German Climate Technology Initiative (DKTI) · 2017. 8. 29. · Coal Vreoci mine ton 5,210 75.00...

DKTI - Development of a Sustainable Bioenergy

Market in Serbia

German Climate Technology Initiative (DKTI)

Technical assistance module by GIZ

Working Areas DKTI for Project Devlopment

In the private sector, we support the implementation of innovative self-sufficient

bioenergy projects using wood material, organic waste and agro-biomass to substitute

fossil fuels for heat, steam and electricity generation integrating private and public

stakeholders for long-term international technology partnerships.

Therefore three main different working areas has been chosen:

Biogas production for company own process heat consumption or CHP electricity

generation with organic waste or organic waste water (manure, whey etc.) in

cooperation with agro-industry

Straw-combustion projects for process heat /steam generation

Heat generation of wood material (Pellets, Briquettes, Woodchips) for public and

private buildings (Hotels, Schools, Hospitals or Investors/Contractors)

Chart 2

Main Activities DKTI for Project Devlopment

Identification of projects and potential investors for bioenergy heating systems in public

buildings, biogas facilities, facilities for generation of industrial process heat

Consultancy for plant design and project concepts

Elaboration of bankable (pre-) feasibility studies

Support/Intermediation of financial opportunities and investment subsidies

Business Match-Making and election of national and international technology providers

Logistical concepts for agro-biomass

Technical support for permit application and support to increase the efficiency of processes

related to permits and licensing agreements for bioenergy projects

Best-Practice-Documentation, Support of research work in cooperation with Universities,

Capacity-Building

Dialogue-platform for Serbian and International companies and institutional stakeholders to

exchange project ideas, information and experiences

Publishing of success stories, manuals etc.

Chart 3

PRE-FEASIBILITY STUDY

Fuel switch from gas to a straw-fired steam boiler plant

for company Perutnina Ptuj-Topiko

at poultry processing facilities in Backa Topola

Study project assigned by:

Development of a Sustainable Bioenergy Market in Serbia

Deutsche Gesellschaft für

Internationale Zusammenarbeit (GIZ) GmbH

Bože Jankovića 39

11000 Belgrade, Serbia

www.giz.de

Responsible project manager: Thomas Mitschke, Senior Advisor

Study prepared by:

Hermann Wieser

Management & Renewable Energy Consultant

Annastrasse 19

9210 Pörtschach am Wörthersee, Austria

www.wieserconsult.com

Chart 5

Overview of presentation

■ Basic concept

■ Biomass potential of Municipality Bačka Topola

■ General characteristics of straw as renewable fuel

■ Existing gas-fired steam boiler plant at PPT processing factory

■ Proposed plant types and capacity of biomass-boiler

■ Biomass storage (field-storage and on-site storage)

■ Ash handling

■ Primary energy cost of different energy carriers in Serbia

■ Agro-biomass market in Serbia and Backa Topola

■ Economic strategy and evaluation of profitability

(ROI, Pay-back-time, IRR, Sensitivity analysis)

■ Investment structure

■ Time schedule for realisation and next steps

Chart 6

Basic concept

STRAW-FIRED

STEAM BOILER

PLANT

1,7 MWth

Wheat straw

1.563 tons/year

Chart 7

Soya straw

~5.440 MWh

steam

TOTAL STEAM

PRODUCTION

~5.440 MWh/year

Corn straw

Economic and agribusiness snapshot of Backa Topola Municipality

Chart 8

Info Data

Total area 596km2

Number of

settlements23

Total population 33,321

Urban population 18,748

Rural population 14,573

Settlements

Backa Topola, Bagremovo, Backi Sokolac, Bajsa, Bogaras, Gornja Rogatica, Gunaros,

Karadjordjevo, Kavilo, Krivaja, Mali Beograd, Micunovi, Njegosevo, Novo Orahovo, Obornjaca,

Pacir, Panonija, Pobeda, Srednji Salas, Stara Moravica, Sveticevo, Tomislavci, Zobnatica

Agricultural land structure of Backa Topola Municipality

Chart 9

InfoTotal land

area

Agricultural land

Arable land Forest land other land

Utilized Unutilized

Area (ha) 57,050 49,378 1,000 48,868 599 6,073

Share (%) 100% 87% 2% 86% 1% 11%

307 6722.483

3.2964.295

3.0744.438

7.952

22.861

0

5.000

10.000

15.000

20.000

25.000

Bellow1ha

1-2ha 2-5ha 5-10ha 10-20ha 20-30ha 30-50ha 50-10ha over100ha

Agro-biomass potential of Backa Topola Municipality

Chart 10

Average Production (t)

