Environmental Impaccts of Fossil Fuel Electricity in Chile

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Environmental Impaccts of Fossil Fuel Electricity in Chile The University of Manchester Research Life cycle environmental impacts of electricity from fossil fuels in Chile over a ten-year period DOI: 10.1016/j.jclepro.2019.05.374 Document Version Accepted author manuscript Link to publication record in Manchester Research Explorer Citation for published version (APA): Gaete Morales, C., Gallego Schmid, A., Stamford, L., & Azapagic, A. (2019). Life cycle environmental impacts of electricity from fossil fuels in Chile over a ten-year period. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2019.05.374 Published in: Journal of Cleaner Production Citing this paper Please note that where the full-text provided on Manchester Research Explorer is the Author Accepted Manuscript or Proof version this may differ from the final Published version. If citing, it is advised that you check and use the publisher's definitive version. General rights Copyright and moral rights for the publications made accessible in the Research Explorer are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. Takedown policy If you believe that this document breaches copyright please refer to the University of Manchester’s Takedown Procedures [http://man.ac.uk/04Y6Bo] or contact [email protected] providing relevant details, so we can investigate your claim. Download date:04. Oct. 2021 Life cycle environmental impacts of electricity from fossil fuels in Chile over a ten-year period Carlos Gaete-Morales1,2, Alejandro Gallego-Schmid1,3, Laurence Stamford1 and Adisa Azapagic1* 1 Sustainable Industrial Systems, School of Chemical Engineering and Analytical Science, University of Manchester, The Mill, Sackville Street, Manchester M13 9PL, UK. 2 Department of Energy, Transportation and Environment, German Institute for Economic Research (DIW Berlin), Mohrenstraße 58, Berlin 10117, Germany. 3 Tyndall Centre for Climate Change Research, School of Mechanical, Aerospace and Civil Engineering, The University of Manchester, HG1, Pariser Building, Sackville Street, Manchester M13 9PL, UK. * Corresponding author: [email protected] ABSTRACT This study uses life cycle assessment to evaluate the environmental impacts of electricity generated from fossil fuels in Chile over a ten–year period, from 2004-2014. The focus on fossil fuels is highly relevant for Chile because around 60% of electricity currently comes from natural gas, coal and oil. The impacts are first considered at the level of individual technologies, followed by the evaluation of the fossil-fuel electricity mix over the period. The study has been carried out using detailed primary data for 94 operating plants. Considering individual technologies, coal power has the worst performance for eight out of 11 impacts, with eutrophication, freshwater and marine ecotoxicity being between ten and 240 times greater than for gas. However, oil is worse than coal for photochemical oxidants (31%) and depletion of elements and ozone layer (four and eight times, respectively). Between 2004 and 2014, the annual environmental impacts doubled, while electricity generation rose only by 55%. The only exception to this is ozone depletion which fell by around 4%. The highest impacts occurred in 2014 mainly because of the high contribution of coal power. Therefore, the environmental performance of fossil-based electricity in Chile has worsened over time due to the growing share of coal power, coupled with the increasing electricity demand. Consequently, policy should aim to increase the efficiency of power plants, avoid the use of petroleum coke, improve emissions control and replace coal and oil with gas power as soon as possible. Keywords: Climate change; power generation; coal; oil; gas; life cycle assessment. 1. INTRODUCTION Historically, the electricity in Chile was mainly supplied by hydropower (International Energy Agency, 2009). However, since the 90s, steady economic growth has led to an increase in electricity consumption, which has been growing by 7% annually (Corbo and Hurtado, 2014). Consequently, electricity demand could no longer be covered only by new hydropower installations, but had to be supplemented by coal, natural gas and oil power (International Energy Agency, 2009, 2014; Raineri, 2006). As can be seen in Figure 1, this trend has continued over the years and nowadays the majority of electricity is generated from fossil fuels (60%) (Bartos and Robertson, 2014; CNE, 2015a; Ministry of Energy of Chile, 2014a). In total, 94 power plants are in operation in Chile: 19 coal, four gas, 60 oil and 11 dual-fuel (oil and gas) installations. Their total installed capacity is 10.4 GW, comprising the following technologies (Figure 