A new report prepared by GNS Science and the Energy Efficiency Conservation Authority (EECA) shows that large-scale energy users in the Bay of Plenty region of New Zealand can benefit greatly from harnessing geothermal energy for process heating. Not only will businesses reduce their greenhouse gas emissions by switching to geothermal, but will have cost savings within only a few years.
The full Bay of Plenty Regional Energy Transition Accelerator (RETA) report can be accessed via this link: https://doi.org/10_21420/5WWO-JO87
The report covers 28 of the region’s large energy users that consume 14,741 TJ of energy in total, producing 281 kt of C02 per annum to generate process heat for a variety of needs. The report identified most of these carbon emissions are from fossil gas. The good news is, across a range of case studies, EECA found these users can all make a switch to low-carbon alternatives – with geothermal having significant part to play.
The importance of decarbonizing process heat
Reducing the emissions of “process heat” – the heat used in manufacturing, warming spaces, and processing products – is the main objective of EECA’s RETA program. Process heat makes up one-third of New Zealand’s overall energy use, with about 84% being used by the industrial and agricultural sectors. Commercial and public sectors use the rest, mainly for space heating in large buildings.
Across sectors, over half of New Zealand’s total process heat is currently generated by burning fossil fuels. Every year, this is producing over 8 million tonnes of CO2 – approximately 8% of New Zealand’s total annual emissions.
Currently, coal and gas are considered the most economic fuels to produce process heat, mostly by using boiler systems. Two-thirds of process heat is used for low (less than 100°C) and medium (100-300°C) temperature requirements; the remaining third is used for high (>300°C) temperature requirements.
Low-carbon alternatives, like sustainable biomass fuels, electric heating, or tapping into geothermal heat, can replace the fossil fuels directly or the boiler systems entirely to reach these temperature requirements.
The geothermal potential of the Bay of Plenty region
This is the first RETA report to consider geothermal energy as a solution to process heat. For their part, GNS Science provided a general overview of geothermal energy, technology and heat use in New Zealand, a summary of geothermal resources in the Bay of Plenty region, and an assessment of four sites in the region.
“Bay of Plenty is richly endowed with geothermal, not only due to its high temperature systems, but also the widely available low and ambient temperatures,” commented GNS Geothermal Resource Management Specialist Brian Carey.
GNS Scientists found that geothermal heat pumps (GSHPs) could efficiently meet the process heat needs – and reduce emissions – across a range of applications and locations. The case studies included analyses on feasibility of geothermal heat to supply Whakat?ne hospital’s heating, and Whakat?ne Growers greenhouse production.
The report identified geothermal was the optimal fuel switch option using the marginal abatement cost analysis approach for the five applications / sites analyzed.
Benefits of transitioning to geothermal
The report finds that transitioning to geothermal for process hat reduce carbon emissions by hundreds to thousands of tonnes of CO2 per year. Moreover, GSHPs can offset their higher installation and initial capital costs with reduced electricity demand and lower costs due to expected electrical upgrades. Business can benefit from cost savings from this transition within only a few years.
“Using GSHP technology reduces the requirement for infrastructure upgrades too, while eliminating the reliance on fuel transportation and on-site storage. On a regional scale, the broader adoption of GSHP technologies can also be expected to contribute, alleviating load growth pressure on a regional electrical network.” said Brian.
Brian continues, “It’s important that for wider geothermal implementation that we grapple with how the cost of reduced electrical infrastructure capacity is able to offset the usually higher capital costs of a user’s geothermal installation. Then we can further improve the way forward in making geothermal heat technology a more accessible solution.”
Moving forward with the recommendations
The RETA report will provide insight that will help streamline technology and infrastructure investment for local businesses and energy suppliers in the Bay of Plenty region. It will also provide the support and basis needed for these businesses to commit to, collaborate on, and implement their low-carbon transition plans.
“Regional commitment and collaboration are key to realising Bay of Plenty’s pathway to lower emissions and a more self-reliant and resilient industry both now and beyond 2030,” commented EECA Chief Executive, Dr Marcos Pelenur.
The report makes a number of recommendations among which is the allocation of funding for the exploration of the Reporoa Geothermal Field, a national guidance scheme on the consenting process for GSHP low temperature geothermal technologies, and a drilling insurance scheme to de-risk geothermal applications and accelerate decarbonization targets.
Source: GNS Science
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