Biomass gasification in district heating systems – The effect of economic energy policies

Biomass gasification is considered a key technology in reaching targets for renewable energy and CO₂ emissions reduction. This study evaluates policy instruments affecting the profitability of biomass gasification applications integrated in a Swedish district heating (DH) system for the medium-term future (around year 2025). Two polygeneration applications based on gasification technology are considered in this paper: (1) a biorefinery plant co-producing synthetic natural gas (SNG) and district heat; (2) a combined heat and power (CHP) plant using integrated gasification combined cycle technology. Using an optimisation model we identify the levels of policy support, here assumed to be in the form of tradable certificates, required to make biofuel production competitive to biomass based electricity generation under various energy market conditions. Similarly, the tradable green electricity certificate levels necessary to make gasification based electricity generation competitive to conventional steam cycle technology, are identified. The results show that in order for investment in the SNG biorefinery to be competitive to investment in electricity production in the DH system, biofuel certificates in the range of 24–42 EUR/MWh are needed. Electricity certificates are not a prerequisite for investment in gasification based CHP to be competitive to investment in conventional steam cycle CHP, given sufficiently high electricity prices. While the required biofuel policy support is relatively insensitive to variations in capital cost, the required electricity certificates show high sensitivity to variations in investment costs. It is concluded that the large capital commitment and strong dependency on policy instruments makes it necessary that DH suppliers believe in the long-sightedness of future support policies, in order for investments in large-scale biomass gasification in DH systems to be realised.     

National energy policies: Obstructing the reduction of global CO2 emissions? An analysis of Swedish energy policies for the district heating sector

The effect of national energy policies on a local Swedish district heating (DH) system has been studied, regarding the profitability of new investments and the potential for climate change mitigation. The DH system has been optimised regarding three investments: biomass-fuelled CHP (bio CHP), natural gas-fuelled combined cycle CHP (NGCC CHP) and biomass-fuelled heat-only boiler (bio HOB) in two scenarios (with or without national taxes and policy instruments). In both scenarios EU’s tradable CO₂ emission permits are included. Results from the study show that when national policies are included, the most cost-effective investment option is the bio CHP technology. However, when national taxes and policy instruments are excluded, the DH system containing the NGCC CHP plant has 30% lower system cost than the bio CHP system. Regardless of the scenario and when coal condensing is considered as marginal electricity production, the NGCC CHP has the largest global CO₂ reduction potential, about 300 ktonne CO₂. However, the CO₂ reduction potential is highly dependent on the marginal electricity production. Demonstrated here is that national policies such as tradable green certificates can, when applied to DH systems, contribute to investments that will not fully utilise the DH systems’ potential for global CO₂ emissions reductions.     

Biomass gasification opportunities in a district heating system

This paper evaluates the economic effects and the potential for reduced CO₂ emissions when biomass gasification applications are introduced in a Swedish district heating (DH) system. The gasification applications included in the study deliver heat to the DH network while producing renewable electricity or biofuels. Gasification applications included are: external superheater for steam from waste incineration (waste boost, WB), gas engine CHP (BIGGE), combined cycle CHP (BIGCC) and production of synthetic natural gas (SNG) for use as transportation fuel. Six scenarios are used, employing two time perspectives – short-term and medium-term – and differing in economic input data, investment options and technical system. To evaluate the economic performance an optimisation model is used to identify the most profitable alternatives regarding investments and plant operation while meeting the DH demand. This study shows that introducing biomass gasification in the DH system will lead to economic benefits for the DH supplier as well as reduce global CO₂ emissions. Biomass gasification significantly increases the potential for production of high value products (electricity or SNG) in the DH system. However, which form of investment that is most profitable is shown to be highly dependent on the level of policy instruments for biofuels and renewable electricity. Biomass gasification applications can thus be interesting for DH suppliers in the future, and may be a vital measure to reach the 2020 targets for greenhouse gases and renewable energy, given continued technology development and long-term policy instruments.     

