Thomas,
Thanks for the explanation. Is it felt that the taxes on energy there are unevenly or unreasonably applied? What would be the rational for NG prices to be so proportionally high?
Is this not significantly different than all the rest of the EU?

Historical price patterns have changed here too with NG costing a small fraction of heating oil (and of your NG). Two societies here; the piped and the un-piped.

Regards,
Alex

On 29/07/2012 1:45 PM, Thomas Koch wrote:

Alex

You are right -- my explanatiion is not very clear.

In Denmark the electricity price that a producer can sell at varies between 4 and 10 EURc/kWh -- most of the time -- 5-7 EURc/kWh. On top of that is a green premium to guaranteed price. For gasifiers it is 10 EURc/kWh -- 74,5 øre/kWh - as far as I remember. The comsumer pays aprox 30 EURc/kWh.

If you use natural gas you pay approx. 1,2 EUR/m3 ~ 11-12 EURc/kWh + plus cost of gas furnace.

In this market where a gasifier can sell electricity for 100 EUR/MWh and heat at 70-80-90 EUR/MWh (due to the losses in the transmission grid there are no money to pay the extra investment from a biomass boiler to a biomass gasifier. If you also take in account that the char losses on tha gasifier can be 4-10 times higher than for a boiler you end up at a loss.

This calculations can be different for different locations -- eg. in Italy there has been extremely high green premiums (250-300 EUR/MWh) for a period. But it does not really help if the technology developers does not trust the Italian politicians.

Did that help you?

Best regards

Thomas

*Fra:*[email protected] [mailto:[email protected]] *På vegne af *Alex English
*Sendt:* 29. juli 2012 19:21
*Til:* [email protected]
*Emne:* Re: [Gasification] Potential Gasification Winner?

Thomas,
I don't understand your comment.
Could you describe how the price of heat and electricity have changed to make "heat more expensive than electricity".
Thanks,
Alex English

On 29/07/2012 8:23 AM, Thomas Koch wrote:

    But  - now heat is more expensive than electricity -- and the cost
    level we have reached is 2-10 times the market price.

    And of course none of the plants are no where near a commercial
    product (apart from one that is close to -- but 2-4 times too
    expensive) because the investors are looking for projects that
    have a chance of being competitive with in 2-10 years.



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