climate technologies in ukraine. market penetration study. · 2020-05-31 · 4 tebodin ukraine cfi...

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Tebodin

Tebodin Ukraine CFI

Moskovsky Avenue 16b, floor 4

04073 Kiev

Ukraine

Author: Andriy Balanyuk

- Telephone: +38044812121

- E-mail: [email protected]

August 28, 2015

Order number: 71994

Document number: DR-001

Revision: C

Climate Technologies in Ukraine. Market Penetration Study.

Client: European Bank for Reconstruction and Development

Project: FINTECC Ukraine. Market Penetration Study

mailto:[email protected]

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Climate Technologies in Ukraine. Market Penetration Study

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C 28-08-2015

Market Penetration Study Report

Consultants:

O. Cherinko

M. Donkelaar

M. Pribylova

A. Balanyuk

F. Akhmetshyn

P. Rosen

A. Bilan

A. Nikitin, Director B 22-06-2015

A 27-04-2015

Rev. Date Description Author Checked by

© Copyright Tebodin, 2015

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without

permission of the publisher.

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Table of contents

List of abbreviations 5 Executive Summary 6 1 Introduction and purpose statement 14 2 Methodological note for climate technologies market penetration assessment in Ukraine 16 2.1 Kick-off activities 16 2.2 Available methodological market penetration evaluation techniques and market information 17 2.3 Defining Market Sectors and Sub-Sectors 17 2.4 Climate technologies definition 18 2.5 Best Available Techniques (BAT) in Europe 18 2.6 Current standards in Ukraine 19 2.7 Market penetration analysis in Europe and in Ukraine for the selected climate technologies 20 3 Technology area prioritization 24 3.1 Cogeneration 24 3.1.1 Gas Turbines 26 3.1.2 Gas-fired reciprocating installations 26 3.1.3 Back Pressure Steam Turbines 28 3.1.4 Organic Rankine Cycle 28 3.1.5 Steam Turbine Design Characteristics 29 3.1.6 Steam turbines applications 30 3.2 Heat Recovery 34 3.3 Energy Management 37 3.4 Water Management Systems 39 3.5 Air Cooling Systems 39 4 Current standards in EU 40 4.1 EU Best Available Techniques Reference Documents 40 4.2 EU BATs in Agro industrial sector 41 4.2.1 Cogeneration 41 4.2.2 Heat recovery 42 4.2.3 Energy Management systems, automation and practices 43 4.2.4 Water management systems 44 4.2.5 Air cooling systems (air cooled condensers) 47 4.2.6 Other technologies 47 4.3 EU BATs in Industry 48 4.3.1 Cogeneration 48 4.3.2 Heat recovery 49 4.3.3 Energy Management systems, automation and practices 53 4.3.4 Water management systems: 54 4.3.5 Air cooling systems (air cooled condensers) 56 4.3.6 Other technologies 56 4.4 Examples of BAT Cases in EU (Czech Republic as a reference country) 66 4.4.1 Cogeneration 66 4.4.1.1 Gas-fired (reciprocated) engines 66 4.4.1.2 Steam turbines 68 4.4.1.3 Organic Rankine Cycle (ORC) 71 4.4.2 Heat recovery systems 75 4.4.3 Energy Management Systems, automation and practices 77 4.4.4 Water Management Systems 81 4.4.5 Air cooling systems (air cooled condensers) 85 5 Current standards in Ukraine 86

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5.1 Cogeneration 88 5.2 Heat recovery systems 93 5.3 Energy Management Systems, automation and practicies 94 5.4 Water management systems 95 5.5 Air cooling systems (air cooled condencers) 95 5.6 Identified barriers to climate technology transfer in Ukraine 95 6 Ukraine’s market potential and penetration 99 6.1 Cogeneration market potential and penetration 99 6.2 Heat recovery systems 101 6.3 Energy Management Systems, automation and practicies 101 6.4 Water management systems 105 6.5 Air cooling systems (air cooled condencers) 106 6.6 Summary of penetration and investment potential 108

Attachments

Attachment 1. Climate Technologies EU BATs, penetration and players - Agroindustry

Attachment 2. Descriptions BATs Agroindustry EU

Attachment 3. Climate Technologies EU BATs, penetration and players - Industry

Attachment 4. Descriptions BATs Industry EU

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List of abbreviations

AMS Automated Metering Systems (Automated System for Commercial Accounting of Power Consumption

(ASCAPC)/Automated System of Electric Power Technical Record-Keeping (ASEPTRK)/Automated

Measuring and Information System for Electric Power Fiscal Accounting (AMIS EPFA))

BAT Best Available Technologies

BAU Biomass Association of Ukraine

BREF Best Available Technology Reference Document

CHP Combined Heat and Power

CT Climate Technology

CZK Czech crown (as of 27.08.2015 1 EUR = 27.1 CZK)

EBRD European Bank for Reconstruction and Development

EPWM Electric Power Wholesale Market (Ukraine)

FAO Food and Agriculture Organization of the United Nations

FDI Foreign Direct Investment

FINTECC Finance and Technology Transfer Centre for Climate Change (Programme by EBRD)

GDP Gross Domestic Product

GHG Greenhouse gas

GUE Guidelines for Use of Electricity

HDI Human Development Index

IEA International Energy Agency

IFC International Finance Corporation

LDCPE Local Data Collecting and Processing Equipment

Mt Metric ton

NERC National Energy and Utilities Regulatory Commission (Ukraine)

NG Natural Gas

NREAP National Renewable Energy Action Plan (Ukraine)

ORC Organic Rankine Cycle

PHP Power and Heat Plant

PBP Payback period

WB World Bank

WHRB Waste Heat Recovery Boiler

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Executive Summary

The market penetration analysis is done with aim to gather market evidence of the market penetration of selected basket of

climate technologies in Ukraine through utilizing data from available studies, Consultant’s expertise and market intelligence

from market players such as technology suppliers.

Climate Technologies assessed

Climate technologies (CT) – subject to Market Penetration Study are defined as innovative, low penetrated in Ukrainian

market energy and resource efficiency technologies and practices contributing to reduction of CO2 emissions with big

potential of replication in selected sectors of industry and agroindustry.

The technologies that were prioritized for assessment based on the EBRD/Donor investment priorities and envisaged

EBRD pipeline are presented per the following groups (for details see Chapter 3 of this Report):

1. Co-generation:

Gas engine CHP < 2 MW (piston)

Gas engine CHP > 2 MW < 6 MW (piston)

Organic Rankine Cycle (ORC)

Steam turbine CHP > 2 MW < 6 MW:

Pass-out steam turbine CHP

Back pressure steam turbine CHP

2. Heat recovery:

Low- and Med-temperature (<650ºC)

High-temperature (>650ºC)

3. Management systems, automation and practices

Energy management systems

Advanced automation in drying

4. Water management systems:

Waste water treatment

Reduction of water consumption

5. Air cooling systems (air cooled condensers)

6. Other energy savings technologies and techniques

Market (sub) sectors

Based on the priorities of the EBRD the assignment was focused on the following economic sectors:

Agri-business (including agro and food processing);

Manufacturing and processing industry.

Considering EBRD priorities and anticipated pipeline of projects and importance of subsectors in Ukraine based on brief

market insight (including contribution in terms of resource consumption and CO2 emissions), the following sub-sectors were

defined for the purposes of the Market Penetration Study (given in alphabetical order):

Agroindustry:

Beverages;

Bakeries;

Fat production & oil extraction;

Fruit and vegetable processing

Milk processing;

Sugar mills.

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Industry:

Building materials (cement and dry mixtures, glass, bricks, etc.);

Chemicals (organic and inorganic chemical industry, production of fertilizers, by-product coke industry,

organic synthesis, etc.);

Oil refineries;

Pharmaceuticals;

Plastics and polymers;

Pulp & Paper;

Steel and metals, ferrous and nonferrous metal processing;

Wood working and processing.

In terms of end-users only large and mid-size businesses were considered as target group.

Methodology applied

For selected technology areas the Consultant provided details of a typical technical specification employed in EU and

especially in the benchmark country (Czech Republic, Chapter 4) and Ukraine (Chapter 5) with sector specifics highlights.

For the selected technologies the Best Available Techniques (BAT) Reference Documents (BREFs) of relevant

technologies were studied. In addition, the Consultant prepared a brief BAT technical specification for each of the selected

technologies including functionalities, energy efficiency performance and CO2 reductions benchmarks as well as typical

capital investment outlay required for implementation of the technology together with indicative simple payback.

In this study the main method of market penetration assessment in EU was secondary market research which was to use

data from open sources.

As for Ukraine, in open sources there is a large amount of information about cogeneration, while for the majority of other

technologies assessed the information is scarce. Thus, in parallel to secondary market research, various interviews with

technology providers and suppliers, industry experts and end-users were conducted by the Consultant. The information

was obtained in the form of completed questionnaires, as well as answers on unstructured, open-ended questions.

In order to assess the level of the technology penetration on the EU market, the following levels of application are

determined for each of the proposed technology:

1- ‘introduction of new technology’;

2- ‘increased acceptance of new technology’;

3- ‘growing importance and application of technology’;

4- ‘fully mature technology’

Such classification was done for the purposes of further comparison of penetration level in EU and Ukraine markets.

Considering the potential application of the selected technologies in Ukrainian market, majority of the presented

technologies are classified in the level 3 or 4 on the EU market. Only several highly perspective technologies with

significant energy efficiency and CO2 reduction potential are in the level 1 and 2.

Market penetration in Ukraine was calculated per group of technology and sectors as the ratio of applied cases to the

potential applications based on assumptions of number of sector average end-users that could potentially apply the

technology. Wherever possible the Consultant commented types of the companies identified tend to be faster in

implementation of BAT technologies and type of financing utilized for these technologies.

Based on the inputs of the tasks described above the Consultant further quantified the implementation potential of selected

climate technologies across selected agroindustry and industry sectors in Ukraine (Chapter 6) and presented results by

each sector as well as an aggregated total.

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CT market penetration and potential in Ukraine

Co-generation

As of 01 March 2015 in Ukraine it was installed 238 CHP units with the total capacity about 1 GWe, which is about 1.8% of

the total country’s installed capacity.

Of the total amount of CHP installations gas fired (reciprocal) equipment takes the lion’s share of the market (~190). Of the

total number of installed gas fired (reciprocating) units, half capacities are using natural gas, others – biogas, landfill gas

and coal bed methane.

Among the pre-defined (sub) sectors the most important for the installation of biogas-based CHP are the sugar industry,

breweries and distilleries. Despite the high share of enterprises with installed equipment for the biogas production

cogeneration is used only on a few of them.

The market penetration per sector was determined as share of installed capacity from potential capacity, with taking into

account the typical / average installed capacity for typical representative of the sector and the number of enterprises. The

cost per 1 kWe produced by gas fired CHP is, in average, about € 1,000.

Existed until recently in Ukraine ‘green’ tariff for the electricity sale to the network, made investments in CHP installations

attractive and allowed to reach a payback period of 1-2 years.

Together with natural gas fired CHP units, the investment potential into cogeneration based on reciprocating equipment in

defined sectors is estimated at € 4.1 billion.

Gas fired CHP equipment level of penetration and investment potential

(Sub)Sector Total installed capacity, MWe

Penetration level (UA)

Total potential capacity, MWe

Investment potential, million euro

Agroindustry

Milk Processing 2.16 <1% 335 335

Distillery 2.28 5% 42 42

Oil & Fat 9.56 2% 395 395

Snacks 0.13

Beverages 14.98 6% 235 235

Sugar 4.25 5% 81 81

Industry

Chemicals 1.80 <1% 338 338

Glass 2.50 19% 11 11

Machine build 12.90 1% 1,165 1,165

Pulp & paper 6.61 20% 26 26

Mining 94.15 8% 1,039 1,039

Oil&Gas 34.15 8% 417 417

Grand Total 185.48 4,083 4,083

Due to higher capacity and necessity of steam supply, steam turbines have a narrower field of applicability compared to

gas fired reciprocating installations. Steam turbines of low capacity (<2 MWe) are not widely used in Ukraine only a few

cases is recorded - on oil extraction plants. There is no information available about ORC units installed in Ukraine. The cost

per 1kWe produced by steam turbine varies between € 160 and € 250. Payback period varies from 3 to 4 years. The total

investment potential in Ukraine is estimated at € 1.9 billion.

(Back Pressure) Steam Turbines level of penetration and investment potential

(Sub)Sector Total installed, MWe


Total potential capacity, MW


Agroindustry

Oil & Fat 14.20 <2% 500 125

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(Sub)Sector Total installed, MWe




Industry

Chemicals 6.00 <1% 3,396 543

Metallurgy 56.00 6% 877 140

Plastics & polymers 12.00 1% 1,470 235

Pulp & paper 6.00 <2% 324 52

Mining 12.00 <1% 4,752 760

Grand Total 106.20 11,319 1,856

For Heat Recovery mostly tailor-made equipment is used rather than standard one.

In general, it cannot be said that the individual projects on waste heat recovery are always comparable, so the total amount

of heat recovery installation in Ukraine is difficult to estimate. The differences are mainly in the layout configuration of

source, consumption and method of implementation. So market penetration estimation is based mainly on subjective

opinion of market players.

Due to differences in heat recuperation techniques (“flue gas / water”, “flue gas / steam”, “flue gas / air”), the unification

issue is a problem which is difficult to resolve.

Specific investments and payback period is estimated by market players as:

Technology Investments, € / kW PBP, years

flue gas / water 250 - 340 0.3- 0.6

flue gas / steam 350 - 540 0.9- 1.9

flue gas / air 300 - 420 0.8- 1.8

disposal systems with source temperature 60 -: - 70 ° C 850 – 1,230 1.3 - 3.6

The main (sub)-sectors of new technologies applications in Ukraine so far were:

Metallurgy (metallurgical furnaces)

Cement industry (clinker kilns)

By estimation of market players, the market for heat recovery from steam and hot water in all sectors, where they are

involved into the process flow, is developed at 83 - 91%.

With the reference to EU experience, sector of construction materials production (~3,500 enterprises) has big potential for

implementation of modern heat recovery techniques, being currently mastered at 0-1%.

Special attention is to be paid to bakery sector (>2,000 enterprises), where in recent years a number of heat utilization

related modernizations have been realized, still the penetration level in the sector is estimated by market experts at 1.0-

1.5%.

Consultant suggests to still considering this group of technologies as eligible for the program, however, specific indicators

related to technology is difficult to benchmark, since they depend on each specific case.

Energy Management Systems

According to market player data, Automated Metering Systems (AMS) cover approximately 75% of industrial enterprises.

However, merely 30% of enterprises use the installed AMSs to analyse energy consumption and take energy saving

measures. For the purpose of investment potential evaluation large (LE), middle-size (ME) and small enterprises (SE) were

analysed separately with taking into account different numbers of points for control.

EMS investment potential in Ukraine

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(Sub)Sector Market volume, ‘000 EUR

LE ME SE Total

Agroindustry

Beverages 193 749 6,226 7,168

Bakeries 220 1,607 12,583 14,410

Milk processing 51 629 3,713 4,393

Oil extraction, Fat production 114 683 4,031 4,828

Sugar mills 9 72 413 494

Industry

Building materials (cement and dry mixtures, glass, bricks etc.) 946 4,829 27,305 33,080

Basic chemicals, plastics and polymers, fertilizers 184 797 4,509 5,490

Other chemicals 467 2,018 11,410 13,895

Pulp & Paper 300 156 8,468 8,924

Steel and metals, metal works 7,019 12,852 62,292 82,163

Wood working and processing 811 4,533 25,636 30,980

Pharmaceuticals and Medical equipment 578 305 1 972 2,855

Oil & Gas

Extraction (gas, mining, etc.) 1,048 2,585 15,251 18,884

Oil refineries 459 194 1,145 1,798

Total 12,399 32,009 184,954 229,362

At the average penetration of 23%, the number of potential consumers of energy consumption technical control and

metering equipment is estimated at 10,000, while the total number of metering points is about 175 thousand. In monetary

equivalent, the estimated investment potential for energy management systems in Ukraine can be estimated at € 230

million.

Water Management Systems

Water consumption minimization, optimization and recycling measures and technologies are integrated in production and

support processes, thus it is difficult to compare them and their effectiveness. The incentives for introduction of water

minimization and recycling are increasing water and energy cost.

Waste water treatment technologies are more standardized, although each water treatment process has to be designed

and adjusted to the treated water pollution and load. There are legal requirements for waste water treatment and also there

are incentives for minimization of discharging effluents in the form of payments for its volume and pollution.

A benchmark of the potential market could be based on market penetration estimated for the Czech Republic.

Consultant suggests to still considering this group of technologies as eligible for the program, however, specific indicators

related to technology is difficult to benchmark, since they depend on each specific case.

Air cooling systems

Air cooling condensers are mainly part of complex refrigeration and air-conditioning equipment installed in dairies,

bakeries, beverages producing and meat processing plants, temperature controlled warehouses. Industrial applications are

reported for printing sector and polymers production.

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Air cooling condensers could be effectively applied under the total capacity of the heat transfer up to 2-3 MW. Under the

larger total heat transfer capacity the cooling water tower should be applied – in case of large enterprises greenfield

construction.

Application of air cooling condensers itself does not lead to energy savings. Energy saving is possible, e.g., under the use

variable speed fans in coolers.

Market information in open sources is scarce, so the market penetration can be assessed based on estimates of market

players.

Most Ukrainian suppliers and assemblers use equipment manufactured by Alfa Laval, Gunter, and SPR.

The total capacity of air cooling condensers installed in Ukraine is estimated at 92 MW.

Air cooling systems potential in Ukraine

(Sub)Sector Total installed capacity, MW




Agroindustry

Bakery 0.27 <1% 204 10.41

Beverages (water, beer*) 11.03 55% 9 0.46

Distillery 3.13 12% 24 1.45

Vinery 1.82 67% 1 0.05

Cold storage 7.59 3% 232 14.41

Confectionery 3.77 <3% 137 8.23

Oil & Fat 1.87 1% 176 10.54

Meat processing 41.77 11% 267 16.02

Fish processing 0.87 <7% 12 0.83

Fruit & Vegetables processing 0.43 1% 53 2.71

Milk processing 7.41 8% 85 5.08

Industry

Metal processing 0.97 1% 101 5.13

Pharma 2.22 44% 3 0.19

Plastics & polymers 8.73 32% 18 1.10

Printing 0.30 <1% 96 6.64

Grand Total 92.16 1,418 83.22

The total investment potential is estimated at € 83 million.

Summary of penetration and investment potential

Different Climate Technologies have different levels of penetration in the Ukrainian market. Also there is a significant

difference in the level of penetration of the selected CT between the different market sectors.

The high penetration level of heat recovery technologies in some sectors (83-91%) doesn’t reflect the necessity of

modernization (e.g. sugar production, metallurgy, pulp & paper, oil & gas). Taking into account that waste heat utilization is

integrated in production, modernization will create the demand on new heat recovery technologies implementation.

EU benchmark and key indicators for CT implementation in Ukraine

Climate Technology

PBP EU,

years

PBP UA,

years

Penetra-tion EU**

Penetra-tion UA

Technology related CO2 reduction,

t/MWh

CO2 reduction potential, mio t/year

Invest-ment

potential, bn euro

1. Co-generation:

Gas engine CHP < 2 MW 6 - 10 1 - 2* 3 1-20%(3) 0.97 8.77 1.15

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Climate Technology

PBP EU,

years

PBP UA,

years

Penetra-tion EU**

Penetra-tion UA


t/MWh


Invest-ment

potential, bn euro

Gas engine CHP > 2 MW < 6 MW

6 - 10 1 - 2* 3 7% (3) 0.99 22.92 2.94


7 - 10 2 - 4 2 n/a 1.17 n/a n/a

Steam turbine CHP > 2 MW < 6 MW

7 - 10 3 - 4 3 1 - 6%

(3) 1.17 104.41 1.86

2. Heat recovery 0.5 - 10 < 4 2 - 3 <1%

(except boilers)

effect is present

n/a n/a


1 - 4 n/a 2 - 3 22.5%

(1) effect is present

n/a 0.23

4. Water management systems: 1 - 6 n/a 2 - 3 - 4 low (1) not relevant - n/a


3 1 - 67%

(2-3) not relevant - 0.08

Total 136.10 6.25

* - For electricity sellers, depending on feed in tariff

** - Penetration legend: 1-‘introduction of new technology’; 2-‘increased acceptance of new technology’; 3-‘growing importance and application of technology’; 4-‘fully mature technology’

The total assessed investment potential for the eligible technologies is estimated at € 6.25 billion. At that, the CO2

countable reduction is estimated at 136 million tons per year, which means invested € 44 will reduce CO2 emission by

1 Mt/y.

Barriers to CT transfer in Ukraine

Based on Eco questionnaire the Consultant may summarize own and interviewed market players’ vision as of main barriers

and motivators for climate technologies penetration (for details see Section 5.6):

Barriers and motivations The most common answer The next most frequently mentioned

The third leading cause

Obstacles stopping compa-nies or organizations from investing in or working with energy efficiency and renewable energy

Economic and financial (e.g. difficulty obtaining loans, high cost of technology, uncertain financial environ-ment)

Policy/legal/regulatory (e.g. unstable and uncertain policies, problems in getting clearances, import taxations and certification require-ments)

Capacity (e.g. lack of skilled personnel to manage more complex technologies, inadequate training to identify and implement technologies, lack of service providers)

Economic and financial obstacles to investment or involvement with energy efficiency and renewable energy technology

Uncertain financial and economic environment (e.g. electricity tariffs, inflation rate, currency exchange rate)

Difficult to obtain loans with terms acceptable for the type of investment

High capital cost of the technologies

The top market obstacle to investment or involvement

Unstable economic situation Economy of scale difficult / impossible to be achieved

Lack of market transparency (e.g. What products,

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Barriers and motivations The most common answer The next most frequently mentioned

The third leading cause

with energy efficiency and renewable energy technology

services are available and at what price).

The top policy/legal/regulatory obstacle to investment or involvement with energy efficiency and renewable energy technology

Corruption Unstable and uncertain policies

Insufficient enforcement of regulations

The top capacity obstacle to investment or involvement with energy efficiency and renewable energy technology

Lack of internal capacity to identify opportunities

Lack of service and maintenance specialists

Lack of skilled personnel for preparing projects

The top information and awareness obstacle to invest-ment or involvement with energy efficiency and renewable energy technology

Poor or lack of information about costs and benefits of technologies

Insufficient demonstration of technology in the country

Lack of agencies, organiza-tions or sources to provide information

The top motivator to invest in energy efficiency and/or renewable energy in Ukraine right now

Reduction of operational costs (energy costs, carbon tax)

Energy security Existing legal and regulatory requirements (green tariff)

What would most motivate your company to invest in energy efficiency and/or renewable energy technologies

Operational savings potential

Affordability of technology Legal and regulatory requirements

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1 Introduction and purpose statement

This market Penetration Study Report (the ‘Report’) is elaborated by CFI ‘Tebodin Ukraine’ (Member of Bilfinger Group) in

partnership with ENVIROS, s.r.o. (Member of ENVIROS Group) (together to be referred to as the ‘Consultant’) based on

the Contract C30736/GISF-2015 -01-01/03 for FINTECC TC Program – Market Penetration of climate Technologies in

Ukraine dated 19 February 2015.

In the Bank's region, the number of investments into climate technologies and techniques remains low to date as a result of

underdeveloped supply chains, low awareness levels about the related needs and benefits, lack of technical expertise for

appraisal and risk assessment; lack of implementation capacity, regulatory uncertainties on energy and carbon pricing,

high perceived risk and upfront cost associated with the implementation of such technologies. Companies, if not

incentivised to make investments, delay making strategic decisions and investments and opt for sub-optimal solutions,

thereby locking into continuous inefficiencies. This experience has been particularly pronounced in the region over recent

years. In Ukraine situation is aggravated by current political and economic instability.

The EBRD Finance and Technology Transfer Centre for Climate Change (FINTECC) is a programme that helps companies

in eligible countries to implement innovative climate technologies and create a body of knowledge that can open up market

opportunities for e.g. creating new business models.

The beneficiaries of FINTECC are clients of the EBRD investing into climate technologies with low market penetration in

their respective countries and sectors. The programme offers technical assistance (climate technology audits), as well as

incentive grants for companies to introduce eligible technologies. The grants are available to the companies as a

complement to EBRD financing. In addition to the direct investment support, the Programme anticipates a comprehensive

Policy Dialogue and Knowledge Management aiming at:

Development of methodologies for improving availability and consistency of information on status of climate

technology market as well as guidelines for improving climate resilience of enterprises;

Visibility and knowledge sharing activities to disseminate best practice, and to provide capacity building to policy

makers, local experts and private enterprises;

Policy and regulatory support work, to assist the governments in the host countries to improve existing legislative

frameworks and create enabling environments for the adoption of climate technologies. The FINTECC

Programme in the host countries is funded by the Global Environment Facility (GEF) and the EBRD Shareholder

Special Fund (SSF).

The FINTECC activities are coordinated with other Regional Development Banks as well as with the Climate Technology

Centre and Network and are being delivered in partnership with the International Energy Agency (IEA) and Food and

Agriculture Organization of the United Nations (FAO). FINTECC Ukraine will benefit from the outputs of the activities jointly

developed by FAO and IEA.

A recent study (World Bank, 2014) of 500 companies in the industrial and commercial sectors in Ukraine has revealed that

financial barriers (such as high upfront costs, lack of capital, and long pay back), institutional barriers, knowledge gap, and

technical barriers are the strongest barriers to deployment of energy efficiency technologies. In addition, recently organized

EBRD event for dairy sector in Ukraine highlighted in particular the need:

to address regulatory constraints and complexities associated with permitting procedures;

to address absorption capacities of local businesses;

to offer broad and flexible technical assistance, not one-fit-all as the gaps for individual companies varies.

Experience also shows that underdeveloped supply chains with limited competition result in higher capital and upfront

costs, and longer paybacks thus affecting decision making and perceived risk of investments by companies. As per the

EBRD Transition report 2014, lack of competition will also limit productivity growth and keep firms active in the climate

technology supply chains stuck in low-productivity equilibrium.

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Given the success of the FINTECC pilot in the eligible countries and the clear technology gap in Ukraine, the Bank is

working on FINTECC Programme roll-out to other geographies, starting with the introduction of FINTECC to Ukraine in

2015. It is envisaged that the extension of FINTECC to Ukraine is going to be funded by the Global Environment Facility

and the Neighbourhood Investment Facility (who provided their initial approvals), and will be operational by mid-2015.

To facilitate the preparation of the full implementation proposal for the Global Environment Facility and the Neighbourhood

Investment Facility the Bank has undertaken a series of activities to inform the final design of the Programme in Ukraine,

ensuring that the proposal reflects needs of the businesses in Ukraine and mitigates the risk of low uptake once the

Programme is launched including Market Penetration Study for climate technologies.