Systems analysis of integrating biomass gasification with pulp and paper production - Effects on economic performance, CO2 emissions and energy use

This paper evaluates system aspects of biorefineries based on biomass gasification integrated with pulp and paper production. As a case the Billerud Karlsborg mill is used. Two biomass gasification concepts are considered: BIGDME (biomass integrated gasification dimethyl ether production) and BIGCC (biomass integrated gasification combined cycle). The systems analysis is made with respect to economic performance, global CO₂ emissions and primary energy use. As reference cases, BIGDME and BIGCC integrated with district heating are considered. Biomass gasification is shown to be potentially profitable for the mill. The results are highly dependent on assumed energy market parameters, particularly policy support. With strong policies promoting biofuels or renewable electricity, the calculated opportunity to invest in a gasification-based biorefinery exceeds investment cost estimates from the literature. When integrated with district heating the BIGDME case performs better than the BIGCC case, which shows high sensitivity to heat price and annual operating time. The BIGCC cases show potential to contribute to decreased global CO₂ emissions and energy use, which the BIGDME cases do not, mainly due to high biomass demand. As biomass is a limited resource, increased biomass use due to investments in gasification plants will lead to increased use of fossil fuels elsewhere in the system.     

Impacts of a common green certificate market on electricity and CO2-emission markets in the Nordic countries

The purpose of this study is to analyze the effects of introducing a common Nordic system for tradable green certificates (TGCs) on the electricity market and a future market for tradable CO₂-emission permits (TEPs). In the analysis, the energy-system model generator MARKAL was used to model the electricity and district-heating supply systems in the four Nordic countries Sweden, Norway, Finland and Denmark. It is shown that the introduction of TGC quotas reduces wholesale electricity and TEP prices. The impact on the latter is very pronounced. Retail electricity prices may become lower or higher, depending on the TGC quota, than if obligations to fulfill TGC quotas were absent. The TGC scheme's efficiency in reducing a specific amount of CO₂ emissions is also compared to the corresponding efficiency of a TEP scheme involving a broader range of technologies. Furthermore, obligations to fulfill TGC quotas affect investment incentives for new non-renewable electricity supply. This seems especially true for gas-fired power plants. Finally, it is indicated that electricity supply based on biomass combustion dominates the TGC scheme, at least in the short run.     

Coproduction of district heat and electricity or biomotor fuels

The operation of a district heating system depends on the heat load demand, which varies throughout the year. In this paper, we analyze the coproduction of district heat and electricity or biomotor fuels. We demonstrate how three different taxation scenarios and two crude oil price levels influence the selection of production units to minimize the district heat production cost and calculate the resulting primary energy use. Our analysis is based on the annual measured heat load of a district heating system. The minimum-cost district heat production system comprises different production units that meet the district heat demand and simultaneously minimize the district heat production cost. First, we optimize the cost of a district heat production system based on the cogeneration of electricity and heat with and without biomass integrated gasification combined-cycle technology. We considered cogenerated electricity as a byproduct with the value of that produced by a condensing power plant. Next, we integrate and optimize different biomotor fuel production units into the district heat production system by considering biomotor fuels as byproducts that can substitute for fossil motor fuels. We demonstrate that in district heating systems, the strengthening of environmental taxation reduces the dependence on fossil fuels. However, increases in environmental taxation and the crude oil price do not necessarily influence the production cost of district heat as long as biomass price is not driven by policy measures. Biomotor fuel production in a district heating system is typically not cost-efficient. The biomotor fuels produced from the district heating system have to compete with those from standalone biomotor fuel plants and also with its fossil-based counterparts. This is also true for high oil prices. A carbon tax on fossil CO₂ emissions based on social cost damage will increase the competitiveness of biomass-based combined heat and power plants, especially for BIGCC technology with its high electricity-to-heat ratio.     

Improving the technical, environmental and social performance of wind energy systems using biomass-based energy storage

A completely renewable baseload electricity generation system is proposed by combining wind energy, compressed air energy storage, and biomass gasification. This system can eliminate problems associated with wind intermittency and provide a source of electrical energy functionally equivalent to a large fossil or nuclear power plant. Compressed air energy storage (CAES) can be economically deployed in the Midwestern US, an area with significant low-cost wind resources. CAES systems require a combustible fuel, typically natural gas, which results in fuel price risk and greenhouse gas emissions. Replacing natural gas with synfuel derived from biomass gasification eliminates the use of fossil fuels, virtually eliminating net CO₂ emissions from the system. In addition, by deriving energy completely from farm sources, this type of system may reduce some opposition to long distance transmission lines in rural areas, which may be an obstacle to large-scale wind deployment.     

