Introduction of large-scale biofuel production in a district heating system – an opportunity for reduction of global greenhouse gas emissions

In this study, cooperation between Stockholm’s transport and district heating sectors is analysed. The cooperation concerns the integration of biofuel polygeneration production. A MODEST optimisation model framework is used, assuming various energy market and transport sector scenarios for the year 2030. The scenarios with biofuel production and increased biofuel use in the region are compared with reference scenarios where all new plants introduced into the district heating sector are combined heat and power plants, and the share of biofuel used in the transport sector is the same as today. The results show that the cooperation implies an opportunity to reduce fossil fuel consumption in the * Corresponding author. Tel. +46-13-281114; E-mail: [email protected] (D. Djuric Ilic) 2 sectors by between 20 % and 65 %, depending on energy market conditions and assumed transport sector scenarios. If we consider biomass an unlimited resource, the potential for greenhouse gas emissions reduction is significant. However, considering that biomass is a limited resource, the increase of biomass use in the district heating system may lead to a decrease of biomass use in other energy systems. The potential for reduction of global greenhouse gas emissions is thus highly dependent on the alternative use of biomass. If this alternative is used for co-firing in coal condensing power plants, biomass use in combined heat and power plants would be more desirable than biofuel production through polygeneration. On the other hand, if this alternative is used for traditional biofuel production (without co-production of heat and electricity), the benefits of biofuel production through polygeneration from a greenhouse gas emissions perspective is superior. However, if carbon capture and storage technology is applied on the biofuel polygeneration plants, the introduction of large-scale biofuel production into the district heating system would result in a reduction of global greenhouse gas emissions independent of the assumed alternative use of biomass.