BIOMASS CLUSTERS IN SLOVENIA

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3 February 21, 2014 BIOMASS CLUSTERS IN SLOVENIA Janez Petek, Local Energy Agency Spodnje Podravje

4 Content of the presentation 1. Introduction of LEA Spodnje Podravje 2. PROFORBIOMED Project 3. Cluster/consortium as the tool for enhancing sustainable production and use of forest biomass 3.1 North Primorska Biomass Cluster 3.2 Spodnje Podravje Biomass Cluster 4. Slovenian approach to cluster implementation 5. Conclusions

5 Local Energy Agency Spodnje Podravje Established in 2007 under IEE Programme. Responsible for 23 municipalities 7 experts employed. Activities: - Local energy concepts - Energy audits - Feasibility studies on renewable energy sources - Applications for Cohesion Funds - Training and awareness raising - Reporting to the ministries - Energy management for municipalities - Energy bookkeeping - EU projects

6 PROMOTION OF RESIDUAL FORESTRY BIOMASS IN THE MEDITERRANEAN BASIN EU Projects 1. PROFORBIOMED (Promotion of Residual Forestry Biomass in the Mediterranean Basin) 2. RE-GREEN (Regional Policies Towards Green Buildings) 3. RECOMMEND (eco-management and eco-innovation) 4. SMART-MED-PARKS 5. BioHeatLocal 6. EUPeR

7 PROFORBIOMED PROMOTION OF RESIDUAL FORESTRY BIOMASS IN THE MEDITERRANEAN BASIN - 18 partners from Greece, Italy, France, Spain, Portugal, Slovenia - February 2012-October Promotion the use of forest biomass in the Mediterranean Basin for energy production - Establishing two biomass clusters pro partner: Cluster for Sustainable Production and (Processing) and Use of Forest Biomass for Energy Purposes. - Signing the biomass pact with stakeholders on the national levels - Capitalisation activities among MED countries - Signing the Declaration for cooperation between other strategic MED Projects (PROFORBIOME, ELIH-MED and MARIE)-Ljubljana declaration

8 Cluster/Consortium Cluster is established by a group of entities (companies, public and/or private bodies etc.) which have common goals e.g. research and development of the products/services, common appearance on the market, establishing the production chains, etc. part of the activities is usually transferred to the common office or lead company which perform common activities or particular activities according the agreement or contract. Consortium is formed by the group of entities which have the common interest to act together or perform common activities toward common goals. All participants sign the consortium contract where purpose, goals, activities are determined including obligation, financing and leadership. Example: Consortium of the 7 Slovenian Local Energy Agencies.

9 Cluster/Consortium in SLOVENIA North Primorska Region Established in June in Nova Gorica by: - 10 municipalities; - Forest management company Tolmin; - Slovenian Forest Institute; - Goriska Local Energy Agency - Local Energy Agency Spodnje Podravje

10 Cluster/Consortium in SLOVENIA Spodnje Podravje Region Established in December 20 th 2013 in Zetale municipality by: - 17 municipalities; - Forest management company Maribor - Biomass Cooperative Grca; - Slovenian Forest Institute; - Goriska Local Energy Agency - Local Energy Agency Spodnje Podravje

11 Further development of the clusters 1 Bottom-Up Approach: - Establishment of a biomass chain from the forest to the processing and production of energy - Determination of the biomass potential - To establishment biomass cooperatives (by use of the social entrepreneurship) - To establish logistic centres for wood chips production and trade - To find investors to start production of the useful products from timber (sawmill, wood processing plants, pellets production)-municipalities offer the land, government offers subsidies.

12 Further development of the clusters 2 Up to Bottom Approach: - Analysis of the possibilities of the implementation of the biomass district heating systems and CHP plants (ORC, gasification, steam turbines) - Feasibility studies - To cause the demands for wood chips and wood pellets - Connecting producers and users of biomass on the local level

13 How to develop of the biomass clusters-slovenian experiences - Stakeholders have to be aware to create and to develop local economies (Local energy concepts, action plans, Local energy agency) - In the frame of PROFORBIOMED project LEA Spodnje Podravje initiated the establishment of biomass clusters. - All relevant stakeholders have been contacted in order to find common interests (win-win situation)-(individual meetings, presentation on the formal meetings of mayors, integrity of the initiator is the most important) - LEA prepared all relevant documents and officeial proposed which was presented on the formal meeting of the regional council of the mayors - Formal decisionon by the council of the municipalities (Cooperation of the Regional Development Agency) - Preparation of the contracts and other documents (LEA and layers of the municipalities) - The ceremonial signing the cluster contract (with the presence of press) - Marketing through local and national newspapers - Operating of the cluster (LEA Spodnje Podravje and Goriska LEA)

14 BIOMASS CLUSTER ESTABLISHING METHODOLOGY Commitment for the consortium developing REGIONAL DEVELOPMENT AGENCY Marketing and partners developing Decision making for the biomass consortium/cluster establishing Signing the biomass consortium/cluster contract or agreement Cluster/consortium operating LOCAL/REGIONAL ENERGY AGENCY

15 Commitment for the consortium developing Availability of the biomass for energy production. Number of entities which can contribute to the biomass production (forest owners, saw mills, municipalities, public and private companies dealing with biomass, wood processing plants, farmers etc.). Possibilities for wood chips and wood pellets production (number of companies, farmers, capacities, machineries, equipment etc.). Possibilities to use biomass for energy production, implementation of the district heating systems, biomass CHP plants. Assessment of the public sector: number of the public buildings, energy supply and consumption, power of their boiler plants, possibilities for CHP plants etc. Prefeasibility studies for biomass district heating systems and/or biomass CHP plants. Preparing the biomass policy in the region.

16 Marketing and partners developing Publishing the intention for establishing the consortium/cluster (news in local newspapers, internet, articles in journals, presentations on the workshops and conferences). Implementation of the data base of the interested entities/partners (municipalities, research and development organisations, regional and local research agencies, local energy agencies, cooperatives, forest management organisations, wood chips and wood pellets production plants, saw mills, wood processing plants, farmers, forest owners and their organisations). Visiting all possible partners and presenting them the purpose and goals of the biomass cluster/consortium, taking into the account their interest etc. and looking for their commitment to join the consortium. Preparing the necessary documents: decisions for the local council of the municipalities, consortium/cluster contract etc.

17 Decision making for the biomass consortium/cluster establishing Formal approval of the documentation for the establishing the cluster/consortium by the invited/interested parties (mayors, directors, managers). Getting formal approval of all interested partners. On the formal session the approval for the establishing is accepted and decision is published.

18 Signing the biomass consortium/cluster contract or agreement The contract/agreement has to defined obligations of the contractors, activities, lead contractor, financing, incorporating new members and other procedures important for running the cluster/consortium.

19 CONCLUSIONS - Availability of the forest biomass - Biomass demand and supply potential - High environmental awareness in the public sector - High energy costs of the non-renewable energy sources - Local actors: cooperatives, owners of the forests, forest management companies, local wood processing industries, Local development institutions and/or Local-Regional Energy Agency - Initial costs covered by the EU project or from some other sources (stakeholders, national financial sources) - Clear vision of the cluster/consortium operating - Investors in CHP plants and/or district heating systems - EU-national subsidies for energy renovation, feed-in tariff and for biomass district heating systems - Cluster/consortium is the first step in building of the local biomass economy - Further developing of the cluster through EU projects (MED, HORIZON2020 )

20 LOCAL ENERGY AGENCY SPODNJE PODRAVJE Presernova ulica 18 SI-2250 Ptuj

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