Energy Efficiency in Intensive livestock Estonia

Transcription

1 Danish Energy Authority Energy Efficiency in Intensive livestock Estonia July 2004 Published : 6 July 2004 Project : Prepared : Sophie Skau Damskier Checked : Approved : Jens Baungaard

2 TABLE OF CONTENTS PAGE ABRIVATIONS 1 1 INTRODUCTION 2 2 PROJECT RESULTS Energy-saving measures on pig farms Energy-saving measures on poultry farms Energy-saving measures on cattle farms Biogas EKSEKO Tallegg Emission reductions 11 3 FINANCING AND BARRIERS 12 4 EU-DIRECTIVES 12

3 ABRIVATIONS Page 1 ARIB BAT EEK GHG IPPC SAPARD Agricultural Register and Information Board Best Available Technology Estonian Kroner Green House Gasses Integrated Prevention, Pollution and Control EU support scheme for the agricultural sector

4 1 INTRODUCTION Page 2 Three studies on energy-saving measures for large Estonia pig, poultry and cattle - farms respectively have been completed with the purpose of describing the present enery situation and the future prospects of energy consumption within large livestock farming in Estonian. The findings of these studies are presented in the reports: - Energy-saving measures on pig farms - Energy-saving measures on poultry farms - Energy-saving measures on cattle farms Further, two studies on the potential use of biogas has been performed on a larg pig farm and a large poultry farm. The results from these studies are presented in the following reports: - EKSEKO Biogas Feasibility Study - Tallegg Biogas Feasibility Study This report gives a summary of the five reports presenting information on the present situation on energy consumption per animal and on national level, assessment of possible energy savings and evaluations of obtainable savings on national level if these savings are carried through over a ten-year period. When the term energy consumption, energy savings, energy reduction etc. is used in the following and in the report of this project, the word energy is implicit electrical energy. unless otherwise specified.

5 Page 3 2 PROJECT RESULTS 2.1 Energy-saving measures on pig farms This report compromises detailed information on energy consumption per pig in Estonia and Denmark respectively based on field investigations and Danish statistics. Field investigations were executed on pilot farms large enough to be covered by the IPPC directive. Having a higher consumption in Estonia then in Denmark and then it is demanded in the BAT, there is an incentive to reduce the energy consumption on Estonian pig farms. Pig producers in Denmark have, in spite of a low energy consumption, a high production of pigs and pork meet and are competitive on the international marked. Present situation Comparison showed that energy consumption today in Estonia is: - 40 % higher then in Denmark in 1994 for one sow with piglets and weaners - Almost 2 times higher then demanded in BAT and 5 times higher then in Denmark for a fattening pig Energy-saving methods Information on present types of ventilators, feeding systems, lighting, manure removing system etc. on the pilot farms was gathered and showed that efficiency often was low compared to state of the art equipment available in today s market. If this equipment is exchanged with newer equipment the energy consumption could be reduced with: - ~ 40 % on feeding systems - ~ 45 % on ventilation - Up to 100 % on heating (most of these savings are on account of change of fuel) - ~ 50 % on lighting - ~5 % on water pumping on farms with their own water well Energy-savings as a result of increased energy awareness among the farm workers (energy management) has not been an issue of the present project. Future situation An example of a ten-year plan for energy reduction has been prepared with basis in the above-mentioned savings in the different fields of use. If all large Estonian pig farmers renew their equipment according to suggested methods and equipment described in the report and within 10 years, based on present consumption, then the energy consumption within pig and pork-meat production would be reduced: - ~ 35 % for sows with piglets and weaners - ~ 55 % for pigs On national level the energy consumption would be reduced as shown below:

