Estonia s local energy mix, peatland management and industry

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1 Estonia s local energy mix, peatland management and industry Erki Niitlaan European Energy Future Opportunities and Challenges for Local Fuels 30. IX 2015, Tallinn, Estonia 1

2 Table of content. Estonian energy mix Potential of peat in Estonia Why to use peat? Wise use of peat Conclusions 2

3 Energy mix. Potential primary energy of energy carriers, TWh/y 60,00 50,00 40,00 30,00 20,00 10,00 200,00 150,00 100,00 50,00 Potential primary energy of energy carriers, PJ/y 3 0,00 Oil shale Forest/wood Wind off-shore Wind on shore Solar Biogas Straw Peat Waste Semi-natural Reed Hydroenergy 0,00 Source:

4 Energy mix. Share of energy carriers in energy mix, GWh Hydro Waste Straw, hay, reed Biogas Wind on shore Wind off shore 4 Wood Solar (both with PV and thermal) Peat Oil Shale Source:

5 Potential of peat. 5

6 Potential of peat. Distribution of production sites 6 All together ~ ha & 37 companies Annual average production ~800 thousand tons

7 Potential of peat Peat Reserve, PJ Oil shale reserve, PJ Source: Measured reserve* Indicated reserve* C content Oil shale 1 020,0 milj T 302,6 milj T 350 milj T Peat 153,4 milj T 680,5 milj T 280 milj T 7 * Active reserves only,

8 Why to use peat?. District heating prices in 2012/2013: Location Price, /MWh Fuel Lavassaare 44,68 Peat Pärnu (CHP) 53,29 Wood + Peat Tartu (CHP) 53,35 Wood + Peat Põltsamaa 61,96 Wood Tallinn (inc. CHP) 65,83 Gas, wood, peat Rakvere 71,43 Gas Saue 77,10 Gas Märjamaa 86,69 Shale oil Peat is cheapest indigenous fuel for consumer. Peat fuel is more profitable for the state - 1 ton produced peat generates tax revenue. 8

9 Why to use peat? % of Estonia is covered with peatland ( ~ ha) of witch: ha is accumulating peat ha is emitting CO 2 Peat accumulation rate is 1,2 ton/ha x y i.e. ~ thousand tons of peat is annually accumulated. Comment: Annual production is in average 800 thousand ton i.e. half of Estonian peat production can be considered as renewable. Peat humification rate is 5,5 ton/ha x y i.e. ~4 000 thousand tons of peat is annually decomposed. Peat reserves are widely distributed. Peat production environmental impact is significantly smaller than oil shale mining impact.

10 Wise use of peat. Nature Conservation Development Plan for 2020 (2012) says: It is necessary to rank peatlands disturbed by drainage (inc abandoned cutover sites), to clarify rehabilitation need and order. Further drainage of natural peatlands should be avoided, for peat production should be preferred areas already disturbed by drainage. ~ ha of peatlands are protected. Currently there is ~230 Natura sites related to peatland habitat. 10

11 Wise use of peat. List of perspective peat extraction sites, will be adopted in 2015 or Peatlands affected by drainage or other human activities without no significant conservation value are included in the list of perspective peat extraction sites. No pristine peatlands were included. Currently there are deposits listed with total area of hectares in draft list. Work is still in progress. Preparation of such a list was possible only because of the results of comprehensive studies carried out during last 10 years and careful analyse of the results. To preparation of the list were involved officials of the Ministry of Environment and Environmental Board, peatland scientists, environmentalists, water specialists and industry.

12 Conclusions. Probably only among few Estonia has full and updated inventory of its peatlands and all valuable peatlands are protected. Opening new peat production sites is precisely regulated, disturbed peatlands are preferred for that and licensing procedure goes exclusively trough EIA. Under mentioned circumstances in many cases peat production can be considered as the best way for land rehabilitation, peatland restoration and measure to minimize GHG emissions. If peat is produced from disturbed peatland it should considered CO 2 neutral. 12

13 13 Thank you!.

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