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Scientific Engineering Centre “Biomass” Prospects of biomass boiler-houses implementation in urban areas of Ukraine Drozd K., Yelovikova T., Morozova A.
Scientific Engineering Centre “Biomass”
Prospects of biomass boiler-houses implementation in urban areas of Ukraine
Drozd K., Yelovikova T., Morozova A.
Scientific Engineering Centre “BIOMASS”
• Scientific Engineering Centre “Biomass” is a private consulting and engineering company, established in 1998. Staff – 20 employees, 7 possess PhD
• Proposes high-quality consulting in the field of energy production (including from biomass)
• Provides following services: – Preparation of pre-feasibility/feasibility studies– Bioenergy consulting, research and engineering– Selection of commercial equipment for energy generation– JI project identification, consulting including preparation of tender
documents for JI projects (PIN, PDD, Business Plan, etc.)
• The main driving motive of biomass boiler houses construction is a continual increase of natural gas cost.
75.9265.17May 1, 2006� 396 of 30.03.2006
135.84115.96July 1, 2006� 736 of 08.06.2006
60.3052.16January 1, 2006� 1272 of 30.12.2005
47.8241.73February 1, 2004� 1281 of 14.01.2004
For VAT non-payers, $
For VAT payers, $
When it became operative
NERC decree
Gas price change ($/1000 m3)for municipal heat-power engineering enterprises
Predictable price: 130-135$/1000 m3
(included in a budget)
Cost of firewood is about 8-10 $/m3, delivery is 2.38 – 3.17 $/m3 for a distance 25-30 km.
Thus cost of 1m3 of firewood is no more than 12$
Calorific value of 1 m3 of lump wood (0.4m) with moisture 40% is about 5 GJ
1000 m3 of the natural gas has a calorific value = 35 GJ
It means that 1000 m3 of the natural gas = about 7 m3 of wood
Price of 1000 m3 of the natural gas is 135.84 $
Price of 7 m3 of wood is 7*12 = 84 $
To burn wood is about 686/420=1.6 times cheaper than gas!
Why there are no wood-fired boiler houses in Ukrainian district heating system?
• Very low information awareness of representatives of boiler house operators as well as of local government bodies about the opportunities and benefits of RES use and corresponding technologies;
• Very weak financial situation of municipal DH companies;
• Mentality of operators
• Significantly high risks, connected with reliability of wood delivery;
• Current low prices, that leave out all the expenses of boiler house operators for heat energy production.
Positive
• Representatives of rent communal enterprise “Zhytomirteplokommunenergo” on their own made a decision to buy several wood-fired boilers of Ukrainian production and install them at one of their boiler houses. Reason – over-high gas prices.
Would you like a favourable credit to
purchase high performance and
reliable equipment?
Representatives of foreign boiler equipment
Ukrainian boiler house operator
What biomass boilers... I can’t afford installation of preisolated pipes
Hm…
As concerns foreign producers of equipment, very weak financial situation of boiler house operators practically give them no chance.
Associations…
Figures. Equipment cost
Boiler with hydraulic fire grate “Polytechnik” (Austria)
Boiler ����-1500, ��� “Soyuz”, Kovrov plant of boiler-furnace equipment (Russia)
Boiler ��� ()-0,82, ��“Zhytomirrempishchemash”(Ukraine)
140-145 EUR/kW* 40 EUR/kW* 30 EUR/kW
At the site of production, without delivery, assembling, taxes and customs.* - The price includes: smoke sucker, whirler, conveyer screw, fuel feeding system
Figures. Investment costs
Figures. Operational costs
204019121800Electric power for work of the chipper
118361113051108838TOTAL:
360048007200Maintenance
184621735415508Electric power for work of the boiler (grate/screw, pumps, smoke sucker, air blower)
266426642664Allocations (37%)
720072007200Personnel wages (4 pers., 150 EUR/month)
843967912174467Wood fuel (60 UAH/cub.m)
ZhytomirKovrovPolytechnikItem of expenses
Assumptions, taken for the calculation: Operating time – 8000 h/year, electric power price – 30 UAH kop./kWh,Moisture of wood – 40%, 1 incomp. cub. m= 600 kg, operating time of chipper – 1300 h/year
Figures. Boiler house revenueBoiler house operation income is formed only at the expense of produced heat energy sale to consumers. Therefore heat energy tariff (for consumers) is the most important determinating factor boiler house operation profitability.
