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Vesna Nik čević

Regional study of biomass for members of Energy Community – Western Balkan, Ukraine and Moldavia

ENERGY POTENTIAL OF BIOMASS IN MONTENEGRO

Podgorica, January 2010

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CONTENT

1. SUMMARY

2. INTRODUCTION

3. THE GOAL OF THE STUDY

4. NATIONAL DATA

4.1. Geopolitics

4.2. Energy sector

4.2.1. Generation

4.2.2. Consumption

4.3. Economy – economic parameters

5. ENERGY POLICY

6. SUPPLY – RAW BIOENERGY BASIS

6.1. Forestry

6.1.1. Structure and quantity of wood biomass

6.2. Wood-processing industry

6.2.1. Structure of residual from primary wood-processing

6.2.2. Structure of residual from final wood-processing

6.3. Main indicators of primary production of fast-growing types of trees for energy use

6.3.1. Location, area and generation

6.4. Agriculture

6.4.1. Viticulture

6.4.1.1. Cutting residual

6.4.2. Husk residual during wine or liquor production

6.4.3. Olive yards

6.5. Synthesis of bioenergy structure

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7. MARKET

8. SWOT ANALYSIS

9. CONCLUSION

10. REFFERENCES

1. SUMMARY REZIME The study presents the results of researching energy potential of biomass in Montenegro. It represents the potential quantity of biomass presented by the source of biomass used: forestry, wood-processing industry and agriculture. The study accents the possibility of using biomass from viticulture (cutting residual and husk residual during wine or liquor production) and olive yards (residual during production of olive oil). Moreover, the study defines not only the areas that can be used for plantations of fast-growing trees used for energy purposes but also estimates their energy value. On the other hand, study presents the possible difficulties during the development and use of biomass for energy generation in Montenegro. Some of these difficulties include: poorly researched potential, traditions, government regulations, old technology in forestry sector as well as financial difficulties. Finally the study quantifies the possible energy generated from biomass, in the range of 4200 GWh that can be used as a starting point for future development of energy sector based on biomass. Key words: forestry biomass, wood-processing residual, plantations of fast-growing trees, viticulture, cutting residual, husk, olive yards, energy value.

2. INTRODUCTION

The goal of energy security is a crucial factor in planning a future of every country. In order to reduce the dependence on fossil fuels and import of energy, many countries have started the programs for researching and development of renewable energy sources of energy. It’s a widely known fact that burning fossil fuels, especially coal, oil and natural gas releases into atmosphere significant amounts of carbon dioxide (CO2) and other greenhouse gases. This has changed the structure of atmosphere so much that it caused the global warming effect. Although there is no easy solution for challenge that the climate change represents, it is widely believed that the decrease in emissions of CO2 is a key step to lowering the negative effects of global warming. In this regard renewable energy sources are significant since they produce energy with little or no CO2 emissions. Obvious energy requirements of Montenegro stress the importance of measuring the potential of new generation sources including biomass potential. Considering that Montenegro is a small country it has a significant amount of bioenergy resources. The most important bioenergy resources are: forestry residues, fast-growing plantations, wood-processing industry residuals,

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viticulture (cutting residual, residual during production of liquor), fruit-growing (cutting residuals, residual during production of olive oil, etc.).

3. THE GOAL OF THE STUDY

The main goal of the study is to present the transparent estimation of biomass potential in Montenegro. The study is consisted of research based on the source of biomass as well as theoretical and practical-technical approach. Therefore the main focus will be on presenting: forestry generation potential, potential of suitable land for plantations of fast-growing trees used for energy generation, vineyards potential, fruit-trees biomass potential where all of them are presented in their current potential and possible future use. The idea is to represent the ways the theoretical estimations can be turned operational technological reality. Therefore the goal is to quantify the structure of raw biomass and its energy-financial estimation while at the same time presenting the economic and social benefits that the development of biomass represents. In order to estimate the potential of biomass, the following steps have been taken:

• collection of data, • processing and analysis of the data, • estimation of biomass potential.

