Council of the European Union Brussels, 1 August 2014 (OR. en) 12253/14 Interinstitutional File: 2013/0442 (COD) LIMITE ENV 694 ENER 363 IND 215 TRANS 376 ENT 170 SAN 302 PARLNAT 218 CODEC 1670 NOTE From: To: General Secretariat of the Council Delegations No. Cion doc.: 18170/13 ENV 1236 ENER 601 IND 389 TRANS 694 ENT 357 SAN 557 PARLNAT 326 CODEC 3089 - COM(2013) 919 final Subject: Proposal for a Directive of the European Parliament and of the Council on the limitation of emissions of certain pollutants into the air from medium combustion plants - Comments from delegations Delegations will find in the Annex comments received from Lithuania and Finland on the abovementioned proposal. 12253/14 CM/ach DG E 1A LIMITE 1 EN ANNEX LITHUANIA This regulation would contribute to solving the air quality problems relating with biomass, but on the other hand this regulation also must respect the national energy policy of each MS. By setting very stringent emission limits values the proposal could potentially have the adverse effect: it might have negative impact on the possibility to use biomass for central heating or because of the expensive investments it might increase the price of central heating and that all might lead to the central heating decentralization. New EU level requirements must be proportional and do not stimulate irrational investments. According to the current proposal, Member States may exempt medium combustion plants which do not operate more than 500 operating hours per year from compliance with the emission limit values set out in Annex II. The number of operating hours should be increased to the same level as foreseen in the Industrial Emissions Directive which offers exemptions for combustion plants operating less than 1500 hours per year. The normal NOx concentration by using high-value wood products (logs, chopped trees) normally is about 250-350 mg/Nm3. In case of using barks, forest chips, forest pellet other and other various forms of low grade wood or wood waste NOx concentration normally is about 400600 mg/Nm3. By setting very stringent emission limits values the proposal could potentially have the adverse effect by stimulating to use only high-value wood (logs; chopped trees) and eliminating other types of wood fuels such as forest chips, bark, forest pellets and other various forms of low grade wood or wood wastes. 12253/14 CM/ach DG E 1A LIMITE 2 EN Emission limit values (mg/Nm3) for existing and new medium combustion plants SOLID FUELS Solid biomass Other solid fuels Existing combustion plant 1<= - < 5 5<= - <20 20<= - <50 1<= - < 5 5<= - <20 20<= - <50 MW MW MW MW MW MW SO2 400 300 200 400 400 400 NOx 650 650 450 650 650 450 CO 1500 600 600 2000 1000 600 Dust 300 200 100 300 200 100 New combustion plant Solid biomass Other solid fuels SO2 400 300 200 600 400 400 NOx 450 400 300 500 400 300 CO 600 400 400 600 400 400 Dust 100 60 30 100 60 30 12253/14 CM/ach DG E 1A 3 LIMITE EN LIQUID FUELS Heavy fuel oil Liquid fuels other than heavy fuel oil Existing combustion plant 1<= - < 5 5<= - <20 20<= - <50 1<= - < 5 5<= - <20 20<= - <50 MW MW MW MW MW MW SO2 4501 4001 3501 3501 2001 2001 NOx 650 650 650 3502 3002 2002 CO 500 400 300 300 200 200 Dust 1503 1503 1003 1503 1003 503 New combustion plant Heavy fuel oil Liquid fuels other than heavy fuel oil SO2 4501 3501 3501 3501 2001 2001 NOx 4502 3502 3502 3502 3002 2002 CO 400 300 200 300 200 100 Dust 1503 1003 603 1003 603 303 1 For plants which do not operate more than 500 operating hours per year, 850 mg/Nm3 2 For plants which do not operate more than 500 operating hours per year, 450 mg/Nm3 3 For plants which do not operate more than 500 operating hours per year, 200 mg/Nm3 12253/14 CM/ach DG E 1A 4 LIMITE EN GASEOUS FUELS Natural gas Existing combustion plant Gaseous fuels other than natural gas 1<= - < 5 5<= - <20 20<= - <50 1<= - < 20 5<= - <20 20<= - <50 MW MW MW MW MW MW - - - 354 354 354 NOx 200 200 200 2505 2505 2505 CO - - - - - - Dust 400 200 200 400 200 200 SO2 New combustion plant Natural gas Gaseous fuels other than natural gas SO2 - - - 354 354 354 NOx 1006 1006 1006 2005 