Andreas
Meurer
*,
Patrick
Jochem
and
Jürgen
Kern
German Aerospace Center (DLR), Institute of Networked Energy Systems, Curiestr. 4, 70563 Stuttgart, Germany. E-mail: andreas.meurer@dlr.de; Tel: +49 711 6862 8100
First published on 15th January 2024
The introduction of Sustainable Aviation Fuel (SAF) is expected to play an important role in the decarbonisation of the aviation sector. Particularly for intercontinental flights, there is currently no near-term alternative to replacing fossil-based kerosene with sustainable liquid fuels. The current supply of conventional jet fuel is highly centralised through production at large-scale refineries. In light of future SAF production, there are also ongoing research activities and pilot projects focusing on small modular production technologies. This enables a decentralised fuel production, which could lead to a systemic shift in the current fuel supply infrastructure and value chains by enabling direct integration of renewable energy and fuel production in remote regions. To better understand the potential systemic role and relevance of such fuel production in the future energy system, we evaluate the process conditions and product costs of a decentralised Fischer–Tropsch based SAF production with maximised kerosene output as the only product of interest. The requirements for the product composition assumed in this study are particularly relevant and result in a reduced electrical plant efficiency of 35%. Compared to centralised production, the lower achievable electrical plant efficiency is compensated by a reduction of the indirect plant costs for modular units. The decentralised net production costs (NPC) of kerosene result in around 4.50 € per l in the baseline scenario, and between around 3.20 € per l and 6.15 € per l taking into account a variation of the assumptions. For a 2050 scenario, we evaluate NPC of 2.00 € per l, with a high confidence of ending up between 1.50 € per l and 2.75 € per l, considering the uncertainty assessment.
A general framework for reducing GHG emissions, which was developed in the context of the transport sector, consists of three main pathways: Avoid, Shift, Improve.4 While the most effective mitigation option after trip avoidance, a modal shift, can be applied to road transport in particular, this is much more complicated in the aviation sector due to missing alternatives for long distances. The growth in air traffic, especially in emerging economies catching up with the aviation capacity of established markets,5 means that global aviation is unlikely to decline in the coming decades.3 A feasible “shift” to more sustainable transport modes is possible for short distances, but around 80% of direct CO2 emissions from aviation are caused by long-haul flights.5 This impact is exacerbated by the greater non-CO2 effects, which are amplified at the resulting higher flight altitude.6 Significant reductions in GHG emissions must therefore mainly be achieved through the third pathway – improvement measures, which can be threefold.3,7,8
One pillar is efficiency improvements. An extensive list of possible tools includes e.g. improvements in aircraft fuel or payload efficiency, innovative ground taxiing concepts or adjustments to climb and descent, routing or flight altitude – accompanied by integrated digitisation of all these areas.3,7,8 The second important option is the development of “zero-emission planes”,3 an aircraft technology that uses hydrogen combustion or electricity for the propulsion. However, the use of this technology is mainly foreseen for small aircraft and is likely to be limited to short-haul flights in the coming decades.3,7 The third pillar is the introduction of sustainable aviation fuels (SAF), liquid kerosene-type fuels based on biomass or renewable electricity.3,7 In most current projections, SAF is assumed to be the focus of improvement options and to account for the largest share of aviation emissions reductions over the next decades.3,7,8 The envisaged important role of SAF is also being considered in legislation, such as the current proposal for the “ReFuelEU Aviation initiative”9 as part of the European Union's (EU) “Fit for 55” package.10 The proposal mandates minimum levels of SAF at EU airports, starting at 2% in 2025 and gradually increasing to 63% in 2050.9 With minimum shares of 0.7% in 2030 and 28% in 2050, an additional sub quota is foreseen for the introduction of synthetic aviation fuels – renewable fuels of non biological origin (RFNBO) according the delegated regulation of the European Commission.11 Under consideration of the requirements defined in ref. 12, RFNBO will mostly derive from renewable electricity as major energy carrier, so-called e-fuels (or power-fuels).13
