Future competitive bioenergy technologies in the German heat sector: Findings from an economic optimization approach

TL;DR

This paper uses an economic optimization model to identify cost-effective bioenergy technologies for Germany's heat sector, highlighting biomass residues and wood-based applications as key options for GHG reduction by 2050.

Contribution

It introduces a long-term optimization approach to evaluate the competitiveness of various bioenergy technologies in Germany's future heat sector.

Findings

Biomass residues are highly competitive in hybrid CHP pellet plants.

Wood-based biomass use is most cost-efficient for high-temperature industrial applications.

Bioenergy can significantly contribute to GHG reduction targets by 2050.

Abstract

Meeting the defined greenhouse gas (GHG) reduction targets in Germany is only possible by switching to renewable technologies in the energy sector. A major share of that reduction needs to be covered by the heat sector, which accounts for ~35% of the energy based emissions in Germany. Biomass is the renewable key player in the heterogeneous heat sector today. Its properties such as weather independency, simple storage and flexible utilization open up a wide field of applications for biomass. However, in a future heat sector fulfilling GHG reduction targets and energy sectors being increasingly connected: which bioenergy technology concepts are competitive options against other renewable heating systems? In this paper, the cost optimal allocation of the limited German biomass potential is investigated under longterm scenarios using a mathematical optimization approach. The model results show that bioenergy can be a competitive option in the future. Especially the use of biomass from residues can be highly competitive in hybrid combined heat and power (CHP) pellet combustion plants in the private household sector. However, towards 2050, wood based biomass use in high temperature industry applications is found to be the most cost efficient way to reduce heat based emissions by 95% in 2050.