The overall aim of this Market Penetration Study is to provide information to the Bank on the market penetration of selected

technologies in the context of Ukraine in order to inform the design and implementation of FINTECC in Ukraine to cover the

following main Tasks:

Task 1: Methodological note for market penetration assessment

Task 2: Technology area prioritization

Task 3: Current standards in the country and BAT

Task 4: Market potential, penetration and benchmarking

It should be mentioned that the Consultant acted in the framework of tight timeframe and broad stated assignment that was

rather challenging. The Consultant thanks the Bank team and consultants of other related activities for the preparation of

FINTECC Programme for the constructive cooperation during the project.

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2 Methodological note for climate technologies market penetration assessment in Ukraine

A summarised methodological note for climate technology market penetration (a general approach for how the market

penetration was assessed and quantified) is given below.

To assess the market penetration of the climate technologies in Ukraine a series of activities were undertaken by the

Consultant in the course of the assignment that forms methodological approach to the Market Penetration Study:

1. Kick-off activities

2. Desk top study of available methodological market penetration evaluation techniques and market information

(including statistics and analytical reports)

3. Defining focus market sectors and sub-sectors

4. Defining the basket of climate technologies

5. Describing Best Available Techniques (BAT) in EU (with reference to BREFs and commenting application cases

in the selected EU countries) under selected basket of climate technologies

6. Describing current standard in Ukraine under selected basket of climate technologies with comparison to EU

practice and technologies prioritization per sectors

7. Performing of market penetration analysis in benchmarking countries and in Ukraine for the selected climate

technologies, including interviews with technology providers and suppliers, industry experts and end-users and

analysis of barriers and motivators for the selected climate technologies penetration.

Methodological approach is commented in more detail in Sub-Sections below.

2.1 Kick-off activities

The following kick-off activities were performed by the Consultant at the initial stage of the assignment:

• Participation in Round table ‘FINTECC in Ukraine’ organized by the EBRD on 10/02/2015 to have an insight into

Programme aims and developments, introduction to EBRD team under Programme and networking with the local

market players-participants of the event.

• Meeting with EBRD FINTECC and Eco Ltd teams on 11/02/2015 to specify EBRD/Donor priorities for shaping

product under FINTECC Programme under two main envisaged components being 1) financial incentives for end-

users of climate technologies and 2) technical assistance to equipment/ technologies manufacturers and suppliers

(local and international) and to secure input for EBRD Proposal to sponsor of FINTECC (GEF) being prepared by

Eco Ltd.

• Initiating of obtaining the following input from EBRD:

Provision of deliverables requirements and sharing of available studies related to the assignment.

Review of the initial list of pre-selected industrial and agro industrial sectors and climate technologies basket.

Inputs from the consultant responsible for elaboration of the EBRD FINTECC proposal to programme sponsor

(GEF) (Eco Ltd.).

• Coordination activities between the Consultant and consultant focused on value chain analysis for climate

technologies (Larive) with facilitation from the EBRD site in order to:

Unify climate technologies that are covered by both studies;

Ensure that the specification of the technologies for each of the assignments is close;

Discussion of possibility that both assignments use the same reference country(ies) for the purpose of

benchmarking;

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Ensure that contacting third parties (market players and experts) is done in a coordinated manner.

• Market insights for Ukraine and EU (after the example of Czech Republic) to identify market data availability

including BATs to define market sectors.

2.2 Available methodological market penetration evaluation techniques and market information

The Consultant performed search, collection and analysis of available methodological market penetration evaluation

techniques presented in the following relevant studies and guidelines (given below in chronological order):

UKEEP: Survey of the Ukrainian Market for Sustainable Energy Technologies, March 2014.

ENSI: Built Environment Sustainable Energy Market Review; Sustainable Energy Toolset 2, June 2012

UNEP RISO Centre. TNA Guidebook Series: Overcoming Barriers to the Transfer and Diffusion of Climate

Technologies, January 2012.

MWH: Identification of Energy Efficiency Opportunities at Retail Outlets in Ukraine and EE Penetration Rate

in Other Neighbouring Countries, August 2011

NREL: Market Penetration of New Energy Technologies, February 1993.

The Consultant also used open source market information (including statistics and analytical reports) reference to which is

given under specific Report Chapters.

2.3 Defining Market Sectors and Sub-Sectors

Based on the priorities of the EBRD the assignment was focused on the following economic sectors:

Agri-business (including agro and food processing);

Manufacturing and processing industry.

Considering EBRD priorities and anticipated pipeline of projects and importance of subsectors in Ukraine based on brief

market insight (including contribution in terms of resource consumption and CO2 emissions), the following sub-sectors

were defined for the purposes of the Market Penetration Study (given in alphabetical order):

Agroindustry:

Beverages;

Bakeries;

Fat production & oil extraction;

Fruit and vegetable processing

Milk processing;

Sugar mills.

Industry:

Building materials (cement and dry mixtures, glass, bricks, etc.);

Chemicals (organic and inorganic chemical industry, production of fertilizers, by-product coke industry,

organic synthesis, etc.);

Oil refineries;

Pharmaceuticals;

Plastics and polymers;

Pulp & Paper;

Steel and metals, ferrous and nonferrous metal processing;

Wood working and processing.

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In terms of end-users only large businesses were considered as target group.

2.4 Climate technologies definition

Climate technologies – subject to Market Penetration Study are defined as innovative, low penetrated in Ukrainian market

energy and resource efficiency technologies and practices contributing to reduction of CO2 emissions with big potential of

replication in selected sectors of industry and agroindustry.

According to the mentioned criteria the following basket of climate technologies was defined for the purposes of Market

Penetration Study:

1. Co-generation:

Gas engine CHP < 2 MW (reciprocal)

Gas engine CHP > 2 MW < 6 MW (reciprocal)

Steam turbine CHP > 2 MW < 6 MW:

Pass-out steam turbine CHP

Back pressure steam turbine CHP


2. Heat recovery:

Low- and Med-temperature (<650ºC)

High-temperature (>650ºC)



Advanced automation in drying

4. Water management systems:

Waste water treatment

Reduction of water consumption


2.5 Best Available Techniques (BAT) in Europe

Selected climate technologies were first subject of technical specification according to EU BATs. The output data are

summarising the typical technical specifications including functionality, energy efficiency and CO2 reduction indicators,

typical capital investment outlay required for implementation and payback period (PBP).

For the technical specifications and reference indicators the Consultant applied the following main documents and

standards as listed below but not limited to:

1. EU Best Available Techniques Reference Documents (given below in alphabetical order):

BREF Common Waste Water and Waste Gas Treatment/ Management Systems in the Chemical Sector

Final Draft (2014)

BREF Non-Ferrous Metals Industries. Final Draft (2014)

BREF Polymers (2007)

BREF Ceramic Manufacturing Industry (2007)

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BREF Energy Efficiency (2009)

BREF Ferrous Metals Processing Industry (2001)

BREF Food, Drink and Milk Industries (2006)

BREF Glass (2013)

BREF Industrial Cooling Systems (2001)

BREF Intensive Rearing of Pigs and Poultry (2003)

BREF Iron and Steel Production (2012)

BREF Large Combustion Plants (2006)

BREF Large volume inorganic chemicals – Ammonia, Acids, Fertilizers (2007)

BREF Large Volume Inorganic Chemicals – Solids and other industry (2007)

BREF Large Volume Organic Chemicals Draft 1 (2014)

BREF Organic fine chemicals (2006)

BREF Production of Cement, Lime and Magnesium Oxide (2013)

BREF Production of Specialty Inorganic Chemicals (2007)

BREF Production of Wood–based Panels (final draft, 2014)

BREF Pulp and paper (2013)

BREF Refining of Mineral oil and gas (2015)

2. Definition of High Efficiency cogeneration (EU Directive 2012/27/EU and 2004/8/EC, http://eur-

lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32012L0027

3. ISO 50001 Standard for Energy Management.

Based on data availability and representativeness benchmark the following EU countries advanced in the deployment of

assessed technology and at the same time comparable to Ukraine were chosen: Czech Republic and The Netherlands.

Where applicable and feasible the Consultant provided samples of process components where selected technologies are

applicable based on the criteria of availability of BAT data.

2.6 Current standards in Ukraine

Next step was evaluation of application selected climate technologies employed in Ukraine versus the technical

specification of BAT in EU. Selected climate technologies specified according to EU BATs were subject of identification as

for their applicability in Ukraine and current standards in Ukraine.

As such, there are no specific standards as for climate technologies in Ukraine. However, there are requirements for e.g.

cogeneration plants, whose owners would like to sell electricity and heat in the network (Law of Ukraine ‘On combined heat

and power generation (cogeneration) and waste energy potential’, #2509-15, revision dd. 02.03.2014), as well as the

procedure for the establishment of such facilities (Procedure of CHP qualification, enacted by Order of CMU #627 dated

12.06.2013).

Consultant used information received from market players – equipment suppliers:

Sinapse (GE Jenbacher equipment, including CHP), www.sinapse.ua ;

Zeppelin (Caterpillar), www.power-ua.com ;

GES (MWM CHP equipment), www.ges-ukraine.com ;

Siemens (back pressure steam turbines, ORC), www.siemens.com ;

Küttner (heat exchangers), www.kuettner.com ;

Teploenergoresurs (design, manufacturing, supply, construction, installation, commissioning, maintenance of

power equipment, incl. process exhaust gases heat recycling equipment), http://ter.vn.ua;

Alfa Laval (heat exchangers, air cooled condensers, various applications for food and pharma industry),

www.alfalaval.com.ua ;

Landis-Gyr (metering solutions), www.landisgyr.eu ;

ЕМН Metering GmbH & Co KG (automated electricity, heat, gas metering systems), http://emh.com.ua ;

http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32012L0027


http://www.sinapse.ua/

http://www.power-ua.com/

http://www.ges-ukraine.com/

http://www.siemens.com/

http://www.kuettner.com/

http://ter.vn.ua/

http://www.alfalaval.com.ua/

http://www.landisgyr.eu/

http://emh.com.ua/

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Elster-Metronika (technical solutions in the field of smart grids and energy management),

http://www.elstersolutions.com ;

SRI Energy (energy consulting, testing, and improvements), www.sri-energy.com

ES Engineering (complex services on design, supply, installation of thermal engineering systems), www.ese.ua)

as well as information from market regulators, as indicated below but not limited to:

List of cogeneration installations which meet the qualification requirements (as of 05.01.2015, State Energy

Efficiency Service of Ukraine, http://saee.gov.ua/sites/default/files/documents/perelikKU_05012015.doc)

Register of power producers from alternative sources (as of 01.03.2015, NERC,

http://www3.nerc.gov.ua/?id=5701)

‘Green’ tariffs for electricity generated by the power plants that use alternative energy sources (Resolutions by

NERC)

The output data are summarising the typical technical specifications including functionality, energy efficiency and CO2

reduction indicators, typical capital investment outlay required for implementation and payback period (PBP). Technologies

are given with comparison to EU practice and with prioritization per applicable sub-sectors.

2.7 Market penetration analysis in Europe and in Ukraine for the selected climate technologies

Market penetration analysis in Europe and in Ukraine for the selected climate technologies and analysis of barriers and

motivators for the selected climate technologies penetration were aimed at gathering market evidences of the level of

market penetration in Ukraine of the selected basket of technologies, utilizing data from available studies, Consultant’s

expertise and market intelligence from market players including technology suppliers and potential end-users.

A wide selection of techniques is essential for analysts challenged with forecasting the market penetration of new

technologies1. These technologies are in various stages of development and have varying amounts of data available about

them. For example, some technologies are so new or are evolving so rapidly that much data about them are lacking. In

these cases, techniques demanding less data and resources should be used. Other technologies have a longer track

record so more quality data are available. To obtain the most statistically significant prediction, the most sophisticated

method that fits the data available should be used.

Some prediction methods are more effective than others at different developmental stages of new technologies. Generally,

as the new technology matures, the amount of data about that technology increases, allowing use of more sophisticated

data-demanding methods that require more resources for analysis.

1 Market Penetration of New Energy Technologies, by Daniel J. Packey, National Renewable Energy Laboratory, Colorado, USA, 1993

http://www.elstersolutions.com/

http://www.sri-energy.com/

http://www.ese.ua/

http://saee.gov.ua/sites/default/files/documents/perelikKU_05012015.doc

http://www3.nerc.gov.ua/?id=5701

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Figure 2.1. Some prediction methods are more effective that others at different developmental stages of new

technologies

From the list of selected technologies different climate technologies have different market penetration in Ukraine, but most

of them (except for cogeneration group) are assessed as being at the initial development stages (levels 1 or 2) and the

data on the technology implementation are limited or even lacking.

The vast majority of market survey methods fit into one of six categories: (1) secondary research, (2) surveys, (3) focus

groups, (4) interviews, (5) observation, or (6) experiments/field trials2,3

.

In this study the main method of market penetration assessment in EU was secondary market research which was to use

data from open sources.

The Consultant first introduced the classification of ‘generally applied’ and ‘innovative’ (including listed in BREFs). Next

step was to identify the level of penetration of the technology on EU market with application of the following levels:

1- ‘introduction of new technology’;

2- ‘increased acceptance of new technology’;

3- ‘growing importance and application of technology’;

4- ‘fully mature technology’

Such classification is done for the purposes of further comparison of penetration level in EU and Ukraine markets.

As for Ukraine, in open sources there is a large amount of information about cogeneration, while for the majority of other

technologies assessed the information is scarce. Thus, in parallel to secondary market research, various interviews with

potential stakeholders, including end-users, suppliers and manufacturers, engineering companies, teams of other IFI

projects implementing energy/ resource efficiency projects and climate initiatives in Ukraine were conducted by the

Consultant. The information was obtained in the form of completed questionnaires, as well as answers on unstructured,

open-ended questions.

2 http://www.mymarketresearchmethods.com/an-overview-of-market-research-methods/

3 http://www.allbusiness.com/the-five-basic-methods-of-market-research-1287-1.html

Effective Methods:- Subjective estimation

- Historical analogy

- Market Survey

Idea StageIntroduction of

New Technology

Increased

Acceptance of

New Technology

Mature

Technology

Effective Methods:- Cost models

- Market Survey

- Diffusion models

- Historical analogy

Effective Methods:- Time-series models

- Cost models

- Diffusion models

- Econometrics

Effective Methods:- Time-series models

- Econometrics

- Diffusion models

Ma

rke

t S

ha

re %

Le

ve

l o

f R

es

ou

rce

an

d D

ata

Re

qu

ire

me

nts

Low

High

http://www.mymarketresearchmethods.com/an-overview-of-market-research-methods/

http://www.allbusiness.com/the-five-basic-methods-of-market-research-1287-1.html

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Market survey was used to obtain information about market size for different technologies and, where possible, the level of

innovations implemented.

Consultant compared the subjective estimations by different experts to get averaged benchmarks for different technologies

as for their availability, application level and potential. Market penetration then was calculated per group of technology and

sectors as the ratio of applied cases to the potential applications based on assumptions of number of sector average end-

users that could potentially apply the technology. Wherever possible the Consultant commented types of the companies

identified tend to be faster in implementation of BAT technologies and type of financing utilized for these technologies.

Implementation potential then was summarised as aggregated total (total investment potential) and presented in a table

format.

On each technology separate paragraph is devoted summarising the identified quantifiable implementation potential and

the barriers faced in Ukraine versus the situation and barriers faced in the selected BAT country, including conclusions on

how the financial and technical traits of technologies may form potential and barriers for investment and penetration of

technology in Ukraine.

Methodological approach to the market penetration ratio and potential estimations per specific group of technologies is

commented as cases below.

Cogeneration

The total number of CHP units installed in Ukraine was analysed based on open sources and interviews with market

players (e.g. Zeppelin (Caterpillar), Sinapse (Jenbacher), Siemens, etc.). For the selected sectors the average installed

capacity was determined. The market capacity per sector was calculated by multiplying the total number of companies per

sector by using the latest statistical data available. The penetration level is calculated as a ratio of installed capacity per

sector to the market potential.

Heat recovery

In general, it cannot be said that the individual projects on waste heat recovery are always comparable, so the unification of

heat recovery installations is not possible. The differences are mainly in the layout configuration of source, consumption

and method of implementation.

Waste heat can be used on all devices that generate a waste heat transfer medium at a higher temperature, while the

waste heat can be used not only in the device itself, but also for other equipment or purposes (heating, domestic hot water,

etc.). This measure can thus reduce the consumption of any fuel or electricity.

Theoretically waste heat from the appropriate technological equipment in any kind of industrial operation or ventilation of

larger halls can be used. Waste heat can be supplied not only to a lower temperature (by heat exchanger) but also at a

higher temperature (heat pumps, thermal transformers). At temperatures of waste heat higher than about 150°C it is

possible to re-supply not only heat but also electricity (e.g. through ORC).

Use of waste heat must allow specific design of the facility, which produces waste heat - e.g. clear drying air inlet and clear

exhaust air outlet. The problem with some machines is that they do not have a clear inlet for drying air (because many

openings suck air into the machine) and exhaust air is not extracted from one specific point.

It remains difficult to compare a simple heat recovery from the exhaust of ventilation air into the intake air in one single heat

exchanger with the production of electricity from waste combustion.

So market penetration estimation is based mainly on subjective opinion of market players (e.g. Teploenergoresurs (design,

manufacturing, supply, construction, installation, commissioning, maintenance of power equipment, incl. process exhaust

gases heat recycling equipment, http://ter.vn.ua).

Energy Management Systems

In EU today, more than ever, effective energy management is a crucial issue for the success of any business. For many,

the answer is an Energy Management System (EMS) – a framework for the systematic management of energy. As well as

http://ter.vn.ua/

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enhancing energy efficiency, an EMS can cut costs and reduce Greenhouse Gas (GHG) emissions providing you with a

competitive advantage. The ISO 50001:2011 represents the latest best practice in energy management system upon

existing national standards and initiatives.

In Ukraine, the key precondition for successful introduction of energy management system is energy consumption control

and metering. Although ISO50001 standard does not require to launch automated energy consumption control and

metering (technical metering, ASCMPC), this system, if available at the enterprise, multiplies effects of energy saving and

where corrective measures are taken it provides the enterprise the opportunity to save more energy resources. The

Guidelines for Use of Electricity GUE encourage consumers to use systems for analysis of energy consumption with

automated systems of commercial metering.

According to market player data, ASCMPC systems cover approximately 75% of industrial enterprises. However, merely

30% of enterprises use the installed ASCMPCs to analyse energy consumption and take energy saving measures.

Therefore, market penetration rate of the energy consumption technical control and metering systems may be evaluated as

follows:

MPR = n·k = 0.225

where n = 0.75 - factor of the enterprises covered by ASCMPCs,

k = 0.3 - factor of the enterprises, where ASCMPCs are utilized for energy consumption analysis and elaborating of

corrective actions.

Water management systems

Water minimisation, optimisation and recycling measures and technologies are integrated in production and support

processes, thus it is difficult to compare them and their effectiveness. The incentives for introduction of water minimisation

and recycling are increasing water and energy cost.

Waste water treatment technologies are more standardised, although each water treatment process has to be designed


are incentives for minimisation of discharging effluents in the form of payments for its volume and pollution.


Based on the above considerations, the Consultant suggests to still considering this group of technologies as eligible for

the programme, however, specific indicators related to technology is difficult to benchmark, since they depend on each

specific case.

Air cooling systems







players (e.g. company ‘ES Engineering’, complex services on design, supply, installation of thermal engineering systems,

www.ese.ua).

The potential capacity is derived based on the typical / average cooling capacity for typical representative of the sector

taking into account the number of enterprises. The market penetration per sector is determined as share of installed

capacity from potential.

http://www.ese.ua/

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3 Technology area prioritization

3.1 Cogeneration

Combined Heat and Power (CHP) or Cogeneration is the simultaneous production of useful heat and electricity in the same

installation. Conventional electricity generation is via large power stations releasing low-grade heat into the atmosphere as

a wasted by-product. By retrieving some of this rejected heat via heat exchangers and being situated near where it can be

used, CHP plants can greatly increase their overall efficiency and provide heat to commercial, industrial or public sectors at

the same time as producing electricity.

Figure 3.1. Efficiencies of conventional power generation, cogeneration and trigeneration

Trigeneration (electricity, heat and cold generation) has the highest system efficiency and is about 300 % more efficient

than typical central power plant.

There are five principal types of CHP system:

1. Gas turbine systems, where fuel is combusted in the gas turbine and the exhaust gases are normally used in a waste

heat boiler to produce usable heat, though the exhaust gases may be used directly in some process applications.

2. Reciprocating engine systems, producing two grades of waste heat: high grade heat from the engine exhaust and low

grade heat from the engine cooling circuits. Two principal types of engine exist: compression ignition and spark

ignition, dependent on their firing method.

3. Back pressure steam turbine systems, where steam at high pressure is generated in a boiler and is wholly or partly

used in a turbine being exhausted from the turbine at the required pressure for the site. A proportion of the steam used

by the turbine may also be extracted at an intermediate pressure from the turbine (a pass-out/back pressure steam

turbine).

4. Pass-out condensing steam turbine systems, where a proportion of the steam used by the turbine is extracted at an

intermediate pressure from the turbine with the remainder being fully condensed before it is exhausted at the exit

(pass-out/condensing steam turbine).

5. Combined cycle systems, where the plant comprises one or more engines (usually gas turbines but in some cases

reciprocating engines) whose exhaust gases are utilised in a steam generator, the steam of which is used wholly or in

part in one or more steam turbines.

Benefits:

Economic/Management

Depending on the site and the correct choice of plant, savings made on electricity should more than offset the increase in

fossil fuel (usually gas) requirements. This is especially true in the market where electricity prices/unit is considerably more

than gas prices/unit. In some cases further savings from reduced maximum demand charges can also be made. For

CO

GE

NE

RA

TIO

N U

NIT

BO

ILE

RP

OW

ER

GE

NE

RA

TO

R

60

%

10

0%

Th

erm

al e

ne

rgy c

on

tain

ed

in th

e fu

el

sa

vin

g

40

%

ELECTRICITY

HEAT

ELECTRICITY

HEAT

LOSSES DURING

COGENERATION

LOSSES DURING CONVENTIONAL

POWER GENERATION

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suitable small/medium scale CHP sites, energy bills can be reduced by as much as 40 % with typical paybacks of down to

3 or 4 years.

Having an independent supply of electricity avoids relying on the fluctuating price of supplied electricity, and also increases

security of power supply, as the CHP unit can continue to supply power should the grid fail, and vice versa.

The Environment

In conventional generation, 30-50% of the energy consumed is converted to electricity, the remainder being rejected to the

environment as heat, mainly through cooling towers or condensers. About 8% of this electricity (i.e. a further 3% of energy

input) is lost during transmission and distribution to the end-user. The fuel efficiency of industrial CHP plant can be around

80% or more and, as the plant is situated on-site, the losses from transmission and distribution are minimal. For a given

combination of industrial electricity and heat demands using CHP, 10-40% less fuel is required than with conventional

systems. The increased fuel efficiency of CHP gives it a potentially useful role in helping to combat global warming, through

curbing the emission of carbon dioxide (CO2), the principal man-made greenhouse gas. This table shows how this effect

depends on the fuel being displaced by CHP.

Table 3.1. Typical characteristics of CHP systems

Gas Turbine Spark

Ignition

Engine

Compression

Ignition

Engine

Back

Pressure

Steam

Turbine

Pass Out

Steam

Turbine

Combined

Cycle

Fuel Type Natural Gas,

Biogas, Gas

Oil

Natural gas,

Biogas

Natural gas,

Biogas, Gas

oil, Heavy oils

All types All types Natural Gas,

Biogas, Gas

Oil

Capacity

Range

>1 MWe 30 kWe to 2

MWe

100 kWe to 20

MWe

>500 kWe >1MWe >3 MWe

Heat: Power

Ratio

1.5:1 to 2.5:1

(5:1 with

supplementary

firing)

1:1 to 3:1 0.5:1 to 1.5:1

(3:1 with boost

firing)

3:1 to 10:1 3:1 to 8:1 1:1 (3:1 with

supplementary

firing)

Heat Output

Quality

High Grade

Steam

LPHW, Steam

(rare)

LPHW, Steam Medium

Grade Steam

Steam at 2

pressures

Medium

Grade Steam

Electrical

generating

Efficiency %

25-40 25-33 35-42 7-20 10-20 35-50

Overall

Efficiency %

65-80 (75-82

with suppl.

firing)

70-78 65-75 (75-82

with boost

firing)

75-84 75-84 73-80 (80-85

with suppl.

firing)

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3.1.1 Gas Turbines

Gas turbines are able to provide the widest range of electric power - from ten to several tens of megawatts (with the usage

of so-called micro turbines the range can be extended to 1 MWe).

Figure 3.2. Gas turbine principle of operation

In such installations the flow of gas formed in the combustion of fuel creates a torque on turbine blades and rotates the

rotor, which in turn is connected to a generator. Electrical efficiency of systems of this type can be up to 39%. Use of the

gas turbines in combination with steam turbines can increase the electrical efficiency up to 59% (but the overall efficiency

not exceeding of 90%). Gas turbines can be used in many sectors of the economy, but the main sectors are still the oil and

gas production, metallurgy and energy generation with permanently high power consumption.

Inability to scale the system, the complexity of maintenance and the requirement for highly qualified personnel are major

disadvantages of the system. For the purpose of current study the gas turbines market was not investigated deeply.

Figure 3.3. Efficiencies of gas engines and gas turbines

3.1.2 Gas-fired reciprocating installations

The most popular units for CHP purposes are gas-fired (reciprocating or piston) installations. They gained popularity mainly

due to the relative ease of maintenance and management, lower cost and a higher rate of total efficiency (the sum of

electrical and thermal efficiency).

NATURAL GAS

100%

NATURAL GAS

100%

GAS ENGINE GAS TURBINE

ELECTRICITY

42%

ELECTRICITY

26%

HEAT

48%

HEAT

64%

LOSSES

10%

LOSSES

10%

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Figure 3.4. Main components of CHP installation

The main components of a typical system are:

the engine or prime mover which drives the generator.

the generator which produces electricity.

the heat recovery system that recovers the waste heat from both the engine water cooling jacket and exhaust

gases.

the exhaust system to take away the products of combustion.

the control panel to monitor the operation.

Fuel flexibility: Modern equipment is able to work on a variety of gases: natural, landfill and waste water biogas, and

associated petroleum gas, coal mine methane, coke, blast furnace, ferroalloy gases, pyrolysis (synthesis) gas as well as

propane, butane and so on. If necessary, engines can be adjusted to operate on a mixture of different of gases

simultaneously.

Reliability and life: Gas engines in CHP installations are characterized by long periods of work between scheduled

maintenance: the life of spark plugs is up to 15,000 working hours, cylinder heads up to 30,000 – 40,000 hours.

Size range: Gas-fired CHP installations are supplied as skid-mounted and container mounted pre-assembled units (≤ 3

MWe) as well as stand-alone units, which require additional engineering for wrap around piping and covering structures.

