Energy Management: 2013/2014 Industrial Energy Use SGCIE and Primary Energy Evaluation Methods Class # 6 Prof. Tânia Sousa

Cement, ceramics, glass, lime Aluminium, copper, nickel Plastics and fertilizers GEA, 2012 Final Energy Use in Industry in 2005

World Industrial final energy use in 2005 is 115EJ The bulk of industrial energy use is due to the production of a small number of energy intensive commodities: –Chemicals and petrochemicals and the iron and steel sector account for approximately half of all industrial energy used worldwide. Other sectors that account for a significant share of industrial energy use: – non-ferrous metals, non-metallic minerals and the pulp and paper sector. Cement, ceramics, glass, lime Aluminium, copper, nickel Plastics and fertilizers GEA, 2012

Final Energy Use in Industry in 2005 The bulk of industrial energy use is in developing economies (80% pop.)

World production of key materials Higher growth rates from the 90 and then from the 2000 onwards

World production of key materials Higher growth rates from the 90 and then from the 2000 onwards Heterogeneous growth

World Production of key materials Growth rates between –Per-capita demand for materials increases with income and economic development and then stabilizes

World Production of key materials Growth rates between –Per-capita demand for materials increases with income and economic development and then stabilizes (exceptions: paper and aluminium) China is atypical

World Production of key materials Growth rates between –Per-capita demand for materials increases with income and economic development and then stabilizes (exceptions: paper and aluminium)

Industrial Energy Intensity Industrial energy intensity - energy use per unit of production or VA (UNIDO, 2010): –It differs between different products and sectors –And for the same products/sector?

Industrial Energy Intensity Industrial energy intensity - energy use per unit of production or VA (UNIDO, 2010): –It differs between different products and sectors –It changes in time due to technological inovations

Industrial Energy Intensity Industrial energy intensity - energy use per unit of production or VA (UNIDO, 2010): –It differs between different products and sectors –It changes in time due to technological inovations

Industrial energy intensity - energy use per unit of production or VA (UNIDO, 2010): –It differs between countries for similar products Industrial Energy Intensity

Industrial energy intensity - energy use per unit of production or VA (UNIDO, 2010): –It differs between countries for similar products WHY? Industrial Energy Intensity

Industrial energy intensity - energy use per unit of production or VA (UNIDO, 2010): –It differs between countries for similar products Access to resources (steel from steel recycling is 8 GJ/ton while from iron ore is 20.6 GJ/ton) Energy Prices Plant size and age of capital stock Capital cost (more efficient capital is also more expensive - interest rates) Awareness of energy efficiency measures and opportunity cost Government policies

Energy Benchmark Curve Management tool to compare similar plants in energy use and energy efficiency (improvment potential) more efficient Energy efficiency index Specific energy consumption

Benchmarking Industrial Energy Use

Average 10-20% or 30-35% improvment potential –Lower than for other energy uses (e.g. in buildings is close to 50%)

World Sankey Diagram in 2005 IAASA – Global Energy Assessment 2012

Industrial Energy Intensity Industrial energy intensity (energy use per unit of VA): –Depends on what?

Industrial Energy Intensity Industrial energy intensity (energy use per unit of VA): –Efficiency –Sectoral Structure

Industrial energy intensity (energy use per unit of VA): –Efficiency –Sectoral Structure Industrial Energy Intensity

Energy Use in Industry

SGCIE (DL 71/2008) – Sistema de Gestão dos Consumos Intensivos de Energia (Energy Management System for Intensive Energy Consumers) SGCIE

SGCIE (DL 71/2008) – Sistema de Gestão dos Consumos Intensivos de Energia (Energy Management System for Intensive Energy Consumers) –It promotes energy efficiency for big primary energy consumers –It promotes clean primary energy fuels mix SGCIE

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE SGCIE Domain of Application –All entities with an annual primary energy consumption higher than 500 toe (1 toe = MJ) –Exceptions: Cogeneration facilities, transport entities and buildings Supervision –DGEG Management –ADENE

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE SGCIE Obligations (for IEC entities) –Promote the registration of facilities –Perform Energy Audits Every 6 years for entities 1000 toe Every 8 years for entities from 500 to 1000 toe

