demo gbe factory cases full description

ANNEX II:DEMO GBE Factory cases full description

Green Blue Energy Factory

Co-funded by the Intelligent Energy EuropeProgramme of the European Union

BMW plant in Leipzig. technology supplier: WDP Windanlage GmbH & Co.KG

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The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Union. Neither the EACI nor the European Commission are responsible for any use that may be made of the information contained therein.

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GREEN BLUE ENERGY FACTORY

DEMO collection

Venice, February 2014

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ITALY

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GBE Factory GBE Factory DEMO COLLECTION

The realisation of an executive commercial nZEB (Near Zero-Energy Building) building is proposed maintaining its costs within the average rate of what is usually spent for re-gular industrial/commercial buildings in the area of the Veneto Region (piedmont area of Vicenza and Treviso provinces). The average costs are considered with reference to a building that has an underground floor designated for machine parking activity and three surface floors that will host directional and commercial activities.

The involved area will be around 1.000 sqm.

SUN nZEB Industry/Commerce BuildingProject proposal and feasibility study co-developed by the company Rossi DUE S.n.c. based in Marostica (Vicenza) in collaboration with the team of Unioncamere Veneto par-ticipating in the GBE FACTORY project.

PREFACEThe following pages are dedicated to outline a nZEB project proposal together with the first feasibility study as the outcome of a cooperation and working relationship between the company Rossi DUE S.n.c. based in Marostica (Vicenza) and the team of Unioncamere del Ve-neto. The importance of such proposal is due not only to the amount of RES investments but also to the possibili-ty to export the solu-tion in other industrial/commercial buildings in Veneto and in most of North Italy as well as in other European regions.It is a high value project, since the renewable energy source (PV) plays the main role in a civil/industrial structure which will be “nZEB” (Near Zero-Energy Building), with the goal of reducing the energe-tic consumption to nearly zero and using solar power for the building’s main needs.This feasibility study is not limited to the use of RES sources, but involves the entire buil-ding structure including materials, air conditioning and lighting solutions. Evaluations and proposals are the result of a collaboration with: Construction: VS associati Thermographic analysis: Geom. Dal Cortivo Diego Air conditioning system and PV plant: Ariaclima

Figure 1 - Google map view: Marostica, Vicenza, Italy

Performance objectives and characteristics of the new BUILDING

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The new building will include a commercial storage, offices, executive offices, multifun-ctional rooms for exhibitions/conferences/training courses, meeting room, technical of-fice and concierge room. The roof will host demonstration settings showing renewable energies-related technologies and a panoramic restaurant.

The following picture shows the location.

Building-related data and peculiar functions

Specific criteria will be at the basis of the construction of the new building, given the following needs as specified by the customers:

• High energy efficiency: The building itself and the plants have to be harmonised in order to create a comfortable environment which, at the same time, should be environment-friendly in terms of low heating emissions and high plant efficient.

• SELFCONSUMPTION: The roof of a PV plant will hold supplies of the energy nee-ded for running the entire building and its activities.

• SPACE FLEXIBILITY: Rooms need to be spacious and suitable for possible diffe-rent uses in accordance with future needs. The building has to be suitable to permit the installation of the elevators needed for the easy move of the exposed items. The roof will be designed as an accessible part for the visitors where exhibitions and guided tours will take place. The elevators will cover all storeys – from the ba-sement to the roof – and they will be capacious enough to permit heavy loads. The new headquarters will host educational events together with commercial and cul-tural exhibitions, conferences, guided tours for schools and also for professionals. The main concept is a building in which environment protection, energy saving and living wellness are condensed and perfectly matched.

• NO GAS: Given the willingness of the owners to have no connections with the gas network, the whole plant will have to work and to guarantee hot water using other energy sources: this implies the use of electric energy and the auto-consumption of the energy produced by the PV plant.

• LOW MANAGEMENT COSTS AND LONG-LASTING DURABILITY OF THE BUIL-DING: Low costs have to be guaranteed in terms of energy efficiency as well as maintenance of the structure and of the whole plant.

The characteristic elements of the building can be summarised as follows:

• TYPE OF BUILDING: three over ground storeys, basement and accessible roof;

• TOTAL SURFACE: 1.000 sqm;

• VOLUME: 12.279,00 m3;

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• THERMAL DEMAND (kWh/year): 5.858,00 covered by locally produced electric energy -> Class A+; Epgl= 0.00 kWh/m2year (no gas);

• PV PLANT: 35 kW polycristalline roof PV plant;

• ENERGY STORAGE: no energy storage in the beginning (input of photovoltaic energy with a system of local exchange); at a later stage, a storage mechanism will take place when storage batteries will be affordable.

FEASIBILITY ANALYSIS

CURRENT CONSTRUCTION SOLUTION: in the industrial/commercial areas of the Pede-montana Veneta, there are a lot of prefabricated buildings and concrete framed construc-tions with bricks and non accessible roof.

For this type of constructions, air conditioning systems are possible only with the casca-de condensation boilers with heating devices made from radiators or fan convectors.

Currenty these buildings have the lowest level of energy efficiency required by the law: this is class “C” which means a consumption of 20 kWh/m3year.

In order to evaluate the construction costs for over ground commercial/industrial buil-dings in the above mentioned area, we considered parameters given by the local cham-ber of commerce which suggest that the cost would be around 245/310 €/m3. Further costs are the ones related to foundations, basement, infrastructure costs and all the other details not considered by the chamber of commerce.

Management costs will be the sum of the maintenance expenses for structures, construc-tion and plants and the utility bills for energy costs related to air conditioning (cooling and warming) and hot water production.

CaLCuLaTION OF aIr CONDITIONING aND hOT waTEr prODuCTION

ESTIMaTEDEpg

Volume Estimatedconsumption

Fuel PCI Cost Cost/year

kWh/m3year m3 KWh/anno KwH/m3 €/m3 €

12.279,00 245.580,00 Methane 9,54 0,85 21.880,82

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MAINTENANCE COSTS

For information purposes only, the estimate would be: 0,9 €/m3

NEW PROPOSED SOLUTION - “ARIACLIMA” CONSTRUCTION: In order to create a bu-ilding in line with the described functional needs, where the construction costs will be the average of the ones expected for similar buildings and where the management ex-penses will be fairly low, it was necessary to analyse the environment where the struc-ture will be placed: this study included solar exposure, shadow, winds etc. together with the analysis of the lot, its building capability and planning restrictions.

The project takes into account all the considered factors and the shape of the building will follow the shape of the lot itself in order to have simple, solid silhouettes to minimi-ze the relation volume/surface and, at the same time, create premises with the required characteristics.

At the later stage, the structure of the building and its stratigraphy were chosenA number of construction techniques were considered, such as:

• Traditional massive construction (wall and attic)• Buildings in concrete frame with masonry infill;• Buildings in concrete frame with dry infill;• Buildings in steel frame with dry infill;• Buildings in wood frame with dry infill;• Buildings in X-lam wood with dry stratification of the wall;• Buildings in reinforced concrete with structured septums;

Both structures with dry and “humid” stratifications have been considered, and a com-parison between performance, costs, earthquake safety, versatility, duration etc. has been carried out in line with the customer’s requirements and with the purpose to find a structure which would be simple, versatile, long-lasting and affordable.The final step will be to realize a concrete structure with external piling 25 cm wide walls with external envelope, monostructure piling ceilings, flat roof covering with caulked upside down roof and pillars, also in piling, supporting the ceilings in the light between wall and wall.Although this solution is simple and quickly doable, it reduces the weaknesses of insu-lation with the external coat to the minimum.

Furthermore, the isolating film placed on the external surface of the concrete body al-lows to maximise the thermal mass of the building itself with a consequent less power-ful conditioning system needed.For the external coat and the isolating film, the chosen material is EPS type DOW STYROFOAM™ ETICS which is installed with glue and finished by Mapei. The advanta-ges of this material are:

• The whole package is guaranteed by the supplier: its quality, correspondence and compatibility of the materials of the package;• According to the studies carried out by the supplier, the durability of the isolating

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film is 50 years, estimating its life in 100 years (more than the building life)• The EPS high thermal resistance allows to diminish the isolating film thickness if compared to other isolating materials;• Lighter material and easier installation compared to other materials;• Versatility;• High pressure resistance.

The chosen stratigraphy was evaluated using softwares which measure the hydrother-mal reaction in order to avoid superficial and interstitial condensation.From this evaluation, we could estimate the thickness of other stratigraphic elements in order to minimise the waste of materials and, consequently, the costs. The same process was used to evaluate the stratigraphy of the roof (flat accessible roof), internal walls in proximity of risers, internal walls separating heated and non-heated rooms, elevator compartments, cavities for the trespassing of installations and rain. The thermographic simulation of the building showed that the majority of heat loss was imputable to resi-dual thermal bridges. Once examined, these thermal bridges are:

• Ground connection of the building along the perimeter wall• Connection to the sidewalk of the building along the ground floor• Sockets and ventilation grids• Connection of the pillars and concrete structures of the under ground floor to the ceiling of the first floor• Connection of the envelope to the south wall• Internal and external corners• Connection of the ceilings and internal walls on the perimeter wall• Connection of the coverage railing to the highest ceiling.

The analysis of thermal bridges was carried out using a finite element software that shows the thermal stream flowing in the building and the consequent different super-ficial and interstitial temperatures. Given such results, it is possible to plan a number of corrective actions keeping the costs fairly low. With regard to the transparent elements of the casing, 5 compartments PVC fixtures 70 mm thick have been fitted using a triple neoprene and glass gasket with low emission insulating glass on the north and west sections and low emission triple glass on the south one. This allows to reduce summer thermal loads caused by direct sunlight on the windows installed on the south-facing walls: the triple glass is indeed characterised by a lower grade of solar energy transmis-sions if compared to the double glass. Solar control glass will be used in the entire do-ors and windows system. In addition, an external curtain system is going to be installed in order to further block thermal effect of direct sunlight. Given the relevant results in terms of thermal insulation, an air conditioning system called “cold beams” has been realised given its fully functionality when internal loads are particularly reduced.

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The main characteristics are:

• Total self consumption of electric energy produced by PV plant• Low management and maintenance costs• High levels of winter and summer performance• High comfort• Zone- control management• Durability

The most important part of the whole system is the Air Treatment Unit (ATU): its filters purify and make external air hygienic. Treated air merges into another part of the unit which detects and control the latent heat. The function of ATU is to dehumidify air before letting it flow in the distribution unit.

The distribution unit is made of the so called cold beams which are used for cooling, war-ming, fan, dehumidification. Without fans or movements mechanisms, the air flows thanks only to the pressure generated by the ATU and the particular diffusion for setting the air conditioning in soft modality creating the “coanda” effect.

Temperature is controlled by a series of extremely sensible batteries/ exchangers .

Water temperature in the batteries of ATU and of internal units is controlled by a Polyvalent Unit that can supply both cold and hot water ( Cold Beams are made of 4 pipes). Given the low thermal loads in comfort premises, it is essential to have the possibility to control and manage heating and cooling needs according to the level of exposition and of the number of people in those rooms. Once having set the pressure parameter that Air Treatment Unit (ATU) has to provide to the whole plant, it is much easier to divide the building in sectors. The ATU will maintain the same parameter regardless of how many areas are active. The comfort of every premise is precisely managed and it is bespoke according to air tempera-ture and humidity.

Also the air flow return is supervised by the Cold Beams: the return canalisation arrives at the UTA which through a highly efficient recovery of heat resubmits the Energy in the system before the expulsion of the air. The whole system is constantly monitored in order to have a case history of the efficiency and of the management costs. The protocol of the Cold Beams plant dialogues with the protocol of the Domotic plant so to manage the use of the electrical Energy produced by the PV plant in a regime of total self consumption. The use of sodium batteries is being evaluated in order to have an electricity storage of the excessive PV production. Such storage could be used in the time slots when PV is not producing energy. UTA:

UNITA’ TRATTAMENTO ARIA

RECUPERATORE DI ENERGIA NEW GENERATION EC TECHNOLOGY

• Patented system of rotation control

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• 10-15% higher efficiency if compared to the traditional AC technology • High efficiency levels in big working areas. NEW ENERGY NEEDS FOR AIR CONDITIONING AND ACS PRODUCTION

From the table above, thermal isolation and thermal bridges improvement interventions enable the reduction of the energy needs which will be covered by the PV plant installed on the roof (this is a NO-GAS construction).

TIMING OF THE ACTIVITIES

• PROJECT PRESENTATION AND START OF THE WORKS: 2012• RIUGH COMPLETION OF THE BUILDING: END OF 2013• REALISATION OF EXTERNAL COAT, WINDOWS AND PLANTS: SPRING 2014• END OF WORKS: 2014

CONCLUSIONS

According to the proposed solution, a GBE FACTORY can be realised: it will consist of a multifunctional building with expo area on the roof, run by PV-produced energy, cha-racterised by a minimum use of State-supplied energy and total autonomy in the supply of gas-methane.

THE BUILDING IS THOUGHT TO BE A “SERVICE LAB” WHICH DEMONSTRATES THE PRODUCTS AND THE SYSTEMS FOR THE DEVELOPMENT AND SPREADING OF THE RENEWABLE ENERGY SOURCES AND THE ENERGY SAVING IN INDUSTRIAL AND CIVIL CONSTRUCTIONS. The main critical points are: Elimination of thermal bridges. Choice and fit of windows and doors. Optimisation of the heating/cooling system in accordance with a flexible use of the pre-mises according the different needs.

Volume (M3) Estimatedconsumption(KWh/a)

Estimated EPkWh/m3year

NEW CONSTRUCTION“ARIACLIMA”

12.279,00 3.829,143 3,5

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ANNEXES

SURFACE PLANIMETRIES and CONSTRUCTION DETAILS

Figure 2 - Computer renderings of the company

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1. FERTITALIA S.r.l.

BACKGROUND AND RATIONALE FOR THE PROPOSED PROJECT “DEMO GBEFACTORY”

The aim of the GBE FACTORY project is to promote and spread the use of renewable energy sources in order to produce electricity and heat in renovated or newly built indu-strial or commercial buildings.

Throughout the project, some ca-ses have been collected and descri-bed (exemplary cases and reference cases). They are renewable energy plants already implemented in diffe-rent industrial and commercial fields that could be an example to other businesses wishing to adopt these technologies. Among these, it’s im-portant to highlight a GBE FACTO-RY DEMO proposal of an industrial building that uses, as much as possi-ble, renewable resources to produce energy and it is a replicable model all over Europe. In Italy, the project partner ForGreen S.p.A. capitalizes the experiences of the project and proceed to identify a case which aims to become a significant GBE FACTORY DEMO in the Region of Veneto.

The identified industrial site is that of Fertitalia S.r.l., a company operating in the field of composting of the municipal and industrial waste organic fraction. The company has in-tegrated the composting process with a plant to produce energy from organic waste and uses the roofs of buildings to produce electricity from the sun.

The objective is to integrate, with a project proposal, the use of renewable energy created by the company through the recovery of heat from cogeneration process.

In this way Fertitalia S.r.l. becomes a GBE FACTORY DEMO since it provides: • the generation of both electricity and heat through renewable sources • the ex-ploitation of diversified sources to produce renewable energy • the use, within the company, of the produced renewable energy (this project was proposed directly by ForGreen S.p.A.)• increase in the production of renewable energy compared to how much the com-pany needs, in order to run the entire production platform (or company ZERO CAR-BON or even CARBON POSITIVE)

Figure 3 - Rossi DUE S.n.c. Headquarters

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This GBE Factory DEMO is reproducible throughout Europe, wherever urban waste col-lections are planned. It allows exploitation of the potential energy of the waste organic fraction, through the extraction of BIOGAS before turning them into compost.

The proposals described can be applied for both newly established composting compa-nies or by modifying the processes of companies already operating.

DETAILED DESCRIPTION OF PLANT FORESEEN: BUILDINGS, HOSTED PROCESSES AND ENERGY REQUIREMENTS

Fertitalia Srl, headquartered in Italy, Villa Bartolomea of Verona, was founded in 1994. It boasts a long experience and a consistent “know how” about the disposal of organic wa-ste. This knowledge has led to the realization of a composting process that guarantees an high level of reliability and does not require any interruption of operations, even for maintenance. This guarantee of continuity is essential to ensure the municipalities which collect waste and the citizens, with an high level of order and public health.

Fertitalia S.r.l has the features to be a GBE Factory DEMO because :

• Fertitalia model is replicable in the European territory wherever there is a urban waste collection comparable to a renewable source• it allows to take advantage of the potential energy from the organic waste fraction even before turning it into compost, through the extraction of BIOGAS and the resulting coge-neration of electricity and heat • It allows to exploit the large surfaces of buildings to produce electricity or hot water from the sun • It produces more renewable energy compared to how much the com-

Figure 4 - Exact location of Fertitalia Srl in Veneto

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pany needs, in order to run the entire production platform (company CARBON POSITIVE ENERGY) then the company is not only able to meet its energy needs but it can also pro-duce clean energy to the surrounding community.

The main company activity is the urban organic waste disposal (biowaste) and industrial food waste by the fermentation and the composting of the material. The industrial site Fertitalia S.r.l. covers an area of about 30,000 m2 and it is approximately 150,000 tons of material per year, of which about 120,000 tons come from the collection of municipal organic waste (biowaste or wet fraction) in Veneto, Trentino Alto Adige and Lombardy from food production scraps. The remaining 30,000 tons come from the collection of cuttings and prunings. The disposal process does not require plant to be shutdownded or storage of the waste collected that begins the process of transformation within 24 hours after collection from users. This technology therefore guarantees the continued delivery of waste of Fertitalia

S.r.l. without postponements, or emergency destinations. This has been strongly suppor-ted by the early investors involving an increased initial capital, but willing to stand out for

its reliability, keeping the plant available 24 hours a day, 365 days a year.

The innovation lies in the use of the orga-nic waste to produce biogas and soil im-provers. The problem, associated to this process, lies in the high variability of the incoming waste properties. Just think how fruits and vegetables consumption varies considerably over the seasons, and moreo-ver, there could be a variation due to oc-casional loads from canteens or fruit and vegetable markets.

The company’s energy needs are mainly electric, with an annual consumption of 4,500 MWh necessary to the treatment of air (suction and blowing) and changes in the organic mass.

The heat demand is mainly related to the need to heat the air blown in heaps of organic material during the process of aerobic composting and in small part to the heating of offices. The hot air is now produced by a diesel fired boiler with an annual consumption of 42,000 liters, or about 410 MWh / year. Then there is a heat demand of about 6,500 MWh linked to the production of biogas to maintain digesters at the right temperature. This requirement is met by using part of the heat recovered from the cogeneration engines.

Figure 5 - Photovoltaic and Biogas Plants

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The company produces clean energy through a 1 MWp photovoltaic plant, built on the shed roof in 2012. The energy produced by the photovoltaic system is used in large part to the company electricity needs while the available rare temporary energy surplus is in-troduced into the national grid.

Fertitalia S.r.l. has also created a biogas cogeneration plant of 2 MWe. About 50% of the conferred organic waste follows a traditional process of aerobic composting while the remaining 50%, before the step of composting and maturation, undergoes a phase of anaerobic digestion necessary to extract biogas. The biogas generated is used in two in-ternal cogeneration combustion engines of 1 MWe each, made in 2010 and 2012.Anaerobic digestion is a collection of processes by which microorganisms break down biodegradable material in the absence of oxygen. In this process there is a recovery of the organic substance energy content otherwise lost as CO2 in the classical processes of aerobic stabilization. Once extracted, the matter (or DIGESTATE) is separated from the residual water content, by a mechanical centrifugation following the traditional process of composting mixed with the original organic waste.

Figure 6 - Traditional composting process

Figure 7 - Process with anaerobic digestion

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Concerning affordability, related to the Italian incentive legislation, the electricity produ-ced by the two engines is fed into the national electricity grid and sold to the Manager of Energy Services. The heat produced by a co-generator is currently used in winter to maintain the right temperature in the digesters.