Emissions: Emissions data of International producers are consistent with those described in EPA CFR 40 Part 89 Subpart

D & E and ISO8178-1 for measuring HC, CO, PM, NOx.

Electrical Efficiency: Gas-fired CHP units are equipped with electrical generators. The electrical generating efficiency of

CHP units is within the range 39-47%.

Thermal output: Heat recovery system allows recovering the heat of exhaust gases as well as the waste heat from the

engine water cooling reaching 52% of overall system efficiency.

CHP System Efficiency: The combined efficiency of modern CHP units reaches 92%.

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3.1.3 Back Pressure Steam Turbines

Back pressure steam turbine systems, where steam at high pressure is generated in a boiler and is wholly or partly used in

a turbine being exhausted from the turbine at the required pressure for the site. A proportion of the steam used by the

turbine may also be extracted at an intermediate pressure from the turbine (a pass-out/back pressure steam turbine).

Figure 3.5 Boiler/Steam Turbine scheme and cogeneration system components

Back pressure steam turbine Extraction (pass out) steam turbine

This is the most widely used back-pressure type

turbine. Its aim is to expand the available steam

through the turbine stages.

It provides a constant pressure steam through a

controlled extraction at various loading conditions of the

turbine based on seasonal variations.

Figure 3.6 Type of back pressure steam turbines

3.1.4 Organic Rankine Cycle

The Rankine cycle is a thermodynamic cycle used to generate electricity in many power stations. Superheated steam is

generated in a boiler, and then expanded in a steam turbine. The turbine drives a generator, to convert the work into

electricity. The remaining steam is then condensed and recycled as feed water to the boiler.

Steam

Process or Condensor

Heat out

Power out

Turbine

Pump

FuelBoiler

Power out

Turbine

High Pressure

Steam

Low Pressure Steam

to ProcessCondensor

Power out

Turbine

High Pressure

Steam

Medium / Low

Pressure Steam

to Process

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Organic substances can be substituted for steam when temperatures are limited to less than 400 degree Celsius. This is

called an Organic Rankine Cycle (ORC).

ORC can make use of low temperature waste heat to generate electricity. At these low temperatures a steam cycle would

be inefficient, due to enormous volumes of low pressure steam, causing very voluminous and costly plants. ORCs can be

applied for low temperature waste heat recovery (industry), efficiency improvement in onsite power generation, and

recovery of geothermal and solar heat.

Several organic compounds have been used in ORCs (e.g. refrigerants, iso-pentane or ammonia) to match the

temperature of the available waste heat. Waste heat temperatures can be as low as 60°C. The efficiency of an ORC is

estimated to be between 10 and 20%, depending on temperature levels. On many sites no suitable use is available for low

temperature waste heat, hence upgrading by the use of a heat pump (or transformer) or an ORC are good energy recovery

candidates. Figure below shows a typical ORC where waste heat (1) evaporates the refrigerant which passes through the

turbine producing power (2). The refrigerant is then condensed (3) and pumped back to the waste heat source (4). The

system utilizes a closed-loop Rankine cycle using an advanced refrigerant.

Figure 3.7. Organic Rankine Cycle Unit Scheme

3.1.5 Steam Turbine Design Characteristics

Custom design: Steam turbines can be designed to match CHP design pressure and temperature requirements. The steam

turbine can be designed to maximize electric efficiency while providing the desired thermal output.

Thermal output: Steam turbines are capable of operating over a very broad range of steam pressures. Utility steam

turbines operate with inlet steam pressures up to 241 bar and exhaust vacuum conditions as low as one inch of Hg

(absolute). Steam turbines can be custom designed to deliver the thermal requirements of the CHP applications through

the use of back-pressure or extraction steam at appropriate pressures and temperatures.

Fuel flexibility: Steam turbines offer a wide range of fuel flexibility using a variety of fuel sources in the associated boiler or

other heat source, including coal, oil, natural gas, wood, and waste products.

Reliability and life: Steam turbine life is extremely long. There are steam turbines that have been in service for over 50

years. Overhaul intervals are measured in years. When properly operated and maintained (including proper control of

boiler water chemistry), steam turbines are extremely reliable. They require controlled thermal transients as the massive

casing heats up slowly and differential expansion of the parts must be minimized.

Size range: Steam turbines are available in sizes from under 100 kW to over 250 MW. In the multi-megawatt size range,

industrial and utility steam turbine designations merge, with the same turbine (high pressure section) able to serve both

industrial and small utility applications.

Turbine Power out

Pump

Waste Heat

150° - 420°

Generator

1

2

3

4

Condensor

Evaporator

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Emissions: Emissions are dependent upon the fuel used by the boiler or other steam source, the boiler furnace combustion

section design and operation, and any built-in and add-on boiler exhaust clean-up systems.

Electrical Efficiency: The electrical generating efficiency of steam turbine power plants varies from a high of 36% HHV (4)

for large, electric utility plants designed for the highest practical annual capacity factor, to under 10% HHV for small, simple

plants which make electricity as a by-product of delivering steam to industrial processes or district heating systems for

colleges, industrial parks and building complexes. Steam turbine thermodynamic efficiency (isentropic efficiency) refers to

the ratio of power actually generated from the turbine to what would be generated by a perfect turbine with no internal

losses using steam at the same inlet conditions and discharging to the same downstream pressure. Turbine

thermodynamic efficiency is not to be confused with electrical generating efficiency, which is the ratio of net power

generated to total fuel input to the cycle. Steam turbine thermodynamic efficiency is a measure of how efficiently the turbine

extracts power from the steam itself and is useful in identifying the conditions of the steam as it exhausts from the turbine

and in comparing the performance of various steam turbines. Multistage (moderate to high pressure ratio) steam turbines

have thermodynamic efficiencies that vary from 65% for very small (under 1,000 kW) units to over 90% for large industrial

and utility sized units. Small, single stage steam turbines can have efficiencies as low as 50%.

CHP System Efficiency: Steam turbine CHP systems are generally characterized by very low power to heat ratios, typically

in the 0.05 to 0.2 range. This is because electricity is a by-product of heat generation, with the system optimized for steam

production. Hence, while steam turbine CHP system electrical efficiency may seem very low, it is because the primary

objective is to produce large amounts of steam. The effective electrical efficiency of steam turbine systems, however, is

generally very high, because almost all the energy difference between the high pressure boiler output and the lower

pressure turbine output is converted to electricity. This means that total CHP system efficiencies are generally very high

and approach the boiler efficiency level. Steam boiler efficiencies range from 70 to 85 % HHV depending on boiler type and

age, fuel, duty cycle, application, and steam conditions.

3.1.6 Steam turbines applications

Steam turbine-based CHP systems are primarily used in industrial processes where solid or waste fuels are readily

available for boiler use. In CHP applications4, steam may be extracted or exhausted from the steam turbine and used

directly. Steam turbine systems are very commonly found in paper mills as there is usually a variety of waste fuels from

hog fuel to black liquor. Chemical plants are the next most common industrial user of steam turbines followed by primary

metals.

There is a niche for use of steam turbo generators in every segment of the oil and gas industry such as drilling and

production, LNG, pipelines and storage to industrial power generation, refining and petrochemicals.

4 http://www.epa.gov/chp/documents/catalog_chptech_4.pdf

http://www.epa.gov/chp/documents/catalog_chptech_4.pdf

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Figure 3.8. Flow diagram of capture and compression of CO2 chemical process5

There are a variety of other industrial applications including the food industry, particularly sugar and palm oil mills.

Food processing

Steam turbines play a key role in the food processing industry. Electricity, cooling, and heating are the critical elements of

any food processing process.

Figure 3.9. Food processing flow diagram

Sugar mills

The bagasse available after crushing of sugarcane is fired in boilers to raise steam. This steam raised, can be fed to the

turbines for generation of power and extractions taken from the turbine can be used for the various processes in sugar

5 http://decarboni.se/publications/strategic-analysis-global-status-carbon-capture-storage-report-5/67-rd-gaps

http://decarboni.se/publications/strategic-analysis-global-status-carbon-capture-storage-report-5/67-rd-gaps

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manufacturing. The co-generation plants, offers advantage of generating power required for operating the plant during the

peak season. In off-season, the power generated can be sold to the grid.

Biomass Power Plants

Biomass is biological material from living, or recently living organisms, most often referring to plants or plant-derived

materials like wood chips, rice husk, agricultural residue etc. Biomass derived energy holds the promise of reducing carbon

dioxide emissions, a significant contributor to global warming. The energy conversion can be either through direct

incineration or Gasification.

In the incineration route the Biomass is burnt to raise steam and power is generated deploying simple Rankine cycle. In

Gasification the Gas may be used to raise steam or else power may be generated deploying a Gas Engine / Turbine and

through Waste Heat Recovery deploying a steam turbine.

Incineration

Gasification Option A

Gasification Option B

Figure 3.10. Biomass power plants process flow diagrams and options for gas utilisation

Investment in cogeneration in a textile mill with processing capability pays off in 2 - 3 years6.

6 http://www.triveniturbines.com/textiles.html

Direct Feedstock Steam

(Bio)gas fired boiler Steam Turbine

Steam

Steam TurbineGas Engine

Synthesis Gas Exhaust Gas

Waste Heat

Recovery Boiler

Steam

Steam TurbineWaste Heat

Recovery BoilerGas Turbine

Synthesis Gas Exhaust Gas

http://www.triveniturbines.com/textiles.html

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Figure 3.11. Textiles manufacturing process flow diagram

Pressing

Steeping

Shredding

Pressing

Aging

Xanthation

Ripening

Filtering

Spinning

Washing

Drying

Dyeing

Dissolving

Degassing

Cutting

Desizing

Bleaching

Stentering

Process requiring

Thermal energy

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3.2 Heat Recovery

4 Industrial waste heat refers to energy that is generated in industrial processes without being put to practical use.

Sources of waste heat include hot combustion gases discharged to the atmosphere, heated products exiting industrial

processes, and heat transfer from hot equipment surfaces. The exact quantity of industrial waste heat is poorly

quantified, but various studies have estimated that in developed countries as much as 20 to 50% of industrial energy

consumption is ultimately discharged as waste heat. While some waste heat losses from industrial processes are

inevitable, facilities can reduce these losses by improving equipment efficiency or installing waste heat recovery

technologies. Waste heat recovery entails capturing and reusing the waste heat in industrial processes for heating or

for generating mechanical or electrical work. Example uses for waste heat include generating electricity, preheating

combustion air, preheating furnace loads, absorption cooling, and space heating.

Figure 3.12. Heat exchanger and example of heat recovery scheme

Captured and reused waste heat is an emissionfree substitute for costly purchased fuels or electricity.

Three essential components are required for waste heat recovery: 1) an accessible source of waste heat, 2) a recovery

technology, and 3) a use for the recovered energy.

Source of Waste Heat

(e.g., combustion exhausts, process

exhausts, hot gases from drying ovens,

cooling tower water)

Recovery Technology (e.g., regenerator,

recuperator, economizer, waste heat boiler,

thermoelectric generator)

End Use for Recovered Heat

(e.g., preheating (boiler feedwater, raw

materials, combustion air), electricity supply,

domestic hot water)

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Each waste heat stream is investigated in terms of its waste heat quantity (the approximate energy contained in the waste

heat stream), quality (typical exhaust temperatures), current recovery technologies and practices, and barriers to heat

recovery. Energy content of waste heat streams is a function of mass flow rate, composition, and temperature, and was

evaluated based on process energy consumption, typical temperatures, and mass balances.

Investigation of current waste heat recovery practices shows that waste heat is generally recovered from clean, high

temperature waste heat sources in large capacity systems. Key opportunities are available in optimizing existing systems,

developing technologies for chemically corrosive systems, recovering heat from nonfluid heat sources, and recovering low

temperature waste heat. Observed trends are described below.

Waste heat recovery systems are frequently implemented, but constrained by factors such as temperature limits and

costs of recovery equipment.

There are a number of cases where heat recovery equipment is installed, but the quantity of heat recovered does not

match the full recovery potential. Key barriers include heat exchanger material limits and costs for extending recovery

to lower temperature and higher temperature regimes.

Most unrecovered waste heat is at low temperatures.

Roughly 60% of unrecovered waste heat is low quality (i.e., at temperatures below 232°C). While low temperature

waste heat has less thermal and economic value than high temperature heat, it is ubiquitous and available in large

quantities. Comparison of total work potential from different waste heat sources showed that the magnitude of low

temperature waste heat is sufficiently large that it should not be neglected in pursuing opportunities for waste heat

recovery. New technologies are developing that may provide significant opportunities for low temperature heat

recovery.

There are certain industrial subsectors where heat recovery is less common, due to factors such as heat source’s

chemical composition and the economiesofscale required for recovery.

High temperature, high-quality heat is wasted in some subsectors due to corrosive/fouling chemicals contained in the

waste heat stream, or due to economiesofscale that limit recovery (e.g., small metal casting and glass operations).

Losses from non-traditional waste heat sources are difficult to recover, but significant.

Usually exhaust gas waste heat losses are recovered; however, it was numerous studies shows that alternate sources

of waste heat are also significant. These include heat lost from hot product streams (e.g., hot cast steel) and hot

equipment surfaces (e.g., aluminium sidewalls). These heat losses alone are about one third the amount of offgas

losses from all the processes.

Numerous technologies are already well developed for waste heat recovery (e.g., recuperators, regenerators, etc.).

However, the challenge is that technologies are not always economical for a given application (e.g., applications with dirty

exhaust streams).

Barriers

Despite the significant environmental and energy savings benefits of waste heat recovery, its implementation depends

primarily on the economics and perceived technical risks. Industrial manufacturing facilities will invest in waste heat

recovery only when it results in savings that yield a “reasonable” payback period (<< 3 years) and the perceived risks are

negligible.

Numerous barriers impact the economy and effectiveness of heat recovery equipment and impede their wider installation.

Many of these barriers, described below, are interrelated, but can generally be categorized as related to cost, temperature

restrictions, chemical composition, application specifics, and inaccessibility/transportability of heat sources.

1) Costs

a. Long Payback Periods costs of heat recovery equipment, auxiliary systems, and design services lead to long

payback periods in certain applications. Additionally, several industry subsectors with high quality waste heat

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sources (e.g., metal casting) are renowned for small profit margins and intense internal competition for limited

capital resources.

b. Material Constraints and Costs certain applications require advanced and more costly materials. These materials

are required for high temperature streams, streams with high chemical activity, and exhaust streams cooled below

condensation temperatures. Overall material costs per energy unit recovered increase as larger surface areas are

required for more efficient, lower temperature heat recovery systems.

c. EconomiesofScale equipment costs favour largescale heat recovery systems and create challenges for small-

scale operations.

d. Operation and Maintenance Costs corrosion, scaling, and fouling of heat exchange materials lead to higher

maintenance costs and lost productivity.

2) Temperature Restrictions

a. Lack of a Viable EndUse many industrial facilities do not have an onsite use for low temperature heat.

Meanwhile, technologies that create enduse options (e.g., low temperature power generation) are currently less

developed and more costly.

b. Material Constraints and Costs

i. High temperature materials that retain mechanical and chemical properties at high temperatures are costly.

Therefore, waste heat is often quickly diluted with outside air to reduce temperatures. This reduces the quality

of energy available for recovery.

ii. Low temperature liquid and solid components can condense as hot streams cool in recovery equipment.

This leads to corrosive and fouling conditions. The additional cost of materials that can withstand corrosive

environments often prevents low temperature recovery.

iii. Thermal cycling the heat flow in some industrial processes can vary dramatically and create mechanical and

chemical stress in equipment.

c. Heat Transfer Rates small temperature differences between the heat source and heat sink lead to reduced heat

transfer rates and require larger surface areas.

3) Chemical Composition

a. Temperature Restrictions waste heat stream chemical compatibility with recovery equipment materials will be

limited both at high and low temperatures.

b. Heat Transfer Rates deposition of substances on the recovery equipment surface will reduce heat transfer rates

and efficiency.

c. Material Constraints and Costs streams with high chemical activity require more advanced recovery equipment

materials to withstand corrosive environments.

d. Operation and Maintenance Costs streams with high chemical activity that damage equipment surfaces will lead

to increased maintenance costs.

e. Environmental Concerns waste heat recovery from exhaust streams may complicate or alter the performance of

environmental control and abatement equipment.

f. Product/Process Control chemically active exhaust streams may require additional efforts to prevent cross

contamination between streams.

4) Application specific Constraints

a. Process specific Constrains equipment designs are process specific and must be adapted to the needs of a

given process. For example, feed preheat systems vary significantly between glass furnaces, blast furnaces, and

cement kilns.

b. Product/ Process Control heat recovery can complicate and compromise process/quality control systems.

5) Inaccessibility/Transportability

a. Limited Space many facilities have limited physical space in which to access waste heat streams (e.g., limited

floor or overhead space)

b. Transportability many gaseous waste heat streams are discharged at nearatmospheric pressure (limiting the

ability to transport them to and through equipment without additional energy input).

c. Inaccessibility it is difficult to access and recover heat from unconventional sources such as hot solid product

streams (e.g., ingots) and hot equipment surfaces (e.g., sidewalls of primary aluminium cells).

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Table 3.2 Temperature classification of waste heat sources and related recovery opportunity7

Temp Range

Example Sources Temp (°C) Advantages Disadvantages/

Barriers

Typical Recovery Methods/

Technologies

High [> 650°C]

Nickel refining furnace 1,370-1,650 High quality energy, available for a diverse range of end uses with varying temperature requirements High efficiency power generation High heat transfer rate per unit area

High temperature creates increased thermal stresses on heat exchange materials Increased chemical activity/corrosion

Combustion air preheat Steam generation for process heating or for mechanical/ electrical work Furnace load preheating Transfer to med low temperature processes

Steel electric arc furnace 1,370-1,650

Basic oxygen furnace 1,200

Aluminium reverberatory furnace 1,100-1,200

Copper refining furnace 760-820

Steel heating furnace 930-1,040

Copper reverberatory furnace 900-1,090

Hydrogen plants 650-980

Fume incinerators 650-1,430

Glass melting furnace 1,300-1,540

Coke oven 650-1,000

Iron cupola 820-980

Medium [230 - 650°C]

Steam boiler exhaust 230-480 More compatible with heat exchanger materials Practical for power generation

Combustion air preheat

Steam/ power generation

Organic Rankine cycle for power generation

Furnace load preheating, feed water preheating

Transfer to low temperature processes

Gas turbine exhaust 370-540

Reciprocating engine exhaust 320-590

Heat treating furnace 430-650

Drying & baking ovens 230-590

Cement kiln 450-620

Low [<230°C]

Exhaust gases exiting recovery devices in gas fired boilers, ethylene furnaces, etc.

70-230 Large quantities of low temperature heat contained in numerous product streams.

Few end uses for low temperature heat Low efficiency power generation For combustion exhausts, low temperature heat recovery is impractical due to acidic condensation and heat exchanger corrosion

Space heating Domestic water heating Upgrading via a heat pump to increase temp for end use Organic Rankine cycle

Process steam condensate Cooling water from:

50-90

furnace doors 30-50

annealing furnaces 70-230

air compressors 30-50

internal combustion engines 70-120

air conditioning and refrigeration condensers

30-40

Drying, baking, and curing ovens 90-230

Hot processed liquids/solids 30-230

3.3 Energy Management

ISO:50001

Today more than ever, effective energy management is a crucial issue for the success of any business. For many, the

answer is an Energy Management System (EMS) – a framework for the systematic management of energy. As well as

7 Waste Heat Recovery: Technology and Opportunities in U.S. Industry, Prepared by BCS, Incorporated March 2008

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enhancing energy efficiency, an EMS can cut costs and reduce Greenhouse Gas (GHG) emissions providing you with a

competitive advantage. The ISO 50001:2011 represents the latest best practice in energy management system upon

existing national standards and initiatives.

The standard specifies the requirements for an EMS to develop and implement a policy, identify significant areas of energy

consumption and target energy reductions.

Energy management system is a system of tools used to monitor, control and optimize energy consumption. ISO

50001:2011 provides a framework of requirements for organizations to:

Develop a policy for more efficient use of energy

Fix targets and objectives to meet the policy

Use data to better understand and make decisions about energy use

Measure the results

Review how well the policy works, and

Continually improve energy management.

Energy management is defined as the techniques, processes and activity which drive more efficient energy use. Energy

management allows for a reduction in costs, carbon emissions and risk, ensuring the efficient use of energy consumption.

This method for reducing energy consumption through the application of cost-free and low-cost measures was first widely

adopted in West Europe, in the United Kingdom in particular. The goal is to improve energy efficiency, reduce greenhouse

gas emissions and drive down energy costs.

Figure 3.13. Energy management system model

Energy Policy

Planning

Implementation

and Operation

Cheking and

Corrective Action

Corrective and

Preventive Action

Monitor and

MeasureInternal Audit

Management

Review

Continuous

Improvement

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3.4 Water Management Systems

Optimisation of water use by industries can lower water withdrawals from

local water sources thus increasing water availability, lowering wastewater

discharges and their pollutant load, reducing energy consumption and also

processing cost.

Water Management technologies include:

measures for water use minimisation and optimisation

recycling of water streams and effluent for industrial applications

waste water treatment technology including sludge treatment

Water minimisation, optimisation and recycling measures and technologies

are integrated in production and support processes, thus it is difficult to

compare them and their effectiveness. The incentives for introduction of

water minimisation and recycling are increasing water and energy cost.




3.5 Air Cooling Systems





larger total heat transfer capacity the cooling water tower should be applied.



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4 Current standards in EU

4.1 EU Best Available Techniques Reference Documents

For the technical specifications and reference indicators the Consultant applied the following main documents and

standards as listed below but not limited to:

1. EU Best Available Techniques Reference Documents (given below in alphabetical order):

BREF Common Waste Water and Waste Gas Treatment/ Management Systems in the Chemical Sector

Final Draft (2014)

BREF Non-Ferrous Metals Industries. Final Draft (2014)

BREF Polymers (2007)

BREF Ceramic Manufacturing Industry (2007)

BREF Energy Efficiency (2009)

BREF Ferrous Metals Processing Industry (2001)

BREF Food, Drink and Milk Industries (2006)

BREF Glass (2013)

BREF Industrial Cooling Systems (2001)

BREF Intensive Rearing of Pigs and Poultry (2003)

BREF Iron and Steel Production (2012)

BREF Large Combustion Plants (2006)

BREF Large volume inorganic chemicals – Ammonia, Acids, Fertilizers (2007)

BREF Large Volume Inorganic Chemicals – Solids and other industry (2007)

BREF Large Volume Organic Chemicals Draft 1 (2014)

BREF Organic fine chemicals (2006)

BREF Production of Cement, Lime and Magnesium Oxide (2013)

BREF Production of Specialty Inorganic Chemicals (2007)

BREF Production of Wood–based Panels (final draft, 2014)

BREF Pulp and paper (2013)

BREF Refining of Mineral oil and gas (2015)

2. Definition of High Efficiency cogeneration (EU Directive 2012/27/EU and 2004/8/EC, http://eur-

lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32012L0027

3. ISO 50001 Standard for Energy Management.



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4.2 EU BATs in Agro industrial sector

Chapter below contains the short description of BAT in Agro industrial sector in EU, GHG savings indicators, applicability

and penetration categorizations. The detail description is given in Attachments 1 and 2.

4.2.1 Cogeneration

Table 4.1 EU BREFs in co-generation in agro industry

Climate Technology

Brief technical specification and considered range

BAT documents reference

EU BAT, incl. EE and GHG savings indica-

tors, investment costs and PBP

(EU - CZ and NL practice)

BAT Penetration categorisation

8

Gas (including biogas) engine CHP

CHP < 2 MW Energy Efficiency (Feb. 2009)

Definition of High Efficiency Cogeneration

9

BAT available

PBP from 6 to 10 years10

3

MW6 < CHP > 2 MW BAT available

PBP from 6 to 10 years

3

Back pressure steam turbine

Pass-out steam turbine

- Steam boiler + back pressure

- Steam turbine CHP > 2 MW < 6 MW

- Organic Rankine Cycle (ORC)

Large Combustion Plants (July 2006)

Food, Drink and Milk Industries (FDM) (Aug. 2006). Chapter 4.2.13.1.1.

BAT available

PBP from 6 to 10 years

3


- CHP

- Electrical power generation Usually longer PBP,

about 10 installed in CZ (1

st in 2005), but still

need to be supported

2

8 1-Introduction of new technology’; ‘2-Increased acceptance of new technology’; ‘3-Growing importance and application of technology’;

‘4-Fully mature technology’ 9 High efficiency cogeneration is defined in EU Directive 2012/27/EU as that which saves at least 10% of primary energy compared to the

alternative methods of generating heat and power separately (based on determined energy efficiency reference values) 10

Pay back depends on no. of factors, price of gas, price of electricity, availability of any additional subsidy.

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4.2.2 Heat recovery

Table 4.2 EU BREFs in heat recovery in agro industry

Climate Technology







Medium-tempe-rature recovery systems from e.g. furnaces (incl. applications in aggressive environments)

230-650oC BAT available

Low-cost measure, often 1- 2 years. payback

3

(for the low cost measures)

Low-temperature recovery systems from condensate and hot water examples bellow:

< 230oC Energy

Efficiency (Feb. 2009)

BAT available

Low-cost measure, PBP 1- 2 years.

3

(for the low cost measures)

Heat recovery from cooling systems

Heat recovered from cooling equipment and compressors; use of heat-exchangers and storage tanks for warm water.

50 – 60ºC achievable

FDM Section 4.2.13.5

Significant energy consumption reduction

IC: € 160,000

PBP: 6.3 years (depends on actual situation, attractive on larger farms).

3

Well known system, applicable in food

production installations; economically feasible in installations with deep

freeze storage

Heat recovery in vegetable oil extraction

Hydrogenation reaction of vegetable oil produces heat of 41.67 - 152.78 kWh/t of feedstock; heat is used to heat the product to desired reaction temperature and generate steam.

FDM Section 4.7.4.4

The steam generation - 25 – 125 kWh/t of unrefined oil.

5 - 10 % consumption of primary energy is reduced

2

(technically applicable in edible oil refineries)

Not widely applied yet

Heat recovery in dairies

Regenerative heat-exchange in pasteurisation and UHT treatment (e.g. nine plate exchangers)

FDM Section 4.7.5.6

Energy savings up to 90 %

IC: € 370,000 PBP: 3.6 years.

3

Widely applied in dairies

Utilisation of heat from warm whey for preheating cheese milk using plate heat-exchangers and buffer tanks for water circulation

FDM Section 4.7.5.14.7

Energy savings

IC: € 1.6 million for the whole whey processing; incl. RO unit + heat treatment recovery.

PBP 3.8 years.

3

Applicable with relatively low pay back

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Climate Technology







Heat recovery from pasteurisation in ice-cream production


Reduced energy consumption by 14%, and water consumption by 1,000 l/t of ice-cream

2

Payback relatively long

Heat recovery in breweries

Re-use of hot water from wort cooling - heat-exchanger used for cooling the wort from 100 ºC to about 10 ºC.


