Costs and benefits of the proposed sea based measures - preliminary results of our review

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1 aplinkos apsaugos politikos centras Costs and benefits of the proposed sea based measures - preliminary results of our review Jurgita Vaitiekūnienė, Daiva Semėnienė, HELCOM-EUSBSR Workshop on internal nutrient reserves, November 2017, Gothenburg Speaker: Daiva Semėnienė daiva@aapc.lt

2 2 EUTROPH 6 Assessment of the contribution of the Baltic Sea s internal nutrient stores on eutrophication and technical, legal, political, institutional and socio-economic aspects of potential mitigation measures (EUTROPH 6) A: Ecological, technical, economic and institutional aspects B: Policy, legal and institutional framework and procedures C: Roadmap To be prepared for the Ministry of Environment Expert team: Team leader Vahanen Environment Oy International team from FIN, SWE, EST & LIT Key experts : Esa Salminen, Juhani Anhava, Daiva Semėnienė, Karl-Johan Lehtinen, Anders Stigebrandt, Risto Valo, Milja Vepsäläinen, Minna Pyhälä, Jurgita Vaitiekūnienė, Andres Piirsalu, Mathias Bergman, Pieta Jarva

3 Three tasks in Part A Ecological, technical, economic and institutional aspects of sea based measures Task A1 Ecological review and assessment Task A2 Technical review of potential sea based measures Task A3 Socio-economy and financing of sea based measures: - investment and operating costs, other socio-economic impacts and cost effectiveness of each measure in reducing nutrient load; - review of potential financing sources, cost recovery mechanisms and offsetting schemes; - comparison of the socio-economy and cost effectiveness of sea based and land based measures to reduce external load.

4 4 Measures ELIMINATION of P leakage from sediment Oxygenation Chemical treatment Aluminium treatment Clay bombing EXTRACTION of nutrients from the Sea Algae harvesting Sediment skimming Mussel farming BIOMANIPULATION of the food web Mass removal of fish

5 Review of costs and benefits of sea-based measures is based on: Existing scientific and technical information Extensive literature review

6 Overview of costs (1). Oxygenation of the bottom sediments Cost for nutrient removal, EUR/kg Reference, year Note P N PROPPEN project, 2012 BOX-win project 2014 WEBAP project Tests in two coastal basins - Electric pumps used - 4% interest rate - Experiment in By Fjord - Modelling for the entire Bornholm basin - Using of electric pumps is considered - Depreciation time 20 years, - 5% interest rate - Demonstrations in Hanöbukten and Kanholmsfjärden - Life cycle costs for: wave energised pump electric pump cable near shore electric pump cable off shore

7 Overview of costs (2). Phosphorus adsorption on fine-particulate marl Cost for nutrient removal, EUR/kg Reference, year Note P 3 N Permanent inactivation of phosphorus in Baltic sediments, Laboratory experiments made - The cost covers only expenses for the preparation of marl to retain one kilogram of phosphorus - Field tests are needed

8 Overview of costs (3). Annoxic bottom treatment with aluminium Cost for nutrient removal, EUR/kg Reference, year Note P N BalticSea2020 project, Experiment in Björnöfjärden (ca 80 ha) - The cost includes costs for chemicals and application - The cost per kg of P retained can vary greatly depending on the scale of operation

9 Overview of costs (4). Density sorting dredging. Cost for nutrient removal, EUR/kg Reference, year Note P 32 N Nutrient retrieval from seabed, Total cost for sediment retrieval and biogas/ fertilizer production EUR/ kg P - Income from biogas and fertilizer 88 EUR/ kg P - 5% interest rate, 20 years capital recovery time

10 Overview of costs (5). Mussel farming. Cost for nutrient removal, EUR/kg Reference, year Note P N Gren et al Calculated marginal cost for harvest of P and N by mussel farming in the south of Baltic LOVA-project Förstudie storskalig musselodling i Kalmar län, 2012 NUTRITRADE project, 2017 Costs for investments at start (material and work), operating costs and cost for harvesting are included Income from feed mussels is expected to make approx. 20% of the production cost. Results from six participating farms in Sweden and Åland Islands No commercial market for blue mussels from the Baltic Sea

11 Overview of costs (6). Algae harvesting and cultivation. Cost for nutrient removal, EUR/kg Reference, year Note P N 60 2 Using algae for recycling phosphorus and nitrogen in the Baltic Sea, 2012 Results from a pilot plant in Trelleborg municipality which operates since 2011 and makes biogas from beach-cast algae.

12 Overview of costs (7). Reducing amount of plankton eating fish Cost for nutrient removal, EUR/kg Reference, year Note P n/a N NUTRITRADE project, 2017 During fishing season of 2017, in total kg of bream and roach was caught, which equals to 1,2 tonnes of phosphorus removed from the Baltic Sea.

13 Cost comparability Area, depth - what would be the implications of scaling the measure up or down in terms of costs, cost-effectiveness, or efficiency? Different location - what would be the costs of replicating the measure in a different environment? Time - what would be the costs of carrying out the measure in a different timeline? Discount rate Resource availability etc.

14 Overview of costs Measure Cost (EUR/kg P) Artificial oxygenation of bottom sediments 2-75 Adsorption on fine-particulate marl 3 Anoxic bottom treatment with aluminium Mussel farming Reducing the amount of plankton eating fish No estimates yet Harvesting and cultivation of algae 60 Density sorting dredging 32 Cost (EUR/kg N) Nitrogen removal 2-35

15 Overview of costs. Land based measures Removal of phosphorus in major treatment plants is already performed with a maximum efficiency E.g., further P removal using extra sand filters can cost EUR/kg P; building treatment system for a single household 4000 EUR/kg P. Reduction of agricultural pollution is usually very costly

16 Benefits Qualitative and quantitative

17 Benefits of achieving the BSAP goals The net benefits are estimated at million EUR/year

18 Benefits of sea based measures Oxygenation of the bottom sediments reduce eutrophication and facilitate achievement of the BSAP goals speed up the recovery of the Baltic Sea by years improve conditions for cod reproduction facilitate colonisation of the deep bottoms. Average Willingness to Pay in Sweden and Finland EUR/hh/y P removed, t/year Total benefit, EUR/year Marginal benefit, WTP EUR / kg P removed

19 Other examples of benefits Mussel farming: reduces internal P loads and facilitates achievement of the BSAP goals creates jobs can provide feed for poultry and fish Density sorting dredging: retrieved sediment decreases phosphorus import retrieved sediment halts carbon dioxide and methane production on sea bed decreasing the greenhouse effect bringing nutrient-rich biomass back upstream stimulates circular economy investment. Two main revenue streams come from biogas and nutrients

20 Further steps in the project interviews to clarify some costing numbers and summary of costs / benefits reviewed review of potential financing sources, cost recovery mechanisms and offsetting schemes comparison of the cost effectiveness of selected sea based and land based measures and other socio-economic aspects multicriteria analysis.

21 Potential prioritisation of measures Cost Benefit H M L L M H

22 Thank you very much!