CO2 emission balances for different black liquor gasification biorefinery concepts for production of electricity or second-generation liquid biofuels

Black liquor gasification (BLG) is currently being developed as an alternative technology for energy and chemical recovery at chemical pulp mills. This study examines how different assumptions regarding systems surrounding the pulp mill affect the CO₂ emission balances for different BLG concepts. The syngas from the gasification process can be used for different applications; this study considers production of renewable motor fuels and electricity generation. Both a market pulp mill and an integrated pulp and paper mill are considered as host mill for the BLG plant. Furthermore, the consequences of limited availability of biomass are shown, i.e., increasing the use of biomass in a mill is not necessarily CO₂-neutral. The results show that the potential to reduce CO₂ emissions by introducing BLG is generally much higher for a market pulp mill than for an integrated pulp and paper mill. Electricity generation from the syngas is favoured when assuming high grid electricity CO₂ emissions where as motor fuel production is favoured when assuming low grid electricity CO₂ emissions. When considering the consequences of limited availability of biomass, the CO₂ emission balances are strongly affected, in some cases changing the results from a decrease to an increase of the CO₂ emissions.     

The role of policy instruments for promoting combined heat and power production with low CO2 emissions in district heating systems

Policy instruments clearly influence the choice of production technologies and fuels in large energy systems, including district heating networks. Current Swedish policy instruments aim at promoting the use of biofuel in district heating systems, and at promoting electric power generation from renewable energy sources. However, there is increasing pressure to harmonize energy policy instruments within the EU. In addition, natural gas based combined cycle technology has emerged as the technology of choice in the power generation sector in the EU. This study aims at exploring the role of policy instruments for promoting the use of low CO₂ emissions fuels in high performance combined heat and power systems in the district heating sector. The paper presents the results of a case study for a Swedish district heating network where new large size natural gas combined cycle (NGCC) combined heat and power (CHP) is being built. Given the aim of current Swedish energy policy, it is assumed that it could be of interest in the future to integrate a biofuel gasifier to the CHP plant and co‐fire the gasified biofuel in the gas turbine unit, thereby reducing usage of fossil fuel. The goals of the study are to evaluate which policy instruments promote construction of the planned NGCC CHP unit, the technical performance of an integrated biofuelled pressurized gasifier with or without dryer on plant site, and which combination of policy instruments promote integration of a biofuel gasifier to the planned CHP unit. The power plant simulation program GateCycle was used for plant performance evaluation. The results show that current Swedish energy policy instruments favour investing in the NGCC CHP unit. The corresponding cost of electricity (COE) from the NGCC CHP unit is estimated at 253 SEK MWh^?1, which is lower than the reference power price of 284 SEK MWh^?1. Investing in the NGCC CHP unit is also shown to be attractive if a CO₂ trading system is implemented. If the value of tradable emission permits (TEP) in such as system is 250 SEK tonne^?1, COE is 353 SEK MWh^?1 compared to the reference power price of 384 SEK MWh^?1. It is possible to integrate a pressurized biofuel gasifier to the NGCC CHP plant without any major re‐design of the combined cycle provided that the maximum degree of co‐firing is limited to 27–38% (energy basis) product gas, depending on the design of the gasifier system. There are many parameters that affect the economic performance of an integrated biofuel gasifier for product gas co‐firing of a NGCC CHP plant. The premium value of the co‐generated renewable electricity and the value of TEPs are very important parameters. Assuming a future CO₂ trading system with a TEP value of 250 SEK tonne^?1 and a premium value of renewable electricity of 200 SEK MWh^?1 COE from a CHP plant with an integrated biofuelled gasifier could be 336 SEK MWh^?1, which is lower than both the reference market electric power price and COE for the plant operating on natural gas alone. Copyright © 2005 John Wiley & Sons, Ltd.     

The production of synthetic natural gas (SNG): A comparison of three wood gasification systems for energy balance and overall efficiency

The production of Synthetic Natural Gas from biomass (Bio-SNG) by gasification and upgrading of the gas is an attractive option to reduce CO₂ emissions and replace declining fossil natural gas reserves. Production of energy from biomass is approximately CO₂ neutral. Production of Bio-SNG can even be CO₂ negative, since in the final upgrading step, part of the biomass carbon is removed as CO₂, which can be stored. The use of biomass for CO₂ reduction will increase the biomass demand and therefore will increase the price of biomass. Consequently, a high overall efficiency is a prerequisite for any biomass conversion process. Various biomass gasification technologies are suitable to produce SNG. The present article contains an analysis of the Bio-SNG process efficiency that can be obtained using three different gasification technologies and associated gas cleaning and methanation equipment. These technologies are: 1) Entrained Flow, 2) Circulating Fluidized Bed and 3) Allothermal or Indirect gasification. The aim of this work is to identify the gasification route with the highest process efficiency from biomass to SNG and to quantify the differences in overall efficiency. Aspen Plus^® was used as modeling tool. The heat and mass balances are based on experimental data from literature and our own experience.Overall efficiency to SNG is highest for Allothermal gasification. The net overall efficiencies on LHV basis, including electricity consumption and pre-treatment but excluding transport of biomass are 54% for Entrained Flow, 58% for CFB and 67% for Allothermal gasification. Because of the significantly higher efficiency to SNG for the route via Allothermal gasification, ECN is working on the further development of Allothermal gasification. ECN has built and tested a 30 kW_th lab scale gasifier connected to a gas cleaning test rig and methanation unit and presently is building a 0.8 MWth pilot plant, called Milena, which will be connected to the existing pilot scale gas cleaning.     