The heat produced by the second cogeneration plant is part of the project: Fertitalia S.r.l. is considering the opportunity to realize a recovery system to heat the air blown into the aerobic stabilization process and to heat the air in the compost storage sheds avoiding the use of the a diesel boiler.

The GBE FACTORY DEMO is inspired to the “ONE to ONE PLUS” model (GBE Factory Guide) with renewable energy production dedicated to business use and the surplus ce-ded to the grid. The amount of energy produced from biogas and roof photovoltaic solar are greater than the consumption and make the company Fertitalia S.r.l. “RENEWABLE POSITIVE ENERGY”.

There is the possibility to transfer the heat recovered from the CHP through a small he-ating network district that connects the company to the nearby units. In this way the DEMO GBE FACTORY model could become “one to many”.

Figure 8 - Electric energy balance

Figure 9 - Thermal energy balance

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FORESEEN GOALS IN TERM OF RES AND ENERGY SAVING WITH THE “DEMO GBEFAC-TORY “ AND ADVANCEMENT BEYOND THE STATE OF THE ART

The project aims to be an example for other organic waste disposal platforms, showing how it is possible to make more profitable the composting process, enhancing waste. The separate organic collection system allows to reduce the emissions of greenhouse gases (such as methane) and the formation of leachate in landfills. Leachate is also rich in microorganisms and pathogens that can pollute groundwater. The project’s goal is to make sure that other organic waste platforms in Europe adopt the proposed solutions becoming “RENEWABLE POSITIVE ENERGY” companies. In fact, the extraction process of biogas before the composting step does not alter in qualitative and quantitative terms the production of the final compost.

The large covered surfaces, necessary to storage raw materials and the already worked compost, are suitable to be used to produce energy via photovoltaic solar panels or to generate hot water.

The particularities of this GBE FACTORY DEMO are:

• Reduction of the network energy consumption by installing a photovoltaic plant 1 MW;• Reuse of civil, agricultural and food industry biomass waste to produce completely natural soil improvers and fertilizers that do not cause desertification contrary to the chemical ones;• Extraction of energy value from the biomass with biogas generation and energy cogeneration plants through a 2 MWe• Livelihood of a green supply chain, involving the on-site withdrawal of fertilizers, saving packaging.• Re-use of the heat produced, with assessment of the possible destinations and savings resulting.

The result of the GBE Factory DEMO is an annual production of approximately 34,000 MWh from renewable sources, of which 1,000 electrical MWhe coming from the photo-voltaic, 15,000 electrical MWhe and 18,000 thermal MWht coming from the two cogene-ration engines,

The goal of the present Project Proposal, is to define the new technical system of heat re-covery and support the implementation with a feasibility study to assess profitability and identify the best possible destination of the heat produced by the combustion of biogas. The solution which, at the moment, seems to be the best is the recycling of heat in the composting process to preheat the incoming air to the platforms of air insufflation for the controlled oxidation. Another solution may be the creation of a small heating network district for a group of houses close to the industrial site.

BENEFITS FOR THE INVESTOR FROM THE GBE FACTORY AND POSITIVE ENVIRONMEN-TAL IMPACTS

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The advantage of the GBE FACTORY DEMO project is the integration of the traditional composting company activities, with the production and sale of electricity and heat from renewable sources. In this way, the company, in addition to the earnings of composts pro-duction, is able to achieve savings from the internal consumption of energy gaining also from the sale of excess energy. The photovoltaic system on the roof, built in 2012 with a cost of about 1.4 million euro, with the incentive benefit, has led to a return on investment in 7 years and an IRR of 16%.

The investment to date is affected by the photovoltaic incentive policies present in each European country. The falling price of equipment installation and the availability of large surfaces on the roof provide a positive return on investment. The use of biogas resulting from the manufacturing process has involved an investment of approximately € 6 million with a payback of 3.5 years since the plant has been able to benefit from the incentives and an IRR of 26%.

With regard to the environmental aspects, it can be said that the plant 1 MWp photovol-taic system on the roof, due to a power production of about 1,000 MWh per year, allows an annual saving of 500 tonnes of CO2. The 2 MW biogas plant produces about 15,000 MWh electricity per year, allowing an annual saving of 7,500 tonnes of CO2. The emis-sions of the cogeneration engine would in any case release into the atmosphere from the organic fraction of the waste through the volatilization of carbon in the air.

Project Proposal: Fertitalia s.r.l want to evaluate the possible use of the thermal energy produced by one of the biogas co-generators. The thermal energy made available by the two endothermic engines is approximately 18,000 MWh per year. Part of this thermal energy, about 6,500 MWh, is self-consumed to keep the digesters at the correct tempe-rature for anaerobic digestion. The available net thermal energy is therefore approxima-tely 11,500 MWh per year. The heat demand is related predominantly to the need to heat the air blown in the heaps of organic material during the process of aerobic composting and in small part to the heating of offices. The warm air now is produced by a diesel fired boiler with an annual consumption of 42,000 liters, or about 410 MWh / year. The annual cost to supply diesel is about 57,000 € / year. The feasibility study examines the re-use of heat generated from biogas engines to replace diesel. It is clear that the company’s total heat demand could be completely covered by the recovery of the net heat generated by the two available endothermic engines fueled by biogas. In this way also the costs for the supply of diesel fuel should be reduced to zero with a saving of 57,000 € / year.

Concerning the environmental aspects, it can be said that the intervention of the heat recovery reduces the use of diesel to a minimum and allows an annual saving of 110 tons of CO2.

EXHAUSTIVE DESCRIPTION OF PROPOSED SOLUTIONS AND DESIGN ALTERNATIVES EXAMINED

• Generation of BIOGAS used for the cogeneration of electricity and heat

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The processing cycle begins with the collection phase once obtained the documentation accompanying the load composed of: chemical analysis in course of validity, existing con-tracts, authorization to transport, completeness and correctness of the waste identifica-tion form, compliance with the European waste Code catalog set out in the authorization. The waste thus collected and weighed, is recorded during the preparation of the mounds ensuring the traceability of the finished product in the market. Approximately 50% of the material is triturated and sent to the digesters, diluted with water. Inside the digesters the material remains for about 30 days to allow the anaerobic digestion process and the extraction of biogas. Each year it produces about 6.5 million Nm3 of biogas with methane content of 60%. The biogas produced from the anaerobic digestion, filtered and desulfu-rized, is sent to two endothermic engines of 1 MW power each, working at full speed for about 90% of the time available.

The residual material (or digestate) is separated from the water content, by mechanical centrifugation, and follows the traditional process of composting mixed with the original organic waste . The composting process involves the material unloading in the areas of receipt (closed and vacuum in order to prevent bad odors), mixing and treated depen-ding on the type of waste according to the relevant regulations (DGRV 568/05).

The material is fermented in heaps on the platforms, through which air is injected to en-sure the requirement of oxygen to microorganisms. This process occurs without the ad-dition of fermentation incentive, but maintaining the optimum conditions of process and takeing place in warehouses kept in vacuum to avoid odors outside. This “heaps” phase lasts about 15 days, during which the piles remain at a temperature of 55-60 °C to sanitize the mass and they are turned several times in order to standardize ventilation and humidi-ty of the biomass. After about two weeks of bio-controlled oxidation, the organic fraction has achieved a good degree of stabilization and it is transferred to the maturation zone, where over the ensuing 45 days, the agronomic properties are refined even in conditions of depression. In the end the material is sieved to make it marketable and to deliver it di-rectly to local farmers who collect it.

All the gas coming from the suction system, are conveyed and subjected first to a scrub with water and subsequently sent to a biofilter. Despite the administration of a biofilter it is very complicated and also subject to strong variability, unpleasant odors are not no-ticed in the company surrounding area, to confirm the goodness of the system manage-ment of purifying gas streams..

• Generation of electricity from photovoltaic system

The photovoltaic system is located on the roof and supports the company’s electrical demands. The electrical rating is 998.64 kW, covers an area of about 7000 m2, has 4,161 polycrystalline silicon modules of 240 Wp nominal power unit and 33 inverter to an avera-ge annual production of 1,000 MWh. This plant was built in order to reduce the electricity costs supported by the company: to date this system covers 20% of the total company electric consumption. The production of solar electricity can’t be programmed and it is exclusively focused during the day, so it is always necessary to provide the connection

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with the national power grid to meet the exceeding energy needs and to be able to enter any temporarily production excess

• Use of heat from cogeneration endothermic engines (PROJECT PROPOSAL)

The ultimate goal of this project is the re-use of heat produced in large quantities from cogeneration engines that now is not used. In particular, the idea, considered realizable, concerns the replacement of the oil burners that today heat the air blown in the heaps pushed, during the oxidation phase, in order to limit the moisture in the shed.

The thermal energy made available by the two endothermic engines is approximately 18,000 MWh per year. Part of this thermal energy, about 6,500 MWh, is self-consumed to keep the digesters at the correct temperature for anaerobic digestion.

The thermal energy available is therefore approximately 11,500 MWh per year. The heat demand is related predominantly to the need to heat the air blown in the heaps of orga-nic material during the process of aerobic composting and in small part to the heating of offices. The warm air is now produced by a diesel fired boiler with an annual consumption of 42,000 liters, or about 410 MWh / year.

The annual cost to supply diesel is about 57,000 € / year. The feasibility study examines the re-use of heat generated from biogas engines to replace diesel. It is clear that the company’s total heat demand could be completely covered by the recovery of the net heat generated by the two available endothermic engines fueled by biogas. In this way also the costs for the diesel fuel supply should be reduced to zero with a saving of 57,000 € / year. Concerning environmental aspects, it can be said that the intervention of heat recovery reduces to a minimum the use of diesel and allows an annual saving of 110 tons of CO2.

The investment to achieve the project includes the installation of heat exchanger to re-cover the heat generated by engines and in particular from the circuit of lubrication oil, and the water cooling circuit and also from the exhaust fumes. We must also evaluate the pipeline costs to transport the carrier fluid from the engines up to the blowing platforms. The estimated cost is about € 120,000 and the maintenance cost of the exchangers is estimated at 7,000 euro / year. The pay back of the operation would be 2.5 years.

WORK PLAN WITH A GANTT REPRESENTATION AND A W.B.S.

The work plan includes:a) Feasibility Study: detailed analysis of the thermal needs in terms of load curves, requi-red temperatures and type of heat distribution. It is also necessary to analyze the thermal loads made available by combustion engines in the heat recovery from the flue gases and from the cooling circuit of engines.

b) Project proposal: technical proposal to the recovery of heat from the flue gases and the cooling circuit of engines, to convey heat to sheds and offices and also to distribu-

• 22 • • 23 •


te the heat itself. The technical solution must be supported by an economic ex-penditure forecast.c) Supplier search and completion of the authorizations: once validated the technical solution, it begins the process to obtain the authorizations to build heat recovery. In this stage, there is the research of the best suppliers and the research of funding from banks and ter-ritorial development organizations.

d) Implementation of the works: the last phase involves the construction of faci-lities, the test and the commissioning.

Figure 10 - Areal view of the plant

Figure 11 - Implementation of the works

• 24 • • 25 •


INVESTMENT aNaLYSIS aND FINaNCIaL pLaNGeneration of BIOGaS used for the cogeneration of electricity and heat

project Cost Estimate: Item Amount in EUR

Total project cost 6.000.000

revenue/Savings after Operation: BIOGAS Electricity GrantO&M Cost

2.100.000- 350.000

Forecast Financial 10 years IRR (Internal Rate of Return)26%

Simple pay-Back period without inflaction rate3,5 yr.

Generation of electricity by photovoltaic system


Total project cost 1.400.000

revenue/Savings after Operation: Electricity SavingPV Electricity grantO&M Cost

150.000202.000- 25.000



use pf heat from cogeneration endothermic engines (prOJECT prpOSaL)


Total project cost 120.000

revenue/Savings after Operation: Oil SavingO&M Cost

57.000- 7.000



• 24 • • 25 •


2. Cantina Sociale di Castelnuovo s.r.l.

BACKGROUND AND RATIONALE FOR THE PROPOSED PROJECT “DEMO GBE FACTORY”

The aim of the GBE FACTORY project is to promote and spread the use of renewable energy sources in order to produce electricity and heat in renovated or newly built indu-strial or commercial buildings.

Throughout the project, some cases have been collected and described (exemplary cases and reference cases). They are renewable energy plants already implemented in different industrial and commercial fields that could be an exam-ple to other businesses wi-shing to adopt these techno-logies. Among these, it’s important to highlight a GBE FACTORY DEMO proposal of an industrial building that uses, as much as possible, re-newable resources to produce energy and it is a replicable model all over Europe.

In Italy, the project partner ForGreen S.p.A. capitalizes the experiences of the project and proceed to identify a case which aims to become a significant GBE FACTORY DEMO in the Region of Veneto.

The identified industrial site is Cantina Sociale di Castelnuovo S.r.l., one of the most impor-tant winery consortium of the whole region. The company has been planning since 2010 the recovery of bioenergy from grape pruning and the Presidents are now determined to proceed with an updated economic evaluation for the creation of the process.

The objective is to develop a project for the recovery of the renewable energy available in the wood from pruning to produce heat by combustion or piro-gassification.

In this way Cantina Sociale di Castelnuovo S.r.l.becomes a GBE FACTORY DEMO since it provides: • the production of heat and cold through renewable sources, otherwise non exploited • the increase in the efficiency of the production process • the use, within the company, of the produced renewable energy (this project was pro-posed directly by ForGreen S.p.A.) • the reduction of the volume of wood wastes that would be otherwise discharged

Figure 12 - A view of Cantina Sociale in Castelnuovo di Garda

• 26 • • 27 •


This GBE Factory DEMO is reproducible throughout Europe, wherever winery consortium exists. It allows to exploit the potential energy of the waste wood, through the combu-stion or the piro-gasification of the biomass.

The proposals described can be applied for both newly established winery companies or by modifying the processes of wineries already operating.

DETAILED DESCRIPTION OF PLANT FORESEEN: BUILDINGS, HOSTED PROCESSES AND ENERGY REQUIREMENTS

Cantina Sociale di Castelnuovo Srl, he-adquartered in Italy, Castelnuovo del Garda of Verona, was founded in 1958. It gathers a long and consolidated expe-rience in winery and its strength is based on the strong network of more than 250 associates. This strength points led the Company within the leader wineries of the north Italy and to the certification of the areas of Bardolino, Custoza and Lu-gana.

Cantina sociale di Castelnuovo s.r.l has the features to be a GBE Factory DEMO because :• its model is replicable in the European

territory wherever there is a winery or wine factory • it allows the recovery of wood from grape pruning that would be otherwise discharged • it reduces the fuel consumption for heating and cooling processes • the eventual integration of the piro-gasification for wood valorization, would make Can-tina Sociale the first user within a winery contest among Italy.

The main company activity is the production of wine: the most important wine produ-ced in this facilities are Lugana, Custo-za, Bardolino and Bardolino Superiore. Nowadays Cantina Sociale counts more than 250 associates with more than 1200 hectars of vineyard surface. Every asso-ciate provide its grapes to the central facilities where the production process takes place. Every year the winery tran-sforms more than 16.000 tons of grapes into wine: about 75% of this grapes come from Denomination of Controlled Origin lands which is one of the most important Italian certifications for wines.

Figure 13 - Exact location of Cantina Sociale

Figure 14 - View of a vineyard of Cantina Sociale

• 26 • • 27 •


The innovation lies in the utilization of the wooden biomass that is produced after grape pruning, and represents a huge energy resource for the consortium.The company’s energy needs are mainly electric, with an annual consumption of 1,583 MWh necessary to cool down rooms of grapes and wine processing, handling of grapes and wine especially during the fermentation period that is usually in the months of Sep-tember and October.

The heat demand is mainly related to the need to heat the steam up for sterilization and washing processes and to heat of-fices. This requirements need two dif-ferent enthalpic levels for hot water: for sterilization and washing processes low pressure (0.6-0.9 bar) steam is used, while hot sanitary water is used for hea-ting up offices during cold seasons. This heat demand is provided by two diesel fuel burners. The diesel consumption is 26.000 liters annually for the domestic diesel and 37.000 liters for the agricul-tural diesel for a total thermal energy production of 410 MWh/year. The coo-ling energy demand is related to tempe-rature control for wine and must during stabilization and storage period and the temperature set point for the ambient temperature is 15° C. The cooling ener-gy is required only from May to October and the measured requirement is 1100

MWh/year, which is obtained with two refrigerating units.

The utilization of the residual biomass from grape pruning would allow the saving of 48.200€ and 98.500€ for the fuel expenses of heat and cold production, respectively. The total savings per year would be 146.700€ for fuel purposes.

The project proposal aims to the production of thermal energy for heat and cold purposes via biomass combustion. The requirements of the winery are 410 MWh/year for heating energy and 1100 MWh/year for refrigerating energy. An assessment on the productivity of the field is now required: we will define wood chips as a fine cut wood at 30% humidity in weight. We will start from a couple of assumption: the first one is that the productivity of wood is 1.2 tons of wood chips/hectare and a calorific value of 3 MWh/ton of wood chips. With these assumptions, the required vineyard surface is about 450 hectare, while the consortium has 1200 hectares among all its associates. Table 1 represents the comparison between the available energy in the fields and the required thermal energy for make the winery working. This Project proposal aims to consider also the piro-gassification of the biomass. Piro-gassification is particularly indicated for low quality biomass, to produce Hydrogen, Carbon Monoxide and Carbon Dioxide from Organic solids such as coal, tar, char and biomass.

Figure 7 - Process with anaerobic digestion

• 28 • • 29 •


Figure 16 - Demand vs availability

The process would comprise both the heat and the cold production via an absorption plant. This process has already been developed and has spread all over the industrial facilities that requires both heat and cold. The energy production may be done in two different ways: biomass combustion and piro-gassification of the biomass. Attention will be focused on the combustion, but an economic overview on the piro-gassification will be also provided.

The GBE FACTORY DEMO is inspired by the “ONE to ONE PLUS” model (GBE Facto-ry Guide) with renewable energy production dedicated to business use and the surplus ceded to the grid. The amount of energy that would be produced from biomass would be greater than the consumption and that would make the company Cantina Sociale di Castelnuovo “RENEWABLE POSITIVE ENERGY”. To use all the energy produced from the biomass recovery, a system of district heating may be implemented to provide heat to the close factories.

FORESEEN GOALS IN TERM OF RES AND ENERGY SAVING WITH THE “DEMO GBEFAC-TORY “ AND ADVANCEMENT BEYOND THE STATE OF THE ART

The project aims to be an example for other winery consortium, showing how it is pos-sible to make the process of wood recovery more profitable, enhancing the energy effi-ciency of the whole process of wine production, and potentially allowing a cost reduction of wine production. Wood recovery from vineyard allows the reduction of diesel fuels, the reduction of the environmental impact and to become a virtuous model for other consor-tium. The project’s goal is to make sure that other winery consortium in Europe adopt the proposed solutions becoming “RENEWABLE POSITIVE ENERGY” companies. In fact, the wood recovery represents a great example of energy independence that is the core idea around the “Carbon-zero buildings” project development.

The peculiarities of this GBE FACTORY DEMO are:

• Reduction of the fuel for thermal energy purposes;• Reuse of agricultural biomass waste volume reduction;

• 28 • • 29 •


• Extraction of energy value from the biomass with thermal energy production.• Re-use of the heat produced, with assessment of the possible destinations and savings resulting.

The result of the GBE Factory DEMO would be an annual production of 4000MWh/year that will be divided into heat and cold production.

The goal of the present Project Proposal, is to define the logistics and the organization of the wood recovery from the vineyards and evaluating its productivity in terms of thermal energy. The solution which, at the moment, seems to be the best is the gathering of the wood biomass into square bales, that are easy to be carried and moved into the rows of the vineyards.

