Abating CO 2 in Energy Intensive Industries Katharina Grave - - PowerPoint PPT Presentation

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Abating CO 2 in Energy Intensive Industries Katharina Grave - - PowerPoint PPT Presentation

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Abating CO 2 in Energy Intensive Industries Katharina Grave Institute of Energy Economics Cologne, Germany Agenda 1. Aim 2. Theoretical Approach 3. Quantifying Abatement Potentials 3. Quantifying Abatement Potentials 4. Implementation 5.

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SLIDE 1

Abating CO2 in Energy Intensive Industries

Katharina Grave Institute of Energy Economics Cologne, Germany

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SLIDE 2

Agenda

  • 1. Aim
  • 2. Theoretical Approach
  • 3. Quantifying Abatement Potentials
  • 3. Quantifying Abatement Potentials
  • 4. Implementation
  • 5. First Results
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SLIDE 3

Aim

Analyse the structure of the “other half“

  • f the emissions covered by the

European Emission Trading System and quantify CO -abatement potentials quantify CO2-abatement potentials

  • utside the energy sector
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1

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SLIDE 4

Theoretical Approach: Analysing CITL

Combustion [1] Refineries [2] Iron & Steel [3;4;5] Cement [6] Glass [7] Ceramics [8] Pulp & Paper [9]

The main category: Combustion

Verified Emissions 2009

Pulp & Paper [9] Other [99]

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2

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SLIDE 5

Theoretical Approach: Analysing CITL

Combustion [1] Refineries [2] Iron & Steel [3;4;5] Cement [6] Glass [7] Ceramics [8] Pulp & Paper [9]

main industrial emitters: iron and steel, cement, and refining

Verified Emissions 2009

Pulp & Paper [9] Other [99]

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  • 2
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SLIDE 6

Theoretical Approach: Analysing CITL

Combustion [1] Refineries [2] Iron & Steel [3;4;5] Cement [6] Glass [7] Ceramics [8] Pulp & Paper [9]

main industrial emitters: iron and steel, cement, and refining

Verified Emissions 2009

Pulp & Paper [9] Other [99]

Problem: Combustion is also a main process in the industrial sector

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2

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SLIDE 7

Theoretical Approach: Analysing CITL

Combustion [1] Refineries [2] Iron & Steel [3;4;5] Cement [6] Glass [7] Ceramics [8] Pulp & Paper [9]

Verified Emissions 2009

Pulp & Paper [9] Other [99]

What part of it belongs to the industrial sector?

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2

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SLIDE 8

Theoretical Approach: Analysing CITL

Combustion Cogeneration/Heat Industrial Combustion Refineries [2] Iron & Steel [3;4;5] Cement [6]

Trotignon/Delsbosc: 15% is emitted in cogeneration plants

Cement [6] Glass [7] Ceramics [8] Pulp & Paper [9] Other [99]

10% are industrial emissions

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2

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SLIDE 9

Quantifying Abatement Potentials: Collecting Data

  • Industrial studies

(specific and general)

  • Institutes
  • Institutes
  • Stakeholder-Interviews
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1) Specific abatement

  • Electric arc furnaces instead of integrated steel mills
  • Clinker substitution

Quantifying Abatement Potentials: Classification

2) Fuel-switching 3) Carbon capture and storage (CCS) 4) Carbon leakage

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SLIDE 11
  • Production (covered by ETS)
  • Average emissions per tonne
  • Process emissions
  • emissions from combustion

Quantifying Abatement Potentials: Variables

  • emissions from combustion
  • Electricity demand
  • Costs of abatement per tonne
  • Exogenous limits of applicability
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SLIDE 12
  • Production (covered by ETS)
  • Average emissions per tonne
  • Process emissions
  • Emissions from combustion

For each state +

Quantifying Abatement Potentials: Variables

  • Emissions from combustion
  • Electricity demand
  • Costs of abatement per tonne
  • Exogenous limits of applicability

+ For each industry

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SLIDE 13

Clinker Production Costs

25 30 35 40 45 st (€/t) Depreciation Maintenance

Example: Cement

5 10 15 20 AT BG CZ DK- W FI DE HU IT LT MLT PL RO SI SE NO State Cost G&A Elektricity Combustibles Labour Raw material

Electricity: 60 kWh/t Heat: 3.4 – 4 GJ/t

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Example: Cement

Process-Emissions: 0.525 tCO2/t clinker Process-Emissions: 0.525 tCO2/t clinker Combustion Emissions: 0.33 tCO2/t clinker

