Institute of Engineering Thermophysics

1. "Integrative Approaches Towards Sustainability" (Baltic Sea Region sharing knowledge internally, across Europe and worldwide) SHARING, Jurmala, May 11-14, 2005, Latvia BioenergyDevelopment in Ukraine: State of the Art and PerspectivesGeorgiy GeletukhaInstitute of Engineering Thermophysics of National Academy of Sciences of Ukraine (Head of Department)Scientific Engineering Centre Biomass Ltd. (Director) Scientific Engineering Center Biomass Institute of Engineering Thermophysics

2. Plan of presentation: • Biomass for energy has the biggest from RES feasible potential for the most of EU countries and Ukraine. • CHP or heat only production? • Examples of successfully implemented bioenergy projects in Ukraine. • Bioenergy projects are mostly bankable projects. • Biomass for energy is one of the best options for GHG emission reduction. • Ukraine has a huge potential for “concentrated” biomass export to EU. • Conclusion. Scientific Engineering Center Biomass Institute of Engineering Thermophysics

3. Type of renewable energy sources Energy production Total investments in 1997-2010, milliard $ Reduction of СО2 emission by 2010, mill t/yr 1995 2010 mill toe % mill toe % Wind energy 0.35 0.5 6.9 3.8 34.56 72 Hydro energy 26.4 35.5 30.55 16.8 17.16 48 Photovoltaic 0.002 0.003 0.26 0.1 10.8 3 Biomass 44.8 60.2 135 74.2 100.8 255 Geothermal energy 2.5 3.4 5.2 2.9 6 5 Solar thermal collectors 0.26 0.4 4 2.2 28.8 19 TOTAL 74.3 100 182 100 198.12 402 Biomass for energy has the biggest from RES feasible potential for the most of EUand FSU countries. Heat and power production from renewable energy in EU *) *) Energy for the Future: Renewable Sources of Energy. White Paper for a Community Strategy and Action Plan. Bruxelles, 1997, 53 p. Scientific Engineering Center Biomass Institute of Engineering Thermophysics

4. Energy potential of biomass in Ukraine (2001) Scientific Engineering Center Biomass Institute of Engineering Thermophysics

5. The use of RES in 2001-2030 according to Energy Strategy of Ukraine (draft) *) By the end of 2000 total extraction of fossil fuels in Ukraine was 56 mtoe **) By the end of 2000 total primary energy consumption in Ukraine was 140 mtoe Scientific Engineering Center Biomass Institute of Engineering Thermophysics

6. Bioenergy equipment, which may be installed in Ukraineup to 2020 *) including 2478 plants on cattle farms, 295 plants on pig-breeding farms, 130 plants at poultry factories; Scientific Engineering Center Biomass Institute of Engineering Thermophysics

7. CHP or heat only production? Scientific Engineering Center Biomass Institute of Engineering Thermophysics

8. The Netherlands-Ukraine technical assistance project“Energy Saving and CO2 Reduction in the Timber Industry of Ukraine”Supporting agency: Executing agency SENTER of Dutch Ministry of Economic Affairs Project duration: January 1999 – December 2001 The main characteristics of KARA wood fired boiler : Thermal capacity: 1.5 MW Steam output: 2.27 t/h Fuel: wood residues (chips, sawdust, bark) Fuel consumption: 0.7 t/h (moisture 50%) Reduction of CO2: 4000 t/year Saving of natural gas: 1.2 mill m3/year Investment: $ 215 000 Payback period: 3.2 years Drying chamber KARA Net volume of drying wood: 80 m3 Involved parties: SENTER Malin State KARA Energy Systems TNO-MEP SEC Biomass Timber Enterprise Scientific Engineering Center Biomass Institute of Engineering Thermophysics

9. The Netherlands-Ukraine technical assistance project “Energy Saving and CO2 Reduction in the Timber Industry of Ukraine” Supporting agency: Executing agency SENTER of Dutch Ministry of Economic Affairs Project duration: January 1999 – December 2001 The main characteristics of KARA wood fired boiler: Thermal capacity: 5 MW Steam output: 7.8 t/h Steam overpressure: 10 bar Fuel: wood residues Fuel consumption: 2 t/h (moisture 40%) Reserve fuel: natural gas Reduction of CO2: 15000 t/year Saving of natural gas: 4.3 mill m3/year Investment: $ 430 000 Payback period: 1.8 years Involved parties: SENTER ODEK Ukraine KARA Energy Systems TNO-MEP SEC Biomass Scientific Engineering Center Biomass Institute of Engineering Thermophysics

