Title: Renewable energy in chemical industry – the case of formic acid production

Authors: Jouko Arvola, Matti Muhos, Pekka Belt, Pekka Kess

Addresses: Department of Industrial Engineering and Management, University of Oulu, P.O. Box 4610, Oulu FI-90014, Finland. ' Department of Industrial Engineering and Management, University of Oulu, P.O. Box 4610, Oulu FI-90014, Finland. ' Department of Industrial Engineering and Management, University of Oulu, P.O. Box 4610, Oulu FI-90014, Finland. ' Department of Industrial Engineering and Management, University of Oulu, P.O. Box 4610, Oulu FI-90014, Finland

Abstract: This paper analyses the economical viability of replacing fossil energy by renewable sources by taking CO₂ emission legislation into account. A single chemical industry case, formic acid production, is studied in a tangible manner to provide a concrete example for industrial managers and legislators. The practical case was supported by examining scientific and other databases. This study indicates that new environmental legislation makes it economically viable to replace fossil energy by renewable sources, such as wood biomass. However, the results indicate that the current and coming legislation do not cover the entire product life cycle of carbon dioxide releasing chemical products. The results of this paper can be utilised by managers of companies with high-energy consumption and/or high usage of fossil raw materials.

Keywords: emissions trading; carbon dioxide; CO2; formic acid; renewable energy; steam production; synthesis gas; wood biomass; peat; sustainable economy; gasification; chemical industry.

DOI: 10.1504/IJSE.2011.042794

International Journal of Sustainable Economy, 2011 Vol.3 No.4, pp.381 - 394

Published online: 04 Oct 2011 *

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