Feasibility study to introduce biogas buses in Tartu, Estonia

Feasibility study on the introduction and use of biogas buses in the Tartu City

This publication has been produced with the assistance of the European Union (http://europa.eu). The content of this publication is the sole responsibility of Baltic Biogas Bus and can in no way be taken to reflect the views of the European Union."

Author: OÜ Assets RPM, Tõnis Tõnissoo

Project Manager: Jaanus Tamm , Tartu City Government

Date:11.07.2012

Reviewed by:

Jaanus Tamm , Tartu City GovernmentLennart Hallgren , SL

The Baltic Biogas Bus project will prepare for and increase the use of the eco-fuel Biogas in public transport in order to reduce environmental impact from traffic and make the Baltic region a better place to live, work and invest in.The Baltic Biogas Bus project is supported by the EU, is part of the Baltic Sea Region programme and includes cities, counties and companies within the Baltic region.

Contents1.Summary........................................................................................42.Introduction....................................................................................6

2.1. Objectives of the city of Tartu for transforming public transport more environmentally friendlier..................................................................62.2. Objective of the study.................................................................72.3. Research materials and methodology................................................8

3.The background of introducing biogas as a resource....................................94.General policies and development plans ................................................125.The legislative situation in Estonia.......................................................16

5.1. Public Transport Act...................................................................165.2. Biogas legislation......................................................................175.3. Tax legislation..........................................................................19

6.Biogas in general.............................................................................217.Public transport in the city of Tartu......................................................23

7.1. Description of the bus fleet that services the urban bus lines in Tartu . 23 7.2. Bus lines in the city of Tartu....................................................247.3. Organisation of the public transport in the city of Tartu........................267.4. Passenger volumes, changes in the passenger volumes.........................27

8.Potential raw material sources for biogas in the region of the city of Tartu ......319.The cost of the life-cycle of introducing biogas buses................................38

9.1. Methodology.......................................................................38 9.2. The cost of raw materials.......................................................399.3. The production of biogas.............................................................40 9.4. The refining of biogas............................................................41 9.5. The transport of gas .................................................................43 9.6. Filling system......................................................................44 9.7. Buses...............................................................................45 9.8. Total cost of the life-cycle.....................................................46

10.The external cost of introducing biogas buses........................................49 10.1. Data and methodology.........................................................49 10.2. The costs relating to air pollution............................................49 10.3. The costs relating to climate change........................................53 10.4 Noise related external cost.....................................................56 10.5. The total external cost of urban buses of Tartu...........................57

11.Scenarios for the introduction of biogas buses........................................5912.Presenting biogas buses to the public...................................................62

12.1. Target groups and parties...........................................................6212.2. The benefits and possibilities of the introduction of biogas..................65

12.2.1. Environmental friendliness....................................................6512.2.2. Energy security ....................................................6712.2.3. Financial profitability.............................................................6812.2.4. Support to regional development...............................................7012.3. The weaknesses and dangers of the introduction of biogas...................70

13.Conclusions..................................................................................7414.References..................................................................................77

www.balticbiogasbus.eu

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1. Summary1.1. The available biogas sources would cover the fuel needs of the urban

buses of Tartu even if all of the 51 urban buses were to use biogas as fuel. The average fuel consumption of the urban buses of Tartu: 39kg/100km, and for the total length of the bus lines (3,600,000km/yr) the biogas needs of the buses are 1.404Mkg or 1.95MNm3. The annual landfill gas production volume of the Aardlapalu landfill is evaluated at 2.5Mm3 of biogas or 1.55Mm3 of biomethane. The amount of vegetable and garden wastes in the municipal waste of Tartu would allow for the production of 904,125m3 biogas or 540,000m3 of biomethane even at a low rate of separate collection (50% of vegetable and garden wastes). These two sources would satisfy the needs of the bus fleet. In addition, biogas can be produced from the plant and park wastes that are collected from the city’s greenery areas. When including the mud from sewage works, the total biogas production potential of the city of Tartu is 2.9Mm3/yr.

1.2. The investments in biogas buses are 20% higher per km than in diesel buses.

1.3. Yet the exploitation costs of biogas buses are 16% lower per km than for diesel buses.

1.4. The well to tank (WTT) costs of the introduction of biogas buses are 1.57EUR/km, which is approx. three times higher than for diesel buses. In contrast, the tank to wheel (TTW) costs are 17% lower. The total well to wheel (WTW) costs of gas buses are 2.15EUR and 1.14EUR for diesel buses. However, one has to take into account the fact that with the acquisition of each additional gas bus the WTW costs of introducing gas buses shall reduce until the constructed biogas production, transport and fuelling capacities are reached.

1.5. The external costs (costs for the environment and cost for society) of the introduction of biogas buses are 17% (74 cents/km) lower than for diesel buses and 2.3% (7 cents/km) lower than for natural gas buses. The reduction of external costs comes mainly from the reduction of carbon dioxide emissions: in case of bio gas the carbon dioxide emissions are disregarded as the emitted carbon originates from an open carbon cycle. Natural gas and biogas are equal from the point of view of NOx and PM emissions. As diesel engines have developed, the differences between gas and diesel engines have been reduced down to a minimum. When Euro6 standards enter into force on 31.12.2013, the annual NOx emissions differ 1.4kg per bus in favor of the gas bus. In comparison with the Euro5 standard, the difference has reduced 6 times. In regard to PM emissions, the Euro5 and Euro6 diesel and gas buses achieve equal values.


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1.6. The real emission amounts differ within the limit values of the emission standards. The difference derives from the differences between the experiment setting and specific field conditions. The emissions increase as the speed decreases (diesel bus), and as the mass of the bus, meaning the occupancy, increases (both for the diesel and gas buses).


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2. Introduction

2.1. Objectives of the city of Tartu for transforming public transport more environmentally friendlier

The city of Tartu has stated its environmental cleanliness, energy saving and public transport development objectives and measures in the city’s development documents:

a) Development strategy Tartu 20301 specifies the need to favor public transport and soft traffic that would connect all of the city districts. In accordance with the city of Tartu’s vision for the future, the use of public transport shall be increased to at least half of the total volume of urban transport and by 2030 at least half of the public transport vehicles shall be environmentally friendly, therefore the share of renewable energy usage shall increase considerably. In forming its transport policy, constructing transport infrastructure and subsiding modes of transport, the city shall be guided by the principles of energy conservation, economic efficiency and reduction of greenhouse gasses emissions of traffic. The development strategy of the city of Tartu affirms the city’s readiness to be included in the field of producing innovative alternative energy. Also some opportunities have been identified in the scientific and developmental potential of Tartu. In accordance with strand of action 12.3, the production of bioenergy and the biorecycling of compostable wastes are favored.

b) The most important challenges of the objective of the development plan for 2013-2020 2 of the city of Tartu include increasing the savings from transport organization and increasing the use of renewable energy (pg. 30-31).

c) The developments in the field of transport have been specified in the sector development plan of the transport development plan of the city of Tartu for 2012-20203 , which inter alia specifies as relevant issues: increasing the share of environmentally friendly public transport and improving the availability of biogas. The transport development plan includes the possibility that in the future only gas buses shall be used, where the initial use of natural gas shall be replaced with the use of biogas. The precondition for such scenarios is the positive experience with the 5 gas buses that were introduced on the urban bus lines in Tartu in the beginning of 2011. The

1

http://www.tartu.ee/data/Tartu%202030.doc

2

https://www.tartu.ee/data/Tartu%20linna%20arengukava%20aastateks%202013-2020.pdf

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https://www.tartu.ee/data/Tartu_TRAK.pdf


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transport development plan defines the objective of increasing the share of soft traffic and public transport in the total structure of modes of transportation by 75%. In order to reduce the environmental impacts of the transport sector, the city of Tartu shall implement different measures in accordance with the development plan. One of these measures is to increase the number of environmentally friendly methane gas buses in the city of Tartu and the introduction of biogas in the city’s transport system. The objective is to increase the number of methane gas buses to at least half of the total number of buses that service the urban bus lines by 2018. In addition, the objective of developing parking under beneficial terms for electric and gas vehicles has been defined.

Due to the city of Tartu’s objectives of transforming public transport more economical and more economically friendlier, the city has joined the project Baltic Biogas Bus. This project unites 12 partners from 8 Baltic Sea countries whose common objective is the development and introduction of biogas for use in urban transport, especially public transport, in the interests of energy savings and environmental cleanliness. With the help of analyses that are drafted during the course of the project, the opportunities for the production, marketing and use of biogas are presented, and the strategies and policies for the introduction of clean urban transport are created4.

2.2. Objective of the studyThe objective of this study is to analyze the possibilities and conditions for the use and introduction of biogas buses in the city of Tartu.

This study is based on the contracting authority's terms of reference: 1) A description and analysis of the current situation of the public transport in

the city of Tartu:a) The description shall inter alia include:

a.i) The size of the district’s fleet, the average age of the buses,a.ii) The volume of annual line kilometers,a.iii) The statuses of the regular service contract parties (whether

the carrier is a private undertaking or a municipal enterprise,a.iv) The annual passenger volumes,a.v) The number of bus lines,a.vi) A short description of the existing development documents that

regard public transport,a.vii) A depiction of the results of past studies (e.g. passenger

contentment studies etc.),a.viii) The possible changes in the organizing of public transport

procurements in the future (transferring the right to organize public procurements to the Road Administration).

2) The legislative situation in Estonia – opportunities and hindrances (public transport, biogas, taxes),

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http://www.balticbiogasbus.eu/web/


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3) The potential primary sources of biogas and the developers of biogas production in the region of Tartu,

4) The potential and opportunities for producing biomethane in the city of Tartu,

5) The economic and environmental conditions for using biogas (incl. the advantages in comparison with diesel buses), The economic and environmental benefits of introducing biogas buses in the city of Tartu,

6) The potential scenarios for introducing biogas buses in Estonia, while considering the following:a) The current situation of public transport and legislation, and the future

trends,b) The availability of fuels (biogas, natural gas) and developments in that

field,c) The financing conditions for introducing buses.

7) The presentation of biogas buses to the regulators and the public, The most optimal methods,

8) The application of the results of this study in other regions of Estonia – the possibilities and proposals.

2.3. Research materials and methodologyThis study has been drafted mainly as an overview of existing studies. Specific analyses, e.g. the evaluation of the external costs of introducing biogas buses and lifecycle calculations, have been constructed on the basis of the data from the studies, informative materials and other data mediums. The precise methodology and source information have been described in the relevant chapters.


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3. The background of introducing biogas as a resource

The global economic policy and environmental protection developments have initiated extensive searches for new fuels. The global energy needs are constantly growing; the Far East countries that are enjoying the economic boom, like China and India, have emerged as significant energy consumers. Whereas the availability of conventional fossil fuels (oil and natural gas) that have been the main energy sources until now has become unstable. The majority of the global oil and natural gas reserves are located in politically relatively unstable regions. Also different forecasts have confirmed the depletion of mined fossil fuels. Taking into account the volumes of reserves and sales that were indicated in the annual report from OPEC (see Table 1), it is suggested that the oil reserves might be depleted within two centuries the latest and within 60 years the soonest.

Table 1. Top 10 countries with biggest oil and natural gas reserves, the reserve volumes, annual sales volumes and the estimated time the reserves shall be depleted, based on data from 2010. Data, OPEC report 2011 (OPEC 2011)The lifecycle of the reserves has been determined by dividing the volumes of the reserves by the production output of 2010. The lifecycle of the natural gas reserves is based on the sales on the global market; the real extraction volumes are higher by own-consumption volumes.

Crude oil Natural Gas

StateReserves (109 b)

Yield (103

b/p)Use up (years)

Reserves (109

b)

Yield (103

b/p)

Sale to Global market 109

NM3Use up (years)

Venezuela 269,50 2853,60 259 Russia 46000 610,09 75Saudi Arabia 264,52 8165,60 89 Iran 33090 187,357 177Iran 151,17 3544,00 117 Qatar 25201 96,335 262Iraq 143,10 2358,10 166 Turkmenistan 8340 41,61 200Kuwait 101,50 2312,10 120 Saudi Arabia 8016 87,66 91UAE 97,80 2323,80 115 USA 7075 610,43 12Russia 79,43 9841,30 22 UAE 6091 51,282 119Libya 47,10 1486,60 87 Venezuela 5252 19,728 266Kasachstan 39,80 1333,40 82 Nigeria 5110 28,099 182Nigeria 37,20 2048,30 50 Algeria 4504 83,9 54

Total first 10 1231,1236266,80 93 Total first 10 148679 1816,491 82

Total World 1467,0169744,90 58 Total World 192549 3226,032 60


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Diagram 1. Changes in the price of crude oil in 1987-2012. Monthly average of Brent Spot Price. (Wikipedia, selles EIA 2012)

An important factor that influences the search for alternative energy sources is the constant increase of the price of fossil fuels. The price of crude oil and natural gas futures on the global market has been constantly rising since 2007. On 07/03/2012 at 07.30 AM, the Brent Crude Spot Price of North Sea crude oil was at 122.6USD/barrel (Bloomberg 2012), and the rise of oil prices has been significantly influenced by the Iranian oil embargo on EU member states as an answer to the imposed sanctions (Kopli 2012). The price of natural gas futures (Nymex Henri Hub Future) on 07/03/2012 at 07.21 AM was at 2.30USD/Mmbtu. Thus the availability and price of traditional energy sources are relatively unpredictable and inalterable.

As a solution, the introduction of unconventional natural gases and renewable energy sources has been recommended. Also solid gases (that are found in the hollow spaces within low-permeability rock), methane in the coal layers (the gas in the cracks of coal) and shale gas (gas originating from shale rock or argillite) are classified as unconventional gases (Kaar 2010). Shale gas, which in essence is highly similar to natural gas, is considered to be the most perspective of the three. According to different information, China’s shale gas reserves could cover the energy needs at current levels for at least 300 years (Financial Times 2011) and USA’s shale gas reserves could cover half of the energy needs of the USA in 20 years’ time (Kaar 2010).

The EU has made the strategic decision to use renewable energy sources. On one hand, this reduces the energy dependence on third countries, on the other hand, it will help to fulfill the international obligations. According to the existing


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consumption and production forecasts, the EU’s dependence on imported energy shall rise up to 65% by 20305. The so called 20/20/20 strategic objective of the EU is to reduce the amount of greenhouse gasses by 20% and achieve an annual energy saving of 20% by 2020. In accordance with table A of Annex I of the EU renewable energy directive No.2009/28/EU and the Estonian renewable energy development plan, Estonia must ensure that the share of renewable energy would form 25% of the total final consumption, whereas renewable energy sources must make up 10% of the fuels used in the transport sector.As this study focuses on the gaseous motor fuels, biogas shall be regarded as one important alternative for replacing fossil fuels with renewable energy.

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https://valitsus.ee/UserFiles/valitsus/et/valitsus/arengukavad/majandus-ja-kommunikatsiooniministeerium/Eesti_taastuvenergia_tegevuskava_aastani_2020.pdf.


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https://valitsus.ee/UserFiles/valitsus/et/valitsus/arengukavad/majandus-ja-kommunikatsiooniministeerium/Eesti_taastuvenergia_tegevuskava_aastani_2020.pdf


4. General policies and development plans

a) The European Commission drafted a communication on the energy policy for Europe (COM(2007) 16 ) in 2007, which defined the objectives for fighting climate change and increasing the security and the competitiveness of the EU energy supply by: • Increasing the share of renewable energy to 20% of the total consumption by

2020,• Increasing the share of biofuels to 10% in the transport sector by 2020, • Increasing energy efficiency by 20% by 2020,• Reducing the emission amounts of greenhouse gasses by at least 20% by

2020, in comparison with 1990.b) The specific objectives of the energy policy for each EU member state were adopted with the directive 2009/28/EC on the promotion of the use of energy from renewable sources. In accordance with this directive, Estonia must achieve the following objectives by 2020:• Increase the share of energy from renewable source to 25% of the final

consumption,• The share of energy produced from renewable energy sources in all modes of

transportation must make up at least 10% of the final consumption in the transport sector by 2020. Therefore taking into account the electricity produced from renewable sources. It must also be considered that only sustainable biofuels are considered as renewable biofuels.

c) The objectives and obligations for the member states to reduce to the emission amounts of greenhouse gasses have been specified in decision No. 406/2009/EC by the European Parliament and the council. The common objective of the EU is to reduce carbon dioxide emissions by 30% by 2020, therefore certainly adhering to the objective of reducing carbon dioxide emissions by 20% in comparison with 2005. This decision gives the states, which’ GDP per capita is relatively low, the possibility to increase its carbon dioxideemissions as the economy develops. Estonia has been given the permission to increase its carbon dioxide emissions by 11% in comparison with the levels of 2005.