Later the wood has to dry during the summer and would be later available for chipping, to make easier its charge into the burner. Another option would be the piro-gassification of the wood to produce syn-gas, which is a highly valuable fuel that would separate pro-blems of solid burning from the combustion phase of the produced gas. Piro-gassification would be just an additional stage to the transformation process of biomass to energy. In the first stage the piro-gassificator heats the biomass up to 300°C at first, to make the pyrolisys process starts: in this phase the biomass is transformed into pyrolisys oil. The temperature is then increased to transform it into syn-gas with high concentration of hydrogen and carbon monoxide.

BENEFITS FOR THE INVESTOR FROM THE GBEFACTORY AND POSITIVE ENVIRONMEN-TAL IMPACTS

The advantages of the GBE FACTORY DEMO project are to integrate the traditional wine company activities, with the production and sale of heat from renewable sources. In this way, the company, in addition to the earnings of the wine production, is able to achieve savings from the internal consumption of energy gaining also from the sale of excess energy.

The actual costs for the thermal energy are 48.200€ for heating offices and the process heat and is obtained with two different generators for the two heat destinations respec-tively.

The cost for cold production is 98.500€ with two different cold generators. The recovery of all the wood from vineyards would provide a production of 4000 MWh/year of which just 1500 MWh/year are required to accomplish the energetic demand of the winery. This evidence means that more than the half of the available energy can be sold to surroun-ding facilities and factories. Project Proposal:

Cantina sociale di Castelnuovo Srl wants to evaluate the possibility to reuse the wooden biomass lying on the ground of the vineyards to produce its own thermal energy require-ment and to sell the excess to surrounding facilities.

• 30 • • 31 •


The thermal requirement is mainly for cold production for cooling process rooms and storage rooms and that justifies the idea for an absorption thermal plant.

The cooling demand is 1100 MW/h. Heating energy requirement is 410 MWh/year with a correspondent diesel fuel demand of 63.000 litres/year. The annual cost to supply diesel is about 48.200 € / year.

The feasibility study examines the re-use of heat generated from wooden biomass. It is clear that the company’s total heat demand could be completely covered by the recovery of the net heat generated by the available wooden biomass. In this way also the costs for the supply of diesel fuel should be reduced to zero with a saving of 48.200 € / year.

Concerning the environmental aspects, it can be said that the intervention of reutilization of the biomass potentially avoids the use of diesel and allows an annual saving of 150 tons of CO2.

EXHAUSTIVE DESCRIPTION OF PROPOSED SOLUTIONS AND DESIGN ALTERNATIVES EXAMINED

• Thermal energy production from wooden biomass from grapes (PROJECT PRO-POSAL)

The ultimate goal of this project is the re-use of the wooden biomass produced in large quantities from vineyards. In particular, the idea, considered realizable and already imple-mented in other locations, concerns the replacement of the oil burners that today provide the heat-demand of the buildings. The wood would be gathered after the pruning period in march and stored in the shape of bales in various storage places or at the edges of the vineyards. The storage period is meant to reduce the humidity contained in the wood that is between 40% to 45% when the wood is lying on the ground.

This storage and drying period should last until the end of the summer when the humidi-ty contained into the wood decrease down to 20-25%. Wood is now ready for the chip-ping process, when the integer branches are cut into small pieces (length• 5-10 cm) and make the wood ready for burning into a furnace. The chipping machine is quite expensive (about 125.000€) so a “lend or buy” analysis should be made to understand whether the machine should be bought or just borrowed a few times per year. The storage for bales should be displaced in a few locations, to avoid the immobilization of a huge surface for storing the wooden biomass that still has a very low density.

Then the bales are usually kept at the edge of the vineyard during the summer and part of them are chipped during fall. The furnace must be adapted for this kind of biomass burning because of its irregular size and shape and it must have a removal for ashes and other solid residuals. The furnace is charged continuously through a cochlea, carrying chipped wood from the storage. The so-generated heat will be used for heating and co-oling purposes via a cogeneration system made consisting in the furnace and an absorp-tion thermodynamic cycle, to produce cool thermal energy starting from heat.The thermal energy available with this process will cover all the thermal energy demand

• 30 • • 31 •


of the buildings that consist of 1510 MWh/year. The diesel fuel saved with the biomass combustion will generate an annual saving of 48.200€/year for heat production from diesel-fuel combustion and 98.500€/year for cold production from biomass. The annual money saved would then be 146.700€/year with a correspondent CO2 emission preven-ted of 150 tons/year. The estimated pay-back period is between 5 and 6 years.

• Piro-gasification of the biomass

One more option, beyond combustion, is the piro-gasification of the wooden biomass. The process consists on the transformation of the organic biomass into pyrolsys oil and then this oil is gasified to produce a syn-gas enriched in hydrogen and carbon monoxide. The advantage of this technique besides the combustion is the division of the energy re-covery into two processes. The liquefaction is usually a dirty process but that makes the gasification and the combustion of the syn-gas to stay clean. During the combustion of the wooden biomass instead, inefficiency linked to the non-homogeneous heating pro-perties of the biomass and to the different size of the wood must be acknowledged.

WORK PLAN WITH A GANTT REPRESENTATION AND A W.B.S.

The work plan includes:

a) Feasibility Study: detailed analysis of the thermal needs in terms of load curves, requi-red temperatures and type of heat distribution. It is also necessary to analyze the thermal loads and their variation during the year

b) Project proposal: technical proposal to the recovery of energy from the wooden bio-mass recovered from the vineyards. The technical solution must be supported by an eco-nomic expenditure forecast.

c) Supplier search and completion of the autho-rizations: once validated the technical solution, it begins the process to obtain the authorizations to build the process. In this stage, there is the research of the best sup-pliers and the research of funding from banks and territorial development organizations.

d) Implementation of the works: the last phase in-volves the construction of facilities, the test and the commissioning.

Figure 17 - Arial view of the plant

• 32 • • 33 •


INVESTMENT ANALYSIS AND FINANCIAL PLAN

The analysis is intended just for the required energetic demand from Cantina Sociale di Castelnuovo.

Figure 18 - Timing activity table

Cost for biomass recovery and transformation

Action Amount in EUR/ton

Gathering of the biomass 16

Transportation 10

Chipping 14

Total costs 40

Installation costs

Item/service Amount in EUR/ton

500 kW furnace 130.000

280 kWf absorber, wth cooling tower 103.000

Hydraulics and electrics and electric equipment 47.000

Adaptation of the site 20.000

• 32 • • 33 •


The payback period with the investment paid in full-equity from the society would be 5.5 years.

Storage-location for the chipped wood 20.000

Executivr project 30.000

Total costs 350.000

Evaluation of the investment’s convenience

Annual cost (with actual heating system) Amount in EUR/ton

Chipped wood 22.000

Maintenance 7.000

Electrical energy 4.000

Total costs 33.000

avoided costs (with bionass recovery system)

Electrical energy 72.300

Diesel fuel for industrial heating 26.000

Diesel fuel for industrial heating 8.880

Total annual avoided costs 107.180

• 34 • • 35 •


COAL Consortium, Motta di Livenza, Treviso, Italy

The Livenza Agricultural Cooperative Company (COAL) represents an interesting territo-rial reality of the easternmost part of the province of Treviso, in the Veneto region, 60 km north of Venice. Started up in 1976, the cooperative is headquartered in Motta di Livenza (TV) and it currently counts about 150 members, including farmers and growers.

The agricultural area pertaining to the company amounts to about 3,000 hectares, inclu-ding 1,000 hectares of vines and the remaining 2,000 of arable land, especially of corn and soy. It aims to provide shareholders and farmers of the Opitergino-Mottense district with assistance in agricultural practices and in harvesting agricultural crops. The various activities include grain drying and storage, marketing of technical materials (seeds, fer-tilizers, agro-chemicals, etc…) and of local farm products. In the last decade the COAL Cooperative has started to address the use of wood-energy, sensing in this field a strong potential as a source of income for farms.

In addition to promoting the diffusion and the installation of Short Rotation Woodland (SRW) plantations, specialized in biomass energy production (use of various fast-growing species, including black locust, foxglove, and hybrid poplar), the cooperative is working on the themes of collection and use of different kinds of supplies for energy purposes. In this context, the activity of COAL is the result of many experiments regarding all stages of collection and transformation of sprouts (packing, chipping).

Besides having about 1,000 hectares of vineyards owned by its members, the cooperative have some other local vineyards in which they carry out the fruit picking, equivalent to other 4,000 hectares. It can therefore be estimated that a total of about 5,000 hectares of land can be organized and optimized for the annual collection of sprouts and for the setting of both the logistics of intermediate processing and storage locations, and for placing energy conversion facilities.

In order to try to internalize the added value, the cooperative is structuring a new busi-ness by way of the heating supply company “AGRIVITENERGY (A.V.E) Ltd”, through the installation of high efficiency modern boilers, powered by vine chips (Biocompact form). The A.V.E. is a company with widespread participation whose shareholders are COAL members, enterprises, professionals, citizens, and also associations and organizations for public benefit. Some COAL members are currently using the Biocompact form and other members are planning to install it in the near future. In this perspective, the com-pany aims to provide its users with not only the biomass (vine chips) but with everything the user needs for benefiting directly from the heat.

The users do not have to worry about finding fuel, installing the boiler or maintaining it, because everything is managed by A.V.E. The company, indeed, deploys to customers the BIOCOMPAT modules for the generation of thermal energy, provides for their continued operation by refuelling of biomass in form of vine chips (as an alternative to briquette), and keeps their maintenance over time.

• 34 • • 35 •


To achieve this goal, the new company A.V.E is setting up a new site with a large yard and a building designed with GBE FACTORY criteria for logistics and manufacturing of bio-mass (vine sprouts) and for the management of BIOCOMPACT modules.In the situation described above, the interesting and replicable A.V.E model of DEMO GBE FACTORY is clearly identifiable: an example of a “ONE TO MANY” model, or rather, “ONE TO MANY DIFFUSED” model, consisting of the GBE FACTORY HEAD OFFICE (or mother company) connected to many MINI GBE FACTORIES throughout the area. For the mo-ment, these MINIGBE FACTORIES mainly consist of the agricultural processing branches of the associates, who benefit from the heating service through the BIOCOMPACT’s new boilers for heat and cold production, which A.V.E deploys. (See figure below).

CLOSED- LOOP BIOMASS SYSTEM BASED ON A.V.E. ENERGY SYSTEM (also called CIR-CULAR – ZERO KM CYCLE OF BIO ENERGY SUPPLY)

The basic version of GBE FACTORY MOTHER COMPANY has significant potential for future developments related to the processing and the storage of biomass: they have been planning the building duplication, the diversification of raw material entering the shredding plant, and of the typology of combustion outputs (loose wood chips, briquettes, pellets - see figure below).

Figure 19 - Closed-Loop Biomass based A.V.E. Energy Supply System

• 36 • • 37 •


CLOSED-LOOP BIOMASS A.V.E. SYSTEM BASED ON IMPROVED CLOSED FEATURES (also called CIRCULAR – XERO KM CYCLE OF BIO ENERGY SUPPLY

Diversifications are provided also for BIOCOMPACT stations, both in terms of new applicable technologies and service forms that include the selling of electricity and thermal energy. As shown in the figure below, a BIOCOMPACT module was also installed at the office building and at some warehouse of the COAL Consortium headquarters, which, thanks to the addi-tional contribution of the photovoltaic system installed on the roof of the shed, has become a site with a nearly Zero-Carbon Buildings (nZCB) which has been awarded with the GBE FACTORY brand.

BIOCOMPACT HEADQUARTERS INSIDE BIOCOMP CARBON CONSORTIUM

Figure 20 - Enhanced closed-loop Biomas A.v.e. Energy Supply System

BIOCOMPACT HEADQUARTERS INSIDE BIOCOMP CARBON CONSORTIUM

Figure 21: Bio compact details Figure 22: Bio compact at COAL consortium premises Figure 21 - Bio compact details Figure 22 - Bio compact at COAL consortium premises

• 36 • • 37 •


DETAILED DESCRIPTION OF THE GBE FACTORY: BUILDINGS, ENERGY PROCESSES AND REQUIRE-MENTS

GBE FACTORY MOTHER COMPANY

The “GBE FACTORY MOTHER COMPANY” for the centralized processing of wood chips is composed by the property of the company “AGRIVITENERGY (AVE) Ltd”, which is currently housed in a building adjacent to the headquarters of the COAL Consortium in Motta di Livenza, in the Veneto Region - Italy

The warehouse occupies an area of 1,350 square meters within an area of about 10,000 square meters intended for the processing and storage of the biomass; here, soon we expect that the warehouse area will be doubled.

In the warehouse there are: a grinder model 1300 BGS Leopard (2 ton/h, 100 kW)manufactured by Stragliotto ECO & RL Rossano Veneto, Vicenza, Italy with a capacity of more than 2 tons/hour, a space for the storage of wood chips from pruning and an area for drying wood chips from other sources than the vine (other residues from processes pruning cuts and agro-forestry), which, in short with the increase in production, integrate and diversify the production of wood chips from pruning. Currently the drying of wood

Figure 23 - Google map view of Motta di Livenza Figure 24 - View of the cooperative

Figure 25 - View of the warehouse Figure 26 - Inside the warehouse

• 38 • • 39 •


chips from vine sprouts does not require drying in the shed, as it occurs naturally in the temporary storage located in the countryside. The operation of the ‘dryer will occur with’ energy produced with the use ofthe same biomass treated on the spot. The GBE FACTORY MOTHER COMPANY in its fu-tureconfiguration scheme aims to become a CARBON NEUTRAL FACTORY.

CYCLE OF SUPPLIES

The supply of THE GBE FACTORY occurs through the supply chain and is characterized by the following steps:

Collection from the vineyardBetween the end of winter 2008 and early spring 2009, the Cooperative COAL, in someallotments owned by some of its associates, performed a series of tests to collect pru-nings arising from pruning vines.

Productivity was highly variable, depending on the preparation of the material to becollected. In many cases, the observed data are quite different, ranging from 1 bale/hour to almost 7 bales/hour.On the basis of this remarkable heterogeneity the opportunity emerged to prepare a protocol for growers that provides for alternate rows and concentrating branches in the

Figure 27 - The grinder Figure 28 - The grinder inside the warehouse

Figure 29 - The vineyard

• 38 • • 39 •


center of the rows, so to compact better the bale depending on the type of the vineyard and of the conditions of the material, so to collect from about 2.5 to 5-6 bales / hectare. The bales are left on harvested field in a position that will not disturb the other operations in the vineyard. Regarding the weight of the newly formed bales, it amounts to an average of values ranging between 0.5 to 0.65 tons / bale, with a water content in the material equal to about 50-55%.

Transport and stacking of the semi finished products

The bales are transported to temporary collection areas, which consider the location of the position of GBE FACTORY MOTHER COMPANY and the dislocation of the different MINI-GBE FACTORIES, and where the BIOCOMPACT heat modules are located.The bales are stacked in pyramid construction for natural drying, which lasts about 9 months, the period within which the biomass reaches a relative moisture content of 10-12%.

Productivity was highly variable, depending on the preparation of the material to be collected. In many cases, the observed data are quite different, ranging from 1 bale/hour to almost 7 bales/hour.

On the basis of this remarkable heterogeneity the opportunity emerged to prepare a protocol for growers that provides for alternate rows and concentrating branches in the center of the rows, so to compact better the bale depending on the type of the vineyard and of the conditions of the material, so to collect from about 2.5 to 5-6 bales / hectare. The bales are left on harvested field in a position that will not disturb the other operations in the vineyard. Regarding the weight of the newly formed bales, it amounts to an average of values ranging between 0.5 to 0.65 tons / bale, with a water content in the material equal to about 50-55%.


The bales are transported to temporary collection areas, which consider the location of the position of GBE FACTORY MOTHER COMPANY and the dislocation of the different MINI-GBE FACTORIES, and where the BIOCOMPACT heat modules are located.

The bales are stacked in pyramid construction for natural drying, which lasts about 9 months, the period within which the biomass reaches a relative moisture content of 10-12%.

Figure 30: Hay bales Figure 31: Bales in the vine yard

Figure 32: A pyramid of bales Figure 33: Wood-chipper








Figure 30 - Hay bales Figure 31: Bales in the vine yard

Figure 32 - A pyramid of bales Figure 33 - Wood-chipper















• 40 • • 41 •


MINI- GBE FACTORIES

The MINI GBE FACTORIES today are re-presented mainly by farms, COAL con-sortium members, which produce and process wine. These companies are pro-vided with a heat contract, which pro-vides for the supply of renewable heat energy (kWh) in a predetermined price according to the withdrawal of pruning and other conditions established for this purpose (such as a shareholder or non-shareholder AVE). The power is supplied through the BIOCOMPACT (average size of 80 – 100 KWth heat boilers), which are fed and maintained directly by “ AGRIVI-TENERGY (AVE) Ltd”. The contracts are temporally flexible, since the heat distri-bution is done with mobile units and thus easily allocated to different locations.

The technical data of the BIOCOMPACT heat module type are those shown in the tablebelow.

The thermal energy is used in winter for heating and to maintain the temperature of thefermentation of red wine (around 17 ° C) .Some farms, members of A.V.E., represent the evolved MINI GBEFACTORY as they use theBIOCOMPACT module not only for winter heating, but also for the production of chilled water for the vinification processes and possibly also for the offices cooling, thanks to the use of absorbers.The Cescon farm of Giuseppe and Antonella Cescon is a sole proprietorship based in Chiarano (TV), which uses a BIOCOMPACT boiler (type Froling) 75 kWth with the cha-racteristics described in the table above producing hot water at 85° C in the winter period and for supplying an absorber of 75 kWth (Yazaki type) in the summer (June to October) in order to produce the cooling necessary to keep the white wine in tanks at a tempera-ture of 5 - 6 ° C.

MINI- GBE FACTORIES The MINI GBE FACTORIES today are represented mainly by farms, COAL consortium members, which produce and process wine. These companies are provided with a heat contract, which provides for the supply of renewable heat energy (kWh) in a predetermined price according to the withdrawal of pruning and other conditions established for this purpose (such as a shareholder or non-shareholder AVE). The power is supplied through the BIOCOMPACT (average size of 80 – 100 KWth heat boilers), which are fed and maintained directly by " AGRIVITENERGY (AVE) Ltd". The contracts are temporally flexible, since the heat distribution is done with mobile units and thus easily allocated to different locations. The technical data of the BIOCOMPACT heat module type are those shown in the table below.

n. Technical Data u.m. Quantity

1 Thermal power KWth 85

2 Performance % 90-92

3 Hot water heater Liters 200

4 Hot water temperature °C 85 Table 1 - Specifications station BIOCOMPACT (size 80-100 kWth)

The thermal energy is used in winter for heating and to maintain the temperature of the fermentation of red wine (around 17 ° C) .

Some farms, members of A.V.E., represent the evolved MINI GBEFACTORY as they use the BIOCOMPACT module not only for winter heating, but also for the production of chilled water for the vinification processes and possibly also for the offices cooling, thanks to the use of absorbers.

The Cescon farm of Giuseppe and Antonella Cescon is a sole proprietorship based in Chiarano (TV), which uses a BIOCOMPACT boiler (type Froling) 75 kWth with the characteristics described in the table above producing hot water at 85° C in the winter period and for supplying an absorber of 75 kWth (Yazaki type) in the summer (June to October) in order to produce the cooling necessary to keep the white wine in tanks at a temperature of 5 - 6 ° C.

Figure 34: Bio compact details

Figure 34 - Bio compact details

Table 1 - Specifications station BIOCOMPACT (size 80-100 kWth)

n. Technical Data u.m. Quantity

1 Thermal water KWth 85

2 Performance % 90-92

3 Hot water heater Liters 200

4 Hot water temperature °C 85

• 40 • • 41 •


The Cescon MINI GBE FACTORY has no connection to the gas network, but maintains aconnection to the electricity grid for 15 kWe to meet the needs of lighting and for peaks of summer cooling energy requirements.

The Cescon company with over 40 hectares of vineyard produces approximately 6,000hectoliters of wine per year and provides for their own use of heat and cooling for more than 95% with renewable energy, through vine sprouts from its own vineyards (about 500 quintals of wood chips per year). The Cescon company represents a 100% renewable energy GBE FACTORY.

