Wood Energy Market inSERBIA

Current Situation and tendency

Branko Glavonjić, PhD, Associate Professor,brankogl@net.yu

Predrag Sretenović, PhD student

Mr Slavica Petrović, Assistant

Faculty of Forestry Belgrade, Serbia

In the period of 2000-2004. production of firewood was increasing

constantly, while in 2005 decreased as the result of transformation of

Public Enterprises that manage the state owned forests.

Wood Fuel Production in Serbia

Estimated production of

firewood in 2008 is

about 1,6 milion m3 out

of which 55% is from

the state forest.

Wood Fuel Production in SerbiaState and private forest sector produce enough firewood for thenecessaries of domestic population.

Serbia doesn’t import firewoodand small amounts are exported in Austria, Italy and some other European countries.

Firewood is an important energysource, first of all for heating the population in rural areas, as wellas many households in towns.

Wood Fuel Production in SerbiaConsumption of firewood on domestic market in towns is reduced in last few years mainly because of developing

gasification sistem.

Wood is mostly used by rural households. Firewoodis burnt in open fireboxes or inadequate stoves

with poor energy efficiency.

There around 778,000 rural households in Serbiawhich mostly use wood as energy substance for

heating during winter months.

Wood Fuel Production in SerbiaPrivate forest owners produce and sell firewood to consumers by the price of41 EUR/prm including transport.

They also offer additional service of:

Cutting of wood: 3,5 EUR/prmand

Cleaving of wood: 3,5 EUR/prm

Price of firewood including VAT (8%)

on Belgrade’s depots is 49 EUR/prm

including transport up to 54 EUR/prm

including transport and cutting of wood.

> 8 EUR/prm

Wood Fuel Production in Serbia

Price of chopped wood:

48 EUR/prm(Fco Belgrade)

Previous years consumers couldn’t buy chopped

wood in supermarkets like in the developed countries, but now in some of them they can find

this product.

Price: 3,62 EUR/0,03prm

(about 120 EUR/prm)

(Fco Belgrade)

Briquette

Plant for Briquette productionIn august 2008 plant for Briqueteproduction started to work in

Southwest Serbia with theprocessing capacity of 60 tons

sawdaust per day.

Investment is worth about 1

milion EURO and employerswork in three shifts.

Consumption of briquettes in Serbia constantly growing.

There are several plants for Briquette production in Serbia and one of

them, that is located in North-west part of country, produce 20 tons of

Briquettes per day with 30% of soya straw and 70% sawdust.

Briquette

Price of imported Briquettes inone supermarket in Belgrade is2,12 EURO/10kg.

Price of domestically produced Briquettes from sawdust is between

105 - 115 EURO/ton.

Briquette

Boilers of German production for central

heating which can use all kinds of solid fuels

including Briquette can be bought in Belgrade

by the price between 770 – 1200 EURO.

(25kw) (45kw)

The price of domestic produced

boiler for central heating with

40kw power is 1200 EURO.

Pellets

Pellet production started by the end

of 2006 in one company in West part

of Serbia with the annual capacity of

10,000 tons.

Pellets are mainly produced from wood

refuse which becomes from own

production of beech sawn timber. This

company export pellets to Italian market.

PelletsAnimation of Pellets

production In Serbia, there are 4 plants for the production of pellets.

Annual production three of them is about 10,000 t each and the last one, which is located in the East part of Serbia, has capacity 30,000 t.

There are 20 employers who directly work in this large plant and much more people will be engage indirectly.

Also, there are indicatons that this company have intention to open more

plants for pellets production in other parts of Serbia in the future.

First consumers of this product will be heating stations in Belgrade.

Pellets

Households in Serbia do not use pellets for heating at the moment. The reasons are multifold:

-Inadequate promotion of this product and effects achieved by using pellets;

-Stoves and installations using pellets are still very expensive for most of thepopulation.

-There are no strong companies offering adequate boilers and heating systems that use pellets.

PelletsDomestic manufacturer of heating appliance almost twoyears produces stove on pellets which sells on Italianmarket very successful, and in june 2008was presentation for Serbian market.

Price of this stove on domestic market is960 EUR.

Another manufacturer of boilersfor central heating produce one (15–25 kw), which use pelletsand exports it on the EU market. These boilermades 40% of total production of this company.

Price of this boiler is about 1500 EUR but

he is not selling on Serbian market at the moment.

Pellets

All these types of stoves are German

production and they can be bought inBelgrade by the prices between

2700 – 4250 EUR.

Price depends of the type and power

which is between 2,2 up to 9,3 kw.

On delivery customer needs to wait

about three weeks.

CharcoalBrick kiln is made of sludge and brick, and time necessary for building is 2-3 days which first of all depends by the skills of brick maker.

One brick kiln One brick kiln maymaybebeusedusedup to seven years.up to seven years.

Swedish type of charcoal is present at themost producers. Production starts in earlyspring and finishes by the late autumn.

Producers mainly sell charcoal toresataurants, and smaller quantitiesare exported to Cyprus and Greece.

Charcoal

Kočevac, village,500 bricks kiln

The production of charcoal is most

common in East, West and South-

west parts of Serbia.

Mostly large refuse from saw-mills is used for the production of

charcoal.

Manufacture productivity differs from producer to producer. On

average, out of 15 m3 of large refuse 1.9 t of charcoal is obtained.

CharcoalThe price of 1kg charcoal, imported from

Bosnia and Herzegovina in Belgrade’s supermarkets is 0,64 EUR.

The price of 1kg domestically produced

charcoal in Belgrade’s supermarkets is about 0,55 EUR (same price as last year).

Because of the low selling price and

relatively high price of large refuse from

saw-mills and wood, the producers have

small profit which is the reason why the

number of producers is decreasing.

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Drvni briketi

Prirodni gas

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Prirodni gas

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Drvni peleti

Drvni peleti

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Eleks

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Eleks

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Eleks

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Eleks

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Vrste goriva

EUR/kWh

Prices of various types of fuels

Thank you foryour attention!

to be continued: 2009.