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    <div class="moz-cite-prefix">Thank Nils,<br>
      It sounds like an opposite result to that of Ontario, Canada where
      the Feed-in Tariff has put all the marginal CO2 policy emphasis 
      on stimulation in the electricity sector.  <br>
      Perhaps Denmark isn't cold enough to care:)<br>
      Alex<br>
      <br>
      <br>
      On 30/07/2012 2:35 AM, EP Engineering wrote:<br>
    </div>
    <blockquote cite="mid:00df01cd6e1d$85a3e4b0$90ebae10$@dk"
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        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
            lang="EN-US">Alex,<o:p></o:p></span></p>
        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
            lang="EN-US">The rational is simple and very Danish. A wide
            natural gas network was constructed in the 80’ties. In order
            for the system to be paid back it was mandatory to take
            natural gas in all areas with the gas network. Local
            communities should enforce this – but they didn’t. Deficit
            rose. Consequently a high tax was put on oil, which was
            reflected on gas becoming attractive. We talked of a “shadow
            tax” on natural gas. Today the gas network has still deficit
            – but is recovering. The “nice” tax comes in handy and has
            been partly directed into environmental taxes.<o:p></o:p></span></p>
        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
            lang="EN-US"><o:p> </o:p></span></p>
        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
            lang="EN-US">Utilities do not pay the tax. Hence electricity
            prices from power producers (large and small) are rather low
            and related to the free Nordpool market – until delivered to
            the consumer. A rather big tax is laid on the electricity
            consumption and this is supplemented by grid transport costs
            and “Public Service Obligations” (PSO) = TAX.<o:p></o:p></span></p>
        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
            lang="EN-US"><o:p> </o:p></span></p>
        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
            lang="EN-US">Only heavy process industry has a straight
            scheme. They pay a little tax on the fuel going to the
            processes regardless of the process being electricity or
            process heat. The “funny” thing is, what happens to their
            surplus energy after the processes. The low temperature heat
            could be wisely used in district heating schemes but this is
            prohibited by the large energy tax going on the surplus
            heat. Hence the energy is wasted!<o:p></o:p></span></p>
        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
            lang="EN-US"><o:p> </o:p></span></p>
        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
            lang="EN-US">You now have a “clear” view of the distorting
            mechanisms. A very simple way of dealing with it, would be
            to rely only on tax on the fuel – both for heating and
            electric purposes – a tax that should only reflect
            environmental matters. This tax needs to be the same all
            over Europe – otherwise the system will not work. Sounds
            easy?<o:p></o:p></span></p>
        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
            lang="EN-US"><o:p> </o:p></span></p>
        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
            lang="EN-US"><o:p> </o:p></span></p>
        <div>
          <p class="MsoNormal"
            style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span
style="font-size:10.0pt;font-family:"Arial","sans-serif";color:navy"
              lang="EN-US">Med venlig hilsen/Best regards<o:p></o:p></span></p>
          <p class="MsoNormal"
            style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span
style="font-size:10.0pt;font-family:"Arial","sans-serif";color:navy"
              lang="EN-US">Nils Peter Astrupgaard<o:p></o:p></span></p>
          <p class="MsoNormal"><a moz-do-not-send="true"
              name="Nils_Peter_Astrupgaard"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><img
                  id="_x0000_i1025"
                  src="cid:part1.09080405.04010808@kingston.net"
                  height="150" width="250"></span></a><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p></o:p></span></p>
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        <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
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            1.0pt;padding:3.0pt 0cm 0cm 0cm">
            <p class="MsoNormal"><b><span
style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:windowtext"
                  lang="EN-US">From:</span></b><span
style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:windowtext"
                lang="EN-US">
                <a class="moz-txt-link-abbreviated" href="mailto:gasification-bounces@lists.bioenergylists.org">gasification-bounces@lists.bioenergylists.org</a>
                [<a class="moz-txt-link-freetext" href="mailto:gasification-bounces@lists.bioenergylists.org">mailto:gasification-bounces@lists.bioenergylists.org</a>] <b>On
                  Behalf Of </b>Alex English<br>
                <b>Sent:</b> 30. juli 2012 00:25<br>
                <b>To:</b> Discussion of biomass pyrolysis and
                gasification<br>
                <b>Subject:</b> [Spam] Re: [Gasification] Potential
                Gasification Winner?<o:p></o:p></span></p>
          </div>
        </div>
        <p class="MsoNormal"><o:p> </o:p></p>
        <div>
          <p class="MsoNormal">Thomas,<br>
            Thanks for the explanation.   Is it felt that the taxes on
            energy there are unevenly or  unreasonably applied? What
            would be the rational for NG prices to be so proportionally
            high?<br>
            Is this not significantly different than all the rest of the
            EU? <br>
            <br>
            Historical price patterns have changed here too with NG
            costing a small fraction of heating oil (and of your NG). 