The future role of e-fuels in aviation, including beyond the EU's or others statutory quota, is part of the current scientific debate. It will depend mainly on the techno-economic performance of the different technologies that can be used to produce SAF, the availability and costs of a supply of the required sustainable feedstocks and the possibilities of the infrastructural implementation. Numerous studies have assessed the plant efficiencies and the current and expected future costs of an electricity-based alternative fuel production. A comprehensive literature review was carried out by Ince et al.14 to provide an overview of the literature relating to a systemic thermodynamic, techno-economic and life cycle assessment of different power-to-x pathways. König et al.15 calculated the electrical efficiencies and current net production costs (NPC) of a Power-to-Liquid (PtL) process based on FT synthesis. Albrecht et al.16 provide a standardised approach for the flow sheet simulation using the commercial Aspen Plus® and a subsequent techno-economic assessment using their in-house software tool TEPET. They report efficiencies and net production costs for Biomass-to-Liquid (BtL), Power-to-Liquid and Power-Biomass-to-Liquid (PBtL) processes for different plant production capacities between around 65 t/d and 250 t/d. They highlight the important role of the electricity price on the final production costs. This is also supported by the finding of Peters et al.,17 which report efficiencies and product generation costs for a PtL process with integrated co-electrolysis for the synthesis gas production. The application of a co-electrolysis in a simplified plant setup is considered by Herz et al.,18 who investigate achievable plant efficiencies and the economic feasibility with a focus on the production of chemicals. Adelung19 carried out an extensive sensitivity and uncertainty analysis for a FT-based PtL process with external electrolysis, highlighting the relevance of the electrolysis operation strategy for the final product costs. A projection for production costs of jet fuel in the year 2050 is provided by Schmidt et al.,20 which report literature-based efficiencies and production costs for Methanol- and FT-based pathways.
Common to all of the efficiencies and production costs reported in the above studies are the underlying assumptions of a centralised large-scale production and that the production costs relate to a wide range of products, including relevant amounts of carbon fractions other than those characteristic of kerosene.
However, there are new production routes that differ from conventional applications in terms of production capacity to “enable the implementation of new value chains”.20 Some of the current PtL demonstration projects are targeting small-scale applications21 with a modular plant design for decentralised application, including and enabling a supply using only renewable electricity as the main energy source.20 In addition to the ongoing development towards a certification of a 100% drop-in SAF,22,23 a product certified for direct use in existing aircraft without the need for an additional conventional blending component, an ASTM task force is also working on 100% non-drop-in SAF standards,23 which could be particularly relevant for decentralised applications.
In the medium to long term, a decentralised production strategy in combination with a certified 100% SAF product could be particularly suitable for an on-site production of SAF directly at the airport. Especially for remote airports with currently long and extensive transport distances to the next refineries, such production can be beneficial. This study provides the basis for a systematic evaluation of the possible future role of a decentralised modular production of SAF. A newly developed open-source capable Python-based modelling framework is used to investigate the production process based on a generic method chain and to answer the following research questions, which have not been addressed by the existing research described above:
• What are the most relevant process steps and what are the efficiency trade-offs of a modular small-scale PtL plant with explicit consideration of boundary conditions relevant for decentralised SAF production from a systemic perspective?
• What are expectable net production costs of a modular small-scale production of SAF in a baseline scenario and a projection for 2050 under consideration of the constraints relevant for a decentralised PtL production?
The method chain presented in this study can also serve as a blueprint for the comprehensive assessment of other process setups in the context of synthetic fuel production. The study further identifies necessary research areas, which are particularly relevant for the decentralised production of 100% drop-in SAF production.
This paper is structured as follows: Section 2 provides information on the process setup, constraints and the general methodology. This is followed by the presentation and discussion of the results in Section 3, focussing on a detailed analysis of the different process steps and operation parameters in Section 3.1, the assessment of achievable plant efficiencies in Section 3.2 and the expectable net production costs of kerosene in Section 3.4. Section 4 concludes the key findings, highlights open research areas and gives an outlook on possible follow-up studies.
