BIOMASS ACTION PLAN OF SOUTHERN ESTONIA

BIOMASS ACTION PLAN OF SOUTHERN ESTONIA Tartu 2013 1

INTRODUCTION Woodfuels have traditionally had a major role to play in the energetics of Southern-Estonia. For the agricultural society, wood was the main source of energy. Even today s modern society values fuelwood through the energy and climate policies that aim for sustainable development. Nevertheless, the position of wood as a fuel is changing due to the increased demand for high quality wood-based fuels in a time, where the demand for timber has been growing as well. Therefore, the Biomass Plan for South-Estonia was prepared in order to fill the gap between the development documents of national level and the level of local municipality. The development plan is being made for providing for the need of coordinating the usage of biomass and production of biomass-derived fuels in times of rapid development of the bioenergy sector. The primary energy content of the consumed fuels in 2011 is described in the following charts. 100% 80% 60% 40% 20% 0% Fossil fuels - boilers, TJ Fossil fuels - transport, TJ Solid biofuels, TJ Figure 1. Share of primary energy and its applications in 2011 1 Biomass-derived fuels make up to 37% of the primary energy content of the fuels used in the region of Southern-Estonia (Figure 2). If transport fuels were to be excluded from the comparison, the share of biomass would rise to 63% of the total primary energy of fuels used. 100% 80% Jõgeva County Põlva County Tartu County Valga County Viljandi County Võru County Southern- Estona Estonia 60% 40% Fossil fuels, TJ Renewable fuels, TJ 20% 0% Estonia Southern -Estonia Figure 2. Share of primary energy of renewable fuels from the primary energy of fuels used in 2011 1 1 Statistics Estonia. 2012. www.stat.ee 2

The structure of fuels usage in the region is described by the figure below (Figure 3). Fossil fuels - boilers 4328 TJ 22% >300 kw boilers - fuelwood 3521 TJ 17% Renewable fuels 37% >300 kw boilers - wood refuse 1337 TJ 7% Fossil fuels - transport 8122 TJ 41% <300 kw boilers - fuelwood 2553 TJ 13% Figure 1.3. The structure of primary energy usage in Southern-Estonia 1, 2 The replacement of transport fuels, using renewable fuels, is currently problematic due to the high cost of the necessary technology. Replacing fuels used in boilers, however, only requires the replacement of the boiler, which in most cases have to be replaced every 10 15 years anyway. Since the transport of low-grade woodfuels over vast distances is not economically feasible, the resources that will be used in the boiler house are most likely local, thereby increasing the local employment and contributing to the growth of the region. 2 Keskkonnateabe Keskus. 2012. http://www.keskkonnainfo.ee/main/index.php 3

1. THE BIOMASS RESOURCES OF SOUTHERN-ESTONIA As the one of the main goals of this Action Plan is to promote the usage of already existing and economically feasible technologies, the potential biomass resources were estimated through two main technologies for producing energy: a) burning biomass in boilers; b) producing biogas using anaerobic digestion and then burning the gas in biogas CHP units. The resources were allocated into following groups: a) forest biomass and residues; b) biomass from agriculture; c) biomass from urban-waste. The classification used for the purposes of the Action Plan can be seen from Figure 4. Direct burning in boilers Anaerobic digestion to biogas Forestry Agriculture Urban Fuelwood Residuals Reed Straw Woody residuals Mixed municipal waste Agriculture Urban Biomass from grasslands Manure Sewage sludge Biodegradable waste Figure 4. The potential biomass resources of Southern-Estonia The amount of available biomass and their potential primary energy content can be seen from the following table (Table 1). 4

Tabel 1. Potential bioenergy resources of Southern-Estonia Direct buring in boilers Resource Amount Primary energy content, TJ Forest biomass 3384 000 tm/y 12 357,8 Woody residuals 284 000 t/y 2222,8 Reed 30 000 t/y 441,7 Mixed-municipal waste 12 000 t/y 152,4 Straw 221 000 t/y 3184,2 Biomass from grasslands 2717 000 t/y 4627,5 Manure 1761 000 t/y 957,2 Anaerobic Sewage sludge 225 000 t/y 14,3 digestion to biogas Biodegradable urban waste 80 000 t/y 121,3 Biodegradable mixedmunicipal waste 19 500 t/y 30,9 - Total - 24 110,1 It can be seen, that a total of 24 000 TJ of primary energy could be produced from the available biomass resources. 75,6% of it can be produced by using traditional methods (e.g. burning in boilers, furnaces etc). On the other hand a possible shortage in traditional fuelwood due to increased usage of wood-burning boilers has to be taken into consideration. At the same time, the woodfuel producers have to compete with other industries that use wood as a resource. Therefore, the biomass that could be utilized for anaerobic digestion shouldn t be underestimated. Anaerobic digestion to biogas is a method that has yet to be more widely spread in Estonia. The biogas can be used for producing both heat and electrical energy in relatively high efficiencies. When applicable purification systems are utilized, the gas can also be used as a transport fuel. The fact that there is currently being built or planned a total of 10 biogas plants, proves, that production of biogas is a business model that will grow more popular during the next years. The currently usable (producible) amount of biomass and its potential primary energy content was estimated through the availability of the necessary technologies and the economic feasibility of utilizing these technologies. The majority of the producible primary energy is made up of wood and wood waste. The production of biogas is a perspective possibility, but the amount of currently usable resources is significantly lower than the potential amount of resources will lead to believe. The reason for that lies in the fact that the transport and employment related costs are currently too high compared to other alternatives. Biogas production from manure and sewage sludge is more simplified due to the fact that large amounts of these resources are usually being produced (gathered) in one relatively small location. The estimated amounts of the resource and their primary energy contents can be seen from the following table (Table 2). 5

