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Bioenergy potential in Belgorod region, Russia Alexander Samorodov CCGS LLC Sweden December 2013

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Page 1: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Bioenergy potential in Belgorod region, Russia

Alexander Samorodov CCGS LLC

Sweden

December 2013

Page 2: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Belgorod region

Belgorod

Total square – 27.1 thousand km2

Population – 1.54 million people (01.01.2012)

Over 36% of Russia's iron ore concentrate is

produced in the Belgorod region

Belgorod region is the biggest producer of meat

and poultry in Russia – about 1/5 of Russia’s

production

157.1 thousand heads of cattle stock, 2.64 million

pigs, 45.3 million birds (01.01.2012)

Electricity consumption is 15 115 million kWh

(2011)

Electricity generation is 946 million kWh (2011),

6% of consumption

Share of natural gas use for production of energy –

99,3% (2011)

Level of gas provision of populated localities –

98,7% (2011)

The whole amount of gas is delivered to the region

from outside Serious problem – a big amount of

agricultural waste (esp. manure and dung)

Page 3: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Regional programs and measures of state

support of RES and energy efficiency

Long-term target program "Energy saving and energy efficiency improvement in the

Belgorod region in 2010-2015 and target indicators for the period up to 2020”,

approved by the Resolution of the Government of the Belgorod region No. 364-пп, dd.

October 30, 2010

Belgorod region law No. 120 dd. July 12, 2012 "On energy saving and energy efficiency

improvement in the Belgorod region"

Long-term target program "Development of Renewable Energy Sources in the

Belgorod region in 2013-2015 and Target Indicators for 2020", approved by the

Resolution of the Government of the Belgorod region No. 427-pp, dd. October 29, 2012

By the Order of the Belgorod region Government No.300-рп, dd. July 19, 2010, temporary

rules for calculating the "eco-tariffs" for the electric power generated with the use of

renewable energy sources were adopted. On this basis, the Commission on the State

Regulation of Prices and Tariffs in the Belgorod region adopted feed-in tariffs for the

electricity supplied to the grid for:

- the biogas plant of the "Regional Centre for Biotechnology”;

- the biogas plant of "AltEnergo“.

The Governor of the Belgorod region actively supports the development of RES and,

in particular, the idea of distributed bioenergy

Page 4: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Biogas plant “Baitsury” 0.5 MW

JSC "Regional Center for Biotechnology"

Built in 2012

near the pig farm

Biogas plant “Luchki” 2.4 MW

LLC “AltEnergo”

Built in 2012

near the pig farm

Pilot bioenergy projects

Page 5: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Solar power plant 100 kW LLC “AltEnergo”

Built in 2010

Wind power plant 100 kW LLC “AltEnergo”

Built in 2010

Pilot solar and wind projects

1320 modules with active surface 1046 m2 Two types of solar panels: polycrystalline and amorphous

5 wind generators of 20 kW each Tower height: 18 meters Wheel diameter: 10 meters

Page 6: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Research of RES potential

In 2013 CCGS LLC has carried out the research of RES potential and options

of RES development in the Belgorod region with accent on biomass.

This research has been executed for and at the costs of the International

Finance Corporation (IFC), a member of the World Bank Group, within the

framework of Cooperation Agreement between IFC and the Government of the

Belgorod region

To date the research is completed.

Within the framework of the research four reports have been prepared:

1.The Belgorod Region’s Renewable Energy Potential Study (with

projections to 2020)

2.Analysis of feasible renewable energy technologies for the Belgorod

region

3.Location of bioenergy plants in Belgorod region

4.Possible scenarios of bioenergy development in the Belgorod region

for the period up to 2020

Page 7: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Main types of available biomass

Agricultural waste:

o cattle manure

o pig manure

o poultry dung

o straw

o sugar beet tops

Food-industry waste:

o sugar beet pulp

o distillery stillage

o dairy wastes

Wood waste

Municipal Solid Waste (MSW)

Wastewater sludge

Page 8: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Technical energy potential of biomass

Value of energy potential depends on technology applied

Two opposing options have been considered:

Option I “Focus on biogas”

Option II “Focus on gasification/combustion”

Option I suggests that, whenever technically possible, biomass waste is

used for biogas production. Those residues which cannot be seriously

considered as a source of biogas (e.g., wood wastes) are combusted.

Option II anticipates that waste is used as a fuel and supplied for gasification

or combustion, where this is energetically feasible. It was assumed that the

biomass with moisture content not exceeding 65% is used as a fuel; otherwise

the biomass is used as substrate for biogas production.

It should be noted that none of the above two options is a priori better than the

other.

Values of energy potential for these two options give an idea about the range

of technical potential estimation in the region

Page 9: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Technical energy potential of biomass

Results of assessment (for 2014)

Parameter Option I Option II

Energy potential in the terms of coal

equivalent,

million t c.e. (1 t c.e.=29.31 GJ)

1.24 2.51

Potential of biogas production, billion m3

(million t c.e.)

1.55 (1.14) 0.53

Net electricity generation, billion kWh 3.32 5.32

Installed electric capacity, MW 497 797

In the total available electricity production potential, crop production waste has

the largest share (53-60%), followed by poultry waste (21-22%), pig farming

industry waste (8-13%), MSW (6-7%), cattle farming waste (3-5%), any other

sector share is less than 1%

Page 10: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Technical energy potential of biomass Sectoral structure of the bioenergy production potential

Option I: "Focus on biogas".