            Two societies here; the piped and the un-piped. <br>
            <br>
            Regards,<br>
            Alex<br>
            <br>
            On 29/07/2012 1:45 PM, Thomas Koch wrote:<o:p></o:p></p>
        </div>
        <blockquote style="margin-top:5.0pt;margin-bottom:5.0pt">
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Alex</span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"> </span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US">You are right – my explanatiion is not very
              clear. </span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US"> </span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US">In Denmark the electricity price that a
              producer can sell at varies between 4 and 10 €c/kWh – most
              of the time – 5-7 €c/kWh. On top of that is a green
              premium to guaranteed price. For gasifiers it is 10 €c/kWh
              – 74,5 øre/kWh - as far as I remember.  The comsumer pays
              aprox 30 €c/kWh.</span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US"> </span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US">If you use natural gas you pay approx. 1,2
              €/m3 ~ 11-12 €c/kWh + plus cost of gas furnace. </span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US"> </span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US">In this market where a gasifier can sell
              electricity for 100 €/MWh and heat at 70-80-90 €/MWh (due
              to the losses in the transmission grid there are no money
              to pay the extra investment from a biomass boiler to a
              biomass gasifier. If you also take in account that the
              char losses on tha gasifier can be 4-10 times higher than
              for a boiler you end up at a loss.</span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US"> </span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US">This calculations can be different for
              different locations – eg. in Italy there has been
              extremely high green premiums (250-300 €/MWh) for a
              period. But it does not really help if the technology
              developers does not trust the Italian politicians.</span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US"> </span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US">Did that help you? </span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US"> </span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US">Best regards</span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US"> </span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US">Thomas</span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US"> </span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US"> </span><o:p></o:p></p>
          <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
              lang="EN-US"> </span><o:p></o:p></p>
          <div>
            <div style="border:none;border-top:solid #B5C4DF
              1.0pt;padding:3.0pt 0cm 0cm 0cm">
              <p class="MsoNormal"><b><span
style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:windowtext">Fra:</span></b><span
style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:windowtext">
                  <a moz-do-not-send="true"
                    href="mailto:gasification-bounces@lists.bioenergylists.org">gasification-bounces@lists.bioenergylists.org</a>
                  [<a moz-do-not-send="true"
                    href="mailto:gasification-bounces@lists.bioenergylists.org">mailto:gasification-bounces@lists.bioenergylists.org</a>]
                  <b>På vegne af </b>Alex English<br>
                  <b>Sendt:</b> 29. juli 2012 19:21<br>
                  <b>Til:</b> <a moz-do-not-send="true"
                    href="mailto:gasification@lists.bioenergylists.org">gasification@lists.bioenergylists.org</a><br>
                  <b>Emne:</b> Re: [Gasification] Potential Gasification
                  Winner?</span><o:p></o:p></p>
            </div>
          </div>
          <p class="MsoNormal"> <o:p></o:p></p>
          <div>
            <p class="MsoNormal">Thomas,<br>
              I don't understand your comment.<br>
              Could you describe how the price of heat and electricity
              have changed to make "heat more expensive than
              electricity".<br>
              Thanks,<br>
              Alex English<br>
              <br>
              On 29/07/2012 8:23 AM, Thomas Koch wrote:<o:p></o:p></p>
          </div>
          <blockquote style="margin-top:5.0pt;margin-bottom:5.0pt">
            <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
                lang="EN-US">But  - now heat is more expensive than
                electricity – and the cost level we have reached is 2-10
                times the market price. </span><o:p></o:p></p>
            <p class="MsoNormal"><span
style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"
                lang="EN-US">And of course none of the plants are no
                where near a commercial product (apart from one that is
                close to – but 2-4 times too expensive) because the
                investors are looking for projects that have a chance of
                being competitive with in 2-10 years. </span><o:p></o:p></p>
            <p class="MsoNormal"> <o:p></o:p></p>
          </blockquote>
          <p class="MsoNormal"> <o:p></o:p></p>
          <p class="MsoNormal"><br>
            <br>
            <br>
            <o:p></o:p></p>
          <pre>_______________________________________________<o:p></o:p></pre>
          <pre>Gasification mailing list<o:p></o:p></pre>
          <pre><o:p> </o:p></pre>
          <pre>to Send a Message to the list, use the email address<o:p></o:p></pre>
          <pre><a moz-do-not-send="true" href="mailto:Gasification@bioenergylists.org">Gasification@bioenergylists.org</a><o:p></o:p></pre>
          <pre><o:p> </o:p></pre>
          <pre>to UNSUBSCRIBE or Change your List Settings use the web page<o:p></o:p></pre>
          <pre><a moz-do-not-send="true" href="http://lists.bioenergylists.org/mailman/listinfo/gasification_lists.bioenergylists.org">http://lists.bioenergylists.org/mailman/listinfo/gasification_lists.bioenergylists.org</a><o:p></o:p></pre>
          <pre><o:p> </o:p></pre>
          <pre>for more Gasifiers,  News and Information see our web site:<o:p></o:p></pre>
          <pre><a moz-do-not-send="true" href="http://gasifiers.bioenergylists.org/">http://gasifiers.bioenergylists.org/</a><o:p></o:p></pre>
        </blockquote>
        <p class="MsoNormal"><o:p> </o:p></p>
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      <pre wrap="">_______________________________________________
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<a class="moz-txt-link-abbreviated" href="mailto:Gasification@bioenergylists.org">Gasification@bioenergylists.org</a>

to UNSUBSCRIBE or Change your List Settings use the web page
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for more Gasifiers,  News and Information see our web site:
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