The Cescon company is already looking at the realization of a farm (wine - milk) with aninnovative high-level of automation, fully sustainable from the point of view of energy and a circular flow of zero waste, where waste and by-products of the process (wine - milk) are converted into energy (electricity and heat) that returns to the source in compost as fertilizer for vineyards. To achieve this objective, the existing boiler chips from vine is pro-vided for the addition of a bio- digester fluids for 100 kWe fueled by the barn, mowing the vineyard and the winery by -products, which will provide at least heat (about 100KWth), which will be mainly used for cooling the milk produced by the barn.

The Cescon MINI GBE FACTORY has no connection to the gas network, but maintains a connection to the electricity grid for 15 kWe to meet the needs of lighting and for peaks of summer cooling energy requirements.

The Cescon company with over 40 hectares of vineyard produces approximately 6,000 hectoliters of wine per year and provides for their own use of heat and cooling for more than 95% with renewable energy, through vine sprouts from its own vineyards (about 500 quintals of wood chips per year). The Cescon company represents a 100% renewable energy GBE FACTORY.

The Cescon company is already looking at the realization of a farm (wine - milk) with an innovative high-level of automation, fully sustainable from the point of view of energy and a circular flow of zero waste, where waste and by-products of the process (wine - milk) are converted into energy (electricity and heat) that returns to the source in compost as fertilizer for vineyards. To achieve this objective, the existing boiler chips from vine is provided for the addition of a bio- digester fluids for 100 kWe fueled by the barn, mowing the vineyard and the winery by -products, which will provide at least heat (about 100KWth), which will be mainly used for cooling the milk produced by the barn.

Figure 35: Farm Cescon Figure 36: Farm Cescon

Figure 35 - Farm Cescon Figure 36 - Farm Cescon

• 42 • • 43 •


GOALS IN TERMS OF RENEWABLE ENERGY AND ENERGY SAVING: THE “ A.V.E. DEMO GBEFACTORY “ BEYOND THE INITIAL GBE FAC-TORY MOTHER COMPANY

The GBE FACTORY MOTHER company is functional to the entire energy chain implemen-ted by the A.V.E. company and to the existence of the MINI GBEFACTORIES. In its final configuration with the doubling of the area there is a potential for more than 5,000 tons per year among wood chips, pellets and briquettes. For the production of pellets, some feasibility studies have been taken into consideration, including a study done by AIEL.

The study by AIEL says that a plant for the production of pellets from vine sprouts in aquantity superior to 10,000 tons per year has interesting investment returns, particularly for the case they produce renewable energy and heat and hence benefit from forms ofincentives. For this reason A.V.E. plans to concentrate to the needs of electricity and heat in the future pellet plant with a CHP fueled by biomass.

For GBEFACTORY MOTHER goal is to achieve a “neutral feedback Carbon Factory,” inspi-red by an entrepreneurial activity with sustainable energy processes, or with the use of energy from biomass and waste heat recovery systems. The estimates of energy require-ments interms of power are approximately 350 kWe and 500 kWth.

GOALS IN TERMS OF RENEWABLE ENERGY AND ENERGY SAVING: THE " A.V.E. DEMO GBEFACTORY " BEYOND THE INITIAL GBE FACTORY MOTHER COMPANY

The GBE FACTORY MOTHER company is functional to the entire energy chain implemented by the A.V.E. company and to the existence of the MINI GBEFACTORIES. In its final configuration with the doubling of the area there is a potential for more than 5,000 tons per year among wood chips, pellets and briquettes. For the production of pellets, some feasibility studies have been taken into consideration, including a study done by AIEL.

The study by AIEL says that a plant for the production of pellets from vine sprouts in a quantity superior to 10,000 tons per year has interesting investment returns, particularly for the case they produce renewable energy and heat and hence benefit from forms of incentives. For this reason A.V.E. plans to concentrate to the needs of electricity and heat in the future pellet plant with a CHP fueled by biomass.

For GBEFACTORY MOTHER goal is to achieve a "neutral feedback Carbon Factory," inspired by an entrepreneurial activity with sustainable energy processes, or with the use of energy from biomass and waste heat recovery systems. The estimates of energy requirements in terms of power are approximately 350 kWe and 500 kWth.

Figure 37: Pellets production

Figure 40: Woodchips Figure 39: Pellets Figure 38: Pellets Figure 38 - Pellets Figure 39 - Pellets Figure 40 - Woodchips

Figure 37 - Pellets production






Figure 40: Woodchips Figure 39: Pellets Figure 38: Pellets






Figure 40: Woodchips Figure 39: Pellets Figure 38: Pellets

• 42 • • 43 •


GBEFACTORY FIGLIE (MINI-GBEFACTORY)

Concerning the MINI GBEFACTORY, the purpose is the 100%-satisfactory functioning of thermal needs through renewable energy, and on a later stage it will be the satisfaction of electricity needs. This involves the launch of A.V.E. with the promotion of the BIOCOM-PACT product, in single configuration or in the “COMBINED” version, which consider the addition of an absorber for cold production.

A.V.E bucks for charge its customers the 10-15% of thermal energy per KWh less than retail prices given on the market. To achieve this and to exercise on your user very com-petitive caloric energy prices, the system must be characterized by groundbreaking com-bustion technologies, quality biomasses and a telemonitoring system of the performance of BIOCOMPACT stations in the different configurations. An interesting evolution will see the use of pellet boilers and smart absorbers.

The A.V.E. in its program to approach the market Industry with high heat demand, is testing the use of wood chips boilers with a MW of thermal power. To satisfy the elec-tric needs of MINI-GBEFACTORY is planning to equip modules BIOCOMPACT with mini-cogeneration plants to make electricity available. A study is underway to see if you can overcome the threshold levels acceptable to apply to the target customers of the price per kWh of heat and electricity competitive with other offerings in the market.


Concerning the MINI GBEFACTORY, the purpose is the 100%-satisfactory functioning of thermal needs through renewable energy, and on a later stage it will be the satisfaction of electricity needs. This involves the launch of A.V.E. with the promotion of the BIOCOMPACT product, in single configuration or in the “COMBINED” version, which consider the addition of an absorber for cold production. A.V.E bucks for charge its customers the 10-15% of thermal energy per KWh less than retail prices given on the market.

To achieve this and to exercise on your user very competitive caloric energy prices, the system must be characterized by groundbreaking combustion technologies, quality biomasses and a telemonitoring system of the performance of BIOCOMPACT stations in the different configurations. An interesting evolution will see the use of pellet boilers and smart absorbers.

The A.V.E. in its program to approach the market Industry with high heat demand, is testing the use of wood chips boilers with a MW of thermal power.

To satisfy the electric needs of MINI-GBEFACTORY is planning to equip modules BIOCOMPACT with mini-cogeneration plants to make electricity available. A study is underway to see if you can overcome the threshold levels acceptable to apply to the target customers of the price per kWh of heat and electricity competitive with other offerings in the market.

Figure 41: Pellets boiler Figure 42: Pellets boiler Figure 41 - Pellets boiler Figure 42 - Pellets boiler


Concerning the MINI GBEFACTORY, the purpose is the 100%-satisfactory functioning of thermal needs through renewable energy, and on a later stage it will be the satisfaction of electricity needs. This involves the launch of A.V.E. with the promotion of the BIOCOMPACT product, in single configuration or in the “COMBINED” version, which consider the addition of an absorber for cold production. A.V.E bucks for charge its customers the 10-15% of thermal energy per KWh less than retail prices given on the market.

To achieve this and to exercise on your user very competitive caloric energy prices, the system must be characterized by groundbreaking combustion technologies, quality biomasses and a telemonitoring system of the performance of BIOCOMPACT stations in the different configurations. An interesting evolution will see the use of pellet boilers and smart absorbers.

The A.V.E. in its program to approach the market Industry with high heat demand, is testing the use of wood chips boilers with a MW of thermal power.

To satisfy the electric needs of MINI-GBEFACTORY is planning to equip modules BIOCOMPACT with mini-cogeneration plants to make electricity available. A study is underway to see if you can overcome the threshold levels acceptable to apply to the target customers of the price per kWh of heat and electricity competitive with other offerings in the market.

Figure 41: Pellets boiler Figure 42: Pellets boiler

• 44 • • 45 •


Figure 43: examine of micro-cogenerators

Figure 44: examine of micro-cogenerators

Figure 43 - examine of micro-cogenerators

Figure 44 - examine of micro-cogenerators

• 44 • • 45 •


Figure 45: Spanner HOLZ-KRAFT CHP gasification

Figure 45 - Spanner HOLZ-KRAFT CHP gasification

• 46 • • 47 •


POSITIVE IMPACT ON THE ENVIRONMENT AND BENEFITS FOR IN-VESTORS AND USERS

Spill-over effects sought by the “AGRIVITENERGY (AVE) Ltd” company have ethical and environmental features: - encourage the use of waste materials coming from the process of vine cultivation to produce energy for the benefit of the actors of the process themsel-ves; - help in transforming the wine cultivated plains of North-eastern Veneto in areas with lower CO2 emissions.

The A.V.E energy model is based on a Circular Supply Chain, from scratch, with an array of transport logistics both as input and output that does not come from the local area, and which therefore gets high environmental and ecological implications.

Significant is then the ambition to link the agricultural supply chain with the SMEs’ energy one.

The A.V.E business model presents some deliberately not-brilliant economic characteri-stics, but acceptable if you consider that part of the valuable potential goes for the custo-mers’ benefit, through a heating price that must be competitive on the market, compared to the price of fossil fuels.

This is even more understandable, if you consider the nature of ‘widespread participation’ in a company well-established in the territory.

A growth-based company. By 2015 A.V.E will achieve the doubling of GBEFACTORY MOTHER; it aims for selling heat to 50 MINI-GBEFACTORIES and to some companies of the nearby industrial areas for an installed thermal capacity of 5 / 7 MW-thermal.

The equivalent CO2 saved amounts to million of Kilograms.

• 46 • • 47 •


PLAN AND TIMELINE ACTIVITIES

The project “AGRIVITENERGY (AVE) Ltd”, included the following points:

a) Start of the road map for the dissemination of the service AVE between members of the COAL Consortium and the companies of the industrial areas (February 2014)

b) GBE FACTORY MOTHER completion and formal start away (May 2014)

c) Review of the sale policies(mix biopellets and sale of heat / energy) (February 2015)

d) Doubling of GBE factory Mother (October 2015)

TIMELINE ACTIVITIES

2014 2015

a)Start of the road map for the disse-mination of the service AVE between memebers of the COAL Consortium and companies of the industrial areas

b) GBE FACTORY MOTHER completionand formal start away

c) Review of the sale policies

d) Doubling of GBE factory Mother

• 49 •

BULGARIA

• 50 • • 51 •


Construction of biogas Installation with cogeneration for combined electricity and thermal energy produc-tion by indirect utilization of the biomass in Momchil, region of Balchik

Project proposal and feasibility study

1. Background Describtion of GBE FACTORY ProjectThe proposed investment project in the town of Balchik has significant potential to be realized as a DEMO GBE Factory because this renewable project is in progress at the mo-ment and after the project implementation the impact of the proposed energy solutions in the building infrastructure will be expected.The project sponsor and owner is Bulgarian company Perpetuum Mobile BG JSC. The main company’s activities are connected with investigation, construction, financing and operation of installations for utilization of wastes, production of electric and thermal energy by indirect use of the biomass, etc. The joint stock company’s shareholders of the Perpetuum Mobile BG JSC are more then 50% property of Albena JSC.One of a kind in the country this project represents our understanding of the concept „renewable energy”. The substrates we will use in the beginning are of plant origin – sila-ge corn, but in the future we are planning to use the food waste form our mother com-pany Albena JSCo. Using it we will not plant our fertile lend with energy crops. With the technology we are using there is no waste form the process. In the end of the line we have high quality organic fertilizer witch can be used directly on the fields.

2. DEMO GBE FACTORY Project DescriptionThe biogas plant and cogeneration facilities are situated in the terrain of Momchil, near to the town of Balchik, North-East Bulgaria of the total built up area of 2 300m2.The Perpetuum Mobile BG JSC invests in construction installation for production of elec-tricity and thermal energy by indirect utilization of biomass. The electric power of the in-stallation is 1000 kWel. The thermal power of CHP plant is 1000 kWth as well. The project comprises the mounting of completely new facilities on existing concrete site. According to the project a module will be mounted that includes: one tank for destruction (fermen-tor) (diameter: 26.00m, height 8.00m); one secondary tank for destruction (secondary fermentor) (diameter: 26.00m, height 8.00m); one tank for storage of the worked-off biomass/residual substances (diameter: 32.00m, height 8.00m); one solid gondola “MT Alligator” 96m³.The installation works with substrates (raw material) of plant origin – silage corn. The biogas-installations usually work in continuous mode of operation. They are com-prised of fermentors, tanks for additional slow fermentation/post-fermentors and tanks for storage of the products from the fermentation process. Inside the post-fermentor the same conditions of the liquid-media are prevailing as in the fermentor. The worked-off biomass is specially prepared for use in the agriculture with parameters similar to liquid

• 50 • • 51 •


natural manure.The fermentor, the secondary fermentor and the tank for sto-rage of residual substances are round reservoirs produced of reinforced concrete. They are covered with special, double, cone-like, gas-resistant mem-brane. In this way the produ-ced bio-gas may be collected directly above the level of the liquid in the tanks and to be stored for intermediate storage until the moment of its use. The second cone-like membrane is used as a cap for protection from the atmosphere impact. Its form is maintained by the air pressure through radial ventilator maintain over-pressure of about 1.5mbar. The devices for control of the over-pressure and the under-pressure guarantee that there is constant pressure from beneath and between the membranes.The fermentors operate in mesophyle-gama fermentation under temperature of about 40°C. After the residual mass has stayed in the fermentor for certain period of time and has relieved the gas it is transferred in gas-resistant tank (second fermentor) through gas-resistant pipe system. From there, again through the pipe system, the mass passes to the end tank, where it stays until it is transported for the spreading on the agro-land.As a result of the fermentation of renewable sources (corn silage) high-energy gas is obtained. The gas produced is transferred to a combined electricity and heating plant in the form of fuel for production of energy by generators. Hot water is produced from the heat produced from the exhaust gases and water cooling, by heat-exchangers.The worked-off biomass that remains after the anaerobic treatment is used as an agro-fertilizer and in this way is returned to the biological cycle of the farms that have supplied the initial raw-material.The electric energy is transferred to the distribution grid and managed by the local ener-gy provider - the company Energo Pro AD, which operate in North-East Bulgaria. The heat produced is used as heat energy that participates in the production process of the biogas installation.The biogas installation is manufactured and is delivered by the German Company MT Energie GmbH. The Italian company AB Energy is supplied the CHP energy facilities and equipment. The construction of all facilities will be implemented by Eko Stroy AD, Bulgaria.

Figure 25 - Tanks for waste fermentation

• 52 • • 53 •


Figure 46 - CHP plant

The facility for combined electricity and thermal energy generation will be constructed near to the biogas plant which will use organic waste, providing:

• Electricity for local consumers and grid;• Thermal energy for factory for processing fruits and vegetables;• Thermal energy for greenhouse;• Heating and cooling of an administrative building.

The total generated electricity by the CHP Plant is 5100 MWhel/yr. The annual expected electricity sales revenues are in the amount of 651897 EUR.

The produced electricity will be measured on the 20 kV side with the installation of a con-trol box in the switchgear transformer station. All necessary equipment and devices such as safety relay elements, commutation and automation will be installed at the switchgear. In accordance with the requirements of the guidelines for the operation of energy enter-prises, an independent power supply of the safety relays and the control and automation devices will be secured.

58% or 4852 MWhth of generated thermal energy will be used for technological needs of the factory for processing fruits and vegetables and greenhouse per annum. The premi-ses of the administrative building will consume about 650 MWhth (8%) of thermal energy for heating during the heating season. 24% or 2050 MWhth will be used for cooling of an administrative building. The biogas plant and CHP facilities will use 10% of the produced total thermal energy for its own needs.

Figure 47 shows digital cartographic map of the DEMO GBE Factory site.

The processing plant for fruits and vegetables owned by Eko Plod AD and greenhouse

• 52 • • 53 •


Figure 47 - Cartographic map of the DEMO GBE Factory

will be consumers of the generated thermal energy. The project sponsor has preliminary agreement for selling of thermal energy to the customers.

The processing of the plant biomass is not only an ecological approach but it is economi-cally profitable and valuable market process regarding the environment protection and with high energy value as well.

3. DEMO GBE FACTORY PROJECT Benefits

The benefits for of the Perpetuum Mobile BG JSC will be possibility to return back the investment through selling of generated electricity and thermal energy to the customers.Emission reduction projects above a certain size (variable depending on type of techno-logy) can generate carbon credits that can be monetised, in particular under the Joint Implementation mechanism of the Kyoto Protocol. Some companies that have received funding under the Bulgarian Energy Efficiency and Renewable Energy Credit Line have taken advantage of this possibility, including by selling carbon credits to the EBRD.Determination of the annual emissions of noxious gases is according to Commission Deci-sion of 21.01.2004 establishing guidelines for the monitoring and reporting of Greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council. The emissions factors elaborated by the MOEW (Methodology for calculation of emissions of noxious substances (pollutants) released into the environment based on balance methods) have been used for the noxious gases emissions assessment. In 2014 the CO2 emissions will be reduced by 310 tons as a total result of the annual sa-vings of electricity and natural gas by 960 MWh.The implementation of the present GBE Factory project will improve the quality of the live and thermal comfort of the occupants in the administrative building.As a result of this energy efficiency project implementation the competitiveness of the

• 54 • • 55 •


manufactured products at processing fruits and vegetables and greenhouse will be ex-pected. As a result of the energy carrier’s costs decrease, an increase in the productivity and sales of final production in these tow factories ceramic is also expected.The new high efficient energy and process equipment and facilities mounting on the plant’s site will increase the safety at work of Perpetuum Mobile BG JSC employees. The equipment is designed and manufactured in accordance with the contemporary Europe-an standards for safety at work.

4. GEB Factory features

5. GBE FACTORY GOALS

The operational purpose of the biogas installation is production of biogas. The anaerobic treatment of the biomass has the following useful and desired impacts:

• Reduction of the green-house effect through replacement of fossil fuels with biogas;

• Utilization of the fermented substrate as high-quality substitute of the feeding equalization of the agro-land by secondary implementation of organic substan-ces in the natural cycle.

The production of electricity in Bulgaria is based mainly on atomic energy, fossil fuels and hydro-potential. The local energy resources of the country are insignificant. The renewa-ble energy sources (RES) are an alternative for the development of practically inexhausti-ble and ecologically clean energy.

The direct benefits for the project borrower regarding the returning of the investment cost are selling of electricity. The total expected annual electricity production for CHP Plant is presented on figure below.

Figure 48 - Expected produced electricity by the CHP plant

GBE Factory 5 DEMO GBE Factory Project Proposal

8

0100200300400500600700800

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Figure 48: Expected produced electricity by the CHP plant

As a result of the DEMO GBE Factory project implementation the expected annual savings of the conventional fuels using in the factory for processing fruits and vegetable, greenhouse and administrative building are 2500 MWh. The cost savings after the project completion in the amount of 250000 EUR will be achieved.

In view of the sufficient remoteness from villages and towns and from places included in the national environmental network, the additional activity – utilization of the energy from biomass is a prerequisite for realization of the investment offer in accordance with the state policy for waste management and energy policy.

Other circumstances determining the expedience of the project are the following:

Valuable and fertile agro-lands are not affected; There is no impact on protected territories and breaking of the network of protected zones; Enough proximity to main road and to the permanent routes of the existing infrastructure; Remoteness from other project sites requiring zone for health protection.

6. RES proposed solutions

The proposed schemes for supply chains are a priority for Bulgaria and the business model were identified as a result of market research. The principle supply chain scheme for production of heat from biomass is given on Figure 5.