2009-2013

Grain - Straw

proportionTotal straw yield (t)

Agro biomass

potential (t)

(30% of straw yield)

Wheat 51,454 1:1 51,454 15,436

Corn 153,610 1:1 153,610 46,083

Soya 4,563 1:2 9,126 2,738

Total 214,190 64,257

Characteristics of straw bales

Rectangular straw bale

Dimension: 1,2 x 1,2 x 2,5 m

Weight: ~ 400 kg (high density up to 750 kg)

Energy quantity: ~ 1,56 MWh

Heating value: ~ 3,9 kWh/kg

Equivalent: ~150 l heating oil or ~160 m3 gas

One truck with average 20 tons equivalent

to 8.000 litres heating oil or ~8.100 m3 gas

Chart 11

Characteristics of wheat straw

Average grain yield: 6,5 tons/ha

Average straw yield: 5,2 tons/ha

Grain straw proportion: 1 : 0,8

Straw yield Vojvodina: ~ 2,5 tons/ha

Heating value: ~ 3,9 kWh/kg

Mostly baled field crop in Europe

Advanced harvesting technology and experience

available

Experience for energetic use due to clear biomass

directives in Denmark, Great Britain and Spain

Energetic use in Germany, Austria, Southeast

Europe and in particular in Serbia at beginning

Chart 12

Characteristics of corn straw

Average grain yield: 6,8 tons/ha

Average straw yield: 8,9 tons/ha

Grain straw proportion: 1 : 1,3

Straw yield Vojvodina: ~ 5,5 tons/ha

Heating value: ~ 4,1 kWh/kg

Second mostly used field crop in Europe; commonly

used in Southeast Europe and particular in Vojvodina

Advanced harvesting technology and experience

available – similar technology as for wheat straw

Higher water content of corn straw at harvest but this

depends on local conditions

Used for production of agro-pellets

Chart 13

Characteristics of soya straw

Average grain yield: 3,5 tons/ha

Average straw yield: 2,3 tons/ha

Grain straw proportion: 1 : 0,6

Straw yield Vojvodina: ~ 2 tons/ha

Heating value: ~ 3,8 kWh/kg

Increasing demand for growing of soya in Danube

Region area

Baling similar to wheat straw with bale presses

Experience of soya straw baling in Vojvodina

Slightly lower heating value than wheat and

corn straw

Chart 14

Existing gas-fired steam boiler plant at PPT processing factory

Chart 15

Capacity of gas boiler in main use 3.000 kW

2 gas boilers in use of which one will remain as

back-up/one will be removed

Yearly gas consumption around 500.000 m3

Steam is maintained by on/off control of gas burner

Starts around 6 bar – raises pressure

Required pressure: 6-8 bar

Common steam header with existing boiler

Heating of technological water consumption (meat processing)

06:00 – 14:00 hour high consumption. 2 shifts, 5 days/week operation

Cleaning in between weekends

Estimated load curve of existing gas boiler

Chart 16

Figure: Estimated daily load curve based on provided data by Perutnina Ptuj-Topiko

Estimated load curve as basis for new straw-biomass boiler

Chart 17

Figure: Estimated daily load curve as basis for design of new straw-fired biomass boiler

0

0,2

0,4

0,6

0,8

1

1,2

1,4

1,6

1,8

12

05

409

613

817

102

11

22

51

42

91

63

31

83

72

04

12

24

52

44

92

65

32

85

73

06

13

26

53

46

93

67

33

87

74

08

14

28

54

48

94

69

34

89

75

10

15

30

55

50

95

71

35

91

76

12

16

32

56

52

96

73

36

93

77

14

17

34

57

54

97

75

37

95

78

16

18

36

58

56

9

Load curve (hourly) in MW

Biomass Gas

Demand Biomass Gas

%5.246

97% 3%

MWh 5.067 179

Plant type A: WEISS A/S boiler (flow chart)

Chart 18

Figure: Exemplary flow chart of a 3 tons/hour steam boiler plant fired with straw bales provided by company WEISS A

Plant type B: LIN-KA Maskinfabrik A/S

Chart 19

Figure: Cross-section drawing of straw storage and

attached boiler house provided by LIN-KA

Maximum continuous output 1.700 kW

Maximum steam output 2.500 kg/h

Working pressure: 8 bar

Minimum feed water temperature 105°C

Max. fuel volume 450 kg/hour

On-site biomass storage

Storage capacity for one week maximum boiler load capacity during winter

time recommended

Max. fuel demand: 0,4 tons/hour and 68 tons per week

Required storage capacity for 170 bales (avg. bale weight 400 kg)

