Conversion of Studstrup Power Plant unit 3 to wood pellet-firing

Ea Energy Analyses has assisted AffaldVarme Aarhus (AVA) in analysing the future CHP supply from Studstrup Power Plant in Aarhus (Jutland). There is a need for a new agreement on heat supply from Studstrup Power Plant from the end of 2014, and DONG Energy wishes to convert one of the units to wood pellet-firing. Against this backdrop, the economic and environmental consequences of converting Studstrup Power Plant have been investigated and compared to alternative scenarios.

Studstrup Power Plant’s market situation in the future electricity and district heating market has been examined in detail. In addition, the consequences of AffaldVarme Aarhus building their own biomass-fired CHP plant have also been investigated.

 

Considerable savings

Calculations have been made with the electricity and CHP model Balmorel and show that the conversion of Studstrup Power Plant would result in considerable economic savings for the CHP system in Aarhus compared to maintaining coal firing at Studstrup Power Plant.  Recommendations  as to how the savings should be divided between the electricity and heat production have not been made. These savings may be further increased if a biomass-fired CHP plant is established. The economic differences mainly consist of:

 

• Higher fuel costs
• Lower indirect taxes
• Lower CO2 costs

 

A number of sensitivity analyses have been made and they indicate that particularly the wood pellet price, the coal price and the CO2 price are decisive for the overall profit. A very important prerequisite for AVA is therefore a fair and transparent pricing of wood pellets.

Considerable reduction in CO2 emissions

The CO2 emissions from heat production in Aarhus may be reduced considerably by converting the Studstrup Power Plant as the emission from heat production would decrease from approx. 360,000 tonnes to approx. 23,000 tonnes. The conversion of Studstrup Power Plant may therefore contribute considerably to AVA’s objective of CO2 neutral district heating production in 2030.

 

 

Last update 15-Sep-2011