2014. Total electricity supply 3.32 billion kWh

Option II: "Focus on gasification/combustion".

2014. Total electricity supply 5.32 billion kWh

Page 11: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Economic analysis

of biomass technologies

Comment: gasification and pyrolysis are in the pilot-demonstration stage so far and

applied mainly for wood, therefore they were not considered here

Acceptable conditions for an investor:

•discounted payback period – 8 years (range 5…11 years):

•discount (inflation free) rate – 12%

Indicative values of “green” tariff for energy generated

MSW

Steam

turbine

CHPP

ORC

CHPP

Boiler

house

Steam

turbine

CHPP

Boiler

house

Steam

turbine

CHPP

ICE

CHPP

Boiler

house

Bio-

methane

plant

Electricity euro/MWh 201 310 186 282 160

Heat euro/Gcal 95 98 206

Biomethane euro/th.m3 850

Biogas

Type of energy Unit

Combustion

Straw Poultry dung w/b

Page 12: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Economic analysis

of biomass technologies

Зависимость отпускной цены электроэнергии

от дисконтированного срока окупаемости

160,0

130

150

170

190

210

230

5 6 7 8 9 10 11

Отп

ускн

ая ц

ен

а эл

ект

ро

эне

рги

и,

евр

о/М

Втч

Дисконтированный срок окупаемости, лет

инд баз

Биогазовая ТЭЦ

Discounted payback period, years

Tari

ff o

n e

lectr

icit

y,

eu

ro/M

Wh

Example of some factors influence on electricity tariff for a biogas plant

Page 13: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Economic analysis

of biomass technologies

Поправка к отпускной цене электроэнергии на отпускную

цену на отходы (сгущенный дигестат)

-450

-400

-350

-300

-250

-200

-150

-100

-50

0

0 10 20 30 40 50

По

пр

авка

к о

тпус

кно

й ц

ене

элек

тро

энер

гии

, ев

ро

/МВ

тч

Отпускная цена на отходы (сгущенный дигестат), евро/т

200

100 CH4,нм3/т СВ

Биогазовая ТЭЦ

300

400

500

Price of thickened digestate (25% DM), euro/t

Co

rre

cti

on

of

tari

ff o

n e

lectr

icit

y,

eu

ro/M

Wh

nm3/t DM of substrate

Example of some factors influence on electricity tariff for a biogas plant

Page 14: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Economic analysis

of biomass technologies

Example of some factors influence on electricity tariff for a biogas plant

Biogas CHPP, substrate parameters for pig manure

160,0

0

50

100

150

200

250

300

350

-15 -10 -5 0 5 10 15

Cost of feedstock for substrate excluding delivery, EUR/t

Selli

ng

pri

ce o

f e

lect

rici

ty, E

UR

/MW

h

Example

2040

6080

0 EUR/Gcal

Page 15: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Economic analysis

of biomass technologies

Analytical equation for express estimation of “green” electricity tariff

for a biogas plant

где

where

Page 16: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Feasible technologies, biomass types

and energy potential

Direct combustion – 205 MW

Poultry dung with bedding – 150 MW, investments €600 million

MSW – 55.35 MW, investments €400 million

Anaerobic digestion (biogas) – 201 MW

Pig and cattle manure, poultry dung without bedding – 198.5 MW, investments

€800 million

Wastewater treatment plants – 2.5 MW, investments €10 million

TOTAL: 406 MW, investments €1 810 million

Comment: it is supposed to use corn silage for biogas plants in amount of 2 million tons

of WM per year (655 th. tons of DM per year). It is necessary at least 50 th. hectares of

land for that

Page 17: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Proposed location of biomass clusters

Total number of clusters – 226

Total electrical capacity - 406 MW

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BGUs in livestock farming

Number of potential

clusters with a

breakdown by electrical

capacity of BGUs. The

total number of clusters

is 214

Electrical capacity of

potential clusters with a

breakdown by electrical

capacity of BGUs. The

total capacity of clusters

is 198.9 MW

Page 19: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Limitation of the amount of electricity

sold for feed-in tariff • According to the Russian law, the guaranteed bio-electricity market is

confined to grid companies purchasing electricity by at special prices

in the retail market to offset their grid losses. Grid companies must,

first of all, purchase electricity to offset losses of the RES-based

generating facilities connected to the grid. Other consumers may

purchase RES energy, if they wish, but are not required to do so by

law.

• Grid losses in Belgorod Region do not exceed 900 million kWh per

year.

• Taking into account loss reductions due to the development of a

distributed energy system, only clusters with the total installed

capacity of 100 MW would qualify for a feed-in tariff.

• If the remaining biomass waste is to be effectively put into energy,

then some other incentives have to be applied.

Page 20: Bioenergy potential in Belgorod region, Russia - CCGSccgs.ru/en/publications/presentations/_download/bioenergy... · Bioenergy potential in Belgorod region, Russia ... production

Proposed tools of the regional

bioenergy stimulation policy

Incentives (carrots):

• Feed-in tariff for electricity (set for the candidates selected on a competition

basis)

• Subsidy support of agricultural producers to stimulate the use of organic

fertilizers (digestate processing)

• Special tariffs for waste (municipal solid waste) processing

• Encouraging the use/sale of heat (co-generated with electricity)

Restriction instruments (sticks):

• Tightening up agricultural waste management requirements (at first stricter

requirements could be set to hazard class 3 waste and higher)

• Penalties, fees and other sanctions against improper waste management.

It is proposed that the restriction measures should be applied from 2021

onwards, but articulated from the outset