However, this prospective and positive scenario for biomass use has to overcome numerous barriers that slow down the wider use of renewable energy sources in Montenegro:

• very low prices of traditional energy sources, • lack of financial sources and investors interested in investing in energy generation based

on biomass, • lack of regulatory framework needed to support energy sources based on biomass, • lack of public knowledge about advantages of use of renewable energy sources.

In near future, the Government of Montenegro should put more effort into creating better conditions for wider use of biomass by providing appropriate support schemes from institutional and financial perspective. National strategy should support research of potential use of biomass as precondition for development of this form of energy generation.

4. NATIONAL DATA

4.1. Geopolitics

Montenegro became an independent country on July 3rd, 2006 after a referendum held on May 21st, 2006.

Montenegro is a south-European and Mediterranean country, that is taken to be one of the most southern countries that also comes out on Adriatic sea.

Table 1: General information

Geographic location Montenegro is located in southeastern Europe. On its southeast side it borders Albania. On its south side it is separated from Italy by the Adriatic sea; on the north side with Serbia and on the west side it borders Croatia and Bosnia and Herzegovina.

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Area 13,812 km2

Border length 614 km

Coast length 293.5 km

Climate Mediterranean, continental and mountain

Terrain Montenegro is divided into four geographical regions: coastal, field, plateau of deep rocky region and mountain.

Territorial areas 21 municipalities, 1256 populated locations, 40 town/city locations , 368 localized communities

Image 1: Map of Montenegro

4.2. Energy sector

4.2.1. Generation

Main energy generation units are:

- Hydropower plants: Perućica and Piva

- Thermal power plant Pljevlja

Image 2: Main energy generation structure in Montenegro (HPP Perućica; HPP Piva; TPP Pljevlja)

The energy generation from these sources for the past three years is presented in Table 2.

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Table 2: Electrical energy generation

Energy structure Units 2006 2007 2008

Hydro energy GWh 1,749.8 1,283.7 1,538.5

Thermal energy GWh 1,201.8 860.3 1,289.5

Total GWh 2,951.6 2,144.0 2,828.0

Source: Annual statistical balance sheet for Montenegro 2009

Montenegro uses only 17% of its estimated hydro potential.

4.2.2. Consumption

Table 3: Consumption of electrical energy and fossil fuels

Energy structure Units 2006 2007 2008

Electrical energy GWh 4,684.8 4,646.7 4,585.0

Dark coal t 2000 2000 -

Lignite 1000 t 28 27 29

Oil 1000 t 16 14 15

Fuel oil 1000 t 112 110 115

Liquid gas 1000 t 1 3 2

Source: Annual statistical balance sheet for Montenegro 2009, EPCG

Shortfall in 2008 amounted to 2.757 GWh, which is equal to the current electricity generation. This fact is the reason for supporting new energy sources such as biomass.

4.3. Economy – Economic parameters

Table 4: Macroeconomic indicators

Indicators Units 2008

Gross Domestic Product (GDP)-market price

in 1000 € 2,680,467

GDP per citizen € 4,262.8

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Employment worker 166,221

Annual investment In 1000 € 861,651

Import (goods and services) in 1000 € 2,527,151

Export (goods and services) in 1000 € 433,158

Foreign trade deficit in 1000 € 2,093,993

Source: Annual statistics for Montenegro 2009.

• Other economic indicators, such as low national product, significant foreign trade deficit, high unemployment show the need for intensive investment in increase of biomass use in energy production sector.

5. ENERGY POLICY

National energy policy of Montenegro specifically accents the importance of energy generation based on renewable energy sources. Biomass as a secure source of energy is gaining on importance. Montenegro has some general estimates of biomass potential that shows wood biomass as the main resource, especially regarding biomass sources such as forestry, wood-processing industry and agriculture. Their valorization depends on the conditions that are created to support such sources. However basic parameters – motives which are certain are quantity of available biomass from:

- Current forestry residues,

- Wood-processing industry residues,

- Potential plantations of fast-growing trees,

- Residual material from vineyards,

- Residual material from fruit-growing plantations,

- Other structures of primary and secondary residuals.

Therefore, for further use of biomass for energy generation certain conditions need to be met:

• Available resources, • Existing energy market, • Existence of efficient technology, • Parties interested for such generation (replacement of import, profit, employmnet,

additional effects).