2005 2005 CO 200 100 100 200 100 100 Dust - - - - - - 4 Biogas 100 mg/Nm3 5 Biogas 320 mg/Nm3 6 For plants which do not operate more than 500 operating hours per year 200 mg/Nm3 12253/14 CM/ach DG E 1A 5 LIMITE EN Emission limit value benchmarks (mg/Nm³) for medium combustion plants other than engines and gas turbines Pollutant Rated thermal Solid biomass Other solid fuels Liquid fuels Natural gas input (MW) NOx Dust Gaseous fuels other than natural gas 1-5 300 300 200 90 1207 > 5 - 50 200 200 150 90 1207 1-5 45 45 45 - 10 > 5 - 50 20 20 20 - 10- 12253/14 CM/ach DG E 1A 6 LIMITE EN FINLAND 1. Comments on ELV questions Regime applicable to plants between 1-5 MW We support specific ELVs for existing and new plants. Considerably lighter investment demand is needed for the smallest plants. For existing plants specific ELVs for peak- and reserve plants operating less than 1 500 hours per year should be applied in all cases where high investments would be required. The current Finnish ELVs for 1-50 MW from 2010 applicable for new and existing plants are presented as an Annex. In our view the implementation of the MCP directive should be done primarily via investments to new plants, thus we are not in favour of delaying ELV application dates for new plants, particularly if these plants would need to be retrofitted later to fulfil the MCP requirements. It might not be necessary to develop less burdensome registration requirements for 1-5 MW plants, as the registration in the MCP should be the least burdensome administrative option for all plants in the scope of the directive. In general, we should aim at finding the least burdensome administrative option for the for the smallest plants; and any changes increasing the administrative burden, such as unclear aggregation rules as commented later, should be avoided. Concerning monitoring, the cost of a monitoring event is rather fixed irrespective of the plant size, so there is clear cost argument to develop less burdensome monitoring to small plants. The monitoring depends a lot on the techniques used (if any) for emission reduction, so monitoring requirements should be discussed only after agreeing on ELVs. The current compromise text leaves a lot of freedom for member states to develop the regime for compliance checks, so we do not think that is necessary to specify a lighter regime for compliance checks for 1-5 MW plants. Regime applicable to plants above 5 MW We support dividing specific ELVs for 5-50 MW plants to two categories. In our current legislation there are technology based divisions at 10 MW or 15 MW depending on the combustion technology and fuel. For liquid and gas fired boilers the ELVs are divided at 15 MW as typically boilers below 15 MW using liquid and gaseous fuels would be fire-tube boilers and above that other boilers types would be dominant. In solid fuel combustion boilers below 10 MW would be grate-fired and above that fluidized beds are dominant technology. Our current ELVs for biomass and peat combustion under 10 MW boilers are considerably different from the MCP Directive proposal. Similarly as for 1-5 MW boilers, for existing plants specific ELVs for peak- and reserve plants operating less than 1 500 hours per year should be applied in all cases where high investments would be required. 12253/14 CM/ach DG E 1A LIMITE 7 EN For 10-50 MW plants the particulate ELVs for biomass and peat should be in line with the Gothenburg protocol. Alternatively other means should be incorporated to the proposal so that the ELVs would consider those plants which are using flue gas condensation. Recent technology study (ÅF-Consult Ltd, 2014) has concluded that solid fuel plants using multicyclone/cyclone separation before flue gas condensation (scrubber) would be able to reach emission level 50 mg/Nm3. From the cost-efficiency view point it would not make sense that these plants invest to other particulate emission reduction device. As low temperature heat from flue gas condensation can be used widely in district heating, this technology choice is widely applied in Finland. 