Biomass energy in Lithuania:
Current situation, opportunities and
challenges
Baltic Peat Producers Forum 2013
2013.09.4-6, Vilnius
Remigijus Lapinskas
About association “LITBIOMA”
• Lithuanian biomass energy association “Litbioma” was
established on June 4, 2003.
• LITBIOMA is united by 50 members at present
• Association cooperates with:
– Lithuanian association of heat suppliers
– General forestry
– Lithuanian association of forest owners
– Aleksandras’ Stulginskis’ university
• Association was granted an exceptional right to
represent ENplus wood pellet certification system in
Lithuania
About association “LITBIOMA”
We are members of:
European
biomass
association
AEBIOM
PET
Lithuanian
committee
Lithuanian
confederation
of industrialists
Lithuanian
confederation of
renewable energy
resources
European
Pellet
Council
Biofuel potential in LithuaniaEvaluation of biofuel potential in Lithuania, biofuel price prognosis, social benefit
evaluation of biofuel use and State intervention offers necessary for the development
of biofuel usage (2013)
BIOFUEL TYPE POTENTIAL IN 2025
Biofuel from industrial waste 1.627.000 m3
Firewood for energy 1.777.865 m3
Logging waste 845.253 m3
Secondary wood, not forest logging 1.700.000 m3
Biofuel from gray alder logging 650.000 m3
Biofuel from forest young stands 400.000 m3
Biofuel from short turnover plantations 983,580 m3
Biofuel potential from stump wood 644.601 m3
TOTAL: 8.628.299 m3
(1.482.526 tons)
OTHER LOCAL RESOURCES:
If 40% of straw in Lithuania was used for biofuel we would get ~ 440.000 tons.
Municipal waste - ~ 200.000 t
Dark peat for energy production – about 80.000-100.000 t
TOTAL – over million tons each year
Types of biofuel poorly used in
Lithuania at present
Straw pellets
200 000 t/m
(0,9 Twh energy)
Wood pellets
250 000 t/m
(1,25 Twh energy)
Uncounted reserves
• Unused dewatered sludge - ~70 000 t
• In Lithuania there are ~170.000-280.000 ha of unused land
• Biogas is also the way to solve ecological problems
-Preliminary number of projects - 95
-Biogas production - 240 mln. m3/year
-Electricity power about 62 MW
-Heat power about 88 MW
(Source: Lithuanian biogas association)
Part of renewable energy resources in general
fuel balance for centralized heat production
(1997-2012)
Source: Lithuanian association of heat suppliers
*(source – Lithuanian association of heat suppliers)
Dynamics of average prices of natural
gas (with transportation and power
tax) and biofuel (Lt/t) without WAT
Heat prices in Lithuanian cities
2013 August., ct/kWh with VAT
Source: VKEKK
Heat production from biofuel
in CŠT sector
• Current situation - ~ 400 MW
• By 2020 must be installed ~ 600 MW
Investments - ~ 600 million Lt
• Independent heat producers –
what should investment attraction model be like?
Biofuel cogeneration –
electricity production from biofuel
Current situation – 59 MW
LAIE law:
To increase total power in biofuel power stations connected to electricity
network up to 355 MW (2020).
From July 2, 2013:
- Up to 105 MW total power – support via VIAP system
- > 105 MW total power – investment subsidy can be (must be) applied
2014-2020.
