Workshop Opportunities of Austrian enterprises to realise biomass projects in Ukraine, 8th of May, Vienna

Transcription

1 Workshop Opportunities of Austrian enterprises to realise biomass projects in Ukraine, 8th of May, Vienna Biomass District Heating in Ukraine Potential and Best Practice Examples Dr. Georgiy Geletukha Director of Scientific Engineering Centre Biomass, Kiev, Ukraine

2 SEC Biomass SEC Biomass was found in 1998 Current staff is 21 persons, including 6 PhDs SEC Biomass activity areas General bioenergy issues Biomass combustion Biogas technologies Design works Energy efficiency & Energy audits Kyoto protocol issues R&D Energy audits Main types of work Feasibility studies Business planning, project management Evaluation of biomass energy potentials Consulting on technologies for energy production from biomass Design works Organization and holding the core conferences, seminars and study courses Development of Project Idea Notes (PIN), Project Design Documents (PDD), portfolios of JI projects, Green Investment Scheme (GIS) projects Management and monitoring of JI projects

3 The structure of energy resources consumption in Ukraine, % (2010) World Ukraine EU-15 Countries USA Natural gas 21,1 42,6 24,5 23 Oil 33,1 10,0 36,6 38,9 Coal 27 27,9 15,7 23,7 Uranium 5,8 17,9 13,5 9,3 RES 12,8 1,6 9,0 5,1 Conclusions: 1. Unreasonably high part of natural gas in Ukraine s energy balance approximately 2 times higher than in other countries 2. Low share of RES -5times low than in EU

4 Natural gas consumption in Ukraine in 2010 Sectors of NG consumption Consumption of NG according to sectors, bln. m3 Share of the total Industrial consumers 23,8 41,7% Population 17,6 30,9% Heat and power authorities and CHPPs State-financed organizations Engineering and manufacturing needs of gas industry About 50% of natural gas is used for heat supply 8,3 14,6% 0,7 1,2% 6,6 11,5% Total 57,0 100% 46,7 % Source:

5 Cost of imported natural gas at the Ukraine's border Cost of natural gas, $/1000 m , , I-qt * forecast 2010 II-qt III-qt IV-qt I-qt 2011 II-qt 2011 III-qt * IV-qt

6 Natural gas price at the domestic market of Ukraine for different consumers categories Forecast Gas price including VAT, UAH/1000 m Import State-financed sector and industry Housing and communal utilities Population <2500 m3/year Population <6000 m3/year Price for industry and State-financed sector is presented without costs of transportation and gas supply and additional levy of 2% that in total additionally reach 10-15% of natural gas price

7 The cost comparison of the biomass fuels and natural gas Cost LHV Cost of energy in the fuel UAH/t MJ/kg UAH/GJ The ratio of energy cost in NG to the energy cost of biomass NG for industry and budgetary organizations 4500UAH/1000 m3 = 128,6 UAH/GJ NG for DH 1309 UAH/1000 m3 =37,4 UAH/GJ Fuel wood (chip) ,3 4,7 1,4 Wood pellets ,1 2,7 0,8 Wood briquettes ,1 2,8 0,8 Straw in bales ,1 5,6 1,6 Cost LHV Cost of energy in the fuel UAH/t MJ/kg UAH/GJ The ratio of energy cost in NG to the energy cost of biomass NG for population, <2500 m3/year 1098 UAH/1000 m3 = 31,4 UAH/GJ NG for population, <6000 m3/year 725 UAH/1000 m3 = 20,7 UAH/GJ Fuel wood (chip) ,3 1,2 0,8 Wood pellets ,1 0,7 0,4 Wood briquettes ,1 0,7 0,4

8 Utilization of solid biomass as a fuel Rural population consume about 2 mill solid m 3 /y of fire wood (500 th. tce/y) >70 sunflower husk fired boilers they consume 500 th. t/y of husk >1000 industrial wood fired boilers > 1000 boilers converted from fossil fuels to wood combustion > 20 boilers consumes 400 th. t/y of wood residues Traditional stove in rural areas in Ukraine Energomashproekt boiler, Ukraine Trading house Kriger boiler, Ukraine UTEM boiler, Ukraine

9 Use of biomass for energy generation in Ukraine (2009) Biomass type Volume consumed per year Thousand tce/year % of total Straw 30 thous. t 14 1,4 Wood wastes 646 thous. t ,6 Wood (population) 1972 thous. m ,7 Sunflower husk 500 thous. t ,6 Peat 339 thous. t ,6 Biogas (manure) 4516 thous. m3 3 0,3 Biogas of SMW landfills thous. m3 18 1,8 TOTAL mln. of tce = 0,5%of total energy consumption of Ukraine(200 mln. tce) Source:Data by State Statistics Committee of Ukraine (wood), calculations bysec Biomass