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE SGCIE Obligations (for IEC entities) –Develop Energy Racionalization Plans Every measure with payback lower than 5 years must be implemented in the first 3 years for entities 1000 toe Every measure with payback lower than 3 years must be implemented in the first 3 years for entities from toe

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE SGCIE Obligations (for IEC entities) –Develop Energy Racionalization Plans Energy Intensity must decrease 6% in 6 years for entities 1000 toe Energy Intensity must decrease 4% in 8 years for entities from 500 to 1000 toe

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE SGCIE What is the relationship between the Energy Intensity obtained using the definition in SGCIE and the energy specific consumption obtained with the block diagrams methodology?

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE SGCIE The Energy Intensity obtained using the definition in SGCIE is the same obtained with the block diagrams methodology if: –There is only one product –The energy specific consumptions of the inputs is zero 8 (produção 1) A C D E B 2 1 F G Electricity Fueloil

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE SGCIE Obligations (for IEC entities) –Develop Energy Rationalization Plans The carbon intensity must not increase –Why a goal on carbon intensity?

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE SGCIE Obligations (for IEC entities) –Develop Energy Rationalization Plans The carbon intensity must not increase –Why a goal on carbon intensity? Promote less polutant energy mixes (do not increase energy efficiency by replacing less polutant energy forms with more polutant ones)

SGCIE Conversion coefficients for CO 2 emissions and primary energy –Despacho nº 17313/2008

SGCIE Conversion coefficients for CO 2 e emissions and primary energy –For primary fuels:

SGCIE Conversion coefficients for primary energy –For electricity (in kWh per toe)? BALANÇO ENERGÉTICO tep Total de Carvão Total de Petróleo Gás Natural (*) Termo- electricida de Lenhas e Resíduos Vegetais Resíduos Sólidos Urbanos Biogás = 1 a 322= Electricidade Thermoelectricity produced with coal, oil, natural gas, biomass, urban waste and biogas

SGCIE Conversion coefficients for primary energy –For electricity: BALANÇO ENERGÉTICO tep Total de Carvão Total de Petróleo Gás Natural (*) Termo- electricida de Lenhas e Resíduos Vegetais Resíduos Sólidos Urbanos Biogás = 1 a 322= Electricidade Thermoelectricity produced with coal, oil, natural gas, biomass, urban waste and biogas

SGCIE Conversion coefficients for primary energy –For electricity: –What would happen to this coefficient if we consider cogeneration? BALANÇO ENERGÉTICO tep Total de Carvão Total de Petróleo Gás Natural (*) Termo- electricida de Lenhas e Resíduos Vegetais Resíduos Sólidos Urbanos Biogás = 1 a 322= Electricidade Thermoelectricity produced with coal, oil, natural gas, biomass, urban waste and biogas

SGCIE Conversion coefficients for primary energy –For electricity: BALANÇO ENERGÉTICO tep Total de Carvão Total de Petróleo Gás Natural (*) Termo- electricida de Lenhas e Resíduos Vegetais Resíduos Sólidos Urbanos Biogás = 1 a 322= Electricidade Thermoelectricity produced with coal, oil, natural gas, biomass, urban waste and biogas BALANÇO ENERGÉTICO tep Total de Petróleo Gás Natural (*) Gases o Outros Derivado s Termo- electricidade Calor Resíduos Industriais Renováveis Sem Hídrica = = 24 a = 39 a 45 Cogeração

SGCIE Conversion coefficients for CO 2 emissions –For electricity (in kg CO 2 e per kWh)? BALANÇO ENERGÉTICO tep Total de Carvão Total de Petróleo Gás Natural (*) Termo- electricidade Lenhas e Resíduos Vegetais Resíduos Sólidos Urbanos Biogás = 1 a 322= Electricidade kg CO 2 e/toe kg CO 2 e/toe kg CO 2 e/toe

SGCIE Conversion coefficients for CO 2 emissions –For electricity (in kg CO 2 e per kWh) BALANÇO ENERGÉTICO tep Total de Carvão Total de Petróleo Gás Natural (*) Termo- electricidade Lenhas e Resíduos Vegetais Resíduos Sólidos Urbanos Biogás = 1 a 322= Electricidade kg CO 2 e/toe kg CO 2 e/toe kg CO 2 e/toe

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE SGCIE Conversion coefficients for CO 2 emissions and primary energy –For electricity: –Conversão directa de kWh em tep?