In the context of this section, national policy of Montenegro for rational usage of biomass in energy generation sector can be defined as a path from a raw resource to its economically

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significant valorization, which includes transfer of the most efficient technologies (measurements, design, finance engineering, cluster organization of businesses, government support, etc.). According to the draft Energy Law (January 2010) and its regulations the tariff for electrical energy produced in biomass plants will be between 0.12 do 0.14 €/KWh.

6. SUPPLY – RAW BIOENERGY BASIS

Estimate of energy potential of biomass is focused on the most important resources: forestry, wood-processing industry residual, agriculture. According to this the main biomass potential for generation can be represented with following proportion: - forests and forested land 721,298 or 52.2% from total Montenegro area - agricultural land 516,219 ha or 37.4% from total Montenegro area * excluded from biomass potential 143,683 or 10.4%

Image 3: Estimate of energy potential

6.1. Forestry

Forests and forested land are occupying an area of 721,298 ha and represent 52.2% of total Montenegro area and represent the most significant energy potential for Montenegro.

Image 4: Forests, storage of biomass in industry

52.20%

10.40%

37.40%

Forests and foresrted land

Agricultural land

Excluded from biomass potential

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There were 427 companies registered for wood-processing in the Commercial court in 2007. Forestry sector is especially interesting for the energy systems that use biomass as a fuel.

Table 5. Area, wood mass, growth, forest status

Ownership Area

ha

Wood mass m³ bdm

Growth m³ bdm

Forest status m³

bdm

State forests and forested land 551,015 62,233,000 1,255,000 942,489

Private forests and forested land 170,283 8,407,000 176,000 176,695

Total: 721,298 70,640,000 1,431,000 1,119,184

According to the data in Table 5 it can be concluded that forest status is balanced in the range of 78,20% from annual growth.

The most recent estimation of high and sucker government-owned forests shows a high production potential of the most valuable forest lands in Montenegro.

Table 6. High and sucker government-owned forest areas, present growth, potential growth

Present growth m³ bdm Potential growth m³ bdm

Ownership

Area ha By ha On total area By ha On total area

High government forests 200,571 4.98 998,843 9.03 1,811,156

Sucker government forests 35,703 2.19 78,189 6.5 232,069

Total: 236,274 4.56 1,077,032 8.64 2,043,225

Average weight – 1m³ = 0,7 t

• The fact that on the most valuable forested land the growth of wood mass is 8.64 m³/yr shows that forests in Montenegro have higher, even double production and energy capacity than they do today. This kind of non proportionality between current status and future potential calls for use of the most efficient forest technologies.

• Wood biomass useful for energy generation can be estimated as a theoretical value from the forest status presented in Table 5 in case that the whole roundwood is processed in Montenegro, through primary or final processing.

6.1.1. Structure and quantity of wood biomass

Forestry biomass suitable for energy generation is presented in Table 7.

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Table 7. Forest status, technical roundwood, space roundwood, forest residuals, tree crust

Gross forest status

Technical roundwood

Space roundwood

Forest residuals

Tree crust

Total energy-generating biomass m³

Area

m³ bdm m³ m³ m³ m³ m³ t

Montenegro 1,119,184

447,673 458,865 167,878 44,767

671,510 402,290

Average weight – 1m³ = 0.7 t

� Stumps and roots are not accounted for considering orographic conditions of Montenegro forests.

6.2. Wood-processing industry

Wood-processing industry in Montenegro has 427 registered companies that during their processes generate significant wood biomass.

6.2.1. Structure of residual from primary wood-proc essing

Table 8. Technical roundwood, commercial product, sawdust, large residual and the rest

Technical roundwood

Commercial product

Large residual

Sawdust The rest

Total energy potential Area

m³ m³ m³ m³ m³ m³ t

Montenegro 447,673 246,220 107,442 62,674 31,337 201,453

Additional residual (tree crust 14% from technical roundwood) 62,674

Total residual 264,127 158,476

Average weight – 1m³ = 0.7 t

6.2.2. Structure of residual from final wood-processin g

Table 9. Secondary residual, final residual, other residual

Cut wood Commercial product Secondary residual

Final residual Other residual

Total Area

% m³ m³ m³ m³ m³ t

Montenegro 246,220 86,177 140,345 7,337 12,311 160,043 96,026

Average weight – 1m³ = 0.7 t

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6.3. Main indicators of primary production of fast- growing types of trees for energy use

