Bioenergy in Ukraine: state of the art, prospects, barriers
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1 Scientific Support to the Danube Strategy Danube Bioenergy Nexus 24 th -26 th June 2014, Vienna Bioenergy in Ukraine: state of the art, prospects, barriers Georgiy Geletukha, PhD Head of the Board, Bioenergy Association of Ukraine; Head of Bioenergy Department, Institute of Engineering Thermophysics NASU; Director, Scientific Engineering Centre Biomass
2 Bioenergy Association of Ukraine (UABio) Public union Established - on 25 th September 2012, Legal registration - on 8 th April Priority tasks: Increasing the share of bioenergy in the energy balance of the country to the EU average level by 2030 Development of stimulating legislation for bioenergy, its harmonization with EU legislation. Improving the business conditions in the sector. Lobbying, advocacy and protection of interests of bioenergy sector. Development of analytical reports and position papers on the sector critical issues.
3 Share of biomass in gross final energy consumption in ЕU-27 (2011) Country Share of biomass in gross final energy consumption in 2011, % EU (in average) 8,4 Finland 28,1 Latvia 27,6 Sweden 26,6 Estonia 25,8 Lithuania 19,5 Denmark 18,9 Austria 16,7 Romania 16,0 Germany 7,8 Ukraine 1,78 Source: European Bioenergy Outlook, 2013, AEBIOM
4 Forecast of RES and biomass consumption in the ЕU-27 till 2030 Article of the balance Unit 2011 (actual) Forecast Total energy Share of RES in gross final energy consumption Share of BM in gross final energy consumption % of total 14,1% 15 % 20 % 25 % 30 % % of total 8,7 % 10 % 14 % 16 % 19 % Electric energy Share of RES in power generation Share of BM in power generation % of total 23,5% 27 % 34 % n.a. n.a. % of total 4,0 % 5,5 % 7,3 % 7,6 % 8 %
5 Utilization of biomass as a fuel in Ukraine Rural population combusts about 1,7 mill dense m 3 / year of firewood > 70 boilers combust sunflower husk Consume about 600 thous. t /year of sunflower husk About 2000 boilers for wood combustion Over 1000 boilers were transformed from coal to wood combustion Over 40 boilers combust bailed straw Consume about 3800 thous. t/year of wood waste Traditional stove Boiler by company UTEM Boiler by company Energomashproekt Boiler by company TH Krieger
6 Use of biomass for energy generation in Ukraine (2012) Type of biomass Annual volume of consumption* Share of total annual volume of natural units thousand tce (tons of coal biomass consumption equivalent) Cereal and rapeseed straw Share of economic potential 84 thous. t 43 2,0% 1% Wood (population) 1,7 mill m ,0% 80% Wood biomass (excluding population) 3,8 mill t ,6% Sunflower husk 627 thous. t ,8% 42% Bioethanol 52 thous. t 48 2,2% 6,7% Biogas from agricultural waste 20 mill m3 12 0,6% 3,9% Biogas from MSW landfills 26 mill m3 18 0,8% 6,8% TOTAL 2173** 100% * Share of energy generation in Ukraine. Export of pellets is not included. ** Corresponds to data by the State Statistics Office of Ukraine (2,17 Mill tce in 2012). 2,17 mill tce = 1,2 % of total primary energy consumption of Ukraine.
7 Energy potential of biomass in Ukraine, 2013 Type of biomass Technical potential, Mio t Share available for energy production, % Economic potential, mtce Straw of grain crops 30,6 30 4,54 Straw of rape 4,2 40 0,84 Residues of production of corn for grain 40,2 40 4,39 Residues of sunflower production 21,0 40 1,72 Secondary agricultural residues 6,9 75 1,13 Wood biomass 4,2 90 1,77 Biodiesel - - 0,47 Bioethanol - - 0,99 Biogas from manure and residues of food, sugar and other industries - - 1,22 Landfill gas - - 0,26 Sewage gas - - 0,09 Energy crops (from 2 mill ha of free land) - willow, poplar, miscanthus, acacia, alder* - corn silage for biogas* 10,0 6,17 Peat - - 0, ,45 3,79 TOTAL ,09 17,45 mtce 9,24 mtce * From 1 mill ha of free agricultural land 27,09 mill tce is equivalent of about 15% of primary energy consumption of Ukraine
8 Subsidizing of internal natural gas prices for population and DH sector makes biomass not competitive in these sectors. Comparison of natural gas and solid biofuels prices Price Calorific value Cost of energy in fuel UAH/t MJ/kg UAH/GJ Ratio of energy price of natural gas to price of biofuel NG for industry and public sectors 5200 UAH/1000 m3 = 157,5 UAH/GJ NG for housing and communal sector 1309 UAH/1000 m3 = 37,4 UAH/GJ Wood fuel (chips) ,4 4,3 1,1 Wood pellets and briquettes ,6 2,3 0,6 Straw bales ,8 5,1 1,3 Fire wood logs (with delivery) Wood pellets and briquettes Price Calorific value Cost of energy in fuel UAH/t MJ/kg UAH/GJ Ratio of energy price of natural gas to price of biofuel NG for population <6000 m 3 /y 1788 UAH/1000 m3 = 54,1 UAH/GJ NG for population <2500 m 3 /y 1089 UAH/1000 m3 = 33 UAH/GJ ,4 1,5 0, ,6 0,8 0,5
9 Barriers to development of bioenergy created by the Law of Ukraine On Electricity Power from biomass sector is in very slow progress at the moment due to some barriers in legislation. As illustration, installed capacity of power stations on RE in Ukraine (January 2014): solar photovoltaic MW; wind MW; small hydro - 75 MW; bioenergy - 15 MW. Why? Incorrect/narrow definition of "biomass"; Unrealistically high requirement for "local content" of equipment, materials and services: 50% for power stations on biomass from and 50% for power stations on biogas from ; 3. Low GT coefficient for power generated from biomass and biogas. Draft LAW OF UKRAINE «On amendments to certain laws of Ukraine regarding the incentives for power production from alternative energy sources» developed under expert support of UABio and supported by profile Parliament Committee on Soon consideration in the Parliament is expected.
