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Biomass for electricity in the EU-27: Potential demand, CO2 abatements and breakeven prices for co-firing

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  • Bertrand, Vincent
  • Dequiedt, Benjamin
  • Le Cadre, Elodie

Abstract

This paper analyses the potential of biomass-based electricity in the EU-27 countries, and interactions with climate policy and the EU ETS. We estimate the potential biomass demand from the existing power plants, and we match our estimates with the potential biomass supply in Europe. Furthermore, we compute the CO2 abatement associated with the co-firing opportunities in European coal plants. We find that the biomass demand from the power sector may be very high compared with potential supply. We also identify that co-firing can produce high volumes of CO2 abatements, which may be two times larger than that of the coal-to-gas fuel switching. We also compute biomass and CO2 breakeven prices for co-firing. Results indicate that biomass-based electricity remains profitable with high biomass prices, when the carbon price is high: a Euros 16–24 (25–35, respectively) biomass price (per MWhprim) for a Euros 20 (50, respectively) carbon price. Hence, the carbon price appears as an important driver, which can make profitable a high share of the potential biomass demand from the power sector, even with high biomass prices. This aims to gain insights on how biomass market may be impacted by the EU ETS and others climate policies.

Suggested Citation

  • Bertrand, Vincent & Dequiedt, Benjamin & Le Cadre, Elodie, 2014. "Biomass for electricity in the EU-27: Potential demand, CO2 abatements and breakeven prices for co-firing," Energy Policy, Elsevier, vol. 73(C), pages 631-644.
    • Handle: RePEc:eee:enepol:v:73:y:2014:i:c:p:631-644
    DOI: 10.1016/j.enpol.2014.06.007
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    References listed on IDEAS

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    1. Vincent Bertrand, 2012. "Understanding fuel switching under the EU ETS," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 35(6), pages 494-517.
    2. Sylvain Caurla & Philippe Delacote & Franck Lecocq & Ahmed Barkaoui, 2013. "Stimulating fuelwood consumption through public policies: an assessment of economic and resource impacts based on the french forest sector model," Post-Print hal-01072295, HAL.
    3. Panoutsou, Calliope & Eleftheriadis, John & Nikolaou, Anastasia, 2009. "Biomass supply in EU27 from 2010 to 2030," Energy Policy, Elsevier, vol. 37(12), pages 5675-5686, December.
    4. Caurla, Sylvain & Delacote, Philippe & Lecocq, Franck & Barkaoui, Ahmed, 2013. "Stimulating fuelwood consumption through public policies: An assessment of economic and resource impacts based on the French Forest Sector Model," Energy Policy, Elsevier, vol. 63(C), pages 338-347.
    5. Vincent Bertrand, 2013. "Carbon and energy prices under uncertainty: A theoretical analysis of fuel switching with non-equally efficient power plants," Working Papers 1309, Chaire Economie du climat.
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    8. Uslu, Ayla & Faaij, André P.C. & Bergman, P.C.A., 2008. "Pre-treatment technologies, and their effect on international bioenergy supply chain logistics. Techno-economic evaluation of torrefaction, fast pyrolysis and pelletisation," Energy, Elsevier, vol. 33(8), pages 1206-1223.
    9. Hansson, Julia & Berndes, Gran & Johnsson, Filip & Kjrstad, Jan, 2009. "Co-firing biomass with coal for electricity generation--An assessment of the potential in EU27," Energy Policy, Elsevier, vol. 37(4), pages 1444-1455, April.
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    Cited by:

    1. Loução, Pedro O. & Ribau, João P. & Ferreira, Ana F., 2019. "Life cycle and decision analysis of electricity production from biomass – Portugal case study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 108(C), pages 452-480.
    2. Aviso, K.B. & Sy, C.L. & Tan, R.R. & Ubando, A.T., 2020. "Fuzzy optimization of carbon management networks based on direct and indirect biomass co-firing," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).
    3. Caurla, Sylvain & Bertrand, Vincent & Delacote, Philippe & Le Cadre, Elodie, 2018. "Heat or power: How to increase the use of energy wood at the lowest cost?," Energy Economics, Elsevier, vol. 75(C), pages 85-103.
    4. Zhang, Yun-Long & Liu, Lan-Cui & Kang, Jia-Ning & Peng, Song & Mi, Zhifu & Liao, Hua & Wei, Yi-Ming, 2024. "Economic feasibility assessment of coal-biomass co-firing power generation technology," Energy, Elsevier, vol. 296(C).
    5. Santos, Andreia & Carvalho, Ana & Barbosa-Póvoa, Ana Paula & Marques, Alexandra & Amorim, Pedro, 2019. "Assessment and optimization of sustainable forest wood supply chains – A systematic literature review," Forest Policy and Economics, Elsevier, vol. 105(C), pages 112-135.
    6. Daud Patabang & Effendy Arif & Jalaluddin & Nasruddin Aziz, 2019. "The Effect Of Adding Candlenut Shell Into The Low-Rank Coal On Combustion Performance," Journal of Mechanical Engineering Research & Developments (JMERD), Zibeline International Publishing, vol. 42(1), pages 116-121, March.
    7. Huang, Qian & Xu, Jiuping, 2023. "Carbon tax revenue recycling for biomass/coal co-firing using Stackelberg game: A case study of Jiangsu province, China," Energy, Elsevier, vol. 272(C).

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    Keywords

    Biomass; Electricity; EU ETS;
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