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Curbing Air Pollution and Greenhouse Gas Emissions From LBNL-1003860 ERNEST ORLANDO LAWRENCE BERKELEY NATIONAL LABORATORY Curbing Air Pollution and Greenhouse Gas Emissions from Industrial Boilers in China An Analysis and Implementation Roadmap for Improving Energy Efficiency and Fuel Switching with Case Studies in Ningbo and Xi’an Bo Shen, Lynn Price, Hongyou Lu, Xu Liu China Energy Group Energy Technologies Area Lawrence Berkeley National Laboratory Katherine Tsen University of California, Berkeley In collaboration with China’s expert team: Wei Xiangyang and Zhang Yunpeng, National Energy Conservation Center Guan Jian, China Special Equipment Inspection & Test Institute Hou Rui, China Machinery Industry Conservation & Resource Utilization Center Zhang Junfeng, China National Offshore Oil Corporation Zhuo Yuqun, Tsinghua University Xia Shumao, China Energy Conservation & Environmental Protection Group With the technical support of: Han Yafeng, Xi’an Jiaotong University Liu Manzhi, China University of Mining and Technology October 2015 This work was supported by the Bureau of Energy Resources of the U.S. Department of State through the U.S. Department of Energy contract #DE-AC02-05CH11231 with the Regents of the University of California. Disclaimer This document was prepared as an account of work sponsored by the United States Government. While this document is believed to contain correct information, neither the United States Government nor any agency thereof, nor The Regents of the University of California, nor any of their employees, makes any warranty, express or implied, or assumes any legal responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by its trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof, or The Regents of the University of California. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof, or The Regents of the University of California. Ernest Orlando Lawrence Berkeley National Laboratory is an equal opportunity employer. Table of Contents List of Tables ........................................................................................................................ iv List of Figures ........................................................................................................................ v Acronyms and Abbreviations ................................................................................................ vi Executive Summary .......................................................................................................... ES-1 1. Introduction ................................................................................................................... 1 2. Assessment Methods and Data Sources.......................................................................... 2 Methodological Framework ...........................................................................................................2 Literature Review ..........................................................................................................................2 City Surveys ...................................................................................................................................2 Expert Interviews ...........................................................................................................................3 Techno-Economic Analysis .............................................................................................................3 Data Sources ..................................................................................................................................3 3. Summary of Review of Relevant Studies ......................................................................... 5 Review of Research Publications ....................................................................................................5 Review of Other Boiler Assessment Work .......................................................................................6 4. Comprehensive Overview of China’s Coal-Fired Industrial Boilers ................................... 8 Characteristics of Industrial Boilers in China....................................................................................8 Potential Resources for Switching Away from Coal .........................................................................9 Natural Gas ........................................................................................................................................... 9 Biomass .............................................................................................................................................. 12 Boiler-Related Policies and Standards ........................................................................................... 12 Relevant Policies................................................................................................................................. 12 Relevant standards ............................................................................................................................. 14 5. Survey Information of Pilot Cities: Ningbo and Xi’an ..................................................... 17 Ningbo ......................................................................................................................................... 17 Economic and Industrial Structure ..................................................................................................... 17 Energy Supply and Price ..................................................................................................................... 17 Energy Consumption and Environmental Impact .............................................................................. 18 Energy and Emissions Targets ............................................................................................................ 18 Boiler Characteristics in Ningbo ......................................................................................................... 19 Local Policies ...................................................................................................................................... 20 Xi’an ............................................................................................................................................ 20 Economic and Industrial Structure ..................................................................................................... 20 Energy Supply ..................................................................................................................................... 20 Energy Consumption and Environmental Impact .............................................................................. 21 Energy and Emissions Targets ............................................................................................................ 21 Boiler Characteristics in Xi’an ............................................................................................................. 22 Local Policies ...................................................................................................................................... 22 i 6. Techno-Economic Assessment of Alternatives to Improving Energy Efficiency and Fuel Switching of Coal-Fired Boilers ............................................................................................. 24 Option 1: Fuel switching by replacing coal-fired boilers with boilers fueled by natural gas, biomass, oil, and electricity ........................................................................................................................ 25 Investment Costs of Industrial Boilers ............................................................................................... 25 Operational Costs of Consuming Different Boiler Fuels ..................................................................... 27 Cost Comparison of Using Different Boiler Fuels ............................................................................... 28 Environmental Impacts of Using Different Boiler Fuels ..................................................................... 30 Prices of Coal vs. Natural Gas ............................................................................................................. 31 Option 2: Retrofitting existing boilers to improve energy efficiency ............................................... 32 Thermal Efficiency Specifications for Industrial Boilers ..................................................................... 32 Thermal Performance Testing of Industrial Boilers ........................................................................... 33 Efficiency Retrofit Measures for Industrial Boilers ............................................................................ 35 Option 3: Eliminate scattered boilers and build a community-scale system to serve the aggregated demand ....................................................................................................................................... 38 7. Barriers to Adoption of Energy Efficiency, Fuel Switching, CHP, and Distributed Energy for Industrial Boilers
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