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Sustainable Hybrid Dual Burner

Periodic Reporting for period 1 - bioburner (Sustainable Hybrid Dual Burner)

Periodo di rendicontazione: 2016-06-01 al 2016-09-30

BIOBURNER is an innovative hybrid dual burner that will make biomass burners a technology adequate for industrial processes, with needs for continuous process heat. Burning biomass to generate heat releases no new carbons back into the atmosphere whilst burning fossil-fuels for energy production is the largest source of greenhouse gas emissions from human activities. Current biomass burners have long time response causing long production pauses when the functioning is stopped. Consequently, industries are going back to fossil-fuel or show reluctance upon switching to biomass from fossil fuel. BIOBURNER is a burner that uses 95% biomass and 5% of fossil fuel, combining the low operational cost and environmental benefits of biomass with the instantaneous response of fossil fuel. With BIOBURNER companies will save up to 50% of the operational cost and 95% of carbon emissions as compared to fossil-fuel technologies with a technology with less than 1-year payback.
In order to confirm the feasibility of BIOBURNER, after a four months’ study, we have developed the present report that checks the technical, commercial and financial feasibility of our project. We have analysed the technical developments ahead and prepared the execution plan for the development of the BIOBURNER prototypes. We have performed an in-depth analysis of the target markets out of which we have developed our market strategy and our plan for the BIOBURNER market launch to the international markets. Financially, we have drafted a detailed 5-years financial forecast which has confirmed the potential return on investment of the BIOBURNER project.
The past 4 months we have developed a thorough feasibility study to guarantee the techno-economic viability of our project. Here we present the main areas of focus and the results obtained:
Task 1: Technical feasibility assessment: This task comprises the following activities:
- Defined BIOBURNER product scaling up technical plan, estimated production costs and identified technical challenges for its optimisation and commercialisation
- Defined power ranges for target markets (up to 1MW) and selling price adjustment. To accomplish this task, we have carried out a survey to a sample of potential end users, which has allowed us to target standard ranges the most adapted to their needs.
- Studied biomass feedstocks in order to identify those most suitable based on their high quality, price and locality. BIOBURNER control and monitoring system will be optimised to increase efficiency and sustainability using these alternative fuels during Phase 2.
- Prepared a technical risk assessment and defined mitigation and contingency activities.
Task 2: Partner involvement: We have searched and identified best supply chain parties to participate in BIOBURNER project: manufacturing, biomass supply, distribution and end-users. We have signed collaboration agreements with several of them and have defined the entity profile for those that will be needed in the future (e.g. distribution for broader Europe).
Task 3: Commercial Feasibility assessment.
- Conduced a complete market research and analysis of the manufacturing industries in Europe, with special emphasis in Spain, Portugal and France.
- Completed a study and analysis of competing technologies, identified limitations and advantages
- Evaluated commercial risks and established mitigation strategies.
- Evaluated and subsequent strategy of IP protection for BIOBURNER technology, through an up-to-date Freedom to Operate (FTO) analysis and evaluation of best protection strategy for BIOBURNER technology
Task 4: Financial Feasibility assessment. Months 2-4.
- Evaluate the total investment requirement, financial risks and mitigation strategies.
- Elaborated a 5 year projected cash flow and quantify the expected benefits for D&R, its partners and potential end users.
Task 5. BIOBURNER Business Plan. We have developed a living document projecting 5 years into the future, outlining the necessary collaborative investments, development next-steps and future commercialization efforts. A market and risk analysis has been conducted in order to overcome competing solutions and best satisfy user requirements.
In 2010, industry accounted for around 39% of energy use for heat in EU-27. Some production lines consume a lot of thermal energy, having to spend up large amounts of money due to the high price of fossil-fuels, posing a significant economic burden on industries as prices are generally continually rising. In a global market with more and more competitors, companies therefore need to lower production costs. Industry processes are responsible for a significant share of CO2 emissions (in 2014, industrial processes were responsible for 8.4% of greenhouse gas emissions in Europe). Emissions from the industrial sector come from fossil fuel combustion from manufacturing facilities and from non-energy use of fuels and industrial processes (e.g. heating, drying etc.), with approximately 50% from each use. Biomass currently provides 8% of industry’s final energy. However, biomass technology presents some issues in its applicability to industrial processes i.e. biomass burners have a slower response time compared to gas and oil fired ones. This becomes a significant issue for industries with strict production times where pauses in the supply of heat means production losses. These industries need non-stop highly-reliable thermal energy supply.
BIOBURNER addresses this issue which will bring the following economic and environmental benefits:
Reduce operational risks by increasing reliability of continuous process and fuel supply
Contribute to the decarbonisation of the economy by increasing uptake of biomass technology by industries
Contribute to sustainability of industries by reducing operational costs (lower energy price)
Reduce operational complexity (easier cleaning) by offering a much simpler cleaning process
Reinforce biomass local supply chains by increasing uptake of biomass technologies.