6 Page 4 Sows with EKSEKO Pigs with EKSEKO Sows without EKSEKO Pigs without EKSEKO MWh/year Year 2.2 Energy-saving measures on poultry farms This report compromises detailed information on energy consumption per ton of broiler meat, egg and young laying hen produced in Estonia and Denmark respectively based on field investigations and Danish experience figures. Field investigations were executed on three large broiler, egg and young laying hen farms. Comparison of energy consumption in Estonia and Denmark shows a ~ 1.4 times higher energy consumption in Estonia. Present situation Comparison shows that energy consumption today in Estonia is: times higher then in Denmark in 1994 for a ton of produced chicken/broiler meat times higher then in Denmark in 1994 per produced 1,000 eggs - 1,4 times higher then in Denmark in 1994 per produced 1,000 young laying hens Energy-saving methods Information on present types of ventilators, feeding systems, lighting, manure removing system etc. on the pilot farms was gathered and shows that in some cases the efficiency was low compared to state of the art equipment available on today s market. If this equipment is exchanged with newer equipment the energy consumption could be reduced with:

7 - ~ 80 % on feeding systems - ~ 20 % on lighting - ~ 100 % on ventilation (saved by changing to natural ventilation) - ~ 90 % on heating (most of these savings are on account of change of fuel) - ~ 40 % on egg handling - ~ 20 % on manure removal Page 5 Energy-savings as a result of increased energy awareness among the farm workers (energy management) has not been an issue of the present project. Future situation An example of a ten-year plan for energy reduction with basis in the above mentioned savings in the different fields of use are presented in the report. If all large Estonian poultry and egg farmers renewed their equipment according to suggested methods and equipment described in the report and within 10 years, based on present consumption, then the energy-savings within broiler meat, egg and young laying hens production would reduce with: - ~ 35 % for production of chicken/broiler meat - ~ 63 % for production of eggs - ~ 60 % for production of young laying hens On national level the energy consumption would be reduced as shown below:

8 Page 6 National yearly energy consumption for poultry in Estonia Broilers Eggs Young layers 6.000, , ,0 GWh/year 3.000, , ,0 0, Year 2.3 Energy-saving measures on cattle farms This report compromises detailed information on energy consumption per cow in Estonia and Denmark respectively based on field investigations and Danish experience figures. Field investigations were executed on three large cattle farms. Comparison of energy consumption in Estonia and Denmark shows an average 1.7 times higher energy consumption in Estonia. Present situation Comparison shows that energy consumption today in Estonia is: times higher then in Denmark in 1994 for milking cows times higher then in Denmark in 1994 for heifers Energy-saving methods Information on present types of ventilators, feeding systems, milking systems, lighting, manure removing system etc. on the pilot farms were gathered and shows that in some cases the efficiency was low compared to state of the art equipment available in today s market. If this equipment is exchanged with newer equipment the energy consumption could be reduced with:

9 Page 7 - ~ 20 % on feeding systems - ~ 25 % on milking systems - ~ 100 % on ventilation (saved by changing to natural ventilation) - ~ 90 % on heating (most of these savings are on account of change of fuel) - ~ 20 % on lighting - ~ 95 % on manure removal (saved by changing to manual removal with tractors) Energy-savings as a result of increased energy awareness among the farm workers (energy management) has not been an issue of the present project. Future situation An example of a ten-year plan for energy reduction with basis in the above mentioned savings in the different fields of use are presented in the report. If all large Estonian cattle farmers renewed their equipment according to suggested methods and equipment described in the report and within 10 years, based on present consumption, then the energy-savings within cattle farming would reduce with: - ~ 50 % for milking cows - ~ 80 % for heifers On national level the energy consumption would be reduced as shown below: National yearly energy consumption for milking cows and heifers in Estonia Milking cows Heifers MWh/year Year