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As a result of the obligations, Estonia has drafted several development plans that facilitate the fulfilling of the obligations:

d) Competitiveness plan Estonia 20207. In addition to the obligations defined in the EU legal acts, Estonia has defined an objective for ensuring its competitiveness, which states that a situation must be reached by 2020, where the share of no energy source exceeds 50% in the energy balance. The objective of reducing the final consumption of energy is to keep it at the levels of 2010, which presumes limiting energy use, increasing energy efficiency and developing renewable energy solutions in all sectors.The strategy dictates the preferential development of renewable natural resources instead of non-renewable resources. The relevant scientific and developmental activities have been tasked with looking for solutions on how Estonia could increase the efficiency of the existing biomass, i.e. manufacture products of highest possible energy value. In order to fulfill the aforementioned objectives, an analysis of the potential of biogas is regarded as necessary.

e) The national energy management development plan until 2020 8. In accordance with the national development plan for energy management, the share of fuels that are produced from renewable energy sources in the transport sector must reach 10% by 2020. The development plan dictates the drafting of a renewable energy action plan in 2010 and executing that plan. Also the application of the new EU sustainable energy regulations (regulations that state the requirements for the eco-design and the energy efficiency of devices) must be enforced by 2012. The description section of the development plan includes the possible measures for the development of the biofuel market that have been outlined in the study carried out by HeiVäl Consulting OÜ:- Exempting biofuels from excise duty,- Requirement to sell biofuels,- Obligatory use of biofuels in public transport,- Aid for the purchase of buses that have been adapted to the use of

biofuels,- Aid for the installation of biofuel filling station for buses,- Direct aid to the producers of biofuels and/or biomass, in proportion with

the amount produced,- State benefits for preparing the biofuel infrastructure.

7

http://www.valitsus.ee/user files/valitsus/et/riigikantselei/strateegia/eesti2020_final.pdf, 24.04.2011.

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https://valitsus.ee/UserFiles/valitsus/et/valitsus/arengukavad/majandus-ja-kommunikatsiooniministeerium/Energiamajanduse_riiklik_arengukava_aastani_2020.pdf


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f) The Estonian renewable energy development plan until 20209. The renewable energy development plan prognoses the growth in the final consumption of motor fuels by 2020, in comparison with the average of 2005-2008:- 18% in comparison with the energy conservation measures that were

applicable before 2009,- 16% in comparison with the additional energy conservation measures.

In accordance with the development plan, the amount of energy that is produced from renewable sources will be 863ktoe by 2020. Therefore the share of renewable energy sources in the transport sector shall rise from 0% to 2.7% by 2020 and the final consumption of renewable energy sources shall rise from 1ktoe to 92ktoe in comparison with the data from 2010.The development plan includes the task of reviewing the issue of feeding biogas into the natural gas network in the process of bringing actions into accordance with directive 2009/28/EC.The development plan provides several measures for the development of the production and use of biofuels:

- Facilitating the production and consumption of biogas. Within the framework of the measure, an analysis of the available aid options that are offered to biogas shall be performed and the support to investments into manure depositories shall be continued (within the framework of section 1.4.2 "Investments directed to the farm buildings for livestock" of the Rural Development Plan). The objective is to achieve 0.5PJ as the annual energy volume produced from biogas by 2020.

- Adopting public transport to renewable energy. Within the framework of the measure, a funding scheme shall be developed, which considers the possibility of including the requirement of renewable energy usage as a precondition for the state subsiding of public procurement tenders for the transport services for passenger (by 2013), and an investment aid plan shall be developed for adopting public transport to biofuels (and for developing the relevant infrastructure). The objective is to convert 50% of the public transport to using only renewable energy, which would mean a 2% rise in the use of biofuels within the whole transport sector.

- The use of alternative renewable energy sources for transport. The measure covers the development of measures and funding schemes (by 2012) that are directed to increasing the use of vehicles that use other (in addition to electricity) alternative renewable energy sources, and enforcing them. The objective is to reach a situation by 2020, where 1% of the fuels in the transport sector are produced from alternative sources.

- Influencing the structure of vehicle usage. An analysis shall be drafted (by 2012) for developing measures that would influence the structure of

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vehicle usage. The objective is to increase the aid for acquiring environmentally friendly vehicles, and to reduce the amount of fuel used in the transport sector by 2020, in comparison with the situation where this measure is not enforced.

It is forecasted in the national renewable energy development plan that by 2020 the amount of renewable energy consumed shall be greater than the amount produced (-1ktoe). The amount of energy that is produced from biomass in 2020 is forecast to be in the amount of 38ktoe as bioethanol, 51.1ktoe as biodiesel and 0.3ktoe as biogas.

Pursuant to the Kyoto Protocol and other international obligations, Estonia has already prior to the relevant EU regulations entering into force drafted development and action plans for the promotion of renewable energy.

g) The development plan for promoting the use of biomass and bioenergy for the period of 2007-2013 10 considers the wider use of raw materials (timber, energy cultures) that are burned as biomass, oileaginous plants (rape seeds, turnip rape, mustard seeds, oileaginous hemp) used as raw material for biodiesel, ethanol cultures (grains, potatoes, sugar beets) suitable for the production of bioethanol and the wider use of refuse-derived fuels (RDF). Still it has been noted that until now (year 2007) Estonia has not been as active in the production of biogas, which has rapidly developed in the rest of the world.

h) The transport development plan for 2006-2013 11defines the low portion of environmentally friendly vehicles in the rolling stock, inter alia especially buses, as a significant problem. It is regarded as necessary to initiate national programs, which would support the development of environmentally friendly transport technologies. This includes activities for increasing the share of environmentally friendly fuels, incl. developing a mechanism for supporting the introduction of alternative fuels in the transport sector. In accordance with the development plan, the share of the alternative fuels used must increase to 5.75% by 2010.

i) In the public transport development program for 2006-2013 of the transport development plan, the national willingness to support the improvement of public transport rolling stock has been expressed: in respect to introducing sustainable technology (the use of biofuels on buses) and ensuring access for people with special needs (development program pg. 8).

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http://www.agri.ee/public/juurkataloog/BIOENERGEETIKA/bioenergia.pdf

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https://www.riigiteataja.ee/akt/12784604


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5. The legislative situation in Estonia

5.1. Public Transport ActThe Public Transport Act provides the grounds for organizing highway, railway, maritime and air transport. The implementing provisions define inter alia the rules for regular services and the recommended service standards. In addition to the organizational aspect of the bus traffic (development plans, network of bus lines, ticket prices etc.), the local government has the authority to select a carrier. A carrier, with whom a public service contract is signed, may be chosen in one of the three following ways:

a) The carrier shall be selected at a public competition, which’ terms shall be defined by the procuring party. If the presumed fee that is paid to the carrier on the basis of the public service contract exceeds the limits defined in section 15.1 of the Public Procurement Act, the procuring party shall organize a public procurement in accordance with the procedure provided in the Public Procurement Act.

b) A direct contract shall be signed with the carrier:b.i) With a legally exclusive unit that is supervised by a local

competent authority, or in case of a group of competent authorities, at least one local competent authority, that shall perform the inspection, which is similar to the inspection it carries out over its own departments.

b.ii) With a carrier who shall provide the procured passenger transport service on the basis of the public service direct contract in the amount of less than 200,000 kilometers per year.

b.iii) Carriers with special or exclusive rights, as provided in section 17 of the Competition Act.

c) Local government or its legally non-exclusive authority that provides public services by itself.The assets related to the providing of transport services, on the basis of the public service contract, may be owned by the carrier or be transferred into its possession by contracts. A public service contract may be entered into with the carrier for up to 10 years.

The Public Transport Act thus leaves ample possibilities for creating the structure between the city and the carrier. The city of Tartu has used a public procurement with open proceedings to determine the carrier. The used rolling stock is owned by the carrier. The city organizes the ticket sales and compensates each line kilometer according to the contract. The regular services contract has been entered into for a period of five years. Taking into account the short contract period, the increases in the initial investment (in comparison with the rolling stock with conventional diesel motors), which fulfill the environmental protection and energy conservation conditions, may increase the fees of the regular service contract. The legal acts also provide inter alia the options for supporting the public regular services from the state budget. The payment of subsidies to support the regular services by the local government


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may fully or partially be paid from the state budget, if the revenue base of the local government unit is inadequate. In addition, the legislation enables the state subsiding of the purchasing of buses, trams and trolley-buses that offer regular services to cities with a high passenger flow and their immediate local neighbors. When assigning subsidies, the transport capacity of the local government unit and the amount of subsidies assigned during previous periods shall be taken into account. Bus companies may apply for the subsidy and the subsidy shall be directed mainly to the leasing contracts' initial payments. The maximum subsidized sum is 60% of the bus price.Although the legislation has not directly provided for the subsiding of purchasing energy-saving or environmentally clean transport vehicles, the underlying mechanism for assigning rolling stock investments has been created.

5.2. Biogas legislationBiogas has not been defined as a gaseous fuel in the Estonian legislation. Different legal acts regulate the different aspects of the production and use of biogas, but there is no unified legal framework. As the field of producing and using biogas may involve diverse actions, legal acts should be taken into consideration, which are not directly connected with biogas, but which' requirements shall form a basis for organizing actions.

The raw materials for producing biogas

Depending on the input, the raw materials of bio gas are regulated by the following legal acts:

• The input of the digestate is specially grown biomass. According to the plant species that have been used as an energy culture, the following legal acts may be relevant:

o Nature Conservation Act – limitations that apply to the growing of plants in the list of introduced species that might disturb the natural balance,

o Forest Act – under certain conditions the Forest Act might influence the following: A typical energy forest stand – a tree or shrub plantation that is managed uniformly by age shall not be regarded as forest land. The requirements of the Forest Act must be abided by when gathering plant materials from forest land,

o Ambient Air Protection Act and its implementing provision “The requirements for liquid fuels and the criteria for biofuel cleanliness and the verification procedure”, according to which a biofuel is not clean, if:

It has been manufactured from raw materials that have been collected from an area with high environmental value, unless it has been proven that the production of the relevant raw material was not in breach with environmental protection objectives or unless it has been proven that the collection of the raw material was necessary for maintaining the condition of the grassland,


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It has been produced from raw materials that have been collected from an area with high carbon stocks, unless the condition of the area was the same than it was in January 2008,

It has been produced from raw materials that have been acquired from an area that was a peat moor in January 2008, unless it can be proven that the cultivation and collection of this raw material does not result in the draining of previously undrained soil.

Thus the biomass that does not meet the aforementioned raw material requirements is usable for the production of biogas, but the produced biogas is not regarded as an alternative fuel from renewable sources as defined in regulation (EU) No. 2009/28/EC.

• When the input is manure and slurry. The Water Act provides requirements for storing manure. Also Fertilizers Act includes provisions that are applicable to manure and slurry. Although the manure's accordance with the provisions that apply to fertilizers is irrelevant when producing biogas, the provisions of the Fertilizers Act are applicable to the storing of organic fertilizers. The Water Act provides “The water protection requirements for the storage facilities of fertilizers and manure and the storage premises of silage, and the requirements for the use and storage of manure, silage fluids and other fertilizers” (Regulation from the Government of the Republic of Estonia No. 288 of 28/08/2001). The Fertilizers Act also provides the requirements for any biogas processing waste, which might be later sold as fertilizer. The Water Act regulates the limits of fertilizing substances that are introduced into the soil with manure and other fertilizers, this must be taken into account when using processing waste.

• The use of sewage sediments. The use of sewage sediments is regulated by the Water Act and the Waste Act, and the resulting regulation by the Minister of the Environment “The requirements for the use of sewage sediments in agriculture, green area creation and recultivation.” If one wishes to introduce the sewage sediment that is produced in the process of producing gas into the environment, it must be previously stabilized. Sewage sediments shall be regarded as waste even after being stabilized, and the person carrying out the introduction into environment must have a waste permit.

• Separately collected biodegradable waste. Since this is waste, its use is regulated by the Waste Act. The process of producing biogas from waste is regarded as a waste recycling activity. Since the input for producing biogas from waste is waste, the residual digestate is also waste and within the jurisdiction of the Waste Act. This means that the digestate must be recycled or removed as a waste. In the draft legislation of the new Waste Act, the definition of the end of waste has been included. In relation to this, the criteria are being developed for the legislation, so that it would no longer be regarded as waste. The end of waste regulation is important for the use of sewage sediments as biowaste. Probably the end of waste criteria is related with the amount of foreign substances, e.g. glass, plastics etc. Thus the cleanliness of the separately collected biodegradable waste or the prior processing of the waste, before using it for producing gas, might become crucial. Ended waste might be transferred onto the goods market with lowered limitations.


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According to the Ministry of the Environment’s information, the European Commission is considering the enforcement of a target indicator for the separate collection of biowaste within 3-5 years – the draft version has suggested 35-60% of the produced waste, although it shall most likely be presented for each state as X kg/popul./yr, while preserving flexibility for collection (Eek 2011).

As biogas is mainly a methane gas, natural gas provisions that are applicable to the use and production of biogas shall apply. When constructing a biogas production unit, the current legislation that regulates the planning and construction in Estonia (Planning Act, Environmental Impact Assessment and Environmental Management System Act, Building Act) must be taken into account. According to the used raw materials and production technologies, the environmental impact of biogas production must be taken into account, and the requirements of the Water Act, the Ambient Air Protection Act, the Waste Act and the Public Health Act must be abided by. Since biogas is a flammable methane gas, the provisions of the Gaseous Fuel Safety Act apply to the use of biogas. The storage and transport of biogas in pressure vessels shall be guided by the provisions of the Pressure Equipment Safety Act. The requirements of the Pressure Equipment Safety Act and its implementing provisions must also be abided by when constructing a gas station. In respect to the transfer of biogas, the provisions of the Natural Gas Act might be relevant when joining the biogas network or providing network services. As the city of Tartu and its closer neighbors already have a natural gas network, it might be reasonable to use it for the transport of the produced and compliant biogas to the consumer.

5.3. Tax legislationThe Alcohol, Tobacco, Fuel and Electricity Excise Duty Act (hereinafter ATFEEDA) defines all fuels that are used, commercially offered or sold as motor fuels or heating fuels as excise goods. Also biofuels have been defined as fuels. The criteria for the biofuels that are regarded as excise goods are based on the combined nomenclature (CN) codes that are provided in regulation (EEC) No. 2658/87 from the Council and the condition that they have been manufactured from biomass. Therefore the following shall be regarded as biomass: agricultural products (including plant and animal substances), the biodegradable fraction of forest products, waste and residue, and the biodegradable fraction of industrial and municipal waste. Taking into account the conditions provided in section 19.14 of the ATFEEDA, biogas is not classified as a biofuel under ATFEEDA. But at the same time, biogas can be defined as a biofuel, when taking into account that biogas is used in accordance with section 19.1 of that act and that the raw materials of biogas are in accordance with the provisions of sub-section 14, and the provisions of ATFEEDA will not extend to these conditions. According to section 27.1.28 of the ATFEEDA, biofuels were exempted from excise duty tax until 27/07/2011. Thus biofuels (excl. biogas) are taxed with the excise duty tax since 27/07/2011.


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This means that the exemption from excise duty tax for biogas was continued even after 28/07/2011 and biogas may be produced without excise related permits. In comparison, since 01/01/2011 the excise duty rate for natural gas is 23.45 EUR per 1000m3 or 0.023EUR/m3 (the volume of natural gas is calculated at 20°C and 1.01325bar).


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6. Biogas in general

Biogas is a gas with high methane content, which is produced from the anaerobic decomposition of wastes of plant or animal origin, e.g. at landfills, biogas generators and sewage treatment devices12. Biogas is a mix of several gasses. The main energy source is methane (CH4). Depending on the source and/or production technology, biogas shall contain 50-80% methane (see Table 2). In addition to methane, biogas includes several other gasses (CO2, H2, O2, H2S, NH3, NH3, H2O etc.).Typically, biogas is produces as a landfill gas at a landfill or as a product of the composting process. The raw materials used for composting are: specially grown biomass (rapidly growing plants with a high biomass), biodegradable wastes (wastes from the production of food or animal feeds, and cafeteria wastes), agricultural wastes (manure, slurry), and residual mud from sewage treatment.

Table 2. Chemical composition of biogas (Naskeo Environment)

Components Household waste

Wastewater treatment plants sludge

Agricultural wastes

Waste from agrifood industry

CH4 % vol 50-60 60-75 60-75 68CO2 % vol 38-34 33-19 33-19 26N2 % vol 5-0 1-0 1-0 -O2 % vol 1-0 < 0,5 < 0,5 -H2O % vol 6 (à 40 ° C) 6 (à 40 ° C) 6 (à 40 ° C) 6 (à 40 ° C)Total % vol 100 100 100

100H2S mg/m3 100 - 900 1000 - 4000 3000 – 10 000 400NH3 mg/m3 - - 50 - 100 -Aromatic mg/m3 0 - 200 - - -Organochlorinated or organofluorated mg/m3 100-800 - -

The physical characteristics of biogas resembles that of natural gas. In its refined form, the energy value of biogas is nearly twice as low as for natural gas (see Table 3). Combined heat and power production does not require the refining of biogas, but in order to use it as a fuel in the internal combustion engines that are used in transport, the CO2 content of biogas should be reduced and the oxidizing compounds, e.g. sulfur and chlorine compounds, also oxygen and water must be removed from the gas.

