Summary of Feasibility Checks in Croatia

Transcription

1 Development of sustainable heat markets for biogas plants in Europe Project No: IEE/11/025 Summary of Feasibility Checks in Croatia April 2014

2 Authors: Igor Novko, Energy Institute Hrvoje Požar Željko Plantić, Energy Institute Hrvoje Požar Contact: Igor Novko, Energy Institute Hrvoje Požar Tel: Savska cesta Zagreb Report No. WP 3 - Task 3.5 The BiogasHeat project (Development of sustainable heat markets for biogas plants in Europe) is supported by the European Commission in the Intelligent Energy for Europe Programme. The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Union. Neither the EACI nor the European Commission is responsible for any use that may be made of the information contained therein. The BiogasHeat project duration is from April 2012 to April 2015 (Contract Number: IEE/11/025). BiogasHeat website: March EIHP

3 Table of Contents 1. Introduction 4 2. Feasibility checks overview 4 3. Feasibility checks results Biogas plant Landia (operational) Biogas plant N o 2 (operational) Biogas plant Veliki Zdenci (in the planning stage) Biogas plant Pisarovina (in the planning stage) Biogas plant N o 5 (under consideration) Biogas plant Lipik (under consideration) Biogas plant N o 7 (under consideration) Biogas plant Vladislavci (in the planning stage) Biogas plant Brezik (under consideration) Biogas plant N o 10 (operational) 8 4. Conclusion 9 March EIHP

4 1. Introduction In the spring of 2013 the Energy Institute Hrvoje Požar announced a call with a proposal for cooperation by identifying and reviewing possible ways of heat usage for a limited number of biogas plants in Croatia that have already been or are supposed to be realized in the near future. The form of assistance is a free drafting of pre-feasibility study within BIOGASHEAT project that should be helpful in decision making and a beneficial aid to existing biogas heat plant operators as well as potential ones in conceivable future. Energy Institute Hrvoje Požar, regarding the potential benefits and unsatisfactory state with heat usage in biogas sector which is underdeveloped in Croatia has decided to participate in this project to use inspiring local and international experiences for dissemination of public beneficial and sustainable solutions to as many as possible biogas plants throughout the country. 2. Feasibility checks overview Selection of biogas plants, for which the study had been drafted, was provided under the several criteria. Data provided through questionnaire form was the starting point for the analysis. The main idea was managed by the size of biogas plant, the amount of actual unused heat, its location and, last but not least, the considered case scenarios that had been opted for by biogas plant s owner/investor. Under the scope of this item were both the existing biogas plants (i.e. under operation) as well as those that only exist as an actual project hopefully to be realized in the near future. Finally three existing biogas plants and seven planned biogas plants were evaluated. The total electrical capacity of biogas plants evaluated was 7,808 MW and corresponding thermal capacity is 8,573 MW. The current level of heat usage for useful purposes was very poor. Remarkable 23% of total generated heat (after deduction of heat used for biogas plant s technological demand) was utilized. It was predominately for the purpose of heating of fermentors. Basic information regarding the size of biogas plants under consideration is given in the following table. Id Biogas plant Name Electrical Capacity Thermal Capacity Table 1: Main data of biogas plants under consideration Annual Heat Production Applicable Heat Energy Status 1 Landia 1,000 kw el 1,070 kw th GWh GWh Operational 2 Biogas plant No.2 1,998 kw el 2,170 kw th GWh GWh Operational 3 Veliki Zdenci 300 kw el 340 kw th GWh 1.55 GWh Planned 4 Pisarovina 1,000 kw el 1,090 kw th 9.27 GWh GWh Planned 5 Biogas plant No kw el 159 kw th GWh GWh Planned 6 Lipik 700 kw el 829 kw th GWh GWh Planned 7 Biogas plant No kw el 170 kw th GWh GWh Planned 8 Vladislavci 100 kw el 98 kw th GWh GWh Planned 9 Brezik 396 kw el 469 kw th GWh GWh Planned 10 Biogas plant No.10 2,036 kw el 2,178 kw th GWh GWh Operational Total 7,808 kw el 8,573 kw th GWh GWh 3xOperational 7xPlanned March EIHP