10 2.4 Biogas Page EKSEKO AS EKSEKO is among the 52 Estonian IPPC farms. It has around 65,000 pigs in the stables and roughly each third pig produced in Estonia is born on the farm. The specific challenges for AS EKSEKO is defined as: Odours and nuisances from the pig production due to manure handling, storage and especially spreading is a severe problem. AS EKSEKO has informed, that there each year would be articles in the local newspapers blaming the farm for the smell of their production. The farm would have to seek a special environmental approval (according the IPPC Directive) before 1 September 2005, and the opinion of neighbours is important for receive of such approval. The farm is without own fields with crops, which could absorb the manure as fertiliser, and is therefore dependent on agreements with neighbour farms. The amount of nitrogen and other plant nutrients in the manure is thus given away for free today - alone the amount of nitrogen in the manure is estimated to 749 tonnes per year (ex animal), equivalent to a value of more around 5 million of EEK. The value of the manure as fertiliser, which in total is more than 16 million EEK, could be released only if the farm could sell the manure on the open market. The farm would have a problem with the disposal of dead animals in the future. The present practice of burying them on a plot of around 2 ha could probably not be approved in the future due to IPPC and other legislation. Traditional rendering is costly, especially after the introduction of several legal acts 1 to hinder the spreading of BSE; in Denmark rendering costs about 3 DKK per kg dead animal, which for the AS EKSEKO farm would equal more than EEK 2.1 million per year. The amount of slurry produced at the farm is around 130,000 tonnes per year, and the costs of handling the slurry is approximately 4 million EEK per year, although the manure stores presently are totally depreciated theoretically this expense alone would be enough to pay for the interest rate of an investment of EEK 67 million (provided financed with credits with an interest rate of 6% p.a.). The present slurry lagoons are depreciated and worn down and the farm is standing in front of investments of around million EEK in new slurry tanks. The farm has huge energy consumptions for heating and ventilation. The costs of this energy consumption could be reduced by use of own biogas for heating and/or production of electricity, and the dependence on external supplies would be decreased. The amounts of slurry and other organic wastes from AS EKSEKO and close surroundings would make it possible to produce 7.5 million m 3 biogas per year. 1 1) The ban on the use of proteins derived from mammalian tissues for feeding ruminants, D 94/381/EC of 27 June ) The introduction of new pressure-cooking standards for processing mammalian waste, the D 96/449/EC of 18 July ) The temporary ban on use of meat and bone meal, D 2000/766/EC of 4 December ) The Prevention, control and eradication of certain TSE R999/2001of 22 May 2001.

11 Page 9 Compared to combustion in the existing gas boilers it would be a much more favourable solution to convert the biogas into electricity, which would save the farm 11.3 million EEK per year for the purchase of electricity. The own electricity supply would cover around 60% of the electricity use on the farm, so connection and sale to the grid would not be necessary. The value of the plant nutrients in the end products are estimated to be no less than 16 million EEK if it was sold on commercial conditions. Due to costs of sales and marketing etc. we estimate the gross income from sales of mineral fertilisers to be 8.3 million EEK. It is recommended AS EKSEKO to continue with the preparations for the erection of a biogas plant of the type, which includes technologies for separation of end products, pressure-cooking for processing of dead animals, etc. The economic impacts are estimated as a net investment of EEK 83 million, and with annual revenues of EEK 26.8 million and annual costs of 13.8 million the investment would be paid back in 7 years. It is suggested to organise the biogas plan as a daughter company to AS EKSEKO. Various permits, agreements and investigations should be handled before the final construction works starts. The plant could be ready for use by September The environmental impacts of the biogas plant are estimated to no less than 29,000 tonnes CO 2e per year, 47,243 tonnes SO 2 per year and 6,120 tonnes SO x per year. The reduced amount of ash is estimated to 820 tonnes per year. The environment would furthermore be saved for 370 tonnes of N, 26 tonnes of P and 30 tonnes of K per year due to a higher field effect Tallegg The economics of poultry operations is under constant pressure and it is therefore equally important that TALLEGG improves its economical performance. The principle of turning waste into value represents a new business opportunity, which allows TALLEGG to meet the environmental challenges while at the same time increase the economic return of the operation. In general the large animal production farms in Estonia, in cooperation with the Estonian Government, face the challenge of complying with EU legislation, including the IPPC Directive, the Nitrate Directive, EU s decisions on rendering of dead animals as well as the Kyoto Protocol In general the scope for biogas production in Estonia is related to the number of large animal production units, of which there are 52, and to the economic and legal conditions. Estonian policies do not favour energy production from renewable sources, so the erection of biogas plants in Estonia would be carried out more for environmental and sanitarian reasons, for instance with the purpose of obtaining an IPPC approval.