The proposed renewable solution includes principle DEMO GBE Factory project supply chain. The all stakeholders connected with production of electricity and thermal energy from biomass waste are shown in the table below.

• 54 • • 55 •


As a result of the DEMO GBE Factory project implementation the expected annual sa-vings of the conventional fuels using in the factory for processing fruits and vegetable, greenhouse and administrative building are 2500 MWh. The cost savings after the project completion in the amount of 250000 EUR will be achieved.

In view of the sufficient remoteness from villages and towns and from places included in the national environmental network, the additional activity – utilization of the energy from biomass is a prerequisite for realization of the investment offer in accordance with the state policy for waste management and energy policy.

Other circumstances determining the expedience of the project are the following:

• Valuable and fertile agro-lands are not affected;• There is no impact on protected territories and breaking of the network of pro-

tected zones;• Enough proximity to main road and to the permanent routes of the existing infra-

structure;• Remoteness from other project sites requiring zone for health protection.


The proposed schemes for supply chains are a priority for Bulgaria and the business mo-del were identified as a result of market research. The principle supply chain scheme for production of heat from biomass is given on Figure 5.

The proposed renewable solution includes principle DEMO GBE Factory project supply chain. The all stakeholders connected with production of electricity and thermal energy from biomass waste are shown in the table below.GBE Factory 5 DEMO GBE Factory Project Proposal

9

Figure 49: Principle supply chain for production of thermal energy and electricity

Row materials

Production

of Biomass

Step 1.1 Feasibility

Study

Business

Plan

Step 2.1

Tender

Submission

Procurement

Contract

Step 1.2 Project

Design

Calendar

Schedule

Step 2.2

Transport &

Logistic

Storage

Step 1.3 Project

Financing

Bankable

Loan

Step 2.3

Delivery and installation of system

Step 2.4

Project monitoring EE savings verification

Commissioning

test and start- up

Step 2.5 Figure 49 - Principle supply chain for production of thermal energy and electricity

• 57 •• 56 • • 57 •


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Figure 50 - DEMO GBE Factory project supply chain

• 57 •• 56 • • 57 •


Table 2 - List of stakeholders in the DEMO GBE Factory for Bulgaria

Step Company Contact person Website

1.1 Eco Agro AD

Albena AD

Galin Ganchev

Slavcho Gigov

http://www.ecoagro.bg/

http://www.albena.bg/

1.2 Eco Agro AD

Albena AD

Galin Ganchev

Slavcho Gigov



1.3 Eco Agro AD

Perpetuum Mobile BG AD

Galin Ganchev

Slavcho Gigov



2.1 MT Enegie GmbH

Perpetuum Mobile BG AD

Bela Sulai

Slavcho Gigov

http://www.mt-energie.com/

2.2 MT Enegie GmbH Perpetuum Mobile BG AD Forma Studio

Bela Sulai

Slavcho Gigov


2.3 Societe Generale Expressbank AD Elitza Mnonolova http://www.sgeb.bg

2.4 MT Enegie GmbH AB IMPIANTI SRL Ecostroi AD

Bela Sulai Vladimir

Oprescu Nikolai

Nikolov


http://www.gruppoab.it/

http://www.ekostroi-db.domino.bg/

2.5 MT Enegie GmbH

AB IMPIANTI SRL

Bela Sulai Vladimir

Oprescu


http://www.gruppoab.it/

2.6 State energy and water regulatory commission

http://www.dker.bg/

3.1 Public grid

3.2 Eco Agro AD

Albena AD

Galin Ganchev

Slavcho Gigov



4.1 Eco Agro AD

Other agricultural companies

Galin Ganchev http://www.ecoagro.bg/

• 59 •• 58 • • 59 •


The block diagrams of the supply chains for the potential 2 projects of Perpetuum Mobile BG JSC from which one is the proposed DEMO GBE Factory are presented on Figure 51

GBE Factory New DEMO GBE Factory Project Proposal

12

Figure 51: Perpetuum Mobile BG JSC supply chains block diagrams

7. Project work plan

In the table below shows the work plan schedule for the renewable energy sources project implementation by Perpetuum Mobile BG JSC For each item, the duration is shown in months – for the period from March 2012 to December 2013.

Figure 51 - Perpetuum Mobile BG JSC supply chains block diagrams

• 59 •• 58 • • 59 •



In the table below shows the work plan schedule for the renewable energy sources project implementation by Perpetuum Mobile BG JSC For each item, the duration is shown in months – for the period from March 2012 to December 2013.

The project has started with the feasibility study preparation in March, 2012. In the end of 2012 the project design, business plan negotiation with commercial bank and signing of an agreement for loan were completed. The delivery of equipment to the site has started in November 2012 and was completed in March 2013.

The civil works started in November 2012 and will be finished in October 2013. The Instal-lation works started in February 2013 and will be completed in October 2013. The 72-hour commissioning tests and start up will be carried out at the end of December 2013. Regu-lar operation of biogas plant and CHP is envisaged for January 2014.

8. Financial Plan

The GBE Factory project cash flow analysis indicates that the project’s financial indicators are sufficient to serve debt (pay loan interest and repay loan principal) within the loan terms negotiated with the bank.

The project cash flow analysis indicates that the project has very impressive financial in-dicators: the project payback period is 8.0 years plus 1 year grace period, IRR is 12.0% and NPV amounts to EUR 4800000.

The total GBE Factory project cost is in the amount of 4000000 EUR without VAT. The project will be financed through a 3.2 million euro ($4.18 million) loan from Bulgaria’s So-ciete Generale Expressbank. Albena’s AD shareholders voted on the loan at the general meeting scheduled in May 2013. The loan will be taken out for a period of nine years and its repayment will begin on July 31, 2014. It will carry an interest equal to one-month Eu-ribor plus 5.4% during the construction of the plant, and one-month Euribor plus 4.84% during the remaining period. Perpetuum Mobile BG JSC will provide 800000 EUR own contribution for the project implementation.

Table 3 - Project work plan schedule

2012 2013

III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII

Feasibility Study

Project Design

Business Plan

Bankable Loan Agreement

Equipment Delivery

Civil Works

Installation Works

Commissioning test and Start Up

Total

• 61 •• 60 •


The cash flow includes the sales of the forecasted reduced CO2 emissions, sold at the conservative price of 15.0 EUR/ton but with no additional cost for monitoring and veri-fication. The forecasted revenues are based on the emissions in tons reduced due to the implementation of the GBE Factory project.

The cash flow analysis in this scenario shows small improvements in all financial indica-tors, as IRR increases from 12.0% to 12.7%, NPV rises from EUR 4800000 to EUR 4812022, and the payback period is 8.0 years.

In the table below presents the financial indicators for the both cash flow scenarios as well as the indicators with the sold of CO2 emissions.

9. Risk analysis

9.1 COMPLETION RISK

Completion risk includes:• Construction risk (capital cost overrun);• Start-up delay risk.

Capital cost overrunThe equipment prices are determined on the basis of the preliminary offers, price infor-mation and information gathered from similar projects. The design expenses are included in the equipment costs.

Possible reasons for underestimation of the equipment costs are:• Incorrect sizing;• Omitted equipment, necessary for the conservation options;• Incorrectly interpreted offer.

The results of the sensitivity analysis in case of 10% increase of the total project costs are presented in the table below.


14

revenues are based on the emissions in tons reduced due to the implementation of the GBE Factory project

The cash flow analysis in this scenario shows small improvements in all financial indicators, as IRR increases from 12.0% to 12.7%, NPV rises from EUR 4800000 to EUR 4812022, and the payback period is 8.0 years.


Scenario IRR NPV Pay-Back Period(%) (EUR) (Yr.)

Base Cash Flow 12.0 4800000 9.0Cash Flow with CO2 emission trading 12.7 4812022 8.0

Table 4 Comparison of the financial Indicators

9. Risk analysis

9.1 COMPLETION RISK

Completion risk includes:

Construction risk (capital cost overrun); Start-up delay risk.

Capital cost overrun

The equipment prices are determined on the basis of the preliminary offers, price information and information gathered from similar projects. The design expenses are included in the equipment costs. Possible reasons for underestimation of the equipment costs are:

Incorrect sizing; Omitted equipment, necessary for the conservation options; Incorrectly interpreted offer.


IRR Decrease NPV Decrease Pay-Back Period Decrease(%) (%) (EUR) (EUR) (Yr.) (Yr.)

Total GBE Factory Project 10.8 1.2 4320000 480000 9.9 0.9

Table 5 Cost overrun scenario


14

revenues are based on the emissions in tons reduced due to the implementation of the GBE Factory project

The cash flow analysis in this scenario shows small improvements in all financial indicators, as IRR increases from 12.0% to 12.7%, NPV rises from EUR 4800000 to EUR 4812022, and the payback period is 8.0 years.




Table 4 Comparison of the financial Indicators

9. Risk analysis

9.1 COMPLETION RISK









Table 5 Cost overrun scenario

Table 4 - Comparison of the financial Indicators

Table 5 - Cost overrun scenario

• 61 •


As a result of the above-mentioned assumption IRR decreases by 1.2% to 10.8%, NPV also decreases by EUR 480000, and the payback period is 9.9 years. Therefore, the project’s financial indicators are still viable under these assumptions.

Start-up delay riskThe conditions are favourable for keeping the scheduled timetable. The management is highly motivated and has created structures for project implementation.

However, the one-month start-up delay was analysed due to the following risks:• Equipment supply and installation delay;• The assembling sites are not ready.

One-month delay will lead to IRR decreases by 0.6% to 11.4%, NPV also decreases by EUR 240000, and the payback period is 5.45 years. Therefore, the project’s financial indicators are still viable under these assumptions.

9.2 OPERATIONAL RISK

The expected decrease of electricity production and energy savings comparing to the baseline option can be affected by the following circumstances:

• Incorrect impact definition during the design stage;• The proposed technology cannot technically achieve the impact forecasted un-

der the conditions of the company;• The prescribed operation conditions are not complied with;• There is a strong handling and human factor dependence evident.

This sensitivity scenario shows the impact of the savings reduction by 8% compared to the base case.The analysis shows that IRR decreases by 0.96% to 11.04%. The NPV decreases by EUR 384000 and constitutes EUR 4416000. The payback period is 9.72, and under this scena-rio the project is still attractive.

• 60 •


15


Start-up delay risk

The conditions are favourable for keeping the scheduled timetable. The management is highly motivated and has created structures for project implementation.

However, the one-month start-up delay was analysed due to the following risks:

Equipment supply and installation delay; The assembling sites are not ready.




Table 6 Start-up delay scenario



Incorrect impact definition during the design stage; The proposed technology cannot technically achieve the impact forecasted under the

conditions of the company; The prescribed operation conditions are not complied with; There is a strong handling and human factor dependence evident.

This sensitivity scenario shows the impact of the savings reduction by 8% compared to the base case. The analysis shows that IRR decreases by 0.96% to 11.04%. The NPV decreases by EUR 384000 and constitutes EUR 4416000. The payback period is 9.72, and under this scenario the project is still attractive.



Table 7 Savings decrease scenario


15


Start-up delay risk










Incorrect impact definition during the design stage; The proposed technology cannot technically achieve the impact forecasted under the

conditions of the company; The prescribed operation conditions are not complied with; There is a strong handling and human factor dependence evident.

This sensitivity scenario shows the impact of the savings reduction by 8% compared to the base case. The analysis shows that IRR decreases by 0.96% to 11.04%. The NPV decreases by EUR 384000 and constitutes EUR 4416000. The payback period is 9.72, and under this scenario the project is still attractive.




Table 6 - Start-up delay scenario

Table 7 - Savings decrease scenario

• 62 • • 63 •


• 62 •


9.3 WORST CASE SCENARIO

This worst-case scenario tests the combination of all scenarios mentioned above. Under this scenario capital cost overruns by 12%, start-up of the project delays for 1 month and expected production of electricity and savings are reduced by 12%. Table below shows the results of the cash flow analysis for the worst-case scenario.

The cash flow analysis shows that IRR decreases by 1.44%, and the NPV reduces by EUR 576000.However, the financial indicators for this worst case still lead to the conclusion that the project is financially viable. The IRR is 10.56%, the NPV is EUR 4224000 and the payback period is 10.08 years.

Annex A shows the presented reference case’s summary of DEMO GBE Factory Project Proposal for Bulgaria.


16





Table 8 Worst case scenario

The cash flow analysis shows that IRR decreases by 1.44%, and the NPV reduces by EUR 576000. However, the financial indicators for this worst case still lead to the conclusion that the project is financially viable. The IRR is 10.56%, the NPV is EUR 4224000 and the payback period is 10.08 years.

Annex A shows the presented reference case’s summary of DEMO GBE Factory Project Proposal for Bulgaria.

Table 8 - Worst case scenario

• 62 • • 63 •


• 62 •

ANNEX AFEASIBILITY STUDY

Project Name Co-generation and biogas plant in Perpetuum Mobile BG Ltd. Momchil

Location (Country, Region, State/City, etc.) Bulgaria, Balchik Municipality, Balchik city, South East Europe, EU

Project Sponsor/Customer: Perpetuum Mobile BG JSCo

Legal Status: Legal entity

Official Address:9620 AlbenaAdministrative Building, office 409Bulgaria

Postal Address:9620 AlbenaAdministrative Building, office 409Bulgaria

Telephone Number: +359 (0) 885 853 063

Fax Number: Not available

E-mail of the Company: [email protected]

Website of the Organisation: www.pmobile.bg

Contact Person Mr. Slavcho Gigov – Executive Director

Number of Employees:Micro company, less than 10 / Large if the overall company group is taken into consideration, more than 1,500 employees in the whole group

Registration Number EIK: BG202009651

Date of Registration 06.04.2012

Type of Sector Activity: Heat will be utilized in fruits/vegetables processing

Other information

Table 1 - Basic Information

• 64 • • 65 •


Scale of Project: General Small Scale Medium Scale Large Scale Bundling Option Considered

Type of Project: Renewable Energy Energy Efficiency Fuel Switching Fugitive

Chemical Industry Transport

Waste Management

Land Use Forestry

Others (please specify): Fruits/vegetables processing

Energy Use (E/H/C) E/H

Brief description: Brief Decription

Present Situation at Project Siteand Objective

C-generation and biogas plant from organic waste, providing:• Electricity for local consumers and grid• Heating up a greenhouse• Utilization of the heat in a processing plant for fruits and vegetables• Heating of office buildings

Proposed Activities The main project activities are as follows:• Feasibility Study (done);• Preparation of Project Design Documents (done);• Delivery of equipment and materials (in process);• Civil / Installation Works (in process);• Commissioning test and start-up (planned);

Applied Technology/Innovation

Anaerobic Biogas plant with Co-generation – 1 MWe / 1 MWt

Other Information

Table 2 - Project Characteristics

• 64 • • 65 •


Project Cost Estimate: Item Amount in EUR

Project Design

Equipment and Materials

Civil / Installation Works

Contingency Costs

Commissioning Test and Start up Costs

Total Project Cost 3 700 000

Revenue/Savings after Operation: Item (Specify Revenues/Savings) Amount in EUR

Fuel/Energy Savings

Natural Gas Savings

LPG Savings

Electricity Savings

Avoided O&M Costs

400 000

100 000

Source of Finance: Item Amount in EUR

Equity (25%)

Debt (75%)933,000

2,800,000

Forecast FinancialNPV (Net Present Value):

With EmissionCredit Revenues

Without Emission Credit Revenues1 064 462

Forecast Financial IRR(Internal Rate of Return):

With EmissionCredit Revenues

Without Emission Credit Revenues9%

Pay-Back Period of Project: With EmissionCredit Revenues

Without Emission Credit Revenues8.0 yr.

Opportunity for Project Funding Implemented

Table 3 - Finance

Reduced emissions: Item Amount in t/yr

Reduced CO2 emissions: (equivalent) ECO2 389

Reduced NOx emissions: ENOx

Reduced dust: EDust

Other:

Table 4 - Ecological Impact

• 66 • • 67 •


Construction of biomass boiler plant for thermal ener-gy production by direct utilization of wood chips in motocar service company in plovdiv

1. Background Describtion of GBE FACTORY Project

The proposed project in the town of Plovdiv has significant potential to be implemented as a DEMO GBE Factory because this renewable project has will have impact based on the proposed energy solutions in the existing industrial infrastructure.

The project sponsor and owner is Motocar Service Company Ltd. Motocar Service is an official representative of the German manufacturer for forklift trucks Linde Material Handling in Bulgaria. The offered product range includes:

• Forklifts - diesel and gas forklift trucks with lifting capacity from 1.2 up to 52 ton-nes;

• Electro forklifts with lifting capacity from 1 up to 4.8 tons;• Storage facilities (walking Reach and low electric pallet trucks, stackers, reach

trucks, commission, order picker, three-machine and hand pallet trucks) with a capacity of 1 to 2.5 tonnes;

• Container (richstackers) for full and empty containers with forklift from 8 up to 45 tons;

• *Ex proof equipment for working in explosive and hazardous environments.

The company own a storehouse for spare parts for all models of forklift trucks Linde. Highly skilled professionals provide warranty and service of delivered equipment. In or-der to improve support services is a network of 5 branches in the cities of Sofia, Plovdiv, Varna, Gabrovo, Shumen and Stara Zagora. The response time for the service staff of the entire territory of Bulgaria is within 24 hours. In parallel to these activities Motocar Service Ltd provides comprehensive processing of recycled equipment with brand Linde, designed for both Bulgarian and the European market.

Motocar Service started production of wood pellets in 01.04.2013 as an additional busi-ness in Bulgaria.

2. DEMO GBE FACTORY Project Description

The factory for production of pellets is located in Bulgaria, the city of Plovdiv, South-central Bulgaria. The production of pellets started in 01.04.2013. The biomass plant as a part of pellets factory is situated in the terrain with total built up area of 1,200m2.

Motocar Service invests in the construction installation for production of thermal energy by high efficient steam boiler using wood chips as a fuel. The project included delivery

• 66 • • 67 •


and construction works of steam boiler type RRK 1,000 with installed nominal capacity of 1,200 kWth which uses wood chips as a fuel. The proposed steam boiler and auxiliary energy equipment are constructed on the territory of the plant’s for production of pellets. The steam boiler type RRK 1,000 is designed for production of saturated steam with pressure of 6 bar and temperature of 165 oC. The nominal boiler steam output is 1.5 ton per hour. The boiler is also equipped by oil burner type Weishaupt model “W50” with capacity of 840 kW and oil supplying line, reduce and safety valves, back camera, control panel, C&I and level regulator. The steam boiler is covered by thermal aluminium insulation with low heat transfer coefficient.Installation of water treatment system with capacity of 2m3/h is installed. The water tre-atment system is equipped by two column-filters, filter for raw water, and two feeding water pumps with power capacity of 11 kW each. The new equipment will increase the quality of the feed water for steam generation through softening of the feeding water. After softening the water will be transported to a tank for softened water. The tank for softening water will be completed by deareation installation. The deaeration installation is equipped by thermal atmosphere deaerator with capacity of 3 m3, mixed head-stock, immersion pipe, reduce and temperature control valves and recirculation pumps. Deareation installation will separate the oxygen and other aggressi-ve gasses from the boiler feeding water. The technical measure envisages delivery and installation of a metal chimney for emitting of the exhausted gasses after the steam boiler. The chimney has diameter of 400 mm and height of 15 m. The biomass boiler and auxiliary process equipment is manufactured and is delivered by the Austrian Company Josef BINDER Maschinenbau u. Handelsges.m.b.H. Programmable logic controller with interdependent control loops and safety devices for steam boilers suited for 24 hours fully automatic operation without constant supervision (BOSB 24h):

• Fully modulating fuel supply, coordinated with boiler temperature, fluegas tem-perature and lambda O2;

• Controlled combustion air supply, dependant on load and fuel, through speed-controlled fans;

• Balanced draft control through differential pressure array and speed-controlled exhaust fan, for constant negative pressure;

• Auxiliary slumbering mode in case the auto-ignition fails;• Control of feed water valve, feed water pump, and blow-down;• Required safety routines for fully automatic operation without constant supervi-

sion, offering 24 hour monitoring (BOSB 24h);• With safety PLC conforming to SIL3-level, incl. Modbus module for the communi-

cation with the PLC series 9030;• UPS module (1000 VA), serving the PLC;• With inverters for the speed-controlled fans;• With lambda oxygen sensor incl. evaluating processor, temperature sensors and

thermostats, unless already mounted;• Switchboard for all subcomponents and modules acc. to .VE EN 60204-1;• Feed water pump, feed water valve, water treatment, steam.