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE SGCIE Conversion coefficients for CO 2 emissions and primary energy –For electricity: –Conversão directa de kWh em tep? 1kWh=3.6MJ= /41.87 tep =

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE SGCIE Conversion coefficients for CO 2 emissions and primary energy –For vapor:

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE Exercise A factory produces 2 end products: P1 and P2. These products follow the production process shown in the diagram below, with P1 = ton/year and P2 = ton/year. The operation G treats the effluents from E and F. These two (E and F) are the only productive operations that generate waste, and S E = 1.2, S F = 1.3. In operation G, only 20% of the input effluent, exits the process as waste. The values of composition are as follows: f 4 = 0.4, f 6 = 0.5. The table presents the specific consumption of each operation. Consider that for electricity: kgep/kWh & 0.47 kg CO 2 e/KWh and for fueloil kgep/kg & kg CO 2 e/toe a)What is the carbon intensity of this factory? 8 (produção 1) A C D E B 2 1 F G (produção 2)

Energy Management Class # 6 :: Block Diagrams (cont.) & LCA & SGCIE Exercise 8 (produção 1) A C D E B 2 1 F G (produção 2)

Primary Energy Valuation Methods Primary Energy flows that are not heat are not easily compared with the heat that fuels can deliver (e.g. ….)

Primary Energy used for Electricity What is the primary energy associated with the electricity production in 2008? BALANÇO ENERGÉTICO tep Total de Carvão Total de Petróleo Gás Natural (*) Gases o Outros Derivados Total de Eectricidade Calor Resíduos Industriais Renováveis Sem Hídrica TOTAL GERAL = 1 a 322= = 24 a 2936 = 31 a = 39 a 45 47= IMPORTAÇÕES PRODUÇÃO DOMÉSTICA VARIAÇÃO DE "STOCKS" SAÍDAS CONSUMO DE ENERGIA PRIMÁRIA PARA NOVAS FORMAS DE ENERGIA Electricidade Cogeração CONSUMO DO SECTOR ENERGÉTICO CONSUMO COMO MATÉRIA PRIMA DISPONÍVEL PARA CONSUMO FINAL

BALANÇO ENERGÉTICO tep Total de Carvão Total de Petróleo Gás Natural (*) Gases o Outros Derivados Total de Eectricidade Calor Resíduos Industriais Renováveis Sem Hídrica TOTAL GERAL = 1 a 322= = 24 a 2936 = 31 a = 39 a 45 47= IMPORTAÇÕES PRODUÇÃO DOMÉSTICA VARIAÇÃO DE "STOCKS" SAÍDAS CONSUMO DE ENERGIA PRIMÁRIA PARA NOVAS FORMAS DE ENERGIA Electricidade Cogeração CONSUMO DO SECTOR ENERGÉTICO CONSUMO COMO MATÉRIA PRIMA DISPONÍVEL PARA CONSUMO FINAL Primary Energy used for Electricity What is the primary energy associated with the electricity production in 2008?

Primary Energy used for Electricity Is there other primary energy associated with the electricity production in 2008? BALANÇO ENERGÉTICO tep Total de Carvão Total de Petróleo Gás Natural (*) Gases o Outros Derivados Total de Eectricidade Calor Resíduos Industriais Renováveis Sem Hídrica TOTAL GERAL = 1 a 322= = 24 a 2936 = 31 a = 39 a 45 47= IMPORTAÇÕES PRODUÇÃO DOMÉSTICA VARIAÇÃO DE "STOCKS" SAÍDAS CONSUMO DE ENERGIA PRIMÁRIA PARA NOVAS FORMAS DE ENERGIA Electricidade Cogeração CONSUMO DO SECTOR ENERGÉTICO CONSUMO COMO MATÉRIA PRIMA DISPONÍVEL PARA CONSUMO FINAL