Montenegro has good land condition for growing plantations of fast-growing trees that can be used for energy generation. The most suitable areas for such growth are: the lowest areas of Niksic flatland (Bara budoška i Slivlje); area on the riverside of river Donja Zeta; area around Skadar lake (from Božaj to Karuča); area on the riverside of river Tara (from Mataševo to river Bistrica in Mojkovac municipality); area on the riverside of river Lim (from Murina to Brodarevo).

Table 11. Location, area, generation

Growth m³/god Raw wood

Location

Area ha m³/g Total annual t per year

Nikšić 1,500 - - -

Donja Zeta 400 - - -

Skadar lake 10,000 - - -

Tara 500 - - -

Lim 1,000 - - -

Total 13.400 50 670,000 455,600

Detailed feasibility study would be needed in order to give more information on the possibility of growth of fast-growing plantations for energy use in these areas.

Image 6: Plantation of fast-growing trees

6.4. Agriculture

Main bioenergy resources from agriculture are viticulture and fruit-growing. The agricultural land used for farming and growing wheat are not quantified cause they are small and not concentrated in one area.

6.4.1. Viticulture

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The cutting residuals from vineyards are traditionally burnt. The study shows that one kilogram of residuals from grape trees equals the energy value of one kilogram of fossil fuel. Therefore, the cutting residuals from vineyards can be used for energy generation.

6.4.1.1. Cutting residual

Table 12. Area, production of cutting residual

Subject Area ha Number of grape trees

Kg of cutting mass per grape tree

Total t

State-owned 2,310 8,914,298 - -

Privately owned 3,000 9,252,013 - -

Total 5,310 18,166,311 1.75 31,791

Source: Annual statistics 2009; Vineyards 13.jul. d.o.o. Podgorica

6.4.1.2. Husk residual

Husk residual that is left over during production of liquor has a significant energy value.

Energy valorization of husk residual can improve general energy efficiency of grape growing and wine making business.

Table 13: Amount of husk from grape trees, energy value

Subject Number of grape trees

Kg of husk per grape tree

Total t/g of husk Husk residual t/g

Dry husk residual t/g

Privately owned 9,252,013 1.99 16,557 - -

State-owned 8,914,298 3.21 27,432 - -

Total 18,166,311 2.61 43,989 35,100 15,795

Source: Annual statistics for Montenegro 2009; own research

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Image 8: Vineyards of “Plantaze 13. Jul” Podgorica

6.4.1.3. Olive yards Montenegro has a large number of olive trees. From the olive trees, specifically from the process of oil making, a significant amount of mass can be collected that can be used for energy value.

Table 14. Amount, energy value

Subject Number of trees Total t/g product Kg per tree of product Husk t/g Dry husk t/g

Privately owned 429,900 2,401 5.7 2,089 1,044

State-owned 18,500 -- - - -

Total 448,400 2,401 5.7 2,089 1,044

Source: Annual statistics fro Montenegro 2009; own research

Image 9: Olives and olive tree, Ulcinj

6.5. Synthesis of bioenergy structure Synthesis of bioenergy potential is presented by sectors in Table 15.

Table 15: Quantity and energy value by sector

Energy value Sector Units Quantity t KWh/t Σ GWh

Forestry- 25% moisture t 470,057 3,085 1,450

Wood-processing industry -12% moisture

t 298,306 4,000 1,193

Forest cultured plantations- 25% moisture

t 455,600 3,000 1,367

Residuals from viticulture -25% moisture

t 31,791 3,000 95

Husk from grape trees -10% moisture t 15,795 5,500 87

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Husk from olive trees -10% moisture t 1,044 5,500 6

Total t 1,272,593 3,300 4,200

• Montenegroo bioenergy potential of 4.200 GWh is 1.5 times greater than the current electrical energy production (2.800 GWh) which goes to show that the green energy is the energy of the future.