Table 2. Technically and economically usable bioenergy resources of Southern-Estonia Primary energy Resource Amount content, TJ Direct buring in boilers Forest biomass 2900 000 tm/y 10721,9 Woody residuals 255 000 t/y 2000,5 Reed 15 000 t/y 222,2 Mixed-municipal waste 4600 t/y 45,7 Straw 22 000 t/y 318,4 Biomass from grasslands 552 000 t/y 925,5 Manure 1761 000 t/y 957,2 Anaerobic Sewage sludge 225 000 t/y 14,3 digestion to biogas Biodegradable urban waste 80 000 t/y 68,8 Biodegradable mixedmunicipal waste 5800 t/y 9,3 - Total - 15 283,7 The results of the resource analysis can be described by the following charts (Figure 5). Direct burning Anaerobic digestion to Biogas Direct burning Anaerobic digestion to Biogas 5751 TJ; 24% 1975 TJ; 13% 18359 TJ; 76% 13309 TJ; 87% a) b) Figure 2.The structure of potential (a) and usable energy resources (b) for direct burning and anaerobic digestion to biogas. The charts above describe the previously-mentioned situation, where the most commonly used technology for producing energy (burning) can be used for the most available resources. Fuelwood and wood wastes can relatively easily be used for energy production. However, due to the increased demand for alternative energy sources caused by the increasing prices of fossil fuels, more uncommon methods for producing energy (e.g. anaerobic digestion) have to be taken into use in the region. 6

2. THE STRUCTURE OF THE ENERGY CONSUMPTION The results of the resource analysis show that the heat energy demand of the region could be covered to a large extent by using biofuels. The readiness to switch to biofuels can be estimated through the type of the boilers typically used in the region. In 2012, there was a about 800 boilers with a nominal heat energy output that exceeds 300 kw. The total installed capacity exceeds 1250 MW 3. The majority of the boilers use fossil fuels (Figure 6). Installed Capacity, MW 450,0 400,0 350,0 300,0 250,0 200,0 150,0 100,0 50,0 0,0 Installed Capacity of Fossil Fuel Boilers Fuel Consumption - 2011 Jõgeva County Põlva County Tartu County Valga County Viljandi County Võru County Figure 6. The >300 kw fossil fuel boilers of Southern-Estonia 3 450000 400000 350000 300000 250000 200000 150000 100000 50000 0 Primary Energy Content of Fuels, MWh The boilers that are capable of burning biomass are described in Figure 7. Installed Capacity, MW 400,0 350,0 300,0 250,0 200,0 150,0 100,0 50,0 0,0 Installed Capacity of Biomass Boilers Fuel Consumption - 2011 Jõgeva County Põlva County Tartu County Valga County Viljandi County Võru County Figure 7. The >300 kw fossil biomass boilers of Southern-Estonia 3 800000 700000 600000 500000 400000 300000 200000 100000 0 Primary Energy Content of Fuels, MWh 3 Information issued by the Environmental Board 7

Although the number and installed capacity of fossil fuel-burning boilers is larger than the number and installed capacity of biomass-burning boilers, the biomass boilers produce more energy (Figure 8). This means that in cases, where a company has both fossil fuel and biomass burning boilers, biomass is preferred as a fuel due it having the lowest price. The fossil fuel boilers are in these cases used as peak boilers. Nevertheless, there are still entities that only have fossil fuel boilers. When the time come to replace these boilers, switching to biofuels ought to be considered. Biomass boilers, MW Fossil Fuel Boilers, MW Biomass boilers, GWh Fossil Fuel Boilers, GWh 372 MW; 30% 835 GWh; 38% 878 MW; 70% 1350 GWh; 62% a) b) Figure 8. The >300 kw boilers of Southern-Estonia (a) and the fuels used (b) 3 The efficiency of the larger boilers is usually between 80 90% (when working at nominal capacity and unless the boiler is very old). This means that the fuels used in large boiler houses are relatively efficiently used. The efficiency of smaller boilers, that use woodfuels as an energy source, is between 45 90%, since in the region of Southern-Estonia, boilers of several types and age are utilized. The old furnaces have an efficiency between 45 65%, while the efficiency of the stoves remains between 50 70%. The efficiency of new boilers usually exceeds 80%. There is no statistical data collected directly for the fuel consumed and energy produced by small boilers. Estimations of the energy and fuels consumption in private households have been made in previous studies. Table 3 summarises the results. 8

Table 3. Energy consumption in Estonian single-family homes 4 Parameter Unit Põlva Tartu Võru County County County Estonia Average volume of households m 3 207.2 260.1 252.4 258.62 Average usable area m 2 82.5 97.4 99.8 94.72 Average primary energy consumption - per household - - - - without electricity MWh/y 24.2 23.8 29.3 28.39 with electricity used for heating MWh/y 40.15 Average yearly electricity consumption per household MWh/y - 5.4 4.17 Average yearly primary energy consumption - - - - - per volume kwh/m 3 124.0 91.3 115.4 109.87 per usable area kwh/m 2 338.1 244.0 313.9 295.62 Fuelwood consumption - - - - per inhabitant rm/y - 2.6-6.09 per household rm/y 17.3 9.7 19.6 17.86 Primary energy content of fuelwood - - - per inhabitant MWh/y - 3.7-7.52 per household MWh/y 24.2 13.6 27.8 24.25 From the summary table it can be seen that the primary energy consumption of Estonian and Southern-Estonian single-family homes is relatively high. This may be caused by the utilization of old and inefficient boilers. This means that the replacement of the old boilers has to be one of the focus points of the Actions, since wider usage of biomass is only possible, when the efficiency of the usage is high. 4 Estonian Biogas Association. 2009. Saare maakonna metsade bioenergia ressursid. 9

3. OBJECTIVES For defining the main objectives for the region, the overall development of the region was taken into consideration. The biomass usage should advance the economic and social progress of Southern-Estonia and therefore, aspects such as creating employment opportunities and enabling more money to be left in the region. For that the both efficiency of the biomass usage and the installed capacity and the amount of the biomass boilers has to increase. The usage of local biomass resources enables creation of employment opportunities in the region. What is more, when utilizing the local renewable resources, more money can spent in the region itself and, thereby providing for the development of the living environment for the inhabitants. The timescale of this Action Plan was chosen to be 2013-2030 in order to make a long-term plan on which future investments and more in-depth analysis could be based on. The main objectives that should be reached during the timeframe of this Biomass Action Plan were defined as follows: 1. Advancing the usage of biomass in energy production to a point where 85 90% of the heat energy would be produced using biomass-derived fuels. 2. Raising the knowledge on local biomass availability and opportunities for its utilization for energy production. 3. Directing the development of the region towards using biomass as means for improving the living and economic environment. 4. Becoming a region, which instead of importing energy, exports it. 5. Raising the efficiency of the biomass usage in energy production. Currently, in biomass-based primary energy constitutes 63% of the total primary energy used for heat production. In the year 2030, it should be 85 90%, enabling for a reduction in CO 2 emissions from 300 kw boilers up to 180 000 tonnes (since CO 2 emissions from biomass are considered to be 0). Through knowledge raising, the following outputs are being advanced: a) using manure and other biomass types that aren t traditionally used for energy production as a raw material for biogas production and thereby advancing the field of agriculture; b) introducing available and economically feasible technologies to the general public in order to increase interests in biofuels production and creating new investment opportunities. 10

Table 4. Biomass resources and possibilities for their utilization in energy production in Southern-Estonia Resource Usage opportunities Forest biomass (fuelwood, tree-stomps, forest residuals) Woody residuals from industries Reed Mixed-municipal waste suitable for burning (woody residuals from households, paper) Straw Biomass from grasslands Manure Sewage sludge Biodegradable urban waste Biodegradable mixed-municipal waste Mainly burning directly (without extensive processing) in boilers, furnaces etc Can be used for both burning in boilers (when using dry reed) and for biogas production (in cases of using reed with relatively high moisture content) Mainly burning directly (without extensive processing) in boilers, furnaces etc. The usage of straw is limited due to its usage as a fertilizer. Due to the fact, that this resource has commonly a relatively high moisture content thorough the year, can be most suitably used for biogas production Suitable for biogas production, the residuals from the process could be used as a fertilizer. Solves many problems with the stench and storage of the raw material Can be used for biogas production, solves problems with storing of the raw material From table 4 it can be seen, that a lot of available resources could be utilized for the currently not commonly known biogas production. The market for biogas production is currently growing and therefore it is important to disseminate the first results. Through the knowledge raising activities the wider usage of resources and technologies for biogas production is fostered. In addition, the introduction of existing and economically feasible technologies to the wider public helps to increase the interest in biofuels production and usage, thereby creating new investment possibilities and opporitunities. 11

4. MEASURES The national support mechanisms for subsidizing the energy produced using renewable resources have been under discussion during the whole project. For the feed-in-tariff of electricity produced from wind, limits have already been set. Therefore a situation, where subsidies for electricity produced from biomass will be limited as well, can occur in the near future. The reduction of subsidies is greatly connected with the pursuits for reducing the price of electricity for the consumers under the limitations set by the Open Electricity Market. During the new financing period of the European Union, the advancement of RES usage and energy efficiency will probably be continued to be supported, but the main focus might switch to offering cheap loans and guarantees for investments rather than granting a share of the investment. Once using renewables will become more common, large-scale national level subsidizations will become economically impossible and therefore, the main measures of the Biomass Action Plan of Southern-Estonia are tightly connected with activities that aid in local initiatives and aiding in finding funds from alternative sources. The main measures for reaching the set goals and objectives are defined as follows: 1. Awareness raising activities. a. for increasing knowledge on available biomass resources and their usage opportunities; b. for increasing knowledge on available subsidies and support schemes. 2. Greater utilization of investment subsidies and production subsidies (for as long they exist). For that support and cooperation for writing the applications will be provided. 3. The effective and maximal usage of the resources requires effective usage of energy as well, therefore, support on energy efficiency issues will be provided. 4. Establishment of energy co-operatives. Establishment of energy co-operatives is a long-term measure, since it will take time to change the prejudication of the local inhabitants. The establishment of energy co-operatives enables to create a situation, where local inhabitants will for example start to manage their own district heating system, thereby getting more involved and having more power to influence the decisions made. These co-operatives haven t been yet established due to the low awareness of people, legislation uncertanities and the fact that the need for them has yet to arise on a large scale. The measures are tightly connected with the changes in the consumption of energy. In the following diagram (Figure 9) projected changes of energy consumption are given in cases of two scenarios. NREAP describes the scenario given in Estonian National Renewable Energy Action Plan (where 25% of total energy production would come from renewables). TE 100 scenario describes a scenario, where the all of Estonian electricity and heat energy will be produced from renewable energy sources. 12

Heat Energy Consumption, TJ 13000 12000 11000 10000 9000 8000 7000 6000 5000 4000 Heat Energy - NREAP Heat Energy - TE 100 Elecrcity - NREAP/Elering Electricity - TE100 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 13000 12000 11000 10000 9000 8000 7000 6000 5000 4000 Electrical Energy Consumption, TJ Year Figure 9. The projected changes in the energy consumption of Southern-Estonia 5, 6 As can be seen from the diagram above, when following the scenario, where the maximal amount of energy would be produced from renewables (TE 100 scenario), the requirement for heat energy should drop about 20%, which is conceivable, when taking into consideration the EU-s recently established highe standards for energy efficiency. Therefore, although renovation in the housing sector isn t a part of a Biomass Action Plan, it nevertheless has to be taken into consideration, when planning for investments into biomass boilers. From the total of 800 boilers, that have a larger output power than 300 kw, only 260 are using biomass. From them 4800 TJ of energy (62%) is produced. To replace the rest of the heat energy production in this field with up to 90% of energy produced from biomass, an additional ~620 GWh of energy have to be produced from biomass boilers. For that an estimated capacity of 281 MW needs to be installed, with an estimated cost of ~100 MEUR. The amount of money is rather large, but it has to be considered, that every 12 15 years, a boiler working at capacity, has to be replaced. 5 Ministry of Economy and Communication. National Renewable Energy Action Plan of Estonia until 2020. Tallin: 2010. 6 Estonian Renewable Energy Assosication. Renewable Energy 100 Roadmap. Tallinn: 2012. 13

CONCLUSIONS The biomass Action Plan of Southern-Estonia was prepared in order to provide for the need of coordinating the usage of biomass and production of biomass-derived fuels in times of rapid development of the bioenergy sector. The timeframe was set to be from 2012-2030 in order to create a long-term vision for the region, which isn t only dependent on current economic feasibility. Most of the bioenergy could be harnessed from the woods of Southern-Estonia, but as the structure of the biomass-demand is changing, all of the other resources will eventually become more important. Especially since the possible fuelwood production will not stay this high perpetually. From the analysis of the available biomass resources, it was found, that the available biomass resources are enough to cover for the heat energy requirements. For producing electricity enough to cover the whole demand, the consumption of electricity will have to be reduced. As the legislative situation of the subsidisation of production from renewable energy sources, the Action Plan mostly deals with activities connected with raising awareness of local inhabitants and assisting in starting up local energy co-operatives. 14