions ..............................................................................................................112 References.....................................................................................................................115 3 List of tables Table 1. The main indicators of Estonia and Ida-Viru county, 2004 .....................................16 Table 2. Composition of oil shale organic and mineral parts ................................................18 Table 3. The major mineral phases of kukersite ...................................................................19 Table 4. Oil Shale reserves, million tonnes, on 01.01.2002 ..................................................25 Table 5. Estimated areas of mined out land in rural municipalities.......................................29 Table 6. Net efficiency of the Balti Power Plant ..................................................................32 Table 7. Net efficiency of the Eesti Power Plant ..................................................................33 Table 8. Net efficiency of the Kohtla-Järve Plant.................................................................34 Table 9. Net efficiency of the Ahtme Plant ..........................................................................34 Table 10. Oil shale extraction and losses in 2002, 1000 tonnes, official data........................37 Table 11. Written off and added oil shale reserves, 1000 tonnes ..........................................37 Table 12. Oil shale mining efficiency, taking into account written off reserves ....................38 Table 13. Oil shale losses in the process of oil shale mining in 2002....................................39 Table 14. Efficiency of electricity generation from oil shale ................................................40 Table 15. Efficiency of thermal energy generation from oil shale.........................................42 Table 16. Emissions - g per 1 kWh of energy.......................................................................45 Table 17. The maximum permitted values for emissions of contaminants into atmosphere...45 Table 18. Emissions from Balti PP and Eesti PP in 2001 and after renovation of power units, tonnes.............................................................................................................46 Table 19. Emissions into atmosphere from the PFB and CFB boilers, g/kWh ......................46 Table 20. The total amount of non-hazardous and hazardous waste generated in Estonia .....48 Table 21. The volume and area of landfills from shale oil processing...................................55 Table 22. The total values of chemical elements in wastes of oil shale industry (energy generation, chemical industry), according to wastes composition, 1000 tonnes.........58 Table 23. The total values of chemical elements in wastes from oil shale industry (energy generation, and chemical industry), according to wastes composition, tonnes...........59 Table 24. Restrictions to land use and building on the mined areas. .....................................59 Table 25. Correlation of geological
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