In this study, high temperature co-electrolysis (co-SOEC) is selected for synthesis gas production, as this technology is envisaged to be part of a currently planned commercial PtL production plant.25 As during co-SOEC, CO2 and H2O is directly converted into the required syngas components H2 and CO in one single process step, it is particularly suitable for a modular approach, reducing the amount of required process steps. A Fischer–Tropsch (FT) reactor is chosen for the synthesis, as it is a typical synthesis type of modular units which are currently under development26 or already in operation.27 Syncrude from FT synthesis is also particularly suitable for kerosene production, as it requires less refining effort than other synthesis technologies.28 The product separation consists of two condensation stages, as shown in Fig. 2, which corresponds to the approach of low plant complexity and is generally in line with the process setup of small-scaled modular units.21,29 The process is further explained in Section 2.2. In order to increase the kerosene yield and the required proportion of isomerised paraffins, a hydrocracker (HC) is considered as part of the process. In contrast to current research that examines a combination of FT and HC in a single reactor,30 this study considers the HC as a separate process step.
Fig. 2 Simplified process flow sheet of the PtL production evaluated in this study. Operation parameters which are varied during the process analysis described in this study are highlighted in red. |
The authors recognise the need for and the benefits of a highly detailed process simulation. However, this study is primarily concerned with technology insights, impacts and conclusions that have a systematic impact on the technology as part of the overall energy system. The process design to be evaluated is, therefore, simplified and reduced to those components that are expected to be either highly relevant to the final product composition (leading to implications for the infrastructural embedding in the system) or to have a significant impact on production costs. Additional equipment is thus not part of the technical process evaluation and is considered via additional cost factors in the techno-economic assessment. This approach is carried through to the modelling of individual process steps, which vary in detail according to their relevance and impact on the process efficiency, cost and product composition.
Two major constraints are further defined for the product composition. The shares of hydrocarbon fractions below and above the characteristic kerosene range, which is considered between C8 and C16 in this study,46 are limited to a maximum of 15 mass% each. Those constraints are considered a simplified approach to introduce a product-related limitation. Current regulations for fuel specification mainly define fuel properties, but do not give explicit guidelines for the fuel composition. This applies to both conventional Jet A-1 (ref. 47) and also currently approved SAF pathways.48 The interrelation between fuel composition and resulting properties is highly complex49 and beyond the scope of this work. The fuel property assessment in combination with a process optimisation and evaluation is highlighted as one major open research area in the following course of this study.
(1) |
Parameter | Units | Lower limit | Upper limit |
---|---|---|---|
Feed ratio CO2:H2O | — | 0.7 | 1.3 |
co-SOEC ratio H2:CO | — | 2.0 | 2.5 |
H2 HC split | % | 3.0 | 15.0 |
Syngas P | MPa | 1.5 | 3.0 |
FT T | K | 480 | 513 |
FT WHSV | g h−1 gcatalyst−1 | 1.0 | 5.0 |
Hot trap T | K | 400 | 465 |
Cold trap T | K | 280 | 380 |
Int recycle ratio | % | 80.0 | 98.0 |
HC T | K | 600 | 645 |
HC WHSV | g h−1 gcatalyst−1 | 1.0 | 5.0 |
HC separation T | K | 350 | 450 |
1. The analysis of the calculation results under varying operation parameters provides insights on the process operation and expected effects on efficiency and product composition. The most relevant process parameters with a major impact on the process performance indicators can be identified.
2. In order to reduce the computational effort for the subsequent execution of the Particle Swarm Optimisation (PSO), operating parameters are determined that lead to process parameters that do not correspond to the technical process constraints defined in Section 2.2.6. The identified parameter ranges are excluded for the following process optimization calculation and thus reduce the size of the search space.
3. The broad exploration of the parameter space enables the identification of parameter regions with local maxima.
During the optimisation, any calculation that violates the constraints defined in the previous sections is excluded from the optimisation process. To account for the fact, that a global optimisation using a metaheuristic approach such as PSO cannot ensure that the global optimal solution is found,52 several measures are taken to increase the reliability of the PSO results.
1. Four different PSO runs with varying setting parameters are carried out. A number of 72 particles is selected for all four runs, limited due to infrastructural boundary conditions of the computational cluster used but complying to Piotrowski et al.,53 which conclude the best results within a swarm size of 70 to 500 particles for complex problems with the PSO method considered here.
2. The resulting maximised efficiencies are adjusted for the underlying additional constraints individual to this study and compared with expectable plant efficiencies based on the current literature.
3. The PSO results are cross-checked with the calculated plant efficiencies based on the LHS to identify, if possible parameter ranges leading to further increased efficiencies remained undetected by the PSO.