12

http://www.seit.ee/sass/?ID=1&L_ID=22


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Table 3. The physical characteristics of biogas, in comparison with the properties of natural gas. (Naskeo Environment)

Types of gas Biogas 1 Biogas 2

Natural gasHousehold waste Agrifood industry

Composition

60% CH4 68% CH4 97,0% CH433 % CO2 26 % CO2 2,2% C21% N2 1% N2 0,3% C30% O2 0% O2 0,1% C4+6% H2O 5 % H2O 0,4% N2

PCS kWh/m3 6,6 7,5 11,3PCI kWh/m3 6 6,8 10,3Density 0,93 0,85 0,57Mass (kg/m3) 1,21 1,11 0,73Index of Wobbe 6,9 8,1 14,9


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7. Public transport in the city of Tartu

The public transport in the city of Tartu has been divided between 25 bus lines, which are daily serviced by 51 buses. The total length of the bus lines is 491 kilometers, the annual total mileage of the buses reaches about 3.6M line kilometers. The operating of urban bus lines in Tartu has been awarded to an enterprise. AS SEBE has been operating the urban bus lines in Tartu since 2011, as a result of the state procurement. Since March 2011 the first 5 environmentally friendly compressed natural gas buses in Estonia started servicing the urban bus lines in Tartu. The city of Tartu has defined a long-term objective of increasing the share of gas buses that service urban bus lines. Initially the buses have been running on natural gas. In respect to when the production of biogas is increased and refined into motor fuel, biogas as a renewable energy source is planned to be used as fuel13. In accordance with the current regular service contract, the total cost of the regular service contract is 35.7M EUR based on the costs of 2010, or 5.49M EUR annually. The line kilometer price is adjusted once per quarter on the basis of the public transport index that is calculated by the Public Transport Department of the Road Administration.The public transport index is calculated on the basis of information from the Statistical Office. The public transport index (In) is composed of the diesel fuel price index (DKn), the bus enterprises’ salary cost index (Pn) and the consumer price index (THIn), and is calculated in the following manner:

In = 0,37 DKn + 0,35 Pn + 0,16 THIn + 0,12 (Stratum, 2011)Thus the cost of regular service is sensitive to fluctuations in the price of diesel fuel.

7.1. Description of the bus fleet that services the urban bus lines in Tartu The city of Tartu has procured the service of servicing the urban bus lines. This means that the operator must possess the necessary buses, bus drivers and the technical infrastructure or the necessary contracts for the maintenance and repair of buses. The procurement process for establishing the current regular service contract was conducted in 2010. AS SEBE won the contract. In accordance with the technical conditions, the types of buses that are described in Table 4 shall be performing the regular services. According to the technical conditions of the procurement, not all of the carrier’s buses had to be low-floor buses, but the new buses that were acquired had to fulfill the condition of being low-floor buses. As the winner of the procurement acquired new buses to fulfill the contract, 100% of the passenger-carrier buses on the urban bus lines of Tartu are low-floor buses. Also the condition that the carrier must replace five regular buses

13

http://www.tartu.ee/?lang_id=1&menu_id=6&page_id=24079


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with compressed natural gas (CNG) buses as of 01/07/2012 was inter alia defined as a procurement requirement. The winner of the procurement chose to introduce 5 CNG buses from the start of the contract on 01/01/2012.All of the buses that are used on urban bus lines in Tartu have been equipped with ventilation and heating systems. The closing mechanisms of the doors have been equipped with safety devices, which stop the doors from closing when there is an obstruction between them. Also it will not enable the bus to start moving, if the bus' doors have not completely closed.

According to the information from AS SEBE, there are 51 new buses (manufactured in 2010 or later) that are used on the urban bus lines in Tartu, also 9 reserve buses that are used when the regular buses are being repaired. Buses from two manufacturers are in use: Scania and MAZ. All of the Scania and some of the MAZ buses correspond to the EURO5 emission standards. Back-up buses correspond to the EURO3 emission standards.

Table 4. Buses on the urban bus lines in Tartu (According to the information presented by AS SEBE)

Bus Fuel Year of construction Power Exhaust standard NumberScania diesel 2010 169 EURO5 23Scania CNG 2011 199 EURO5 5Maz mini Diesel 2010 130 EURO4 13Maz 15m diesel 2010 210 EURO4 7Maz 15m diesel 2010 210 EURO5 3Volvo lõõts diesel 2001 228 EURO3 2VanHool diesel 2001 160 EURO3 3VanHool diesel 2000 160 EURO3 4

Total basic buses 51Total reserve buses 9Total buses 60

7.2. Bus lines in the city of TartuThere are 25 bus lines in the city of Tartu (Table 5). Night line No. 21 is the longest(33km); the longest regular line is line No. 21 „City Centre – Kivilinna – Ihaste“ (29.3km) and the shortest is line No. 20 „Zoomedicum – Railway Station – Kivilinna – Zoomedicum“ (14.3km). On the basis of the buses’ timetable, bus line No. 4 "Tarbus – Põllu“ has the largest number of buses and the highest daily mileage. The mileage of this bus line on workdays is 1012km, and when not taking into account weeks with national holidays, travel the distance of 6488km each week.


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Table 5. The daily number of buses on urban lines and the total of daily line kilometers of the bus lines in the city of Tartu

Line nr

Business day SaturdaySunday and holidays

Length (km) Line nr

Business day SaturdaySunday and holidays

Length (km)

(pcs) (km) (pcs) (km) (pcs) (km) (pcs) (km) (pcs) (km) (pcs) (km)Length (km)

1 4 963 3 709 6 709 18,2 14 1 270 1 229 1 229 13,42 1 279 1 239 1 239 22,5 15 1 200 1 109 13,63 3 772 2 479 2 479 18,7 16 1 200 1 109 17,44 5 1012 3 704 3 704 17,1 16a 1 181 17,45 4 928 3 650 3 650 21,1 17 1 202 1 182 1 182 21,66 3 875 3 676 3 676 25,5 18 4 969 3 676 3 676 22,17 4 907 3 723 3 723 25,3 19 1 56 19,18 2 413 2 391 2 391 21,4 20 3 681 3 617 3 617 14,39 2 553 2 417 2 417 12,9 21 1 21 1 65 1 86 3310 2 430 1 148 1 148 20,4 22 1 29 1 57 1 57 27,511 1 155 19,8 24 2 320 16,412 2 334 19,4 26 1 157 29,3

13 2 214 15,5 Total 5311120 35 7182 36 6985 502,9

A large portion of the bus lines and most of the day-time bus line buses pass through the Riia-Turu intersection in the City Centre District. All of the transport axes that head into the city center have a high bus transport load: Riia St., Narva Hwy., Turu St. and Vabaduse Av. According to the traffic study of the city of Tartu, 53 buses head over the Võidu bridge during the morning rush-hour (7.30-8.30 AM)28 of them heading into the city centre and 25 heading out of the city center. 45 buses cross the bridge during the evening rush-hour (17 into the city center and 28 out of the city center). 49 buses pass under the railway bridge on Riia St. (26 into the city center, 23 out of the city center) and 65 buses during the evening rush-hour (31 into the city center and 34 out of the city center) (Stratum 2011). Majority of the bus traffic in the city during rush-hours is created by urban buses: when comparing the results of the traffic load study carried out by Engineering Bureau Stratum and the timetables of the urban bus lines, urban buses make up 74% of the total number of buses that cross the Võidu bridge during the morning rush-hour (64% of the buses headed into the city center, 84% of the buses heading out of the city center).

Table 6. The number of buses on the Võidu bridge in Tartu. Bridge of Võidu To city Out of cityMorning rush hour (7.30-8.30)

Total number of buses 1) 28 25Urban buses 2) 18 21

1) Stratum (2011). Liikluskoormuse uuring tartu linnas 2011.aasta kevadperioodil. 2) www.peatus.ee Timetable of Urban buses of Tartu.


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In addition to the urban buses, a high number of county, long-distance and charter buses travel into and out of Tartu. According to the information from Tallinna Bussijaam OÜ, on average 124 buses depart from the Tartu bus station daily. According to the information in the portal www.peatus.ee, the Tartu bus station is a stop for 100 county bus lines. In addition, the bus station is the departing point for international buses (Ecolines – 2 departures, Lux Express – 6 departures). When counting the urban buses, there are approx. 280 buses on the regular service lines in Tartu. The buses on long-distance and county lines head out of the city. The average distance from the bus station to the city border on highways that exit the city is 4.8km. When presuming that all of the county and long-distance bus lines are roundtrip, then the daily average of these bus line kilometers is 4.8km x 2 x 280 buses = 2688km and an annual distance of 981,120km. Together with urban buses, the total amount of line kilometers within the city of Tartu is 4.58M km annually. The mileage from the end-station to the parking lot or the depot is added onto this.

7.3. Organisation of the public transport in the city of Tartu

At the present, the operation of the urban bus lines in Tartu has been bought in from the market. The regular service contract includes the obligation to provide the regular service with the service provider’s own fleet, which means that the investments into the buses shall be carried out by the service provider. The city of Tartu performs the ticket sales.

Three different options have been considered for the organizing of public transport in the city of Tartu:• Scenario 1 – the regular service is procured. Investments shall be performed by the carrier,• Scenario 2 – the regular service is procured. Investments shall be performed by the city,• Scenario 3 – the regular service is provided by the city itself, through the means of the transport center that is owned by the city.

The corresponding study conducted by Engineering Bureau Stratum demonstrates that the public transport center that is owned by the city is an economically viable choice, if previously-owned diesel buses or new gas buses are used (Stratum 2011). Previously-owned diesel buses are cost-effective because of their low price and gas buses because of their lower fuel costs. The greatest risk for developing a city-owned public transport is the cost of investments. Stratum deems it necessary to purchase used buses and/or enter into a long-term regular service contract for mitigating risks. The first measure would lower the service quality and the second measure would create a long-term contractual obligation for the city. According to the study, the benefits of the scenarios are the following:


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http://www.peatus.ee/

• Scenario 2: If the investments are carried out by the city, the city would have to take over the investment risk from the Carrier and mitigate it, because the city is interested in ensuring regular service in the long-term. According to calculations, the transfer of the investment risk would reduce the total cost of the regular service contract by approx. 18% or 6.7M EUR. In case of gas buses, the total cost of the regular service contract would be reduced by approx. 30% or 10.8M EUR.• Scenario 3: The city-owned transport center would guarantee the best possible service quality by enabling the replacement for newer buses also throughout their useful lifecycle;According to the current contract, the first scenario would cost the city of Tartu 9.92EUR/km. The cost of the second scenario is evaluated at 8.13EUR/km (-18%), and if gas buses are used, at 6.94 EUR/km (-30%) (Stratum 2011).

7.4. Passenger volumes, changes in the passenger volumesAccording to the survey „Tartu and its townspeople 2008“ 22% of the townspeople of Tartu used public transport for their daily travels. By the investigation of Valikor , 23% of citizen of Tartu use urban public transport daily. Most townspeople of Tartu travelled on foot or with a bicycle (47%) (Valikor 2009). Also more than a third of the townspeople used a car for their travels (31%). The public transport usage rates of Tartu are close to the averages of the cities that belong to the Union of the Baltic cities. In comparison with Tallinn, the differences are ample: Based on the information from 2008, 61% of the townspeople of Tallinn used the public transport and only 6% travelled on foot or by a bicycle (Aro 2008). Aro has noted in the survey that in comparison with 2003 personal transportation has gained users from both the public transport and the bicycling groups. The highest reduction in the number of public transport users has been noted in the city districts of Raadi-Kruusamäe, Karlova, Ülejõe and Supilinn. One of the reported reasons is the lack of public transport and soft traffic infrastructures (Aro 2008). The activity of public transport usage may also have decreased because of the changes in the social structure of these districts. According to the information in the study “Tartu County for All 2”, the most active public transport users are from age groups 15-19 and 60-74 (Aro 2009). The most typical public transport users are middle or secondary school students and retired persons. On the basis of the studies, the age of the inhabitants of the older inner city buildings has lowered during 1998-2008, the share of the working-age townspeople has grown from 56% to 69% and the share of retired persons has lowered from 22% to 17% (Kadarik 2009). Also the geographical and temporal distance between the start and end points of the planned travel has a significant influence on the use of public transport. According to the mobility study that was conducted among the inhabitants of the city of Tartu and its closer neighboring local governments, the average duration of travel of an inhabitant of the city of Tartu is 19 minutes. The person using public transport takes the longest, the average travel duration is 28 minutes. Whereas in more than half of the times the travel duration exceeds half an hour, because travelling on foot is necessary to get from the starting point to the bus stop and later again from the bus stop to the


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final destination. A car user on the other hand only travels for 16 minutes. The average duration of a walk is 16 minutes and 19 minutes for a bike ride (Valikor 2009). When travelling on the street network, the average length of travel from home to work is 3.8km. Whereas over half of the inhabitants’ workplace is 2-5 kilometers from their home. Since this distance is too long for being travelled on foot, and travelling this distance comfortably means using either a bicycle or some type of motorized transport (Valikor2009).

The number of public transport users in the city of Tartu has remained relatively stable for the past three years. The number of sold tickets has remained at about 12 million. Taking into account that the number of townspeople was 103,740 in 2011 and that there were 12,339,591 sold bus tickets, a single townsperson of Tartu makes statistically 119 rides per year. At the same time, the number of sold bus tickets does not reflect the total use, since the city of Tartu has awarded free bus travel rights to many different age groups, including to persons who are 65 or older and to pre-school age children14. According to the mobility survey that was conducted among the inhabitants of the city of Tartu and its closer neighboring local governments, approx. 15% of the passengers had the right to free bus travel.

Diagram 2. The number of passengers with tickets on the bus lines of Tartu by months. Number of passengers (thousands person) in the Y-axis. Months in the X-axis.(Source: City Government of Tartu)According to the ticket sales information, the number of passengers is the highest during the spring and the autumn. Out-of-season periods are from May until August and in December (see Diagram 2). This dynamics is characteristic to Tartu because of the number of secondary school and university students. During the last ten

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years the ticket sales have constantly decreased. The ticket sales amounting up to 20 million at the beginning of the century have lowered by approx. 40%. At the same time, the ticket sales have been rising for the past three years and have risen to a total of 12.3 million bus tickets.

Diagram 3. The number of passengers with tickets on the bus lines of Tartu by years. The number of passengers (thousands person) in the Y-axis. Years in the X-axis (Source: City Government of Tartu)

The study conducted by Valikor OÜ has determined that people travel mostly between home, workplace, school and retail and service facilities (90%). The volume of other travel is low (10%). The objectives of travel vary based on the time. At morning, people travel mainly to work and home. During the day, travel to retail and service facilities increases, and in the evening people travel back to home. On average, a townsperson of Tartu makes 2.84 travels during a regular workday (Valikor 2009).


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Diagram 4. The usage of the urban buses of Tartu by user groups. (Source: Study on the public transport in Tartu 2010. Engineering Bureau Stratum). Y-axis – rate (%); X-axis – period: 1 – until 9.00; 2 – 9.00-13.00; 3 – 13.00-16.00; 4 – 16.00-19.00; 5 – after 19.00. Green- adults; red- students, pupils; purple- elderly; blue- pre-school age.

According to the study conducted by Engineering Bureau Stratum in 2010, adults make up about 37%, the elderly 31% and students/university students 30% of all of the passengers during workdays. Pre-school age children make up 2% of the total number of public transport users. Therefore, during the morning periods (before 9.00) and the evening periods (16.00 and later) on workdays the working-age persons are the most numerous, which can be explained with using public transport for riding from home to work and from work to home. The share of the elderly increases from <20% during the morning rush-hour to 50% by noon (Stratum 2010). Shopping has been indicated as one of the main reasons why the elderly use public transport (Turu-Uuringute AS).According to the mobility survey that was conducted among the inhabitants of the city of Tartu and its closer neighboring local governments, the people that use the public transport are much rather satisfied with the public transport service. The highest satisfaction is noted with the availability of public transport. The bus stops are located close enough to the home and the connection with the city center is frequent. At the same time, the price of the bus tickets, the timetable, the frequency of departures and the comfort of the buses are more often noted as unsatisfying (Valikor 2009).


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8. Potential raw material sources for biogas in the region of the city of Tartu

Biogas, its manufacture and use is not an unknown field in Estonia. The first biogas stations were built in 1987: the Pärnu Pork Meat Factory’s biogas station and the Linnamäe Collective Farm’s biogas station. Neither of the aforementioned stations are no longer in operation. The Paljassaare sewage water treatment plant in Tallinn was the first to start producing gas through the use of a sewage water treatment plant in 1993. The first plant that uses landfill gas was built in 2011 at the Pääsküla Landfill in Tallinn. The first farming biogas station was set up at the Valjala Pig Farm in Jööri village in Saare County (Kask 2010). Nonetheless the production and use of biogas has not evolved to its potential levels in Estonia. According to the information from 2007, about 0.16% of the heat and 0.14% of the electricity of the end-consumption in Estonia was produced from biogas, which makes up 2.15% of the theoretical biogas production potential of Estonia (Oja 2011). The first biogas production plants in Tartu shall be built in 2012 (Aardlapalu landfill gas station and the fermentation of sewage mud to biogas by Tartu Veevärk AS).Biogas can be produced from different raw materials. In Estonia, mainly pig and cow manure, sewage mud and biodegradable waste is used. But according to different studies, specially grown biomass has the greatest potential to be used as raw material for the production of biogas (see Table 7).

Table 7. Biogas resources and the biogas production potential in the Tartu County (Source: SEI 2011)Stream of waste or raw material

Wastes Amount 2010.y availability Usable in Tartut/year % t

Household Waste Kitchen waste 8200 30 2500

Biowaste from enterprises

Animal tissues 700 100 700IIcat 280 100 280IIIcat 420 100 420Herbal tissues 900 60 500Whey 36000 50 18000Cooking oil, fat 700 68 400Grease trap sediments 400 100 400Brewing residues 8000 50 4000

Agricultural waste

Manure 172000 22 37000Manure up to 7km from Tartu 37000 100 37000

Wastewater treatment Sewage sludge 20000 100 20000Other biomass Herbal biomass 233000 16 37500

Herbal biomass sear of Tartu 37500 100 37500

TOTAL 479500 25 120600

The biogas production potential of the city of Tartu and the rural areas of Tartu has been evaluated during the course of several studies. The study conducted by the Tallinn Technical University in 2008 demonstrated that the potential biogas production volume of the rural areas of Tartu amount up to 45M Nm3 annually (TTÜ


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2008). The study conducted by the Tallinn office of the Stockholm Environment Institute (SEI) in 2011 evaluates the biogas production potential of the city of Tartu and its closer rural areas at 7.55M Nm3 of biogas annually (SEI 2011).

