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Increasing the use of wood fuel in a pulp and paper mill: investment opportunity and external costs
Linköping University, Department of Management and Engineering, Energy Systems. Linköping University, The Institute of Technology.
Linköping University, Department of Management and Engineering, Energy Systems. Linköping University, The Institute of Technology.
2002 (English)In: Proceedings of the 10th Biennal Bioenergy Conference, 2002, p. 174-Conference paper, Published paper (Refereed)
Abstract [en]

Wood fuel is a by-product produced in large quantities in the pulp and paper industry. It is a relatively cheap energy carrier that can be used to satisfy the internal demand for heat and electricity. Furthermore, it can replace the use of fossil fuels and thereby reduce emissions of CO2 and the related external costs. The aim of this study is to analyze the economics of using more wood fuel for energy purposes, as well as the economics of using wood fiber sludge as a fuel instead of delivering it to landfills. A pulp and paper mill in Sweden is analyzed and the study focuses on providing a demand for heat and electricity. An energy system model based on mixed integer linear programming is used to perform the study. The analysis illustrates the investment opportunity of a new boiler fuelled with bark and sludge. A business economic approach is compared with a socio-economic approach, in which some external costs are considered. The result of the comparison is that the investment opportunity for a wood fuel-boiler is greater when the external cost of production is considered. Furthermore, the amount of emissions associated with the energy conversion and related external costs is estimated for the different cases.

Place, publisher, year, edition, pages
2002. p. 174-
Keyword [en]
optimization, industrial energy system, pulp and paper, investment, external costs, bioenergy
National Category
Engineering and Technology
Identifiers
URN: urn:nbn:se:liu:diva-39956Local ID: 51862OAI: oai:DiVA.org:liu-39956DiVA, id: diva2:260805
Conference
10th Biennal Bioenergy Conference, Boise, Idaho USA, 22-26 September
Available from: 2009-10-10 Created: 2009-10-10 Last updated: 2013-02-11
In thesis
1. Analysing strategic energy-related investments in process industries: applied studies at a pulp and board mill
Open this publication in new window or tab >>Analysing strategic energy-related investments in process industries: applied studies at a pulp and board mill
2002 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The potential to reduce energy demand in industrial applications is often substantiaL Since energy cost represents a considerable share of the value added in several categories of process industries, a great potential exists for cutting costs through investment, for instance in energy efficiency improvements. However, industrial energy systems form complex relations not only within the industrial unit, but also in the interaction with their surroundings. Consequently, issues such as energy prices and governmental regulations influence the systems to varying extents. At the moment environmental issues, as manifested in the Kyoto agreement, and the new common European electricity market are in focus and are likely to influence the different boundary conditions that face European industries. Therefore, when major investments are to take place, changes in such boundary conditions need to be considered.

Analysing potential investments in industrial energy systems require advanced methods that manage these complex relations and interactions and concurrently consider technical, economic and environmental issues. The purpose of the thesis is to develop and co-ordinate such methods and apply them to investments in an existing process industry. A method based on optimisation is used as the main tool for analysis. Other methods are applied as complements, for example to manage different aggregation levels and to facilitate sensitivity analyses.

A pulp and board mill in central Sweden is used as a case study, where investments and changes in the utility systems and the main processes are analysed. These investments are subject to changes in boundary conditions and other mill-specific changes, showing both potentially interesting investments, and also the extensive influence of different boundary conditions. It is also shown that the methods used are appropriate for the purpose at hand.

Place, publisher, year, edition, pages
Linköping: Linköpings universitet, 2002. p. 96
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 791
Keyword
MIND, Industrial energy systems, Investment, pulp and paper
National Category
Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-39957 (URN)51863 (Local ID)91-7373-476-4 (ISBN)51863 (Archive number)51863 (OAI)
Public defence
2002-12-11, Planck's hörsal, Fysikhuset, Linköpings Universitet, Linköping, 10:15 (Swedish)
Opponent
Available from: 2009-10-10 Created: 2009-10-10 Last updated: 2013-02-11

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