Implications of system expansion for the assessment of well‐to‐wheel CO2 emissions from biomass‐based transportation

In this paper we show the effects of expanding the system when evaluating well‐to‐wheel (WTW) CO₂ emissions for biomass‐based transportation, to include the systems surrounding the biomass conversion system. Four different cases are considered: DME via black liquor gasification (BLG), methanol via gasification of solid biomass, lignocellulosic ethanol and electricity from a biomass integrated gasification combined cycle (BIGCC) used in a battery‐powered electric vehicle (BPEV). All four cases are considered with as well as without carbon capture and storage (CCS). System expansion is used consistently for all flows. The results are compared with results from a conventional WTW study that only uses system expansion for certain co‐product flows. It is shown that when expanding the system, biomass‐based transportation does not necessarily contribute to decreased CO₂ emissions and the results from this study in general indicate considerably lower CO₂ mitigation potential than do the results from the conventional study used for comparison. It is shown that of particular importance are assumptions regarding future biomass use, as by expanding the system, future competition for biomass feedstock can be taken into account by assuming an alternative biomass usage. Assumptions regarding other surrounding systems, such as the transportation and the electricity systems are also shown to be of significance. Of the four studied cases without CCS, BIGCC with the electricity used in a BPEV is the only case that consistently shows a potential for CO₂ reduction when alternative use of biomass is considered. Inclusion of CCS is not a guarantee for achieving CO₂ reduction, and in general the system effects are equivalent or larger than the effects of CCS. DME from BLG generally shows the highest CO₂ emission reduction potential for the biofuel cases. However, neither of these options for biomass‐based transportation can alone meet the needs of the transport sector. Therefore, a broader palette of solutions, including different production routes, different fuels and possibly also CCS, will be needed. Copyright © 2009 John Wiley & Sons, Ltd.     

The forest products industry at an energy/climate crossroads

Transformational energy and climate policies are being debated worldwide that could have significant impact upon the future of the forest products industry. Because woody biomass can produce alternative transportation fuels, low-carbon electricity, and numerous other “green” products in addition to traditional paper and lumber commodities, the future use of forest resources is highly uncertain. Using the National Energy Modeling System (NEMS), this paper assesses the future of the forest products industry under three possible U.S. policy scenarios: (1) a national renewable electricity standard, (2) a national policy of carbon constraints, and (3) incentives for industrial energy efficiency. In addition, we discuss how these policy scenarios might interface with the recently strengthened U.S. renewable fuels standards. The principal focus is on how forest products including residues might be utilized under different policy scenarios, and what such market shifts might mean for electricity and biomass prices, as well as energy consumption and carbon emissions. The results underscore the value of incentivizing energy efficiency in a portfolio of energy and climate policies in order to moderate electricity and biomass price escalation while strengthening energy security and reducing CO₂ emissions.     

Reducing life cycle greenhouse gas emissions of corn ethanol by integrating biomass to produce heat and power at ethanol plants