Taking into account the recovery potential of urban areas, important biogas raw materials in the city of Tartu are:

• the separately collected cafeteria and kitchen wasted from households, catering enterprises and trade enterprises.

At the moment biodegradable waste is not separately collected from the townspeople. Biodegradable waste that the townspeople do not compost on their immovable property or that they themselves do not take to the waste collection sites shall be deposited with mixed municipal waste. 37,832t of mixed municipal waste was received at the Aardlapalu transfer station in 2010. On average, the mixed municipal waste in the Tartu area consist of 57% (56% in Tallinn (Moora 2010)) biodegradable waste like biowaste, paper and cardboard, timber, textile (from natural fibres i.e. the biodegradable part) (SEI 2011). Biowaste (kitchen, garden and greenery waste, and other biowaste) forms 67.5% of the biodegradable waste in the mixed municipal waste in Tartu (56.9% in Tallinn(Moora 2010)).

Table 8. The content of mixed municipal waste in the city of Tartu and the waste amounts in 2010 (Sources: SEI 2011 and the City Government of Tartu)

Nr WasteTartu average 2010.a% t

1. Plastics 15,2% 57502. Glass 3,2% 12113. Metal 2,2% 8324. Paper and board 17,1% 64695. Biowaste 38,4% 145275.1. Kitchen waste 27,6% 104425.2. Garden waste 9,4% 35565.3. Other biowaste 1,4% 5306. Wood 0,5% 1897. Hazardous waste 0,3% 1138. WEEE 0,4% 1519. Other combustible 15,7% 594010. Textile and apparel 0,9% 34011. Other noncombustible 6,1% 2308

Total 100,0% 37832Total biodegradable 57,0% 21564

According to these calculations, approx. 21,564t of biodegradable waste is created each year in Tartu, of which 14,527t is biowaste i.e. 147 kg per townsperson. The biogas production from kitchen waste has been reporter in the amount of 80-461m3/t: (SEI 2011) has reported 80m3/t as the amount of gas produced from biowaste. Habicht quotes in his study 170m3/t as the amount considered in the model for the closing down a landfill (Habicht 2010). M.Koettner points out 220m3/t as the produced amount from food waste (Koettner 2008). The


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experiments performed in the Czech Republic report 461m3/t as the produced biogas amounts from kitchen waste (Vana 2005). Verma refers to information according to which 100-200m3 of biogas can be produced from a ton of biodegradable waste (Verma 2002). El Mashad has reached 353l/kg (El Mashad 2010). This study has taken into account 345m3/t as the average of different studies. Research has shown that the past production from biowaste depends on the content of fats and fibres in the material (Vana 2005). Because of this, kitchen waste is the most suitable.

Table 9. The amount of kitchen waste and volumes of gas production in Tartunr Material Generation

2010Availability Used in

TartuYield of biogas

Amount of biogas

Methane (60%)

t/a % t m3/t m3 m3

1. Kitchen waste 10 442 100 10 442 3453 602 363 2 161 418

When considering only the amount of kitchen waste (10,422t) and when considering that 345m3 of biogas can be produced from 1t of biowaste, the potential gas production from the separately collected biowaste in Tartu is annually approx. 3.6M m3. At a 60% methane content, the annual methane production from kitchen waste could be 2.16M m3.

• Industrial biowaste. Mainly the residue and waste consisting of animal and plant tissues, cooking oils and lard.

According to the study conducted by SEI, the city of Tartu and its closer neighbors create 46,300t of different industrial biowaste. Residual waste from the milk industry (whey) has the highest share. At the same time, products have been developed that use up the whey. Whey is also sold as forage. Cooking oil and lard have a high energy value, for which there is an aftermarket. The lard and residue from oil traps that have been composted until now are also considered as prospective. The residual waste of the meat industry is all transported to the Väike-Maarja animal waste processing plant. The animal waste might alternatively be sorted into II and III categories. The II category animal waste must be previously sterilized (for a minimum of 20 minutes at 133 degrees Celsius at 3bar), and this might increase the investment cost by the cost of the stabilized equipment. III category animal waste may also be used without sterilized it.

Table 10. The existence of industrial biowaste in the region and the volumes used in Tartu (SEI 2011)nr Material Generation

2010Availability

Used in Tartu

Yield of biogas

Amount of biogas

Methane (60%)

t/a % t m3/t m3 m3

1. Animal tissues 700 100 700 180 126000 75600

1.1. IIcat 280 100 280 180 50400 302401.2. IIIcat 420 100 420 180 75600 45360

2.Herbal tissues 900 60 500 100 50000 30000

3. Whey 36000 50 18000 33 594000 356400

4.Cooking oil, fat 700 68 400 450 180000 108000


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nr Material Generation 2010

Availability

Used in Tartu

Yield of biogas

Amount of biogas

Methane (60%)

4.1.Grease trap sediments 400 100 400 450 180000 108000

5.Brewing residues 8000 50 4000 115 460000 276000

Total 46300 23600 1410000 846000

SEI has indicated in its study all of the waste amounts that are technically, financially and geographically available in the biogas production region. Of the estimated amount, 23,600t/yr of industrial biowaste is available for the production of biogas in the region, which’ gas production is estimated at 1.41m3/yr. When considering the 60% methane content – 846,000m3/yr of CH4.

• Park and greenery waste, cemetery waste The park and greenery waste of the city of Tartu is transported to the Aardlapalu composting site. 2201 tons of park and greenery waste was transported to the Aardlapalu site in 2010. Although they are composted at the moment and a modern heap composting system is being built, in the long-term also the potential of the park and greenery waste might be utilized for producing biogas. There are many technologies, e.g. dry-fermentation, that enable the production of biogas from organic substances, which’ water content is lower than 70%.

Table 11. Park and greenery waste and its gas production in Tartunr Material Generation



Amount of biogas

Methane (60%)

t/a % t m3/t m3 m31. Greenery waste 3 301 50 1 651 122 201 361 120 817

The content of park and greenery waste is not kept account of. According to the actual season, it contains leaves (autumn), branches (spring) and mowed grass (summer). This waste includes cemetery waste throughout the year. Presumably half of the collected park and greenery waste could be used for the production of biogas. The potential gas production from mowed grass is evaluated at 125m3/t 15, the potential gas production from herbaceous biomass is 119m3/t (SEI 2011). An average value of 122m3/t has been used in the calculations. On the basis of such gas amounts, the potential volume of biomethane produced from park and greenery waste is evaluated at 120,817m3/yr.

• Sewage mudTartu Veevärk AS is constructing a biogas station, where sewage mud is used to ferment biogas. According to a study commissioned by Tartu Veevärk AS, the sewage mud in the city of Tartu has the potential biogas output of 3075m3/d and at ~65% methane content 2000m3/d of biomethane may be produced. This would make the annual biomethane volume 730,000m3 (Mõnus Minek 2009). According to the plan, the produced gas is used on location for the co-production of heat and electricity. Landfill

15

http://www.biogas-renewable-energy.info/waste_methane_potential.html.


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The region’s landfill at Aardlapalu has been closed down by now, refuse is no longer deposited there. In the framework of the landfill’s closing project, a vertical landfill gas collection system was installed at the waste deposit that collects the gas that is produced when the biodegradable waste decomposes within the landfill. The gas collection system was started in February 2012. According to the initial plan, the landfill gas is rendered harmless with burning in a torch. The special feature of gas production at a closed landfill is that the production of gas decreases during time. The period with the highest methane yield is immediately after the landfill is closed down.

Diagram 5. An estimate of the production of landfill gas at Aardlapalu. On the basis of the initial amount of 533m3/h (by Doranova Baltic OÜ) and the estimated curve (by J.Habicht).Y-axis – estimated production (m3/a); x-axis – period (years).

There are many estimates on the gas production of the Aardlapalu landfill: The drafter of the environmental impact analysis of the landfill's closing project has estimated the post-closing methane production at approx. 440M m3/yr (approx. 800M m3/yr of landfill gas) during 20 years (Habicht 2010). Ülo Kask has evaluated in his estimations the gas production of the Aardlapalu landfill at 187.5-225M m3

during 20 years (Kask 2008). Jaan Habicht has presented estimates in his study according to which the production during 20 years shall be 16M m3. Doranova Baltic OÜ, who built the gas collection system at Aardlapalu, has performed surface measurements of gas levels before installing the gas system. According to the estimates that are based on the analysis of the results, the production rates of the Aardlapalu landfill are approx 533m3/h (Detes 2010). When taking into account the rate at which the production of landfill gas reduces, which was described in Jaan Habicht’s work, then according to Doranova’s estimates the gas production during 20 years would be 50M m3. By now, the gas collection system has been working for a month. Soon an initial analysis can be carried out on the volume of gas that has been really pumped out.


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Although even if on the basis of the data from such a short period precise analyses cannot be drafted, it gives an opportunity of evaluating the starting position or the gas amount that shall be used for estimating later volumes.

Table 12. The estimates of landfill gas from the Aardlapalu landfill. M m3.

LFG forecast CH4 production from LFG55% assume(3 60% assume(4

20 years Average at year(1 20a Average at year(1 20aAverage at year(1

Alkranel OÜ 800 40,0 440,0 22,0 480,0 24,0Ülo Kask 205 10,3 112,8 5,6 123,0 6,2Jaan Habicht 16(2 0,8 8,9 0,4 9,7 0,5Doranova Baltic OÜ 50 2,5 27,6 1,4 30,1 1,5

(1 Projected 20-years production divided equally to 20 years(2 First 20 year from J.Habicht´s 50-years forecast is taken into account.(3 Methane content from environmental assessment analysis of Aardlapalu Landfill(4 Average methane content in study made by Doranova Baltics was 63,25%

• Herbaceous biomassThere are many semi-natural compositions, e.g. water meadows, polders and conservation areas, which need to be mowed to preserve their biodiversity. As herbaceous biomass cannot be collected as high-quality forage, nor is it useful, it shall be left there in their mowed or gathered form. In its study, SEI has evaluated the volume of herbaceous biomass that originates from the close vicinity of Tartu at 37,500t/yr, and when it produces 119m3/t of biogas, its annual biogas production is 4.45M m3/yr. The production volume of methane is at 60% CH4 at 2.7M m3/yr.

Table 13. Herbaceous biomass and its gas yield (SEI 2011)no Material Generation



Amount of biogas

Methane (60%)

t/a % t m3/t m3 m31. Herbaceous

biomass from Tartu region 37 500 100 37 500 119 4 462 500 2 677 500

The biogas production potential of the raw materials that are available in the city of Tartu adds up to 12.4M m3/yr and its potential volume of biomethane that can be used as a motor fuel at 8M m3/yr. When considering that the biogas that is produced in the sewage treatment plant is used according to the project for the co-production of heat and electricity to satisfy its own consumption, the potential amount of “free” biomethane that can be used as a motor fuel is at 7.3M m3/yr.


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Table 14. Biogas manufacturing potential in Tartuno Material Generation

2010Yield of biogas

Amount of biogas

Amount of CH4

Number of buses²

t m3/t m3 m3 pieces1. Kitchen waste 10 442 345 3 602 363 2 161 418 572. Industrial biowaste¹ 23 200 211 1 410 000 846 000 223. Park and green waste 1 651 125 201 361 120 817 34. Sewage sludge¹ 68 230 160 734 367 440 620 125. LFG 2 500 000 1 500 000 396. Herbaceous biomass 37 500 119 4 462 500 2 677 500 70

Total 12 910 591 7 746 354 203Total without sewage sludge 12 176 224 7 305 734 191¹ Biogas production of sewage sludge forecasted on the basis of recipe, which uses grease trap sediments in addition to sludge (Oja. 2010). The volume of needed grease trap sediments are removed from industrial biowaste. ² The number of buses = amount of CH4 (m3/a) / Fuel Consumptionbus (39 m3

CH4/a) x mileagebus (70600 km/a)

According to the experience of the city of Tartu, a biogas bus shall consume 39kg/100km. When considering the density of methane (0.72kg/m3), this amounts to 54.2m3/100km. The biomethane production potential of the city of Tartu allows to cover the annual fuel needs of 203 biogas buses. Tartu Veevärk has begun a project for fermenting gas from sewage mud, which uses the produced biogas for the co-production of electricity and heat. The performed study suggests that the most optimal recipe for fermenting sewage mud would mean adding 300t/yr of residue from grease traps to the sewage mud. When not considering the sewage mud and residue from grease traps as a part of the biomethane raw materials, 7.3M m3/yr of biomethane that can be used as a motor fuel can be produced, which covers the needs of 191 buses. The calculations show that also kitchen waste could satisfy the actual fuel need of the urban buses of Tartu.


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9. The cost of the life-cycle of introducing biogas buses

The life-cycle cost study tries to identify how much the introduction of biogas buses would cost from the manufacture until the use for passenger transport services. In addition to the direct investments for the purchase of the buses and the regular maintenances, the „Well-to-Wheel“ (WTW) analysis enables the evaluation of the cost of all of the previous necessary investments and costs. The WTW analysis considers the following costs:

• The raw materials, • The production of biogas,• The refining of biogas for use as a motor fuel,• The transport of the fuel to the filling station,• The refueling with the fuel,• The use of biogas buses.

According to the studies conducted in the world, the production of fossil fuels has the lowest energy use (Pädam 2011). The production of biogas from waste requires lower energy use than the production of biofuels, whereas in the production of biogas from manure the fossil fuels’ share in the energy balance is extremely low. The energy balance of the biogas produced from landfill waste or manure is almost 1:1 (Pädam 2011), i.e. almost the same amount of energy is used to produce the fuel as it contains energy.

9.1. MethodologyThe objective of the WTW analysis is to determine the different cost of cost components per 1 kilometer travelled by a biogas bus. in addition to cost per kilometer, the analysis has indicated the cost for the periods of 1 yr and 15 yrs.

• The total length of the urban lines in Tartu is 3,600,000km/yr. • The number of biogas buses is 51. One bus travels 70,588.24km/yr. • The WTT costs have been calculated based on the biogas bus scenario. This

scenario presumes that all of the urban buses in Tartu (51 pcs) use biogas as their fuel. Due to this, technologies and the technical volumes of the necessary investments have been determined. In case of higher or lower gas production, the costs per kilometer are different.

• The TTW costs have been calculated per bus. The final cost has been calculated on the basis of 1 line kilometer of the bus. If the WTT costs remain the same and the number of biogas buses decreases, the WTW cost per kilometer increases.

• In addition to the scenario, where all of the buses are biogas buses, also current schemes are evaluated: 5 gas buses+46 diesel buses, considering that the already purchased buses can use biogas as a fuel.

• The production, refining and transport of biogas has been based on landfill gas from the Aardlapalu landfill.


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The gas production, according to the estimation of the volume of landfill gasses from the Aardlapalu landfill, during the first years is approx. 500m3/h (Detes 2010) or 4.38M Nm3/yr. This production volume has been used for the dimensioning of production, refining and transport equipment. In comparison, the production of biogas in the same volumes from the biowaste of the city of Tartu has been presented (this volume is achieved by combining kitchen waste and industrial waste).

• The life-cycle of the investments has been evaluated at 15 yrs, which is in conformity with the value of the useful life-cycle of the equipment that is presented in the guide note „Guide to cost-benefit analysis of investment projects“16 by the European Commission.

9.2. The cost of raw materialsThe following biomasses are used to produce biogas:

• Biodegradable waste,• Sewage mud,• Manure, slurry,• Specially grown herbaceous biomass.

Most of the existing and planned biogas plants in Estonia use biodegradable waste (this group includes the producers of landfill gas), manure or sewage mud for producing gas. When considering the built biogas plants, the aforementioned materials are not produced for the sole purpose of fermenting methane, but are the by-products or the residual wastes of the principle activity. The waste is also not regarded as a good and its receipt is not charged. Usually, the transferor of the material pays the producer of biogas directly (biodegradable waste) or indirectly (sewage mud). Thus the cost of the raw materials cannot be directly defined within this financial setting.

The study on the raw materials of biogas in the city of Tartu and the Tartu County conducted by SEI has been trying to calculate the costs of biogas raw materials. The forecast cost of the materials and the transport in the city of Tartu (e.g. collection) and to the city of Tartu (e.g. transport from more distant enterprises) have been taken into consideration. According to the proposed solutions, the materials cost the most, for which there already is a market and for which payment is likely. The cost of separately collected food waste is relatively high as

16

http://ec.europa.eu/regional_policy/sources/docgener/guides/cost/guide2008_en.pdf


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it must be collected from different location (see The study on the raw materials ofbiogas in the city of Tartu and the Tartu County conducted by SEI has been trying tocalculate the costs of biogas raw materials. The forecast cost of the materials andthe transport in the city of Tartu (e.g. collection) and to the city of Tartu (e.g.transport from more distant enterprises) have been taken into consideration.According to the proposed solutions, the materials cost the most, for which therealready is a market and for which payment is likely. The cost of separatelycollected food waste is relatively high as it must be collected from differentlocation (see ).).

