Summary
In Sweden, over 50% of building heating requirements are covered by district heating. Approximately 8% of the heat supply to district heating systems comes from excess heat from industrial processes. Many studies indicate that there is a potential to substantially increase this share, and policies promoting energy efficiency and greenhouse gas emissions reduction provide incentives to do this. Quantifying the medium and long‐term economic and carbon footprint benefits of such investments is difficult because the background energy system against which new investments should be assessed is also expected to undergo significant change as a result of the aforementioned policies. Furthermore, in many cases, the district heating system has already invested or is planning to invest in non‐fossil heat sources such as biomass‐fueled boilers or CHP units. This paper proposes a holistic methodological framework based on energy market scenarios for assessing the long‐term carbon footprint and economic benefits of recovering excess heat from industrial processes for use in district heating systems. In many studies of industrial excess heat, it is assumed that all emissions from the process plant are allocated to the main products, and none to the excess heat. The proposed methodology makes a distinction between unavoidable excess heat and excess heat that could be avoided by increased heat recovery at the plant site, in which case it is assumed that a fraction of the plant emissions should be allocated to the exported heat. The methodology is illustrated through a case study of a chemical complex located approximately 50 km from the city of Gothenburg on the West coast of Sweden, from which substantial amounts of excess heat could be recovered and delivered to heat to the city's district heating network which aims to be completely fossil‐free by 2030.
Summary
New ambitious targets for reduced greenhouse gas emissions and increased energy efficiency in industry and in the stationary energy sector provide incentives for industrial plants to investigate opportunities for substantially increasing recovery and use of excess heat from their operations. This work investigates the economic feasibility of recovering industrial excess heat at a Swedish chemical complex site for increased site internal heat recovery or export to a regional district heating (DH) network. The work is based on investment cost data estimated in previous work by the authors. A site‐wide heat collection and distribution system based on circulating hot water was envisioned, which is also connected to a regional DH network. With the help of multiobjective optimization, the optimal heat contributions from the individual plant sites were identified that minimize the total system cost for a large range of options involving different quantities of internally recovered heat and heat export to the DH system. A payback period analysis was conducted together with a risk assessment to take into account uncertainty regarding utility steam production cost and heat sale price. The results of the study indicate that a payback period of around 3 years can be achieved for a number of cases in which 30% to 50% of the total excess heat produced by the site plants is recovered. Although it seems more profitable to recover heat at the site rather than exporting heat to the DH system only, profitability appears to be maximized by hybrid solutions that allow a share of the excess heat to be sold to the DH system and some heat to be recovered at the site simultaneously.
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