Reduced energy and water consumption, and odour emissions

3

Applicable in new breweries

Heat recovery from wort boiling - recovering the heat from the vapour for either boiling the wort or to preheat the wort before boiling.


Reduced energy and water consumption, and odour emissions

2

Applicable in new breweries, high capital

costs

in new EU breweries, or in existing ones with

high energy consumption., heat

recovery is considered after other energy

reductions, e.g. to a level of 41.66 – 55.55

kWh/hl

4.2.3 Energy Management systems, automation and practices

Table 4.3 EU BREFs in EMS in agro industry

Climate Technology







Energy

management

systems


(automation system for

technical metering – sub-

metering systems)

Energy

Efficiency

(Feb-2009)

ISO 50001

standard

BAT available

PB difficult to determine.

First step in EMS is often

good housekeeping,

leading to some savings

(few %) directly, but EMS

often identifies other

energy saving

possibilities

3

(widely used in industry)

But little ISO 50001

certified firms

Advanced Two-stage drying – using spray FDM Section Energy consumption for 2

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Climate Technology







automation in

drying for

agroindustry:

milk powder

production

dried with a rotary atomizer and

separate Fluidized bed drier

4.7.5.8

drying reduced by up to

20 %.

Overall energy

consumption 0,4 kWh/l of

received milk

high capital costs

sugar industry;

in starch

processing; in

tomato, apple

and citrus juice

concentration;

and in the

evaporation of

milk and whey

Multistage evaporation using 3-

7 stages thermal vapour

recompression (TVR), or

mechanical vapour

recompression (MVR)

FDM Section

4.2.9.1 -

4.2.9.2

Energy consumption

reduced;

IC: MVR evaporator € 1.5

million,

IC: TVR evaporator € 1.3

million, operating cost of

MVR are 25 % of TVR

operating cost

3

Applicable in new

evaporators

In Sugar

production

Steam drying of sugar beet

pulp using fluidised bed drier

and gas turbine

FDM Section

4.7.7.1.4

Energy consumption

reduced – energy cost

1172 € /h

IC: € 20 million

2

high capital costs, hardly

applicable to existing

plants without extra cost

4.2.4 Water management systems

Table 4.4 EU BREFs in water management in agro industry

Climate Technology







Waste Water treatment (WWT) in agro industry recovery or energy savings.

WWT from FDM installations requires combination of Primary and secondary treatment techniques; further treatment may require tertiary treatments to achieve the discharge limits. When the quality of the WW is suitable for re-use in FDM processing, BAT is to re-use water after sterilisation and disinfection; BAT is to treat WW sludge by one or combination of techniques.

Food, Drink and Milk Industries (FDM) (2006): sections 5.1.6 and 4.5

Performance indicators (PI) for treated WW in FDM:

BOD5 <25 mg/l COD <125 mg/l TSS <50 mg/l pH 6 – 9 mg/l Oil and grease <10 mg/l Total nitrogen <10 mg/l Total phosphorus <5 mg/l Coliform bacteria 400 - 100 ml

3-4 The applicability is

driven by legal environmental requirements

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Screening for removal of coarse solids using static, vibrating and rotary screens.

- Operation of vibrating screens 900 - 1800 rpm Rotary screens head loss 5 - 10 mbar.

FDM Section 4.5.2.1.

SS, FOG and BOD/COD levels reduced - pollution load reduction up to 40 %

Recovery of products, e.g. pulp in the fruit and vegetable sector.

4 Basic WWT technique

Anaerobic processes producing CH4 as a by-product to treat polluted WW with a COD 1500 - 70000 mg/l

E.g. Expanded granular sludge bed reactors with loading up to 30 kg COD/m3 per day

FDM Section 4.5.3.2

e.g. FDM Section 4.5.3.2.8

COD removal 75 – 90 %; produced CH4 is burned in a CHP plant to generate electricity and heat.

Final COD level 500 – 1000 mg/ml Sludge generated per kg of COD removed 0.04 – 0.08 SS/kg

3 High cost, but utilisation

of CH4 improve the efficiency

UV radiation by UV light at 254 nm used for disinfection


Waste water re-use, even as drinking water

2 – 3 High cost

Re-use of process water in potato starch manufacturing - condensed vapours treated by activated sludge process, sand filter and UV disinfection

WW volume: 200 m³/h; COD 1500 ± 300 mg/l


Reduction in fresh water consumption and in WW volume; PI: COD <25 mg/l BOD5 <10 mg/l

2 high capital cost

compared to alternative technology (land

spreading)

Water recovery in a vegetable processing by: 1) WW aerobic treatment supplemented by sand filtration; 2) steam stripping; 3) anaerobic pre-treatment.


Reduced water consumption below 3,5 m3/t product; cost of the recovered process water 1.03 €/m3

2 – 3 High cost

Segregation of water streams to optimise re-use and treatment

FDM Section 4.1.7.8

Reduced water and energy consumption; reduced water contamination

4 Cost saving measure, sometime required by

water permits

Reduction of water consumption in FDM

Using proper water nozzles and their optimal setting in fish processing

FDM Section 4.1.8.8

Water consumption can be reduced by up to 90 %

4

Commonly used

In fruit and vegetables sector apply dry separation of rejected raw material from the sorting step and solid residues

FDM Section 4.1.7.6

Water consumption can be reduced by up to 20 %

3 -4

Widely used depending on the type of processed

fruit/ vegetable

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Peel fruit and vegetables using a batch steam process or a continuous steam process or dry caustic peeling

FDM Sections 4.7.3.4.1, 4.7.3.4.2, 4.7.3.4.6

Reduced water end energy consumption, solid waste and WW production

3 - 4

Widely used depending on the type of peeling

Re-use cooling water, used cleaning water, condensates from drying and evaporation, permeates generated in membrane separation processes and final rinse-water after the treatment

FDM Section 4.7.5.16

Water consumption 0,6 – 1,8 l/ l of received milk

3

Growing application with increase of water cost

in Sugar production:

Reuse of sugar beet water/waste water (flume water, condensate from the evaporation and crystallisation stages)

FDM Section 4.7.7.3

Fresh water consumption 0.25 – 0.4 m3/t beet processed

3

Applied in new or modernized sugar mills

Dry transport of sugar beets FDM Section 4.1.7.4

Fresh water consumption reduction up to 50 %

4

Applied in all Czech sugar mills

In beer production:

Re-use of bottle pasteurising water - overflows from the pasteurisers are collected, sent to a cooling tower and returned to the pasteurizer


Reduced water and chemical consumption, and WW volume.

IC: € 162,000, PBP around 15 months.

3

Short PBP

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4.2.5 Air cooling systems (air cooled condensers)

Table 4.5 EU BREFs in air cooling in agro industry

Climate Technology







Air cooling systems (air cooled condensers)

Air cooling systems in FDM

sectors:

Avoid the use of ozone

depleting substances in cooling

system by substituted by other

refrigerants (e.g. ammonia,

glycol or, chilled water)

FDM section

4.1.9.3

BAT available,

Need to look sector

specific

No new cooling system

with ozone depleting

substances

3

Required by legislation

(Generally applied 11

)

4.2.6 Other technologies

Consultant suggests considering the following technologies as eligible for the programme, however, additional research is

required as of Ukraine market potential and penetration.

Table 4.6 Other EU BREFs relevant to CO2 and GHG emission reduction in agro industry

Climate Technology







CO2 recovery in breweries, wineries, distilleries

CO2 recovery and purification

from the fermentation process

or as a by-product of another

process

FDM Section

4.2.4.1

In the brewing sector, the

reduction in CO2

emissions +/- 2 kg/hl (20

kg/m3) of beer produced.

2

External CO2 supply,

can be cheaper than the

production cost in the

installation

Biogas production

Anaerobic treatment of manure

in a biogas reactor; minimum

farm size - 50 livestock units

(LU)

Intensive

rearing of

pigs and

poultry

BREF

(2003),

section 4.9.6

Reduced organic dry

matter to 30 – 40 %,

biogas production (25 m3

per m3 of slurry) with

CH4 concentration 65 %.

From pig slurry CH4

production 200 l/kg of dry

matter (6.5 kWh).

IC: biogas plant with a

capacity of 100 LU is

3

Application in Europe

supported by subsidies

11

Could be innovative as well if we talk about tri-generation

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from € 180,000 to

250,000.

4.3 EU BATs in Industry

Chapter below contains the short description of BAT in Industrial sector in EU, GHG savings indicators, applicability and

penetration categorizations. The detail description is given in Attachments 3 and 4.

4.3.1 Cogeneration

Table 4.7 EU BREFs in industrial co-generation

Climate Technology





(based on EU practice)


Steam, hydrogen and electric power production in refineries

Integrated gasification combined cycle (IGCC) is a technique whose purpose is to produce steam, hydrogen (optional) and electric power from a variety of low-grade fuel types with the highest conversion efficiency possible; Utility requirements for the gasification processes are 1 800 – 4 900 kWh/t of power and 1 140 kg/t of steam consumption

REF, section 4.10.3.4

IC for IGCC with capacity of 280 MW -

€ 648 million, net cogeneration efficiency

- 47,2 %

3

(generally applied)

Organic Rankine

Cycle (ORC) in

cement

production

ORC recovers low temperature waste heat from the clinker cooler for generating power; It's based on the use of an organic motive medium (pentane). 1.1 MW electrical power can be generated with the given mode of operation. The achieved availability was 97% of the operation time of the cement kiln. The clinker cooler has a waste heat output via the clinker cooler exhaust air of 14 MW and an exhaust gas temperature 300–350°C of which approx. 9 MW on average is extracted.

Production of

Cement, Lime

and

Magnesium

Oxide BREF,

2013 (CLM),

sections

1.4.2.4 and

4.2.3.2

IC for 1 MW plant -

€ 4,5 million (partly

funded by German

government)

2

(co-funding needed

because of high upfront

investment)

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4.3.2 Heat recovery

Table 4.8 EU BREFs in industrial heat recovery

Climate Technology







Combined heat

and dryer

systems for

particleboard

and OSB

UTWS Combined heat and dryer systems with a heat exchanger and thermal treatment of discharged dryer waste gases. The technology for existing plants include a dust abatement system for the combustion plant, heat exchangers for flue-gas and dryer gas heat transfer

Production of

Wood–based

Panels BREF,

final draft, 2014,

(WBP), section

4.2.2.3

Reduces the

consumption of water

and energy and

eliminates the handling

of sludge from wet

abatement systems.

1 - 2

(innovative, installed at

four installations only)

Heat recovery in pulp and paper

Heat recovery from radial vacuum blowers used in vacuum systems - exhaust air from blowers reaches 130 – 160°C.

Pulp and paper BREF (2013),

section 2.9.6.1.1

Recuperation of up to 75% of the power absorbed by the blowers;

Example: steam savings 26 kWh/t, PBP 1.5 years

3 – 4

(generally applied, common in most newer

plants)

Use of thermo-compressors to increase the pressure of the exhaust vapours from separators; requirements for steam pressure 5 - 12 bar

Section 2.9.6.1.2

Steam savings 25 kWh/t

PBP 0.8 years

4

(generally applied installation common in all new paper mills and

most of the latest rebuilds)

heat recovery in cement production

Dry process kiln with multistage cyclone preheaters and with precalcination where exhaust gases and recovered waste heat from the cooler is used to preheat and precalcine the raw material feed before entering the kiln; raw material input moisture max 8.5%

CLM, sections 4.2.3.1,

1.4.2.1.1, 1.4.2.3

Energy consumption 2 900 – 3 300 MJ/tonne

clinker (production capacity - 3000 t/d); reduction of energy

compared to wet kilns about 36 %; Process changes from wet to dry may cost up to

€ 100 million

2 – 3 (saves significant

amounts of energy, but upfront investments

high, applicable to new plants and major

upgrades, subject to raw materials moisture

content)

Heat recovery in lime production

Heat exchangers for long rotary kilns (LRK) to recover surplus heat from flue gases or to permit the use of a wider range of fuels; surplus heat from LRK is used to dry limestone for other processes such as limestone milling

CLM, sections 2.4.2 and 4.3.3

reduction of energy consumption to 6 - 9,2

GJ/t of product



high, applicable to long rotary kilns)

Heat recovery in magnesium oxide production

Heat recovery from exhaust gases by preliminary heating of the magnesite. Heat losses from the kiln can be used for drying fuels, raw materials and some packaging materials.


energy consumption 6 -12 GJ/t of product



high, applicable to all types of kilns)

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Heat recovery in ceramics production

Recovery of excess heat from the cooling zones of tunnel kilns, usually supplemented with hot air from gas burners; excess heat from an afterburner used, either in the kiln or in the dryer; and some processes employ heat exchangers to recover heat from kiln flue-gases in order to preheat the combustion air.

CER, section 4.1.2 and 5.1.2

combined heat recycling system with

natural gas energy requirement for drying and firing 840 - 1050

kJ/kg fired ware (bricks)

2 - 3 (only applicable if the

excess heat is needed elsewhere, applicable in

all ceramic sectors to heat dryers, but only if

the excess heat is needed at the same

time in another process)

Heat recovery in refineries

Waste heat boiler and expander applied to the flue-gas from the fluidized bed Catalytic Cracking (FCC) regenerator; Heat recovery from the regenerator flue-gas is conducted in a waste heat boiler, to increase efficiency an expander in the flue-gas stream can be installed. Heat recovery from the reactor vapour is conducted in the main fractionator by heat integration with the unsaturated gas plant.

REF, section 4.5.2

The waste heat boiler recovers the heat from

the flue-gas and the expander recovers part of the pressure for use in the compression of the air needed in the

regenerator. An example of the

application of an expander saved 15

MWe from the flue-gas generated by a FCC with a capacity of 5

Mt/yr.

2 – 3 (Retrofitting of this

equipment can be very difficult because of

space limitations in the refinery. For small or low-pressure units, expanders are not

justified economically)

Heat integration of crude distillation units with the high vacuum unit and the thermal cracker - through a) Increase crude distillation column pumparounds from 2 to 4. b) Reboil side strippers with heat transfer oil rather than by steam stripping. c) Heat transfer in the crude preheating is improved using specific antifouling treatments in the crude heat exchanger train.

REF, section 4.19.2

Reduced energy consumption

2 -3 (commonly applicable, integration in retrofitting

applications will normally depend on the plot space available and the possibility to execute

these modifications in the available shutdown

time)

Heat recovery from sintering and sinter cooling (iron production)

The sensible heat from the main exhaust gas from the sintering machines, and the sensible heat of the cooling air from the sinter cooler

Iron and Steel

Production,

2012 (IS),

Section 3.3.5.1

Reported energy recovery amounts to

18% of the total energy input for the waste heat boiler and 2.2% of total

energy input for recirculation to the

ignition hoods

3

(Heat recovery from

sinter cooling is applied

frequently in the EU)

Heat recovery from sintering and sinter cooling (iron production)

Recycling of waste gas from the end sinter strand combined with heat exchange

IS, Section

3.3.5.2.2

With an investment of € 14 million, solid fuel

consumption is reduced by 5 – 7 kg solid fuel/t sinter (12.5 % of the

2

(Applied in Germany in

one large steel mill)

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fuel demand) with a corresponding savings

in operational cost.

Heat recovery at pelletisation plants (iron production)

Recovery of sensible heat from the induration strand

IS, Section 4.3.8 The estimated investment for the ‘hot air recirculation duct’

was € 5 million. Savings in energy costs

total EUR 2.8 million /year.

3

(Recovery of sensible

heat is a process-

integrated part of

pelletisation plants)

Heat recovery at coke production

Coke dry quenching IS, Section

5.3.14

The investment for production of 2 million

tonnes of coke is approximately € 100

million. PBP 3-8 years.

3

(applied in about 100

plants worldwide, mainly

in Asia)

Heat recovery at hot dipping

Heat Recovery from Galvanising Kettle Heating

Ferrous Metals Processing

Industry (2001), Section C.4.6.8

Energy reductions in the range 15 – 45 kWh/t

black steel

3

(applied widely,

mentioned as such in

BREF of 2001)

Waste gases heat recovery in Glass production

Waste heat boilers for generation of steam, which is used for heating, etc.; incoming gas temperature 600 - 300 'C, recoverable heat approx. 200'C; applicable heat exchangers: pipe bundle or tube register

Glass BREF, 2013, (GLS), section 4.8.4

and 5.2.1

heat recovery 0,31 - 0,1 GJ/t melted glass;

IC: € 0,5 - 1,67 million depending on the glass

sectors and furnace capacity; cost/t of glass 0,79 - 2,36 EUR/t glass

2 – 3 (widely known

technology, but PB of investment not attractive in all cases, applicable to fuel/air and oxy-fuel

fired furnaces)

Waste gases residual heat recovery in Glass production

Batch and cullet preheating by: a) direct preheaters, b) indirect preheaters (a cross-counter flow, plate hear exchanger), c) Praxair EGB filter (Edmeston electrified granulate bed filter system); preheating temperatures should be in the range 270 °C - 550 °C

GLS section 4.8.5 and 5.2.1

Energy savings 10 - 20 %; increase of furnace capacity up to 15 %; IC

for furnace with capacity 350 - 500 t/day are € 2,5 - 3,4

million

2 – 3 (primarily limited to

container glass sector)

Heat recovery from drying in wood based panels production

Recovery of heat from air emissions by evaporative condensation, heat exchangers, preheating supply air to the dryer and recirculation of hot waste. Latent heat is recovered from the dryer waste gas, using evaporative condensation and heat exchangers. Direct heat is recovered by heat exchangers.

WBP, section 4.6.1.1

Increase of energy efficiency.

Recirculation of waste gases can be

performed as retrofits and PBP is expected to

be short.

4 (generally applied)

Heat recovery from steam

Heat recovery of from steam used in the cooking stage of

WBP, section 4.6.1.5

Lower the overall energy consumption for

2 (technique is applied,

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during refining in wood based panels production

refining by: heat exchangers, falling film evaporators, and plate evaporators that in turn preheat water for steam generation and heat water for chip washing and pre-cooking stages. Steam recovery by vacuum evaporation, where water is separated from the fibres, producing distilled hot water. The condensate can be used as fuel and water for steam generation

refining and water consumption;

Economic efficiency is to be assessed for

each situation

but no reference plants in BREF)

Energy recovery from the hot process gases (AlF3 production)

The use of hot process gases for drying and preheating reduces energy consumption. The gradients of temperature between the hot process gases and the raw materials are high enough to recover the energy from the hot process gases and to use it for drying fluorspar and preheating the reactants.

BREF Large

volume inorganic

chemicals

(LVIC-S),

Section 7.1.4.1.2

Improved energy

efficiency of the

process, decreased

manufacturing cost of

AlF3 production.

2

(applied in Norway, no

other example known]

Heat recovery at ferroalloys production

Recovery of heat from semi-closed furnaces

BREF Non-Ferrous Metals Industries. Final

Draft (2014), Section 8.3.8.1

If the waste heat is utilised as electrical

power, the recovery is up to 15 – 35 % of the

electrical energy consumption

2

(known applications

limited to Norway and

Sweden)

Recovery of exothermic heat

The reaction of ammonia and ethylene oxide is exothermic - opportunity to recover heat, particularly as the distillations is performed under vacuum in order to avoid co-product quality deterioration.

Large volume

organic

chemical BREF,

(LVOC), Section

5.4.5.1.2

Heat recovery 2

(Generally applicable,

but return on

investments may be too

high)

Heat recovery in

H2SO4

production

A thermal efficiency of 85 – 90 % achieved by using waste heat released from the acid cooling for drying processes or for the production of low pressure steam with a special heat recovery system. A modern double contact plant (sulphur burning) can export about 6 GJ/ tonne H2SO4

Large volume

inorganic

chemicals –

Ammonia, Acids,

Fertilizers, 2007,

(LVIC-AAF),

Section 4.4.15

The amount of

recoverable energy and

export options depend

mainly on SO2 source

and process. If no

energy consumer is

available, recovered

energy can be partially

converted into electrical

power.

2

(little information about

reference plants)

Heat recovery

from kiln (HF)

The kiln shell exit gas temperature goes up to about 400 °C, depending on the HF

LVIC-AAF,

Section 6.4.2

The recovered energy

for the whole

2

(little information about

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production rate. Several heat recovery systems remove the excess heat to reduce the gas temperature to 200 / 250 °C. The recovered heat is used to preheat reactant feeds, the combustion air, or other fluids in the production unit.

installation is estimated

to be around 20 % of

the total energy used.

reference plants,

applicable for new

installations)

Recovery of

residual heat

(AN/CAN)

Residual low temperature heat is used to chill water, using a LiBr/H2O absorption cooler; the chilled water was used to cool down air for product cooling.

LVIC-AAF,

Section 9.4.2

IC: € 900,000.

Reduction of energy

consumption.

3

(widely used in industry)

4.3.3 Energy Management systems, automation and practices

Table 4.3 EU BREFs in EMS in industry

Climate Technology







Energy management systems (EMS)

Energy management

systems (automation

system for technical

metering – sub-metering

systems)

ENE (2009)

2.1 Energy

efficiency

management

systems (ENEMS)

2.2.2 A systems

approach to

energy

management

2.8.1 Process

control systems

2.10.3 Metering

and advanced

metering systems

ISO 50001 standard since 2011

BREF ENE mentions

energy management

and several national

standards, but

ISO 50001 is globally

accepted standard

since 2011.

PB difficult to

determine. First step in

EMS is often good

housekeeping, leading

to some savings (few

%) directly, but EMS

often identifies other

energy saving

possibilities

3

(widely used in industry) But little ISO 50001

certified firms

Energy management systems (EMS) in Iron and Steel Production

Energy management

systems (automation



systems)

Iron and Steel

Production, 2012

(IS)

Section 9.1.2 Energy management.

3


certified firms

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Energy management systems (EMS) in Pulp and Paper production

Energy management

systems (automation



systems)

PP BREF, section

2.9.5 - Energy

efficiency

analysis, energy

management and

energy audits

3.3.27 Measures

for increased

energy efficiency

8.2.4 Energy consumption and efficiency

3


certified firms

4.3.4 Water management systems:

Climate Technology







Reduction of water consumption in pulp and paper sector

Pulp and paper BREF (2013)

Dry debarking with debarking drum (Cost are relevant for capacity of about 1300 ADt/d kraft pulp)

PP section 2.9.2.2

WW amount decreases often by 5 – 10 m3/ADt IC: new dry debarking system - € 15 million. Conversion of existing wet to dry debarking system - € 4 – 6 million.

3 - 4 Applied in most EU

plants

Energy efficient vacuum systems for dewatering

Section 2.9.6.2.1 Water savings of around 95%; electrical power savings of approx. 20 – 45%

3 Widely used

Pinch

Technology

Pinch Technology is a methodology for optimising the consumption of consumables in processes and on sites by introducing process integration techniques. It has been used as an energy saving tool to improve thermal efficiency in the chemical and process industries, also for water and WW minimisation.

BREF Common

WW and Waste

Gas Treatment/

Management

Systems in the

Chemical Sector

(2003), CWW

Section 7.2

The application of

Pinch Technology has

succeeded in WW

savings of up to 60 %.

Performance examples

for WW flow reduction:

• Chemicals and fibres

25 %

• Chemicals 40 %

• Oil Refining 20–30 %

• Coal Chemicals 50 %

• Polymers 60 %.

3

Widely applied across

all chemical sectors as

well as in other

industries

Process water

optimisation in

ceramic industry

re-use of process waste water in the same process step, in particular repeated re-use of the cleaning water after suitable treatment

CER, section

4.4.5.1 and 5.1.2

process waste water recycling ratios in different ceramic

industry sectors: Wall and floor tiles up to 80 %; Sanitary ware

and household

3 – 4 Widely used

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ceramics up to 50 %

Frequency-controlled pumps and fans (iron and steel production)

Better and faster adjustment of water flow rates and off-gas flow rates according to the demands of different process conditions

IS, Section 2.5.2.4 Reduction of the energy consumption of

an electromotive system by 30% or

more. PBP 2-3 years.

2 – 3

Applied in Swedish

plants, big potential for

use elsewhere

Water savings in production of organic fine chemicals

Water-free vacuum generation is achieved by using mechanical pumping systems in a closed circuit procedure or by means of dry running pumps.

BREF OFC,

Section 4.2.5

IC for new vacuum

generation € 89,500.

PBD 1 year.

3 - 4

widely applied

Recycling of

waste water

from other

production

processes

Recycling salt-containing effluents from other production processes to the brine system of the chloric-alkali plant. Reduced consumption of salt and water.

BREF CAK (2014)

Section 4.3.2.1.3

IC for the waste water

recycling system:

€ 11 million. Annual

cost savings due to the

reduced consumption

of salt and

demineralised water are

equal to € 3.8 million.

PBP 2,5 – 3 years

2

(Few application exists

due to limitations:

1. No contaminants with

detrimental effect on the

electrolysis process are

in the brine system.

2. water balance of the

electrolysis unit has to

be respected)

Brine

recirculation

(water savings)

Re-saturating the depleted brine from the electrolysis cells with solid salt or by evaporation. The saturated brine is fed back to the cells.

CAK, Section

4.3.2.2.2

reduced consumption

of salt and water

The average volume of

waste water discharged

is approximately 2 t/t of

chlorine produced.

3

(Applied in most EU

plants, almost all

membrane cell plants in

the EU countries use a

brine recirculation

system)

Anaerobic waste water treatment (AWWT)

AWWT converts the organic content of WW, with the help of microorganisms and without entry of air, to a variety of products such as biogas (70 %methane, 30 %CO2, sulphide etc.). The process is carried out in an airtight stirred tank reactor.

CWW, section

3.3.4.3.1

Lower energy consumption,

compared to aerobic process.

Production of biogas – utilized as fuel.

IC: 1) BEF 120 million 1

UASB reactor, 25 m3/h,

raw COD 30 g/l

2) NLG 3.5 million 2

206 m3/d, raw COD 35

g/l

3 - 4

(Widely applied, AWWT

used only as pre-

treatment for WW,

characterized by a high

organic load (>2 g/l).

Applicable in sectors

with consistent effluents

of high BOD loads).

Cyanides - re-

using filtrate and

cleaning water

The crystals of NaCN or KCN are separated from the solution by filtration. Depending on the filtering device used, between 2 - 15 % of water remains in the solid cyanide. The solution

Production of

Speciality

Inorganic

Chemicals BREF,

2007, (SIC),

Section 6.5.13

minimise the

consumption of fresh

water

2 – 3

Applied in several plants

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is then returned to the crystalliser. The rinsing water containing cyanide is recycled back into the process.


Climate Technology







Kiln cooler in lime production

Efficient cooler with homogeneous air distribution and product discharge to minimise the quantity of required cooling air


energy efficiency improvement

N/A

4.3.6 Other technologies

Consultant suggests considering the following technologies as eligible for the programme, however, additional research is

required as of Ukraine market potential and penetration.

Climate Technology





(EU - CR and NL practice)


Energy recovery (iron production)

Gas recovery system for top hopper release

IS, Section 6.3.5 A return on the investment from the

saving in the CO and H2 release is about

151,000 € /y.