7. Market

Wider use of biomass for energy use currently practically does not exist in Montenegro.

Some of the wood-processing industry companies use biomass for production of energy for self-use.

The residual wood from hardwood is traditionally used for heating in households in heaters.

Small production of briquettes in some wood-processing companies is used in local markets.

Significant use on the local market is expected with the increase in use of biomass for energy generation (pellets, briquettes, electricity). In order for this to happen technology transfer needs to happen first.

Considering that the need for energy from biomass from point of view of its price, green energy, sustainability is increasing, the use of biomass energy on the local as well as regional and wider markets in inevitable. This is the main condition for pushing the biomass as energy product in the future.

8. SWОТ Analysis

Advantages

- Significant biomass potential,

- Accessibility of unused land for growing the

fast-growing plantations for energy use, - Decrease in CО₂ emissions,

- Support of development of forestry and

wood-processing industry,

- Generation of significant amount of energy

from RES,

- Generating energy surplus

Disadvantages

- Lack of research of bioenergy resource

potential,

- Very low prices of traditional energy sources,

- Lack of own financial resources,

- Lack of program for potential investors,

- Lack of adequate regulatory stimulation,

- Lack of knowledge and public information

about energy potential of biomass

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Possibilities

- Improving energy stability,

- Direct replacement for fossil fuels,

- Export of energy,

- Increase of national product:

- New employment options

- Development of local businesses

- use of investment from Kyoto protocol

Threats

- Potential competition

- Fossil fuel might be cheaper

- Intensive energy generation from: sun, wind

or geo potential

9. CONCLUSION

Results show that Montenegro has significant biomass (wood and other) potential that can be used for energy generation.

Total estimation of energy value is 4.200 GWh.

The largest biomass energy potential is in the forestry sector. Currently forestry production is half of its possible potential, which points out to significant reserves.

The growth of fast-growing plantations would be significant improvement in energy potential of biomass. The potential and suitable land exists in Montenegro.

The possible energy quantity presented shows that biomass could introduce large economic potential if it was used for energy generation.

Energy from biomass is renewable and practically doesn’t have negative effects on environment. Moreover, it represents an improvement for environment since it replaces fossil fuels.

Montenegro should focus on technology transfer for biomass technology in order to create conditions for the best use of current potential and future development.

10. REFERENCES

Pejović V.(1992). Study of raw material in Montenegro MP for engineering and consulting (in Montenegrin), Inkos ZIR, Titograd

Glavonjić B. (2002). Economy of wood-processing industry – practicum (in Montenegrin), University of Belgrade – Forestry faculty, Belgrade

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Government of Montenegro (2003). Sanitation – development study for wood-industry and forestry in Montenegro, Ministry of Economy, Montenegro

REZ, Regional development agency for central region BiH (2006). Feasibility study, Commercial use of wood residuals in BiH, Sarajevo

Study (2007). Potential and possibilities for creating briquetts and pallets from biomass residuals on the territory of Vojvodina, University of Novi Sad, Agricultural university, Novi Sad

Energy Saving Grop (2007). Feasibility study- Use of wood residuals in Serbia, USAID

Krajnc N.(2007). Green electrical energy, Lastnik gazdov, Gozdar institute of Slovenia, Ljubljana

Glavonjić B. (2008). Guide to wood biomass: types, characteristics and advantages for heating, Ministry for agriculture, forestry and water of Republic of Serbia, University of Belgrade, Forestry faculty

Salopek D. (2008). Use of biomass for energy generation, Status of biomass of Croatian forests, Zagreb

Vasioljević A. I Glavonjić B. (2008). Effect of consumption on production of pallets in Austria, Magasin of forestry faculty, Belgrade

D’APPOLONIJA&DFS inzenjering(2008). Feasibility study, Combined generation plant and pallet production JAVORAK, Genoa, Italy

Summary of articles from International conference (2008). Wood biomass – the choice of Serbia for XXI century, Belgrade, University of Belgrade, Forestry faculty

Dundovic J.(2008.). Energy use of forestry biomass in Croatia – potential and perspective, Croatian forests, Gospic

MONSTAT Montenegro (2009) Annual statistics 2009, Podgorica, Montenegro

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