2. Comments to the Directive text (version dated 27.6.2014) General comments We supports the majority of the changes made to the new text. Our proposal is to simplify provisions to the minimum, delete duplication and may-provisions, as suggested in the detailed comments below. Aggregation rules At least at this point we are not supporting any aggregation rules in the MCP Directive proposal. Thus we think that Art. 5.1a, Art. 5a and definition of stack [Art. 3 (15a)] should be deleted. If the upcoming ELV discussions would lead to a risk for misuse of the capacity thresholds, solutions should be discussed only after agreement on ELVs. The purpose of any aggregation rule is to avoid misuse of the threshold limits in legislation. In many practical applications the common stack rule is not the best option to achieve this goal, so other options should be investigated. Common stack rule increases the administrative burden considerably, as it relies on assessment made by competent authority. Imposing common stack rule to 1-5 MW plants would increase the administrative burden drastically, keeping in mind that there are more than 10-fold of plants within 1-5 MW category compared to large combustion plants and in 1-5 MW category much smaller operators are involved. Finally, for the great majority of common stack cases misuse is not the intention of the operator and applying the rule can result to arbitrary ELVs for combustion plants and subsequently unequal treatment of operators. In a typical common stack case a base-load plant burning solid fuel and a peak and reserve load plant burning liquid or gaseous fuel share the same stack with individual flues. In this kind of case the approach suggested in Article 5.1a would lead to unrealistic ELVs (either too high or technically not possible) for both of these boilers. In this case the only realistic way to set the ELVs is what is described in IED Article 30.4 in the last sentence i.e. separate ELVs are set for both boilers in relation to the total rated thermal input of the entire combustion plant. If there will be an agreement to apply common stack, it is essential to apply it solely to new combustion plants. 12253/14 CM/ach DG E 1A LIMITE 8 EN Article 2 Article 2.2: Recovery boilers should be excluded from the scope of the directive. There is only hand full of these plants in Europe under 50 MW (only one in Finland) and so there is no risk for increased emissions from these plants. These plants need to fulfil the recently approved BAT conclusions in four years’ time. It should be further explained why European safety net in needed for these plants. Article 2.3: We propose to delete the word “medium” from Article 2.3 due to the fact that in some cases testing activities for larger combustion plants take place in pilot-scale plants over 1 MW. We are not supporting any additional text to limit the use of exception for research, development and testing activities. These activities should be treated in the same way as in the IED and any measures to prevent misuse should be dealt in national implementation. It is not realistic to limit the sales of energy products, as during the testing small quantities of energy products will be delivered for energy networks. This energy production is not done commercially, so the main purpose of the activity is still research, development and testing. If there are further issues with research, development and testing activities, one way to solve these would be to include these plants on the scope of the directive proposal, but exclude these from the emission limit values and the measurement requirements. Finnish legislation is based on this approach, i.e. these sites would still need a permit if the capacity threshold is exceeded, but the minimum requirements do not apply. Article 3 Changes to definition 16 should be further elaborated. What is the procedure to determine duration of the start-up and shut-down periods? If this is cannot be done without case-by-case consideration, this could increase the administrative burden in registration considerably. Article 4 Article 4.6a-c: There provisions are mostly