CO2 EMISSION REDUCTION BY MEANS OF INDUSTRIAL CHP IN THE NETHERLANDS

The economic potential of industrial combined generation of heat and power (CHP) in The Netherlands and the associated reduction in CO2 emissions are estimated. A computer model is used in which a simulation and an economic optimization of possible CHP plants are carried out individually for each of the 300 largest energy-consuming industrial plants in The Netherlands. Starting from the present steam consumption, the economic potential is calculated to be about 2200 MW, using a discount rate of 5% and a depreciation time of 25 years. The reduced CO2 emissions would be equivalent to about 4% of the present CO2 emissions in The Netherlands. An expected increase in gas turbine efficiencies of 5% could increase the potential by more than 50%. The CHP potential which might be realized by industry autonomously is likely to be less than 400 MW. With an investment grant from the government of 40%, this capacity can, at best, be doubled. Putting a tax of Dfl 100 per tonne on the emission of CO2 will probably be more effective. In order to realize a large part of the CHP potential, stricter policy measures might be necessary. One measure could be legislation forbidding the use of large-scale steam generation in conventional boilers. Another option is for the utilities to invest in and operate CHP plants by themselves on the understanding that 1 tonne of CO2 avoided may cost 100 Dfl. The latter option is implemented at present.