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6. Biomass Fuel Cycle

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6. Biomass Fuel Cycle VTT PUBLICATIONS 381 ExternE National Implementation Finland KimPingoudl, Helena Malkkil*,Margareta Wihersaarifl, Mikko Hongisto2**,Sari Siitonen3,Antti Lehtilal, MattiJohansson4, Pekka Pirilal &Tomas 0tterstrom3 VTT Energyl Imatran Voima Oy2 Ekono Energy Ltd3 Finnish Environment lnstitute4 VTT Chemical Technology from January 1997- VTT Chemical Technology from August 1998”” EUR 18278 WIT TECHNICAL RESEARCH CENTRE OF FINLAND ESPOO 1999 ISBN 951–38–5368–3(softbackcd.) ISSN 1235-0621 (softbackcd.) ISBN951–38–5369–l (URL:http://www.inf.vtt.ftipdfl) ISSN 1455-0849 (URL:http://www.inf.vtt.ftipdf/) Copyright@ Vahion teknillinentutkimuskeskus(VTT) 1999 JULKAISIJA- UTGIVARE- PUBLISHER Valtionteknillinentutkimuskeskus(VIT), Vuorimiehentie5, PL 2000,02044 VTT pub. vaihde(09)4561, fax (09)4564374 Statenstekniskaforskningscentral(V’IT),Bergsmansvagen5, PB 2000,02044 V’IT tel. Wxel (09)4561, fax (09)4564374 TechnicalResearchCentreofFinland(V’lT),Vuorimiehentie5, P.O.Box2000,FIN-02044VIT, Finland phone intemat.+ 35894561, fax+ 35894564374 V1’TEnergia,Energiaj%jestelmat,Tekniikantie4 C, PL 1606,02044 VIT pub. vaihde(09) 4561, faksi(09)4566538 VTT Energi,Energisystem,Teknikvagen4 C, PB 1606,02044 VIT tel. viixel(09)4561, fax (09)4566538 VTTEnergy,EnergySystems,Tekniikantie4 C, P.O.Box 1606,FIN-02044 VIT, Finland phoneintemat.+ 35894561, fax+ 35894566538 Technical editing Kerttu Tirronen Oy Edita Ab, Espoo 1999 DISCLAIMER Portions of this document may be illegible in electronic image products. Images are produced from the best avaiiable original document. Pingoud, Kim, MWcki, Helena, Wihersaari, Margareta, Hongisto, Mikko, Siitonen Sari, Lehtila, Antti, Johansson,Matti, Pirila Pekka & OtterstromTomas. Espoo 1999.TechnicalResearch Centre of Finland, V’TT Publications381.119 p.+ app. 131p. Keywords globalwarming,ExternE,ener=~,powergeneration,coal,peat,biomass,combustion, fiel cycles, environmentalimpacts Abstract ExternE National Implementation is a continuation of the ExternE Project, funded in part by the European Commission’s Joule III Programme. This study is the result of the ExternE National Implementation Project for Finland. Three fuel cycles were selected for the Finnish study coal, peat and wood-derived biomass, which together are responsible for about 40% of total electricity generation in Finland and about 75% of the non-nuclear fuel based generation. The estimated external costs or darnages were dominated by the global warming (GW) impacts in the coal and peat fiel cycles, but knowledge of the true GW impacts is still uncertain. From among other impacts that were valued in monetary terms the human health damages due to airborne emissions dominated in all the three fuel cycles. Monetary valuation for ecosystem impacts is not possible using the ExternE methodology at present. The Meri-Pori power station representing the coal fiel cycle is one of the world’s cleanest and most efficient coal-fired power plants with a condensing turbine. The coal is imported mainly from Poland. The estimated health darnages were about 4 mECU/klVh, crop damages an order of magnitude lower and damages caused to building materials two orders of magnitude lower. The power stations of the peat and biomass fuel cycles are of CHP type, generating electricity and heat for the dktrict heating systems of two cities. Their fuels are of domestic origin. The estimated health damages allocated to electricity generation were about 5 and 6 mECU/kWh, respectively. The estimates were case-specific and thus an generalisation of the results to the whole electricity generation in Finland is unrealistic. Despite the uncertainties and limitations of the methodology, it is a promising tool in the comparison of similar kinds of fuel cycles, new power plants and pollution abatement technologies and different plant locations with each other. Foreword There is a growing awareness that decision making related to fuel and technology choice for power generation should take into account all the costs, both internal and external. This is reflected in a large number of EU documents. For instance, the European Commission’s Green Paper “For a European Union Energy Policy” states that the internalisation of external costs is central to energy and environmental policy. Hence, an EU wide common approach to the quantification of these externalities as well as a common understanding of their interpretation for policy and decision making is an important prerequisite for this internalisation. The first important step to this purpose was made by the EC between 1991 and 1995 with the development of a methodology to evaluate the externalities associated with power generation. The ExtemE Project, launched within the JOULE I RTD