Positive experienceProject name: Utilization of sunflower husk for steam and power energy production
at the OJSC “Kirovogradoil”
• Project idea: Installation of mini-CHP plant fueled by solid biomass (sunflower husk) :
• - 2 primary husk-fired boilers (steam output - 16 ton/h each unit)• - Steam turbine (2.5 MWe)• - 1 reserve husk-fired boiler (steam output - 16 ton/h)• Total investments: 6.1 mln. EURO
Current situation:• Heat energy is produced by three out-of-date boilers• Power energy is bought from the power network of local energy company
“Kirovogradoblenergo”
197619621971Year of manufacturing
Husk, mazutHusk, mazutHusk, mazutFuel
829084Efficiency, %
102010Capacity, t of steam/h
Boiler #3Boiler #2Boiler #1
Positive experience
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Project name: Utilization of Sunflower Seeds Husk for Heat and Power Production at CJSC Pology Oil-Extraction Plant”
Positive experience
Current situation: two natural gas boilers DKVR 20-23-250 of 20 t/h of steam productivity each and one natural gas DKVR-40-23-350 boiler of 35 t/h of steam productivity. The natural gas boilers efficiency is in the range of 91-93%, and boilers produce about 110-120 thousands of Gcal per year consuming 13-15 millions of natural gas annually.
The main purpose of the project is the construction of the CHP installation at Pology oil-extraction plant with the purpose to provide the enterprise with both heat and electricity produced from utilization of production waste – sunflower seeds husk. Also the project realization will allow solving the problem of sunflower seeds husk utilization.
The project envisages the installation of two boilers DKVr-20-23-350 DV equipped with the furnace suitable for sunflower seeds husk combustion while one natural gas-fired boiler will remain and will be used as the reserve one. New CHP plant will consume 60,500 tons/a of sunflower seeds husk generating 19,864 MWh of electricity annually and 120,000 Gcal/a of heat.
Negative experienceProject name: wood-fired boiler-house construction for heat
and hot water supply of Slavutich CityCurrent situation:• DH system of Slavutich City was constructed in 1987• Three hot water boilers KVGM-50 (heat capacity 50 Gcal/h)• Two hot water boilers DEV-14-10 GM (14 Gcal/h heat output, switched from steam
generating regime in 2004)• Power for boiler-house operation is supplied by two CHP units owned by Joint
Venture “SlavEnergoInvest”
Project idea:• To construct new wood-fired boiler-house• New wood-fired boiler together with already installed CHP units and gas-fired peak boiler
will cover summer heat demands• New boiler-house thermal capacity will be 3-5 MW• Central boiler-house will not be in operation at summer time and its capacity will be
reduced by capacity of new boiler-house at winter time
Now the project is frozen because of wood delivery difficulties and high cost of boiler equipment
Conclusion
• In the absence of state and local support of renewable energy sources use for heat production, the growth of gas prices is the main motive power.
• There is a number of barriers on the path of implementation of wood-fired boiler houses for district heating : low information awareness, unsatisfactory financial situation of operators, lack of Ukrainian boilers with capacity higher than 1 MW, and high price of foreign boilers, lack of experience in fuel supply management for boiler house operation.
• In order to make wood-fired boiler house project more attractive for investments (IRR=25-30%, payback period – 3-4 years), tariff for produced and saled heat energy should be : 110-120 UAH/Gcal – for domestic equipment, and 160 UAH/Gcal– for foreign equipment.
• There is a hope, that enterprise “Zhytomirteplokommunenergo” starts operation of the first wood-fired boilers at one of their boiler houses. - Thanks to Russia and Turkmenistan for their contribution to the development of biotechnologies in Ukraine!