2

A few applications

know

Energy recovery (iron production)

Energy recovery from top gas pressure

IS, Section 6.3.13 Energy savings are estimated at up to 0.4 GJ/t of hot metal for a

15 MW turbine. The savings amount to 2% of the gross blast

furnace energy demand

3

Applied worldwide at

modern blast furnaces

with a high top gas

pressure and volume

Energy recovery (steel production)

Energy recovery from the BOF gas

IS, Section 7.3.7 About 80% of the BOF gas will be recovered resulting in an annual

energy savings of 2600 TJ/yr. = approximately 12 € /GJ investment.

3

widely applied at

oxygen steel plants

around the world, long

PBP

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PBP 5 years

improve the energy efficiency of the combustion process in wood based panels production

Dewatering of bark and sludge - dewatering equipment includes filters and screens, screw presses, belt presses, drum presses and centrifuges that remove excess water from wet bark, biomass-based sludge from air abatement systems and for waste water treatment

WBP, section

4.6.1.3

improve the energy

efficiency of the

combustion process

3

(widely applied for

sludge derived from

the internal wet

abatement systems of

dryers and presses,

and from some

treatment steps in

waste water treatment

plants)

Optimum furnace design in glass sector

Regenerative end-fired furnaces with overall thermal efficiency of around 50 %, combustion air preheat temperature up to 1400 °C

GLS section 4.8.1 and 5.2.1

Energy consumption: up to 3500 kJ/kg container glass (tank capacity 600

t); up to 6000 kJ/kg tableware (tank capacity

250 t)

3 - 4 Applied for new plants;

for existing plants in case of a complete

furnace rebuild

Energy savings in refineries

Progressive distillation unit with integrated crude distillation unit (CDU) or High Vacuum Unit (HVU) saves up to 30 % on total energy consumption for these units

REF, section 4.19.1

The energy savings for a 9 700 000 tonnes/yr.

refinery is in the range of 50 000 t of heavy fuel

compared to conventional techniques; IC: € 41,000 – 55 000

per t/yr.

3 (widely applied,

applicable to all or part of CDU/ HVU units

when being constructed and also

in revamps for debottlenecking)

Replacement of old kiln with new energy efficient kiln in ceramic production

Replacing old kiln with fast firing kilns e.g. roller hearth kilns (RHK), improved thermal insulation of kilns, use high velocity burners

Ceramic Manufacturing Industry, 2007 (CER), section 4.1.1 and 5.1.2

reduced energy consumption; energy consumption for firing wall and floor tiles in

RHK at 1150 'C - max 4800 KJ/t, firing sanitary ware in RHK at 1260 'C -

max 5000 KJ/t

3 (widely applied,

applicable to new plants and

replacement of old kilns)

Energy savings and process efficiency in refineries

Good desalting practices which aim to wash the crude oil or heavy residues with water at temperature 115 - 150 'C and at high pressure to dissolve, separate, and remove the salts. Good practices include: 1. Multistage desalters and the combined use of AC and DC fields providing high desalting efficiencies and energy savings; 2. Recycling, in multistage desalters, part of the brine effluent water of 2nd stage

Refining of Mineral oil and gas, 2015 (REF), sections

2.9, 4.9.1

Two-stage processes achieve min 95 % of the

salts/solids removed; energy savings, less

corrosion and catalyst deactivation

2 Applied in several

plants

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desalters to the 1st stage, minimising the wash water quantity; 3. Use of a low-shear mixing device to mix desalter wash water and crude; 4. Avoiding turbulence in desalter vessels by using lower water pressure.

Energy savings

in polymer

production

Gear pumps Use of a gear pump instead of or in combination with an extruder

POL Section

12.1.13

Energy savings 2 Applied in several plants

High pressure

polyethylene

process

Gas phase processes – no limitation as long as fluidised conditions and homogeneous temperature conditions are maintained in the reactor system. The recycling energy is reduced by improving heat removal by the addition of a condensable solvent and/or co-monomer in the reactor system.

POL, Section

12.2.4

Increase of energy

efficiency, Increase of

the polymer

concentration

3 Applied in several

countries

Optimisation of

the stripping in

suspension

processes (PP,

HDPE)

Recycling of monomer to the process and thus reduction of CO2 emissions. By subsequent condensation, the stripped monomer is recovered and after purification recycled back into the process.

POL, Section

12.2.3.2

Reduction of CO2

emissions; monomer

content in the product

is reduced by >75 % / t

of product, about 10 kg

of monomers can be

recycled back into the

process.

3 - 4 Widely applied

Dicyclopentadie

ne (DCPD)

polyester

production

process

The production of DCPD resins generates gaseous emissions which can be treated by regenerative thermal oxidation with energy recovery; DCPD base resin consumes 20 – 35 wt.-% DCPD raw material, creating 6 – 10 % reaction water and other by-products, which are treated.

POL, Section

6.2.5.2

energy recovery 2 Applied in a few plants

Microwave Assisted Organic Synthesis

Microwave Assisted Organic Synthesis (MAOS) uses microwave energy to heat and drive chemical reactions. Microwave irradiation efficiently heats

Organic fine

chemicals BREF,

2006, (OFC),

Section 6.3

Higher energy

efficiency. Applicable to

a number of reaction

types. Very high IC

(many times higher

1 Based on data from 2004 is classified as

emerging technique in the BREF, limitation to large scale utilisation

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the materials by a ‘microwave dielectric heating’ effect. This phenomenon is dependent on the ability of a specific material (solvent or reagent) to absorb microwave energy and convert it to heat.

than for conventional

heating equipment.

Stripping and thermal oxidation of methanol

Methanol and other low molecular compounds can be stripped off with steam and can then be treated together with process exhaust gases by thermal oxidation.

OFC, Section

4.3.5.9

Energy savings

Stripping and

thermal oxidation per

year € 1,760,000

2 Applied in several plants

Thermal oxidation of VOCs and co-incineration of liquid waste

Thermal oxidation is a proven method for destroying VOCs and especially hazardous air pollutants, operating at the highest efficiencies and suitable for almost all VOC sources, incl. process vents, storage tanks, material transfer operations, and treatment, storage and disposal facilities.

OFC, Section

4.3.5.7

The incinerator is

designed to burn about

300 kg spent solvents/

h (combustion factor =

40 MJ/kg). This saves

400 m3 of natural gas

per hour. Saves in total

3300000 m3 natural

gas/year.

Savings are above

440,000 € /year.

4 Widely applied in all EU

production of

soda ash

Decreasing water content in the crude sodium bicarbonate by its centrifugation before the calcination, in order to minimise the energy requirements for its decomposition.

BREF LVIC-S,

Section 2.4.5

Energy savings

resulting in reduced

steam requirements in

the sodium bicarbonate

calcination section,

reduced usage of fuel

in the associated

boiler/power plant;

energy consumption

reduced by 10 %.

3 Applied in several EU

countries

Energy recovery - SILIKONE CARBIDE (SiC)

Gas collection process under the PE foil. It is led to the energy recovery plant where the gas is combusted and energy recovered. Energy consumption amounts to 5.2 – 6.2 MWh/t SiC.

LVIC-S, Section

7.9.4.3

Energy recovery 15 %

of the total energy

consumption.

The energy savings - 1

MWh/t SiC produced

compared to Freiland

furnace


Tail-gas combustion devices

Thermal combustors achieving combustion efficiencies similar to product dryers and boilers

LVIC-S, Section

4.4.3

IC: for a boiler for

superheated high

pressure steam (100


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or CHP. The energy recovery generated by tail-gas can be utilized in the carbon black plant. The potential energy recovery varies between 17 and 30 GJ/t carbon black produced.

bar, 530 °C) varies

between 115,000 -

70,000 € /Mt steam/h.

Total IC: € 11.5 million

for unit of 100 t/h

Energy Efficiency

Use of a regenerative burner

BREF Non-

Ferrous Metals

Industries, 2014,

(NFM), Section

2.12.2.2

PBP 1 year (in

aluminium sector)

3 Applied in several EU countries, short PBP

Energy Efficiency

Preheating and pre-reduction of ores to reduce the energy consumption

NFM, Section

8.3.2.7

The electrical energy

consumption is reduced

by 70 – 90 kWh per 100

ºC increase in the

preheating temperature

of the smelting furnace

3 Widely applied

Energy recovery at ferroalloys production

Energy recovery from a closed electric arc furnace

NFM, Section

8.3.8.2

The cost is estimated to

be about 0.025 € / kWh


Membrane cell technique

Energy consumption for the mercury, diaphragm and membrane cell techniques is based on the energy necessary to produce 1 t of dry and compressed chlorine with its co-products: dry hydrogen and 50 wt.-% caustic soda or potash. Membrane cell technique has the lowest total energy consumption.

BREF CAK

Section 3.3.4.6

Membrane cell

technique’s

consumption of

electrical energy is the

lowest and the amount

of steam needed for

concentration of the

caustic solution is

moderate.

2 Applied in a few plants

Lower olefin –

optimization of

heat transfer

Locating burners at positions within the cracker furnace that maximise heat transfer. Maximise the number of burners that are located on the furnace floor.

Large volume

organic chemical

BREF, (LVOC),

Section 4.4.4.2

Floor-mounted burners

tend to give better rates

of radiant heat transfer.

This increase the

efficiency of energy

use.

2 Applied mostly for new

plants

Toluene Diisocynate (TDI) and (MDI) - Gas phase phosgenation

The gas phase phosgenation technology results in significant savings on solvents and energy consumption.

LVOC, Section

6.4.5.3

Energy savings by 40–

60 % solvent usage

reduced by 80 %.

3 Widely applied

Aromatics – distillation process

The separation of a three-component mixture into its fractions in distillation

LVOC, Section

8.4.4.1.5

DWC cut capital and

energy costs by

approximately 30 %

2 – 3 Applied in several plants

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dividing wall column (DWC) is more cost effective compared to conventional systems.

compared to a

traditional two-column

system. IC: 20 % less;

Energy cost 35 %

lower; 40 % less space

Advanced conventional processes (ammonia)

Advanced conventional process plants are usually characterised by: • high duty primary reformer using high pressures of up to 40 bar • equipped with low NOx burners • stoichiometric air in secondary reforming • low energy CO2 removal system.

LVIC-AAF,

Section 2.4.1

Reduced reformer

firing, lower NOx

emissions and energy

savings.


plants

Pre-reforming (ammonia)

A pre-reformer installed prior to the primary reformer, in combination with a suitable steam saving measures, reduces energy consumption and NOx emissions. Pre-reforming takes place through an adiabatically operated catalyst bed, before the primary reformer. The cooled gas needs to be reheated before it is passed to the primary reformer.

LVIC-AAF,

Section 2.4.5

Up to 5 – 10 % reduced

energy consumption;

Conversion of steam

savings to fuel gas

savings.

3 Widely applied

Ammonia reforming revamp

Revamp of existing steam reforming ammonia plant with capacity 1100 t/day aims to improve efficiency of the primary reformer furnace/gas turbine combination by preheating of the mixed feed and install an efficient gas turbine adapted to suit the oxygen requirements of the furnace.

LVIC-AAF,

Section 2.4.4

Increase energy

efficiency and capacity

energy consumption

after revamp: 30.6 GJ/t.

IC: € 5,700,000

PBP: less than 1 year.

3 – 4 Applied in most of plants, short PBP

Ammonia – reforming plant improvements

Gas turbine for driving the process air compressor and using the hot exhaust gases, which still contain sufficient oxygen, as preheated combustion air in the primary reformer. The preheating of the combustion air saves fuel for the firing of the reformer

LVIC-AAF,

Section 2.4.8

Overall efficiency for

the driving and preheat

operations – min. 90 %.

3 Applied in many plants

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but the higher flame temperatures might increase NOx formation.

ammonia - CO2 removal systems

Addition of special catalyst to improve the energy consumption of “hot potassium carbonate CO2” removal systems.

LVIC-AAF,

Section 2.4.11

Energy savings of 30 –

60 MJ/kmol CO2 (about

0.8 – 1.9 GJ/t NH3).

3 Widely applied

Stripping and recycling of process condensates in ammonia production

The condensation of the steam surplus in the gas downstream of the shift conversion forms process condensate. The condensate contains NH3 and CH3OH as contaminants, which can be removed by stripping with process steam and then recycled to the primary reformer. The stripped condensate can be recycled to the boiler feed-water after further cleaning by an ion exchange.

LVIC-AAF,

Section 2.4.16

Energy consumption for

stripping.

IC: € 2.9 – 3.3 million

for retrofit in existing

plants with a capacity of

1500 t/day.

2 Applied in a few plants;

high IC cost

Low pressure catalyst for ammonia synthesis

A new ammonia synthesis catalyst containing ruthenium and an alkali promoter on a graphite support has a much higher activity per volume compared to the conventional iron-based catalyst. This allows energy savings in the ammonia synthesis reactor, since lower operation pressures can be used and a higher conversion rate per pass can be obtained. The catalyst volume can also be reduced.

LVIC-AAF,

Section 2.4.17

An energy reduction of

up to 1.2 GJ/tonne NH3

can be achieved, but it

might be offset by the

necessity to spend

energy for ammonia

refrigeration.


plants

Hydrogen recovery from ammonia synthesis

A continuous purge gas stream has to be withdrawn to remove inerts from the ammonia synthesis loop. In more recent designs, the hydrogen is recovered from this purge gas and recycled to the synthesis loop.

LVIC-AAF,

Section 2.4.21

Energy savings. 2 Applied in a few cases

Urea and urea ammonium nitrate (UAN)

The removal of most of the residual carbamate and NH3 from the reaction

LVIC-AAF,

Section 8.4.2

Enables almost

complete raw material

recovery;

4 Generally applied

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production solution by stripping with CO2 at high pressure. In comparison with conventional processes, this saves a lot of energy for decomposition at low pressures and recompression for recycling to the process.

High energy savings in

comparison with

conventional

processes.

NH3 stripping process (urea production)

The removal of most of the residual carbamate from the reaction solution by self-stripping with NH3 at high pressure. In comparison with conventional processes, this saves a lot of energy for decomposition at low pressures and recompression for recycling to the process.

LVIC-AAF,

Section 8.4.3

Enables almost

complete raw material

recovery

Big energy savings in

comparison with

conventional

processes. Improved

performance in

comparison to

conventional total

recycling processes.

3 Applied in many plants

Isobaric double recycling process (IDR) in urea production

The heat of condensation is recovered as 7 bar steam which is used downstream in the process. Urea solution leaving the IDR loop contains unconverted ammonia, carbon dioxide and carbamate. These residuals are decomposed and vaporised in 3 successive distillers and heated with medium pressure steam and low pressure recovered steam. Then vapours are condensed to carbamate solution and recycled into the synthesis loop. The urea solution leaving the LP decomposition is fed to two vacuum evaporators in series, producing the urea melt for prilling and granulation.

LVIC-AAF,

Section 8.4.4

energy savings and

improved performance

in comparison to

conventional total

recycling processes


Redirecting fines to the concentrated urea solution

Dust is often separated after the granulator and also redirected to the installation, where it is taken along with the fluidisation air to the scrubber and ends up in a

LVIC-AAF,

Section 8.4.6

Energy savings 32000 t

of steam/year.

IC: € 143,000,

implemented in 1999.

4 Generally applied

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dilute solution. This solution is concentrated due to evaporation.

Heat integration in stripping plants in urea production

Heat integration between the synthesis section and downstream sections reduces the energy requirement.

LVIC-AAF,

Section 8.4.8

Reduced energy

consumption.

In a modern total

recycling process,

conversion of ammonia

to a solid urea requires

3.3 GJ/t of urea.


in EU

Auto thermal granulation in CAN production

Off-gas from fluid bed coolers is used for drying the product in the drying drum. That makes significant energy savings and enables the plant to run auto thermally for nearly all CAN grades.

LVIC-AAF,

Section 9.4.5

significant energy

savings


in EU

Bio trickling Bio trickling abate low concentrations of pollutants that are easily soluble in water and readily biodegradable Bio trickling works under similar conditions to bio scrubbing but, in contrast to bio scrubbing, the microbes are fixed on supporting elements

Final draft –

revised BREF

CWW (2014)

Section 3.5.1.2.3

Low energy

consumption and thus

limited CO2 emissions.

IC: per 1 000 m3/h are

€ 10,000–30,000

3 Widely applied in sewerage water pumping stations

PCl3 - use hot condensate water to melt elemental phosphorus and to keep it in liquid form

The energy required to melt phosphorus can be provided by hot condensate water coming from other parts of the process

SIC, Section

6.2.4.1

Reduction of energy

and water consumption

Very low costs.


Energy recovery in distillation

Heat recovery options. a) Heat exchange between distillation feed and product: heat may be exchanged from product flow to feed flow to save energy in the distillation. b) Vapour recompression can reduce the energy needed up to 90%. c) Energy recovery from condenser.

LVOC, Section

15.4.3.2.3

Savings in heat

exchange depend on

concentrations;

potential savings up to

25 % (0.25 GJ/t for 45

% by weight feed and

50 % by weight

product).

Vapour recompression

saves steam.


plants

Improving calorific value of biofuels

Drying of biofuel and sludge utilising excess heat using flue-gases from the

PP Section

2.9.6.1.4

60 % dry content of the

wet biofuel;

2 – 3 depends on the

regulations on the use of

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recovery boiler (application of bed drying technology)

Lower amount of waste

to be transported

and/or disposed;

Increased calorific

value of biofuels/

sludge + raised thermal

efficiency during

combustion

Better energy / CO2

balance.

biofuels for energy generation

Maintenance Insulations of steam and condensate pipe fittings

PP Section

2.9.6.1.3

energy savings for

steam generation;

PBP 1.1 years in the

example from southern

Europe -insulation of

steam and condensate

pipe fittings (calculated

for 25 fittings on each

medium)

4 Generally applied

Energy savings Energy-efficient frequency inverter for pumps, fans and compressors in paper mills using 3-phase asynchronous motors

PP section

2.9.6.2.3

Energy savings range

between 15 and 25%

for each pumping

application

PBP 0.5 - 4 years

3 Applied in majority of

European mills

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4.4 Examples of BAT Cases in EU (Czech Republic as a reference country)

4.4.1 Cogeneration

4.4.1.1 Gas-fired (reciprocated) engines

Gas engines CHP < 2 MW

Installed capacities The installed capacity of gas turbines of this size is currently about 380 MWe. An

estimated 200 MW is installed in industry.

Unit investments for technology

implementation

Around 800 – 1,300 €/kWh based on the combined electric and heat output

Energy savings From the local point of view the primary energy consumption increases – with the

electricity generation in the CHP unit.

From the society point of view consumption of primary energy supply for electric

energy at the consumer site (i.e. the production - losses in transmission) is

reduced by up to 20-40% (depending el. efficiency of CHP installed unit with a gas

engine and electric supply method. from CHP units to consumers) - when

compared to gas consumption for electricity generation. CHP energy unit and the

consumption of primary energy (coal) for producing power. energy power system

with condensing turbines

СО2 emission savings With Gas consumption for electricity production in CHP unit: 1.11

MWh gas/MWh el12

and 0.2 t CO2/MWh gas

With brown coal production for electricity production in large thermal power plant

approx. 3.33 MWh coal/MWh el13

and 0.36 t CO2/MWh brown coal

CO2 emission savings: (0.36 * 3.33) – (0.2 * 1.11) = 0,97 t CO2 / MWh el

Average Pay-back period or IRR Approx. 6 to 10 years based on the capacity of the cogeneration plant, the

particular arrangement and connection to the system (e.g. the need to install

storage tanks etc.)


Installed capacities The installed capacity of gas turbines of this size is currently about 150 MWe. An

estimated 90 MW is installed in industry.

Unit investments for technology

implementation

Approx. 700 – 1,200 €/kWh based on the combined electric and heat output

Energy savings From the local point of view the primary energy consumption increases – with the

electricity generation in the CHP unit.

From the society point of view consumption of primary energy supply for electric

energy at the consumer site (i.e. the production - losses in transmission) is

reduced by up to 20-40% (depending electric efficiency of CHP installed. unit with

a gas engine and electric supply method from CHP units to consumers) - when

compared to gas consumption for electricity generation. CHP energy unit and the

consumption of primary energy (coal) for producing power. energy power system

with condensing turbines

СО2 emission savings With Gas consumption for electricity production in CHP unit: 1.05

12

The factor 1.11 MWhgas/MWhel is valid under the situation that heat produced in the CHP unit displaces an equivalent amount of heat

produced in a heat only boiler fuelled by gas. We consider that in a CHP unit, part of the fuel is used for heat production and part for electricity production. The factor 1.11 is basically the efficiency of the generator of the gas engine (90%) 13

The factor 3.33 MWhcoal/MWhel is the efficiency of the electricity production in the coal power plant, typically 30%.

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MWh gas/MWh el14

and 0.2 t CO2/MWh gas

With brown coal production for electricity production in large thermal power plant

approx. 3.33 MWh coal/MWh el and 0.36 t CO2/MWh brown coal

CO2 emission savings: (0.36 * 3.33) – (0.2 * 1.05) = 0,99 t CO2 / MWh el

Average Pay-back period or IRR Approx. 6 to 10 years based on the capacity of the cogeneration plant, the

particular arrangement and connection to the system (e.g. the need to install

storage tanks etc.)

Examples of technologies application in sectors of industry

Plant operation of the AZOS, s.r.o. (Automotive) requires 6 days a week continuous and relatively uniform consumption of

electricity and heat for technology. This characteristic is very suitable for the installation of combined cycle.

The company therefore has decided to invest in a CHP unit with gas engine which allows to replace a significant share of

purchased electricity from the network by own generation of electricity and heat in combined cycle from natural gas.

CHP unit type QUANTO D600 Before After Difference

Electricity generation 0 MWh/a 4,275 MWh/a 4,275 MWh/a

Heat generation 0 MWh/a 4,950 MWh/a 4,950 MWh/a

Gas consumption 0 MWh/a 10,427 MWh/a 10,427 MWh/a

Produced electricity and heat is completely used for own consumption in the company.

Average pay-back period and rate of return

In this case is calculated Automotive AZOS, s.r.o and the cost shown in the table below are for new installation a CHP unit

which generates 4,275 MWh/yr. electricity and 4,950 MWh/yr. heat.

Indicator Value

Investment costs € 509,091

Project lifetime: 20 years

Annual electricity generation (final energy): 4,275 MWh/y

Annual heat generation (final energy): 4,950 MWh/y

Energy tariffs maturity (as per decree 165/2012 Coll.)2

20 years

Annual income from energy sales to customers (including state bonus for green energy production)

15

€ 413,200

Operational costs (including increased consumption of gas, staff and maintenance turbine)

€ 332,727

Simple payback period 6.3 years

Real payback period 7.8 years

Net present value (NPV) € 494,200

Discount rate 5 %

Internal rate of return (IRR) 14.8 %

14

The factor 1.05 MWhgas/MWhel is valid under the situation that heat produced in the CHP unit displaces an equivalent amount of heat

produced in a heat only boiler fuelled by gas. We consider that in a CHP unit, part of the fuel is used for heat production and part for electricity production. The factor 1.05 is basically the efficiency of the generator of the gas engine (95%). 15

Energy tariffs are based on current agreements with customers and amount to 8.91 € /MWh for natural gas and 96.7 € /MWh for

electricity as per Price decision of Energy Regulatory Office No. 4/2013.

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4.4.1.2 Steam turbines


A back pressure steam turbine, also known as a "non-condensing turbine" is typically found in industries requiring "process

steam" and include facilities such as; cogeneration / CHP systems, district energy systems, paper and pulp plants,

refineries and oil and natural gas facilities where there are large amounts of low pressure process steam available. The

exhaust pressure setting for back pressure turbines is controlled by a regulating valve which is based on the process steam

pressure requirements for the plant.

A turbine-generator can often produce enough electricity to justify the capital cost of purchasing the higher-pressure boiler

and the turbine-generator. In the backpressure turbine configuration, the turbine does not consume steam. Instead, it

simply reduces the pressure and energy content of steam that is subsequently exhausted into the process header. In

essence, the turbo generator serves the same steam function as a pressure reduction valve (PRV) - it reduces steam

pressure - but uses the pressure drop to produce highly valued electricity in addition to the low-pressure steam.

Regarding steam turbine technology backpressure turbines and extraction condensing turbines have to be distinguished. If

there is a constant heat demand in form of hot water or low pressure steam all over the year backpressure turbines are

used.

Table of some back pressure turbine installed in Power Plant in the Czech Republic

Power Plant Output power MWe

Praha-Malešice 6 MW

Praha-Michle 6 MW

Kolín 5 + 0.56 MW

Kladno 6.3 MW

Strakonice 8.8 MW

Tábor 8.75 MW

Liberec 12 MW

Náchod 2 x 12 MW

Mělník 2 x 60 MW

České Budějovice 29.2 MW

Komořany 32 + 25 + 22 MW

Opatovice 60 MW

Otrokovice 2 x 25 MW

Table of some smaller back pressure turbine installed in Power Plant and Cogeneration plant in the Czech Republic:

Power Plant Output power MWe Fuel for steam generation

Pelhřimov 0.5 + 0.16 MW Biomass

Krnov 0.185 MW Biomass

Ostrava Mar.Hory 0.7 MW Waste gas

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Table of some Turning Reduction installed in Industry:

Industry Output power kWe

Brewery Černá hora 35 kW

Incinerator factory Ekotermex 80 kW

Sugar factory Vrbátky 700 kW

Reducing station Gascontrol 50 kW

Packaging engineering DEVRO 412 kW

Sugar factory Dobrovice 1,480 kW

Sugar factory Litovel 2,500 kW

Unit investments for technology implementation

Output power Unit costs

Back pressure turbine 100 kWe 900 €/kWe

Back pressure turbine 1 MWe – 2 MWe 300 - 400 €/kWe

Back pressure turbine 2 MWe – 6.5 MWe 250 €/kWe

Unit costs are standard prices for the Czech Republic and year 2015.

Energy savings

In order to reduce electricity purchases the company DEVRO, s.r.o. (Packaging) decided to invest in an integrated overall

energy concept which allows to replace a significant share of purchased electricity from fossil fuels by own generation

electricity instead of wasting steam to reduction in reduction valve.

Turning reduction equipment is installed in steam piping with the aim to gain electrical energy within the process of steam

pressure reduction. Pressure reduction is determined by operational needs of the following steam distribution system.

Steam for unit consumption itself is usually reduced from HP part outlet from the parameters of at least 1 MPa, 200oC to

0.25 MPa. This provides a usable isoentropic gradient which can additionally be used in electrical energy production. It is

possible to generate more than 400 kW of power output. Turning reduction generates 1,400 MWh in the period of 3,400

operating hours.

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Turbine type TR 320 Before After Difference

Electricity generation 0 MWh/a 1,400 MWh/a 1,400 MWh/y

Electricity generation of the turning reduction achieves 1,400 MWh/a and is used for own consumption in the company.