2): circulating fluidised bed (4%), pulverised coal (36%), combined cycle (32%), open cycle (20%) and diesel engine (8%). In terms of electricity generation from fossil fuels, coal contributes 69%, natural gas 24% and oil 7% (CNE, 2015a). As Chile has low reserves of fossil fuels, the majority of fuels are imported (Bartos and Robertson, 2014; Ministry of Energy of Chile, 2014a). A growing number of studies are reporting a significant potential of renewable energies (PRIEN- 1 UTFSM, 2008; Santana et al., 2014; Sims, 2011) which could gradually substitute fossil fuels. However, in the case of hydropower, which is still a significant contributor to power generation in Chile (34%), the major difficulty in continuing its development is the social opposition (Bronfman et al., 2012). Therefore, the government is implementing measures for the deployment of other renewable energy sources, such as solar, wind and geothermal (Ministry of Energy of Chile, 2013, 2014b). However, the contribution of these technologies is still low (~5%) (Ministry of Energy of Chile, 2015). Therefore, in the medium term, fossil fuels will continue to contribute significantly to the electricity generation profile of Chile. Coal Gas Oil Others Fossil fuels (%) 70 70% 60 60% 50 50% 40 40% 30 30% 20 20% Fossil fuel contribution (% ) Electricity Electricity generation (TWh) 10 10% 0 0% 1996 1997 1998 2000 2001 2002 2004 2005 2006 2008 2009 2010 2012 2013 2014 2003 2007 2011 1999 Figure 1. Electricity generation in Chile by source and contribution of fossil fuel in the period 1996-2014. [Vertical black lines denote the years chosen for the assessment in this study (2004, 2009 and 2014) (CISEN, 2016; CNE, 2015a)]. Coal Gas Oil Gas and Oil 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 Installed capacity capacity (GW) Installed 0.0 Diesel Open cycle Combined Circulating Pulverized engine cycle fluidised coal bed Figure 2. Current installed capacity in Chile by technology and fuel (CNE, 2015b). Globally, electricity has been by far the most important source of anthropogenic CO2 emissions since the 1970s (UN Intergovernmental Panel on Climate Change, 2007) contributing to climate change, and Chile is no exception (International Energy Agency, 2009). As a result of a high contribution of fossil fuels to the electricity generation, the electricity sector emitted 30% of the total national greenhouse gas (GHG) emissions in 2010, equating to 27 Mt of CO2 eq. (Ministry of Environment of Chile, 2014). This is equivalent to 2 0.09% of global GHG emissions. The Chilean government has committed to reducing GHG emissions per unit of GDP by 30% by 2030, relative to 2007 (Ministry of Environment of Chile, 2015). However, at present there is scant information on the contribution of fossil-fuel electricity to the GHG emissions on a life cycle basis, with other life cycle impacts being also largely unknown. Although two recent studies estimated life cycle impacts of electricity in Chile (Gaete-Morales et al., 2018; Vega-Coloma and Zaror, 2018), they both considered the whole electricity sector rather than focusing on the fossil-fuel sources. A similar situation is found for other countries, in which life cycle assessment studies (LCA) have been carried out for the whole sector (Garcia et al., 2014; Santoyo-Castelazo et al., 2011; Stamford and Azapagic, 2012). Therefore, this paper focuses of fossil-fuel power in Chile in an attempt to provide comprehensive information on its environmental impacts and inform policy. The impacts are estimated through LCA for each technology as well as for the fossil-fuel electricity mix. A temporal evolution of the impacts over a ten-year period (2004-2014) is also considered to determine how the impacts may have changed and why. The study relies on real data from the 94 plants currently operating in Chile. These are detailed in the next section, together with methods and assumptions used in the study. 2. METHODS The LCA study has been carried out following the ISO 14040 and ISO 14044 standards (International Organization for Standardization, 2006a, 2006b), with the goal and scope defined next, followed by the inventory data and impacts considered in this work. 2.1. Goal and scope definition The main goal of the study is to estimate the life cycle environmental impacts of fossil-fuel electricity generation in Chile in the period from 2004 to 2014. Two functional units are considered: - 1 kWh of electricity generated by coal, natural gas and oil power plants; and - annual generation of electricity from these plants over the ten-year period. As illustrated in Figure 3, the scope of the study is from ‘cradle to grave’. The following stages are included: extraction, transport and processing of fossil fuels,
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