The maximisation of the electrical plant efficiency is chosen as optimisation criterion for the PSO because it is subject to less uncertainty than the calculation of the net production costs of kerosene (NPC). We assess this approach as sufficiently accurate and also representative for production cost optimisation, as there is a direct correlation between plant efficiency and production costs, as demonstrated in the remainder of this study.
To complete the estimation of total required capital investment, additional plant expenses which are typical for fluid processing plants are considered as a percentage of the delivered equipment costs.54 Some of the major economic advantages of a modular small-scale plant setup can be accounted to savings in cost categories which are covered by those CAPEX-factors. To the authors knowledge, no detailed information on the additional capital investment items for modular pre-fabricated plants can be found in current literature. Therefore, we define various assumptions which are described in Table 3, showing all direct and indirect additional cost-factors. The specific commodity and utility costs relevant for the calculation of the direct operational expenses are provided in Table 2.
Item | Reference parameter | Peters et al.54 | Own assumption |
---|---|---|---|
a For a modularised system design where all main components are provided in containers, it is assumed that an extensive additional building erection is not necessary. Therefore the CAPEX factor is reduced. b Analogous to the buildings, it is assumed that without an extensive additional building erection substantial yard improvement is not necessary. c One intended major advantage of a modularised and decentralised system design is the significant reduction of operation and maintenance activities. Thus, it is assumed that consequently also the necessity and the extent of service facilities is significantly reduced. d In the scenario of a decentralised and modularised system design, the engineering of the plant design is highly facilitated as it is no longer a completely individual plant design. Therefore, a relevant decrease of the CAPEX factor is assumed. e Due to the modularised scenario which might lead to a significant increase in the efficiency of pre-assembly of the process steps, a significant reduction of the construction costs is assumed. f Due to possible pre-fabrication, no contingency considered. g Concerning the decentralised approach, which comes with a highly facilitated plant operation, the above estimation method is assumed to be not expedient. As the plant operation is considered highly automated, in the following assessment 16 employee-hours per day are assumed, being representative for two 8 hour shifts. The hourly wage is based on.55 h It is assumed, that for a decentralised production with minor number of employees and a highly automated process operation, no operating supervision is necessary. j Following the scenario of a highly automated process operation using modular process units for the operation at a predefined operation point and product composition, laboratory charges are assumed to be negligible. | |||
Direct CAPEX | |||
Equipment installation | Equipment cost | 47% | 47% |
Instrumentation & control | Equipment cost | 36% | 36% |
Piping | Equipment cost | 68% | 68% |
Electrical installations | Equipment cost | 11% | 11% |
Buildings | Equipment cost | 18% | 5%a |
Yard improvements | Equipment cost | 10% | 5%b |
Service facilities | Equipment cost | 70% | 10%c |
Indirect CAPEX | |||
Engineering & supervision | Equipment cost | 33% | 10%d |
Construction | Equipment cost | 41% | 10%e |
Legal expenses | Equipment cost | 4% | 4% |
Contractors fee | Equipment cost | 22% | 22% |
Contingency | Equipment cost | 44% | 0%f |
Direct OPEX | |||
Operating labour | 41 € per hg | ||
Operating supervision | Operating labour | 15% | 0%h |
Maintenance & repairs | FCI | 4% | 4% |
Operating supplies | Maintenance and repairs | 15% | 15% |
Laboratory charges | Operating labour | 15% | 0%j |
Taxes | FCI | 0% | 0% |
Insurance | FCI | 1% | 1% |
Working capital | FCI | 15% | 15% |
(2) |
In order to evaluate the impacts on the NPC due to the likely deviation of the underlying input parameters compared to the underlying scenarios, we perform an uncertainty assessment. With the assumptions of the base scenarios as the reference point, we create a sample of 10000 input parameter combinations with a triangular probability distribution with the ranges defined in Table 4.