5 Assessed concepts of heat utilization were diverse and they typically covered existing heat demand via district heating, ORC system, drying of versatile compounds (wood, agricultural products etc ), milk treatment (pasteurization and cooling) and greenhouse heating. 3. Feasibility checks results Upon selection and assessment the pre-feasibility studies usefulness, ten projects were selected for a feasibility check. The preconditions were: real interest of investors and their potential commitment, favorable location conditions with regard to possible heat use and capacity of heat production. Investor s motivation for meaningful use of heat and also potential economic benefits for biogas plants under consideration were the triggering factors. The pre-feasibility studies have been elaborated for the ten following biogas projects Biogas plant Landia (operational) Biogas plant Landia is located in a village Tordinci in Vukovar-Syrmia County. It is operational from October It is a beneficiary of subsidized price for produced electrical energy according to agreement with Croatian energy market operator (HROTE), which was due in year Input raw material for production of biogas comes from own sources and it is mostly made up of liquid cow manure from a nearby farm (25,000 t/y) and maize silage (15,000 t/y). The total electrical capacity of biogas plant is 1,000 kw e, and the total thermal capacity is 1,070 kw t. The total annual production of useful heat, after deduction of own technological consumption for BGP, is expected to be 5,279,400 kw t h (based upon expected 8,200 Cases considered in the feasibility check were the following ones: OPTION 1: ORC system OPTION 2: Dryer of corn and hay OPTION 3: Greenhouse 3.2. Biogas plant N o 2 (operational) Biogas plant N o 2 consists of two identical biogas plants located in the same farm area. They have identical technical specification. The milk cow farm is situated in Osijek-Baranja County. Input raw material for biogas production is mostly made up of liquid cow manure. Both cogeneration units are fully operational and are a beneficiary of subsidized price for produced electrical energy according to agreement with Croatian energy market operator (HROTE), which was due in year The total electrical capacity of biogas plant is 2x999 kw e, and the total thermal capacity is 2x1.085 kw t. The total annual production of useful heat, after deduction of own technological consumption for BGP, is expected to be 2x kw t h (based upon expected 8,200 Cases considered in the feasibility check were the following ones: OPTION 1: Greenhouse OPTION 2: Dryer of digestate 3.3. Biogas plant Veliki Zdenci (in the planning stage) Biogas plant Veliki Zdenci is still in the planning stage. Biogas plant project was launched because of necessity to settle excess of stable manure and liquid manure from March EIHP

6 accompanying cow farm situated at the address Lovraka 118/b, Veliki Zdenci. For the time being they ve just made a selection regarding technology and their supplier. Final drafting of technical documentation and the start of construction works is expected to be in spring Input raw material for biogas production is mostly made up of cow s stable and liquid manure. Maize silage as well as additional dairy products should also be added accordingly but they won t be from their own resources. The total electrical capacity of biogas plant is 300 kw e, and the total thermal capacity is 340 kw t. The total annual production of useful heat, after deduction of own technological consumption for BGP, is expected to be 1,550,400 kw t h (based upon expected 8,000 Cases considered in the feasibility check were the following ones: or technical wood OPTION 2: ORC system 3.4. Biogas plant Pisarovina (in the planning stage) Biogas plant Pisarovina is still in the planning stage. The location of the future biogas plant is in Zagreb County, just 20 kilometers from city of Zagreb. The investor has obtained interim energy permit from Croatian Energy Regulatory Agency (HERA). Also, it concluded in April 2012 an agreement with Croatian energy market operator (HROTE) for redemption of electrical energy. The technology has already been selected and the start of building work is expected soon. Input raw material for biogas production would be mostly made-up of sudan grass silage, maize silage, liquid manure and organic waste. The total electrical capacity of biogas plant is 1,000 kw e, and the total thermal capacity is 1,090 kw t. The total annual production of useful heat energy, after deduction of own technological consumption for BGP, is expected to be 7,041,400 kw t h (based upon expected 8,500 Cases considered in the feasibility check were the following ones: OPTION 1: District heating OPTION 2: Dryer of digestate 3.5. Biogas plant N o 5 (under consideration) Biogas plant N o 5 is still in the planning stage. It would be located in Koprivnica-Križevci County, in the near proximity of town Koprivnica. There is a poultry farm located at the same land, with around 34,000 chicken in one shift and total of 5 shifts per one year. Obviously, the amount of bio-degradable waste would be quite enough for biogas production. The total electrical capacity of biogas plant is kw e, and the total thermal capacity is kw t. The total annual production of useful heat, after deduction of own technological consumption for BGP, is expected to be 1,027,874 kw t h (based upon expected 8,000 specific desire for the modalities of possible heat energy usage. Accordingly, cases considered in feasibility check were the following ones: OPTION 2: Heating of poultry house and household object March EIHP

