The economic potential of industrial combined generation of heat and power (CHP) in The Netherlands and the associated reduction in CO2 emissions are estimated. A computer model is used in which a simulation and an economic optimization of possible CHP plants are carried out individually for each of the 300 largest energy-consuming industrial plants in The Netherlands. Starting from the present steam consumption, the economic potential is calculated to be about 2200 MW, using a discount rate of 5% and a depreciation time of 25 years. The reduced CO2 emissions would be equivalent to about 4% of the present CO2 emissions in The Netherlands. An expected increase in gas turbine efficiencies of 5% could increase the potential by more than 50%. The CHP potential which might be realized by industry autonomously is likely to be less than 400 MW. With an investment grant from the government of 40%, this capacity can, at best, be doubled. Putting a tax of Dfl 100 per tonne on the emission of CO2 will probably be more effective. In order to realize a large part of the CHP potential, stricter policy measures might be necessary. One measure could be legislation forbidding the use of large-scale steam generation in conventional boilers. Another option is for the utilities to invest in and operate CHP plants by themselves on the understanding that 1 tonne of CO2 avoided may cost 100 Dfl. The latter option is implemented at present.
- CO emissions