Category | Range |
---|---|
Generic equipment | ±30% |
Non-generic core components | ±50% |
CAPEX factors | ±30% |
CAPEX factors adjusted | ±50% |
OPEX factors | ±30% |
OPEX factors adjusted | ±50% |
Operating labour | ±50% |
Commodities | ±50% |
Plant efficiency | ±25% |
The range of the equipment which is generically calculated according Peters et al.54 derives from the capital cost estimation accuracy of ±30%.54 For the other core components, a range of ±50% is assumed as these are still relatively new technologies for which an estimate of the costs may be subject to greater fluctuations. The FT reactor is subject to the same considerations, resulting in a ±50% uncertainty range also being applied. To account for the additional uncertainty of our own assumptions regarding the cost-factors, the uncertainty range of the adjusted CAPEX and OPEX factors is also increased to ±50%.
Fig. 3 shows the correlation between the varying input operation parameters and selected performance indicators of the process. Only few operation parameters show a systematic impact on the plant performance and process operation states. With a coefficient of determination (R2) of around 0.65, the FT reactor temperature is the operation parameter that has the most decisive individual impact on the electrical process efficiency. Apart from the FT reactor space velocity, which also shows a tendency to systematically influence the plant efficiency (R2 ≈ 0.1), no other systematically decisive parameters with respect to the electrical efficiency can be identified.
Also with regard to the other operation states tracked, significant systematic influences can be seen primarily in the FT reactor temperature. This is mainly due to its effect on the composition of the outgoing gas stream, which is twofold. An increase in reaction temperature leads to an increased reactor activity – equivalent to an increase in the conversion rate of the synthesis gas. When there are fewer syngas components in the effluent stream, less gas needs to be recirculated through the internal and external gas recirculation streams because most of the converted syngas is separated in the hot and cold trap. As the flue gas flow is fixed at 5% of the recycle flow, increasing the recycle flow increases the absolute losses of energy intensive syngas components and CO2. This is the same reason, why a low space velocity (WHSV) tends to lead to higher efficiencies, as at lower WHSV, the syngas conversion rate in the reactor is increased. The relationship between the process-internal flow and the achievable electrical efficiencies is shown in Fig. 4.
Fig. 4 Relationship between key operation parameters and selected plant indicators. The NPC refer to the baseline cost scenario. |
The second effect of FT reactor temperature on gas stream composition is its influence on the chain growth of the hydrocarbons during synthesis. Increasing reaction temperatures reduce the growth probability and thus result in a hydrocarbon output that is in average shifted towards shorter chain lengths. In addition to the recirculation stream, this subsequently affects the proportions of hydrocarbon fractions condensing in the hot and cold traps and thus the final product composition. However, the reactor temperature mainly affects the proportions of product types consisting of heavier fractions (e.g. waxes or diesel) and shorter fractions (e.g. naphtha or gasoline). The proportion of kerosene is not significantly affected, since the maximum of the parabolic distribution of chain lengths, which is in principle typical for an FT reactor,41 always lies within the kerosene fraction in the reaction temperature range considered.
The process operation parameters with the most systematic effect on the kerosene fraction of the product stream are the hot trap and cold trap temperatures. The hot trap temperature controls the separation of the longer hydrocarbon chains and leads to an increase in long chain hydrocarbons and therefore a decrease in the specific share of kerosene fraction with increasing temperature. The separation of the shorter hydrocarbon fractions is mainly controlled by the cold trap temperature. Lowering the temperature results in a broader product spectrum and increased product yield, but a decrease in the specific proportion of kerosene fraction hydrocarbons.
Although the syngas ratio provided by the co-electrolysis unit also has a systematic effect on some operating states, e.g. the isomerisation rate, it cannot be chosen arbitrarily, but is limited by the requirements of the feed gas composition entering the FT reactor. Those process-related and additional product-related constraints and their impacts on process efficiency are discussed in the following section.
Fig. 5 Parallel coordinate plot showing the range of operation parameters according to Table 1 and the resulting range of the performance indicators on the vertical axes for all LHS and PSO calculation runs. The electrical efficiency is shown on the right. Blue shaded areas show the gradual exclusion of parameter ranges due to process- and product-related constraints. The dark orange area shows the parameter ranges that result in the top 10% of electrical efficiency from all calculations meeting all constraints. The lines show the optimal solution from each PSO run, with the solid line representing the absolute maximum and reference process selected for the techno-economic assessment. |
Although filtering by the constraints assumed for the FT reactor excludes more than 60% of the calculation samples, it results in only a small reduction in achievable plant efficiencies. Without consideration of further constraints, the highest efficiencies result at around 45%, which is in line with current literature on overall process efficiencies without restrictions on the product composition.15,16,57 For the constraints associated with the FT reactor, no further systematic constraints on other operating states, or conclusions on operating parameters, can be drawn.