• 69 •


The construction of biomass plant building is implemented by Motocar Service. All instal-lation works civil works, commissioning test and start up of the installed equipment and systems were implemented by VS Engineering Ltd.

Figures below present the constructed pellet factory and biomass boiler in the terrain of Motocar Service.

The total generated thermal energy to the dryer in the pellets factory is 2,880 MWhth/yr.The produced steam will be transported to the drying with capacity 2 ton per hour troughsteel pipe with diameter of 160mm. All necessary equipment of the distribution line likesafety relay elements, commutation and automation are installed. In accordance with therequirements of the guidelines for the operation of energy enterprises, an independentpower supply of the safety relays and the control and automation devices is secured.

Figure 52 and Figure 53 shows visualisation diagrams of the technological process andmonitoring of the boiler parameters in the biomass boiler plant.


25

Figure 53: Biomass boiler

The total generated thermal energy to the dryer in the pellets factory is 2,880 MWhth/yr.

The produced steam will be transported to the drying with capacity 2 ton per hour trough steel pipe with diameter of 160mm. All necessary equipment of the distribution line like safety relay elements, commutation and automation are installed. In accordance with the requirements of the guidelines for the operation of energy enterprises, an independent power supply of the safety relays and the control and automation devices is secured.

Figure 34 and Figure 35 shows visualisation diagrams of the technological process and monitoring of the boiler parameters in the biomass boiler plant.

Figure 52 - Pellets factory

Figure 52 - Pellets factory

• 69 •

• 69 •


• 69 •


Figure 54 - Visualisation diagram of combustion process in the boiler

Figure 55 - Visualisation diagram of flow control and boiler capacity

• 70 • • 71 •


• 70 •



The benefits for of the Motocar Service Company Ltd will be possibility to return back the project cost regarding the boiler plant construction through selling of produced wood pellets to the customers. According to the factory management forecast the annual pro-duction of wood pellets of 4,800 ton is expected. The average price for 1 ton pellets is 200 EUR/t. The annual sells of wood pellets will lead to the turnover in the amount of 960,000 EUR/yr. The actual revenues based on the production of pellets will be 432,000 EUR/yr.

The thermal energy savings from energy carrier costs in case of implementation of the new steam boiler are achieved by the difference of the purchasing price for energy (na-tural gas) for the process of drying as a part of production of wood pellets and the wood chips price for its consumption for steam generation for technological needs.

The operational costs for the project implementation include all costs related to the ope-ration of the new steam boiler, water treatment system and deaeration installation in the boiler station and are presented by the following components:

• Salaries for the operational staff servicing the new equipment;• Social security cost for the operational staff servicing the new equipment;• All cost related to the equipment maintenance, repair and spare parts, performed

by the staff;• All cost for training of the operational staff, working clothes and protection

equipment.

The cost for purchasing of wood solid waste and electricity for plant technological own need are taken into consideration too.

Emission reduction projects above a certain size (variable depending on type of techno-logy) can generate carbon credits that can be monetised, in particular under the Joint Implementation mechanism of the Kyoto Protocol. Some companies that have received funding under the Bulgarian Energy Efficiency and Renewable Energy Credit Line have taken advantage of this possibility, including by selling carbon credits to the EBRD.

Determination of the annual emissions of noxious gases is according to Commission Deci-sion of 21.01.2004 establishing guidelines for the monitoring and reporting of Greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council. The emissions factors elaborated by the MOEW (Methodology for calculation of emissions of noxious substances (pollutants) released into the environment based on balance methods) have been used for the noxious gases emissions assessment.

In 2014 the CO2 emissions will be reduced by 78 tons as a total result of the annual savin-gs of natural gas by 2,880 MWhth.

As a result of this renewable project implementation the competitiveness of the manufac-tured products at processing of wood pellets will be expected. As a result of the energy carrier’s costs decrease, an increase in the productivity and sales of final production in Motocar Service pellet factory is also expected.

The new high efficient energy and process equipment and facilities mounting on the

• 70 • • 71 •


• 70 •

plant’s site will increase the safety at work of Motocar Service Company Ltd employees. The equipment is designed and manufactured in accordance with the contemporary Eu-ropean standards for safety at work.

4. GEB Factory features

Production of pellets in Motocar Service from wood is an industry that falls in the energy sector as a source of heat production. Wood pellets are part of the family of renewable energy sources (RES) and just fuels from biomass.

Biomass fuels vary in a wide range of flammable / combustible products from food to wood waste. Using these resources worldwide is still at an early stage, but a form of bio-mass fuel - wood pellets started to become recognizable feature of a number of applica-tions that can replace fossil fuels. In the process of decomposition of the waste biomass are released gases which are much more harmful than carbon dioxide, which is released during the combustion of the same wastes. Waste products are burned to produce heat and electricity, instead of being stored in landfills where they decompose. In certain ca-ses, plants grown specifically for use in the manufacture of fuel to spare pollution. Part of it is burned without further processing, but there is a growing trend in the pressing of these wastes into pellets or briquettes. Both products have the same energy form the material from which they are made, but in contrast, are much more durable, easy to tran-sport, produce less garbage and burn more efficiently. Pellets can be made from many materials including: grass, straw, moss, food waste and wood waste. Appliances for bur-ning pellets are becoming better, efficient, with the ability to provide heating with almost no side intervention. These devices range from large boilers and special equipment for fireplaces to industrial solutions.

The process of converting wood waste into pellets is presented in the chart below. Each step in the process adds value to the entire process. Maintenance costs refer to the en-tire chain and therefore are included in operating costs. Since there is some variation in the management of processes, depending on the technology, types of raw material and equipment prices, these variations are small compared to the price of raw material and logistics costs. It is these differences to determine how profitable you will be undertaking.

5. GBE FACTORY GOALS

Wood pellets are the most common form of biofuel derived from biomass. Soft wood (pine, fir, spruce, poplar, etc.) are the main raw material used for the production of pellets. The pellets are prepared by a technological process wherein finely ground pulp is com-pressed under high pressure. During the pressing separated lignin contained in the wood, which acts as a natural glue soldering of wood particles. There are several major emphasis having a significant influence on our choice to invest in the production of pellets, and we can say that they are more favorable:

• Production of pellets falls in the renewable sector (renewable energy), which is one of the main priorities of the EU;

• 73 •


• Serious funding program “Rural Development” - Measure 123;• The Bulgarian market is underdeveloped with respect to demand for quality pel-

lets;• The lack of real factories producing pellets (mainly has factories of the “gather-

Mountains”), leading to a deficit in the market for quality pellets;• Unrestricted market outside the territory of Bulgaria;• The increasing growth of users of pellets for heating;• Limitation of hotels in the resorts to use firewood, leading to passage of pellethe-

ating;• Low cost for heating;• Credited to “Energy Efficiency” to purchase pellet boilers.

Production of pellets is major funding program “Rural Development” - Measure 123, which is one of the largest program not only budget but also as the maximum grant for the project, which can reach up to an amount of € 4,000,000.

The operational purpose of the biomass installation is production of steam for technolo-gical need connected with the production of wood pellets.

Pellet production is a promising business. The market is steady growth in Europe. All in-dicators show steady growth as demand is greater than supply. Key success factors of the project are the geographic location of the facility relative to the raw material and the organization of perfect logistics.

The monthly expected annual steam production from biomass plant is presented on Figure below.


29

The Bulgarian market is underdeveloped with respect to demand for quality pellets; The lack of real factories producing pellets (mainly has factories of the "gather

Mountains"), leading to a deficit in the market for quality pellets; Unrestricted market outside the territory of Bulgaria; The increasing growth of users of pellets for heating; Limitation of hotels in the resorts to use firewood, leading to passage of pellet

heating; Low cost for heating; Credited to "Energy Efficiency" to purchase pellet boilers.

Production of pellets is major funding program "Rural Development" - Measure 123, which is one of the largest program not only budget but also as the maximum grant for the project, which can reach up to an amount of € 4,000,000.

The operational purpose of the biomass installation is production of steam for technological need connected with the production of wood pellets Pellet production is a promising business. The market is steady growth in Europe. All indicators show steady growth as demand is greater than supply. Key success factors of the project are the geographic location of the facility relative to the raw material and the organization of perfect logistics.

The monthly expected annual steam production from biomass plant is presented on Figure below.

0

100

200

300

400

500

600

1 2 3 4 5 6 7 8 9 10 11 12

Months

Mon

thly

ste

am g

ener

atio

n, M

Wh

Figure 56: Expected produced steam by the biomass plant

6. RES proposed solutions The proposed schemes for supply chains are a priority for Bulgaria and the business model were identified as a result of market research. The principle supply chain scheme for production of thermal energy from wood chips is given on Figure 37.

Figure 56 - Expected produced steam by the biomass plant

• 73 •

• 73 •


• 73 •



The proposed schemes for supply chains are a priority for Bulgaria and the business mo-del were identified as a result of market research. The principle supply chain scheme for production of thermal energy from wood chips is given on Figure 57.

The proposed renewable solution includes principle DEMO GBE Factory project supply chain (see Figure below).

Figure below presents flow chart of the process of trade and logistic of wood pellets.


30

Figure 57: Principle supply chain for production of thermal energy


Wood pellets plant

End consumers

Sales Department (Seller)

Buyer

Sales Department

Retailer

Distributor (Trader)

Municipalities

Figure 58: Flow chart of wood pellet supply chains of Motocar Service


Waste for Production

of Wood Chips

Feasibility

Study

Business

Plan

Step 2.1

Tender

Submission

Procurement

Contract

Step 1.2 Project

Design

Calendar

Schedule

Step 2.2

Transport &

Logistic

Storage

Step 1.3 Project

Financing

Bankable

Loan

Step 2.3


Step 2.4

Project monitoring verification

Commissioning

test and start- up

Step 2.5


30

Figure 57: Principle supply chain for production of thermal energy


Wood pellets plant

End consumers

Sales Department (Seller)

Buyer

Sales Department

Retailer

Distributor (Trader)

Municipalities

Figure 58: Flow chart of wood pellet supply chains of Motocar Service


Waste for Production

of Wood Chips

Feasibility

Study

Business

Plan

Step 2.1

Tender

Submission

Procurement

Contract

Step 1.2 Project

Design

Calendar

Schedule

Step 2.2

Transport &

Logistic

Storage

Step 1.3 Project

Financing

Bankable

Loan

Step 2.3


Step 2.4

Project monitoring verification

Commissioning

test and start- up

Step 2.5

Figure 57 - Principle supply chain for production of thermal energy

Figure 58 - Flow chart of wood pellet supply chains of Motocar Service

• 75 •


Drying of biomass use different structure dryers. Among commonly used are: drum dryers,single strand and multi-band dryers, pneumatic dryers, working with superheated steam,microwave dryers. Choosing the Right drying installation depends on many factors in-cluding the size and characteristics of the feedstock, capital expenditure requirements associated with the operation of the installation and maintenance, energy efficiency, avai-lability of waste heat, etc.

• 74 •

GBE Factory GBE Factory DEMO COLLECTIONGBE Factory New DEMO GBE Factory Project Proposal

31

Delivery

Distribution

Reciept of biofuels

Storage

Sieving

Loading

Pelle

ts/c

hips

Figure 59: Flow chart of the process of trade and logistic of wood pelletsFigure 59 - Flow chart of the process of trade and logistic of wood pellets

Figure 60 - Technical chart of biomass plant

GB

E F

acto

ry

N

ew D

EM

O G

BE F

acto

ry P

roje

ct P

ropo

sal

32

Figu

re 6

0: T

echn

ical

cha

rt o

f bio

mas

s pl

ant

Dry

ing

of b

iom

ass

use

diff

eren

t st

ruct

ure

drye

rs.

Am

ong

com

mon

ly u

sed

are:

dru

m d

ryer

s,

sing

le s

tran

d an

d m

ulti

-ban

d dr

yers

, pn

eum

atic

dry

ers,

wor

king

with

sup

erhe

ated

ste

am,

mic

row

ave

drye

rs. C

hoos

ing

the

Righ

t dr

ying

inst

alla

tion

depe

nds

on m

any

fact

ors

incl

udin

g th

e si

ze a

nd c

hara

cter

istic

s of

the

fee

dsto

ck,

capi

tal

expe

nditu

re r

equi

rem

ents

ass

ocia

ted

• 75 •

• 75 •


• 74 • • 75 •


Drying systems can be classified on various grounds. Among the most commonly used are the pressure of the drying agent, the condition of the wet material, the shape of the solid materials, the manner in which heat is supplied.

Depending on the pressure of the drying agent drying systems generally are divided into drying at atmospheric pressure and vacuum drying. Advantageously drying of the bio-mass in the vacuum drying is that due to the low boiling point of water is reduced and the required drying temperature, which allows the use of waste heat. On the other hand, the capital costs are higher.

Depending on the condition of the wet material drying systems typically divide a drying for drying the solid material, the drying of solutions, suspensions and pastes. Depending on the shape of the solid materials are particulate and drying particulate material, for she-et materials. Depending on the way in which the drying process is performed at the time different continuous dryers and dryers with intermittent batch operation. Depending on how the heat input to the material drying systems are divided into.


Figure below shows the work plan schedule for the renewable project implementation by Motocar Service Company Ltd. For each item, the duration is shown in months – for the period from May 2012 till April 2013.

Figure 61 - Drier for row materials Figure 62 - Storage for wood pellets

Figure 63 - Project work plan schedule

2012 2013

III IV V VI VII VIII IX X XI XII I II III IV V VI VII VIII IX X XI XII

Feasibility Study

Project Design

Business Plan

Bankable Loan Agreement

Equipment Delivery

Civil Works

Installation Works

Commissioning test and Start Up

Total

• 77 •


The project has started with the feasibility study preparation in May, 2012. In the end of2012 the project design, business plan negotiation with commercial bank, signing of anagreement for loan and delivery of equipment were completed. The civil works has star-ted in November 2012 and was completed in January 2013. The Installation works started in January 2013 and is completed in March 2013. The 72-hour commissioning tests and start up will be carried out in April 2013.

8. Financial Plan

The Motocar Sercice Company GBE Factory project cash flow analysis indicates that theproject’s financial indicators are sufficient to serve debt (pay loan interest and repay loanprincipal) within the loan terms negotiated with the bank.

The total GBE Factory project cost is in the amount of 1,400,000 EUR without VAT. The

project cash flow analysis indicates that the project has very impressive financial indica-tors: the project payback period is 3.2 years plus 1 year grace period, IRR is 21.2% and NPV amounts to EUR 470,880.

The cash flow includes the sales of the forecasted reduced CO2 emissions, sold at the conservative price of 15.0 EUR/ton but with no additional cost for monitoring and veri-fication. The forecasted revenues are based on the emissions in tons reduced due to the implementation of the GBE Factory project.

The cash flow analysis in this scenario shows small improvements in all financial indica-tors, as IRR increases from 21.2% to 21.9%, NPV rises from EUR 470,880 to EUR 494,424, and the payback period is 2.5 years.

Table below presents the financial indicators for the both cash flow scenarios as well as the indicators with the sold of CO2 emissions.

In deciding on the feasibility of the project for the production of pellets should be taken into account fixed costs (initial investment costs) and variable costs for the production of pellets by making an estimate of pricing and making several financial models for how win-ner can not be the business. Financial models are made based on cost, capacity now, the source of raw materials, technology and market potential that will be realized production.


35

The cash flow analysis in this scenario shows small improvements in all financial indicators, as IRR increases from 21.2% to 21.9%, NPV rises from EUR 470,880 to EUR 494,424, and the payback period is 2.5 years.

Table below presents the financial indicators for the both cash flow scenarios as well as the indicators with the sold of CO2 emissions.



Table 9: Comparison of the financial Indicators

In deciding on the feasibility of the project for the production of pellets should be taken into account fixed costs (initial investment costs) and variable costs for the production of pellets by making an estimate of pricing and making several financial models for how winner can not be the business. Financial models are made based on cost, capacity now, the source of raw materials, technology and market potential that will be realized production.

9. Risk analysis

9.1 COMPLETION RISK






The results of the sensitivity analysis in case of 10% increase of the total project costs are presented in Table below.

Tabel 9 - Comparison of the financial Indicators

• 77 •

• 77 •


• 77 •


9. Risk analysis

9.1 COMPLETION RISK

Completion risk includes:• Construction risk (capital cost overrun);• Start-up delay risk.

Capital cost overrunThe equipment prices are determined on the basis of the preliminary offers, price infor-mation and information gathered from similar projects. The design expenses are included in the equipment costs. Possible reasons for underestimation of the equipment costs are:

• Incorrect sizing;• Omitted equipment, necessary for the conservation options;• Incorrectly interpreted offer.

The results of the sensitivity analysis in case of 10% increase of the total project costs are presented in Table below.

As a result of the above-mentioned assumption IRR decreases by 2.12% to 19.08%, NPV also decreases by EUR 47,088, and the payback period is 3.52 years. Therefore, the project’s financial indicators are still viable under these assumptions.

Start-up delay riskThe conditions are favourable for keeping the scheduled timetable. The management ishighly motivated and has created structures for project implementation.However, the one-month start-up delay was analysed due to the following risks:

• Equipment supply and installation delay;• The assembling sites are not ready.

One-month delay will lead to IRR decreases by 1.66% to 20.14%, NPV also decreases by EUR 23,544, and the payback period is 3.36 years. Therefore, the project’s financial indi-cators are still viable under these assumptions.


36



Table 10: Cost overrun scenario


Start-up delay risk




One-month delay will lead to IRR decreases by 1.66% to 20.14%, NPV also decreases by EUR 23,544, and the payback period is 3.36 years. Therefore, the project’s financial indicators are still viable under these assumptions.






Incorrect impact definition during the design stage; The proposed technology cannot technically achieve the impact forecasted under

the conditions of the company; The prescribed operation conditions are not complied with; There is a strong handling and human factor dependence evident.

This sensitivity scenario shows the impact of the savings reduction by 8% compared to the base case. The analysis shows that IRR decreases by 1.7% to 19.5%. The NPV decreases by EUR 37,6700 and constitutes EUR 432,210. The payback period is 3.46, and under this scenario the project is still attractive.


36



Table 10: Cost overrun scenario


Start-up delay risk




One-month delay will lead to IRR decreases by 1.66% to 20.14%, NPV also decreases by EUR 23,544, and the payback period is 3.36 years. Therefore, the project’s financial indicators are still viable under these assumptions.






Incorrect impact definition during the design stage; The proposed technology cannot technically achieve the impact forecasted under

the conditions of the company; The prescribed operation conditions are not complied with; There is a strong handling and human factor dependence evident.

This sensitivity scenario shows the impact of the savings reduction by 8% compared to the base case. The analysis shows that IRR decreases by 1.7% to 19.5%. The NPV decreases by EUR 37,6700 and constitutes EUR 432,210. The payback period is 3.46, and under this scenario the project is still attractive.

Table 10 - Cost overrun scenario

Table 11 - Start-up delay scenario

• 78 • • 79 •




• Incorrect impact definition during the design stage;• The proposed technology cannot technically achieve the impact forecasted un-

der the conditions of the company;• The prescribed operation conditions are not complied with;• There is a strong handling and human factor dependence evident.