Chart 20

Bale type Heston

Weight/bale: 400-500 kg

Width 1.200mm

Height 900mm

Length 2.500mm

Heating value ~1.560 KWh

Loading band 21,4 m (8 bales)

Fuel demand 14 – 20 bales/day

Loading times 2 – 3 times/day

Plant type B: LIN-KA Maskinfabrik A/S

Chart 21

Figure: Typical layout plan for straw steam boiler plant provided by LIN-KA Maskinfabrik A/S

Location of biomass plant at production facilities at Backa Topola

Chart 22

Figure: Positioning of boiler house, closed straw storage, open straw storage and optional roads for straw

delivery and removal of ash

Straw storage organisation

Chart 23

Figure: Straw storage organisation according to Serbian Rule Book on Special Fire Provention

Mesures in Agriculture

Bale dimensions w=1.2m, l=2.4m, h=1m

Bale weight = 400kg

Required amount of straw = 1,300t

Number of bales = 3,250

Stacking height = 6 meters

Bales in one pile = 240

Number of piles = 14

Total area required for storage = 32 x 260 m or 0.832 ha

Ash handling

■ The ash from the combustion of uncontaminated agricultural residues

is a valuable fertiliser and can be distributed back to the fields

■ 4% - 10% average ash part from straw remaining after combustion

■ 1.560 tons of straw = 62 - 156 tons of ash/year

Nutrient matter Bottom ash Cyclone ash Micro fly ash

in % of dry matter

Calcium (CaO) 7,8 5,9 1,2

Magnesium (MgO) 4,3 3,4 0,7

Potassium (K2O) 14,3 11,6 48,0

Phosphor (P2O5) 2,2 1,9 1,1

Sodium (Na2O) 0,4 0,3 0,5

Nutrient content of different ash types from straw combustion; Source: Kaltschmitt, Hartmann,

Hofbauer; Springer Verlag 2009

Chart 24

Primary energy cost of different energy carriers in Serbia

Source: Different energy carriers in Serbia and their calorific value and price (not including transport cost);

Desk research of different studies and expert talks Chart 25

Energy carrier UnitCalorific value

in kwh per unit

Price per unit Price per kWh

EUR in Euro Cent

Straw in bales ton 3,900 40.00 1.03

Electricity kWh 1 0.06 5.50

Natural gas m3 10 0.37 3.70

LPG litre 10 0.91 9.06

Diesel litre 9.8 1.16 11.83

Fuel oil (Mazut) kg 11.8 0.35 2.97

Wood chips

(wc = 30%)ton 3,500 55.00 1.57

Pellets, briquettes ton 4,800 150.00 3.13

Coal Vreoci mine ton 5,210 75.00 1.44

Agro-biomass market situation in Backa Topola Municipality

Table: Straw suppliers in Vojvodina

Chart 26

Straw supplier Location

Betacorn doo Sombor

Mediland doo Sombor

Vasa Poljanski Vrsac

Sreckov Dragan Novi Sad

Bun Petar Ada

Most important straw buyers in Backa region are:

Compost producers

Chicken and cattle farms

Agro pellet and briquette factories

Companies producing energy from straw

Straw prices in Serbia in 2015

Chart 27

Product-parity Price

Straw on field EUR/ha 12-24

Straw on field EUR/ton 6-8

Straw loaded on truck EUR/ton 25-29

Straw transported to sellers’ storage up to 50km EUR/ton 38-42

Straw transported to sellers’ storage over 100km EUR/ton 50

Economic strategy

■ Reduction of energy cost of actual 41,00 €/MWh or 28,00 €/t steam

■ Change from fossil to Renewable Energy

■ Greening of company and products

Heat / steam production 5.400 MWh

Gas price 37 €/MWh 222.000

Electricity 1,0% 60 €/MWh 3.240

Staff 10.000 € 10.000

Maintenance 11.000

Depreciation 0

Interest 0

Total 41,00 €/MWh 246.240

28,00 €/t steam

Source: Own calculation of present heat production cost

Chart 28

Evaluation of economic profitability

Chart 29

4 Options are calculated in the feasibility study

Plant type A

Option 1: WEISS A/S technology, automatic crane system, no grant

Option 2: WEISS A/S technology, manual straw handling, IPARD grant

Plant type B

Option 3: LINKA technology, manual straw handling, no grant

Option 4: LINKA technology, manual straw handling, IPARD grant

IPARD Program 2014-2020

Chart 30

Within the IPARD sub-measure “Investment in physical assets concerning

processing and marketing of agricultural and fishery products” the sector of

meat processing (poultry production of Perutnina Ptuj-Topiko) may be eligible for

submitting a project proposal to support the investment in renewable energy

production used for own consumption of the processing factory.