CO2 emission savings

CO2 emission savings are calculated using factor 1.17 tCO2/MWh for electricity as per Annex 6 of Decree Nr. 480/2012.

Packaging engineering DEVRO, s.r.o.

Electric energy generation 1,400 MWh/y

CO2 emissions reduction16

1,638 t CO2/y

Reduction of CO2 100 %

Average Pay-back period, Internal Rate of Return

In this case is calculated Packaging engineering DEVRO, s.r.o and the cost shown in the table below are for new

installation a back pressure turbine (turning reduction) which generates 1,400 MWh/a instead of wasting steam to reduction

in reduction valve.

Indicator Value

Investment costs (only boiler and turbine) € 361,786


Annual electricity generation (final energy): 1,400 MWh/y


20 years


18

€ 99,561

Operational costs (including increased consumption of gas, staff and maintenance turbine)

€ 50,658




Discount rate 5 %

16

100% CO2 emission reduction as project generating 920 MWh/y of renewable electric energy 17

The tariffs are determined by the Energy Regulatory Office annually as per decree 165/2012 Coll. There is no regular indexation. 18

Energy tariffs are based on current agreements with customers and amount to 6.67 € /MWh for heat and 58.15 € /MWh for electricity

as per Price decision of Energy Regulatory Office No. 4/2013.

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Indicator Value


Estimate of market volume and potential

Back pressure turbines can be used in all kinds of branches and processes. A new installation is by no means always

necessary when the entire boiler house is modernised or newly planned – existing plants can also be retrofitted with a

power plant in order to realise electrical power generation in-house to optimise the energy balance of a company.

Applications of back pressure turbines

Industrial, District Energy, Commercial, CHP systems

Industrial energy recycling. The recycling of waste heat, low grade by-product fuel or gas pressure drop is

achieved with Rankine cycle technology.

Can be useful for industrial applications with specific thermal demands.

Backpressure steam turbine CHP systems use mature technology, with a long and successful history. The economic

performance is well proven in situations where there is demand for both electricity and large quantities of steam.

As a rule, the investment in such a retrofit is manageable and has a high economic benefit. The economic efficiency of the

CHP plant can be distinctly rose using systematic funding with e.g. CO2 certificates, tax benefits or compensation for

electricity fed into the grid.

The operational lifetime of steam turbines often exceeds 50 years. Maintenance is minimal, so operating and maintenance

costs (O&M) are low. Steam turbines require periodic inspection of auxiliaries such as lubricating-oil pumps, coolers and oil

strainers and safety devices.

4.4.1.3 Organic Rankine Cycle (ORC)


Modernisation of existing boiler house incl. ORC unit installation in location Jevicko in 2014. The existing sawdust fired

boiler was replaced by a new biomass boiler fired by wood chips (capacity 1.16 MW and efficiency 85%). The output of the

boiler will cover the needs of a connected ORC unit to generate heat and electricity in parallel. In total 6,475 MWh/a of

energy will be generated (5,555 MWh/yr. heat – used for the same purpose as before the SP implementation, and 920

MWh/a electricity).

In location Trhove Sviny was installed a new biomass boiler with ORC unit in 2005. Installation a new biomass boiler fired

by wood chips – capacity 2.8 MW and efficiency 80%. The output of the boiler will cover the needs of a connected ORC

unit to generate heat and electricity in parallel. In total 23,800 MWh/a of energy will be generated (19,600 MWh/a heat and

4,200 MWh/a electricity).

ORC Unit Boiler house Jevicko Heating Plant Trhove Sviny

Output of heat 1.16 MW 2.80 MW

Output of electricity 0.15 MW 0.60 MW

Heat generation 5,555 MWh/y 19,600 MWh/y

Electricity generation 920 MWh/y 4,200 MWh/y

Annual utilization ORC unit 6,130 hours 7,000 hours

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Cost item Amount* Unit costs

ORC system 150 kWe € 801,481 5,343 € / kWe

ORC system 600 kWe € 2,885,714 4,809 € / kWe

*excluding 21% VAT

Based on the Consultant’s experience with similar projects, the costs shown in the table above are reasonable as a

renewable energy investment. Unit costs are standard prices for the Czech Republic and year 2014.

Energy savings

In order to reduce electricity purchases the company in Jevicko decided to invest in an integrated overall energy concept

which allows to replace a significant share of purchased electricity from fossil fuels by own generation from renewable

sources.

Energy type Before After Difference

Heat generation 5,555 MWh/y 5,555 MWh/y 0 MWh/y

Electricity generation 0 MWh/y 920 MWh/y 920 MWh/y

Heat generation will remain equal to present because heat consumption will not change. Electricity generation by ORC

system will reach 920 MWh/yr. which will allow replacing the 72% of electricity generation by fossil fuels.

Replaced electricity generation from fossil fuels by RE sources shown final energy

Electricity MWh/a Grid purchase Generation by RE Replaced

final energy - electricity 1,275 920 72%


Calculated using factor 1.17 t CO2/MWh for electricity as per Annex 6 of Decree Nr. 480/2012 of Coll.

CO2 emissions

Boiler house Jevicko Heating Plant Trhove Sviny

Electric energy generation 920 MWh/y 4,200 MWh/y

CO2 emissions reduction19

1,076 t CO2/y 4,914 t CO2/y

Reduction of CO2 100 % 100 %

19

100% CO2 emission reduction as projects are generating 920 MWh and 4200 MWh renewable electricity respectively.

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Average Pay-back period, Internal Rate of Return

In this case is calculated only Boiler house Jevicko and the cost shown in the table below are for new biomass boiler

(capacity 1.16 MW) with connected ORC unit (capacity 150 kWe) due to impossibility to separate operational costs.

Indicator Value

Investment costs (boiler and ORC only) € 1,044,074


Annual electricity generation (final energy): 920 MWh/y

Annual heat generation (final energy) 5,555 MWh/y

Selling price of heat in SP area 39 € /MWh

Selling price of electricity to the public grid (30%) 37 € /MWh

Selling price of electricity to the SP area (70%) 89 € /MWh

State bonus (tariff) for green heat production 6.67 € /MWh

State bonus (tariff) for green electric energy production 58.15 € /MWh


20 years


21

€ 369,966

Operational costs (including wood chips, staff and maintenance) € 230,907




Discount rate 5 %



The ORC is a mature technology for waste heat recovery, biomass and geothermal power, but is still very uncommon for

solar applications. The ORC market is growing rapidly. Since the first installed commercial ORC plants in Trhove Sviny in

20

The tariffs are determined by the Energy Regulatory Office annually as per decree 165/2012 Coll. There is no regular indexation. 21

Energy tariffs are based on current agreements with customers and amount to 6.67 € /MWh for heat and 58.15 € /MWh for electricity as

per Price decision of Energy Regulatory Office No. 4/2013.

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the 2005, an almost-exponential growth has been started. Moreover, systems are mainly installed in the MW heat power

range and very few ORC plants exist in the kW heat power range.

ORC applications in the Czech Republic

Figure 4.1. ORC applications in the Czech Republic

1 Trhové Sviny 7 Moravská Třebová 13 Šlapanov

2 Žatec 8 Strážnice 14 Rybníček

3 Třebíč 9 Břeclav 15 Bečvary

4 Jetřichovec 10 Sedlec 16 Jihlava

5 Horní Suchá 11 Bratčice 17 Žerotín

6 Smolotely 12 Kyselov

The variety of ORC modules is large and can be categorized according to unit size, type of technology, and target

application.

The new ORC unit in Jevíčko that is located in a wood processing plant is the only application in industry.

Other ORC units are realised in (district) heating plants for heating purposes in the residential sector, examples are:

No.1 – district heating plant Trhove Sviny

No.2 – district heating plant Žatec

No.3 – district heating plant Třebíč

Other ORC units are often connected to biogas plants on farms.

Providers of ORC technology

Turboden (Italian manufacturer), supplied in the Czech Republic by Schiestl spol. s r.o., - www.turboden.eu,

http://www.schiestl.cz/

Kohlbach (Austrian manufacturer) – www.kohlbach.at

GE Jenbacher (Austrian manufacturer) – www.jenbacher.com

Triogen (Dutch manufacturer) - http://www.triogen.nl/,

o References: http://www.triogen.nl/references/reference-overview

http://www.turboden.eu/

http://www.schiestl.cz/

http://www.kohlbach.at/

http://www.jenbacher.com/

http://www.triogen.nl/

http://www.triogen.nl/references/reference-overview

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Ormat (US manufacturer) - http://www.ormat.com/

4.4.2 Heat recovery systems


Waste heat can be used on all devices that generate a waste heat transfer medium at a higher temperature, while the

waste heat can be used not only in the device itself, but also for other equipment or purposes (heating, domestic hot water,

etc.). This measure can thus reduce the consumption of any fuel or electricity.

Theoretically waste heat from the appropriate technological equipment in any kind of industrial operation or ventilation of

larger halls can be used. Waste heat can be supplied not only to a lower temperature (by heat exchanger) but also at a

higher temperature (heat pumps, thermal transformers). At temperatures of waste heat higher than about 150°C it is

possible to re-supply not only heat but also electricity (e.g. through ORC).

Use of waste heat must allow specific design of the facility, which produces waste heat - e.g. clear drying air inlet and clear

exhaust air outlet. The problem with some machines is that they do not have a clear inlet for drying air (because many

openings suck air into the machine) and exhaust air is not extracted from one specific point.

In general, it cannot be said that the individual projects on waste heat recovery are always comparable. The differences are

mainly in the layout configuration of source, consumption and method of implementation.

It remains difficult to compare a simple heat recovery from the exhaust of ventilation air into the intake air in one single heat

exchanger with the production of electricity from waste combustion.

The following table shows some typical projects of heat recovery with specific parameters:

Project description

Investment costs

Savings

Specific investment costs per savings

Reducing of consumption

Saved fuel /

energy

CO2 savings

Simple time of return. without

subsidies

1,000 CZK GJ CZK/GJ % t years

Heating of air for a production hall by waste heat

500 423 1,182 0 Natural

gas 23.5 5.8

Installation of a combustion heat exchanger - use of waste heat for heating production halls

2,000 4,730 423 0 Natural

gas 262.8 2.1

Using heat combustion products to preheat the material entering the furnace

2,000 1,785 1,120 0 Natural

gas 99.2 5.5

Heat utilization of degas the unit RTO (regenerative thermal oxidizer) combustion of organic substances with the use of heat

8,800 26,078 337 0 Natural

gas 1,448.8 1.2

Additional cooling of combustion products behind incinerator

500 7,171 70 0 Natural

gas 398.4 0.3

Installing two heat exchangers combustion products / air and air / water

29,000 19,492 1,488 52 Natural

gas 1,082.9 8.1

http://www.ormat.com/

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Project description

Investment costs

Savings

Specific investment costs per savings


Saved fuel /

energy

CO2 savings

Simple time of return. without

subsidies

1,000 CZK GJ CZK/GJ % t years

Installing three heat exchangers combustion products / air. Use of heat from combustion products from heating furnaces

1,700 6,044 281 21 Natural

gas 335.8 1.8

Installing heat exchanger air / water, using heat from printing machines for hot water

350 3,243 108 37 Natural

gas 180.2 0.3

Installing heat exchangers 12,500 16,767 746 25 Natural

gas 931.5 3.4

Use of energy for hot water radiant heating system in a foundry

2,600 2,800 929 8 Natural

gas 155.6 4.8

Installation of the heat exchanger behind a tunnel furnace

6,750 213 31,690 17 Natural

gas 11.8 3.2

Using heat from the preheating and cooling of clinker

242,112 66,193 3,658 19 Electricity 21,512 4.8

Source: expert estimates from the Czech Republic, 2015


The above table shows that it is very difficult to determine the general framework of investment costs.

The adverse effect of the investment could be any aggressive substances in the waste medium or below the dew point

condensation that requires more expensive, corrosion-resistant material heat transfer surfaces of the heat exchanger. This

would mean an additional increase of investment costs.

Energy savings (compared to the baseline situation – without the technology installed)

According to the table above the typical energy savings of heat recovery systems are about 25%.

СО2 emission savings

An amount of 823,444 t CO2 (64,167 t CO2 coal, 102,778 CO2 natural gas, 656,500 CO2 electricity) could be saved

provided that all total energy savings potential quantified in 6) will be carried out. This number, 4.57 PJ, is the total energy

saving potential for heat recovery.

Average Pay-back period or IRR

Generally, the use of waste heat is technically simple and economically in most cases very favourable. The economic

evaluation of waste heat utilization is influenced mainly by the price of fuel which is being replaced or price of electricity.

The extent of payback period is very significant from 0.5 years (e.g. simple water registers installed in the air duct when

recovering heat from natural gas) to more than 10 years (e.g. production electricity from the hot air or combustion products

using ORC).

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The typical projects shown in the table that have a pay-back of 0.3; 1.2; 1.8 years are basically unique and have been

mostly realized already (i.e. there is no potential for such projects anymore). In discussion with experts from the field we

came to a simple payback of new projects in industry of 5 to 7 years.


Based on projects described in 1) and projects, which were carried out in Operational programmes we estimated energy

savings potential for heat recovery systems as follows:

Total energy savings 4.57 PJ, from which is:

0,70 PJ - coke, hard coal and brown coal

1,85 PJ - natural gas

2,02 PJ – electricity

Competitive analysis

The Czech Republic has a wide range of producers of various types of heat exchangers, most producers do not specialize

only in the heat exchanges but generally in thermal technology. Furthermore, there are represented many foreign

producers of heat exchangers.

Several examples of heat exchange producers on the Czech market are:

HENNLICH s.r.o. - https://www.hennlich.cz/

Ventos, s.r.o. - http://www.ventos.cz/

TEDOM a.s. - http://kogenerace.tedom.com/

PBS ENERGO, a.s. - http://www.pbsenergo.cz/

Barriers for technologies introduction

One of the main barriers is often technically difficult installation of waste energy utilization. Companies have concerns

about compliance with the exact process technology of products and maintaining the quality, therefore they do not decide

to install equipment for the use of waste energy so often, even if large amount of waste heat is produced and installation

would be economically very favourable (payback period 3-4 years).

Another barrier is the concern about irreversible contaminating of heat exchangers with dirt from combustion products,

which is in some production technology as yet unproven.

4.4.3 Energy Management Systems, automation and practices

Implementation of energy management using M&T/ESCO method

This section presents a short overview of implementation of energy management and identification of other energy

efficiency measures in five industrial companies in the Czech Republic.

One of the most difficult and also most important stages of the energy management system introduction is setting of

anticipated/targeted consumptions and dependences of energy consumption on monitored variables. Reporting about

energy consumption and costs of main production processes is crucial for energy management.

The close cooperation between staff and provider of technical assistance is needed. This cooperation is supporting the

successful and effective path for development and implementation of energy saving measures based on extensive

experience of the enterprise members and their knowledge of the relevant technology.

Investment costs

https://www.hennlich.cz/

http://www.ventos.cz/

http://kogenerace.tedom.com/

http://www.pbsenergo.cz/

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Investment costs of energy management system implementation are affected by many factors. Size and variety of the

company energy management have the most decisive influence. Energy management system implementation costs are

mostly ranging from 10,000 CZK to 1 mil. CZK22

, except in cases of very small or extremely large energy management

systems.

Pay-back period

The annual operating costs usually vary between 10% - 20% of energy management system implementation costs. The

average pay-back period is ranging from 1 to 4 years. It depends on initial state of energy management and also

ability/motivation of energy management operator.

Some examples of implemented energy management systems by European producers are given below.

Aluminium production

An example manufacturer is a major European and the largest domestic manufacturer of aluminium packaging materials

and rolled semi-products, employing over 800 people from the Bruntál region (east of the Czech Republic). Company’s

main products are aluminium-based rolled products and packaging materials. Technology process is quite energy

demanding and has significant impact on quality of final product.

Identified energy efficient measures:

Melting process reconstruction and control;

Accurate material flow planning for pre-heat;

Building dislocation;

Outside lighting control.


The overall investment costs of the example installation amounted to 1,415,000 USD (with exchange rate at time of

investment - 19.3 CZK / 1 USD, December 2008).

Energy savings

Savings in electrical energy were 4,241 MWh/y and in natural gas 7,744 MWh/y. The total savings from the implemented

measures were 673,700 $ /y.


Calculated greenhouse gas emission savings achieved were 9,684 tons/y.

Average Pay-back period

The average Pay-back period of the investment was 25 months.

Brick manufacturing

The assortment of the example manufacturer includes fireclay bricks, high-alumina bricks, and silica bricks, insulating

bricks, refractory clays and grog, magnetite bricks for night-storage heaters, ceramic chimney pipes, refractory mortars,

mastics and castables.

22

Current exchange rate 26 CZK/1 USD, 27 CZK / 1 EUR

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Company is one of the biggest producers and suppliers of refractory products and raw materials. Manufacture is

located in Velké Opatovice (centre of the country). Company produces and supplies complete or partial linings of the

thermal aggregates, especially for coke ovens, blast furnaces (including hot blast stoves), glass furnaces, electrolysers for

the primary production of alumina and others. The nowadays annual production capacity is 100,000 tons.


Fitting the flap valve to the original location of tunnel oven 3, control (reduction) of draught flue, reduction of

natural gas pressure;

Blocking of individual branches of dust separator when mixer is not running;

Replacing of pressure regulators at compressors, reducing the pressure in the reservoir from 8.5 to 7 bar,

replacement of defective safety valves, reduction of the use of compressed air for clothing or trolley cleaning,

repair of detected leaks.


The total budget for the energy management system implementation, including specialized software and the subsequent

technical assistance at the client’s site was 153,170 USD (with exchange rate at time of investment - 19.34 CZK / 1 USD,

December 2008).

Energy savings

There were more than 25 energy savings measures which were documented in the database of energy saving measures.

Many of the measures were no-less or low-cost organizational and small technical measures. Some investment measures

were also identified and will be implemented. Measures identified within the first months of monitoring and targeting full

operation accounted for over 9% reduction of total energy costs.

Savings in electrical energy were 1,930 MWh/year and in natural gas 3,817 MWh/year. The total savings from the

implemented measures were 260,000 $ /y.


Calculated greenhouse gas emission savings achieved were 1,851 tons/y.

Average payback period

The average payback period of the investment was 7 months.

Kaolin production

The company is the prominent Czech supplier of washed kaolin and kaolin-based products designed primarily for ceramics,

paper and chemical industry.

Nowadays the company includes following activities such as ceramic kaolin, filler kaolin for paper industry, calcined kaolin

and mixtures, plasters, mortars and wall paints, stoneware articles, sanitary and garden ceramics, mining of clays,

processing of bentonite clays, production of cat litters and mining and processing of natural sandstone. The principal base

of raw materials is in the region of Karlovy Vary (West of Czech Republic).


Only monitoring system of energy consumption of demand side.


The overall investment costs of the example installation amounted to 129,700 USD (with exchange rate at time of

investment - 22.20 CZK /1 USD, July 2006).

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Energy savings

Potential for savings guaranteed in electrical energy were 230 MWh and in natural gas 1,020 MWh. The total savings from

the implemented measures were 44,200 USD.


Total sum of guaranteed greenhouse gas emission savings was 303 tons CO2.


The average Pay-back period of the investment was 2.9 years.

Steel production

The Company’s main product range includes carbon, carbon manganese and high-grade alloy structural steels, and, to a

lesser extent, stainless and tool steel. Micro-alloyed structural steel also accounts for a significant part of production. The

Company currently produces round bars with a diameter of 70 to 300 millimetres, square billets of 70 to 165 millimetres

and blooms of 170 to 300 millimetres. The entire production assortment is created using the SBQ bar steel. Before the

Project only monitoring system of energy consumption of demand side were implemented.

Technology process in the company is very energy demanding and has significant impact on quality of final product.

Energy savings and cost reduction was main target of the company top management.

Manufacture is located near Kladno town. The nowadays annual production capacity is 300 000 tons.


Sub-metering system were extended, old meters were replaced;

There was a regular energy management system implemented including setting up of working groups, using of

analysing software tool, and rising of management support.


The overall investment costs of the example installation amounted to 174,500 USD (with exchange rate at time of

investment - 23.8 CZK / 1 USD, December 2005).

Energy savings

Savings in electrical energy were 300 MWh, in fuel 18,800 MWh. The total savings from the implemented measures were

529,100 USD.


Global environmental benefits in total (sum of fuel combustion, electricity, heat and others) were 4,100 tons CO2.


The average Pay-back period of the investment was 3 years for the energy management system with extended sub-

metering installation. New walking beam furnace was going to be installed in 2008.

Brewery

This project was realised in one of the biggest small breweries in Czech Republic. It brews more than 150 000 hl of beer

annually. The original metering system did not allow monitoring of energy with efficient and strategic approach to manage

energy costs and its carriers.

The sub-metering system was slightly extended; new meters were placed to the condensate conduits. Structure of Energy

Cost Centres (ECCs) was proposed based on energy flows mapped already within the energy audit before the project start

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up. New system gathering data about secondary energy consumption was commissioned in spring 2007. Targets for

individual ECCs were agreed with the company in December 2007.


New and modern chillers + heat pump for space heating;

Biogas generation from water treatment plant sewage;

Installation of cogeneration units for biogas firing + electricity generation.


The overall investment costs of the example installation amounted to 1,578,000 USD with exchange rate at time of

investment – 19.34 CZK / 1 USD, December 2008).

Energy savings

The total sum of guaranteed savings, except for the process-related savings was 300MWh. The total savings from the

implemented measures were 11,230 USD.

Electric energy savings were 150 MWh/year, water savings 1200 m3/year and natural gas savings 180 MWh/year. Energy

costs savings were 240,000 USD/year


Global environmental benefits in total (sum of fuel combustion, electricity, heat and others) were 211 tons/ CO2.


The simple Pay-back period of the investment was 6.5 years (78 months).

4.4.4 Water Management Systems

Water management systems in the Czech Republic and EU

One of the widely used methodology for optimising the consumption of water in processes on sites is by introducing

process integration techniques e.g. Pinch Technology. The application of Pinch Technology in chemical industry has

succeeded in waste water savings of up to 60 %. Performance examples for waste water flow reduction:

• Chemicals and fibres 25 %

• Chemicals 40 %

• Oil Refining 20–30 %

• Coal Chemicals 50 %

• Polymers 60 %.

Another example of process water optimisation is from ceramic industry, where the repeated re-use of process waste water

(cleaning water after suitable treatment) in the same process step bring significant water savings. Process waste water

recycling ratios in different ceramic industry sectors:

Wall and floor tiles up to 80 %;

Sanitary ware and household ceramics up to 50 %

The following table shows samples of water management technologies in sectors, which have high water consumption

and/or generate a lot of waste waters:

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Industry sector

Technology name

Project/technology description Investment costs

23 in EUR


PBP in years

Iron and steel

Frequency-controlled pumps and fans

Better and faster adjustment of water flow rates and off-gas flow rates according to the demands of different process conditions

€ 1,241 – 8,000 per frequency control with capacity 11 - 150 kW

Energy savings in electromotive system min. 30%; water savings min. 15 %

2.3

Organic fine chemicals

Water-free vacuum generation

Water-free vacuum generation - by mechanical pumping systems in a closed circuit procedure or by means of dry running pumps

89,500 Water savings over 10 %

1

Chlorine-alkali

Recycling of waste water from other production processes

Recycling salt-containing effluents from other production processes to the brine system of the chloric-alkali plant.

11,000,000 Reduced consumption of salt and water.

2.5 - 3

Dairy (cheese production)

Ultrafiltration for protein standardisation of cheese milk

Production capacity: 25000 t/yr. yellow cheese production; filtration capacity is 65000 l/h.

430,000

Electrical energy 19 kWh/t cheese, thermal energy 49 kWh/t cheese, water 300 l/t cheese

5.9

Sugar Re-use of process water

Reuse of sugar beet water/waste water (flume water, condensate from the evaporation and crystallisation stages)

Site specific Water consumption reduction up to 60 %

3

Sugar Dry transport of sugar beets

Replacement of wet transport by dry transport of sugar beet for pre-treatment

Site specific Water consumption reduction up to 50 %

3

Beer Re-use of bottle pasteurising water

Overflows from the pasteurisers are collected, sent to a cooling tower and returned to the pasteurizer.

162,000

Reduced water consumption by 15 %, chemical consumption by 23 %, and waste water volume by 50 %.

1.25

Pulp Dry debarking with debarking drum

Capacity of about 1300 per 90 % air dry pulp (ADt)/d

15,000,000 for new system; 4 – 6,000,000 for conversion of existing system.

Waste water load decreases by 5 – 10 m

3/

ADt NA

Pulp and paper

Vacuum systems Energy efficient vacuum systems for dewatering

Site specific

Water savings of up to 95% (1,000,000 m

3/

year); electricity savings of 20 – 45%

4

23

Source: EU BREFs and expert estimation in CR

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Waste water treatment (WWT)

Waste water from majority of industry (e.g. food, drink, paper, chemicals) installations requires combination of primary and

secondary treatment techniques. Further treatment may require tertiary treatments to achieve the discharge limits. And

also generated sludge needs to be treated by one or combination of techniques.

The example of WWT plant in sugar plant with capacity 7,500 t of processed beets per day and WWT capacity 3,000 m3/d

- has both anaerobic and aerobic treatment stages. The anaerobic stage has the efficiency for COD removal 88% and

produces 7,300 m3/day of biogas with 80% of methane and calorific value 27 MJ/m

3. The aerobic stage treats the water to

the required COD level (100 mg/l COD). The price for this WWT plant was € 3.5 million in 2011.


The above table shows that it is very difficult to determine the general investment costs since every water optimization

measure or waste water treatment depends on the site specific conditions, existing infrastructure, maintenance and the aim

of each measure.

The adverse effect of the investment in water reuse and recycling is the pollution of the process water which may need

treatment and thus additional increase of investment costs.

Energy and water savings (compared to the baseline situation)

According to the table above only some of the water optimization technologies bring also energy savings. These are

frequency-controlled pumps and fans (energy savings 30 %), ultrafiltration for protein standardization of cheese milk

(energy savings 10 %), vacuum systems for dewatering (energy savings 20 – 45 %).

Water savings of the above listed technologies and measures are in the range of 10 – 95 %. Bigger savings are typical in

pulp, paper, and food and drinks production.

СО2 emission savings

Not relevant for water optimisation technologies and WWT

Average Pay-back period or IRR

The water reuse and recycling economic depends on the following factors:

the water source availability,

price for water (abstraction or supply),

energy (fuel) price,

requirements and possibilities for waste waters’ discharge.

The technologies listed in the above table have payback period from 1 to 6 years.

The implementation of waste water treatment in EU is in majority driven by legal requirements for the quality of the waste

water discharges. Since the waste water treatment requires significant amount of energy it does not have favourable

payback period if any.


The estimation of the above listed technologies applicability in the CR is listed in the following table.

Industry sector Technology name Applicability on Czech market

Iron and steel Frequency-controlled pumps and fans Applied in all plants


Water-free vacuum generation Applied in some plants (less than 50 %)

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Chlorine-alkali Recycling of waste water from other production processes

Not applied in CR (there is only one plant).