This sensitivity scenario shows the impact of the savings reduction by 8% compared to the base case. The analysis shows that IRR decreases by 1.7% to 19.5%. The NPV decreases by EUR 37,6700 and constitutes EUR 432,210. The payback period is 3.46, and under thisscenario the project is still attractive.


This worst-case scenario tests the combination of all scenarios mentioned above. Under this scenario capital cost overruns by 12%, start-up of the project delays for 1 month andexpected production of electricity and savings are reduced by 12%. Table below shows the results of the cash flow analysis for the worst-case scenario.

The cash flow analysis shows that IRR decreases by 2.54%, and the NPV reduces by EUR56,506. The financial indicators for this worst case still lead to the conclusion that the project is financially viable. The IRR is 18.66%, the NPV is EUR 414,374 and the payback period is 3.58 years.


37









The cash flow analysis shows that IRR decreases by 2.54%, and the NPV reduces by EUR 56,506. The financial indicators for this worst case still lead to the conclusion that the project is financially viable. The IRR is 18.66%, the NPV is EUR 414,374 and the payback period is 3.58 years.


37









The cash flow analysis shows that IRR decreases by 2.54%, and the NPV reduces by EUR 56,506. The financial indicators for this worst case still lead to the conclusion that the project is financially viable. The IRR is 18.66%, the NPV is EUR 414,374 and the payback period is 3.58 years.

Tabel 13 - Worst case scenario

Table 12 - Savings decrease scenario

• 78 • • 79 •

• 81 •

SLOVAKIA

• 82 • • 83 •


Project of energetic valuation of waste for City of Košice in eastern Slovakia – new steam generator K2

1. Background description of GBE Factory Project

Due to worsening of the climate conditions and absence of appropriate measures with a

scope broad enough to help the environment, the European Council has introduced the

Europe 2020 program, according to which the EU agreed to increase the share of renew-

ables in final energy consumption to 20 percent by 2020. Environment thus becomes one

of the priority areas of the European Union. To support the shift towards a resource-effi-

cient and low-carbon economy, our economic growth must be decoupled from resource

and energy use by:

• reducingCO2emissions

• promotinggreaterenergysecurity

• reducingresourceintensityofwhatweuseandconsume.

A GREEN – BLUE ENERGY FACTORY project promotes the transition from fossil fuel warehouses to second generation industrial and commercial buildings. The GBE Facto-

ry project aims at accelerate the deployment of bio-sources and other major natural re-

sources arising from the sky and the earth for heating, cooling and electricity produc-tion in new or rehabilitated commercial and industrial buildings. In this way GBE

FACTORIEScannotonlybeself-sufficientindustrial/commercialenergybuildings,ten-

ding tozeroemissions,butalso realRESgenerationplants, thatcanshare renewable

electricity and thermal energy with the surrounding industrial or commercial area.

The proposed investment project of energetic valuation of waste for the City of Košice in

easternSlovakiawillbecomeapartoftheEuropeanDEMOGBEFactorycircuitbecause

of efficient use of communal waste and distribution of the energy obtained from its inci-

neration. A major benefit of the project is increased energy recovery of waste as heat

incinerator will produce so-called green (renewable) energy. Energy recovery from waste

is part of the non-hazardous waste management hierarchy. Converting non-recyclable waste materials into electricity and heat generates a renewable energy source, reduces carbon emissions by offsetting the need for energy from fossil sources and reduces me-thane generation from landfills.

• 82 • • 83 •


2. Description of DEMO GBE Factory Project

Waste collection, transport, processing, and disposal are important for both environmen-

tal andpublic health reasons.Municipal solidwaste (MSW) is composedof different

materialsorcommodities. It isnotsimply trash.MSWcontainsvaluablecommodities

such as paper, cardboard, aluminum, steel and energy. An integrated waste management

system considers fluctuating recycling markets, energy potential and long-term landfill

costs and capacity to make a sustainable waste management strategy.

AccordingtoWastemanagementplanofSlovakiafor2011-2015,thestrategicobjective

is diversion from landfill, respectively minimizing (with a view to phasing out) land filling

of recyclable and bio-waste. Energy recovery from waste is the conversion of non-

recyclable waste materials into useable heat, electricity, or fuel through a variety of pro-

cesses, including combustion, gasification, pyrolysis, anaerobic digestion, and landfill

gas recovery. Waste is an energy source at the level of brown coal. The purpose of the

project is to build a new steam generator boiler K2, which will be located inside the exi-

sting building, in the boiler room, in the area of the existing waste hopper, using also the

area of the rubble treatment building, which is located next to the boiled building. Exi-

sting fire grate will be retained and will be connected to the new boiler K2. Along with

the boiler, a compatible flue gas filtering device will be installed in a way and with para-

meters that ensure the discharge of air pollutants in accordance with current legislation

(a separate project proposal will be prepared for the flue gas cleaning system). The

above-mentioned solution will be applied in Kosit urban wastes incineration plant in or-

der to obtain a safe and economical way of energy recovery from civil and industrial

wastes.

The main purpose of the investment is to use the residual steam to generate electric energy and to produce additional steam, operating two lines simultaneously through the

use of residual biomasses and civil sludges, i.e. renewable sources. This energy produc-

tion will contribute to maintain existing prices for the disposal of municipal waste. The

investment will bring security and stability operations as well as lower maintenance costs

for the facilities and thus contribute to a thriving city property.

•85•• 84 • •85•


Location

The project is located in the ca-dastral area of Barca 827,380, deed 2626 parcel number 2705/1,ownedbythe investor.The municipal waste incinera-tor, including related opera-tions, is located at a distance of about 4 km from the southern edge of the urban area of the city, belonging to the land re-gister of the Kokšov- Bakša vil-lage. From the north-west, the area of operation is adjacent to the municipal wastewater tre-atment plant Bakša, from the south-eastern side it is neighbouring with a broad gauge railwayline.Onthesouthsideitboarderswithfarmedagriculturalland.Anintegralpartof the area of operation is a waste transfer station with capacity of 18 000 m3. There are no protected or environmentally sensitive areas in the place of interest.KošiceisthesecondlargestcityinSlovakia.ItisametropolisofeasternSlovakiasituatednear the borders of Hungary (20 km), Ukraine (80 km) and Poland (90 km). The town disposes of production sphere, shopping network, services, schools, scientific and rese-arch base, sport, recreation and other technical infrastructure. The city itself has an area of242,768km2,240688inhabitantsandaresidentialdensityreaching991people/km2.

Figure 64 - Areal view of Teko

Figure 65 - The project area of Barca

•85•• 84 • •85•


About Kosit

Kosit is a modern joint-stock company, which provides services in the field of waste ma-

nagement.KOSITa.s.isoneofthefivemostimportantcompaniesinSlovakiaactivein

this demanding and socially sensitive industry. 66 % percent of its shares are held by the

Italian investors, 34% by the city of Košice.

The company currently provides services for approximately 260 000 residents of eastern

Slovakiaandfor500businesscompanies.Ittreatsmorethan80000tonsofwasteand

employs more than 400 workers annually. The company uses a certified quality mana-

gementsystemsISO9001and14001formanagingitsprocesses.KOSITisinchargeof

treatment and valorisation of the waste of Košice and its 14 neighbouring villages. Its

activities are organized around collecting, sorting, storage and incineration of communal

waste.ItisoneofonlytwoMSWincinerationstationsinthewholeSlovakia.Anywaste

that cannot be recycled is incinerated, thereby producing heat, which offers more value

andutility.Thisheatissoldintheformofsteamtoanotherlocalcompany,TEKO.Thepro-

fits generated by the sale of heat and the economies of scale obtained make it possible

to guarantee a low and dependable prices.

A network for integrated heat production and distribution

TEKOisaheatproductioncompanysupplyingKošice’snetworkofremoteheating,to

which85%ofthecityisconnected.TEKO,withaproductionof855MW,isthelargest

producerof heat inbothSlovakia and theCzechRepublic.Around70%ofheat from

TEKOissold in formofhotwatersteamtoamunicipalserviceenterpriseTEHO, fully

ownedbythecityofKošice.TEHOisresponsibleforthedistributionnetworkofheatthat

aliments85%ofthecity.Theflowchartrepresentstheexchangebetweenthethreecom-

panies and the city of Košice.

Aftertheimplementationoftheproject,KOSIT’senergyefficiencywill increasesignifi-

cantly. Energy efficiency will generate both larger profits for all 3 companies and allow

atotalreductionofCO2emissions.TheCHP(combinedheatandpower)processitself

assists such energy efficiency, even if when certain steps are carried out individually.

• 86 • • 87 •


Benefits ofDEMO GBE Factory Project

BENEFITS FOR ThE INVESTORIntegration of this kind of project will increase the total environmental impact and financial results of the company. The production of electricity for own purpose will result in a be-nefit concerning the decrease in the external purchase of power and decrease in operatio-nal costs. The additional energy production will contribute to maintain existing prices for the disposal of municipal waste and the com-pany’scompetitiveness.Theinvestmentisupto27404000,-EUR.However,thepayback

period of the investment is 8,7 years compared to its lifetime which is 30 years.

GENERAL BENEFITS

Sustainability,integratedwastemanagementsystem,safetyandreliabilityofoperation,production of green energy from its flowing price stability are the main benefits of the wholeinvestmentcompanyKOSITforKošiceanditsinhabitants.Inadditiontosecurityand stability of operations, the investment will bring a lower maintenance costs for the facilitiesandthuscontributetoathrivingcityproperty.Onemustnotforgettomentionthat this project facilitate dealing with the labour demand and thus increases standard of living in the region.

POSITIVE ENVIRONMENTAL IMPACT

Regardingpositiveenvironmentalbenefits,emissionsexpectedafterK2 lineoperationfed by sludges and biomasses, are supposed to be lower than in the present days, with reference to greenhouse gas emissions. Techniques of denitrification, electrostatic sepa-ration and smoke filtering allow to decrease greatly the emission rates (of nitrous oxide, sulfur dioxide, and mobile particles in particular), which are thereby much lower than the national standards allow.

The additional emissions produced per unit of energy are practically equal to zero. That is very efficient system, if considering that nowadays they are for the first half recovery of energy wasted in the atmosphere, and for the remaining part connected to energy acqui-red from renewable sources.

Another positive effect to be mentioned is that more attention is now being paid to monitoringtheenvironmentaroundtheincinerationstation.TheRegionalPublicHealthOfficeinKošiceadmittedthatthepollutionaroundtheenterpriseoriginatesinthepastrather than from the current operations. The company is, nevertheless, acting very re-sponsibly in order to achieve the best possible environmental results. The emissions have decreased; company is still covering costs for regular monitoring of the environment and employees. The employees are obliged to follow all the safety regulations in the company

Figure 66 - Flowchart of the exchanges

• 86 • • 87 •


aswellasthesafetyregulationsgivenbytheSlovaklegislation.Inordertodealingwithsoil pollution, common fl ax has been sown around the establishment. The plant is well knownforitsabilitytodetoxicatesoilofthepollutionbyheavymetals.Moreover,byitsactions, the company also contributes to the revitalization of the region by completing the infrastructure, which is undoubtedly a valuable strategic investment. Waste is beco-ming greater problem for the society every year. In the past, waste separation was a very distantfieldfromthecitizens.ThereforeKOSITcompanyandthetownofKošicedecidedtopaysystematicandcomplexattentiontothis issue.KOSIT iscontributingtoraisingthe awareness of the importance of waste separation. The company funds educational projectsforchildrenandtheyouth,suchasprojectsforSeparatedWasteCollection-SE-PARKO,Enviroolympiada,Enviroshow,DeòZeme(EarthDay).Itwasthoughtthatyouthare among the most receptive and the eff ort, therefore, is of a high importance for the future. Garbage bins and recycling containers are set up throughout the city and garbage bags of 3 diff erent colours are distributed for sorting purposes, along with fl yers and in-struction leafl ets. In an eff ort to disseminate its know-how, Kosit also trains environmental minded students on awareness techniques for children.

GBE FACTORY PROJECT FEATURES

The tonnage of municipal waste produced yearly in Košice has increased from 71,070 tons in1992toabout91735,7tonsin2000.ThemajorityofthiswasteisincineratedinKošice(accordingtostatestatisticsitis80000tons,10t/h).TheKošiceincineratorlauncheditsoperationsinthe1990sundertheownershipofthecity.Sincethebeginning,theincine-rator was equipped for emission prevention with only an electrostatic separator of solid particles. Any other mechanisms for elimination of hazardous emissions were not installed untilrecently.Attheendof2000,theKošiceMunicipalityorganisedaselectionprocedu-re for new investors to modernize the Košice municipal waste incinerator so that it would

fulfil theSlovakandEUemissionstandards.The winner was a consortium of Italian com-panies, Four Italy, followed by the creation of KOSITcompanyon21February2001.

Figure 68 - After the reconstruction

DEMO GBE Factory Project Proposal

8

Figure 67: Before the reconstruction

Figure 68: After the reconstruction

Figure 67 - Before the reconstruction

• 89 •• 88 •


COGENERATION AND CO-COMBUSTION AT KOSIT PLANT

In Kosit as plant are operating two parallel incinerating lines (K1 e K2) - two steam boilers with natural circulation for the vacuum incineration grate type Dusseldorf, with a capa-cityof approximately80000 t/yeareach,usingurbanwastesandactuallyoperatingalternatively. Kosit a.s. has applied the Integrated Pyrolysis Combined Cycle technology that can upgrade existing plants through diff erent fuels coutilization, so it could be rea-ched following: to reduce the investment, fuels and operating costs and to increase the electric energy production and the overall reliability of the system. The integration of the pyrolysis technology within existing generation plants (or the new ones) has the advanta-ge to increase hours of operation, the performances of the power section and the exhaust treatment section, so to strongly decrease the environmental impact of the plant. The environmental impact related to the electric energy unit is, consequently, lower than that produced by the other technologies available now.

Integrated pyrolisis solution at Kosit plant

SPECIFICATIONS OF FORESEEN GOALS

• 89 •


9

Cogeneration and co-combustion at Kosit plant

In Kosit as plant are operating two parallel incinerating lines (K1 e K2) - two steam boilers with natural circulation for the vacuum incineration grate type Dusseldorf, with a capacity of approximately 80 000 t/year each, using urban wastes and actually operating alternatively. Kosit a.s. has applied the Integrated Pyrolysis Combined Cycle technology that can upgrade existing plants through different fuels coutilization, so it could be reached following: to reduce the investment, fuels and operating costs and to increase the electric energy production and the overall reliability of the system. The integration of the pyrolysis technology within existing generation plants (or the new ones) has the advantage to increase hours of operation, the performances of the power section and the exhaust treatment section, so to strongly decrease the environmental impact of the plant. The environmental impact related to the electric energy unit is, consequently, lower than that produced by the other technologies available now.

Integrated pyrolisis solution at Kosit plant

Specifications of Foreseen Goals

Figura 69: Overview of the plant Figura 69 - Overview of the plant

• 89 •• 88 • • 89 •


ThemaingoaloftheDEMOGBEFactoryprojectistosetupaWaste to Energy System, which converts non-recyclable waste materials into electricity and heat, reducing carbon emissions by off setting the need for energy from fossil sources, and reducing methane generation from landfi lls.Theheatproductionofincineratorsreaches12MWinwinterandabout3-4MWinsum-mer. Kosit currently does not exploit all the steam produced. 120 000 GJ of steam is sold to the municipal heating company, the rest is not used. The investment has the purpose to use the residual steam to generate electric energy and to produce additional steam, operating two lines simultaneously using residual biomasses and civil sludges, i.e. renew-able sources.

A signifi cant improvement will be reached at the level of mechanical cleaning system oftheproposedsolution.Siltingandpollutionwasreducedalreadyinthedesignpha-se adopting a solution with vertical tubes, which greatly reduces the possibility of ash deposits. A cleaning equipment to clean the ash deposits settled on the boards in the convection zone by percussion hammers will be installed. This solution allows ensuring continuous operation of the boiler for more than 8000 hours.

Exceptional maintenance (cleaning) in case of shutdown of the device can be carried out without staff having to enter into the interior of the circuit with the fl ue gas. The operation can be performed in the cooler shell and tube bundles (economizer) even when the boiler is in operation.

Regardingtheefficiencyimprovements,theexistingboilerK1hasauseofthermalenergypotentialequalto35%,whereasaftertheinstallationofK2boiler,thelatterwilloperatewith 100% energy effi ciency. The reconstruction and modernization of the second inci-nerationlinewillincreaseincinerationcapacityfromtheprevious67500tto135000tof waste per year. Disposal of these larger quantities of waste will also increase the pro-duction of heat as a by-product of the incineration plant, as it works on the principle of energy recovery from municipal waste.

Figure 70 - Waste to Energy Plant Diagram

• 91 •


RES proposed solutionsBrief description of technical and technological solutions

ThenewK2lineoftheKOSITincineratorinKosicewillconsistofthefollowingcompo-nents and systems:

a) Waste combustion, steam and electricity production: •combustion and steam generation system:

- grid combustion system, air-cooled- power pusher- wet slag remover and slag conveyor - horizontal boiler equipped with the

hammer cleaning system- ash extraction and ash conveying systems

•fluegastreatmentline:- cyclone dust collectors- water cooled cooling tower- bag filter, 4-cell, individually excludable- lime and activated carbon storage and injection systems- dry fly ash extraction system and recirculation system- induced fan with silencer-SNCRDeNOxsystemwithureainjectionintheboiler

•analysisandmonitoringsystemofthefluegasinthechimney •regulatedturbogenerator •thermalcyclewithairseparator,feedpumps,turbinebypass •water-cooledcondenserandheatrecoverysystem •evaporativecoolingsystem

b) Control and regulation system: • New DCS system with No. 2 operator stations and engineering workstation installed in the control room

c) Electricpowerplantandelectricalsubstation5kV/22kV: •transformersubstationandPCandMCCswitchboard; •doubleline22kVundergroundcableforconnectiontotheelectricity distribution network

d) Auxiliary systems: •compressedairsystem •demineralizationwatercircuit •plantproducinghotwaterfordistrictheating

• 91 •

• 91 •


• 91 •


The incinerator consists of the main technological hubs, such as waste bunker for the materials brought in, steam boiler and a fl ue gas fi lter. Utility fi les employed are water tre-atment device and a rubble treatment device, with provision for separation and removal of scrap iron. The waste tank is used for storage of waste that has entered the plant and is designed to maintain depression. The air from the reservoir is sucked into the combustion chamber in order to prevent the accumulation of unpleasant smells and landfi ll gas. The waste stack disposes of two overhead cranes with hydraulic dredges for handling waste and scales for accurate records of the loads into the boiler. Combustion equipment con-sists of a cylindrical grid system “Dusseldorf” produced under license of Deuche Babcock, of feeding equipment, combustion chamber with auxiliary gas burners and a slag bunker. The combustion chamber is a heat radiant with the walls made as membranes protected by refractory layer.


12

plant producing hot water for district heating

Current boiler

New boiler

Figure 71: Draw of the plant Figure 71 - Draw of the plant

Figure 72 - Inceneration plant

• 92 • • 93 •


• 92 •


The grate system consists of 6 cylindrical grids arranged in a 30 degree angle. Grate bars have the air gaps, through which combustion air is blown into the waste layer primarily. This serves simultaneously as a cooling system for the grate bars. Transition bridges are installedbetweenindividualrollers.Stilltransitionbridgestearoffthestuckpartsfromthe revolving rollers. The waste is fed to the fi rst roller (located on the top), where it is dri-edandinflamed.Onthereels2to4towasteisincinerated,onthefifthandsixthitburnsout.Slagfromthelastcylinderheadstoawetslagbunker.Itisfilledwithwater,whichquenches and transports the slag.

Two ignition and two stabilizing natural gas burners automatically provide the required combustion temperature in the combustion chamber of the boiler. “ÈKD” steam boiler issingle-drummed,heatradiant,three-passwithnaturalwatercirculation.Steamheateris two-piece, consisting of a heat radiant part located in the fi rst pass of the boiler, and convection part in the second pass.