The restriction of the long-chained product fractions above C16 to a maximum of 15 mass% excludes another more than 25% of the original samples, but has no general effect on the highest achievable efficiency. A notable impact can mainly be observed for the internal flow, where the upper around 25% are excluded. This is in line with the observations made in Section 3.1, as a higher proportion of long-chained hydrocarbons in the product output is generally favoured by low reactor temperatures, which are generally associated with an increase in internal flow.
Adding the final constraint, the limitation to a maximum share of 15 mass% of the short product fractions below C8, excludes another 10% of the sample. This results in a total leftover of only around 1.5% of the initial sample size if all constraints are considered and excluded (626 from 43959 samples). This constraint has the highest effect on the achievable efficiencies, reducing the maximum value to a total electrical plant efficiency of around 35%. An explanation consistent with the relationships described in Section 3.1 is again found in the reactor temperature as the most decisive parameter. High plant efficiencies are generally enabled and promoted by increasing reactor temperatures. In contrast to the long-chain fractions, an increase in the FT reactor temperature for the short-chain hydrocarbons results in an increase in their proportion of the product output. Reducing their share on the final product is therefore generally associated with a reduction in achievable plant efficiencies for the plant configuration considered here. Unlike the previous constraints, this constraint allows us to restrict the operating parameter range for the following optimisation, where the upper temperature range of the hot trap can be neglected as it is unlikely to provide a product composition within the defined constraints.
The importance of the constraints, especially those related to the product composition, are further highlighted by Fig. 6, which shows the relation between the constrained parameters and electrical efficiencies of all samples. Whereas the limits of the process constraints do not have a substantial impact on achievable efficiencies, especially the limit on the amount of short-chain hydrocarbons does have a considerable impact on efficiency. Starting from a share of 20 mass% of hydrocarbons below C8, any reduction of this constraint results in a steep decline in achievable efficiencies. A similar trend, albeit to a lesser extent, can also be seen when the share of long-chain hydrocarbons is restricted. Nevertheless, low amounts of long-chain product fractions do not necessarily preclude achieving high efficiencies.
The strong impact of the introduced product-related constraints on process efficiencies underlines the future need for further detailed analysis of the product composition requirements that need to be met to enable use as a near drop-in fuel in the context of decentralised applications. With a better understanding of the requirements, an increase in plant complexity, e.g. through more extensive product separation, can then be evaluated in terms of its overall impact (on efficiency, costs and product composition).
Fig. 7 Breakdown of the cost components of the NPC for the baseline scenario and the 2050 scenario (figures do not add up precisely due to rounding). |
This is in line with the interrelation between the electrical efficiency and the resulting NPC shown in Fig. 4. As the electrical efficiency mainly affects the direct OPEX via the required electrical energy. It further supports the approach to perform the process optimization based on a maximization of the electrical efficiency instead of a minimisation of the NPC which are underlying a higher degree of uncertainty due to the broad range in the specific cost assumptions.
For the CAPEX-related components, the Fischer–Tropsch reactor is predominant and exceeds the costs of further core components like the co-SOEC and the DAC. The major reason is provided in Section 3.1. As part of the process internal recirculation, the flow rates to be handled by the FT reactor are greater than those of the co-SOEC and DAC and therefore require larger dimensions, resulting in a higher capital cost.
A comparison with the specific production costs of centralised plants based on current literature shows higher production costs for the baseline scenario, mainly due to the efficiency loss induced by the product-related constraints and higher CAPEX. The difference in CAPEX is subject to the high capital costs of the special core components due to the early stage of development. When adjusted for differences in electricity cost assumptions, the NPC of the 2050 projection are in the same order of magnitude as current projections for centralised plants in literature.20 Here, the advantages of an economy of scale for centralised plants with high production capacity are offset by the advantages of the assumed lower indirect costs for the decentralised modular plants. However, the NPC are still slightly higher due to the difference in efficiency of around 10% caused by the increased product composition requirements considered in this study.