BALANÇO ENERGÉTICO tep Total de Carvão Total de Petróleo Gás Natural (*) Gases o Outros Derivados Total de Eectricidade Calor Resíduos Industriais Renováveis Sem Hídrica TOTAL GERAL = 1 a 322= = 24 a 2936 = 31 a = 39 a 45 47= IMPORTAÇÕES PRODUÇÃO DOMÉSTICA VARIAÇÃO DE "STOCKS" SAÍDAS CONSUMO DE ENERGIA PRIMÁRIA PARA NOVAS FORMAS DE ENERGIA Electricidade Cogeração CONSUMO DO SECTOR ENERGÉTICO CONSUMO COMO MATÉRIA PRIMA DISPONÍVEL PARA CONSUMO FINAL Primary Energy used for Electricity Is there other primary energy associated with the electricity production in 2008?

Primary Energy used for Electricity What is the primary energy associated with the electricity production in 2008? –Primary energy associated with fuels that produce (only) thermoelectricity is not problematic –Primary energy associated with fuels that produce thermoelectricity & heat is more problematic Why?

Primary Energy used for Electricity What is the primary energy associated with the electricity production in 2008? –Primary energy associated with fuels that produce (only) thermoelectricity is not problematic –Primary energy associated with fuels that produce thermoelectricity & heat is more problematic Why? How to split primary energy into primary energy associated with 1) heat production and 2) electricity production?

Primary Energy used for Electricity What is the primary energy associated with the electricity production in 2008? –Primary energy associated with fuels that produce (only) thermoelectricity is not problematic –Primary energy associated with fuels that produce thermoelectricity & heat is more problematic The % of primary energy associated with electricity is equal to the % of electricity in the output (roughly 25%) All primary energy is attributed to electricity production

Primary Energy used for Electricity What is the primary energy associated with the electricity production in 2008? –Primary energy associated with fuels that produce (only) thermoelectricity is not problematic –Primary energy associated with fuels that produce thermoelectricity & heat is more problematic The % of primary energy associated with electricity is equal to the % of electricity in the output (roughly 25%) All primary energy is attributed to electricity production –What about primary energy associated with primary renewable electricity? In the PEB: it is just equal to electricity produced

Primary Energy used for Electricity What is the primary energy associated with 1 kWh of (different types) of primary renewable electricity? MethodsWind Electricity PhotovoltaicHydro Electricity Geothermal Electricity electricity producedElectricity (1 kWh)

Primary Energy used for Electricity What is the primary energy associated with 1 kWh of (different types) of primary renewable electricity? What would be the method if we were using the concept of Primary Energy? MethodsWind Electricity PhotovoltaicHydro Electricity Geothermal Electricity electricity producedElectricity (1 kWh) measure of fossil energy

Primary Energy used for Electricity What is the primary energy associated with 1 kWh of (different types) of primary renewable electricity? MethodsWind Electricity PhotovoltaicHydro Electricity Geothermal Electricity as it is found in natureKinetic energyRadiationPotential EnergyHeat electricity producedElectricity (1 kWh) measure of fossil energy

Physical Content Method (IEA) The primary energy is the 1 st energy form downstream for which multiple energy uses are pratical Heat (nuclear, geothermal and solar thermal) –Conversion from heat to electricity in geothermal is 10% and in nuclear is 30% Electricity for wind, tide/wave/ocean and solar photovoltaic (100%)

Primary Energy used for Electricity What is the primary energy associated with 1 kWh of (different types) of primary renewable electricity? –Physical Content Method: primary energy is the first form of comercial energy available (IEA) MethodsWind Electricity PhotovoltaicHydro Electricity Geothermal Electricity as it is found in natureKinetic energyRadiationPotential EnergyHeat electricity producedElectricity (1 kWh) measure of fossil energy Physical Content MethodElectricity (1 kWh) Heat (1/0.1 kWh)

Partial Substitution Method (EIA) The amount of energy that would be necessary to generate and identical amount of electricity in conventional thermal power plants –Uses an average generating efficiency (40%) to convert electricity to primary energy

Primary Energy used for Electricity What is the primary energy associated with 1 kWh of (different types) of primary renewable electricity? –Physical Content Method: primary energy is the first form of comercial energy available (IEA) –Partial Substitution Method: primary energy is the amount of conventional energy that would have to be used (EIA) MethodsWind Electricity PhotovoltaicHydro Electricity Geothermal Electricity as it is found in natureKinetic energyRadiationPotential EnergyHeat electricity producedElectricity (1 kWh) measure of fossil energy Physical Content MethodElectricity (1 kWh) Heat (1/0.1 kWh) Partial Substitution MethodFuel (1/0.4 kWh)

