CO2 EMISSION REDUCTION BY MEANS OF INDUSTRIAL CHP IN THE NETHERLANDS

The economic potential of industrial combined generation of heat and p ower (CHP) in The Netherlands and the associated reduction in CO2 emis sions are estimated. A computer model is used in which a simulation an d an economic optimization of possible CHP plants are carried out indi vidually for each of the 300 largest energy-consuming industrial plant s in The Netherlands. Starting from the present steam consumption, the economic potential is calculated to be about 2200 MW, using a discoun t rate of 5% and a depreciation time of 25 years. The reduced CO2 emis sions 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 whi ch might be realized by industry autonomously is likely to be less tha n 400 MW. With an investment grant from the government of 40%, this ca pacity 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 real ize a large part of the CHP potential, stricter policy measures might be necessary. One measure could be legislation forbidding the use of l arge-scale steam generation in conventional boilers. Another option is for the utilities to invest in and operate CHP plants by themselves o n the understanding that 1 tonne of CO2 avoided may cost 100 Dfl. The latter option is implemented at present.