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1 CASE STUDY OF FUEL SWITCH IN THE LUDZA BOILER HOUSE Edgars Vgants director of Ludzas Bio-Enerija Latvia Bioenergy Association Latvian District Heating Association Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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2 Content Introduction Technical solutions Securing of Biomass Operational results New experience Ddifferent biomass impact analise Conclusions Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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3 Boiler house grouping after consumed fuel type Source: LR Ministry of Economics Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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4 Potential of Latvian energy wood 12,6 mill. m 3 c /year 30 TWh/year Forest area: Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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5 Cost comparison of different fuels Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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6 Location Ludza Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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7 LindeksESSENT supported by Dutch Government Municipality of Ludza Ludzas Bio-Energija Heat production 14 MW Supply of wood biomasss Biofuel Light oil Heat energy distribution Heat energy > 29000 MWh/year Investor Heat end users Co-operation partners Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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8 Erection of new boiler house Installation was finished in December 2000. Supplier of boiler house equipment was Dutch company KARA Energy Systems. Building works were performed by local company Valmieras SCO centrs.

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9 Technical solution Diesel boiler 7 MW Wood boiler Transport system Diesel oil Flue gas filter Heat exchangers 2x8 MW Heat meters Fuel tank 8 MW Wood chips Open storage for wood chips 7000 m 3 Wood chips storage with walking floor Network pumps Chimney District heating grid Property of Ludza municipality Property of LBE

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LBE boiler house (Ludza) Lindeks - wood processing (Ludza, 8 km) Verems - plywood production (Rezekne district, 27 km) Nomis - wood processing and forestry (Rezekne district, 45 km) Junions - wood processing (Ludza, 2 km) Ludzas MRS - wood processing and forestry (Ludza district, 20-40 km) Graudi - cleaning of roadsides/under power lines (Ludza district, up to 40 km) Lapegles 2 - forestry (Ludza district, 15 km) Vels 2 - wood processing and forestry (Daugavpils and Kraslava district, up to 120 km) The most of suppliers are situated in 45 km radius Logistics of Biomass 10 Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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11 Securing of biomass Initially agreement on wood fuel supply was concluded between LBE and biggest local wood processing company LINDEKS The contract term is 15 years Payments for the biomass were made according to produced MWh of heat Fuel moisture 40-60% on wet base On 2005 Lindeks reduced amount of output

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12 Securing of biomass Payment for delivered biomass now is made per loose cubic meter. Fuel moisture 20-55% on wet base. For reduction of the risk related to only one supplier, we have agreed that part of biomass is supplied by alternative suppliers the biggest plywood producer Latvijas Finieris and other local companies.

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13 Looking a hed Wood chips from forestry Actual cost ~ 5,5 LVL /m 3 loose Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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14 Wood chips from wood-processing (ashes under 1,5 %) Wood chips from bushes (ashes under 3 %) Wood chips from forestry (ashes under 20 %) Securing of biomass Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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15 Fuel balance Diesel oil, 30 Ls/MWh (43 EUR/MWh) 2%2% 98%98% Estimated Operational results Fact 2008 75% 25% Wood fuel, 9,50 Ls/MWh (13,57 EUR/MWh) Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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16 Use of biomass and diesel fuel Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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17 Optimization of wood fuel consumption Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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18 PositionsInitial situation 2000New situation 2001 Fuel Mazut (heavy oil)Wood fuel, diesel oil Equipment Steam boilers produced in 1967 with a total capacity 55 tons/h New boiler equipment with a total capacity 15 MW Efficiency 65 %85 % Employees 188 Heat price 20,00 Ls/MWh - cost price (28,57 EUR/MWh) 13,67 Ls/MWh tariff (19,53 EUR/MWh) Emissions CO 2 13 000 t/year SO 2 220 t/year SO 2 0,5 t/year (440 x) CO 2 175 t/year (74 x) EUA (2005-2007) 39000 Benefits Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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19 Efficiency versus moisture content Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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20 Fuel costs depending on the ash content of wood chip Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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21 Various types of biomass use Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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22 Utilization factor for biomass boiler May 6-7, 2009, Riga RTU Int. Conference Wood Fuel Standards. Combustion

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23 Operation with no scheduled boiler cleaning Position Chips from forest (ashes under 20 %) Chips from bushes (ashes under 3 %) Chips from wood- processing (ashes under 1,5 %) General indicators Particular indicators, Ls/MWh Wood chips price, excl. Ls/ loose m 3 5,506,007,00-- Wood chips amount, %00100 - Wood chips amount, loose m 3 0043750 - Ash amount, t00167 - Ash transportation expenses, Ls003664 0,116 Wood chip expenses, excl. VAT, Ls00306250 9,72 Diesel fuel expenses, excl. VAT, Ls000 Total expenses, excl. VAT, Ls3099149,83 Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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24 Operation with 3 scheduled boiler cleanings Position Chips from forest (ashes under 20 %) Chips from bushes (ashes under 3 %) Chips from wood- processing (ashes under 1,5 %) General indicators Particular indicators, Ls/MWh Wood chips price, excl. Ls/ loose m 3 5,506,007,00-- Wood chips amount, %203050100- Wood chips amount, loose m 3 9692135002187545067- Ash amount, t49210383678- Ash transportation expenses, Ls1082322611832149170,473 Wood chip expenses, excl. VAT, Ls53306810001531252874319,12 Diesel fuel expenses, excl. VAT, Ls26250 0,83 Total expenses, excl. VAT, Ls32859810,43 Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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25 Specific cost changes depending from wood chip source Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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26 Comparison of heat tariffs Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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27 Patent for an invention A group of authors: RTU VASSI SIA Ludzas Bio-Enerija AS Komforts Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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2011.gada 22., 23. februris, Rga Enertikas politika un klimata aizsardzba Kur atrodamies 20 gadus pc Rio? 28 Flue gas condenser

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29 Assembling of condenser Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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30 Benefits Consumes for 10-20% less fuel More power from boiler Fossil fuel consumption reduces by 150 tons / year GHG emission reductions of 500 tons / year Reduction of hard particle emissions Strengthening of the competitiveness Option of installing similar condensers in other boiler houses Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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31 Heat production from biomass could be feasible and cost-effective In Latvia amount of sustainable wood biomass is enough Cheap fuel dost meen cheaper energy Conclusions Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga

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32 Ludzas Bio-Enerija S. Eizensteina 29, Riga LV-1079 Phone: 67817090; fax: 67817087 E-mail: balteneko@balteneko.lvbalteneko@balteneko.lv Boiler house: Rupniecibas 2b, Ludza LV-5701 Phone: 65707182; fax: 65707181 E-mail: lbe@latnet.lvlbe@latnet.lv www.balteneko.lv Contacts Bioenergy Promotion 2 The Latvian Environmental Investment Fund, October 3, 2012, Riga