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BioChain Project Workpackage 1: Value chain optimisation DTU Management Engineering June 19, 2013. Overal project relation. Output market - Energy. Output market – Fertilizer and manure treatment. Input market. Environmental impact. Logistics. Biomass analysis. Logistics. WP1.
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BioChainProjectWorkpackage 1: Value chain optimisationDTU Management EngineeringJune 19, 2013
Overalproject relation Output market -Energy Output market –Fertilizer and manure treatment Input market Environmental impact Logistics Biomass analysis Logistics
WP1 Scale effects Output markets Energy markets Certificates? Logistics Input markets Scale effects Logistics Optimisation Tool Private • Socio Economic Regulation and financing • Ownership structures • Risk handling • Market structures • Choice of primary output • Incentive regulation • Command & control • Optimal use of biomass Output markets Fertilizer and manure treatment
WP1 Value chainoptimisation and modellingActivities and present stage • 2 PhD positions within value chain modelling and analysis • 1 PhD modelling the value chain from an operational research background including methods from stochastic programming • 1 PhD modelling and analysing incentives, ownership structure and interaction with national level energy model Intensive collaboration between the 2 Phd’s on the model properties and integration between plant level and national energy system level • The positions are in the interview phase and will be filled from August 1. • Last week an initial meeting with the Norwegian partner Østfoldforsking that will contribute in the comparison of results from value chain optimisation under Danish and Norwegian conditions/cases. Research exchange and supervision is also planned. • A first optimisation model has been developed by a master student which will serve as inspiration for the value chain modelling. This work used information and data from visit at Måbjerg, Suppliers and Vinderup District Heating
Visit and sketch of BiogasChainMåbjergBioEnergy.- Three parts of the chain
- Organisation and focus of valuechain Optimisation Output markets Energy markets Input markets Output markets Fertilizer and manure treatment
Måbjerg BioEnergyand Vinderup District Heating: Optimisationcriteriavary and flexibilityon inputs conflicts with output/sales risk to Måbjerg Optimisation Input markets Output markets Energy markets Regulation and financing • Ownership structures • Risk handling • Market structures • Choice of primary output • Incentive regulation • Command & control Output markets Fertilizer and manure treatment
Risk and distribution of risk is an important element for value and incentives Riskreduction for riskaverse farmers and biogas plant More flexible inputs (technology+potentials) reducerisk to biogas plant Reducerisk to biogas plant ifprice and volumeriskcovered – riskreduction for CHP only for pricecontract Diverse distribution/usechannelsreducerisk to biogas plant Riskreduction (volume) for biogas plant • Input costs – long term contracts for supply (volume and price for manure) (including treatment service) • Input costs - flexible input mix of biomass crops/waste (volume and price) • Output biogas– long term contracts for supply to CHP/upgrading plant or gas grid (volume and/or price) • Output biogas– long term alternative option for use (access to variable volume - local heat) • Output – fertiliser (value) price will be determined by competitive alternative
Organisation and incentives Alternative organisational setup can change incentives and may reduce risks - Assumption 3 independent entities – farmers – biogas plant – CHP/heat plant • Integrated biogas plant – CHP - optimise the use of the biogas resource (fixed flow) - optimise a short term biogas storage with power prices - reduce the volume risk for biogas demand (biogas plant part) • Integrated biogas plant – suppliers/farmers - farmers and biogas plants eliminate the conflicting price incentive from the input manure price - volume risk for manure supply reduced • Integrated biogas plant, farmers + local heating plant (district or CHP) demand - reduce the price conflict between entities and reduce heat demand uncertainty - reduce uncertainty on future heating supply costs Måbjerg Bioenergy VinderupFjernvarme Måbjerg Bioenergy Leverandør-foreningen Måbjerg Bioenergy Leverandør-foreningen VinderupFjernvarme
Scaleeffects – economies of scale • Collection costs and density of resources • trade off between distance and size of resource • Scale of biogas plant • Scale and costs of biogas storage • Scale of upgrading facility and costs
Scaleeffectsfor biogas plant– possibletradeoff Excess supply of biogas locally/demand risk Expected “flaring” costs Costs Average production costs Scale of biogas plant
Biogas plant modelled costs and constraints • Investments • Funktion af mængde • Type(meso/termofilt) • HRT(hydraulic retention time) • Varmeforbruget • Varmetab, varmegenanvendelse • Biogasproduktion antaget konstant • Høj investerings omkostning - lavt varmeforbrug, Lav investeringsomkostning – højt varmeforbrug • Operational costs • Varme • Elektricitet • Løn • Vedligeholdelse • Administration • Biogasmotor(Inputmængde) • Dække varmebehov • Forbedre egen økonomi