Dairy (cheese production)

Ultrafiltration for protein standardisation of cheese milk

Applied in majority of cheese plants

Sugar Reuse of process water Applied in all plants

Sugar Dry transport of sugar beets Applied in all plants

Beer Re-use of bottle pasteurising water Applied in large breweries

Pulp Dry debarking with debarking drum Applied in 20 % of plants

Pulp and paper Vacuum systems Applied in all plants

The implementation of WWT in Czech industry plants is driven by the environmental legislation. Waste waters from any

industry installation has to be either treated to the level set by the water permit or discharged into the public sewerage

system, which is treated by the municipal WWT plant. Generally it can be stated that all large water polluting installations

are operating WWT plant or at least pre-treatment technology either alone or together with other polluting installations on

the site.

Competitive analysis

Producers and suppliers of the water optimization technologies are listed in the following table.

Industry sector

Project/technology name producer/ supplier website

Iron and steel Frequency-controlled pumps and fans

FRECON, spol. s r.o.

Danfoss s.r.o.

ABB

http://www.frecon.cz

http://www.danfoss.com

http://www.abb.com


Water-free vacuum generation

Festo, s.r.o.

Runtech systems

http://www.festo.com

http://www.runtech.fi

Chlorine-alkali Recycling salt-containing effluents to the brine system

ThyssenKrupp Uhde

Pall Corporation

http://www.thyssenkrupp-electrolysis.com/

http://www.pall.com/

Dairy Ultrafiltration for protein standardisation of milk

Membraine s.r.o www.mega.cz

www.ralex.eu

Sugar

Re-use of process water Alfa Laval

Perry Videx

ZVU POTEZ a.s.

http://local.alfalaval.com

http://www.perryvidex.com/

http://www.zvupotez.cz/ Dry transport of sugar beets

Beer Re-use of bottle pasteurising water

Alfa Laval

ZVU POTEZ a.s.

http://local.alfalaval.com

http://www.zvupotez.cz/

Pulp and paper Dry debarking with debarking drum

PAPCEL, a. s. http://www.papcel.cz

http://www.frecon.cz/

http://www.danfoss.com/

http://www.festo.com/

http://www.runtech.fi/



http://www.pall.com/

http://www.mega.cz/

http://www.ralex.eu/

http://local.alfalaval.com/

http://www.perryvidex.com/


http://local.alfalaval.com/


http://www.papcel.cz/

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Energy efficient vacuum systems for dewatering

Runtech systems http://www.runtech.fi

Waste water treatment technologies for various industry sectors are delivered by many suppliers e.g.: ASIO, spol. s r.o.

http://www.asio.cz , FORTEX-AGS a.s. http://www.fortex.cz , Vodatech s.r.o. http://www.vodatech.net

Barriers for technologies introduction

Application of water re-use and water recycling technologies in existing plants is limited by the installations’ layout and

potential savings from lower water consumption and related changes.

Furthermore application of the process water re-use may be limited by the process water contamination and the need for

its treatment before reuse, especially in the food and drink sector.

The main barrier for the application of the waste water treatment processes or complete plant in existing sites is high cost

and limited savings. Nevertheless EU emission limits for waste water which can be discharged in the water sources are

applicable without exception to all polluters.


Examples of technologies application in sectors of industry;

Air-cooled condensers are available either separately or in an assembly compressor cooling device.

Kondenzátor – condenser

Elektrický rozvaděč – electric switchboard

Výparník – vaporizer

Kompresory – compressors

Figure 4.2. Example cooling units with air cooled condenser



Specific investment costs are estimated at 30 – 50 €/kW cooling capacity

http://www.runtech.fi/

http://www.asio.cz/

http://www.fortex.cz/

http://www.vodatech.net/

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5 Current standards in Ukraine

Table 5.1 Country snapshot

Population: 45 million

HDI rank (2014): 83rd of 187 countries

GDP (2014): $ 177 billion (PPP)

GDP/capita: $ 3,933 (PPP)

FDI, net inflows (2014): $ -12,241 million

Investment in energy with private participation (2013): $ 724 million

Ease of Doing Business Rank (2014): 96th of 189 countries

Energy use (2014*): 74 million toe

Energy trade: imports 33 percent of energy used

GDP / energy use: $ 5,04 thousand (PPP)/toe

Electricity price for industry (since 1 March 2015):

1st class consumers (>35kV)- $c 4,8 per kWh

2nd class consumers(<35kV)- $c 5,9 per kWh

Electricity price for households (01-Apr - 31-Aug-2015):

<100 kW/month- $c 1.56 per kWh

100<600 kW/month- $c 2.69 per kWh

>600 kW/month- $c 5.97 per kWh

RE Share of total energy use: 6,9 %

GHG emissions: 390 Mt CO2e

Per capita GHG emissions: 8.5 tCO2e per capita

GHG emissions per GDP 2,2 t CO2e/million $ GDP PPP

Source: IFC24

, WB database25

, Financial portal26

, Enerdata27

, Ministry of Fuel and Energy of Ukraine28

, State Statistics Service of Ukraine29

Growth in real GDP halted in 2012–13 and fell sharply in 2014 against the backdrop of geopolitical tensions. After five

consecutive quarters of negative growth that started in the second half of 2012, Ukraine’s GDP grew by 3.7 percent year-

on-year in the last quarter of 2013 because of a good harvest and a low statistical base. This brought GDP growth to 0.0

percent in 2013 (0.2 percent in 2012). Negative trends in the real sector have deepened in 2014 due to the situation in

eastern Ukraine, developments that were impacted primarily by the conflict, which intensified in the second half of 2014.

Real GDP fell by 6.3% in 2014, but this excludes Crimea and part of the war zone.

Ukraine is one of the largest GHG emitters in the world at 400 MtCO2e per year. It is also one of the least efficient users of

energy, with economic output per unit of energy consumed three times above the EU average. Moreover, 33% of Ukraine’s

primary energy supply is imported, undermining the country’s energy security. As global prices have risen, the Ukrainian

24

Climate-Smart Business: Investment Potential in EMENA, IFC, 2013 25

http://data.worldbank.org/indicator/IE.PPI.ENGY.CD 26

http://index.minfin.com.ua/ 27

https://yearbook.enerdata.ru/renewable-in-electricity-production-share-by-region.html 28

http://mpe.kmu.gov.ua/ 29

http://www.ukrstat.gov.ua/

http://data.worldbank.org/indicator/IE.PPI.ENGY.CD

http://index.minfin.com.ua/

https://yearbook.enerdata.ru/renewable-in-electricity-production-share-by-region.html

http://mpe.kmu.gov.ua/


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government has placed new emphasis on improving the efficiency of its energy distribution and use, as well as diversifying

its energy supply. The country announced major modernization programs for its principal industries - including metals,

cement, paper, plastics. These public initiatives create and enhance the enabling environment to exploit investment

opportunities to upgrade industrial equipment and improve resource efficiency.

In order to develop renewable energy sources, Ukraine adopted the amendments on 01.04.200930

to the Law of Ukraine

“On Electricity Industry” of 16.10.1997 No. 575/97-VR31

.

“Green” tariff is granted to the electricity generated from alternative energy sources (except blast furnace and coke gases,

and for hydro energy – produced only by small hydropower plants), and is effective till 1 January 2030.

The State guarantees that the entire volume of electricity generated from alternative (renewable) sources is bought by the

electric power wholesale market (EPWM) (at the moment represented by the state-owned enterprise “Energorynok”) at the

“green” tariff.

Table 5.2 “Green” tariffs factors as of 01.01.2015

Energy source Formula

applied to

tariff

Tariff for

01.09

€/kWh

“Green”

tariff factor

Peak

hours

factor

Tariff,

€/ kWh

А В С

Electricity generated from

wind energy at the facilities

which installed capacity

does not exceed 600

kW

А·В 0,05385 1,2 - 0,0646

is in the range

between 600 kW and

2,000 kW

А·В 0,05385 1,4 - 0,0754

is over 2,000 kW А·В 0,05385 2,1 - 0,1131


wind energy at the single

turbine which installed

capacity

does not exceed 600

kW

А·В 0,05385 1,08 - 0,0581

is in the range

between 600 kW and

2,000 kW

А·В 0,05385 1,26 - 0,0678

is over 2,000 kW А·В 0,05385 1,89 - 0,1018


biomass

А·В 0,05385 2,07 - 0,1239


biogas

А·В 0,05385 2,07 - 0,1239


solar energy

by land facilities А·В·С 0,05385 3,15 1,8 0,4653

by facilities installed

on building roofs

which capacity is over

100 kW

А·В·С 0,05385 3,24 1,8 0,4459

by facilities installed

on building roofs

which capacity is

under 100 kW and the

facilities which are

installed on building

А·В·С 0,05385 3,33 1,8 0,4265

30

http://zakon3.rada.gov.ua/laws/show/1220-17 31

http://zakon3.rada.gov.ua/laws/show/575/97-%D0%B2%D1%80

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Energy source Formula

applied to

tariff

Tariff for

01.09

€/kWh

“Green”

tariff factor

Peak

hours

factor

Tariff,

€/ kWh

facades regardless of

their capacity

Electricity produced by

micro hydropower plants

А·В·С 0,05385 1,8 1,8 0,1745

Electricity produced by mini

hydropower plants

А·В·С 0,05385 1,44 1,8 0,1396

Electricity produced by

small hydropower plants

А·В·С 0,05385 1,08 1,8 0,1047

Recently, the experts has been discussing feasibility of so high “green” tariffs as it was profitable to sell all own ‘green’

electricity to the network, while for the own purpose to by the electricity from the network. On 27.02.2015, the National

Commission for State Energy and Public Utilities Regulation adopted Resolution No. 49332

setting temporary limits on the

“green” tariff (till 01.04.2015). The Resolution cuts the “green” tariff rates by 50% for all types of generation except solar

energy, with the rate for solar energy being reduced by 55% (the reductions in February were 10% and 20%, respectively).

This decision evoked negative reaction among investors in renewable energy33,34

. It is worth to note that this decision puts

at threat the implementation of the National Renewable Energy Action Plan until 2020. NREAP sets the target: – to achieve

11% share of renewable energy sources in the country’s final energy consumption by 2020, and this value is an

international commitment35

.

So, the most likely scenario is that the limitations of the “green” tariff would be cancelled by the regulatory body.

As such, there are no specific standards as for climate technologies in Ukraine. However, there are requirements for e.g.

cogeneration plants, whose owners would like to sell electricity and heat in the network (Law of Ukraine ‘On combined heat

and power generation (cogeneration) and waste energy potential’, #2509-15, revision dd. 02.03.2014), as well as the

procedure for the establishment of such facilities (Procedure of CHP qualification, enacted by Order of CMU #627 dated

12.06.2013).

5.1 Cogeneration

Co-production of heat and electricity is practiced in Ukraine since long ago. Similar to “electrification” the process got the

name “calorification”. The term “cogeneration” appeared much later.

Structurally, the Power and Heat Plant unit consists of a boiler and turbine. In the former combusted fuel (oil, gas and coal)

produces superheated steam, which is then supplied to the turbine, which, in turn, rotates the rotor of the generator.

Excess steam is removed from the turbine and the heat exchanger is a heat source for water heating. The typical structure

of PHP is shown in Figure below:

32

http://www.nerc.gov.ua/index.php?id=14326 33

http://www.rbc.ua/rus/interview/glava-pravleniya-cnbm-international-corp-1426686898.html 34

http://forbes.ua/nation/1388147-sovsem-zelenyj-regulyator-snizil-tarif-na-energiyu-iz-vozobnovlyaemyh-istochnikov 35

http://eig-engineering.com/en/novosti/60-snizhenie-ili-otmena-zelenogo-tarifa-vybrosit-vetryanuyu-energetiku-ukrainy-za-bort

http://www.nerc.gov.ua/index.php?id=14326

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Figure 5.1 Process flow diagram of conventional Power and Heat Plant

Enterprises built by the state for the production of electricity and heat, have enormous power (thousands of megawatts)

and capable of providing heat and power to the big settlements and enterprises. The share of these enterprises in the

power supply structure of Ukraine is still substantial (~41%).

Often these plants are located on a certain distance from the settlements. Thermal energy from PHP comes to consumers

through the piping with the length from several kilometres (steam) to 20-30 km (hot water). The length of heating piping and

associated losses is a huge disadvantage of central heating.

Currently the energy sector of Ukraine is in a difficult position, in particular because:

extremely high deterioration of heat and power generating equipment (80% of the equipment has been in

operation for over than 40 years and has worked out its 1.5-2 operational resources)

acute shortage of own primary energy resources;

situation with the country's economy, which does not allow making necessary investments.

Lower capacity CHP installations became a main alternative to the large power and heat plants.

In addition to the above, among the driving factors for business to switch to lower capacity CHP installations are:

the deterioration of heat and power supply networks and associated the poor quality of electricity and heat;

the high tariffs for centralized heat and electricity

As of 01 March 2015 in Ukraine it was installed 238 CHP units with the total capacity about 1 GWe, which is about 1.8% of

the total country’s installed capacity36

.

36

http://interfax.com.ua/news/economic/253648.html

Cooling Tower Chimney

TurbineBoiler

Pump Station

Hot water

Consumers

Electricity

Superheated

steam

Water Fuel

Exhaust

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Table 5.3 Number of CHP units installed in Ukraine

Sector Units installed

Total installed capacity, MWe

Share (in capacity)

Agro Industrial 48 75,17 7,3%

cattle farms 1 0,25 0,02%

dairy 3 2,16 0,21%

distillery 3 2,28 0,22%

greenhouse 9 12,67 1,23%

oil & fat 13 23,76 2,30%

pig farms 2 1,35 0,13%

poultries 6 7,33 0,71%

snacks production 2 0,13 0,01%

soft drinks 6 14,98 1,45%

sugar 3 10,25 0,99%

Commercial Buildings 11 10,41 1,01%

Industrial 46 204,13 19,8%

chemicals 6 36,80 3,6%

glass 3 2,50 0,2%

machinery 6 48,90 4,7%

metal works (boilers) 1 6,00 0,6%

metallurgy 13 80,75 7,8%

plastics & polymers 2 12,00 1,2%

pulp & paper 12 12,61 1,2%

other 3 4,58 0,4%

Mining 34 106,15 10,3%

Municipal (district heating)

86 590,11 57,2%

Oil&Gas 11 44,15 4,3%

Transport 1 0,63 0,1%

other 1 0,77 0,1%

Grand Total 238 1031,51

Of the total amount of CHP installations gas fired (reciprocating) equipment takes the lion’s share of the market. Steam

turbines of low capacity (<2 MWe) are not widely used in Ukraine only a few cases is recorded - on oil extraction plants.

There is no information available about ORC units installed in Ukraine.

Existed until recently in Ukraine ‘green’ tariff for the electricity sale to the network, made investments in CHP reciprocating

installations attractive and allowed to reach a payback period of 1-2 years.

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Table 5.4 Installed CHP units split by capacity

Gas fired (reciprocating) units installed


Share (in capacity)

Steam turbines installed


Share (in capacity)

Total 189 (80%) 281.34 27% of total 31 (13%) 327.95 31% of total

of them <2MWe 148 140.66 50.0% 6 9.95 3.0%

>2MWe <6MWe 39 122.84 43.7% 18 97.00 29.6%

>6MWe 2 17.85 6.3% 7 221.00 67.4%

Of the total number of installed gas fired (reciprocating) units, half capacities are using natural gas, others – biogas, landfill

gas and coal gas methane.

Table 5.5 Installed reciprocating CHP units by fuel type

NG fired Units


Other fuels* fired Units


Agro Industrial 25 42.48 14 11.74

cattle farm 1 0.25

dairy 2 1.54 1 0.62

distillery 3 2.28

greenhouse 6 9.86 2 2.06

oil & fat 6 9.56

pig farm 2 1.35

poultry 6 7.33

snacks production 2 0.13

soft drinks 6 14.98

sugar 2 4.25

Commercial Buildings 11 10.41 - -

Industrial 19 26.08 4 2.30

chemicals 3 1.80

glass 3 2.50

machine build 3 12.90

pulp & paper 11 6.61

other 3 4.58

Mining - - 33 94.15

Municipal (district heating)

60 52.75 12 5.89

Oil&Gas 1 4.30 8 29.85

Transport 1 0.63

other 1 0.77

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NG fired Units


Other fuels* fired Units


Grand Total 119 138.06 70 143.28

* biogas, coal bed methane, blast furnace gas, etc.)

There are vast opportunities for energy efficiency improvements in the industry and agro industry.

Case Astarta

In 2013 Astarta commissioned a biogas plant of daily capacity for biogas production up to 150,000 м³. All gas is burned in

the boiler. The steam is partially used for process needs, partially for production of 6 MW of electricity with the use of back

pressure steam turbine.

Case Slavutich

On breweries Slavutich (Carlsberg Group) in Zaporizhzhya and Kyiv as part of waste water treatment facilities are installed

bioreactors of “Enviro Chemie” which produce 2,000 – 4,000 m3. All gas is burned in boiler, hot water is used for process

needs. The waste heat is not used.

Case Akhtyrka heat and power plant

The project of energy efficiency increase in Akhtyrka heat and power plant (LLC "Brock-Energy", Akhtyrka, Sumy region)

was executed in 2008 – 201037

.

On this plant was installed a small power generating unit, which includes a steam turbine P-0.75-0.4 / 0.03 (P-0.75) with a

capacity of 0.75 MWe (manufactured by JSC "Energotech", St.-Petersburg) and small boiler of 10 t/hour of steam with

parameters of 1.4 MPa, 230°C.

On the plant also previously have been installed: steam boilers TC-35u (3 pcs.), boilers KVGM-50 (2 pcs.), and condensed

steam turbines AT-6 and AP-6 with a capacity of 6 MWe each.

During the heating season the turbine P-0,75 is supplied with steam from AP-6 turbine, in the summer time - from small

steam boiler. The economic effect is achieved due to additional electricity generation and water heating from steam source

with lower parameters. The boiler with a vapour pressure of 0.6 MPa at the outlet and super heater (230 C) was replaced

by boiler which produces saturated steam with a standard pressure of 1.4 MPa.

The estimated project payback period was ~ 2.1 years, investments ~ 3,565 thousand UAH. (Based on tariff for "industrial"

gas – 2,570.7 UAH/1000m3, gas for the population - 872.8 UAH/1000m

3 , electricity - 0.7015 UAH/(kWh), including VAT,

actual in 2009).

The trial operation of the turbine was carried out with a number of deviations from the project:

0.2-0.3 MWe in the summer period - only for internal needs of the plant

higher pressure of outlet steam - 0.05 MPa, compared with the calculated 0.03 MPa, due to increased losses in

the exhaust duct

Due to above reasons the real payback period was increased 1.4 times and reached 3 years.

37

Experience of energy conservation projects with the use of steam turbines of small power capacity, by N.Yu. Babak, Energy and Heat

processes and equipment: http://repository.kpi.kharkov.ua/handle/KhPI-Press/1110

http://repository.kpi.kharkov.ua/handle/KhPI-Press/1110

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5.2 Heat recovery systems

In case of waste heat utilisation, due to differences in heat recuperation techniques (“flue gas / water”, “flue gas / steam”,

“flue gas / air”) , the unification issue is a problem which is difficult to resolve.

The main (sub)-sectors of new technologies applications in Ukraine are

Agroindustry:

Bakeries (baking ovens)

Industry:

Metallurgy (metallurgical furnaces)

Cement industry (clinker kilns)

Specific investments for implementing mentioned technologies

Technology Investments, € / kW

flue gas / water 250 - 340

flue gas / steam 350 - 540

flue gas / air 300 - 420

disposal systems with source temperature 60 - 70 °C 850 - 1230

Impact on energy consumption (energy saving effect)

increase efficiency by 5 - 28% for steam and hot water boilers;

increase the efficiency by 20 - 43% for technological lines (bakery, confectionery, ovens)

Impact on CO2 emissions (whether achieved by reducing emissions)

When installing heat exchangers on boilers or CHP in a greenhouses, the CO2 in the daytime is not released into

the atmosphere but goes to the plants feeding (reducing emissions by 40 - 55%);

When installing a heat exchanger of the furnace smelting of non-ferrous metals, it almost entirely limits the

emissions from the combustion and evaporation of paints, varnishes, oils, and epoxy resins. Due to contact with a

relatively "cold" heat exchanger surfaces evaporations are transferred from the vapour to the solid phase and

deposited;

When installing heat recovery in systems "with the transition dew point" partly ~ 7% CO2 is absorbed by

condensate.

Payback period

Technology PBP, years

flue gas / water 0.3- 0.6

flue gas / steam 0.9- 1.9

flue gas / air 0.8- 1.8

disposal systems with source temperature 60 - 70 °C 1.3 - 3.6

In general, it cannot be said that the individual projects on waste heat recovery are always comparable, so the total amount

of heat recovery installation in Ukraine is difficult to estimate. The differences are mainly in the layout configuration of

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source, consumption and method of implementation. So market penetration estimation is based mainly on subjective

opinion of market players.

5.3 Energy Management Systems, automation and practicies

The key precondition for successful introduction of energy management system is energy consumption control and

metering. Although ISO50001 “Energy management systems - Requirements with guidance for use” standard does not

require to launch automated energy consumption control and metering (technical metering), this system, if available at the

enterprise, multiplies effects of energy saving and where corrective measures are taken it provides the enterprise the

opportunity to save more energy resources.

First, terminology should be specified. So, item 3.35 of the Guidelines for Use of Electricity (GUE) establishes the following

requirements: 38

“3.35 Facilities (except apartment houses and inhabited areas) with 150 kW connected capacity of power plants and

monthly average consumption during previous 12 accounting periods for operating power plants or declared power

consumption for new power plants of 50 thousand kWh and more may be equipped with local data collecting and

processing equipment…”

A consumer may join local data collecting and processing devices into an automated system of commercial metering of

consumer electric power.

According to the letter of the National Electricity Regulatory Commission No.5664/19/17-07 of 24.09.2007 “Clarification of

the interpretations of the terms "local data collecting and processing equipment" and "automated system of commercial

metering" in the Guidelines for Use of Electricity”39

, a fundamental difference between the two systems is that the intended

purpose of LDCPE is to collect and transmit primary data. At the same time, ASCMPC may join several LDCPEs into a

system capable of collecting, accumulating, analysing and reflecting the obtained data.

Thus, GUE encourage consumers to use systems for analysis of energy consumption with automated systems of

commercial metering.

It should be noted that the order of the Ministry of Economic Development of 16.09.2014 № 1111 adopted as a national

standard International standard ISO50001:2014 "Energy management systems - Requirements with guidance for use (ISO

50001: 2011, IDT)".

The International Organizations are providing support to the implementation of ISO50001 standard in Ukraine. UNIDO

started implementation of the project “Introduction of Energy Management System Standard in Ukrainian Industry”. The

project aims at contributing to a sustainable transformation of industrial energy usage practices in Ukraine, by putting in

place Energy Management Systems (EMS), along with the introduction and promotion of the Energy Management

Standard ISO50001. The project is funded by the Global Environmental Facility and will be implemented over the period

2014 to 2019.

Barriers

In experts’ opinion, the main barrier is corruption in energy supplying organizations, specifically, non-competitive bidding

requirements. This barrier considerably limits the marketplace of metering devices and systems, since energy suppliers

currently are key purchasers.

Speaking of industrial consumers, the main barrier to introduction of technical metering systems is unwillingness to use

them. Technical metering systems mean capital investments, analysis of collected data, taking corrective measures

(response to energy overconsumption). As a rule, this means for the staff both additional duties and responsibility for

38

http://zakon4.rada.gov.ua/laws/show/z0417-96/page3 39

http://www.oblenergo.odessa.ua/pdf/letter_askue.pdf

http://zakon4.rada.gov.ua/laws/show/z0417-96/page3

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achieving the results, as well as potential dismissal if high savings are achieved (suspected staff’s low performance before

the technical system of energy metering was installed).

5.4 Water management systems

Water consumption minimisation, optimisation and recycling measures and technologies are integrated in production and

support processes, thus it is difficult to compare them and their effectivity. The incentives for introduction of water

minimisation and recycling are increasing water and energy cost.




5.5 Air cooling systems (air cooled condencers)





larger total heat transfer capacity the cooling water tower should be applied – in case of large enterprises greenfield

construction.




players.

Most Ukrainian suppliers and assemblers use equipment manufactured by Alfa Laval, Gunter and SPR.

Based on the information from company “ES Engineering”40

, the total capacity of air cooling condensers installed in

Ukraine is estimated at 92 MW.

5.6 Identified barriers to climate technology transfer in Ukraine

If prior 2005 the main barrier and de-motivator for introduction and development of climate technologies in the Ukrainian

market were low prices for energy and other resources, since 2005 rising energy prices started to be a motivator for the

actions towards increasing of efficiency both for private and state resource users.

Examples from Central European countries like the Czech Republic shows that complete abolishment of price subsidies for

energy carriers was a main factor towards rational use of energy in industry. The creation of the carbon market, setting a

price for CO2 emissions, has potentially the same effect. Here, however, the fluctuation in the CO2 price remains a problem

and is not yet a good guideline for investments in climate technologies.

Still the energy and resource saving as well as CO2 reduction programs are rather company specific in Ukraine. The

development of optimal programs to increase energy and resource efficiency as well as implementation of CO2 reduction

initiatives require high level and complex qualification of in-house personnel as well as outsourced energy auditing

specialism and engineering solutions, on the one hand, and strategic vision of the future development of the company by

40

Complex services on the design, supply, installation and service of thermal engineering systems, http://www.ese.ua/index.php/glavnaya

http://www.ese.ua/index.php/glavnaya

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the owners and managers, on the other hand. In its turn, strategic thinking depends on long-term investment expectations

and climate both on local and external markets.

Corruption and non-transparent procurement are red-flag barriers raised during all interviews the Consultant performed

with the technology providers both international and local. Corruption is mentioned as applicable as for end-users as well

as for mediators (such as power supply companies).

As a sample of legislative incentives and motivators for the market adoption of the amendments dated 2009 to the Law of

Ukraine “On Electricity Industry” on ‘green’ tariff and adoption by Ukraine of ISO 50001 standard in 2014 shall be

mentioned. The order of the Ministry of Economic Development of 16.09.2014 № 1111 adopted as a national standard

International standard ISO50001:2014 ‘Energy management systems - Requirements with guidance for use (ISO 50001:

2011, IDT)’. The International Organizations are providing support to the implementation of ISO50001 standard in Ukraine.

UNIDO started implementation of the project ‘Introduction of Energy Management System Standard in Ukrainian Industry’.

The project aims at contributing to a sustainable transformation of industrial energy usage practices in Ukraine, by putting

in place Energy Management Systems (EMS), along with the introduction and promotion of the Energy Management

Standard ISO50001. The project is funded by the Global Environmental Facility and will be implemented over the period

2014 to 2019.