Table 15. The total cost of waste suitable for the production of biogas (EUR) (Source: SEI 2011)

Material flow Wastes Purchase Transport EUR/tTotal cost (EUR)

Household Waste Kitchen waste 0 300 19,2 47 934Industrial biowaste Animal tissues 0 56 3,6 2 505

IIcat 0 56 3,6 1 002IIIcat 0 56 3,6 1 503Herbal tissues 0 60 3,8 1 917Whey 130 98 14,6 262 293Cooking oil, fat 130 9,8 8,9 3 574Grease trap sediments 0 9,8 0,6 251Brewing residues 0 30 1,9 7 669

Sewage sludge Sewage sludge 120 7,7 153 388Other biomass Herbaceous biomass 200 84 18,2 680 659

The price and the transport costs of the raw materials of landfill gas that have been considered in this study were not taken into account. Although waste has been received at the landfill for a fee that also includes transport costs, the fee does not make provisions for the possibility of producing biogas from the waste.Alternatively, if biogas is produced from kitchen waste and the biodegradable waste that is created by enterprises, the transport cost averages at 6.6EUR/t. When considering the produced amounts, the total cost of these waste types is 83,000EUR/yr or 2.3 cents per bus km.

9.3. The production of biogasThe investment costs of the biogas production unit includes the collection system, irrigation system, their electrical connections and the cost of planning of the closing plan of the Aardlapalu landfill, which comes to a total of 750,000EUR (according to a phone conversation with a representative of the main constructor of construction works, AS Merko).The production cost of biogas per km is 0.02EUR (2 cents). When considering investment costs for 5 gas buses (hereinafter 5gB), the cost of 1km is 16 cents.


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Table 16. The cost of a biogas production unit, as demonstrated with the construction of the Aardlapalu landfill gas collection system.

15 years 1 year1km 1 bus

1km 51 buses 1km 5gB

Investment 750000 50000 0,71 0,01 0,14R + M 97500 6500 0,09 0,00 0,02Total 847500 56500 0,80 0,02 0,16

The volume of investments that are performed for producing gas from the kitchen waste and the biodegradable waste from enterprises that is produced in the city of Tartu has been calculated in a biogas plant profitability and feasibility study by ERKAS Valduse OÜ, which has indicated the investment costs of two different plants that utilize alternative technologies (see Table 17). This suggests that the biogas plants with wet processing cost 10 cents/km and with dry processing 6 cents/km.

Table 17. Investments directed to a biodegradable waste processing biogas plant (Source: ERKAS 2011)

15 years 1 year 1km 1 bus 1km 51 buses 1km 5gBWet fermentation 5578153 371877 5,268 0,103 1,317Investments 2478740 165249 2,341 0,046 0,585Operating 3099413 206628 2,927 0,057 0,732Dry fermentation 4819275 211717 2,999 0,059 0,750Investment 3504060 124036 1,757 0,034 0,439Operating 1315215 87681 1,242 0,024 0,311Average 5198714 291797 4,134 0,081 1,033

9.4. The refining of biogasCurrently there are no biogas refineries in Estonia that would refine gas to the standards where it could be used as a motor fuel. Due to this, the evaluation is based on the results of a study conducted in Finland (Ahonen 2010). There are four main technologies that are currently used in the world:

• Absorption. This is based on the fact that CO2 dissolves in the absorbent better than methane. The refining of biogas is carried out in columns, where the biogas that enters at the bottom moves through the absorbent. The refined gas is dried. The absorbent that is enriched with CO2 is refined and then redirected into the process.

- Water-based. - Physical absorption with organic solutions (e.g. polyethylene glycol,

trademarks Selexol and Genosorb) and- Chemical absorption with alcohol-amines (e.g. monoethanol-amine and

methyldiethanol-amine) that dissolve CO2 more effectively than water.• Adsorption

- Pressure Swing Adsorption (PSA). The gas is directed through an activated charcoal sieve or a molecular sieve, which adsorbs CO2 onto the surface.


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When the pressure decreases, the CO2 that has attached onto the surface is released and the adsorbent is purified.

• Membrane refining is based on the circumstance that different molecules have different sizes, thus a membrane can be created that allows the CO2 molecules to pass through and the CH4 molecules to remain on the other side of the sieve.

• Cryotechnique is based on the fact that the boiling temperature of methane is -1600C and -780C for CO2. Biogas shall be cooled until CO2 condensates. Since the boiling temperature of nitrogen is even lower, cryotechnique also enables the extraction of nitrogen. This technology enables the production of both gaseous methane and liquid methane.

According to the refining technology, the investment cost of refining biogas differs. The majority of existing biogas refining equipment utilizes adsorption or absorption Technologies, thus the refining plants that utilize the aforementioned Technologies shall be regarded here. Although the chemical absorption equipment is cheaper, keeping them in use is more expensive, as the absorbent must be renewed from time to time even in a circulating system and the chemicals are much more expensive than water. The cost of refining biogas is on average 0.08EUR/km. When basing the calculation on five biogas buses, the cost would be 0.83EUR/km.

Table 18. The cost of a biogas refining unit by different refining technologies (Source: Ahonen 2010)

15 years 1 year 1km 1 bus 1km 51 buses 1km 5gBInvestmentPSA 1238050 82537 1,17 0,02 0,23Water absorption 1323500 88233 1,25 0,02 0,25Chemical absorption 1026800 68453 0,97 0,02 0,19

Operation costsPSA 3146250 209750 2,97 0,06 0,59Water absorption 2853000 190200 2,69 0,05 0,54Chemical absorption 3635250 242350 3,43 0,07 0,69

TOTALPSA 4384300 292287 4,14 0,08 0,83Water absorption 4176500 278433 3,94 0,08 0,79Chemical absorption 4662050 310803 4,40 0,09 0,88Average 4407617 293841 4,16 0,08 0,83


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9.5. The transport of gas The transport costs of gas is based on two technological alternatives: transporting gas through a pipeline and transporting it with special trailers.The cost of a pipeline is based on the alternatives and costs presented in the study on the possibilities of commercial use of the landfill gas from the Aardlapalu landfill that was performed by Oja 2010:

• a 10km pipeline from the Aardlapalu landfill to the gas station on Tähe St. – 9M EEK or 575,205EUR,

• a 5.3km pipeline from the Aardlapalu landfill to the B-category pipeline 4.3M EEK or 274,820EUR (40),

• The average cost of 1km of pipeline has been calculated on basis of the previous information.

The investment costs of transport containers are based on the information on the container trailers presented in the study „Possibilities of commercial use of the landfill gas from the Aardlapalu landfill“. Two containers have been estimated at 110,000 EUR a piece. The capacity of the containers is 3600Nm3. When considering that the estimated volume of the landfill gas produced at Aardlapalu is 4.38M Nm3, the transport of that volume would require 1217 roundtrips annually (if the gas is refined on location). For the transport of biomethane (gas shall be refined at Aardlapalu) 650 roundtrips should be performed annually. 2x12km was calculated as the distance from the Aardlapalu landfill to the gas station on Tähe St. and back again. The cost of transport is based on the cost of transport services at 1.28EUR/km (Oja 2010).

Table 19. The source data for calculating the transport costs of biogasFigure Unit AmountAardlapalu LFG estimation Nm3 4380000Aardlapalu CH4 estimation Nm3 2365200Aardlapalu CH4 content % 62Volume of container NM3 3600Number of containers tk 2Distance km 12Cost of transportation EUR/km 1,278233Number of trip Biogas tk 1217Number of trip CH4 tk 657Total mileage of trip biogas km 29200Total mileage of trip CH4 km 7884

Constructing 1km of gas pipeline for the transport of gas adds 0.9 cents/km to the introduction of biogas buses. When considering the construction of a gas pipeline from Aardlapalu to the Tähe St. gas station (10km), the cost of the pipeline adds 9 cents per km. The cost of a gas pipeline that would connect the Aardlapalu landfill with its closest B-category natural gas network connection point is 4.3 cents per line km. When only 5 gas


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buses shall be introduced, each solution shall be more expensive by 1 cent per 1 line km. The cost of a road transport kilometer 4 cents per line kilometer. The impact of the actual transport (from Aardlapalu to Tartu) has been based on two scenarios: the transport of unrefined gas (BG) or refined gas (CH4). In case of transporting unrefined gas from Aardlapalu to Tartu, 1.4 cents are added, in case of refined gas, 0.7 cents are added (if 5gB are introduced, accordingly 15 and 7 cents shall be added).

Table 20. The cost of transporting biogas

15 years 1 year 1km 1 bus1km 51 buses 1km 5gB

Pipeline1km 54687 3646 0,052 0,001 0,01010km 575205 38347 0,543 0,011 0,109

5,3km 27482018321,3 0,260 0,005 0,052

Motor transport

Investment 22000014666,7 0,208 0,004 0,042

Transportation from Aardlapalu biogas 559866 37324 0,529 0,010 0,106Transportation from Aardlapalu CH4 151164 10078 0,143 0,003 0,029Total biogas from Aardlapalu 779866 51991 0,737 0,014 0,147Total CH4 from Aardlapalu 371164 24744 0,351 0,007 0,070

When transporting the output of a biogas plant that utilizes both kitchen and other waste, the same data may be utilized, since the premises of the Aardlapalu landfill is suitable for the construction of the plant. Unlike the solution at the Aardlapalu landfill, a biowaste plant can be constructed closer to the city and thus the production unit is in the close vicinity of the gas station and transport costs are minimal.

9.6. Filling systemTwo gas stations have been constructed in Estonia. In the study „the feasibility and profitability analysis of a biogas station“, the evaluated cost of the station has been estimated at 300,000EUR (ERKAS 2010). Ahonen has underlined in his research the construction costs of three different types of stations in the Göteborg region:

• A station connected with the natural gas network – 375,500EUR,• A container station for transporting gas on trailers – 236,200EUR,• A bus station, an extensive station that is connected with the natural gas

network, with the option of connecting with a container trailer – 859,200-2,685,000EUR (Ahonen 2010). This analysis has utilized the base cost of this station type.

The operating cost of the station is the cost in the study “the feasibility and profitability analysis of a biogas station” of 651,426EEK or 41,633EUR annually on the basis of the 2010 prices.


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According to the filling system and the size of the station, the costs related with operation of the station vary between 1.9-2.8 cents/km (in case of 5bG 18.9-28 cents/km). If all of the buses on the urban bus lines in Tartu would use gas, a special bus filling station would be required. The special (bus) filling station that would enable the simultaneous fuelling of several vehicles and could receive fuel transported on trailers would increase the investment costs of the station by half.

Table 21. The investment costs of the station15 years 1 year 1km 1 bus 1km 51 buses 1km 5gB

Filling st. on pipeline 375500

25033,3 0,35 0,007 0,07

Container filling st. 236200

15746,7 0,22 0,004 0,04

Combined filling st. 859200 57280 0,81 0,016 0,16Operational 624495 41633 0,59 0,012 0,12

9.7. BusesThe bus investments are based on the following data:The price of gas buses is based on the average price of a 12m bus in the study “the study on the procurement possibilities of compressed gas buses“ by Assets RPM OÜ at 254,183EUR (Assets 2010a) that has been rounded to the closest thousand. Thus the average price of a gas bus is 254,000 EUR. According to the information from AS Sebe, new gas buses are 15-20% more expensive than the equivalent diesel buses (Ruusamäe 2011). The calculations of this study have considered the cost of gas buses as 20% higher.The cost of the maintenance and repairs of gas buses is 0,2…0,26EUR/km (based on the information from Keil M.A OÜ) and of diesel buses is 10% higher than similar value of gas buses (Ruusamäe 2011).

The fuel price is based on the following data:Diesel fuel – the cost of winter diesel fuel at wholesale prices at the Tallinn terminal of Neste Eesti AS on 23/03/2012 – 1.108EUR excl;Biogas is not sold in Estonia, thus the comparative data in the calculations is the cost of natural gas at the gas station of Eesti Gaas AS – 0.649EUR/kg excl. VAT .

The cost of gas buses is 20% higher than for diesel buses (approx. 5 cents/km). Also the repair and maintenance costs of gas buses are higher: 10% or 2,3 cents/km. On the other hand, the cost of fuel of gas buses is 75% or 19 cents/km lower. The total cost of diesel buses totals at approx. 84 cents/km and gas buses at 72 cents/km. Based on the scenario where all of the urban buses in Tartu are diesel buses, the total cost of the acquisition investment and operation is at 3,03MEUR/a, if utilizing gas buses, at 2,6MEUR/a, 15a of the reference period.


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Table 22. Investment and operating costs related to buses

15y toal 1 Repair 1km 1busdifference DB - GBEUR %

Diesel bus 891 774 59 452 0,842 0,119 16%Investment 203 200 13 547 0,192 -0,048 -20%Repair+maintenance 219 176 14 612 0,207 -0,023 -10%Fuel 469 398 31 293 0,443 0,190 75%Gas bus 765 597 51 040 0,723 -0,12Investment 254 000 16 933 0,240 0,05Repair+maintenance 243 529 16 235 0,230 0,02Fuel 268 068 17 871 0,253 -0,19

9.8. Total cost of the life-cycleThe analysis shows that under the conditions, the life-cycle cost of the introduction of biogas buses are 12-40 cents per 1km of Tartu buses using biogas from Aardlapalu landfill and 18-50 cents / km for the production of biogas from biowaste

Table 23 Total costs from source to gas station in the example of (Aardlapalu landfill gas and gas from bio-waste (EUR)

Material cost Production Cleaning Transport FillingAardlapalu landfill 0 0,02 0,08 0,001-0,014 0,016-0,28Cumulative 0 0,02 0,1 0,101-0,114 0,117-0,394Biowaste 0,023 0,059-0,103 0,08 0-0,014 0,016-0,28Cumulative 0,023 0,082-0,123 0,162-0,203 0,162-0,217 0,178-0,497

Adding investment costs and running costs of buses, the introduction of biogas buses in Tartu city will pay 70-98 cents per km using Aardlapalu gas and 76 to 108 cents per km using special biowaste plant. Considering only the buses run, the gas bus costs about 16 cents lower per bus-kilometer than the diesel bus.


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Diagram 6. Diesel buses and gas buses cost comparison (cents/km). (Kütus – Fuel; R+H – Repair and Maintenance; Investeering – Investment; Kulu EUR/km – cost EUR/km).

When considering the collected life-cycle data, the life-cycle cost of introducing biogas buses in the Tartu area might be calculated on the basis of the following formula:

Total costs (EUR) = lsgb x ngb x (5,591 + Sgtr x kt, + 0,81kg), wherelsgb – the annual mileage of a single gas bus (km/a), ngb – the total number of gas buses,

Sgtr – the distance the gas shall be transported (km), kt,– the transport factor: with a pipeline =0,052, with road transport = (cost of transport (EUR/yr) x the volume of gas being transported (m3/yr)/ capacity of the containers (m3) x number of containers) / lsgb +0,208,kg – filling station factor: network station= 1; container station =0.4 ; extensive combined bus station= 1.5

When considering all of the costs related to introducing biogas and the potential annual biomethane production, the approximate cost price of biogas can be calculated. When using the landfill gas produced at Aardlapalu as a motor fuel, the calculated cost price would be 16 cents (if not including the cost of a station). If the investment costs were to include the costs related to the construction of a filling station, the cost price of biomethane would be at 17.2 cents/m3. When constructing a biowaste station on the basis of the predefined conditions, the cost price of the methane would be 32.7 cents without the station and 33.8 cents with


47

the station. Natural gas (CNG) is sold at the moment as an alternative to biogas at 0.649EUR/kg (0.779EUR incl. VAT) or approx. 0,467EUR/Nm3 when considering its specific weight. The cost of investments presented in the study are estimates and do not reflect actual price offers, thus additional analyses must be carried out for each specific project. At the same time, the competitiveness of biogas can be preserved only when sold below the price levels of the competitive natural gas. When considering the results of this study, it is an achievable objective.

Table 24. The costs of introducing gas buses in relation to the produced biogas volumes. The cost price of biogas.

Expenditures Unit

LFG BiowasteTotal yr (EUR) EUR/m3

Cum. EUR/m3

Total yr (EUR) EUR/m3

Cum. EUR/m3

Production of gas m3 2 628 000 3 007 000Biomass purchase EUR - - - 329 000 0,109 0,109Production of biogas EUR 56 500 0,021 0,021 292 000 0,097 0,207Biogas cleaning EUR 294 000 0,112 0,133 294 000 0,098 0,304Transport EUR 31 500 0,012 0,145 31 500 0,010 0,315Total EUR 420 000 0,160 984 500 0,327Filling station EUR 33 000 0,013 0,172 33 000 0,011 0,338Total with filling station EUR 453 000 0,172 1 017 500 0,338


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10. The external cost of introducing biogas buses

According to the guide notes for the analysis of the external cost of the transport sector, the following costs for envoronment and society shall be regarded as external cost of the transport sector:

• Air pollution,• Noise,• Congestion cost,• Cost of resource scarcity,• Traffic accidents,• Climate shange,• Other costs like impact on habitats, landscapes, soil and water bodies,

additional costs in the city environment and the cost of using studded tyres (IMPACT 2008, Jüssi, et al 2008).

