Strategic Alignment with Fossil-Free Vision 2040
The Vision 2040 of Rabobank aims for a sustainable balance between agricultural production and nature conservation, supporting agricultural entrepreneurs in making crucial future decisions. The focus is on sustainability and creating a ’true value’ economic model that balances economic values with ecological and social values.
The CHP’s (Combined Heat and Power) ability to blend hydrogen and the future complete switch to hydrogen embodies the transition to a sustainable energy supply. This process reflects the broader societal and technological developments towards fossil-free energy sources.
Alignment with Rabobank’s Agrofood Vision 2040
The deployment of modern CHP systems supports Rabobank’s vision of sustainable agriculture and food production, where economic value goes hand in hand with ecological and social values. The CHP contributes to a sustainable energy supply within this vision.
Here are some key points that support this contribution:
Efficiency in Energy Production:
CHP systems convert fuel into both heat and electricity, making them more efficient than traditional methods where heat is lost. This higher efficiency results in lower CO2 emissions per unit of energy produced, contributing to the reduction of the carbon footprint of the energy supply. The CO2 released during combustion in a Combined Heat and Power (CHP) system is used in greenhouse horticulture to enhance the growth of crops. Plants use CO2 in the process of photosynthesis, converting CO2 into oxygen and glucose, a process essential for their growth and development.
Flexibility and Grid Stability:
CHP installations can quickly scale up and down depending on the demand for electricity and heat. This flexibility is crucial for balancing the electricity grid, especially with the increase in variable renewable energy sources such as wind and sun. The ability of CHPs to quickly respond to changes in energy demand helps reduce grid congestion and contributes to the stability of the electricity grid.
Support of Renewable Energy Sources:
CHP systems can be integrated with renewable energy sources, such as biomass, or with geothermal, or adapted for the use of hydrogen as a future, clean fuel. This makes CHPs a flexible solution that can adapt to the changing energy mix and support the transition to more sustainable energy sources.
Contribution to the Energy Transition:
The Dutch Vision 2040 aims for a fully sustainable and fossil-free energy supply. CHPs contribute to this transition by increasing efficiency now and preparing for integration with fully renewable and clean energy sources. The possibility of switching to, for example, 100% hydrogen use in the future positions CHPs as an essential link in achieving the objectives of the energy transition.
Economic Benefits:
In addition to environmental benefits, CHP systems also offer economic advantages through lower operational costs and the possibility of generating income through the sale of excess energy. This makes CHPs not only a sustainable but also an economically attractive choice for energy supply.
The Role of CHP in Grid Stability and Flexibility
The CHP plays a crucial role in providing flexibility and stability to the electricity grid, especially in light of increasing variability from the rise of renewable energy sources. This supports the energy transition and reduces grid congestion.
The role of Combined Heat and Power (CHP) systems in addressing grid congestion in the Netherlands is particularly relevant in the context of growing electricity demand and the rapid increase in renewable energy sources. The expectation for the next 10 years is that the problem of grid congestion will increase, partly due to the acceleration of the energy transition and the increase in electrification, such as the installation of heat pumps, growth in the number of electric vehicles, and the increase in households with solar panels.
The Dutch electricity grid already faces capacity problems, with more electricity being demanded than the grid can transport. This is partly due to the growing interest in renewable energy sources and the increasing energy needs of both individuals and businesses. The energy transition, with the addition of decentralized generation such as wind turbines and solar panels, has further increased the pressure on the grid, as it was not designed for energy flows from two directions.
CHP systems can contribute to reducing this grid congestion by providing flexible, local energy generation. By producing energy close to the point of consumption, CHPs can help reduce the pressure on the electricity grid. Additionally, CHPs can quickly respond to fluctuations in energy demand, playing a significant role in balancing the grid. This is especially important given the variable nature of renewable energy sources such as sun and wind.
Solutions for grid congestion include grid reinforcement, adjustments in grid codes to limit capacity reservation, peak shaving, and innovative technologies such as energy storage and smart grid solutions. These solutions aim to improve the flexibility and capacity of the grid. In the meantime, until roughly 2030, grid congestion is expected to be an increasing problem unless significant grid reinforcements take place.
CHP systems, with their ability to flexibly and locally meet energy needs, can be part of the broader strategy to address grid congestion and support the transition to a more sustainable energy supply.
The document ‘Flexibility in the Electricity System’ (TNO 2023 P11051 September 2023), commissioned by the Ministry of Economic Affairs & Climate, emphasizes the importance of flexibility in the electricity system for supporting the energy transition in the Netherlands. Specifically, it highlights the role of Combined Heat and Power (CHP) systems as crucial technologies for improving this flexibility. CHP installations contribute by their ability to quickly respond to fluctuations in energy demand and supply, which is essential for balancing the electricity grid. This makes them particularly valuable in light of the increasing integration of renewable energy sources, such as wind and sun, which have variable output. The recognition of CHPs in this document highlights their potential to play a key role in achieving a sustainable and flexible energy supply.
Future Developments and Innovations
Taking into account possible future innovations, the plan remains flexible and adaptable. The transition to hydrogen as the primary fuel source for the CHP is an example of how this project responds to future sustainability trends.
The integration of hydrogen into Combined Heat and Power (CHP) systems, such as those of Jenbacher, represents a crucial step towards a more sustainable energy supply. Currently, these gas engines are ready for a standard blending of 5% hydrogen with natural gas, paving the way for future transitions without the need for initial adjustments. For higher blending percentages up to 25/20%, only minimal adjustments are required. This illustrates the adaptability and future-oriented nature of CHP installations in anticipation of the full transition to hydrogen.
The current limitation, however, lies in the absence of a comprehensive infrastructure for the generation and distribution of hydrogen, which forms a significant barrier to large-scale implementation. Nonetheless, there is a clear expectation that significant developments will occur in this area over the next ten years, laying the groundwork for broad acceptance and integration of hydrogen as a core component of the future energy mix. This development promises to position CHPs as front-runners in the energy transition, offering flexible, efficient, and sustainable energy solutions that meet both current and future energy needs.
Conclusion
Investing in a CHP installation is a strategic step towards a more sustainable future, in line with a fossil-free vision for 2040. By emphasizing innovation, sustainability, and flexibility, a CHP positions itself as a significant contribution to the transition to a more sustainable greenhouse horticulture sector. Moreover, the CHP plays a large role in solving grid congestion and is thus a crucial pillar for the energy transition.
Medemblik, March 2024