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SLIDE 15

Merit Order of Abatement

40 50 60

(in €)

10 20 30 1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 103 109 115 121 127 133 139 145 151 157 163 169 175 181 187 193 199 205 211 217 223 229 235 241 247 253 259 265 271 277 283 289 295 301 307 313 319

Cost (in Abatement Potential

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SLIDE 16

40 50 60

(in €)

Merit Order of Abatement

10 20 30 1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 103 109 115 121 127 133 139 145 151 157 163 169 175 181 187 193 199 205 211 217 223 229 235 241 247 253 259 265 271 277 283 289 295 301 307 313 319

Cost (in Abatement Potential

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SLIDE 17

40 50 60

ts (in €)

Merit Order of Abatement

10 20 30 1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 103 109 115 121 127 133 139 145 151 157 163 169 175 181 187 193 199 205 211 217 223 229 235 241 247 253 259 265 271 277 283 289 295 301 307 313 319

Abatement Potential (in t)

Carbon leakage Germany Carbon Leakage Spain

Costs

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SLIDE 18

Implementation

DIME

  • Linear optimisation model
  • Calculation to 2050
  • Aim:

Minimisation of the total costs of

  • Aim:

Minimisation of the total costs of electricity generation

  • constraint:

Limited emission of CO2

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SLIDE 19

Implementation

Objective function: C[…] min C[…] min New constraint: Σ Ee(y) = B(y) + Ag(y)

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Abatement: Ag(y) = Σ Ai (r,m,y)

Implementation

Limited potential: Ai max * (1+gi (r,m)^j)> Ai

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SLIDE 21

Implementation

Industrial abatement costs: ACg = Σ (Ai * Ci (r,m,y)) Additional demand for electricity: Lg (r,y,s,d,h) = l (r,y,s,d,h) + Ai * f (r,m)

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SLIDE 22

First Results

15 20 25 30 Scenario I

UA (in €)

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5 10 15 2010 2015 2020 2025 2030 Scenario I Scenario II

Price of EUA

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SLIDE 23

First Results

60000000 80000000 100000000 120000000 Scenario I

s from industrial sector

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20000000 40000000 2010 2015 2020 2025 2030 Scenario I Scenario II

Required EUAs fro

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SLIDE 24

Further Research

  • Similar costs of production
  • Missing data
  • Production covered by ETS in glass and ceramics sector
  • Production costs outside carbon constraint
  • Production costs outside carbon constraint
  • Limited application of abatement potentials
  • Estimations for carbon leakage
  • Assumptions about technical progress
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SLIDE 25

Thank you for your attention!

Katharina Grave Energiewirtschaftliches Institut an der Universität zu Köln Vogelsanger Str. 321 50827 Köln Tel.: 0221-27729-306 katharina.grave@uni-koeln.de

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SLIDE 26

Backup: Main Studies

  • McKinsey für BDI (2007): Kosten und

Potentiale der Vermeidung von Treibhausgasemissionen in Deutschland

  • IEA (2005): Industrial Competitiveness

under the European Union Emissions

  • IEA (2005): Industrial Competitiveness

under the European Union Emissions Trading Scheme

  • BREF Reports
  • Sektorenspezifische Studien
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SLIDE 27

Backup: Experts

CEPI: Marco Mensink (Energy&Environment Director) FEVE: Adeline Farrelly Cembureau: Nina Sparacio (Assistent of Claude Lorea, Technical Director) VdZ:

  • Dr. Volker Hoenig; Dr. Stefan Schäfer, Stefan Woywadt

(Energy and Production Engineering)

HVG DGG: Karlheinz Gitzhofer (Environmental Protection) FEHS:

  • Dr. Dirk Mudersbach, Anja Garbach

FEHS:

  • Dr. Dirk Mudersbach, Anja Garbach (Building Materials)

IMA/EuLA: Bert d‘Hooge (Scientific Advisor) BMU: Franzjosef Schafhausen (Director Environment and Energy) McKinsey:

  • Dr. Phillip Beckmann (research for BDI)

IEHK Aachen:

  • Dr. Stephan Geimer (CO2-topics)

Wirtschaftsvereinigung Stahl: Roderick Hömann (Energy Economics and Techical Design); Achim Beerheide (supply and logistics) VDEh:

  • Dr. Bodo Lüngen (production)

BdF: Jörg Schulze (environment and security)

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