10. Existing wood waste at plywood plant “ODEK Ukraine” Scientific Engineering Center Biomass Institute of Engineering Thermophysics

11. The Danish-Ukraine technical assistance project “ Introduction of a Small–scale Straw-fired Heat Production in Ukraine” Supporting agency: Danish Energy Agency The main characteristics straw-fired boiler: Type RAU 2-1210 Manufacturer PASSAT Energy A/S (Denmark) Thermal capacity 1 MW Water content of storage tank 32 m3 Straw quantity per feeding Approx. 1500 kg (3 big bales) Combustion period Approx. 5 hours Boiler efficiency 81.4% Straw consumption per heating period 1114 t Quantity of substituted gas per heating period: 385 th m3 Investment $ 100 000 Payback period 4.7 years Straw-fired boiler Straw baler “New Holland” RAU 2-1210 Involved parties: The Danish Agricultural Advisory Centre Danish Technological Institute Support Center for Danish Projekt Passat Energi A/S Agrofirma “DiM” Ltd State Committee of Ukraine Scientific Engineering Center “Biomass” DiM Scientific Engineering Center Biomass Institute of Engineering Thermophysics

12. 1 MW straw fired boiler at “Agrofirma DIM” Scientific Engineering Center Biomass Institute of Engineering Thermophysics

13. Loading of straw fired boiler Scientific Engineering Center Biomass Institute of Engineering Thermophysics

14. The Netherlands-Ukraine technical assistance project “CO2 reduction by implementation of a CHP biogas plant in the pig breeding industry” Supporting agency: Executing agency SENTER of Netherlands Ministry of Economic Affairs Project duration: January 2000 – June 2001 The main characteristics of CHP biogas plant : Pig manure flow rate: 80 t/day Total solids contents: 2-3.5 % Digesters volume: 21000 m3 Biogas production: 750 Nm3/day Utilization of biogas: two CHP units (capacity 80 kWel +160 kWth each) CO2 reduction: 7500 t/yr Mineral fertilizers substitution: N - 160 t/yr, P - 90 t/yr, K - 65 t/yr Investment: $ 413 000 Payback period: 8.1 years Involved parties: Executing agency SENTER BTG Biomass technology Group BV Agro-Oven Ltd. Scientific Engineering Center “Biomass” State Committee of Ukraine for Energy Conservation UkrNIIagroproekt Scientific Engineering Center Biomass Institute of Engineering Thermophysics

15. 2×1000 m3 digesters with 80 kWe + 160 kWth CHP units at “Agro-Oven” Ltd, village Elenovka, Dnipropetrovsk oblast’ Scientific Engineering Center Biomass Institute of Engineering Thermophysics

16. EcoLinks Partnership Grants Program “Reduction of Greenhouse Effect through Methane Utilization at Lugansk Landfill” Project duration : February 2002 – February 2003 Technical features : Landfill volume: 2 000 000 m3 Biogas production: 8 000 000 m3/year Calorific value of biogas: 18 MJ/m3 Power plant capacity: 1.5 MW Investment: $1 345 000 ($571 000) CO2 reduction 62000 t/year IRR: 39% (17%) Payback period: 2.0 (4.6) Involved parties : SCS Engineers AOZT“Protos” EcoLinks program SEC “Biomass” Scientific Engineering Center Biomass Institute of Engineering Thermophysics

17. EcoLinks Partnership Grants Program, a United States Agency for International Development program Reduction of Greenhouse Effect through Methane Utilization at Lugansk Landfill January 2003 Three demonstration wells Landfill gas flow – 90 m3/hour CH4 content – 60% Scientific Engineering Center Biomass Institute of Engineering Thermophysics

18. Bioenergy projects are mostly bankable projects Scientific Engineering Center Biomass Institute of Engineering Thermophysics

