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Systemic Constraints and Drivers for Production of Forest-Derived Transport Biofuels in Sweden Part B: Case Studies

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Systemic Constraints and Drivers for Production of Forest-Derived Transport Biofuels in Sweden Part B: Case Studies REPORT f3 2016:09B SYSTEMIC CONSTRAINTS AND DRIVERS FOR PRODUCTION OF FOREST-DERIVED TRANSPORT BIOFUELS IN SWEDEN PART B: CASE STUDIES Report from a project within the collaborative research program Renewable transportation fuels and systems September 2016 Authors: Philip Peck1, Stefan Grönkvist2, Julia Hansson3, Tomas Lönnqvist2, and Yuliya Voytenko1. 1 IIIEE, The International Institute for Industrial Environmental Economics, Lund University 2 KTH Royal Institute of Technology 3 IVL Swedish Environmental Research Institute SYSTEMIC CONSTRAINTS AND DRIVERS FOR PRODUCTION OF FOREST-DERIVED TRANSPORT BIOFUELS IN SWEDEN – PART B: CASE STUDIES f3 2016:09B ii SYSTEMIC CONSTRAINTS AND DRIVERS FOR PRODUCTION OF FOREST-DERIVED TRANSPORT BIOFUELS IN SWEDEN – PART B: CASE STUDIES PREFACE This project is financed and carried out within the f3 and Swedish Energy Agency collaborative research program Renewable transportation fuels and systems (Förnybara drivmedel och system). f3 Swedish Knowledge Centre for Renewable Transportation Fuels is a networking organization which focuses on development of environmentally, economically and socially sustainable renewable fuels, and Provides a broad, scientifically based and trustworthy source of knowledge for industry, governments and public authorities Carries through system oriented research related to the entire renewable fuels value chain Acts as national platform stimulating interaction nationally and internationally. f3 partners include Sweden’s most active universities and research institutes within the field, as well as a broad range of industry companies with high relevance. f3 has no political agenda and does not conduct lobbying activities for specific fuels or systems, nor for the f3 partners’ respective areas of interest. The f3 centre is financed jointly by the centre partners and the region of Västra Götaland. f3 also receives funding from Vinnova (Sweden’s innovation agency) as a Swedish advocacy platform towards Horizon 2020. Chalmers Industriteknik (CIT) functions as the host of the f3 organization (see www.f3centre.se). Partners engaged in this project are IIIEE at Lund University, KTH Energy Processes, and IVL Swedish Environmental Research Institute. The project results are presented in a report in two parts, A and B. This document, Part B, contains the following items: Case studies for a range of advanced biofuel projects in Sweden studied within the project Systemic constraints and drivers for production of forest-derived transport biofuels in Sweden [in Swedish: Analys av systembarriärer för produktion av skogsbaserade drivmedel]. Case study analysis tables – i.e. analysis tables filled with data drawn from the case studies. These materials have been utilised as the foundation for the Summary Analysis presented in Part A of the report. For an executive summary of the project, see Part A: Report. The case studies and the key informants involved are summarised in the table below. f3 2016:09B iii SYSTEMIC CONSTRAINTS AND DRIVERS FOR PRODUCTION OF FOREST-DERIVED TRANSPORT BIOFUELS IN SWEDEN – PART B: CASE STUDIES Table A. List of case studies, informants and input to study. Case Study Name, role Organization Input to study GoBiGas Lars Holmquist, Business Strategic Planner; Göteborg Energi Case study interview: Ingemar Gunnarsson, Development GoBiGas; Engineer; Written input to webinar Eric Zinn, Biogas Products Coordinator Biorefinery Göran Eriksson, Former President Sekab Case study interview: Norrtorp Biorefinery Norrtorp VärmlandsMetanol Björn Gillberg, President VärmlandsMetanol Case study interview: VärmlandsMetanol Chemrec/Domsjö Jonas Rudberg, former CEO Chemrec; Chemrec Case study interviews: Fabriker Max Jönsson CEO Chemrec plans at Domsjö Fabriker E.ON Björn Fredriksson Möller, Project Manager E.ON Case study interviews Bio2G LTU Green fuels Ingvar Landälv, Project Manager (former Luleå University of Case study interview LTU VP Technology at Chemrec) Technology Green fuels Preem Sören Eriksson, Product Developer; Åsa In person, Case study interview: Håkansson, Business Developer 2015-12-10 Preem RenFuel Sven Löchen, CEO RenFuel AB Case study interview: Renfuel SunPine/Södra Gustav Tibblin (Chairman of the Board of Södra Case study interview: SunPine) SunPine Portion B of the full report should be cited as: Philip Peck, Grönkvist, S., Hansson, J., Lönnqvist, T. and Voytenko, Y. (2016) Systemic constraints and drivers for production of forest-derived transport biofuels in Sweden – Part B: Case Studies. Report No 2016:09B, f3 The Swedish Knowledge Centre for Renewable Transportation Fuels, Sweden – available at www.f3centre.se. It constitutes an important support document to Part A (Peck, P. et al. (2016) Systemic constraints and drivers for production of forest-derived transport biofuels in Sweden – Part A: Report. Report No 2016:09A. Both documents are available at www.f3centre.se. f3 2016:09B iv SYSTEMIC CONSTRAINTS AND DRIVERS FOR PRODUCTION OF FOREST-DERIVED TRANSPORT BIOFUELS IN SWEDEN – PART B: CASE STUDIES CONTENTS 1 DETAIL CASE STUDIES .......................................................................................................... 