10 Total potential of biomass in Ukraine, 2009 Types of biomass Energy potential, mtce Theoretical Technical Economic Straw of grain crops 20,30 10,17 2,43 Straw of rape 2,94 2,06 1,34 Residues of production of corn for grain 8,79 6,15 3,94 Residues of sunflower production 6,68 4,48 4,36 Secondary agricultural residues 1,13 0,91 0,65 Wood biomass 2,53 2,07 1,63 Biodiesel 1,38 1,38 0,45 Bioethanol 3,47 3,47 1,09 Biogas from manure 3,10 2,32 0,35 Landfill gas 0,77 0,46 0,26 Sewage gas 0,21 0,13 0,09 Energy crops - poplar, miscanthus, acacia, alder, willow - rape(straw) - rape(biodiesel) - corn(biogas) 12,10 1,94 0,92 1,47 10,28 1,36 0,92 1,03 10,28 1,36 0,92 1,03 Peat 0,77 0,46 0,4 TOTAL 68,50 47,65 30,58 16,6 mtce 13,6 mtce

11 Goals on RES shares in total energy consumption Documents Energy Strategy of Ukraine till 2030 (2006): RES 3,7% - 5,6% 6% Biomass 1,3% - 2,6% 3% Energy Strategy of Ukraine till 2030 (draft, 2011): RES* % State purpose oriented economic program on energy efficiency during RES Concept of State purpose oriented research and technology programme of RES development till 2030 (draft) RES Biomass Action Plan for Ukraine (draft 2010) Biomass - 10% % 0,5% 1,5% 4% 10% * Share in installed electrical capacity

12 National Project Energy of biomass Summary Implementation of bioenergy equipment boilers, CHP, power stations, biogasplants withtotalcapacity9000mwth+400mwe. Strategic objectives Replacement of natural gas consumption 6 bill m3/year till 2020, and inperspective till20billm3/year(in2030). Increase of energy supply reliability. Development of local economy. Establishment of new working places, especially in the rural areas. Feasibility Payback period of biomass boilers up to 5 years, CHP up to 4 years, power stations up to 5 years, biogas plants up to 8 years under current natural gas prices. They will be shorter after planned increase of internal gas prices in the future. Social impact Increase of stability and quality of heat and power supply to population. Improvement of ecological situation. Establishment of new working places till 20 thousands. Term of realization 5-10 years Total investments 20 bill UAH(around 1.8 bill Euro)

13 Feasibility study for construction/ reconstruction of biomass CHP Electrical capacity МW 12,0 Number of operating hours h/year 7200 Heat capacity MW LHV of woodchips МJ/kg 12 Fuel consumption (woodchips) t/year equivalent substitution of natural gas ths m3/year Generated electricity (MWh)/year Price of electricity sale with "GT", excluding VAT UAH/(МWh) 1392,1 Fuel price (woodchips) UAH/t 300 Price of heat sold UAH/Gcal 200 Capital investments* ths UAH specific capital investments /kwel Operation costs ths. UAH/year Income ths. UAH/year Simple pay-back period years 3,6 4,2 5,1

14 Opportunities for investments in Ukraine s bioenergy sector (biomass boilers and CHPs) Type of equipment Estimation of Ukrainian market volume, units Installed capacity Substitution of NG Required investments MW th MW e bln.m 3 /y mln. Euro Wood fired heating boiler installations, MW th ,26 22,5 Wood fired industrial boilers, MW th ,22 14 Wood fired domestic boilers, kw th ,6 73,5 Wood fired CHP plants, 1-10 MW e , Straw fired farm boilers, MW th , Straw heating boilers,1-10 MW th , Straw-fired CHP plants, 1-10 MW e , Sunflower and corn stalk fired farm boilers, 0.1-1MW th , Peat boilers, MW th ,34 30 TOTAL: , ,26 bln. m 3 NG 211 Euro / 1000 m 3 = 1100mio. Euro/year

15 SEC Biomass view on the reduction of natural gas consumption under heat generation in Ukraine Natural gas consumption for heat supply, bln. m 3 /year NG NG Savings Biomass DH utilities 8 4,0 2,0 2,0 Population 17 4,0 6,5 6,5 State-financed institutions 1 0,4 0,3 0,3 CHPPs 1 0,6 0,2 0,2 Total Out of 27 bln. m 3 NG/yearused for heat supply, till2030: -Substitute with biofuels /3 ( 9 bln. m 3 NG/year) -Save via thermal insulation of buildings, energy saving during generation, transportation, and distribution of thermal energy... 1/3 ( 9 bln. m 3 NG/year) -Continue using NG.....1/3 ( 9 bln. m 3 NG/year)

16 Green tariffs on power from RES in Ukraine Increasing coefficient Green tariff without VAT, Eurocents/kW h Green tariff without VAT, UAH kopeks/kw h solar (max) 4,8 1,8 46,53 505,09 solar (min) 4,4 1,8 42,65 463,00 biogas from agricultural biomass* 3,0 16,16 175,38 biogas of other types* 2,7 14,54 157,84 Biomass 2,3 12,39 134,46 wind (max) 2,1 11,31 122,77 wind (min) 1,2 6,46 70,15 hydro (till 10 MWe) 0,8 1,8 7,75 84,18 * - proposal of SEC Biomass

