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

asociacija@biokuras.lt, www.biokuras.lt