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VTT launches gasification test equipment for development of second generation biofuels
11.10.2006
Competitive production of transport biofuels
VTT launches gasification equipment designed for the development of second generation transport biofuels. In the process, synthesis gas will be refined from biomass for the production of diesel fuels. The extensive test operation that is about to be launched will produce basic information for the ongoing design of an industrial demonstration plant. In addition to synthesis applications, the work involves the development of new solutions for gas turbine and fuel cell power plants, as well as for the application of hydrogen for transport purposes.
The gasification plant will be able to exploit any carbonous raw-materials,
e.g. forest industry residues, bark, biomass from fields, refuce-derived fuels
and peat. In Finland, the main focus at the moment is on exploiting forest
industry residues and by-products without risking the supply of raw-materials
to the forest industry. Because of the existing logistics, synthesis
gasification is specifically being developed to be realized in connection with
forest industry plants.
The gasification test equipment located in Otaniemi, Espoo, represents the
most advanced technology in Europe. The equipment makes it possible for VTT
and the industry to conduct joint research on completely new production
technology. This will enable new business models for enhancing the
competitiveness of Finnish industrial clusters. The production of liquid fuel
in the forest industry or district heating power plants will be remarkably
competitive because of its high efficiency and practical raw-material
logistics.
The gasification test plant in Otaniemi is one of the largest energy projects
financed by the Finnish Funding Agency for Technology and Innovation, Tekes.
The project’s overall budget amounts to EUR 4 million. Apart from VTT, the
project involves the Helsinki University of Technology, Neste Oil, Foster
Wheeler Energy, Andritz, Vapo, Pohjolan Voima and the large forest industry
companies UPM, StoraEnso, M-Real and MetsäBotnia.
The gasification test equipment will be inaugurated for the three-year
development program by Mr. Mauri Pekkarinen, the Minister of Trade and
Industry.
VTT's Director General Erkki KM Leppävuori points out the importance of
Finnish pioneering know-how in the fields of energy and environment.
“Especially in environmental technology, Finland has been and, in all
likelihood, will be the trend-setter in Europe. The gasification test
equipment recently introduced represents another Finnish competitive asset
both nationally and internationally. “
The commercialization of the gasification technology will be carried out in
three phases. The output capacity of the first phase plant recently launched
is 500 kW. The second phase plant, estimated to be launched in 2008-2009, will
have the output capacity of 50 MW. This phase involves verifying the risk-free
operation of the process. The third phase, from 2010 onwards, encompasses the
construction of a demonstration plant which will be able to cover about three
per cent of the transport biofuel demand. The total cost of the development
and demonstration phase will amount to approximately EUR 300 million. In the
commercial plant, the estimated production costs of synthetic biodiesel will
be 0.45-0.60€/litre. In Europe, the estimated market for transport biofuels
will be approximately 20 million tons after 2010, which corresponds to an
annual turnover of EUR 15 billion.
According to VTT Development Manager Esa Kurkela, new production technologies
will enable the reduction by half of the additional costs incurred for the
national economy from the use of biofuels. Additionally, with the domestic
supply of raw-materials, the share of bio-energy could amount to as much as 20
per cent by 2020.
Finland actively promoting the biofuel issue
Finland is committed to increasing its share of biofuels by 2010 in accordance
with EU requirements. The Finnish government has therefore drafted a bill for
parliament to consider that will see 5.75 per cent of all fuels are bio-based
by 2010.
Finland is actively promoting the biofuel issue. The working group for
transport biofuels established by the Ministry of Trade and Industry proposed
the launching of a national development program in order to develop new
Finnish production technologies for second generation biofuels, and to
introduce new biofuels onto the markets by 2015. The working group report
estimated an additional cost of EUR 100 million to be incurred from the 2010
commitment, with a 0.03€ effect on fuel prices per liter. The estimate is
based on the first generation field-originated bio-components.
Images:
VTT
Technical Research Centre of Finland introduced the most advanced gasification
test equipment in Europe designed for the development of second generation
transport biofuels. The equipment will be used for refining of synthesis gas
from biomass for the production of diesel fuels.
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