explanatory and contain guidance rather than actual legal provisions. These could fit better as recitals or could be developed further in a guidance document. Article 5 Article 5.1a: We propose to delete Article 5.1a even if it is not obligatory. The steps a-c go beyond the common stack rule in IED, as the steps contain elements of the common stack aggregation and calculation rules for multi-fuel firing combustion plants (IED Art. 40). This way of calculating only applies to situations where two fuels are combusted simultaneously in one individual combustion plant. It does not function in the situations where two individual combustion plants with separate flues share a common stack with different operational mode. In these cases IED has clearly a different way of calculating the ELVs (IED Article 30.4). Article 5.2: We propose adding separate ELVs for existing plants operating less that 1 500 hours per year in all cases where the Annex II ELVs for existing plants would mean a high investment to existing plants. This can be done either in Article text or in Annex II. 12253/14 CM/ach DG E 1A LIMITE 9 EN Article 5.7: In these cases for the first 10 days competent authority could be simply notified and derogation by competent authority could come into question only after the 10 day period. In most cases the alternative fuels to be used during sudden interruption in the gas supply can be foreseen during the registration process due to the fact that there needs to be technical capability to combust secondary fuels. Article 6 Article 6.4: We propose the text to be replaced with following. “Secondary abatement equipment in medium combustion plant shall be operated continuously in order to meet the emission limit values. Effective continues operation of that equipment shall be recorded.” Article 6.3-4: The order of the provisions could be different, so that “all monitoring results” would logically include the provision presented in the beginning of the Article including current Article 6.4. Annex II ELVs for boilers: It remains unclear how ELVs for the recovery boilers have been derived from BAT conclusions. ELVs for engines: There have been some concerns whether the dust limit value (10 mg/Nm3) can be reached only by using LFO. Slightly higher ELV (Proposal: 20 mg/Nm3) would be justified. Input to the ELV discussions Finland has established minimum ELVs for MCPs 2010 and the values have been updated 2013. Current ELVs are presented as an Annex. These values are relatively new and are largely based in the Finnish understanding on what would be BAT for combustion plants below 50 MW5. More recently data has been collected about the cost of the particulate emission reduction retrofit investment for the existing solid biofuel plants of 1-20 MW. Main finding is that there are considerable differences in cost-efficiency depending on the size of the plant, particularly within the 1-5 MW boiler group as illustrated in the Figure 1 below. The background documents for the MCP proposal have grouped 1-5 MW plants in single category, which does not sufficiently reflect these differences. Furthermore, the cost-efficiency in a Member State level can be very different from the European average. As Finland has already emission reduction requirement for all plants, the nationally applicable baseline is different from the European average and this reduces the costefficiency at member state level. It should be noted that the cost-efficiency of scrubber with heat recovery in negative due to the fact that recovered heat can be utilised and revenues gained. It is not possible to use low temperature heat in all plants. 