6 1.1 CHEMREC AND DOMSJÖ FABRIKER, ÖRNSKÖLDSVIK .................................................................. 6 1.2 LTU GREEN FUELS ................................................................................................................... 8 1.3 BIOREFINERY NORRTORP ........................................................................................................ 10 1.4 VÄRMLANDSMETANOL............................................................................................................ 15 1.5 GOBIGAS .............................................................................................................................. 17 1.6 BIO2G .................................................................................................................................. 22 1.7 RENFUEL ............................................................................................................................... 40 1.8 SUNPINE ............................................................................................................................... 42 1.9 PREEM .................................................................................................................................. 44 2 CASE STUDY ANALYSIS TABLES ....................................................................................... 52 2.1 LTU GREEN FUELS AND CHEMREC AND DOMSJÖ FABRIKER, ÖRNSKÖLDSVIK...................... 52 2.2 BIOREFINERY NORRTORP AND VÄRMLANDSMETANOL ............................................................... 59 2.3 GOBIGAS .............................................................................................................................. 64 2.4 BIO2G .................................................................................................................................. 70 2.5 RENFUEL ............................................................................................................................... 78 2.6 SUNPINE ............................................................................................................................... 86 2.7 PREEM .................................................................................................................................. 91 3 REFERENCES/FOOTNOTES ............................................................................................... 101 4 APPENDIX: RESEARCH INTERACTIONS/INFORMANTS ................................................. 109 f3 2016:09B v SYSTEMIC CONSTRAINTS AND DRIVERS FOR PRODUCTION OF FOREST-DERIVED TRANSPORT BIOFUELS IN SWEDEN – PART B: CASE STUDIES 1 DETAIL CASE STUDIES This section contains each case study in full. The phenomena described in each of these cases are then placed within the theory framework(s) in the next section of this document. 1.1 CHEMREC AND DOMSJÖ FABRIKER, ÖRNSKÖLDSVIK Unless indicated/cited otherwise, the following section is based on an interview with Jonas Rudberg, Porcupine AB, CEO at Chemrec 2000-2008 (performed in September, 2015). 1.1.1 The technology system and localisation This case study concerns the biofuels production project via gasification from sulphite liquor also called thick liquor at a full-scale (220 MW feedstock, 100 MW product) facility in Örnsköldsvik in connection to Domsjö Fabriker, based on the technology from Chemrec AB. Gasifier scale up is about 35 times the capacity of the LTU Green Fuels pilot plant in Piteå. The Domsjö plant was to have three gasifier trains each having a capacity of 50% of the thick liquor capacity meaning that the gasification plant would have 50% spare capacity. The planned production capacity corre- sponded to approximately 0.8 TWh/year in the form of 100 000 tonnes per year of DME or 140 000 tonnes methanol per year (Landälv, 2012, personal communication). Thick liquor gasification is performed in an entrained flow gasifier at a relatively high temperature for biomass gasification (1000 – 1100°C), providing a synthesis gas (syngas) for further processing to a fuel. The reason for the plans to locate the facility at Domsjö Fabriker in Örnsköldsvik was largely due to the network of established contacts. When Chemrec searched for a suitable location of a full- scale facility, the network had good contacts with the owners of Domsjö Fabriker. Domsjö was also experienced in wood chemistry and open-minded for
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