However, larger volumes of
biocogeneration are possible:
CŠT system
Maximum heat
demand (2011)
[MWš]
Potential heat power of
cogeneration power plant
[MWš]
Electricity/heat ration of
potential cogeneration power
plant
Electricity production power of
potential cogeneration power
plant
[MWe]
Vilnius 1000,5 400 0.75 360
Kaunas 520,0 208 0.38 78
Klaipėda 334,3 134 0.38 50
Panevėžys 199,2 80 0.38 30
Šiauliai 179,5 72 0.38 27
Alytus 133,5 53 0.38 20
Marijampolė 93,4 37 0.38 14
Druskininkai 72,4 29 0.38 11
Mažeikiai 63,6 25 0.38 10
Utena 55,4 22 0.38 8
Jonava 45,6 18 0.38 7
Plungė 42,9 17 0.38 6
Tauragė 32,8 13 0.38 5
Šilutė 31,3 13 0.38 5
Total: 2804 1121 632
Source: LAIEK, Martynas Nagevičius
Financing, profit, biofuel and heat
price assumptions
• 30% of investments – support from EU structural funds
• 56% of investments – borrowed capital
– 5,0 % annual real interest rate
– Loan is paid out during entire period of power plant service
– Suspended interest payment during construction
• 14% - investments from own capital
– Own capital annual price 10% from own invested capital price
• The price of supplied heat into network - 10 ct/kWh
• Biofuel price:
– Wood chops 512 Lt/t (2012 December data of VKEKK)
– Straw pellets 1000 Lt/t (Poland market prices)
Results (I)
Work under cogeneration mode
only
Additional work under condensation
mode
Tech
nic
al d
ata
Total heat amount consumed by CŠT systems [TWh] 7.46
Installed electricity production power [MWe] 572 632
Amount of electricity power supplied to networks [TWh] 2.71 1.42
Heat amount supplied to networks [TWh] 5.31 0
Supplied heat part from demand 71%
Consumed amount of biofuel [millions t] 0.66 0.27
Total efficiency 104% 46%
Electricity production efficiency 35% 46%
Heat production efficiency 69% 0%
Electricity production power average annual consumption 54%
Surce: LAIEK, Martynas Nagevičius
Work under cogeneration mode
only
Additional work under condensation
mode
Res
ult
s
Total investment (billion. Lt) 4,98
T. sk. EU support: 1,49
Own investments: 0,70
Loans (incl. interest during construction period) 3,15
Cost of biofuel component [ct/kWh] 17.5 18.7
Cost component of expenses for repair and maintenance [ct/kWh] 4.6 0.7
Cost component of expenses for loan servicing [ct/kWh] 7.2
Cost reduction, evaluating income from heat sale [ct/kWh] -19.6
Price component of own capital return [ct/kWh] 2.6
Total- average electricity price during power plant service period[ct/kWh]
12.3 19.4
Results(II)
Source: LAIEK, Martynas Nagevičius
I:\B
ran
din
g\s
kr\
Po
we
rPo
int\S
BI
•18 municipalities
•4 integratedCŠT
systems
•500,000 final
consumers
•About 20 % of all
Danish heat demand
CŠT nuo 1903
DENMARK.
Avedøre cogeneration power plant –biomass usage example in the great energy
Fuel oil storage
CŠT circulation
pumps
Heat accumulators
Coal
feeding
Coal site
QuayBoiler 1 Boiler2 Chimney150 m
Straw
warehouse
Gas turbines
Wood pellet
warehouses
*(source - DONG Energy)
Facts about Avedøre cogeneration power
plant
• Electricity supplied to 1,3 million homes in North Europe
• Central Heating supply to 200.000 homes in Great Kopenhagen
• Electricity (condensation mode): 250 MW + 575 MW (of them 60%
biofuel)
• Cogeneration mode: 215 MW + 495 MW (of them 60% biofuel)
• 157 employees
*(šaltinis- DONG Energy)
Biofuel social – economic benefit
According to international practice,
1 TWh energy ~ 1’000 new work places:
•Identification of resources;
•Scientific research;
•Lumbering;
•Biomass mobilization;
•Biofuel production;
•Biofuel transportation;
•Biofuel storage;
•Bioful burning;
•Production, installation and maintenance of burning
equipment;
•Heat and electricity production from biofuel;
•Heat and electricity supply, customer service.
Benefit of using biomass
• Ecological safety
• Economic benefit
• Social benefit
• Energy security
• Export/import balance
• Lithuanian regional
development
Thank you for attention
Lithuanian biomass energy association “Litbioma”
Ukmergės str. 283B, Vilnius
[email protected], www.biokuras.lt