10.1. Data and methodologyThe calculations of the external cost are based on the cost of the external cost in the relevant guide notes (IMPACT 2008 and Jüssi, et al 2008).The external cost has been calculated on the basis of the seven public transport scenarios of the city of Tartu:

• D51 – all of the 51 urban buses are diesel buses (scenario D51). The cost of air pollution for 2020 has been separately calculated, which presumes that the diesel buses are in accordance with the Euro6 emission standard,

• NG5+D46 – the existing scenario where 5 buses use natural gas and 46 buses use diesel fuel,

• BG5+D46 – scenario where the existing natural gas buses use biogas,• NG25+D26 – scenario where half of the buses use natural gas and the rest run

on diesel fuel,• BG25+D26 – scenario where half of the urban buses of Tartu use biogas and

the other half uses diesel fuel,• NG 51 – scenario where all of the urban buses of Tartu use natural gas,• BG 51 – scenario where all of the buses use biogas.

It is presumed that the costs of congestion, traffic accidents and other expences are the same for diesel and gas buses. Thus they have not been additionally evaluated in this analysis.

10.2. The costs relating to air pollutionThe emission limit values have been introduced according to the time of initial registration, and which has been established with regulation No. 122 of 22/09/2004 "The limit values of the emission volumes, smoke opacity and noise levels for a motor vehicle“ from the Minister of the Environment. The buses with the initial registration date of 01/10/2009 and later, must be in accordance with EURO5


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standards17. The actual emissions of the buses per line kilometre depend mainly on the characteristics of the journey: relief, number of stops, incl. traffic related stops and the ride dynamic (Nylund et al 2007). But also the driver’s driving style, occupancy of the bus and the technical condition of the bus influences the emission volumes.

Table 25. The emission amounts and smoke opacity limit values g/km for M2, M3, N2 and N3 category vehicles18,19 .

Norm Starting fromCO THC NMHC NOx

HC+NOx PMDiesel engines

Euro 1† 1.10.19932.72 (3.16) - - -

0.97 (1.13) 0.14 (0.18)

Euro 2 1.10.1996 1.0 - - - 0.7 0.08Euro 3 1.10.2001 0.64 - - 0.50 0.56 0.05Euro 4 1.10.2006 0.50 - - 0.25 0.30 0.025Euro 5 1.10.2009 0.500 - - 0.180 0.230 0.005Euro 6 31.12.2013 0.500 - - 0.080 0.170 0.005

Ignition engine (gasoline, gas)

Euro 1† 1.10.19932.72 (3.16) - - -

0.97 (1.13) -

Euro 2 1.10.1996 2.veebr - - - 0.5 -Euro 3 1.10.2001 2.märts 0.20 - 0.15 - -Euro 4 1.10.2006 1.0 0.10 - 0.08 - -Euro 5 1.10.2009 1.000 0.100 0.068 0.060 - 0.005Euro 6 31.12.2013 1.000 0.100 0.068 0.060 - 0.005

Diesel buses that correspond to Euro4 and Euro5 emission limits and gas buses that correspond to Euro5 emission limits are used in Tartu. The procurement conditions of this regular service contract did not enable the use of buses initially registered prior to 2008. Thus this study has evaluated only the emissions of buses with Euro4 and higher emission standards. The actual emission amounts of the buses in Tartu have not been measured.Based on the emission limit values that have been established in the EU regulations and the Estonian legal acts, the average maximum emission amounts applicable to the urban buses of the city of Tartu may be calculated.

17


18


19

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:171:0001:0016:ET:PDF


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Table 26. The emission values in the emissioons of the urban buses of the city of Tartu. LV – limit value; bus - emissions per bus; Tartu – emissions for the whole uban bus fleet of the city of Tartu.

Bus Norm

CO THC NMHC

LimitEmiss. 1 bus

Total Tartu Limit

Emiss. 1 bus

Total Tartu Limit

Emiss. 1 bus

Total Tartu

g/km kg/y kg/y g/km kg/y kg/y g/km kg/y kg/yDiesel bus Euro4 0,5 35,29 1800Diesel bus Euro5 0,5 35,29 1800Gas bus Euro5 1 70,59 3600 0,1 7,06 360 0,068 4,80 244,8Diesel bus Euro6 0,5 35,29 1800 0 0 0 0Gas bus Euro6 0,06 4,235 216 0,1 7,06 360 0,068 4,8 244,8

Bus Norm

NOx HC+NOx PM

LimitEmiss. 1 bus

Total Tartu Limit

Emiss. 1 bus

Total Tartu Limit

Emiss. 1 bus

Total Tartu

g/km kg/y kg/y g/km kg/y kg/y g/km kg/y kg/yDiesel bus Euro4 0,25 17,65 900 0,3 21,18 1080 0,025 1,76 90Diesel bus Euro5 0,18 12,71 648 0,23 16,24 828 0,005 0,35 18Gas bus Euro5 0,06 4,24 216 0,005 0,35 18Diesel bus Euro6 0,08 5,647 288 0,17 12 612 0,005 0,35 18Gas bus Euro6 0,06 4,235 216 0,005 0,35 18

There are many studies that have been performed all over the world on the emission values of urban buses. Most of the available studies that have measured actual emissioon values have been performed before 2009, thus these studies do not include data on vehicles with higher emission standards than EURO4. The studies on buses conducted in 2002-2004 in Finland show that the actual emission values exceed NOx and PM limit values for both diesel and gas buses (Arnold 2010; Nylund 2007). Only the CNG buses with stoichiometric fuel mix adjusting capabilities and the Euro4 diesel buses with SCR (Selective Catalytic Reduction) technology could achieve the standard values in the predefined range. Studies performed both in Europe and America show that the NOx and PM emissions of diesel buses were influenced the most by the occupancy and the average speed of the bus. Whereas the emission of pollutants is inversely proportional to speed and proportional to mass. The NOx and PM emissions of a gas bus were not significantly influenced by hanges in the mass and the moving cycle (Nylund 2005). The average speed (28km/h) and fuel consumption (41l/100km diesel, 39kg/100km gas) of the bus lines of Tartu resemble most the parameters that are used on the test cycles of bus engines in Europe, thus also a similar emission dynamic may be presumed in Tartu. The results of previous studies show that the diesel bus scenario may cause the increase of external costs when traffic density increases. The increase in the amount of cars results in the decrease of traffic speeds, congestion and the concurrent increase of NOx emissions.


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The manual for calculating the external cost of pollutants originating from transport emissions (IMPACT 2008) the external cost of pollutants according to the prices in 2000. In order to determine a more actual external cost, these prices are adjusted by the average annual inflation of the Euro zone during 2000-2011. This study has regarded the costs of NOx and PM, as their prices have been reflected in IMPACT 2008. The manual distinguishes between the external cost of a major city (>500k inhabitants) and a regular size city (<500k inhabitants). The indicators applicable to regular size cities have been used, when considering the number of inhabitants in the city of Tartu.

Table 27. The unit cost of pollutants EUR/t. (Source: IMPACT 2008)

Pollutant UnitIMPACT (2000. price)

Calculated2010. price

Nox EUR/t 800 1008PM linnas EUR/t 43400 54693CO2 2010 EUR/t 25 25CO2 2020 EUR/t 40 40

As the NOx and PM emissions of biogas and natural gas are not separately standardized, their relevant indicators are equal, and the scenarios of NG and BG have not been compared. The comparison of the 7 scenarios that has been taken into account when evaluating the external cost forecasts the highest external cost for the scenario that utilises diesel buses. The scenario that utilises gas buses has the lowest external cost, as their NOx emissions are lower than for diesel buses. Since the emission standards of soot particles are equal for diesel and Otto engines, the PM external cost, according to the limit values of standards, is equal for diesel and gas buses.


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Diagram 7. The NOx and PM external cost (EUR/yr) of the urban buses of Tartu according to the prices in 2010. Y-axis – cost (EUR/yr; x-axis – scenario(MG- CNGbus; BG-biogasbus; D –dieselbus; numbers show the amount of buses).

The buses with the initial registration date of 31/12/2013 and later, must be in accordance with Euro6 standards (48). This does not affect the NOx and PM limit values of Otto engines, whereas the limit values of diesel engines decrease. Due to this, the pollution levels of diesel and gas engines shall most likely even out.

10.3. The costs relating to climate changeThe SO2 emissions relating to transport are not directly standardised. In case of fossil fuels, the CO2 emissions depend on the amount of fuel that is consumed. Although strictening the standards that are applicable to the pollutants in emissions is related to the objective of reducing the emissioon of CO2 that affects climate change, the existing technologies have not managed to achieve the reduction of fuel consumption. The study performed in Finland has demonstrated that the fuel consumption of buses with different emission standards is similar (see Diagram 8).


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Diagram 8. Measured fuel consumption for buses with different emission standards (Arnold 2010).

The Tier1 methodology of IPCC 2006 Guidelines for National Greenhouse Gas Inventories enables the evaluation of CO2 emissions by only the amount of fuel used, without considering different technologies and for instance the factors resulting from engine wear (Estivo 2009). The emission volumes are calculated with the following formula:

Emission amountCO2= Fuel x SE x 44/12 x oxydising factor, where

Emission amountCO2 – CO2 emission amount (t CO2)Fuel – amount of used fuel (TJ)SE – special emission of carbon (tC/TJ)Special emissions, calorific values and oxydizing factors have been presented in Table 18.

Table 28. The calorific value, special emission of carbon and the calculated CO2 emission of diesel fuel and natural gas, as demonstrated by the urban buses of Tartu

Calorific value

Carbon emission

Oxidation factor

Fuel consumption CO2 emission 1bus All buses

MJ/kg gC/MJdm3/km kg/km gCO2/kg g/km t/yr t/yr

Diesel 42,30 20,20 0,99 0,40 0,34 3 101,691

048,37 74,00 3 774,14Natural Gas 46,67 15,30 1,00 0,54 0,39 2 604,91

1 015,91 71,71 3 657,29


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Servicing all of the bus lines of the city of Tartu with diesel buses releases 3774t of CO2 annually. If natural gas buses are used on the bus lines, the CO2 emissions amount to 3657,29t/yr, therefore objective of reducing CO2 emissions by 20% is not achieved with replacing diesel buses with natural gas buses. According to directive No. 94 of 16/07/2004 “The method for determining the carbondioxide emissioon amounts that are released into the ambient air1“ from the Minister of the Environment, the CO2 that is produced from the burning of biofuel shall be considered as “zero”20 . Thus using biogas instead of natural gas reduces CO2 by 100% or by 72 tons per bus annually. The objective of reducing CO2 emissions by 20% is achievable even with the scenario where at least 10 of the used buses run on biogas.

Table 29. The annual CO2 emissions of the urban bus fleet of Tartu by different scenarios. D – diesel bus; NG – natural gas bus; BG – biogas bus

1 bus

All D 5MG+46D

5BG+46D

25MG+26D

25BG+26D

All NG All BG 40D+11BG

Diesel 74 3 774 3 404 3 404 1 924 1 924 0 0 2960

Gas 72 0 359 0 1 793 0 3 657 0 0

Total 3 774 3 763 3 404 3 717 1 924 3 657 0 2960

Compared if all Diesel buses

100,0% 99,7% 90,2% 98,5% 51,0% 96,9% 0,0% 78,4%

Decrease 0,0% 0,3% 9,8% 1,5% 49,0% 3,1% 100,0% 21,57%

According to IMPACT 2008, the price of CO2 emissions is 25EUR/t in 2010 and 45EUR/t in 2020. Utilizing 1 biogas bus instead of dieselbus, the external cost of CO2 emissions decreases 1850EUR/yr in 2010 prices. In case of scenario 25BG+26D, the external cost of CO2 remains below 80,000EUR/yr.

20



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Diagram 9. The external cost of CO2 emissions by different scenarios of the urban bus lines of Tartu. Blue-2010 prices, red – 2020 prices

10.4 Noise related external costThe limit cost of bus noise levels is 3 cents/km during the day and 9 cents/km during the night at the prices of 2007 (Jüssi 2008). Most of the regular services in the city of Tartu are performed during the day. When considering the line kilometres of the urban bus lines if Tartu, the annual noise related external cost is 108,000EUR. When considering estimates that gas buses create 10-15% less noise21, the use of gas buses reduces external cost by 11,000EUR. The current use of 5 gas buses has reduced noise related external cost by 2%.

21



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Diagram 10. The noise related external cost (EUR) of the urban bus lines of Tartu by different scenarios

10.5. The total external cost of urban buses of TartuThe total external cost of the 51 buses on the bus lines of the city of Tartu is according to the scenario approx. 10,000-222,000EUR at the prices of 2010 and approx. 10,000-280,000EUR at the prices of 2020. As the CO2 emissions cost forms the biggest share, the most efficient possibility to reduce external costs is to replace fossil fuels with biofuels. As the CO2 emission of biogas is considered as zero, biogas has the highest impact of all biofuels. Another important challenge, in addition the replacing fossil fuels, is the reduction of fuel consumption.


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Diagram 11. A summary of the external costs related to the air pollution and greenhouse gases from the urban buses of Tartu

Adding the enternal costs and life cycle costs of biogas buses gives the possibility of evaluating the rise of total costs that are related to the introduction of biogas buses. When replacing diesel buses with biogas buses, costs are reduced by 19% (15cents/km). The use of biogas instead of natural gas reduces the total cost by 3% or 1,8 cents per line kilometre of a bus. Although external costs are lower when using diesel buses.


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Diagram 12. The external costs of using biogas, natural gas and diesel fuel, and the total WTW costs (cents/km). Red-usage cost; blue – external cost

11. Scenarios for the introduction of biogas busesThe progress of the whole biogas sector in Estonia can follow three general scenarios:

a) The liberal or downstream scenario. The introduction of biogas buses is carried out according to the sectoral market developments, whereas the impact of state aid and non-market factors is almost non-existent. The decisions for the exploitation of market opportunities shall be performed by the market participants. If the price of diesel fuel and petrol shall continue to be high in comparison to natural gas, the gas shall become more lucrative as a motor fuel. At a specific price level the savings shall outweigh the higher initial investments. Vehicle owners and transport enterprises are increasingly considering the possibility of using gas vehicles. The increase in demand means that the gas retailers and filling station owners are interested in meeting that demand. The increase of demand increases the price of natural gas, making the production of biogas from local raw materials more attractive. As newcomer on the market, the price of biogas must be lower than the price of conventional fuels in order to achieve its competitive edge. Within the conditions of increased demand, technologies are developed and their cost reduces. The availability of different gas vehicles increases. The technology (both production and consumption) becomes more available, which results in the development of the biogas sector in rural areas and increases in the coverage of the natural gas network. The increased production of biogas from manure and biomass in rural areas widens the network of gas station, which enables the increased introduction of (bio)gas vehicles. In addition to urban transport, the use of biogas buses would spread to rural areas.

b) The subsidising scenario. Different subsidies, tax incentives or other state aid that applies a single, multiple or all of the stages of biogas consumption


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enable the competitiveness of the production and consumption of biogas, in comparison to other fuels. The better initial position that is achieved with subsidies enables faster developments – the introduction of new fuels, the introduction of new resources for the production of biogas, the introduction of biogas in different transport sectors.- Subsidies for vehicles. The investment subsidies for the purchase of

(bio)gas buses and/or other gas vehicles enable the availability of gas vehicles to a wider range of consumers. In case of this type of a subsidising system, the natural gas market shall develop initially as there already is an experience with a natural gas network and the natural gas filling stations. At the moment, subsidising is not offered for the purchase of biogas or natural gas vehicles. The CO2 emission allowance trade contract with the Kingdom of Spain included the purchase of 13 gas buses to be used in the public transport of the cities of Pärnu and Narva. But also this individual subsidy helps the development of the whole transport sector, as these regions are developing the competency and infrastructure for gaseous motor fuels.

- Subsidies for the production of biogas – the investment subsidies for the construction of biogas production units and/or refining equipment. Since the initial investments of biogas plants are substantial, these subsidies influence the development of the biogas sector presumably the most. It is important to distinguish between the subsidies for the production of biogas and the production of biomethane. In the present economic situation, incl. subsidising measures, the production of biogas for the purpose of co-producing electricity and heat from it has become lucrative, because of which additional investments into refining devices are not performed on the basis of market factors. Renewable energy subsidy is at the moment 0.0537EUR/kWh22. This subsidy covers the investment costs of the biogas production unit and the co-production plant23, the sale of heat can cover the operating costs and profit forecast of the enterprise. Although the price of gas is higher when sold as a motor fuel, the initial investments are approx. two times higher and the sales amounts of gas are not guaranteed, unlike for the sale of electricity. By now, also many measures have been enforced in Estonia that support the performance of initial investments directed to the biogas production units.

o The eligible activities of the investment subsidy for diversifying the economic activities in rural areas (measure 3.1 of the Rural Development Plan) include the production of biofuel, bioheat and bioelectricity from biomass with the objective of marketing it.

22

§59.2 of the Electricity Market Act

23

According to the information from Vinni Biogaas OÜ in the 2011 study from ERKAS OÜ “ The construction of a biogas plant for producing fuel for the urban transport of the city of Tartu” – investment in the amount of 4,2M EUR, electricity output 6,9M kWh/a


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o The measure “Wider use of renewable energy sources for the production of energy” from the Environmental Investment Centre enables the subsidising of constructing electricity and heat co-production plants that are based on renewable energy sources with the necessary infrastructure for completing the network connection.

o Measure 1.4.3 of the Rural Development Plan “Investment subsidy for the production of bioenergy” supports the production of biogas and the conversion of agricultural machinery engines for the consumption of biomethane.