19. Type of energy production project Reduction of CO2e during 2008-2012, kt CO2e/ MWe Income from JI (under 3$/t CO2e), k$/ MWe Income from JI (under 3$/t CO2e), % of total investments Energy from biomass 26.0-287.0 78.0-861.0 7.8-86.0 Wind power 7.7-32.0 23.1-96.0 2.3-9.6 Hydro power 11.3 33.9 3.4 Geothermal 24.0 72.0 7.2 Co-generation (CHP) 14.8 44.4 4.4 Biomass for energy is one of the best options for GHG emission reduction Typical levels of GHG reduction for different types of energy production projects *) data of EcoSecurities Ltd. Refocus, Jan/Feb 2002. Scientific Engineering Center Biomass Institute of Engineering Thermophysics

20. Parameters of the Ukrainian bioenergy projects Scientific Engineering Center Biomass Institute of Engineering Thermophysics

21. JI Projects developed by SECB in 2004 SEC Biomass plan is to submit 10-20 JI projects in 2005. The nearest ones: 1. “Coal mine methane capture and utilization at Bazhanov mine” 2. “Coal mine methane capture and utilization at Krasnolimanskaya mine” 3. “Coal mine methane capture and utilization at Kirov mine” 4. “District heating system rehabilitation in Rivne Region” Scientific Engineering Center Biomass Institute of Engineering Thermophysics

22. Ukraine has a huge potential for “concentrated” biomass export to EU: ·       Wood, straw and other agricultural residues pellets, briquettes, charcoal; ·       Liquid biomass fuels (rapeseed oil, bioethanol, pyrolysis oil etc); At the moment Ukraine has surplus of biomass and have no bioenergy equipment (and money to build it). Export of biomass to EU countries is a good and practically the only one market chance for Ukraine to reserve money for bioenergy development. The possible schema: ·      Establishment of “National Bioenergy Fund” in Ukraine; ·      Commercial export of biomass to EU; ·      Some share of received money have to be transferred to “National Bioenergy Fund” for support of national bioenergy development.   Scientific Engineering Center Biomass Institute of Engineering Thermophysics

23. Driving forces of bioenergy development in Ukraine • Permanent growth of traditional energy prices. • Possibility to increase energy independence. • Possibility to develop local economy (money goes not to oil and gas exporting countries but remain in the region). • Growing possibilities for biomass export. • Kyoto Protocol process with CO2 emission reduction request and possibilities of CO2 credits. • Permanent strengthening of ecological norms. • Possibility to reduce unemployment. Scientific Engineering Center Biomass Institute of Engineering Thermophysics

24. R&D activities in Bioenergy Laboratory of IET • Underscrew wood-fired boiler (CRDF project, 2003-2005) • Capacity: 100 kW • Efficiency: 85% • Fuel: wood chips, wood sawdust, peat • Twin FB gasifier for sorted MSW (STCU project, 2004-2006). • 3. Straw bales fired boiler (Ministry of Science project, 2004). Scientific Engineering Center Biomass Institute of Engineering Thermophysics

25. Conclusions • Biomass for energy has the biggest from RES feasible potential for Ukraine (up to 10 % of primary energy consumption). • Heat production is more feasible in most cases than CHP or power production. • Bioenergy projects are mostly bankable projects. • Biomass for energy is one of the best options for GHG emission reduction. • Ukraine has a huge potential for biomass export to EU. • Ukraine has all opportunities for fast development of bioenergy sector! Scientific Engineering Center Biomass Institute of Engineering Thermophysics

26. First announcement International Conference on JI Projects in Ukraine “Climate Change and Business” October 3-5, 2005, Kyiv, Ukraine Organized by: • Ministry for Environmental Protection of Ukraine • Institute of Engineering Thermophysics of the National Academy of Sciences of Ukraine • Institute of Engineering Ecology • SEC “BIOMASS” Conference web site:www.biomass.kiev.ua/JIconference

27. Thank you for your attention! For further information please contact: Dr. Georgiy Geletukha Tel/fax: +380 44 456 6365, E-mail: geletukha@biomass.kiev.ua, http://www.biomass.kiev.ua Scientific Engineering Center Biomass Institute of Engineering Thermophysics