A bio-energy conversion park in the province of Limburg (Belgium) - an economic viability check of a biomass utilization concept for bio-energy

Abstract

A bio-energy conversion park (bio-ECP) is a multi-dimensional, synergetic concept, converting multiple biomass streams into useful energy and other bio-based products, through an integrated combination of conversion processes and technologies (such as combustion, gasification, digestion, pyrolysis,…). The concept focuses on the use of unexploited biomass (residue) streams which are locally (radius ca. 30 km) available and currently not or hardly used. The goal of the project is to demonstrate potential economic and technical advantages of using these biomass streams in a bio-ECP concept. Therefore a technological concept and a business plan is being developed for five pilot bio-ECP’s. The paper focuses on the implementation of a pilot bio-ECP in the province of Limburg in the east of Flanders (part of Belgium). A ten step approach and some lessons learned from the introduction of a bio-ECP project is presented, which can be used as a guide for policy makers and local investors. The steps consist of: (1) determining the bio-ECP location, (2) stakeholder consultation (local authority, local industry, related projects,…), (3) assessing local biomass potential for energy production (waste, agriculture, forestry, industry), (4) assessing local energy demand, (5) matching local bio-energy potential and local energy demand, (6) sounding board with local interested parties, (7) defining the bio-ECP concept, (8) checking concept viability and economic feasibility, (9) defining the business strategy (individual roles, cooperation agreements and communication strategy), (10) start-up bio-ECP. Step (1) determining the bio-ECP location is done by means of a multi-criteria analysis (MCA) taking into account local biomass potential, local energy demand, existing bio-energy installations and the willingness of local communities to participate in the bio-ECP project. Based on the MCA the city of Lommel is chosen as most suitable out of the fortyfour municipalities screened. Lommel hosts a recently developed sustainable industrial site of 300 ha awaiting new industrial initiatives. Step (2) seemed crucial trying to create sufficient local support for the concept of a bio-ECP and addressed local authorities (departments of energy, environment and sustainability), local major industries, industrial site developers and the local business club. Step (3) and (4) involve numerous contacts with experts in the field of agriculture, forestry and waste management focusing on biomass feedstocks not realizing their full potential yet. Step (5) is a matchmaking process where energy as well as materials from biomass conversion can be exchanged between the bio-ECP installations and/or the assessed energy demand of local entrepreneurs. Step (6) is important and has a major impact on the final result. Local interested parties are united in a sounding board where concepts are developed and evaluated in close collaboration. Steps (7) and (8) are currently ungoing and will be finalized end of 2012. During these steps the bio-ECP concepts are developed and individually evaluated using a techno-economic model. These steps focus on the optimal techno-economical combination of biomass conversion technologies to create an integrated bio-ECP based on the assessed bio-feedstock availability and local energy demand. The final strategy, step (9), will be developed early spring 2013. The bio-ECP concept is being studied and developed with the financial support of the European INTERREG IVA programme Flanders-Netherlands, and co-funded by Dutch and Flemish authorities (national and provinces). The project runs for a period of three years from April 2010 until March 2013.