- Tax incentives. Avoiding the establishment of the excise duty tax for biogas; exempting biogas vehicles from parking fees; VAT incentives for biogas vehicles and the income tax incentives for the participants in the biogas production chain etc. are but a few examples of the possible tax related subsidies that might positively influence the development of the biogas sector.

c) The obligational scenario. The legal acts shall directly or indirectly establish the obligational development of the biogas sector. - The environmental sustainability and energy efficiency requirements for

the purchase of transport vehicles. This requirement is at the moment applicable to the contracting parties (within the meaning of the State Procurement Act)(24. The standardisation of pollutants in emissions have a similar impact(25. Such requirements for the purchase of vehicles favour inter alia (bio)gas vehicles. In addition, local requirements for the use of biogas vehicles in public transport service procurements (public transport, waste transport) may be enforced. A similar requirement has been enforced for instance in the procurement of the regular services of the city of Tartu, where it was obligatory to introduce at least 5 gas buses.

- The environmental sustainability and energy efficiency requirements for the production of transport vehicles. For instance, the standard limits for pollutants in emissions(3 that apply to the acquisition of type-approvals for new vehicles force the manufacturer to develop more efficient and environmentally friendly technologies. If this is more easily and cheaply achieved for biogas engines, the offer of such vehicles increases.

- The obligation to sell biogas at natural gas stations. For instance, the biogas regional strategy could include the obligation to mix natural gas

24

Regularion No. 138 of 27/10/2011 “Energy impact and environmental impact requirements for the purchase of road vehicles, which cover the whole life cycle1”. State Gazette I, 01/11/2011, 2

25

Regulation No. 122 of 22/09/2004 “The limit values of pollutant amounts in emissions, smoke opacity and noise levels of motor vehicles” from the Minister of the Environment. Appendix to the State Gazette 2004,128,1986


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with 20% of biogas by 2020. Such an obligation functions similarly with the green energy on the electricity market. Such an obligation presumably increases the price of gaseous fuels, which could impact the development of this field in a negative manner.

The development of the biogas sector until now in Estonia is a combination of the aforementioned scenarios. On the whole, the development until now has followed the downstream scenario. Since the cost of conventional fuels has rapidly increased on the market and the continuation of this trend is forecast, natural gas has become atractive as an alternative. The ecomonic arguments have been the main incentive for the introduction of gas vehicles. At the samet ime, several direct and indirect subsidies have been enforced, mainly to the production of biogas. Also several legal acts have been enforced that support the inroduction of biogas vehicles.The most rapid impact might be presumed from the subsidising scenario. The decrease of investment costs enables the adequately quick establishment of the biogas production infrastructure, its refining, transport and filling. At the same time, the subsidies are linked with market distortions that limit the competitiveness of later entrees. The downstream scenario might on the other hand be too long-term. Relatively simpler and cheaper technologies (e.g. mass burn) that develop faster compete for the same resources, and the development of the biogas sector may be hindered by the shortage of resources.

12. Presenting biogas buses to the public

12.1. Target groups and partiesThe introduction of biogas buses is related withe a number of actions and decisions. The timely and diligent performance of the processes require the inclusion of several parties:

• The legislative and executive powers. Institutions on the state and local level,

• The research and development establishments: universities, research enterprises and consultation enterprises,

• The distributers of gas: enterprises connected with the transport of gas, gas network enterprises, and the enterprises and filling stations selling gas,

• The producers of gas: enterprises linked to the production of biogas,• The producer and retailers of vehicles,• The media.There is drafted a regional biogas strategy in January 201226, according to which the strategic objectives of the Estonian biogas, according to the cycles of use, could be:• Input – economically profitable volumes of biowaste and biomass should be

used in the production of biogas by 2030,

26

http://www.tartu.ee/data/BG_regionaalne_strateegia_ja_tegevuskava.pdf


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• Production – an annual biogas potential of 900GWhel/yr, with the rated electrical output of 110MW or when completely exploiting 235M Nm3 of biomethane for converting national renewable energy into useful energy – electricity, heat energy and transport fuel – shall be achieved by 2030. By 2020, half of the 2030 objective, meaning 55MW or 117M Nm3 of biomethane, should be achieved,

• Refining – biogas should be refined according to the foundational needs, and the quality and conformity with the agreed standards should be ensured for biogas and biomethane,

• Storage and transport – a legal framework should be created for the storage and transport of biogas and biomethane, and the development of the relevant infrastructure should be encouraged,

• Final consumption – the consumption of biogas and biomethane should be increased to the maximum possible levels, so that the agreed target indicators could be achieved,

• Notification – biogas and biomethane are local renewable energy sources that are as well known as wood logs or pellets.

12.1.1. Legislative and executive powers.When trying to achieve the aforementioned strategic objectives, the legislative and executive powers play a key role there. The state and local strategies that define the overall framework must be improved or introduced in several different domains: energy management, waste management, transport as well as the


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strategies related to EU and national subsidies. In addition, legal acts should establish the legal basis for biogas and biomethane as fuels, but also the production, refining, supplying and use of biogas. 12.1.2. Research and development establishments. Numerous studies have been performed on the production and use of biogas. At the same time, these studies are based on the precise location, materials and background information. Research facilities play a key role in the development of specific solutions for Estonia, and more specifically Tartu. The study, which lead to the development of the most suitable recepy for fermenting the sewage mud of Tartu, that was commissioned by Tartu Veevärk AS might be a suitable example. 12.1.3. Distributers of gas and gas filling stations. The refuelling systems of gaseous motor fuels differ significantly from the liquid fuel refuelling solutions. Pressure equipment, and also intermediate tanks for keeping certain amounts of fuel pressurised, are necessary. A gas station might use only natural gas, only biogas or both. In any case, investments are necessary. The technical possibilities limit the amount of gaseous fuel that is carried on the vehicle. As the distance between refuelling is shorter for regular gas vehicles than for the equivalent diesel or petrol vehicles, the density of filling stations is even more important for gas vehicles than for vehicles using traditional fuels. The retailers of fuels are therefore an integral part of introducing gas fuels.12.1.4. Producers of gas. As the mort substantial initial investments in the biogas chain are involved with the production and refining of gas, then the subsidies directed to this sector have the greatest presumable impact on the development of the whole sector. The enterprisingness and attitude of the producers of biogas determine on the whole the emergence of the accompanying benefits and dangers. On the other hand, the impact of producing biogas on the functioning of the rest of the chain is relatively low, if alternative solutions exist. 12.1.5. Manufacturers and retailers of vehicles. Increasing the total amount of biogas, but also natural gas, used as a motor fuel is not possible without the wider introduction of the relevant vehicles. At the moment, many manufacturers of cars, trucks and buses offer gas vehicles in their range. In addition to the gas vehicles’ ability to sell, it is important to develop the maintenance and repair competency for gas vehicles. Since the gas vehicles are somewhat more expensive than their diesel or petrol alternatives, the emergence of an aftermarket is important to the development of the field. According to the data in the web portal auto24.ee, there are currently no vehicles on sale that run on only CNG, at the same time 11 cars and vans with a petrol engine that have been supplied with a gas device are on offer27.12.1.6. Users of biofuel vehicles. This target group includes both private persons and bus fleets, but also other institutions that possess other means of

27

www.autod24.ee in 25.03.2012


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http://www.autod24.ee/

transportation. In many regions, incl. Estonia, the persons introducing alternative fuels into consumption and the persons advocating this field have been owned by the public sector or have been enterprises related to the provision of public services – regular service providers, waste transporters and law enforcement institutions. On one hand, higher mileage reveals positive impacts (e.g. savings from the reduction of fuel consumption) more clearly. On the other hand, the decisions of the public sector play a key role in achieving a more widespread positive impact, in addition to the financial considerations. 12.1.7. Increasing the use of gaseous fuels in cars might happen in stages. The existing dual-fuel technologies create a suitable setting for this. In the first stage, where the knowledge of gaseous fuels (CNG and NBG) is limited, gas devices are installed on vehicles with a petrol engine. As the network of gas stations expands, and the knowledge and experience accumulate, the use of gas vehicles might begin. Agricultural producers form a significant portion of the users of gas vehicles. Most of the current developments in the field of biogas transport have happened in cities. At the same time, the agricultural producers possess extensive resources of biogas raw materials, and as they are close, it is efficient to produce biogas on location. The available gas can be used inter alia as a fuel for agricultural machinery. The energetic independence of rural areas is increased. At the same time, this will result in the introduction of biogas as a motor fuel, and the development of the whole field in rural areas. 12.1.8. Media. In order to ensure a more extensive propagation of the information, it is important to involve the media. As the information spreading through different mediums increases unawareness related fears, it is important to dispense adequate and actual information. The use of dedicated web pages is a good opportunity.

12.2. The benefits and possibilities of the introduction of biogas

12.2.1. Environmental friendliness12.2.1.1. Environmentally friendly fuel productionThe impact of biogas on the environment is constant throughout its life cycle, fromproduction until use as a motor fuel. Biogas can be produced from waste, which’removal has been subject to extensive efforts until now, and this often on theexpense of the environment. The outputs of biogas production are on the whole two environmentally friendly products: biogas and the semi-solid production residue used as a soil conditioner. Biogas possesses the lowest ecological footprint of the biofuels currently on the market, its production involves the least amount of energy. At the same time, biogas can fully replace the fossil fuels for both heat and electricity production, but also as a transport fuel. The residue from the production of biogas includes organic and mineral substances, thus it can be used as a fertilizer, as traditional slurry, or as compost in its dried form. Thus the NPK balace of the biogas production residue is even better than for unfermented manure, since the share of nitrogen has decreased. When treating the field, the leaching of nitrogen is lower and the amounts of nitrogen that reach the water bodies are smaller. This means the reduction of the danger of eutrophication.12.2.1.2. Reduced methane emissions


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Methane is one of the greenhouse gases. The impact of methane on the greenhouse effect is evaluated as 25 times higher than that of carbondioxyde, during a period of 100 years28. Agriculture is considered as one of the biggest sources of methane emissions, where animals and their excrements release a quarter of the total amount of methane that is released into the etmosphere. The weakness of the traditional manure storage facility is that the methane is released straight into the atmosphere. The production of biogas is carried out in a closed reactor, where methane and other gases are collected and later used as a fuel. The landfill sector faces similar problems like the methane emissions in the agricultural sector. Methane is also released from an uncovered andfill. When covering the landfill with a gas-tight layer, the landfill gases, of which methane has the highest volume, shall be collected and redirected into use.12.2.1.3. Reduced CO2 emissionsThe introduction of biogas helps to also reduce the emissions of another important greenhouse gas that causes climate change – carbondioxyde CO2. CO2 is a greenhouse gas that is released into the atmosphere the most as a result of human activity. All of the EU member states have taken to obligation of reducing CO2 emissions by at least 20% by 2020, in comparison to the levels of 2005. Although Estonia has been awarded the right to increase the CO2 emission amounts (by 11%) during the aforementioned period for the objective of economic development, the lowest possible greenhouse gas emissions are the objectives of both Estonia and the city of Tartu. The benefit of biogas in that field is the possibility of replacing fossil fuels with renewable energy. The production of biogas, unlike the fossil fuels, does not disturb the balance of the carbon cycle, meaning not producing any extra CO2. Replacing each diesel bus with a biogas bus in the city of Tartu reduces the CO2 emissions by 88t/yr.12.2.1.4. Environmentally friendly waste handlingOrganic waste forms the majority of the waste that has been transported for depositing until now. Biodegradable waste is the main „culprit“ for the smell of the landfill, but also other waste related things. Many parties have undertaken large-scale efforts to create composting technologies that would inhibit the spreading of odours, but which could also increase the temperature of the material by the amount necessary for destroying harmful micro-organisms. The production of biogas is performed in closed tanks, where increasing the temperature is simple and where all of the produced gases are collected. As biogas can be utilised at the same place where the food or waste was created (e.g. as green electricity, heat or motor fuel), then biogas is an important intermediate stage for the creation of an energy cycle. Collecting the biodegradeable part of the municipal waste separately helps to reduce the waste amounts being deposited. Paper and cardboard, timber and biodegradeable textiles can be separately collected and reused or recycled. The kitchen waste is the most suitable for the production of biogas. When considering the population of the city of Tartu, 98,653 inhabitants,29, the average biomethane

28

Wikipedia: http://en.wikipedia.org/wiki/Methane, selles Schindell, et al (2009).

29

On 25/03/2012 the population of Tartu according to the city’s webpage was 98,653 inhabitants


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production per person is 22m3/yr. When considering that the average size of a household is 3 people, each household in Tartu produces enough kitchen waste that it would be possible, when collected separately, to produce 66m3 of methane gas, which would be enough to fuel a gas bus for 168km or e.g. enable to travel 9 times the length of bus line No.1. This demonstration of direct or indirect cost is a good argument for the separate collection of waste.12.2.1.5. Preserved substance cycleThe production of biogas does not inhibit the substance cycle. The nutrients that have been extrated from the organic substance environment with the production of food and other goods can be mostly reintroduced into the environment. The nutrients (N, P, K, Ca, Mg) that are contained in the input material shall be preserved in the biogas production residue in a state that is dissolved and assimilable to plants. If the production of biogas has used an organic substance that does not contain environmentally dangerous additives, the residue can be transported straight onto the field for treating the soil or can be dried and additionally composted.

12.2.2. Energy security 12.2.2.1. The strategic energy resource as a replacement for conventional fuels.Most of the European countries do not possess the fossil fuel resources necessary for covering their own needs. Estonia has the possibility of mining oil shale for the production of electricity, but there is no oil or natural gas that the majority of the transport technologies use. Thus the Estonian economic development is largely dependent on imported energy carriers. The global energy consumption is constantly rising – the rise in the consumption levels of bigger economies, like China and India, is monumental. At the same time most of the conventional fuels originate from politically unstable regions. Thus the development of energy carriers that have been developed on the basis of a local resource is a strategically important move for Estonia. The biogas that is produced with different technologies includes 50-75% of methane. In case of most of the biogas production technologies, biogas can carry enough energy to be used for running a heat and electricity co-production plant. When refining the gas, biomethane can be obtained, which’ properties allow for it to be used instead of natural gas in devices that are designed to be run on natural gas. The technologies that have been developed around the world enable the use of biomethane inter alia as a fuel for transport vehicles. Thus biogas can satisfy the needs of the most important energy consumers in Estonia. The dependence on imported natural gas and oil-based fuels is reduced.12.2.2.2. Biogas as a resource-efficient strategic energy source.


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Biogas is a renewable energy resource and it can be produced without harming other vital resources – the production of biogas does not require the use of fields or food cultures that are suitable for the production of food. The production of many biofuels is not sustainable with the available technologies. Oleaginous plant cultures, e.g. rape seeds, coleseeds, are often used for the manufacture of biodiesel, grains and potato for the production of bioethanol. Thus the production of the aforementioned biofuels reduces the resources necessary for food production. In accordance with the positions agreed upon in the EU and the regulation No. 38 of 19/05/2005 from the Minister of the Environment, a production method of bioenergy is not sustainable, if it uses high-performance fields30. Sources of bioenergy that are not sustainable are not suitable for covering the obligation of developing renewable energy, which has been assumed with international agreements.The raw materials of biogas among the materials that have been traditionally classified as waste are ample. Of the globally common biogas raw materials the following are available in Estonia and in Tartu: Landfill gas – the annual average gas emission of the closed Aardlapalu landfill is evaluated on the basis of different information at 1-10M m3, when considering the methane content of the landfill gas (50-60%), the potential volume of biomethane that could be used as a motor fuel is 0.5-6M m3/yr, Sewage mud – the biogas production from the residual sewage treatment mud by AS Tartu Veevärk is evaluated at 1.12M m3/yr, Biodegradable waste – 38,000 tons of mixed municipal waste is collected in the city of Tartu annually. According to research, the waste collected from people includes approx. 32% biowastes, like kitchen waste, garde waste etc. If this amount could be collected separately from mixed municipal waste, 12,000 tons of biowaste would be collected annually that could be used for producing biogas. Considering that biowaste produces 100-200m3/t of biogas, the annual volume of biogas would be 1.2-2.4M m3, Manure – there are many agicultural producers in the vicinity of Tartu whose cow and pig barns produce huge amounts of manure that is transported onto fields. One of the possibilities that has not been actively used until now is the production of biogas from manure and the depositing of the residue as fertilizer on fields. In addition to decreased smell levels, the nitrogen levels of the material have decreased and the provisions of the Water Act can be more easily fulfilled. The studies estimate the biogas production potential from the manure produced in the Tartu County at approx. 1.2M m3/yr.

12.2.3. Financial profitabilityA new biogas bus costs 10-20% more than a new diesel bus. New diesel engines use technologies that reduce the pollutant amounts in the emissions in comparison to gas buses to levels that are not significantly higher. Also the fuel consumption does not differ significantly (41l/100km for a diesel bus and 39kmCH4/100km for a gas

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bus in the conditions of Tartu). At the same time, the benefit of gas usage is its price. Even if the gas price keeps rising on the Estonian market, it is continually almost half as cheap as diesel fuel. 1kg of natural gas at the Tartu natural gas station costs 0.779EUR/kg, which’ cost, when converted into its calorific value, is 0.014EUR/MJ. On the basis of the calorific value, the price of natural gas is approx. three times lower (2.86) than for diesel fuel, and over three times lower tham for petrol 95. If choosing the fuel consumption of an urban bus of the city of Tartu as a comparative factor: 41l/100km for diesel buses and 39kg/100km for gas buses, the price of travelling 1km the fuel cost for a diesel bus is 59 cents and 30 cents for a gas bus (retail prices at the stations). If considering 70,600km as the annual mileage of a single bus, the annual savings could be 20,474EUR, which is approx. 10% of the purchase price of a new bus. This simple calculation demonstrates that the higher investment costs of the gas bus are earned back within 1-2 years.