17 Green tariff on power from biomass in Ukraine and some EU countries, Eurocents/kW h N Biomass power min max 1 Italy 28 2 Germany 7,79 22,67 3 Check republic Spain 7,02 17,16 5 Austria 10 14,98 6 Bulgaria 9,51 13,04 7 Ukraine 12,39 8 France 4,5 11,9 France Ukraine Bulgaria Austria Spain Check R. German Italy Green tariff on power from biomass in Ukraine and some EU countries, Eurocents/kW h

18 Green tariff on power from biogas in Ukraine and some EU countries, Eurocents/kW h N* Biogas from biomass min max 1 Germany 7,79 28,67 2 Italy 28 3 Bulgaria 17,13 22,14 4 Austria 13 18,5 5 Check republic Ukraine(3,0) 16,16 Ukraine(2,7) 14,54 7 Spain 8,63 14,11 8 UK 8,05 10,36 UK Spain Ukraine (2,7) Ukraine (3,0) Check Republic Austria Bulgaria Italy Germany Green tariff on power from biogas in Ukraine and some EU countries, Eurocents/kW h

19 Dynamics of electricity tariff for consumers of 2 nd voltage class comparing with «green tariff» for electricity from biomass kopeks/kwh коп/квт*ч excluding без НДСVAT If tendency of electricity price growth in Ukraine will be the same for coming 4 years retail tariff on 2 nd voltage class electricity will equal «green tariff» (in the middle of 2015)

20 Incentives applied for bioenergy technologies in the EU and Ukraine Fossil fuel tax Finland Energy: diesel fuel31-33 c/l; СО 2 : diesel fuel5,4 c/l; for electricity: 0,25 c/kwh Green electricity Subsidies equivalent to GT: 0,42-0,69 c/kwh Subsidies For development and implementation of new technologies of energy generation from wood : 30%of project cost Laws, policies Action Plan on RES development. Law on obligatory quota for biofuels (from ) Sweden Energy: coal 0,31 c/kwh СО 2 : coal 1,4 c/kwh for electricity: 1,21-1,76 c/kwh Quotas( ,6%, ,9%) and green certificates system. For construction of mini-chpp: up to 25% of total costs. For implementation of RES to energy technologies : up to 30% of costs(starting from2005) Programme aimed at oil independence till (2005) Denmark Energy: diesel fuel 9,34 /GJ СО 2 : diesel fuel 1 /GJ for electricity: 21,25 /GJ GT: 5-10 c/kwh For purchase of boilers with capacity up to 200 kw: 10-30% of costs Energy programmes from th Energy21 (1996). Agreement between Government and political parties (1993, 1997). Latest (incentives for RES, 20% till 2011). Germany On petrochemical products: c/l; On electricity: 0,18-0,37 c/kwh GT: 6,16-14,67 c/kwh For construction of mini-chpp: 15-35% of costs. Law on Green electricity (1991). Law on RES (2000, amendments 2004, additions 2008) Austria Energy: mazut 0,28 c/kwh On electricity: 1,5 c/kwh GT: 4,05-16,95 c/kwh -For purchase and substitution of boilers: up to 30% of costs -For construction/modernization of DH boiler-houses: 30-40% of costs Directive on electricity (2000). Law on Green electricity (2008) Ukraine To the contrary fossil fuels are subsidized Biogas, co-combustion, and SMW incineration are not covered Laws are partially approved, there are no policies on place

21 Conclusions: 1. Gas prices in Ukraine allow to implement feasibly biomass combustion technologies only in industry and State-financed sector. In housing and DH sectors the feasibility is not sufficient for large-scale investments. Further gas prices growth for DH utilities and population is required (at least by 50%for DH utilities and by 100%for population). 2. Even today biomass-fired CHPs demonstrate good payback rates, due to green tariff for generated electricity. Growth of this sector is expected. 3. Development of biogas production technologies is almost blocked in Ukraine due to impossibility to obtain GT for electricity from biogas producers. 4. State programme of bioenergy development shall be developed and approved. We recommend to include the following goals on biomass contribution into total energy consumption: Year Biomass share in total energy consumption of Ukraine 0,7% 1,5% 4% 7% 10%

22 Conclusions (2): 5. Amendments shall be introduced to Laws of Ukraine «On GT»: Green tariff for electricity generated from biogas shall be established with coefficient 3,0 (for biogas from agricultural biomass) and 2,7(for other kinds of biogas). 6. We also recommend to establish state subsidy for bioenergy equipment buyers up to 20 %of equipment cost.

23 Thank you for your attention! Georgiy Geletukha, PhD Director, SEC Biomass tel: