bioenergy development in ukraine: state of the art and perspectives georgiy geletukha institute of...

Bioenergy Development in Ukraine: State of the Art and Perspectives

Georgiy Geletukha

Institute of Engineering Thermophysics of National Academy of Sciences of Ukraine (Head of Department)

Scientific Engineering Centre Biomass Ltd. (Director)

Institute of Engineering ThermophysicsScientific Engineering Center Biomass

"Integrative Approaches Towards Sustainability"(Baltic Sea Region sharing knowledge internally, across Europe and

worldwide)SHARING, Jurmala, May 11-14, 2005, Latvia


Plan of presentation:

1. Biomass for energy has the biggest from RES feasible potential for the most of EU countries and Ukraine.

2. CHP or heat only production?

3. Examples of successfully implemented bioenergy projects in Ukraine.

4. Bioenergy projects are mostly bankable projects.

5. Biomass for energy is one of the best options for GHG emission reduction.

6. Ukraine has a huge potential for “concentrated” biomass export to EU.

7. Conclusion.

*) Energy for the Future: Renewable Sources of Energy. White Paper for a Community Strategy and Action Plan. Bruxelles, 1997, 53 p.


Biomass for energy has the biggest from RES feasible potential for the most of EU and FSU countries.

Heat and power production from renewable energy in EU *)

Type of renewable energy sources

Energy production Total investments in 1997-2010,

milliard $

Reduction of СО2 emission

by 2010, mill t/yr

1995 2010

mill toe % mill toe %

Wind energy 0.35 0.5 6.9 3.8 34.56 72

Hydro energy 26.4 35.5 30.55 16.8 17.16 48

Photovoltaic 0.002 0.003 0.26 0.1 10.8 3

Biomass 44.8 60.2 135 74.2 100.8 255

Geothermal energy

2.5 3.4 5.2 2.9 6 5

Solar thermal collectors

0.26 0.4 4 2.2 28.8 19

TOTAL 74.3 100 182 100 198.12 402

Energy potential of biomass in Ukraine (2001)


Type of biomass Energy potential, mill toe/year (moderate)

Energy potential, mill toe/year (optimistic)

Cereal crops straw: - Wheat - Barley - Oat - Rye - Other

2.54 0.97 0.79 0.10 0.15 0.20

3.9

Maize for grain/ stems, ears 0.83 1.70 Sunflower/ stems, husk 1.62 1.60 Manure/ biogas 1.1 1.13 Sewage gas - 0.16 Landfill gas 0.21 1.12 Wood wastes: - Felling residues, W 50-60%*). - Wood processing residues, W 40-45%. - Wood processing residues, W 25-30%. - Firewood, W 40-45%.

1.1 0.314 0.114 0.180 0.969

1.4

Fuel from municipal solid waste - 1.3 TOTAL 7.42 12.3

*) W - mass moisture content

The use of RES in 2001-2030 according to Energy Strategy of Ukraine (draft)

Indices

Heat and power production from RES in 2001-2030

2001 2010 2020 2030

mtoe % mtoe % mtoe % mtoe %

Wind energy 0.008 0.2 0.15 3.15 0.7 6.97 1.5 9.95

Solar power 0.001 0.02 0.007 0.07 0.02 0.14

Hydro small 0.1 3.1 0.1 2.16 0.33 3.36 0.45 3.01

Hydro large 3.1 78.69 3.35 68.7 3.91 39.06 4.56 30.3

Solar heat 0.001 0.04 0.08 1.72 0.49 4.88 0.9 5.93

Bioenergy 0.7 17.9 1.16 23.8 4.4 43.9 7.08 46.9

Geothermal energy 0.003 0.07 0.02 0.49 0.17 1.73 0.58 3.84

Total 3.9 100 4.88 100 10.02 100 15.1 100

Share of total consumption of primary energy in Ukraine **)

2.8 3.5 7.1 10.8*) By the end of 2000 total extraction of fossil fuels in Ukraine was 56 mtoe**) By the end of 2000 total primary energy consumption in Ukraine was 140 mtoe


Bioenergy equipment, which may be installed in Ukraine up to 2020

Type of equipment

Approximate capacity

of Ukrainian market,

units

Installed capacity

CO2

reduc-tion,

mill t year

Opera-tion

time,

h/year

Fossil fuel

replace-ment,

Mtoe

year

Total invest-ments,

mill

$ US

MWth MWe

Wood-fired DH plants, 1-10 MWth 250 500 --- 0.49 4400 0.21 38

Industrial wood-fired boilers, 0.1-5 MWth 250 250 --- 0.45 8000 0.19 25

Wood-fired CHP plants, 1-10 MWe 1 10 5 0.05 8000 0.014 5

Domestic wood-fired boilers, 10-50 kWth 53000 1590 --- 1.57 4400 0.67 80

Farm straw-fired boilers, 0.1-1 MWth 15900 3180 --- 3.14 4400 1.34 254

Straw-fired DH plants, 1-10 MWth 1400 2800 --- 2.76 4400 1.18 280

Straw-fired CHP plants, 1-10 MWе 1 10 5 0.05 8000 0.014 8

Large-scale biogas plants 2903*) 711 325 22.36 8000 0.93 290

Small-scale LFG power plants 90 20 80 3.26 8000 0.17 48

TOTAL 73795 9071 415 34.13 4.7 1027*) including 2478 plants on cattle farms, 295 plants on pig-breeding farms, 130 plants at poultry factories;


CHP or heat only production?


Project Wood fired boiler of 10 MWth for steam

supply of plywood plant "ODEK-

Ukraine"

Wood fired CHP of 2,0 MWe + 10 MWth for

steam supply of plywood plant

"ODEK-Ukraine"

Capacity 10 MWth 2,0 MWe + 10 MWth

Investments, mill Euro

1.325 3.668

IRR, % 18 11

Simple paybackperiod, years

5.1 7.1

NPV, th. Euro 636 502

The Netherlands-Ukraine technical assistance project“Energy Saving and CO2 Reduction in the Timber Industry of

Ukraine”Supporting agency: Executing agency SENTER

of Dutch Ministry of Economic Affairs

Project duration: January 1999 – December 2001

The main characteristics of KARA wood fired boiler :Thermal capacity: 1.5 MW Steam output: 2.27 t/h Fuel: wood residues (chips, sawdust, bark) Fuel consumption: 0.7 t/h (moisture 50%) Reduction of CO2: 4000 t/year Saving of natural gas: 1.2 mill m3/year Investment: $ 215 000Payback period: 3.2 years

Drying chamber KARA Net volume of drying wood: 80 m3

Involved parties:

SENTER Malin State KARA Energy Systems TNO-MEP SEC Biomass Timber Enterprise


Reduction in the Timber Industry of Ukraine” Supporting agency: Executing agency SENTER

of Dutch Ministry of Economic Affairs

Project duration: January 1999 – December 2001 The main characteristics of KARA

wood fired boiler:

Thermal capacity: 5 MWSteam output: 7.8 t/hSteam overpressure: 10 barFuel: wood residuesFuel consumption: 2 t/h (moisture 40%)Reserve fuel: natural gasReduction of CO2: 15000 t/year

Saving of natural gas: 4.3 mill m3/year Investment: $ 430 000Payback period: 1.8 years

Involved parties:

SENTER ODEK Ukraine KARA Energy Systems TNO-MEP SEC Biomass

The Netherlands-Ukraine technical assistance project “Energy Saving and CO2


Existing wood waste at plywood plant “ODEK Ukraine”


“ Introduction of a Small–scale Straw-fired Heat Production in Ukraine” Supporting agency: Danish Energy Agency

The main characteristics straw-fired boiler:

Type RAU 2-1210Manufacturer PASSAT Energy A/S (Denmark)Thermal capacity 1 MW Water content of storage tank 32 m3

Straw quantity per feeding Approx. 1500 kg (3 big bales)Combustion period Approx. 5 hoursBoiler efficiency 81.4%Straw consumption per heating period 1114 t Quantity of substituted gas per heating period: 385 th m3 Investment $ 100 000Payback period 4.7 years

Involved parties:

Straw-fired boiler Straw baler “New Holland”RAU 2-1210

Support Center for Danish Projekt

The Danish Agricultural

Advisory Centre

Danish Technological

Institute

Passat Energi A/S

Agrofirma “DiM” Ltd

State Committee of Ukraine

Scientific EngineeringCenter “Biomass”

The Danish-Ukraine technical assistance project


1 MW straw fired boiler at “Agrofirma DIM”


Loading of straw fired boiler


“CO2 reduction by implementation of a CHP biogas plant in the pig breeding industry”

Supporting agency: Executing agency SENTER of Netherlands Ministry of Economic Affairs Project duration: January 2000 – June 2001

Involved parties:

Executing agency

SENTER

BTG Biomasstechnology Group BV

Agro-Oven Ltd.

UkrNIIagroproekt State Committee of Ukraine for

Energy Conservation

Scientific Engineering Center “Biomass”

The Netherlands-Ukraine technical assistance project


The main characteristics of CHP biogas plant :Pig manure flow rate: 80 t/dayTotal solids contents: 2-3.5 %Digesters volume: 21000 m3Biogas production: 750 Nm3/dayUtilization of biogas: two CHP units (capacity 80 kWel +160 kWth each)CO2 reduction: 7500 t/yrMineral fertilizers substitution:

N - 160 t/yr, P - 90 t/yr, K - 65 t/yrInvestment: $ 413 000 Payback period: 8.1 years

2×1000 m3 digesters with 80 kWe + 160 kWth CHP units at “Agro-Oven” Ltd, village Elenovka, Dnipropetrovsk oblast’


EcoLinks Partnership Grants Program

Involved parties :

EcoLinks program SCS Engineers AOZT “Protos” SEC “Biomass”

“Reduction of Greenhouse Effect through Methane Utilization at Lugansk Landfill”

Project duration : February 2002 – February 2003

Technical features :Landfill volume: 2 000 000 m3Biogas production: 8 000 000 m3/yearCalorific value of biogas: 18 MJ/m3Power plant capacity: 1.5 MWInvestment: $1 345 000 ($571 000)CO2 reduction 62000 t/yearIRR: 39% (17%)Payback period: 2.0 (4.6)


January 2003

Three demonstration wells

Landfill gas flow – 90 m3/hour

CH4 content – 60%

Reduction of Greenhouse Effect through Methane Utilization at Lugansk Landfill

EcoLinks Partnership Grants Program, a United States Agency for International Development program



Bioenergy projects are mostly bankable projects

Project Wood fired boiler of 10

MWth for steam

supply of plywood plant

"ODEK-Ukraine"

Wood fired

boiler of 6 MWth for hot water supply of Slavutich

Sunflower husk fired

CHP of sunflower oil

plant "Kirovograd

Oliya"

1,5 MWe LFG power

plant at Lugansk landfill, Ukraine

Extraction, Collection

and Utilisation of

LFG at the Odessa landfill

Capacity 10 MWth 6 MWth 3.7 MWe +

28 MWth

1.5 MWe Collection up to 9 mill m3 of

biogas/y

Investments,th. Euro

1325 760 6750 1670 555

IRR, % 18 36 14.5 17.4 39

Payback period, years

5.1 2.7 7.5 4.9 2.5

NPV,th. Euro 636 810 4132 575 67


Biomass for energy is one of the best options for GHG emission

reduction

Typical levels of GHG reduction for different types of energy production projects

Type of energy production project

Reduction of CO2e during

2008-2012,kt CO2e/ MWe

Income from JI(under 3$/t

CO2e),

k$/ MWe

Income from JI (under 3$/t CO2e),

% of total investments

Energy from biomass

26.0-287.0 78.0-861.0 7.8-86.0

Wind power 7.7-32.0 23.1-96.0 2.3-9.6

Hydro power 11.3 33.9 3.4

Geothermal 24.0 72.0 7.2

Co-generation (CHP)

14.8 44.4 4.4

*) data of EcoSecurities Ltd. Refocus, Jan/Feb 2002.


Parameters of the Ukrainian bioenergy projects Project Wood fired boiler

of 10 MWth for

steam supply of plywood plant

"ODEK-Ukraine"

Sunflower husk fired CHP of sunflower oil

plant "Kirovograd Oliya"

1,5 MWe LFG power plant at

Lugansk landfill, Ukraine

Extraction, Collection and

Utilisation of LFG at the Odessa

landfill

Capacity 10 MWth 3.7 MWe + 28

MWth

1.5 MWe Collection up to 9 mill m3 of biogas/y

Investments,th. Euro

1325 6750 1670 555

IRR, % 18 14.5 17.4 39

Payback period, y 5.1 7.5 4.9 2.5

CO2 emission

reduction, th t/y

20 45 62 64

Income from CO2 credit (5 Euro/ t CO2 during 2008-2012), th Euro

500 1125 1550 1600

Income from CO2 credit/ total investments, %

37 16 93 288

JI Projects developed by SECB in 2004


N Title Status

1 District heating system rehabilitation of Chernigiv Region

Fully prepared and validated for ERUPT-4

2 Methane capture at the Odessa municipal solid waste landfill

Fully prepared and validated for ERUPT-5

3 Utilization of sunflower seed husks for steam and power production at OJSC “Kirovogradoliya”

PDD stage for Austrian JI/CDM Program

4 Rehabilitation of the district heating system of Crimea

PDD stage for Austrian JI/CDM Program

5 Electric Power Production on Stripped Casing-head Gas at Boryslav city

PIN stage for Austrian JI/CDM Program

SEC Biomass plan is to submit 10-20 JI projects in 2005. The nearest ones: 1. “Coal mine methane capture and utilization at Bazhanov mine”2. “Coal mine methane capture and utilization at Krasnolimanskaya mine”3. “Coal mine methane capture and utilization at Kirov mine”4. “District heating system rehabilitation in Rivne Region”

Ukraine has a huge potential for “concentrated” biomass export to EU:

· Wood, straw and other agricultural residues pellets, briquettes, charcoal; · Liquid biomass fuels (rapeseed oil, bioethanol, pyrolysis oil etc); At the moment Ukraine has surplus of biomass and have no bioenergy equipment (and money to build it). Export of biomass to EU countries is a good and practically the only one market chance for Ukraine to reserve money for bioenergy development. The possible schema: · Establishment of “National Bioenergy Fund” in Ukraine; · Commercial export of biomass to EU; · Some share of received money have to be transferred to “National Bioenergy Fund” for support of national bioenergy development.


Driving forces of bioenergy development in Ukraine

1. Permanent growth of traditional energy prices. 2. Possibility to increase energy independence. 3. Possibility to develop local economy (money goes not to oil

and gas exporting countries but remain in the region). 4. Growing possibilities for biomass export. 5. Kyoto Protocol process with CO2 emission reduction request

and possibilities of CO2 credits. 6. Permanent strengthening of ecological norms.7. Possibility to reduce unemployment.


R&D activities in Bioenergy Laboratory of IET


1. Underscrew wood-fired boiler (CRDF project, 2003-2005)

Capacity: 100 kWEfficiency: 85%Fuel: wood chips,

wood sawdust, peat

2. Twin FB gasifier for sorted MSW (STCU project, 2004-2006).

3. Straw bales fired boiler (Ministry of Science project, 2004).

Conclusions


• Biomass for energy has the biggest from RES feasible potential for Ukraine (up to 10 % of primary energy consumption).

• Heat production is more feasible in most cases than CHP or power production.

• Bioenergy projects are mostly bankable projects. • Biomass for energy is one of the best options for GHG emission

reduction. • Ukraine has a huge potential for biomass export to EU.

Ukraine has all opportunities for fast development of bioenergy sector!

First announcement

International Conference on JI Projects in Ukraine “Climate Change and Business”

October 3-5, 2005, Kyiv, Ukraine

Organized by:• Ministry for Environmental Protection of Ukraine• Institute of Engineering Thermophysics of the National

Academy of Sciences of Ukraine• Institute of Engineering Ecology• SEC “BIOMASS”

Conference web site: www.biomass.kiev.ua/JIconference

Thank you for your attention!

For further information please contact:

Dr. Georgiy Geletukha

Tel/fax: +380 44 456 6365,

E-mail: [email protected],

http://www.biomass.kiev.ua


bioenergy development in ukraine: state of the art and perspectives georgiy geletukha institute of...

Documents

energy potential of

geothermal energy

mw th investments

th fuel

renewable sources of

timber industry of ukraine

th moisture

concentrated biomass