Since 2014 new barriers challenged the market in a form of lack of political stability, including risks related to the running

military conflict in the East of Ukraine with the developments unpredictable to forecast. Political instability is complimenting

by negative macroeconomic developments that in particular include the following negative influences but not limited to:

Drastic fluctuations of the national currency exchange rate towards foreign currencies and corresponding

unpredictable risks related both for raw material, equipment and technology imports and exports of production and

technologies;

Loss or slippage of usual and large Russian sales market both for end-users from various industry and

agroindustry sectors as well as technology developers and providers and necessity to search and apply for new

markets opportunities.

Specific barriers are related to the problems with the raw materials for some end-users e.g. in food and drinks sector,

namely producers of milk and meat cattle in Ukraine.

Based on Eco questionnaire the Consultant may summarize own and interviewed market players’ vision as of current

barriers and motivators for climate technologies penetration as follows:

What obstacles are stopping your company or organisation from investing in or working with energy efficiency

and renewable energy ?

The top three barriers and motivations Choice 1 (the most common

answer)

Choice 2 Choice 3

Economic and financial (e.g. difficulty obtaining loans, high cost of technology, uncertain financial environment)

Policy/legal/regulatory (e.g. unstable and uncertain policies, problems in getting clearances, import taxations and certification requirements)

Capacity (e.g. lack of skilled personnel to manage more complex technologies, inadequate training to identify and implement technologies, lack of service providers)

From your company's perspective what are the top three economic and financial obstacles to investment or

involvement with energy efficiency and renewable energy technology?

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answer)

Choice 2 Choice 3

Uncertain financial and economic environment (e.g. electricity tariffs, inflation rate, currency exchange rate)

Difficult to obtain loans with terms acceptable for the type of investment

High capital cost of the technologies

From your company's perspective what are the top three market obstacles to investment or involvement with

energy efficiency and renewable energy technology?


answer)

Choice 2 Choice 3

Unstable economic situation

Economy of scale difficult/impossible to be achieved

Lack of market transparency (e.g. What products, services are available and at what price).

From your company's perspective what are the top three policy/legal/regulatory obstacles to investment or



answer)

Choice 2 Choice 3

Corruption

Unstable and uncertain policies

Insufficient enforcement of regulations

From your company's perspective what are the top three capacity obstacles to investment or involvement with

energy efficiency and renewable energy technology?


answer)

Choice 2 Choice 3

Lack of internal capacity to identify opportunities

Lack of service and maintenance specialists

Lack of skilled personnel for preparing projects

From your company's perspective what are the top information and awareness obstacles to investment or


The top three barriers and motivations Choice 1 (the Choice 2 Choice 3

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most common answer)

Poor or lack of information about costs and benefits of technologies

Insufficient demonstration of technology in the country

Lack of agencies, organizations or sources to provide information

Motivations for energy efficiency and renewable energy investments

The following questions relate to Consultant’s perception of motivations to invest in energy efficiency technology and/or

renewable energy technologies.

What, in your view, are the top three motivators to invest in energy efficiency and/or renewable energy in Ukraine

right now?

The top three barriers and motivations Choice 1 (most important)

Choice 2 Choice 3

Reduction of operational costs (energy costs, carbon tax)

Energy security

Existing legal and regulatory requirements (green tariff)

Thinking about your company, what would most motivate investment in energy efficiency and/or renewable

energy technologies?

The top three barriers and motivations Choice 1 (most important)

Choice 2 Choice 3

Operational savings potential

Affordability of technology

Legal and regulatory requirements

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6 Ukraine’s market potential and penetration

According to IFC In the cement and metal industries of Ukraine, the investment potential is estimated at $5 billion each.

Regarding the renewable energy, resource efficiency, and water use, heavy industries investment potential is estimated at

$2.1 billion, power sector modernization at $3.9 billion, biomass opportunities estimated at over $6 billion. The potential for

industrial energy efficiency is estimated at more than $3 billion.

Investment opportunities exist across industry sectors for the replacement and efficiency improvement of industrial energy

equipment and lighting. Over two-thirds of infrastructure and equipment is outdated due to a lack of modernization since

the Soviet era. Investment potential in the metals sector has been estimated at over $1 billion. Natural gas prices in

Ukraine have increased steeply in recent years, making other energy efficiency measures, beyond industry, financially

attractive. For instance, the payback time of changing an old and inefficient boiler to a new efficient one is typically less

than two years, and internal rate of return (IRR) can be over 50 percent.

Overall, IFC estimates put the commercial climate-smart business investment potential in Ukraine at over $43 billion..

Ukraine has tremendous agricultural potential that has a critical role to play in contributing to global food security. In 2014,

agriculture contributed up to 23 percent to the country’s GDP and constituted 36 percent of national exports. However, this

potential has not been fully exploited, due to depressed farm incomes and an inadequate policy framework that has

reduced private investment to below the levels required to modernize the sector.

Examples of ill-advised policy measures include repeated grain export restrictions (most recently in 2010–11, now replaced

by export taxes); interventions in domestic food markets to control prices; overregulated food safety controls that are not

World Trade Organization (WTO) compliant; weaknesses in contract enforcement that have discouraged commodity

financing and risk insurance mechanisms; and an incomplete process of land reform. The Bank, in cooperation with the

International Finance Corporation (IFC), is assisting the Government in developing a sound policy framework and

investment climate in the sector.

Based on major resource potentials, current low penetration, and strong public facilitation, biomass represents more than

two-thirds of the total estimated renewable potential, offering opportunities estimated at over $6 billion. Public support is

strong, and, with an attractive feed-in tariff in place, the biomass energy sector is prepared for intensive development.

The municipal services sector in Ukraine suffers from decades of underinvestment and poor maintenance. The need to

invest in water and wastewater utilities is growing dramatically, and the existing low tariff levels are a major limitation to the

sustainability of these utilities. The need for rehabilitation is exacerbated by the overall high energy consumption in water

production and wastewater treatment. It is estimated that energy intensity in Ukraine is one of the highest in the region.

Improving service delivery through the rehabilitation of infrastructure and the promotion of energy-efficiency solutions offers

the possibility of driving utilities toward financial sustainability while providing improved services.

6.1 Cogeneration market potential and penetration

Among the pre-defined (sub) sectors the most important for the installation of biogas-based CHP are the sugar industry,

breweries and distilleries. Despite the high share of enterprises with installed equipment for the biogas production (83%,

31% and 86% respectively)41

cogeneration is used only on a few of them.

Ukrainian sugar industry is fully privatized. About 70% of the sugar beet produced in vertically integrated holdings

(Agroprodinvest, Ukrros, Astarta, Raiz-sugar, Mriya, etc.). In 2014 it was operational 38 sugar plants in Ukraine42

. Their

production capacities vary from a few thousand to 100 thousand tonnes of sugar per season. Virtually all sugar factories in

Ukraine are of potential interest for the implementation of co-generation.

41

The development of biogas technology in Ukraine and Germany: the regulatory and legal framework, the state and prospects

(http://www.uabio.org/img/files/news/pdf/Razvitie_biogazovyh_technologiy_1.pdf ) 42

http://economics.unian.ua/agro/961581-ukrajina-moje-zbilshiti-virobnitstvo-tsukru-na-34.html

http://www.uabio.org/img/files/news/pdf/Razvitie_biogazovyh_technologiy_1.pdf

http://economics.unian.ua/agro/961581-ukrajina-moje-zbilshiti-virobnitstvo-tsukru-na-34.html

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According to Biomass Association of Ukraine (BAU) in 2009, the potential of CHP for 50 enterprises of the industry was

estimated as 354 MWe. As a fuel for these CHP was considered a biogas produced of beet pulp, molasses, beet tops and

other waste, like roots, substandard beet, etc. The assessment also takes into account the concurrent use of by-products

of sugar production for animal feed, as well as in the brewing, alcohol, bakery and confectionery industry.

Ukrainian beer industry is represented by 36 breweries, 11 of which belong to the five largest market players. 16 breweries

have the potential to implement projects with CHP on biogas with the average capacity of over 100 kWe, the total capacity

can reach 32.2 MWe.

In Ukraine there are more than 80 distilleries, with production capacity of about 60 million dal of alcohol per year. In recent

years it has been involved no more than half of these capacities. Today about 57 plants are operational. All of them belong

to the state enterprise "Ukrspirt". On operational distilleries potentially can be installed biogas CHP with the average

capacity above 200 kWe, the total estimated potential capacity is 39.5 MWe.

The potential capacity is derived based on the typical / average installed capacity for typical representative of the sector


capacity from the market potential.

Table 6.1 Gas fired CHP equipment market penetration in Ukraine and investment potential

(Sub)Sector Total installed,

MWe

Typical capacity,

kWe

Number of enterprises

Total potential capacity,

MWe

Penetration (UA)

Investment potential,

million euro

Agroindustry

Milk Processing 2.16 0.72 467 335 <1% 335

Distillery 2.28 0.76 58 42 5% 42

Oil & Fat 9.56 1.59 507 395 2% 395

Snacks 0.13 0.06

Beverages 14.98 2.50 100 235 6% 235

Sugar 4.25 2.13 40 81 5% 81

Industry

Chemicals 1.80 0.60 567 338 <1% 338

Glass 2.50 0.83 16 11 19% 11

Machine build 12.90 4.30 274 1,165 1% 1,165

Pulp & paper 6.61 0.60 55 26 20% 26

Mining 94.15 2.85 397 1,039 8% 1,039

Oil&Gas 34.15 3.79 119 417 8% 417

Grand Total 185.48 4,083 4,083

Taking into account the average gas-fired (reciprocating) CHP installation cost 1,000 € /kWe, the total investment potential

in Ukraine is estimated at € 4.1 billion.

Table 6.2 (Back pressure) steam turbines market penetration in Ukraine and investment potential


MWe

Typical capacity,

kWe



MW

Penetration (UA)


million euro

Agroindustry

Oil & Fat 14.20 2.03 507 500 <2% 125

Industry

Chemicals 6.00 6.00 567 3,396 <1% 543

Metallurgy 56.00 6.22 150 877 6% 140

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MWe

Typical capacity,

kWe



MW

Penetration (UA)


million euro

Plastics & polymers 12.00 6.00 247 1,470 1% 235

Pulp & paper 6.00 6.00 55 324 <2% 52

Mining 12.00 12.00 397 4,752 <1% 760

Grand Total 106.20 11,319 1,856

The 1 kWe installation cost for steam turbines of 2 MW capacities is about € 250, 6 MW - € 160. The price doesn’t include

cost of boiler and condenser. The condenser is relatively simple and cheap device which can be produced locally. The cost

of a new boiler, on the contrary, can be significant. Therefore, the installation of a steam turbine is economically viable for

enterprises with existing boiler, either as new cogeneration facilities or as upgrade of Soviet-era turbine installations.

The total investment potential in Ukraine for steam turbines is estimated at € 1.9 billion.

6.2 Heat recovery systems

For heat recovery mostly tailor-made equipment is used rather than standard one. Thus, market penetration assessment is

based mainly on subjective opinion of market players. According to Teploenergoresurs (design, manufacturing, supply,

construction, installation, commissioning, maintenance of power equipment, incl. process exhaust gases heat recycling

equipment, http://ter.vn.ua, more than 11 projects for bakeries, fat production and metallurgy):

The market for heat recovery from steam and hot water in all sectors, where they are involved into the process

flow, is developed at 80 - 90%.

With the reference to EU experience, sector of construction materials production (~3,500 enterprises) has big

potential for implementation of modern heat recovery techniques, being currently mastered at <1%.

Special attention is to be paid to bakery sector (>2,000 enterprises), where in recent years a number of heat

utilization related modernizations have been realised, still the penetration level in the sector is estimated by

market experts at ~ 1%.



specific case.

6.3 Energy Management Systems, automation and practicies

According to market player data, Automated Metering Systems (AMS) cover approximately 75% of industrial enterprises.

However, merely 30% of enterprises use the installed AMSs to analyse energy consumption and take energy saving

measures. Therefore, market penetration rate of the energy consumption technical control and metering systems may be

evaluated as follows:

225,0 knMPR

where 75,0n - factor of the enterprises covered by ASCMPCs,

3,0k - factor of the enterprises, where ASCMPCs are utilized for energy consumption analysis and elaborating of

corrective actions.

Market volume

http://ter.vn.ua/

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To determine the size of energy consumption technical control and metering marketplace, we are to define a target user

(potential consumer). Small, medium and large industrial enterprises in the selected industrial sectors may be defined as

target consumers. Micro enterprises are not included, since the number of metering points at these enterprises is small (1-

5) and there is no need to launch the automated system.

Large enterprises – 382.

Middle-size enterprises – 5,651.

Small enterprises – 115,211.

Microenterprises – 103,32243

.

According to market data the cost of metering point is:

Electricity: € 1,000±20%;

Natural gas: € 3,000±20%;

Heat/hot water: € 1,500±20%;

Cold water: € 1,000±20%;

Compressed air: € 3,000±20%.

The cost of metering point depends on number of points, type of meter, precision of measurements.

The tables below demonstrates the evaluation of market volume based on number of enterprises, average number of

different control points on enterprises, penetration rate.

Table 6.3 Number of meters per size of enterprise and market sector

Number of points for control. Large enterprises

Number of points for control. Middle-size

enterprises

Number of points for control. Small enterprises

El-

cit

y

Nat.

ga

s

Hea

t/h

ot

wa

ter

Co

ld w

ate

r

Co

mp

. a

ir

El-

cit

y

Nat.

ga

s

Hea

t/h

ot

wa

ter

Co

ld w

ate

r

Co

mp

. a

ir

El-

cit

y

Nat.

ga

s

Hea

t/h

ot

wa

ter

Co

ld w

ate

r

Co

mp

. a

ir

Agro Industry

Beverages 150 4 10 4 2 30 1 6 4 1 10 1 2 1 1

Bakeries 50 6 4 2 1 20 2 6 1 1 5 1 2 1 1

Milk processing 50 4 10 2 1 50 2 6 1 1 10 1 2 1 1

Oil extraction, Fat production

150 2 6 2 1 50 2 6 1 1 10 1 2 1 1

Sugar 100 2 12 6 2 50 2 6 3 1 10 1 2 1 1

Industry

Building materials (cement and dry mixtures, glass, bricks etc.)

150 4 10 20 4 50 2 6 1 2 10 1 2 1 1

43



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Number of points for control. Large enterprises

Number of points for control. Middle-size

enterprises

Number of points for control. Small enterprises

El-

cit

y

Na

t. g

as

He

at/

ho

t

wa

ter

Co

ld w

ate

r

Co

mp

. a

ir

El-

cit

y

Na

t. g

as

He

at/

ho

t

wa

ter

Co

ld w

ate

r

Co

mp

. a

ir

El-

cit

y

Na

t. g

as

He

at/

ho

t

wa

ter

Co

ld w

ate

r

Co

mp

. a

ir

Basic chemicals, plastics and polymers, fertilizers

150 20 10 10 4 50 2 6 1 2 10 1 2 1 1

Other chemicals 150 20 10 10 4 50 2 6 1 2 10 1 2 1 1

Pulp & Paper 150 4 20 10 4 50 2 10 1 1 10 1 2 1 1

Steel and metals, metal works

400 30 20 100 20 50 4 4 1 5 10 1 2 1 1

Wood working and processing

150 2 20 2 1 50 1 10 1 1 10 1 2 1 1

Pharmaceuticals and Medical equipment

150 2 6 6 2 50 1 4 1 1 10 1 2 1 1

Oil & Gas

Extraction (gas, mining, etc.)

300 10 10 10 20 50 1 6 1 2 10 1 2 1 1

Oil refineries 150 10 20 20 4 50 1 6 1 2 10 1 2 1 1

Table 6.4 Investment potential in EMS per size of enterprise and market sector

EMS investment potential.

Large enterprises, ‘000 EUR


Middle-size enterprises,

‘000 EUR


Small enterprises, ‘000 EUR

Ele

ctr

icit

y

Nat.

ga

s

Hea

t/h

ot

wa

ter

Co

ld w

ate

r

Co

mp

. a

ir

Ele

ctr

icit

y

Nat.

ga

s

Hea

t/h

ot

wa

ter

Co

ld w

ate

r

Co

mp

. a

ir

Ele

ctr

icit

y

Nat.

ga

s

Hea

t/h

ot

wa

ter

Co

ld w

ate

r

Co

mp

. a

ir

Agro Industry

Beverages 150 12 15 4 6 30 3 9 4 3 10 3 3 1 3

Bakeries 50 18 6 2 3 20 6 9 1 3 5 3 3 1 3

Milk processing 50 12 15 2 3 50 6 9 1 3 10 3 3 1 3

Oil extraction, Fat

production

150 6 9 2 3 50 6 9 1 3 10 3 3 1 3

Sugar 100 6 18 6 6 50 6 9 3 3 10 3 3 1 3

Industry

Building materials

(cement and dry

mixtures, glass,

bricks etc.)

150 12 15 20 12 50 6 9 1 6 10 3 3 1 3

Basic chemicals,

plastics and

polymers, fertilizers

150 60 15 10 12 50 6 9 1 6 10 3 3 1 3

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Large enterprises, ‘000 EUR


Middle-size enterprises,

‘000 EUR


Small enterprises, ‘000 EUR

Ele

ctr

icit

y

Na

t. g

as

He

at/

ho

t

wa

ter

Co

ld w

ate

r

Co

mp

. a

ir

Ele

ctr

icit

y

Na

t. g

as

He

at/

ho

t

wa

ter

Co

ld w

ate

r

Co

mp

. a

ir

Ele

ctr

icit

y

Na

t. g

as

He

at/

ho

t

wa

ter

Co

ld w

ate

r

Co

mp

. a

ir

Other chemicals 150 60 15 10 12 50 6 9 1 6 10 3 3 1 3

Steel and metals,

metal works

400 90 30 100 60 50 12 6 1 15 10 3 3 1 3

Wood working and

processing

150 6 30 2 3 50 3 15 1 3 10 3 3 1 3

Pulp & Paper 150 12 30 10 12 50 6 15 1 3 10 3 3 1 3

Pharmaceuticals

and Medical

equipment

150 6 9 6 6 50 3 6 1 3 10 3 3 1 3

Oil & Gas

Extraction (gas,

mining, etc.)

300 30 15 10 60 50 3 9 1 6 10 3 3 1 3

Oil refineries 150 30 30 20 12 50 3 9 1 6 10 3 3 1 3

Table 6.5 EMS market potential evaluation for Ukraine

To

tal

nu

mb

er

of

en

terp

ris

es

Large enterprises Middle-size enterprises Small enterprises

Nu

mb

of

en

t.

Po

ints

/en

t.

EU

R/p

oin

t

Ma

rke

t v

olu

me

,

‘00

0 E

UR

Nu

mb

of

en

t.

Po

ints

/en

t.

EU

R/

po

int

Ma

rke

t v

olu

me

,

‘00

0 E

UR

Nu

mb

of

en

t.

Po

ints

/en

t.

EU

R/

po

int

Ma

rke

t v

olu

me

,

‘00

0 E

UR

Agro Industry

Beverages 783 1 170 1,100 193 15 42 1,167 749 311 15 1,333 6,226

Bakeries 2,110 3 63 1,254 220 41 30 1,300 1,607 839 10 1,500 12,583

Milk processing 467 1 67 1,224 51 9 60 1,150 629 186 15 1,333 3,713

Oil extraction, Fat

production

507 1 161 1,056 114 10 60 1,150 683 202 15 1,333 4,031

Sugar mills 52 0 122 1,115 9 1 62 1,145 72 21 15 1,333 413

Industry

Building materials

(cement and dry

mixtures, glass,

bricks etc.)

3,434 5 188 1,112 946 67 61 1,180 4,829 1,365 15 1,333 27,305

Basic chemicals,

plastics and

polymers, fertilizers

567 1 194 1,273 184 11 61 1,180 797 225 15 1,333 4,509

Other chemicals 1,435 2 194 1,273 467 28 61 1,180 2,018 571 15 1,333 11,410

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T

ota

l n

um

be

r o

f

en

terp

ris

es

Large enterprises Middle-size enterprises Small enterprises

Nu

mb

of

en

t.

Po

ints

/en

t.

EU

R/p

oin

t

Ma

rke

t v

olu

me

,

‘00

0 E

UR

Nu

mb

of

en

t.

Po

ints

/en

t.

EU

R/

po

int

Ma

rke

t v

olu

me

,

‘00

0 E

UR

Nu

mb

of

en

t.

Po

ints

/en

t.

EU

R/

po

int

Ma

rke

t v

olu

me

,

‘00

0 E

UR

Pulp & Paper 1,065 1 188 1,138 300 21 64 1,172 1,560 423 15 1,333 8,468

Steel and metals,

metal works

7,834 10 570 1,193 7,019 153 64 1,313 12,852 3,115 15 1,333 62,292

Wood working and

processing

3,224 4 175 1,091 811 63 63 1,143 4,533 1,282 15 1,333 25,636

Pharmaceuticals

and Medical

equipment

248 0 166 1,066 578 5 57 1,105 305 99 15 1,333 1,972

Oil & Gas

Extraction (gas,

mining, etc.)

1,918 3 350 1,186 1,048 37 60 1,150 2,585 763 15 1,333 15,251

Oil refineries 144 0 204 1,186 459 3 60 1,150 194 57 15 1,333 1,145

Total 23,788 32 12,399 464 32,009 9,459 184,954

At the average penetration level at 23%, the number of potential consumers of energy consumption technical control and

metering equipment is estimated at 10,000, while the total number of metering points is about 175 thousand. In monetary

equivalent, the estimated investment potential for energy management systems in Ukraine can be estimated at € 230

million.

6.4 Water management systems


Table 6.6 WMS applicability benchmark

Industry sector Technology name Applicability on market

Iron and steel Frequency-controlled pumps and fans Applied in all plants

Organic fine chemicals Water-free vacuum generation Applied in some plants (less than 50 %)

Chlorine-alkali Recycling of waste water from other production processes

Not applied in CR (there is only one plant).

Dairy (cheese production) Ultrafiltration for protein standardisation of cheese milk

Applied in majority of cheese plants

Sugar Reuse of process water Applied in all plants

Sugar Dry transport of sugar beets Applied in all plants

Breweries Re-use of bottle pasteurising water Applied in large breweries

Pulp Dry debarking with debarking drum Applied in 20 % of plants

Pulp and Paper Vacuum systems Applied in all plants

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specific case.

6.5 Air cooling systems (air cooled condencers)

The potential capacity is derived based on the typical / average cooling capacity for typical representative of the sector


capacity from potential.

Table 6.7 Air cooling systems market penetration in Ukraine and investment potential

(Sub)Sector Total

installed

, MW

Typical

capacity,

kW

Number of

enterprises

Total

potential

capacity,

MW

Penetration

(UA)

Investment

Potential,

mio euro

Agro Industry

Bakery 0.27 150 1,362 204 <1% 10.41

Beverages (water, beer*) 11.03 200 100 9 55% 0.46

Distillery 3.13 470 58 24 12% 1.45

Vinery 1.82 300 9 1 67% 0.05

Cold storage 7.59 600 400 232 3% 14.41

Confectionery 3.77 300 470 137 <3% 8.23

Oil & Fat 1.87 350 507 176 1% 10.54

Meat processing 41.77 350 882 267 11% 16.02

Fish processing 0.87 50 257 12 <7% 0.83

Fruit & Vegetables processing 0.43 150 357 53 1% 2.71

Milk processing 7.41 400 230 85 8% 5.08

Industry

Metal processing 0.97 150 700 101 1% 5.13

Pharma 2.22 50 100 3 44% 0.19

Plastics & polymers 8.73 300 90 18 32% 1.10

Printing 0.30 50 1,930 96 <1% 6.64

Grand Total 92.16 1,418 83.22

* Without mini-breweries, supplying to a single restaurant.

The investment potential per sector was calculated taking into account the installation cost:

Table 6.8 Unit prices for air cooling systems in Ukraine

Capacity Cost € /kW

Producer Alfa-Laval / Guntner SPR

<100 kW 77 60

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Capacity Cost € /kW

100-300 kW 56 46

300-500 kW 60 -

500-1,000 kW 61 -

2,000 kW 54 -

The total investment potential is estimated at € 83 million.

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6.6 Summary of penetration and investment potential

The considerations above can be summarized as follows.

Table 6.9 Climate Technologies penetration in Ukraine and prospects for investment

Climate Technology

Sector

Co-generation Heat recovery

EMS WMS Air cooling

Gas engine

CHP < 2 MW

Gas engine

CHP > 2 MW < 6

MW

Organic Rankine

Cycle (ORC)

Steam turbine CHP > 2 MW < 6

MW

Agro Industrial

dairy <1% 80–90%* 20% 8%

meat processing 11%

distillery 5% 80–90%* 11%

oil & fat 2-3% 1% 83–91%* 20% 1%

bakeries 1% 20% <1%

beverages 5% 80–90%* 20% 55%

sugar 5% 80–90%* 20%

Industrial

construction materials <1% 20%

chemicals <1% <1% 80–90%* 20%

glass 20% 80–90%* 20%

machinery 1% 20%

metallurgy 6% 80–90%* 20% 5%

plastics & polymers <1% 20% 30%

pulp & paper 20% <2% 80–90%* 20%

wood processing n/a 20%

Mining 8% <1%

Oil&Gas <8% 80–90%*

Pharma 20% 45%

Legend:

Technologies/sectors perspective for investments

* - the high penetration level of heat recovery technologies doesn’t reflect the necessity of modernization in almost every sector, modernization will create the demand on new heat recovery technologies implementation.

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Table 6.10. EU benchmark and key indicators for CT implementation in Ukraine

PBP EU,

years

PBP UA,

years

Penetra-tion EU**

Penetra-tion UA


t/MWh


Invest-ment

potential, bn euro

1. Co-generation:

Gas engine CHP < 2 MW 6 - 10 1 - 2* 3 1-20%

(3) 0.97 8.77 1.147


6 - 10 1 - 2* 3 7% (3) 0.99 22.92 2.937


7 - 10 2 - 4 2 n/a 1.17 n/a n/a

Steam turbine CHP > 2 MW < 6 MW

7 - 10 3 - 4 3 1-6% (3) 1.17 104.41 1.856

2. Heat recovery 0.5 - 10 < 4 2 - 3 <1%

(except boilers)

effect is present

n/a n/a


1 - 4 n/a 2 - 3 22.5%

(1) effect is present

n/a 0.229

4. Water management systems: 1 - 6 n/a 2 - 3 - 4 low (1) not relevant - n/a


3 1-67% (2-3)

not relevant - 0.083

Total 136.10 6.251

* - For electricity sellers, depending on feed in tariff

** Penetration legend: 1-‘introduction of new technology’; 2-‘increased acceptance of new technology’; 3-‘growing importance and application of technology’; 4-‘fully mature technology’

The total assessed investment potential for the eligible technologies is estimated at € 6.25 billion. At that, the CO2

accountable reduction is estimated at 136 million tons per year, which means invested € 44 will reduce CO2 emission by

1Mt/y.