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1 Deploying large-scale polygeneration in industry “D-ploy” Grant Agreement EIE/06/014/SI2.444058 Project duration: November 2006 – December 2008.

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Presentation on theme: "1 Deploying large-scale polygeneration in industry “D-ploy” Grant Agreement EIE/06/014/SI2.444058 Project duration: November 2006 – December 2008."— Presentation transcript:

1 1 Deploying large-scale polygeneration in industry “D-ploy” Grant Agreement EIE/06/014/SI Project duration: November 2006 – December 2008

2 Project Summary The objectives of this project was to identify barriers to the realisation of the techno-economic potential for polygeneration in 4 sectors (food, pulp and paper, refineries and chemical sectors). The D-ploy project determines whether the dearth of new projects is due to 1/ lack of technical potential; 2/ poor project economics; 3/ adverse financial appraisal; or 4/ policy barriers 2

3 3 WP2: Heat Loads & Polygeneration Applications In this WP the following questions were addressed: Where is there a substantial demand for heat in industrial processes in Europe? Which technological solutions have been selected in the past and are being considered in new schemes? What are the applications for large-scale polygeneration currently found in industry? Is polygeneration considered an appropriate and competitive option for industry? WP 3: Polygeneration and the Internal Energy Market This WP reviewed the impact of opening up the markets for Electricity and gas on the wider use of industrial polygeneration. An analysis of EU law and national implementation measures, as well as a discussion on Community policy on state aid and possible impacts on industrial Polygeneration, has been conducted.

4 WP5: Polygeneration and the EU ETS 4 This WP aimed at understanding the key parameters of industrial polygeneration projects from an industrial company standpoint. It focused on financial evaluation methodologies, risk management options, innovative financial approaches/instruments and investment decisions for large polygeneration projects. WP4: Economic and Financial Appraisal This WP included a review of the treatment of cogeneration in Phase I and II of the EU ETS, by taking a look at the allocation methodologies used and a outlook on Phase III. Best practices among Member States were identified and recommendations for policy makers were formulated.

5 Detailed map of heat loads in the EU estimating the energy and CO2 saving potential Overview of EU and national legislation affecting cogeneration, overview of financial challenges to industrial polygeneration Analysis of Phase I and II, and outlook on Phase III of the EU ETS If heat loads are combined the CHP potential can be optimized Main risks perceived by CHP industry are variations in the client’s industrial process and variations in the legislative framework of the country The economic and technical potential of polygeneration cannot be fully exploited because of unfavorable framework conditions Phase III of the EU ETS, especially the proposed method of allocation – auctioning – will harm the competitive position of cogeneration vis-à-vis industrial boilers. 5 Lessons learnt Achieved Results

6 6 Partners & Contacts Co-ordinator contact details: Thomas BOUQUET COGEN Europe 98, Gulledelle, B-1200, Belgium Tel: Fax: List of D-ploy Partners: COGEN Europe (www.cogeneurope.eu), Belgiumwww.cogeneurope.eu AESA (www.aesa.es), Spainwww.aesa.es ECNetwork (www.ecnet.dk), Denmarkwww.ecnet.dk British Sugar (www.britishsugar.co.uk), United Kingdomwww.britishsugar.co.uk Elyo/Suez Energy Services(www.elyo.com), Francewww.elyo.com Electrabel (www.electrabel.com), Belgiumwww.electrabel.com OMV Cogeneration (www.omv.com), Austriawww.omv.com Solvay (www.solvay.com), Belgiumwww.solvay.com For more information, visit the D-ploy project website:


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