Renewable Primary Energy What is the primary energy associated with the renewable electricity production in 2008 (toe)? MethodsWind Electricity PhotovoltaicHydro Electricity Geothermal Electricity Portuguese Energetic Balance Physical Content Method Partial Substitution Method

Renewable Primary Energy What is the primary energy associated with the renewable electricity production in 2008 (toe)? What are the 1) total primary energy consumption & 2) fractions of renewable primary energy MethodsWind Electricity PhotovoltaicHydro Electricity Geothermal Electricity Portuguese Energetic Balance Physical Content Method Partial Substitution Method / / / /0.4 MethodsRen. Electricity + Other Ren.TotalFraction of renewables Portuguese Energetic Balance Physical Content Method Partial Substitution Method

Total primary energy consumption & renewable primary energy consumption? BALANÇO ENERGÉTICO tep Total de Carvão Total de Petróleo Gás Natural (*) Total de Eectricidade Calor Resíduos Industriais Renováveis Sem Hídrica TOTAL GERAL = 1 a 322= = 31 a = 39 a 45 47= IMPORTAÇÕES PRODUÇÃO DOMÉSTICA VARIAÇÃO DE "STOCKS" SAÍDAS CONSUMO DE ENERGIA PRIMÁRIA PARA NOVAS FORMAS DE ENERGIA Electricidade Cogeração CONSUMO DO SECTOR ENERGÉTICO CONSUMO COMO MATÉRIA PRIMA DISPONÍVEL PARA CONSUMO FINAL

Total primary energy consumption & renewable primary energy consumption? BALANÇO ENERGÉTICO tep Total de Carvão Total de Petróleo Gás Natural (*) Total de Eectricidade Calor Resíduos Industriais Renováveis Sem Hídrica TOTAL GERAL = 1 a 322= = 31 a = 39 a 45 47= IMPORTAÇÕES PRODUÇÃO DOMÉSTICA VARIAÇÃO DE "STOCKS" SAÍDAS CONSUMO DE ENERGIA PRIMÁRIA PARA NOVAS FORMAS DE ENERGIA Electricidade Cogeração CONSUMO DO SECTOR ENERGÉTICO CONSUMO COMO MATÉRIA PRIMA DISPONÍVEL PARA CONSUMO FINAL

Renewable Primary Energy What is the primary energy associated with the renewable electricity production in 2008 (toe)? What are the 1) total primary energy consumption & 2) fractions of renewable primary energy MethodsWind Electricity PhotovoltaicHydro Electricity Geothermal Electricity Portuguese Energetic Balance Physical Content Method Partial Substitution Method / / / /0.4 MethodsRen. Electricity + Other Ren.TotalFraction of renewables Portuguese Energetic Balance % Physical Content Method % Partial Substitution Method %

Comparison of Methods Neither the Physical Content Method nor the Partial Substitution Methods are a measure of primary fossil energy Growth of wind, hydro or solar to produce electricity leads to energy savings with the Physical Content Method

Comparison of Methods Energy intensity (energy use per unit of GDP): –What is the meaning of the indicator?

Comparison of Methods Energy intensity (energy use per unit of GDP): –A measure of the efficiency of a country in using energy –Low values correspond to environmental and economic advantages What happens to this indicator if a country that only uses electricity as final energy changes from only using coal as primary energy to only using hydro? –With the partial substitution method? –With the physical content method?

Primary Energy Valuation Methods Physical Content Method Cegonho, 2011

Primary Energy Valuation Methods Partial Substitution Method Nominal efficiency is the yearly efficiency of fossil fuel power plants Cegonho, 2011

Primary Energy Valuation Methods BP Substitution Method Nominal efficiency is 38 % (typical of a fossil fuel power plant) Cegonho, 2011

Primary Energy Valuation Methods NL Substitution Method Nominal efficiency is the yearly efficiency of fossil fuel and nuclear power plants Cegonho, 2011