Cement, Energy & Environment

total installed biomass capacity mounted to some 62 GW in 2010. Therefore, a large co-firing potential exists, but a substantial increase would pose problems regarding the availability of biomass, which can also be used for biofuels and biomaterials production. GHG Emissions and Environmental Impact Biomass co-firing offers a comparatively low– cost way to reduce greenhouse gas (GHG) emissions. While the combustion of biomass can be considered carbon neutral, the overa ll GHG balance of the biomass prov1s1on (i.e. precombustion supply chain) depends on many factors, such as processing, transport modes and distances, and in the case of dedicated energy crops on cultivation/harvesting , and possible land use change effects. Power Generation Emissions If combined with carbon capture and storage (CCS) technologies, biomass co-firing results in negative GHG emissions (i.e. net removal of C0 2 from the atmosphere), also referred to as 'biogenic carbon sequestration'. Current Costs and Cost Projections At present co-firing in state-of-the-art CHP plants is considered the most cost-effective option of producing electricity from biomass . Determining the overall cost for biomass co-firing in coal-fired power and CHP plants requires analysis of several components, particularly the costs related to investment, operation , maintenance and fuel. It must be noted that the actual costs are very sensitive to the specific site and the existi ng installation (if any), which determine the investment costs, as well as costs of the coal and biomass to be used. The fuel cost is the most important factor when considering the additional costs for co-firing . The investment cost depends on the plant capacity and service (i.e. power generation only or combined heat and power), as well as the type of the biomass fuel to be used and the quality of the existing boiler (if any) . The operation and maintenance (O&M) costs are likely to be similar to coal-fired power plants (5-1 0 USD/MW) since co-firi ng increases fuel handling costs but reduces de-sulphurisation and ash disposal costs. The biomass fuel cost consists of two components: the cost of the feedstock and the cost of transportation , preparation and handling. Feedstock costs vary greatly with the biomass origin (e.g. dedicated cultivation or agriculture and forestry waste) , type and composition (i.e. energy and moisture, taxes, fees , etc.). Sustainability, Potential and Barriers Considering current prices for coal and biomass, co-firing is generally more expensive than solely coal-based power generation or CHP. The competitiveness of biomass co-firing can be improved through measures to make coal-based energy more expensive, particularly carbon pricing through emission cap-and-trade schemes or carbon taxation. Based on current carbon prices , the incremental cost of co-firing cannot be fully recovered by selling emission permits, but the new European Union Emissions Trading System (EU ETS) in 2013 is likely to increase co-firing competitiveness and pellet use in Europe as large emitters (e.g. coal power plant owners) are subjected to auctioning of their C0 2 allowances. Other measures to increase the profitability of biomass co-firing include the removal of specific fossil-fuel subsidies , incentives for the conversion of power plants into CHP plants, government support to biomass supply infrastructure and dedicated R&D funding for co-firing. Governments can also establish mandatory use of biomass co– firing by quota obligation schemes. Policies should seek the most efficient use of the given biomass potential by encouraging co-firing in CHP plants where district heating systems are available and in connection with industrial facilities. Courtesy: Akshay Urja, June 2012, Pp. 70-73 Green Field Plants & Expansion CEMENT MAKERS EXPECT RISE IN DEMAND, EXPAND CAPACITY Cement makers such as Lafarge India, ACC Ltd, UltraTech Cement Ltd and Dalmia Bharat Ltd are expanding capacity despite a glut because they anticipate an increase in demand from construction and infrastructure projects ahead of national election, to be held next year. Expansion plans worth ~8,522 crore have been announced since the beginning of 2013, with France's Lafarge SA being the latest. Lafarge, which raised €200 million (around ~1 ,415 crore today) from Baring Private Equity Asia by selling a 14% stake in its Indian unit, said on Wednesday that it will use the funds to expand its local subsidiary. 9