12 Page 10 AS TALLEGG is among the 52 Estonian to obtain an IPPC permit. It has around 279,000 hens and 965,000 broilers in its stables excluding parent and young stock breeding stocks, and is probably the largest poultry farm in the Baltic countries. The specific challenges for AS TALLEGG are defined as: Disposal of manure around 20,000 tonnes of slurry and 15,000 deep litter. The farm has agreements with 2 companies (legally and economically separate from TALLEGG), who take the manure away. This solution is satisfactory to TALLEGG. The companies spread the manure on the fields or make it into compost. The operation does not seem very profitable. There is a high content of P in the manure, and it is limited how much they are allowed to spread onto the fields per ha. Dry matter content is 10-20%. The contracts with the companies are of 1-year duration with automatic prolongation. There are strong smells from the spreading of the manure, and there are more and more complaints from people Tallinn is growing and spreading. Manure is only spread in spring and autumn. Rendering. Dead animals are collected in containers and picked up by the rendering plant Vania. The farm is without own crop fields, which could absorb the manure as fertiliser, and is therefore dependent on agreements with neighbouring farms (via the 2 contracted companies). Currently, the amount of nitrogen and other plant nutrients in the manure is thus given away for free. The farm has huge energy consumption for heating, feeding and ventilation. The cost of this energy consumption could be reduced by the use of own biogas for heating and/or production of electricity, and the dependence on external supplies would be decreased. The amounts of slurry and other organic wastes from AS TALLEGG and its close surroundings would make it possible to produce 8.9 million m 3 biogas per year. Compared with combustion in existing gas boilers, it would be a much more favourable solution to convert the biogas into electricity, which would enable the sale of electricity for EEK 16.1 million per year. The value of the plant nutrients in the end products are estimated to be no less than EEK 25 million if it was sold on commercial conditions. Due to sales and marketing costs etc. we estimate the gross income from the sales of mineral fertilisers would be EEK 12.1 million. It is recommended that Bio Projekt continue with the preparations for the erection of a biogas plant of the type, which includes technologies for separation of end products, pressure-cooking for processing of dead animals, etc. The economic impacts are estimated as a net investment of EEK 203 million, and with annual revenues of EEK 49.1 million and annual costs of EEK 30.3 million, the investment would give an annual profit after depreciation and payment of interest costs of 18.8 million. The simple payback period is roughly estimated to 2½ year. If the investors would fail to obtain 50% support for the investment costs, the annual costs would be EEK 36.1 million; the annual profits EEK 13 million, and the simple payback period approx. 6 years.