10 Green (feed in) tariff for biomass and biogas in EU countries and Ukraine, Eurocents/kWh N* Electricity from biomass Green tariff (max), Eurocents/ kwh 1 Italy 28 2 Germany 22,67 3 Check Republic 19 4 Spain 17,16 5 Austria 14,98 Ukraine (2,7) 14,54 6 Bulgaria 13,04 7 Ukraine (2,3) 12,39 8 France 11,9 N* Electricity from biogas Green tariff (max), Eurocents/ kwh 1 Germany 28,67 2 Italy 28 3 Bulgaria 22,14 4 Austria 18,5 5 Check Republic 17 Ukraine (3,0)* 16,16 Ukraine (2,7)* 14,54 6 Spain 14,11 7 Ukraine (2,3) 12,39 8 UK 10,36
11 UABio concept of thermal energy generation from biomass in Ukraine Indexes Primary energy consumption, Mtce Biomass share in the total primary energy consumption 1.24% 3% 7% Mtce Biomass share in the gross final consumption of energy 1.78% 4.3% 10% Installed capacity of bioenergy equipment for heat production, MW th structure of the equipment capacity: Biomass CHPPs 1% 13% 25% MSW CHPPs - 2% 10% biomass boiler plants, domestic boilers and stoves 99% 85% 65% Biomass for heat production, Mtce 2, the share of biomass potential 6,4% 13% 26% Total production of heat, Mill Gcal Biomass share in the total production of heat 6% 14% 32% Mill Gcal ,7 Replacement of natural gas for heat production, bn m 3 /yr the share of the total natural gas consumption 2.9% 7% 15% UABio Position Paper N6
12 UABio concept on power generation from biomass in Ukraine: Installed capacity of power stations on biomass, biogas and MSW Balance item Unit 2010 Forecast Biomass CHP plants MW Biomass power plants MW Biogas power plants MW Landfill gas power plants MW Reconstructed coal TPP cofiring MW MSW CHP plants MW Total installed capacity MW UABio Position Paper N5
13 Priority areas of international cooperation in the field of bioenergy from an Ukraine perspective Technological areas: Production of heat from biomass in boilers and CHPs; Biogas and biomethane; Energy crops; Utilization of agrarian residues (straw, stems, husk, ). Specific areas: Harmonization of Ukrainian legislation with EU directives; Establishing of effective stimulation mechanisms for bioenergy; Creation of business possibilities for bioenergy in the conditions of fissile fuels subsidies for population and DH sector; Development or updating of program documents (Energy Strategy of Ukraine till 2030, National Renewable Energy Action plan, Biomass Action Plan) with increased share of RE including bioenergy.
14 Conclusions: UABio proposals on ways to overcome the barriers (1) To reduce subsides on natural gas for population and DH sector (process is started in 2014). To establish appropriate targets for the development of bioenergy, particularly in the updated Energy Strategy of Ukraine till 2030: Year Share of BM in gross final energy consumption in Ukraine Share of BM in thermal energy generation in Ukraine Share of BM in electric energy generation in Ukraine 1,78% 2,2% 4,3% 7,2% 10% 6% 8% 14% 22% 32% 0,01% 0,2% 1% 2,2% 4,0% Substitution of natural gas, bill m3/y 1,67 1,85 3,5 5,5 7,5 To increase Green tariffs for power generated from biomass and biogas: K=3.0 (16,16 Eurocents/kW*h) for power generated from biogas; К=2,7 (14,54 Eurocents/kW*h) - for power generated from solid biomass
15 Conclusions: UABio proposals on ways to overcome the barriers (2) To delete from legislation any local content requirements for projects applying for a green tariff for electricity generated from biomass and biogas. To organize a compensation mechanism in tariffs for thermal energy from biomass in the case where the cost of such thermal energy generation exceeds tariff for sale (population in DH sector). To simplify the procedure of land allocation for bioenergy facilities. To simplify the procedure for project design approval for biomass-fired boilers, CHPs, biogas plants.
16 Thank you for your attention! Georgiy Geletukha, PhD tel: We are greening the future!
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