7 3.6. Biogas plant Lipik (under consideration) Biogas plant Lipik is still under consideration stage. Potential location of this biogas plant would be in village Antunovac, in Požega-Slavonia County, some 17 km away from town Lipik. Biogas plant should be build within the place of yet existing cow farm. Input raw material for biogas production would be mostly made-up of stable and liquid manure from their own cow shed as well as from neighboring ones with the total of round 150 cows and 200 bulls. Obviously, there would enough of bio-degradable waste to be used for biogas production. The total electrical capacity of biogas plant is 700 kw e, and the total thermal capacity is 829 kw t. The total annual production of useful heat, after deduction of own technological consumption for BGP, is expected to be 4,742,286 kw t h (based upon expected 7,151 specific desire for the modalities of possible heat energy usage. Accordingly, cases considered in the feasibility check were the following ones: OPTION 2: ORC system 3.7. Biogas plant N o 7 (under consideration) Biogas plant N o 7 is still under consideration stage. Potential location of this biogas plant would be in proximity of existing facility for waste water and rainfall treatment, part of drainage system of the nearest town. Input raw material for biogas production would be made-up of mud and sludge that is being produced from that facility for waste water and rainfall treatment. According to data published on company official web page there is daily produced amount between 14 t and 18 t of dehydrated mud leading up to 5,110 t and 6,570 t of mud produced annually. Aforementioned substrate contains too high a percentage of dry substance; therefore water would be needed to lower the amount of dried substance to some 40 to 60 %. The total electrical capacity of biogas plant is kw e, and the total thermal capacity is kw t. The total annual production of useful heat, after deduction of own technological consumption for BGP, is expected to be 1,027,874 kw t h (based upon expected 8,000 specific desire for the modalities of possible heat energy usage. Accordingly, the only one considered feasibility check was the following one: 3.8. Biogas plant Vladislavci (in the planning stage) Biogas plant Vladislavci is still in the planning stage. Potential location of this biogas plant would be in village Vladislavci, situated in Osijek-Baranja County, some 18 km away from town Osijek towards Đakovo. Input raw material for biogas production would be mostly made-up of stable and liquid manure from own shed with the total of around 60 cows and 110 other cattle. Despite its relatively small size this farm represents a potent source for its own electrical and heat requirements as well as ecological way of disposal of organic waste substances. Accordingly, input raw material for biogas production would be mostly made-up of stable and liquid manure (1,508 t/y). In addition, maize silage (1,530 t/y) would be also gathered from other farmers that are located nearby. March EIHP