Aid intensity

Aid intensity, expressed as the share of public support in the eligible expenditure of an

investment amounts up to:

50% of total eligible expenditures

Maximum eligible investment expenditure is EUR 1.000.000

Investment cost – Option 4

Source: Data provided by LINKA A/S and own calculations

Chart 31

Investment cost EUR

Project development / permitting 50.000

Buildings (756 m2 x 258 €/m2) 196.000

Machinery and equipment including

straw handling590.000

Miscellaneous 60.000

Total estimated investment cost 896.000

IPARD grant (50% of investment) -448.000

Investment cost after IPARD grant 448.000

Source: Own calculations according to profitability analysis

Chart 32

Evaluation of economic profitability Euro

Investment 896.000

Equity 40% 358.400

Grant 50% 448.000

Loan 10% 89.600

Interest rate / period 6% 10 years

Persons employed / cost per year in € 1 15.000

Installed plant capacity (heat) MWth 1,7

Operation time hours/year 3.200

Heat output per year MWh 5.440

Heat price EUR/MWh 41,00

Input materials (straw bales) tons 1.563

Cost of straw bales EUR/ton 40,00

Evaluation of economic profitability

*) Cost including expenses for fuel, production, operation, no depreciation and interest due to existing plant

**) Cost including expenses for fuel, production, operation, depreciation and interest

■ The project shows a reasonable profitability

ROI – Return on Investment in % 10,4

Payback time in years 9,7

■ Comparison of production cost in MWh and per ton of steam

Existing

gas boilers

New agro-biomass

steam boiler plantDifference

Cost per MWh in € 41,00* 31,50** -9,50

Cost per ton of steam in € 28,00* 21,50** -6,50

Source: Own calculations according to profitability analysis

Chart 33

Evaluation of economic profitability

IRR – Internal rate of return

Source: Own calculations according to profitability analysis

Chart 34

-600.000

-500.000

-400.000

-300.000

-200.000

-100.000

0

100.000

200.000

300.000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Incomes Costs Balance

NPV NPV - Costs increase 10% NPV - Income decrease 10%EUR

34,40%26,50%25,75%

171%155% 154%

0,00%

50,00%

100,00%

150,00%

200,00%

Evaluation of economic profitability

Sensitivity analysis

Source: Own calculations according to profitability analysis

Chart 35

0%

10%

20%

30%

40%

50%

60%

70%

80%

70% 80% 90% 100% 110% 120% 130%

IRR

in

tern

al

rate

of

retu

rn

Change in comparison to the initial valueINVESTMENT COSTS Gas price Straw price

Environmental contribution - CO2 savings

Chart 36

Energy carrier Calorific value CO2 output CO2 savings

1 m3 gas 10 kWh/m3 2 kg/ m3 -

1 ton straw 3.900 kWh/ton - 0,76 kg/ton

1.563 tons straw 3.900 kWh/ton - 1.188 tons*

The calculation is based on the assumption of 0,76 tons CO2-reduction by using one ton of straw (calorific value 3,9

kWh/kg, water content 15%) instead of 1 m3 natural gas (calorific value 10 kWh/m3 and CO2 output of 2 kg/m3)

muliplied with 1.563 tons of straw (1.563 * 0,76 = 1.188). The calculation doen´t include CO2 emissions related to

the harvesting and transport of straw.

Investment structure

Chart 37

Financial sources – Structure of

investmentType of contribution

Investor: Perutnina Ptuj-Topiko Equity, land for construction of biomass plant

Energy fund Equity and/or loan financing/eventually grants

Commercial banks Loan financing

EU IPARD Program Grant

EBRD WeBSEFF Grant, loan

National/regional Government Grants, investment incentives, tax exemptions

OthersNeeds to be determined during financing

negotiations

Time schedule for realisation and next steps

■ Realisation time: 8 – 16 month after assignment

Basic decision for project realisation by management board of company Perutnina

Clarification of financing in terms of equity, bank loans and applying for project funding

Obtaining offer from straw boiler producers and decision for boiler technology and

ordering of machinery and equipment

Project development

Assignment of architect for designing of buildings and achieving of construction

permit based on decision for boiler technology

Assignment of environmental engineering company for applying of environmental

permit based on decision for boiler technology

Chart 38

Contact: – Marijana Nikolic, Project manager-Component Project Development

E-Mail: marijana.nikolic@giz.de

Deutsche Gesellschaft für

Internationale Zusammenarbeit

(GIZ) GmbH

Development of a Sustainable

Bioenergy Market in Serbia

Bože Jankovića 39

11000 Belgrade

Serbia

T +381 11 3912 507

E bioenergy-serbia@giz.de

Thank you for your attention

Chart 39