13 The company Bio Project has been established to mature the biogas project. Page 11 Various permits, agreements and investigations should be handled before the final construction works starts. The plant could be ready for use by September The environmental impacts of the biogas plant are estimated to no less than tonnes CO 2e per year, kg SO 2 per year, and kg NO x per year. The reduced amount of ash is estimated to 965 tonnes per year. The environment would furthermore be saved from 870 tonnes of N, 158 tonnes of P and 12 tonnes of K per year due to a higher field effect. 2.5 Emission reductions As mentioned earlier the term energy is implicit electrical energy. Assuming all electricity in Estonia is produced 100 % on oil shale, the reduction of the energy consumption on the Estonian farms constitute: Emissions when electricity is SO produced on Oil-shale 2 NO x CO 2 Energy on MWh/year 2,844 g/kwh 1,080 g/kwh 1,075 g/kwh national level Pigs Present 30,323 ~ 86,240 kg ~ 32,750 kg ~ 32,600 kg After 10 years of renovation 18,473 ~ 52,540 kg ~ 19,950 kg ~ 19,860 kg Saved 11,850 33,700 kg 12,800 kg 12,740 kg Poultry Present 7,844 ~ 22,310 kg ~ 8,470 kg ~ 8,430 kg After 10 years of renovation 3,352 ~ 9,530 kg ~ 3,620 kg ~ 3,600 kg Saved 4,492 12,780 kg 4,850 kg 4,830 kg Cattle Present 127,956 ~ 363,910 kg ~ 138,190 kg ~ 137,550 kg After 10 years of renovation 58,468 ~ 166,280 kg ~ 63,150 kg ~ 62,850 kg Saved 69, ,630 kg 75,040 kg 74,700 kg Above figures shall be seen as a maximum reduction of emission. The level of future emissions, especially for cattle farming, should be considered with some reservations since some of the savings originates from changing from electricity to different types of fuel.

14 Page 12 3 FINANCING AND BARRIERS There are no major institutional or legal barriers to an improvement of energy efficiency within the agricultural sector. On the contrary, it must be concluded that implementation of the IPPC Directive will promote energy efficiency in Estonia. Lack of knowledge about the IPPC Directive among farmers, constructors, suppliers of equipment and consultants, however, could be an obstacle. With ARIB the government has an institution that could assure awareness about the directive in general and the potential for reductions in energy costs. There are no major barriers to the access to capital. Pig, poultry and cattle farms, like other commercial businesses, can achieve financing from commercial banks at commercial conditions. Besides, there are a number of grant sources for funding, especially the EU Structural Funds. One of these is the ARIB that provides grants up to 50% of the total investment amount eligible for support. The ARIB is the central institution responsible for the implementation of this measure. The Veterinary and Food Board, the Plant Production Inspection and the local Environment Services are also involved in technical and environmental assessments. If required, the ARIB may engage additional expertise to evaluate some of the projects submitted. ARIB was established on 20 July 2000 as a governmental institution subordinated to the Ministry of Agriculture. The number of applications increased from 178 in 2001 to 426 in The number of approvals increased from 130 in 2001 to 379 in During the two first years of the SAPARD programme 317 mio. EEK were allocated for 509 projects. The real barrier seems to be the general economic situation for farmers in Estonia for the time being. Loss of markets for agricultural products in the former Soviet Union and the liberal trade policy of Estonia have had a considerable effect on the development of the entire agricultural sector. The domestic supply in meat production as well as the share of meat products in total exports has fallen dramatically since the late 90ties. 4 EU-DIRECTIVES A number of energy related EU directives would have impact on the agricultural sector: o Energy performance of buildings o Promotion of electricity from renewable energy sources in the internal electricity market o Trading of greenhouse gasses in the European Union. Other directives would apply as well but the mentioned are those with direct impact. Further, initiatives on Joint Implementation JI may have an impact on the sector, especially concerning the biogas possibilities. This option is described more detailed in the two biogas reports.

15 Page 13 The energy performance directive may have a direct impact on new constructions/buildings where heating is need for comfort or production purposes. It should be noted that the directive provides possibilities for exemptions for agricultural buildings, which are part of a national sector agreement on energy efficiency. It is recommended that Estonia follow the implementation of this directive in order to apply a solution similar to other EU member states with a similar agricultural sector as the Estonian. The directive on promotion of energy on renewable resources will apply only to the part of the agricultural sector where the biogas potential may be exploited. The two biogas studies show that there is a potential for electricity production. However, the potential may only be exploited if either a financial regime exists promoting this type of production or the above JI possibility can be employed. The directive on trading of greenhouse gasses may be taken into consideration concerning the more intensive investments in energy efficiency measures. However, this opportunity is most likely only a possibility for large farms.