8 The total electrical capacity of biogas plant is 100 kw e, and the total thermal capacity is 98 kw t. The total annual production of useful heat, after deduction of own technological consumption for BGP, is expected to be 550,384 kw t h (based upon expected 8,059 working hours per year). specific desire for the modalities of possible heat energy usage. Accordingly, cases considered in the feasibility check were the following ones: OPTION 2: Milk pasteurization OPTION 3: Milk cooling 3.9. Biogas plant Brezik (under consideration) Biogas plant Brezik is still under consideration stage. Versatile implementation and feasibility studies are being pursuit and analyzed. Potential location of this biogas plant is in village Brezik, in borough Lukač in Virovitica-Podravina County. It is some 5.4 kilometers away from a nearby town Virovitica, which presents versatile possibilities for heat energy usage. The biogas plant would be built in the scope of neighboring cattle farm containing at the present some 120 cattle. Accordingly, input raw material for biogas production would be mostly made-up of stable and liquid manure (374.4 t/y and t/y respectively). Also, additional input raw material would consist of maize silage, lucerne silage (Medicago sativa) as well as silage from Tritikale (Triticosecale), all derived from their own agriculture land, 160 ha in size. The total electrical capacity of biogas plant is 396 kw e, and the total thermal capacity is 469 kw t. The total annual production of useful heat energy, after deduction of own technological consumption for BGP, is expected to be 3,000,960 kw t h (based upon expected 8,000 specific desire for the modalities of possible heat energy usage. Accordingly, cases considered in the feasibility check were the following ones: OPTION 2: ORC system OPTION 3: Milk pasteurization Biogas plant N o 10 (operational) Biogas plant N o 10 is a landfill. It is in operational for a year. The landfill is situated at the suburban area of one Croatian town. There are two existing cogeneration units, both with electrical capacity of 1,018 kw. The acquisition of the identical third one is in the process and it is expected to be operational during At the time being waste heat is not being utilized and it is being disbursed into environment. The total electrical capacity of biogas plant is 2x1,018 kw e, and the total thermal capacity is 2x1,070 kw t. The total annual production of useful heat (there is no heat deduction for the purpose of its own technological consumption), is expected to be 2x8,560,000 kw t h (based upon expected 8,000 In this study there was only one considered feasibility check option: OPTION 1: ORC system March EIHP

9 This option was considered for two variations: operation of two existing units (2x1,018 kw e ) and future planned case with third identical cogeneration unit installed (3x1,018 kw e ). It should be noted that this location was also suitable for district heating application because of the proximity of settlement houses and municipal district heating pipeline route. However this option had already been analyzed in another commercial study in year Conclusion Exploitation of heat from biogas plants in Republic of Croatia is not subsidized. There is only a provision regarding achieving subsidized price for electrical energy. According to current tariff system preferred operator only needs to achieve the total efficiency of 50 % in conversion of primary energy Q [MJ] to electrical energy E i [MWh] and utilized heat H k [MJ]. The total annual energy efficiency is defined through the formula: η k,res = ((3600 x E i ) + H k )/Q Hence, the usage of heat from biogas plant is considered as favorable in the sense of this provision. The compliance of minimal annual energy efficiency for each subsidized producer of electrical energy is being done by Croatian Energy Regulatory Agency (HERA) through on-site measurements. Measurement equipment should be incorporated according to prescribed set of rules. According to aforementioned, it is easy for the biogas plant operators to fulfill legal requirements for obtaining the subsidized price of electrical energy produced. Likewise, subsidized price of electrical energy is the main motivator when considering building a new biogas plant or upgrading the existing one. Heat from biogas plants is only used for its own technological consumption (i.e. heating of fermentors) and possibly for heating of nearby objects (i.e. owner s household). Clearly, this is dependent on the time of the year; in a winter time the heat consumption is greater than in a summer time. Feasibility checks have proved the general conclusion that additional investment for further useful heat utilization is beneficial and feasible. Furthermore, its usage is beneficial for total energy efficiency of biogas plant. However, the alternatives of heat use are mostly encountering economic barriers that exist in Croatia. Regarding the present economic situation in Croatia it is not likely to expect that potential biogas plant operators are going to go after new venture possibilities that were analyzed and proposed in the feasibility checks. Furthermore, due to high investment costs the realisation of biogas plants is unlikely, because investing in heat usage is not seen as additional profit, but rather additional investment that is hard to finance On the one side, financial terms for getting a loan for investment are far from the rest of EU, and on the other side, possible subsidies for heat utilization would be highly plausible. Following aforementioned, in case of Croatia, the main recommendation would be to regulate and stimulate operators to invest in heat usage; as proposed in our feasibility checks. Nevertheless, it should be stressed out that before a final decision, each solution and option analyzed in these feasibility checks, should forego a complete and detailed technical, economical and financial analysis. In that sense, conducted feasibility checks have had the main purpose to give potential investors as well as existing operators of biogas plants ideas to (re)think about broad spectrum of possibilities for heat use. March EIHP