Research Projects and Publications



Site selection of a WtE plant in Iceland based on utilization of value streams

Economics, Policy and Business

Author: Jóhannes Ólafsson
Year: 2023
Supervisors: Einar Jón Ásbjörnsson, Teitur Gunnarsson

Abstract:

In 2021, a feasibility study was carried out on the construction of a so-called waste-to-energy (WtE) plant in Iceland. This thesis is partly based on the findings from this feasibility study. The feasibility study revealed that it was profitable to build one WtE plant in Iceland, which would handle combustible waste from all over the country. It was estimated that if it was decided to continue with the project, it would be possible to build the plant and start operations at the earliest in 2030. The feasibility study states that the plant must have a combustion capacity of up to 130,000 tonnes of combustible waste per year. Such combustion will have a production capacity of 10 MW of electricity and 28 MW of thermal energy. Other possible value streams from a WtE plant of this size are 26000 tons of bottom ash, 22000 tons of scrap metal and approx. 190000 tons of CO$_2$. The feasibility study also reviewed possible site selections, five locations were identified as possible site selections: Álfsnes, Straumsvík, Helguvík, Þorlákshöfn and Grundartangi. These five locations were compared and evaluated based on the transport efficiency of waste to the plant. Other influencing factors that could affect site selection were discussed at the steering group workshop meeting and an analytical hierarchy process (AHP) was performed to assess the impact of other influencing factors on the plant's site selection. Based on the results of transmission efficiency and AHP analysis of other influencing factors, Álfsnes was assessed as the most efficient site selection. In this thesis, a further analysis of possible value streams from the WtE plant will be performed and each of these same site selections will be evaluated based on the utilization of value streams from the WtE plant of this scale. An AHP was used to compare the site selections based on the utilization of energy and possible value streams from the WtE plant. The site selections were evaluated based on the following criteria: change in thermal demand in the nearby district heating systems, available connections to the national electricity grid, population density of nearby urban areas, distance to the nearest port area and future plans for the development of CO$_2$ intensive industries in or close to the sites in selection. Results from the AHP analysis based on the aforementioned criteria revealed that Straumsvík would provide the best possible site selection out of the five locations in question. Further research is needed to determine if the utilization of value streams will outweigh the transport efficiency of waste to the WtE plant.