The NPC's sensitivity analysis to an adjustment in cost-related assumptions is shown in Fig. 8. In line with the aforementioned observations, the variation in electricity costs has the most relevant impact on the NPC. A prolongation of the plant lifetime or a decrease of the interest rate shows only minor potential for an additional reduction of the NPC, due to the cost structure which is mainly driven by OPEX. At this point it is important to highlight the relevance of the system boundaries. In our study, electrical energy is considered as an external commodity that is generated outside the system boundaries and procured, for example, via an electricity grid. It can therefore be treated as an operating cost. If it is necessary to invest in a dedicated energy supply, e.g. if there is no grid with a sufficient share of renewable energy at the location of operation, the system boundary should be extended to encompass all relevant equipment for the required energy supply. In this case, the resulting electricity supply cost is derived from the equipment costs rather than the operation costs and would thus be directly affected by the interest rate, significantly increasing the sensitivity of the NPC to this parameter. However, the evaluation and optimisation of the upstream process chain to further cover a stable decentralised supply of renewable electricity is beyond the scope of this work.
Fig. 8 Sensitivity of the NPC to a variation of ±80% in commodity costs, CAPEX factors and OPEX factors based on the assumptions described in Section 2.5. |
There are no further significant impacts of single cost-components on the NPC in addition to the electricity costs. Additional major effects are exhibited only by a specific variation of higher-level cost groups, such as a general increase in direct CAPEX.
A consideration of the uncertainties underlying the assumed cost assumptions leads to the NPC bandwidths shown in Fig. 9. Based on the uncertainty ranges presented in Table 4, the baseline scenario exhibits a significant variation, resulting in a wide range of estimates for the 95% confidence interval, from approximately 3.20 € per l to 6.15 € per l. The interquartile range, which includes the middle 50% of the results, is about 4.00 € per l to 5.00 € per l. With a span between approximately 1.50 € per l and 2.75 € per l for the 95% confidence interval, the costs of the 2050 scenario is considerably lower. The interquartile range is between around 1.85 € per l and 2.25 € per l. Because of the similar cost structures in both the baseline and 2050 scenarios, the relative spread of cost ranges is similar in both cases.
Fig. 9 Uncertainty assessment of the NPC. The box shows the interquartile range – the middle 50%. The whiskers define the 95% confidence interval. |
This study shows that, under the assumptions made, in the long term, there is no significant difference in efficiency and production costs between the small modular units assessed in this study and large centralised plants as found in the current literature. The cost advantages of large-scale plants due to economy of scale are offset by the lower indirect costs of small modular plants, e.g. due to unnecessary service buildings and ease of plant operation. Net production costs of kerosene are estimated with high probability to be between around 3.20 € per l to 6.15 € per l in the baseline scenario and around 1.50 € per l and 2.75 € per l in 2050 under the assumptions made.
For this study, an open-source Python-based process modelling framework and a generic method chain were developed that can be flexibly used for other process setups. It is successfully applied to provide comprehensive insights into process interrelationships, achievable plant efficiencies, net production costs of kerosene and underlying key operating parameters for a modular power-to-liquid process unit of low complexity, taking into account various constraints. For the process setup considered in this study, the Fischer–Tropsch reaction temperature is generally identified as the most decisive operation parameter throughout the process, while the operating temperatures of the hot trap and cold trap, where the gaseous and liquid fractions are separated, have the greatest influence on the kerosene fraction of the final product composition.
This study shows that additional work is needed to consider product composition requirements to meet fuel standards in order to better understand the potential future systemic role of decentralised production of certified products. Future studies should therefore refine the product-related constraints, as these have a significant impact on the required plant complexity, plant efficiency and production costs, and thus on possible strategies for technology implementation in the energy system.
An additional focus should be on the evaluation of decentralised supply strategies for the required feedstocks, in particular electrical energy. Where a supply via the electricity grid is not technically or environmentally feasible, a required decentralised supply of renewable energy may increase electricity costs and material demand and have an impact on economic or environmental competitiveness with other technologies or supply strategies. Such studies could also take into account current regulations regarding the certification of a sustainable product. This is particularly relevant for issues of current interest such as the required additionality of renewable energy capacity or the temporal correlation of renewable energy supply and electricity consumption as defined by the delegated regulation of the European Commission11 for the production of certified sustainable fuels.
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