CHP or biofuel production in Europe?
To determine the number and type of production plants feasible, a mixed integer linear model was used, based on minimization of the total cost of the whole supply chain. Different policy scenarios were studied with varying values of carbon cost and biofuel support. The study focused on the type of technology to invest in and the CO2 emission substitution potential at constant energy prices. The CHP plants and the biofuel production plants were competing for the same feedstock (forest biomass), which is available in limited quantities.
The results show that CHP plants are preferable to biofuel production plants at high carbon costs (over 50 EUR/tCO2) and low biofuel support (below 10 EUR/GJ), whereas more biofuel production plants would be set up at high biofuel support (over 15 EUR/GJ), irrespective of the carbon cost. Regarding the CO2 emission substitution potential, the highest potential could be reached at a high carbon cost and low biofuel support. It is concluded that there is a potential conflict of interest between policies promoting increased use of biofuels and those aiming at decreased CO2 emissions.
Amount of biomass used (PJ/a) for CHP (top) and biofuel (bottom) production plants when a biofuel support and a carbon cost are applied simultaneously.
Emissions substituted (MtCO2/a) for different combinations of biofuel support and carbon cost.