5 Best Available Techniques (BAT) in Small 5-50 MW Combustion Plants in Finland (In Finnish. English abstract on pages 98-104), Finnish Environment Institute, 2003. Available: http://www.ymparisto.fi/download/noname/%7B8211A686-7117-4F90-938E5EFC49187673%7D/57228 12253/14 CM/ach DG E 1A LIMITE 10 EN Cots of particle emission reduction (EUR/t) 25 000 Operating hours 5000 h/a Emission level before the new investment 200 mg/Nm3 20 000 15 000 10 000 5 000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 -5 000 -10 000 Boiler size (MWfuel) ESP Fabric filter Scrubber Scrubber (heat recovery) Figure 1. Sensitivity of the cost to the boiler size (site specific costs are excluded from the Figure 5.1. Sensitivity of the Costs to Boiler Size (site specific costs are excluded investment cost estimate). Source: ÅF-Consult Ltd, 20146. from the investment cost estimate) The cost-efficiency can be analysed in different operational modes and it is clearly poor when looking at the peak and reserve combustion plants operating less than 1 500 hours per year. The effect is very clear particularly when the investment cost is relatively high, as is the case with particulate emission reduction with ESP/FF/Scrubber in the Figure below. 6 Particle Emission Reduction, Cost Analysis for Existing 1-20 MWfuel Solid Biofuel Plants in Finland, ÅF-Consult Ltd, 2014. Available upon request. 12253/14 CM/ach DG E 1A LIMITE 11 EN Cots of particle emission reduction (EUR/t) 80 000 Boiler size 10 MWfuel Emission level before the new investment 200 mg/Nm3 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 -10 000 0 1000 2000 -20 000 ESP 3000 4000 5000 6000 7000 8000 Operating hours (h/a) Fabric filter Scrubber Scrubber (heat recovery) Figure 2. Sensitivity of the cost to operation hours (site specific cost are excluded from the investment cost estimate). Source: ÅF-Consult Ltd, 2014. Figure 5.2. Sensitivity of the Costs to Operation Hours (site specific costs are excluded the investment estimate) The effect from is typically dependentcost on the investment costs and operating hours. In some specific cases also operational cost are relevant and in the cases where ELVs are achieved via fuel switch this is a major factor influencing the cost. Earlier some similar calculations have been made for large combustion plants, looking at the cost-efficiency of the NOx-reduction for HFO boilers as shown in the figure below. While results cannot be used directly for MCP-boilers, the similar cost curves are probable also for the MCP plants, depending on the investment demand. 12253/14 CM/ach DG E 1A LIMITE 12 EN 110 mg/m3n Figure 3. Cost of NOx emission reduction in boilers using liquid fuels. Source: Pöyry Finland Oy, 2013 (modified)7. The Figure above illustrates the development of cost-efficiency of NOx reduction in the situation where the baseline is emission level of 450 mg/Nm3 with HFO and targets are at three lower levels using LFO and the selection of technology is different in each case. The study has been made as a part of the Finnish input to the LCP BREF review. The case boiler is a 55 MW peak and reserve boiler in district heating network. The dotted line illustrates the fuel associated cost when changing from HFO to LFO (50 % of the fuel cost was allocated to NOx reduction). Main driver for the fuel switch is lower SO2 ELVs in the IED and abatement equipment for SO2 reduction is not an option due to low operational hours. In the figure target 270 mg/Nm3 (grey lines) could be reached with LFO only with minor burner modifications, thus these kind of measures could be required also from emergency plants. It is noteworthy, that as the required emission reduction (450 mg/Nm3 -> 270 mg/Nm3) is smallest, the fuel associated cost is highest in this case. Target 200 mg/Nm3 (light blue lines) could be reached with LFO by changing the Low-NOx burners to most modern technology. While the actual investment is not very high, the cost of reduced emission starts to rise more clearly below 1 500 operational hours. Target 110 mg/Nm3 (dark blue lines) could be reached with LFO by using scrubbers. As the calculations have been made for a typical peak-load plant in district heating network, which only operates few hours per day during the peak-demand, but does this daily during the heating season, the typical secondary treatment technologies (SCR and SNCR) are not applicable due to long start-up times. Target 110 mg/Nm3 using HFO and scrubbers (orange line) shows similar cost curve as for LFO, without the fuel associated cost. 7 Cost analysis of reducing flue gas emissions to achieve the BAT emission levels in peak load boilers using liquid fuels and natural gas, 2013, Pöyry Finland Oy. Available upon request. 