A life-cycle assessment (LCA) of corn ethanol was conducted to determine the reduction in the life-cycle greenhouse gas (GHG) emissions for corn ethanol compared to gasoline by integrating biomass fuels to replace fossil fuels (natural gas and grid electricity) in a U.S. Midwest dry-grind corn ethanol plant producing 0.19 hm³ y⁻¹ of denatured ethanol. The biomass fuels studied are corn stover and ethanol co-products [dried distillers grains with solubles (DDGS), and syrup (solubles portion of DDGS)]. The biomass conversion technologies/systems considered are process heat (PH) only systems, combined heat and power (CHP) systems, and biomass integrated gasification combined cycle (BIGCC) systems. The life-cycle GHG emission reduction for corn ethanol compared to gasoline is 38.9% for PH with natural gas, 57.7% for PH with corn stover, 79.1% for CHP with corn stover, 78.2% for IGCC with natural gas, 119.0% for BIGCC with corn stover, and 111.4% for BIGCC with syrup and stover. These GHG emission estimates do not include indirect land use change effects. GHG emission reductions for CHP, IGCC, and BIGCC include power sent to the grid which replaces electricity from coal. BIGCC results in greater reductions in GHG emissions than IGCC with natural gas because biomass is substituted for fossil fuels. In addition, underground sequestration of CO₂ gas from the ethanol plant’s fermentation tank could further reduce the life-cycle GHG emission for corn ethanol by 32% compared to gasoline.     

Design of an integrated process for simultaneous chemical looping hydrogen production and electricity generation with CO2 capture

This study was aimed at proposing a novel integrated process for co-production of hydrogen and electricity through integrating biomass gasification, chemical looping combustion, and electrical power generation cycle with CO₂ capture. Syngas obtained from biomass gasification was used as fuel for chemical looping combustion process. Calcium oxide metal oxide was used as oxygen carrier in the chemical looping system. The effluent stream of the chemical looping system was then transferred through a bottoming power generation cycle with carbon capture capability. The products achieved through the proposed process were highly-pure hydrogen and electricity generated by chemical looping and power generation cycle, respectively. Moreover, LNG cold energy was used as heat sink to improve the electrical power generation efficiency of the process. Sensitivity analysis was also carried out to scrutinize the effects of influential parameters, i.e., carbonator temperature, steam/biomass ratio, gasification temperature, gas turbine inlet stream temperature, and liquefied natural gas (LNG) flow rate on the plant performance. Overall, the optimum heat integration was achieved among the sub-systems of the plant while a high energy efficiency and zero CO₂ emission were also accomplished. The findings of the present study could assist future investigations in analyzing the performance of integrated processes and in investigating optimal operating conditions of such systems.     

Reduction of CO2 emission and oil dependency with biomass-based polygeneration

We compare different options for the use of lignocellulosic biomass to reduce CO₂ emission and oil use, focusing on polygeneration of biomass-based motor fuels and electricity, and discuss methodological issues related to such comparisons. The use of biomass can significantly reduce CO₂ emission and oil use, but there is a trade-off between the reductions in CO₂ emission and oil use. Bioelectricity from stand-alone plants replacing coal-based electricity reduced CO₂ emission by 99 kg per GJ biomass input but gave no oil use reduction. Stand-alone produced methanol replacing diesel reduced the CO₂ emission with 38 kg and the oil use with 0.67 GJ per GJ biomass, indicating that a potential CO₂ emission reduction of 90 kg is lost per GJ oil reduced. CO₂ emission and oil use reduction for alternatives co-producing fuel and electricity fall between the stand-alone alternatives. Plug-in hybrid-electric vehicles using bioelectricity reduced CO₂ emission by 75–88 kg and oil use by 0.99–1.2 GJ, per GJ biomass input. Biomass can also reduce CO₂ emission and/or oil use more efficiently if fossil-fuel-fired boilers or electric heating is replaced by district heating from biomass-based combined heat and power generation. This is also true if electricity or motor fuel is produced from black liquor gasification in pulp mills or if wood is used instead of concrete in building construction. Biomass gasification is an important technology to achieve large reductions, irrespective of whether CO₂ emission or oil use reduction is prioritised.     

Techno-economic evaluation of coal-to-liquids (CTL) plants with carbon capture and sequestration

Coal-to-liquids (CTL) processes that generate synthetic liquid fuels from coal are of increasing interest in light of the substantial rise in world oil prices in recent years. A major concern, however, is the large emissions of CO₂ from the process, which would add to the burden of atmospheric greenhouse gases. To assess the options, impacts and costs of controlling CO₂ emissions from a CTL plant, a comprehensive techno-economic assessment model of CTL plants has been developed, capable of incorporating technology options for carbon capture and storage (CCS). The model was used to study the performance and cost of a liquids-only plant as well as a co-production plant, which produces both liquids and electricity. The effect of uncertainty and variability of key parameters on the cost of liquids production was quantified, as were the effects of alternative carbon constraints such as choice of CCS technology and the effective price (or tax) on CO₂ emissions imposed by a climate regulatory policy. The efficiency and CO₂ emissions from a co-production plant also were compared to the separate production of liquid fuels and electricity. The results for a 50,000 barrels/day case study plant are presented.     