Programme, produced a consistent “bottom-up” accounting framework demonstrated it for the most important fuel cycles. It has since then been widely recognised as the most developed methodology to account externalities of power generation. The next step was to develop an adequate set of external cost data for different fuel cycles, technologies and countries, as well as to build up expertise in all the member states to assist policy and decision makers in the use of these results. Therefore, within JOULE III the ExtemE National Implementation Project was organised. During 1996 and 1997 research teams within all member states of the EU (except Luxembourg) and Norway implemented the ExtemE accounting framework to a large number of individual fuel cycles for power generation. Parallel to this project, the methodology was further developed and updated and this was integrated within these data. Thus for the first time, a broad set of comparable data on external costs of power generation is now available. These data take account of site, technology and fuel cycle specificity and this set of data provide a representative overview for electricity generation in the EU. In addition, first estimates for the power generation sector as a whole have been developed. This publication by VTT Energy reports in detail the national implementation in Finland. Similar reports have been produced for all countries involved and they all follow the same structure, both to clearly indicate consistency between the different country reports as to ease comparison. These national publications are complemented with publications by the EC on methodology and a summary overview of results for all countries. The results for the different countries show the importance of technology, fuel and site specificity. This confirms that the approach taken by the EC is the correct one and that the big effort to develop a ‘bottom-up’ methodology and generate a broad set of data is well justified. Energy and environmental policy will only be really efficient and successful if it takes this specificity into account. The project integrates existing scientific information from different areas and disciplines in a ● coherent framework. This work could only be successful thanks to the support of the JOULE 4 Energy RTD program of the EC, to the collaboration of the different research teams in all the countries and to the inputs from a large number of different research programmed both at the EU and national level, and also to the institutes and national public authorities that co- financed this exercise for their contributions to this important work. The EC JOULE III programme continues to support a further development of the ExternE Project. For the next two years, it will focus on the application of energy use in transport and in this context the ExternE methodology will continue to integrate new scientific developments in the different areas. The final step towards internalisation relates to the use of the data in policy and decision making. Over the years we have noted a growing interest from research, policy and industry for our results at national and international level. The EC services have now started to feed the ExtemE numbers into the policy preparation process for energy, environmental and research policies and the EC-strategy to combat acidification and climate change have profited from this research. This illustrates that notwithstanding all the caveats, these numbers are useful and credible if presented and used in the right context. It is this new series of data for all countries — supported by the expertise in the country to further develop and exploit these data — that may result in multiple uses of these data for policy and decision making at the level of a country or a region and for both public authorities and the industries. In the end, the real benefit of this research agenda is to be measured by its contribution towards a more sustainable energy use. Foreword of the Finnish team VTT Energy was the main contractor of the ExternE National Implementation (III) in Finland. The work was financed by the European Commission in the framework of the Joule III Programme, by the SIHTI II programme of Technology Development Centre Finland (TEKES) and Technical Research Centre of Finland (VTT) itself. Pekka Pirila was the project leader and Kim Pingoud the practical coordinator of the project. Kim Pingoud was also responsible for most of the calculations and for the writing of this report. The technical data of the whole coal fuel cycle were supplied by Ekono Energy Ltd- Tomas Otterstrom was the leader of this subproject, the work being performed by Sari Siitonen at Ekono Energy. Kim Pingoud and Sari Siitonen were responsible for the analysis of the coal fiel cycle, Helena Miilkki for the peat fuel cycle, Margareta
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