12253/14 CM/ach DG E 1A LIMITE 13 EN To conclude, there is solid techno-economical basis for differentiating ELVs for existing plants operating less than 1 500 hours per year in almost all cases where high investment cost technics (ESP, FF, wet abatement technologies etc.) would be needed to be retrofitted to existing plants. In these cases specific ELVs should be based on low investment demand technics (multicyclones, low sulphur fuels, etc.). This possibility should be included in the discussion as third alternative for existing plants, apart from high investment retrofit and seize of the operation. 12253/14 CM/ach DG E 1A LIMITE 14 EN Annex: Current Finnish ELVs for MCP relevant for the council discussions. Table 1. Finnish ELVs for new MCPs (boilers) from 2010 onwards (updated 2013). Rated thermal input (P) Particulates NOx (calculated to NO2) mg/m3n mg/m3n SO2 mg/m3n Liquid fuels1 O2= 3 % O2= 3 % O2= 3 % 1≤P≤15 MW 50 800 350 15<P<50 MW 50 500 350 Gaseous fuels O2= 3 % 1≤P≤15 MW 340 15<P<50 MW 200 Wood and other solid O2= 6 % O2= 6 % 1≤P≤5 MW 200 375 200 5<P≤10 MW 50 375 200 10<P<50 MW 40 375 200 O2= 6 % O2= 6 % O2= 6 % 1≤P≤5 MW 200 500 500 5<P≤10 MW 50 500 500 10<P<50 MW 40 500 500 O2= 6 % O2= 6 % O2= 6 % 50 270 850 biofuels2 Peat Coal 1≤P≤10 MW 12253/14 CM/ach DG E 1A LIMITE 15 EN 10<P<50 MW 1 2 40 270 850 Applicable from 2020 to other liquid fuels than LFO and HFO Reed canary grass, straw, pellets, etc. Table 2. Finnish ELVs for existing MCPs (boilers). These values will be applied to existing boilers latest by 2018. In parenthesis are shown ELVs for reserve and peak-plants operating less than 1 500 hours per year. Rated thermal input (P) Particulates NOx (calculated to NO2) mg/m3n 3 mg/m n SO2 mg/m3n Liquid fuels1 O2= 3 % O2= 3 % O2= 3 % 1≤P≤15 MW 140 (200)2 900 350 (850) 15<P<50 MW 50 (140)2 600 350 (850) Gaseous fuels O2= 3 % 1≤P≤15 MW 400 15<P<50 MW 300 Wood and other solid O2= 6 % O2= 6 % O2= 6 % 1≤P≤5 MW 300 (375) 450 (500) 200 5<P≤10 MW 150 (250) 450 (500) 200 10<P<50 MW 50 (125) 450 (500) 200 Peat O2= 6 % O2= 6 % O2= 6 % 1≤P≤ 5 MW 300 (375) 600 (625) 500 5<P≤10 MW 150 (250) 600 (625) 500 10<P<50 MW 50 (125) 600 (625) 500 biofuels3 12253/14 CM/ach DG E 1A LIMITE 16 EN 1 2 3 Coal O2= 6 % O2= 6 % O2= 6 % 1≤P<50 MW 50 (140) 420 (550) 1100 Applicable from 2020 to other liquid fuels than LFO and HFO. for LFO the ELV is always 50 mg/m3n. Reed canary grass, straw, pellets, etc. Table 3. Finnish ELVs for new MCPs (engines and gas turbines) from 2010 onwards. In parenthesis are shown ELVs for reserve and peak-plants operating less than 1 500 hours per year. Diesel engine (Oil, GI) Diesel engine (Gas, GD) Spark-ignited engine (SG) Dual-fuel engine (Gas, DF) Dual-fuel engine (Oil, DF) Gas turbine NOx NOx (calculated to NO2) (calculated to NO2) ≤ 20 MW > 20 MW mg/m3n SO2 Particulates mg/m3n mg/m3n mg/m3n O2= 15 % O2= 15 % O2= 15 % O2= 15 % 1600 750 (1600) 120 (300) 30(50) 1600 750 (1600) 190 95 (190) 380 190 (380) 2000 750 (2000) 300 20 115 50 12253/14 CM/ach DG E 1A LIMITE 17 EN Table 4. Finnish ELVs for existing MCPs (engines and gas turbines). These values will be applicable to existing plants latest by 2018. In parenthesis are shown ELVs for reserve and peakplants operating less than 1 500 hours per year. NOx SO2 Particulates mg/m3n mg/m3n mg/m3n O2= 15 % O2= 15 % O2= 15 % Diesel engine (Oil, GI) 1850 120 (300) 30(50) Diesel engine (Gas, GD) 1850 300 70 (calculated to NO2) Spark-ignited engine (SG) 190 (250) Dual-fuel engine (Gas, DF) 380 Dual-fuel engine (Oil, DF) 2300 Gas turbine 150 (250) Apart from these tables Finland has introduced ELVs for new emergency plants operating less than 500 hours per year burning liquid or gaseous fuels. ELVs would be applicable to new MCPs from 2020. These values are not relevant for MCP Directive proposal discussion as no corresponding ELVs are proposed for liquid and gaseous fuels. 12253/14 CM/ach DG E 1A LIMITE 18 EN
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