ACROPOLIS: An example of international collaboration in the field of energy modelling to support greenhouse gases mitigation policies

Energy models are considered as valuable tools to assess the impact of various energy and environment policies. The ACROPOLIS initiative, supported by the European Commission and the International Energy Agency, used up to 15 energy models to simulate and evaluate selected policy measures and instruments and then compare their impacts on energy systems essentially in terms of costs of greenhouse gas emissions (GHG) reduction and energy technology choice. Four case studies are formulated considering policies and measures on renewable portfolio schemes and internationally tradable green certificates, emissions trading and global GHG abatement target, energy efficiency standards and internalisation of external costs. The main focus of the project is on the electricity sector. From a large set of quantified results, ACROPOLIS provides an international scientific consensus, on some key issues, which could be useful in assessing and designing energy and environment policies at the world, European and national/regional levels. It concludes that the Kyoto targets (and their continuation beyond 2010 in specific scenarios) could be achieved at a cost around 1% of GDP through global emissions trading, indicating also that this flexibility mechanism is a more cost-effective instrument for GHG mitigation than meeting the goal domestically without trade. It demonstrates that internalising external costs through a price increase reduces local pollutants (SO_x, NO_x, and others) and it produces other benefits such as triggering the penetration of clean technologies in addition to the curbing of CO₂ emissions.     

Environmental impact assessment of green energy systems for power supply of electric vehicle charging station

The Electric Vehicle (EV) as a clean alternative to Classic Vehicle that use fossil fuels is promoted as an immediate solution to improve the quality parameters of the environment related to the transport sector. The transition to clean electrified mobility must be considered from the sustainability spectrum, and the planning of a strategy related to the implementation of electric vehicles implies, from the beginning, providing clean energy conditions to go toward a green-to-green paradigm. It should be noted that the successful implementation of the “green electro mobility” concept depends heavily on the green energy supply solutions of green electric vehicle, so Electric Vehicle Charging Stations (EV-CS) should be powered by electricity generation systems based on green resources. This research article has as main objective the environmental impact assessment from the perspective of CO₂ emissions embedded in green stand-alone energy systems and the estimation of the environmental benefits of their implementation in the power supply of EV-CS from the perspective of avoided CO₂ emissions compared to the classic electricity supply grid. The results indicate that the green energy systems represent feasible solutions for the independent energy support of electric vehicle charging stations, being able to supply electricity based on on-site available 100% alternative energy sources. Related to 1 kWh of electricity, the CO₂ emissions embedded in these systems represent on average 11.40% of the CO₂ emissions of the electricity supplied through the grid at European level and on average 7.10% of the CO₂ emissions of the electricity supplied through the grid worldwide. Results also show that the average price of 1kWh of electricity generated by the analyzed systems is 4.3 times higher than the average unit price of the European Union grid energy, but this indicator must be correlated with the kgCO₂/kWh cost savings compared to the electricity production from classic power plants.     

Effects on global CO<Subscript>2</Subscript> emissions when substituting LPG with bio-SNG as fuel in steel industry reheating furnaces—the impact of different perspectives on CO<Subscript>2</Subscript> assessment

The iron and steel industry is the second largest user of energy in the world industrial sector and is currently highly dependent on fossil fuels and electricity. Substituting fossil fuels with renewable energy in the iron and steel industry would make an important contribution to the efforts to reduce emissions of CO₂. However, different approaches to assessing CO₂ emissions from biomass and electricity use generate different results when evaluating how fuel substitution would affect global CO₂ emissions. This study analyses the effects on global CO₂ emissions when substituting liquefied petroleum gas with synthetic natural gas, produced through gasification of wood fuel, as a fuel in reheating furnaces at a scrap-based steel plant. The study shows that the choice of system perspective has a large impact on the results. When wood fuel is considered available for all potential users, a fuel switch would result in reduced global CO₂ emissions. However, applying a perspective where wood fuel is seen as a limited resource and alternative use of wood fuel is considered, a fuel switch could in some cases result in increased global CO₂ emissions. As an example, in one of the scenarios studied, a fuel switch would reduce global CO₂ emissions by 52 ktonnes/year if wood fuel is considered available for all potential users, while seeing wood fuel as a limited resource implies, in the same scenario, increased CO₂ emissions by 70 ktonnes/year. The choice of method for assessing electricity use also affects the results.