Table 30. Fuel prices

Fuel

Calorific value Fuel price Orign of the price

MJ/kg MJ/dm³EUR/l või EUR/kg EUR/MJ*

Diesel 43,1 35,86 1,190 0,033Neste station (Narva mnt) 29.03.2012

Gasoline 95 43,2 32,18 1,195 0,037

Neste station (Narva mnt) 29.03.2013

Natural gas 55,7 39 0,649 0,011

Eesti Gaas station (Tähe tn) 29.03.2012

* Per unit of sale (l – liquid fuels or kg - gas)

Biomethane that has been refined according to the motor fuel requirements is very similar to the properties of fossil natural gas, thus it can be utilised in all gas engines. Biogas has not been sold as a motor fuel in Estonia until now. The experiences of neighbouring countries show that the price of biogas is slightly higher in the filling station than the price of natural gas. For example, the price of biogas in the station of Gasum Oy, Finland is 1,44EUR/kg compared with 1,32EUR/kg of natural gas 31. The webpage www.tankkaus.com that monitors the fuel prices in Finland reports that the average price of diesel at the Espoo station is 1,552EUR/l32. Thus a biogas that is more expensive than natural gas is still 1.5 times cheaper than diesel fuel.

31

Gasum OY kodulehekülg: transport:hind: http://www.gasum.fi/liikenne/Sivut/Hinta.aspx [seisuga 28.03.2012]

32

tankkaus.com kodulehekülg: Keskihinnat 02 2012. www.tankkaus.com/fills/average_price. [seisuga 28.03.2012.]


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http://www.tankkaus.com/

http://www.gasum.fi/liikenne/Sivut/Hinta.aspx

12.2.4. Support to regional developmentBiogas technology results in significant changes in the socio-economic condition of the whole chain. Since this field is relatively new for Estonia and Tartu, new possibilities become available to the following persons:

- The producers and suppliers of the raw materials necessary for the production of biogas – agricultural enterprises, water enterprises and waste handling enterprises,

- The manufacturers and servicing parties of the technology – the manufacturers of the technologies that are related to the production of biogas, the refining of biogas and the transport of biogas, the manufacturers and re-modellers of biogas vehicles, manufacturers of refuelling systems, and the manufacturers of gas heating systems and co-production plants,

- The intermediaries, - The consumers,- The research and development facilities.

If until now, the Estonian energy industry has limited itself to the Estonian oil shale and timber, then biogas creates the conditions for the emergence of agricultural enterprises, water enterprises, waste handling enterprises and also food industry enterprises as fuel producers. Enterprises, which production residue or waste is biodegradable materials, are more autonomous in their choice of location. This is why biogas technology enables the establishment of enterprises also at distance from the gas network, in some cases the dependence on the electricity network is lower. The produced biogas is usually used in the local heating system or at a heat and electricity co-production plant. Such an energy cycle would help to reduce the costs of the enterprise. The improved financial results boost the regional development. The experince of Sweden shows that the sale of biogas that is produced from agricultural residue or waste might exceed the traditional agricultural production in its net sum. Thus the production of biogas is a possible income source and a mitigator of seasonal risks in rural areas.

12.3. The weaknesses and dangers of the introduction of biogas

12.3.1. Lack of experience. There are many biogas production plants in Estonia and many other are being developed. All of the existing biogas plants use the gas in a co-production plant. Thus far biogas has not been refined in Estonia. Although the neighbouring countries – Finland, Sweden—have several biogas plants that produce motor fuel, the lack of experience might be one of the most important hindrances to the introduction of biogas.12.3.2. The environmental impact of biogas Unpleasant odours. Biogas is produced by anaerobically fermenting biodegradable


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materials. Pure methane is odourless, but during the fermentation several sulphur and methane substances with an unpleasant smell are released. Although fermentation is carried out in closed gas-tight fermentation tanks, odours may spread during the input of the raw materials. The raw material is often already “smelly” due to the decomposition processes that have already started there. The separate sorting of biowastes and the separate collecting of these wastes from the waste producers are especially sensitive in that respect. Due to the spreading of the unpleasant odours, all of the aspects for determining the location of a biogas plant must be considered. The windward sides of high-populated areas and settlements. 12.3.3. Noise, dust and air pollution supplement by transport. The transport of raw materials, and in some cases the transport of gas, cause the aforementioned environmental disturbances in the biogas production chain. E.g. according to the biogas raw materials’ study in the Tartu area, 3750 roundtrips must be made at 10t transport volumes in order to transport the available greenery mass volume of 37,500t. When calculating the mowing period at 3 months (july–september), an average of 41 daily roundtrips must be made. 12.3.4. The digestate includes substances. It must be considered that when producing biogas from biowaste, sewage mud or manure, they must be recovered before using them as a fertilizers from fermentation residue. As the production of biogas does not require the significant increase of the materials’ temperatures, the micro-organisms and parasites that are dangerous to the health of humans and animals are not destroyed in the raw materials. Due to this, equipment is installed at the biogas plants that use sewage mud and wastes that heat the substrate’s temperature to at least 70 degrees Celsius. 12.3.5.Investment costs The production of biogas with the objective of using it as a motor fuel is a new field in Estonia. Thus far no biogas refining plants have been built that could refine the biogas according to the standards that apply to gas directed into the natural gas network or the gas used as transport fuel. The levels of biogas production are also relatively low. The existing investment subsidies have enabled the completion of projects, which’ objective is the use of alternative fuels (incl. biogas) for the co-production of electricity and heat. When combining the costs of the biogas production unit and the biogas refining plant, the initial investment amounts to 2.5-3.5M EUR (ERKAS 2011). Costs for the construction of the gas transport system (gas trucks or a pipeline) and the filling station. The initial investment of a single biogas chain would amount to 5-6M EUR. The production of biogas from separately collected biowaste adds investments for the waste handling system (containers, the collection system, notifications etc.). At the same time, Eesti Gaas has presented its position that using a minimum of 6 gas buses is necessary for reaching the profitability of a filling station (Martinson 2012). 12.3.6. Higher maintenance and repair costs of the biogas buses. According to different information, the maintenance and repair costs of biogas buses are 10% (Ruusamäe 2012) – 20% (Assets RPM 2010) higher than for diesel buses. Often also the existing maintenance and repair facilities dedicated to diesel buses must be reconstructed. In the repair facilities of diesel and petrol vehicles the ventilation exhaust is at floor-level, since the hazardous CO is heavier than air.


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Whereas the explosive gas in gas engines is lighter than air, which means that the ventilation exhaust must be constructed at ceiling-level. 12.3.7. The low number of filling stations. There are currently no biogas refuelling possibilities in Tartu and the rest of Estonia. Two natural gas filling station that are owned by Eesti Gaas AS can be used - one is in Tallinn (Suur-Sõjamäe 56a) and the other one in Tartu (Tähe 135E) 33. In relation to the emission allowance trade contract between the Republic of Estonia and the Kingdom of Spain, 13 new gas buses shall be purchased in Estonia, which are divided between Pärnu and Narva. Due to this, Eesti Gaas has decided to construct natural gas filling stations in these cities. An adequate gas station network must be constructed for the introduction of gas vehicles. Therefore it is important that also biogas could be directed into those stations. One of the possibilities is to direct biogas into the natural gas network. Another option is to use special biogas stations or combined stations, which enable the refuelling from the natural gas network and the biomethane containers. The existence of gas stations is a prerequisite for the popularisation of the highway transport and personal vehicles that use gas. On the basis of the characteristics of the urban buses of Tartu (39kgCH4/km; fuel tank 170kg), the range is approx. 430km. On the basis of the calculator on the homepage of Gaznet OÜ, the range of a car with a 50l gas tank and an average fuel consumption of 8lpetrol/100km is 160km; 320km with an additional 50l tank34. When considering the experience of the neighbouring countries, the first users of gas vehicles are public transport and utilities enterprises, or the buses and trucks. This is why the gas stations must initially enable the access to also bigger vehicles. 12.3.8. Adequacy of the gas supply. An important hindrance to the increase in the use of biogas might be the availability of biogas. The biogas production equipment is efficient within a certain planned production range and the increases of the production are not possible without additional investments. In addition, a failure in any link of the biogas supply chain might cause a halt of supply. Due to this, the chain might need to be doubled, which increases the investment costs, or the biogas network might have to be connected to the existing natural gas network. When evaluating the adequacy of the biogas supply, also the transport needs of the gas must be taken into account. 12.3.9. Availability of the raw materials. The forecasts on the suitable raw materials in the Tartu area are good (see chapter 7). At the same time, the availability of raw materials is ensured constantly and for a long period:

- The production of herbaceous biomass is only possible during the summer period. Although herbaceous biomass can be preserved, the preservation technologies are related to the degradation of the properties of the biomass.

33

http://cng.gaas.ee/et/maagaasi-autotankla (23.03.2012)

34

www.auto-gaasiseade.ee/kalkulaator.html.


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http://cng.gaas.ee/et/maagaasi-autotankla

- The reduction of biowaste amounts in relation to the changes in consumer habits. The reduction of waste amounts and/or the general reduction of waste as a result of the improvement of consumer habits that are the results of the economic downturn, might cause the reduction of biowaste amounts.

- competition over raw materials. A secondary market has already partially emerged (for whey, brewers’ grains, grease and oils), and is generally emerging for the industrial biowastes. Also many biofuel producers compete over raw materials: Different organic materials can be used for the production of biodiesel and bioethanol. In addition, mass burning plants that can use different wastes without sorting it compete with the biogas producers.

- Changes in the raw materials. The contents of the waste determine the output of the gas, when producing gas from biowaste. On the basis of studies, the produced gas is impacted the most by the grease content (Vana 2005). The content of the waste might depend on the season: there are presumably more fruit and vegetable wastes and garden waste during the summer and winter periods. The gas production might be stabilised with the development of digestate recipes and adding different components when necessary. This presumes the availability of additional substances or storage options.


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13. ConclusionsEstonia has assumed multiple international obligations in relation to the reduction of greenhouse gases that cause climate change. Also objectives have been defined for achieving energy efficiency and the wider use of renewable energy sources. As a large portion of the CO2 being released into the atmosphere originates from the transport sector, the improvement measures have the greatest impact here. The use of biogas as a transport fuel is one of the possible solution that would accomplish the objectives of energy savings, environmental cleanliness and energy security. The city of Tartu is the first city in Estonia to take actual steps towards developing a more environmentally friendlier urban transport. During the course of the last regular services procurement the terms were defined that at least 5 buses must use CNG. Winner of the procurement SEBE AS introduced gas buses on 01/01/2011. Thus there is already some experience with the use of gas buses. The most important edge of the gas buses has been considered the low fuel costs. This has been confirmed in Tartu, as at the average fuel consumption of 41l/100km for the diesel buses and 39kg/100km for gas buses the fuel prices in in favour of the gas by approx. 75%. In addition to the fuel price, there are several other circumstance that are in favour of the biogas:

- It is produced on location from an available resource, - it is produced from raw materials (biowaste, sewage mud, manure etc.)

that were considered waste until now,- Usable in natural gas engines. No conversions necessary for the use of

biogas,- Usable as a second fuel on diesel and petrol engined vehicles. Relatively

simple conversions give the vehicle the additional option of using gas,- Cheaper than other fuels. When presuming that the price levels are

similar to natural gas, the fuel cost of biogas is 43% lower than when using diesel fuel, as demonstrated by the urban buses of Tartu,

- Reduced CO2 emissions. When biogas is burned, the CO2 special emission shall be considered as zero, since this fuel type does not produce additional CO2. As demonstrated by the urban buses of Tartu, the introduction of 1 biogas bus instead of a diesel bus reduces CO2 emissions by 74t/yr or by 2% of the annual CO2 emissions. At the same time, 1 natural gas bus reduces the CO2 emissions by 2,3t/yr or by 0.06% of the annual amount,

- Reduced pollutants emissions. Although the properties of diesel engines in relation to the enforced pollution standards are constantly improved, the NOx and CO emission indicators of gas buses are better than those of diesel buses’.

- Reduced external cost. The external cost that is derived from the CO2 emissions is 0EUR for a biogas bus, the equivalent cost for a diesel bus at 2010 price levels would be 1850EUR and at 2020 price levels at 3330EUR, and 1800EUR and 3240EUR respectively for natural gas buses. The


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External cost of NOx and PM for a diesel bus is 48EUR and 29EUR for gas buses (both biogas and natural gas).

The resource of the raw materials for the production of biogas in the Tartu area are the biowaste, industrial biowaste, sewage mud, manure and herbaceous biomass that is included in municipal waste. When considering the availability of the aforementioned raw materials, herbaceous biomass has the highest potential. But when considering the resource production ability of the city of Tartu itself, the most perspective are still the biowastes (the kitchen and garden wastes) that are deposited among municipal waste, but also the residue from the food industry (animal and plant residue, brewers’ grains, whey, oils and grease), and landfill gas. When taking into account the existing production capacity for the landfill gas from the Aardlapalu landfill, the biomethane for 36-39 biogas buses could be produced, when investing into the refining equipment. When gasifying the biowaste and industrial biowaste collected from the inhabitants of Tartu, an additional amount of fuel can be added to the market that would cover the needs of 121 biogas buses. When also including the potential of the herbaceous biomass, over 7M m3 of biomethane could be produced annually in the Tartu area, which would cover the needs of 191 biogas buses.

Althought the biogas production resources are present in the area and the benefits of biogas buses are known, theis introduction is inhibited by high initial investments. All of the considered life cycle costs increase the introduction price of biogas buses. Although the biogas production infrastructure is practically non-existent and the biogas production units are small, the production costs of 1m3 of biogas are relatively high. When considering the situation of tartu, the production cost of biomethane is 1.6 cents/line km, the refining cost of biogas is 8.2 cents, the transport cost is 1.1 cents (transport from Aardlapalu using a pipeline) or 0.7 cents (transport from Aardlapalu on trucks) and the cost of refuelling 16-2.7 cents/line km according to the station type. The WTW life cycle cost of the biogas originating from the Aardlapalu landfill is 13.5 cents. When considering the production of biogas from biowaste (from both the inhabitants and the industries) up to 8.4 cents/km is added to the production cost. When comparing the vehicle costs, the purchase price and the maintenance and repair costs of a gas bus are higher, but the fuel cost lower. The investment costs relating to the bus are 19 cents/km for a diesel bus, 24 cents/km for a gas bus, meaning 26% higher. The maintenace and repair costs for a diesel bus are 20,7 cents/km, 23 cents/km for a gas bus, meaning 10% higher. The fuel costs for a diesel bus are 44 cents/km, 25 cents/km for a gas bus, meaning 43% lower. The bus related total costs for a diesel bus are 69.5 cents/km and 58.2 cents/km for a gas bus. Whereas the fuel costs form 64% of the costs for a diesel bus, 43% for a gas bus. If the production and refuelling costs related to the production of biomethane from the landfill gas from the Aardlapalu landfill were to be added to the introduction


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costs of the buses, the introduction cost of a single urban bus of Tartu would be 71.7 cents/km, which is 3% higher than when continuing the use of diesel buses. When utilising biowaste, the total costs of the introduction are 80.1 cents/km (+15% in comparison with diesel buses).

When we take in to account external costs (costs for environment and society) the picture will become reversed. Adding the enternal costs and life cycle costs of biogas buses gives the possibility of evaluating the rise of total costs that are related to the introduction of biogas buses. When replacing diesel buses with biogas buses, costs are reduced by 19% (15cents/km). The use of biogas instead of natural gas reduces the total cost by 3%.

Taking advantage of the aforementioned benefits and options, and removing the deficiencies cannot be achieved without external support. One reason is the lack of knowledge and skills in both the biogas’ as well as the motor fuels’ field. Considering the results of several studies that have been conducted by now, it is necessary to develop an effective subsidising system that would include (in addition to investment subsidies) different regulations that would help to position biogas on the fuel market, ensure tax incentives and subsidise the implementational studies.


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14. References1. Ahonen. S. (2010). Aluellinen liikennebiokaasun tuotanto, siirto ja jakelu - esimerkkitapauksena Keski-

Suomen maakunta. Jyväskylän Yliopisto, Bio- ja ümpäristötieteiden laitos. Master thesis. Jyväskylä 2010.

2. Arnold et al (2010). Arnold, M. Kytö,M. VTT Technical Research Centre of Finland (2010). Biogas bus emissions and cost issues. Baltic Biogas Bus seminar, Kaunas 22.09.10. Kaunas 2010. http://www.balticbiogasbus.eu/web/Upload/doc/Kaunas_201009/3%20VTT%20Mona%20and%20Matti.pdf

3. Aro, K. (2008). Ankeetküsitluse "Tartu ja Tartlased 2008" tulemused. Tartu 2008. Tartu linna kodulehekülg: http://info.raad.tartu.ee/uurimused.nsf/236552664d75f727c2256c4b00207453/ba81a8f4667e5c24c22574f300499d06/$FILE/Arvamusaruanne.pdf

4. Aro, K. (2009). Euroopa säästva arengu seiremetoodika "Läbilõige säästvusest kohalikul tasandil - Euroopa ühtsed indikaatorid (ECI)". Indikaator nr A.3 Kohalikud liikumisvõimalused ja reisijatevedu. Küsitluse "Tartu ja Tartlased" alusel. Tartu Linnavalitsus Linnaplaneerimise ja maakorralduse osakond. Tartu 2009

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