Steamenteringtheheater’ssecondpartiscooledbyaninjectedcondensate.Threevolu-mes of evaporator are placed in the second pass of the boiler and in the third pass there are four volumes of water heaters (economizer). The boiler has an automatic regulation function associated with fl ue gas cleaning function.

The heat produced in the form of steam is used for own technological needs and utilized also in the Košice heating network. Fumes from the boiler are cleaned in a fl ue gas fi lter and led to the chimney. The fl ue gas cleaning system is composed of 4 parallel cyclones with high effi ciency for the removal of most of the airborne ash, fl ue gas cooler (quen-cher), reactor, fi lter bags, silos for lime and charcoal, recirculation of residual lime sub-stances, end fan and a duct for evacuating combustion gases into chimney.

Automaticmonitoringsystem(AMS)

Currently runninganautomaticmonitoringsystem(AMS) forfluegas fromboilersK1.Also, just for cleaning fl ue gas boiler K2 and the need for monitoring of pollutants emit-tedintotheatmosphere,isdesignedautomaticmonitoringsystem(AMS).AMSwillbecontinuouslymeasuringvaluesofpollutantparticles,NO2,SO2,CO,HCl,oxygenvolumeconcentration and temperature. Heavy metals and PCDD + PCDF (dioxins and furans) are measured at regular intervals. The analyzer will be installed in the conditioned measuring container near the sampling sites. Equipment and software emission computer provides for the collection and processing of measured data - archiving measurement data, measu-rement protocols, print reports and sending the measured data.

Power capacity

The proposed steam generator, at the rate of 60,000Nm3/h,fluegastemperatureinthecombustionchambermorethan850°C,theoutlet of the combustion chamber around 1000°Candtheentrancetothefluegascle-aningplantsabout250°Cwill achieve the


14

Steam entering the heater's second part is cooled by an injected condensate. Three volumes of evaporator are placed in the second pass of the boiler and in the third pass there are four volumes of water heaters (economizer). The boiler has an automatic regulation function associated with flue gas cleaning function.

The heat produced in the form of steam is used for own technological needs and utilized also in the Košice heating network. Fumes from the boiler are cleaned in a flue gas filter and led to the chimney. The flue gas cleaning system is composed of 4 parallel cyclones with high efficiency for the removal of most of the airborne ash, flue gas cooler (quencher), reactor, filter bags, silos for lime and charcoal, recirculation of residual lime substances, end fan and a duct for evacuating combustion gases into chimney.

Automatic monitoring system (AMS)

Currently running an automatic monitoring system (AMS) for flue gas from boilers K1. Also, just for cleaning flue gas boiler K2 and the need for monitoring of pollutants emitted into the atmosphere, is designed automatic monitoring system (AMS). AMS will be continuously measuring values of pollutant particles, NO2, SO2, CO, HCl, oxygen volume concentration and temperature. Heavy metals and PCDD + PCDF (dioxins and furans) are measured at regular intervals. The analyzer will be installed in the conditioned measuring container near the sampling sites. Equipment and software emission computer provides for the collection and processing of measured data - archiving measurement data, measurement protocols, print reports and sending the measured data.

Power capacity

The proposed steam generator, at the rate of 60,000 Nm3/h, flue gas temperature in the combustion chamber more than 850 ° C, the outlet of the combustion chamber around 1000 ° C and the entrance to the flue gas cleaning plants about 250 ° C will achieve the following performance parameters:

- production of steam at maximal continuous filling: 29t/h,

- steam pressure at the boiler outlet: 4.0 MPa,

- the temperature of the steam leaving the boiler: 390 oC,

- working hours between two (temporary) shutdowns: 8000

- production of electricity: 65 000 000 kWh

Figure 73: Actual control room Figure 73 - Actual control room

• 92 • • 93 •


following performance parameters:- productionofsteamatmaximalcontinuousfilling:29t/h,- steampressureattheboileroutlet:4.0MPa,- the temperature of the steam leaving the boiler: 390 oC,- working hours between two (temporary) shutdowns: 8000- productionofelectricity:65000000kWh

COMPARISON OF OPERATION WITh BEST AVAILABLE TEChNOLOGIES

Applied Technology:

BESTAVAILABLETECHNIQUES(BAT)fortheincinerationofwaste:

- Newsteamgenerator- Newfluegastreatment- Newsteamturbine- Auxiliary systems

• 92 •


15

Comparison of operation with best available technologies

Applied Technology:

BEST AVAILABLE TECHNIQUES (BAT) for the incineration of waste:

- New steam generator

- New flue gas treatment

- New steam turbine

- Auxiliary systems

Figure 74: Control room after the reconstruction Figure 74 - Control room after the reconstruction

•95•• 94 •


Applied technology is comparable with the best available techniques:

•95•


16

Applied technology is comparable with the best available techniques:

Subject comparison Technological or engineering solution

Best available technology Reasoning

Flue gas cleaning - neutralization

Semi-dry lime method Semi-dry lime method conformity with the project

Reduction of NOx - SNCR denitrification

Selective non-catalytic reduction method based on urea

Selective non-catalytic reduction method based on urea

conformity with the project

Adsorption of PCDD/F and heavy metals

Based activated carbon Based activated carbon conformity with the project

Demineralized water Reverse Osmosis Reverse Osmosis conformity with the project

Reducing the acidic components of the flue gas with calcium-dry lime method

Semi-dry lime method Semi-dry lime method conformity with the project

Part of the equipment

Parameter Best available technology

Equipment Solution Reasoning

Separation of magnetic metals

Yes Yes conformity with the project

Burnout in the scoria 3 % 3 % conformity with the project

Burnout in fly ash 3 % 3 % conformity with the project

Waste water from the cleaning of exhaust gases

No No conformity with the project

•95•• 94 • •95•


Identifi ed possible suppliers:

Steam turbine STFS.p.a. http://www.stf.it/

FINCANTIERIS.p.a. http://www.fincantieri.com/

ALSTOMSlovakia http://www.alstom.com/

ANSALDOCaldaieS.p.a. http://www.ansaldoboiler.it/

ČKDGROUP,a.s. http://www.ckd.cz

Smokepurificationplant ATSS.p.A

Kohlbach Holding GmbH http://www.kohlbach.at/

SESTlmače,a.s. http://www.ses.sk


STAViMEXSlovakia,a.s. http://www.stavimex.sk

Boiler RuthsS.p.a. http://www.ruths.it/

Kohlbach Holding GmbH http://www.kohlbach.at/

Visser&SmitHanabGmbH http://www.vsh-boiler.com/

SESTlmače,a.s. http://www.ses.sk

ANSALDOCaldaieS.p.a. http://www.ansaldoboiler.it/


• 97 •• 96 •


1. Project Work Plan

The functional adaptation of the incinerator will be carried out in two phases as follows:

a) First step:- construction of a new boiler (K2)

- grate system overhaul

- a new line of flue gas treatment

- turbine-generator and accessories for the production of

electricity

Quantityofwastetreated:64,000t/yearProductionofelectricity:45,000,000kWh

b) Second step (* topic not treated in present study):- demolition and reconstruction of the

entire

- new combustion chamber equipped

with cooled water grid- new boiler

- 4-stage flue gas treatment units

- secondturbineof10MW

- adaptation and rationalization of existing volume

- redevelopment of green areas and the

nocturnal lighting system

Quantityofwastetreated: 105000t/year

Production of electricity: 65000000kWh

• 97 •

Figura 75 - K1 incineration line

Figura 76 - K1 incineration line

Figure 77 - New boiler (K2)

• 97 •• 96 • • 97 •


Designed alternatives

Figure 78 - Designed alternatives



• 99 •• 98 •


• 99 •

DEM

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Put into use

Plant testing

Trial operation

High and low voltage el.iInstallations

Steam turbine assembly

Steam turbine supply

Boiler PED inspection

Boiler hydraulic testing

Steam turbine testing

Construction flue gas treatment system

Grate system overhaul

Construction of a new boiler K2

Site preparation

Demolitions

Activity

Gantt Chart

DEM

O GB

E Fa

ctor

y Pro

ject P

ropo

sal

22

1

Month

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

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• 99 •• 98 • • 99 •


2. Financial plan

Total amount of costs for the project has been calculated to reach an amount of27404000EUR.

Project fi nancing is one of the key successful factors for any project. Among the standard resourcesofprojectfinancinginSlovakiawecaninclude:

•internalresources(owncapital);

•externalresources(bankloan,EUfunds,financialleasing,etc.);

•alternativeresources(venturecapital,strategicpartnership).

In practice, most of the projects are fi nanced by the combination of the sources mentio-nedabove.BankloansareoftenusedbySlovakcompaniesasasourceofco-financingofthe projects supported by European Union.

In2011,therewere14commercialbanksand15branchesofforeignbanks,whichoperatedinSlovakfinancialmarket.Nineofthemoffermedium-andlong-termfinancingofcon-struction, purchase, extension and reconstruction of real property. Bank loans are mostly used to funding of asset acquisition rather than to direct fi nancing of project. Innovative projects are associated with risks, which have to be compensating with guarantees as suchashistoryofcompany,solvency,andprojectproposal.NationalcommercialfinancialinstitutionsthathaveexperienceandinterestinfundingEEandRESprojectsare:

•Slovenskásporite¾òa(www.slsp.sk)

•ÈSOB(www.csob.sk)

•Tatrabanka,a.s.(www.tatrabanka.sk)

•DexiabankaSlovensko(www.dexia.sk)

•Všeobecnáúverovábanka(www.vub.sk)

•OTPbanka(www.otp.sk)

•SlovenskáZáruènáaRozvojováBanka(SZRB)(www.szrb.sk)•CommerzbankAG(www.commerzbank.sk)•VOLKSBANKSlovensko,a.s.(www.luba.sk)–from15February2013SberbankSlo-vensko (www.sberbank.sk)


23

2. Financial plan

Total amount of costs for the project has been calculated to reach an amount of 27 404 000 EUR.

Financial calendar of the project

Year Amount in EURO

2012 13 466 750,-

2013 13 137 250,-

2014 800 000,-

Total Project Cost: 27 404 000,- EUR

Project financing is one of the key successful factors for any project. Among the standard resources of project financing in Slovakia we can include:

internal resources (own capital); external resources (bank loan, EU funds, financial leasing, etc.); alternative resources (venture capital, strategic partnership).

In practice, most of the projects are financed by the combination of the sources mentioned above. Bank loans are often used by Slovak companies as a source of co-financing of the projects supported by European Union. In 2011, there were 14 commercial banks and 15 branches of foreign banks, which operated in Slovak financial market. Nine of them offer medium- and long-term financing of construction, purchase, extension and reconstruction of real property.

Bank loans are mostly used to funding of asset acquisition rather than to direct financing of project. Innovative projects are associated with risks, which have to be compensating with guarantees as such as history of company, solvency, and project proposal.

National commercial financial institutions that have experience and interest in funding EE and RES projects are:

Slovenská sporite¾òa (www.slsp.sk)

ÈSOB (www.csob.sk)

Tatra banka, a.s. (www.tatrabanka.sk)

Dexia banka Slovensko (www.dexia.sk)

Všeobecná úverová banka (www.vub.sk)

OTP banka (www.otp.sk)

Slovenská Záruèná a Rozvojová Banka (SZRB) (www.szrb.sk)

• 101 •


Documents required by the banks for project evaluation are mostly following:

•businessplanstatingtheprojectdescriptionandlocation;

•overallprojectcostbudget;

•projectrealizationschedule;

•informationaboutthepermissions-planningpermit,buildingpermit,

•informationaboutbuildingcontractor,

•ownershiptitleandcadastralmap,

•expert’sopinion(intheeventofexistingrealproperty),

•informationaboutprojectyields,

•informationaboutcostsofrealpropertyoperation,

•client’sparticipationinthetotalprojectcosts(theamountofownresources).

• 101 •


25

Figure 81: Selected sources of project financing in Slovakia

Opportunity for project funding

On top of the conventional international grants and subsidies, alternative support mechanisms are required to reduce the investment risks and thus the threshold for entering the Slovak market: tax and policy incentives by Slovak authorities: energy taxation and environmental legislation; support funds and semi-commercial credit supply by (e.g. soft loans) by local organizations;

(e.g. Slovak Environmental Fund).

Figure 81 - Selected sources of project fi nancing in Slovakia

• 101 •


• 101 •


Opportunity for project funding

Ontopoftheconventionalinternationalgrantsandsubsidies,alternativesupportmecha-nisms are required to reduce the investment risks and thus the threshold for entering the Slovakmarket:

• tax and policy incentives by Slovak authorities: energy taxation and environmental legislation;

• support funds and semi-commercial credit supply by (e.g. soft loans) by local organizations;(e.g.SlovakEnvironmentalFund).

TheMinistryofEnvironmentoftheSlovakRepublicallowsdrawingfinancialassistancefromEUfundsfortheperiod2007-2013withintheOperationalProgrammeEnvironment:

•PriorityAxis4–Wastemanagementprojects;

•Operationalobjective4.2–Supportofwasterecoveryactivities;

•ActivitygroupIV–Energyrecoveryfromwaste;

•A.Projectsaimedatconstructionoffacilitiesforenergyrecovery.

TheEEAFinancialMechanismandNorwegianFinancialMechanismrepresentthecontri-butionofthedonorstates,i.e.Norway,IcelandandLichtensteintoseveralmemberstatesoftheEuropeanUnion.ThecontributiontotheSlovakRepublicismorethanEUR80mil-lionfortheperiod2009–2014andisdividedintonineprograms.Oneofthemsupportsthe Green Industry Innovation.Despite diffi cult market conditions and outdated technology making the transition to Green economyonerous, KOSIT decided to invest in themodernization evenwithoutobtaining EU funding. The fact will aff ect only the return of the investment. In the case of acquisitionofthegrantthepaybackperiodoftheprojectwillbeabout5,5years,other-wise the payback period will be extended up to 8,7 years, which still represents a very impressive fi nancial indicator.

Financing of energy projects will increasingly require the involvement of commercial in-vestors. In addition to governmental grants and subsidies, local support measures like tax and policy incentives will be needed in order to lower investment risks.

Proposed Financing OptionShareholders(15%) 3518000,-EURLoan(85%) 23500000,-EUR(VÚBBanka)KOSITa.s. 386000,-EUR


26

The Ministry of Environment of the Slovak Republic allows drawing financial assistance from EU funds for the period 2007-2013 within the Operational Programme Environment:

Priority Axis 4 – Waste management projects;

Operational objective 4.2 – Support of waste recovery activities;

Activity group IV – Energy recovery from waste;

A. Projects aimed at construction of facilities for energy recovery.

The EEA Financial Mechanism and Norwegian Financial Mechanism represent the contribution of the donor states, i.e. Norway, Iceland and Lichtenstein to several member states of the European Union. The contribution to the Slovak Republic is more than EUR 80 million for the period 2009 – 2014 and is divided into nine programs. One of them supports the Green Industry Innovation.

Despite difficult market conditions and outdated technology making the transition to Green economy onerous, KOSIT decided to invest in the modernization even without obtaining EU funding. The fact will affect only the return of the investment. In the case of acquisition of the grant the payback period of the project will be about 5,5 years, otherwise the payback period will be extended up to 8,7 years, which still represents a very impressive financial indicator.

Lifetime of the plant: 30 years

Revenues: 4 000 000,- EUR / year Sale of electricity

Savings: 600 000,- Electricity savings

High maintenance costs

Internal Rate of Return: 15 years

Pay-Back Period of Project: 8,7 years

Financing of energy projects will increasingly require the involvement of commercial investors. In addition to governmental grants and subsidies, local support measures like tax and policy incentives will be needed in order to lower investment risks.

Proposed Financing Option

Shareholders (15%) 3 518 000,- EUR

Loan (85%) 23 500 000,- EUR (VÚB Banka)

KOSIT a.s. 386 000,- EUR

• 102 •


• 103 •• 102 •


Annex I.

Fundamental waste management legislation in the Slovak Republic

• ActoftheNationalCouncilofSRNo223/2001Coll.onwasteandonamendmentsof certain acts as amended by subsequent regulations;

• ActoftheNationalCouncilofSRNo17/2004Coll.onchargesforwastelandfillinginthewordingoftheActNo587/2004Coll.andActNo515/2008Coll.;

• ActoftheNationalCouncilofSRNo.119/2010Coll.onpackages;

• DecreeofMoESRNo283/2001Coll.onimplementationofcertainprovisionsoftheAct on wastes as amended by subsequent regulations;

• DecreeofMoESRNo284/2001Coll.onestablishingtheWasteCatalogueasamen-ded by subsequent regulations;

• DecreeoftheMoENo315/2010Coll.onelectricalandelectronicequipment(EEE)and waste electrical and electronic equipment management (WEEE);

• DecreeoftheMoENo125/2004Coll.settingthedetailsofendoflifevehicles(ELV)processing and some requirements for vehicle production in the wording of Decree oftheMoENo227/2007Coll.andDecreeoftheMoENo203/2010Coll.;

• DecreeofMoESRNo126/2004Coll.onauthorization,onissuingofexpertopinionsin issues of wastes, on authorization of persons authorized to issue expert opinions and on verifying of professional competence of such persons in the wording of the DecreeofMoESRNo209/2005Coll.;

• DecreeoftheMoESRNo127/2004Coll.onchargescalculationforcontributionstotheRecyclingFund,onthelistofproducts,materialsandequipmentforwhichcontributiontotheRecyclingFundmustbepaid,andonthedetailsconcerningap-plicationforprovisionofthemeansfromtheRecyclingFundinthewordingoftheDecreeoftheMoESRNo359/2005Coll.

• 102 • • 103 •• 102 •

germany

• 104 • • 105 •

• 106 • • 107 •

gBe Factory GBE Factory DEMO COLLECTION

DemO gBeFaCTOry J. Schmalz gmbH(glatten - germany)

1. BaCKgrOUnD anD raTIOnaLeFOr THe PrOPOSeD PrOJeCT “DemO gBeFaCTOry”

The aim of the GBE FACTORY project is to promote and spread the use of renewable ener-gy sources in order to produce electricity and heat in renovated or newly built industrial or commercial buildings.

Throughout the project, some cases have been collected and described (exemplary cases and reference cases). They are renewable energy plants already implemented in different industrial and commercial fields that could be an example to other businesses wishing to adopt these technologies. Among these, it’s important to highlight a GBE FACTORY DEMO proposal of an industrial building that uses, as much as possible, renewable resources to produce energy and it is a replicable model all over Europe.

In Germany, the project partner Italian Chamber of Commerce for Germany capitalizes the experiences of the project and proceed to identify a case which aims to become a signifi-cant GBE FACTORY DEMO in Germany.

The identified industrial site is that of J. Schmalz GmbH. Schmalz is a positive energy company. This means that the company produces more electricity and heat from regenerative, renewable energy sources than is consumed by all operations. This is achieved on the one hand by a continuous, consumption-based expansion of plants dedicated to renewable energy production. On the other hand, Schmalz takes innova-tive measures to reduce the energy-consumption during operations.

The measures implemented by Schmalz in the areas of environmental protection and re-source efficiency are explained on the Schmalz eco-discovery trail. Every year, several groups of interested visitors are guided through the eco-discovery trail – Schmalz hereby intends to motivate others to emulate its example. Schmalz considers sustainability a ho-listic system consisting of economic success, ecological responsibility, and social commit-ment. For this purpose, the company combines its various measures in the Schmalz ecoSY-STEM. It represents long-term stability, resource-efficient products and processes, as well as fair play towards customers, employees, suppliers, and the organization.

In addition to the buildings realized to date, Schmalz is currently planning the construction of two further buildings which are to run on 100% self-generated, renewable energy. The objective is therefore to integrate - with a project proposal - the use of renewable energy created by the company for the operation of the two company buildings due to be built.

Figure 82 - J. Schmalz GmbH Headquarters

• 106 • • 107 •


In this way Schmalz becomes a GBE FACTORY DEMO since it provides:

• thegenerationofbothelectricityandheatthroughrenewablesources• theexploitationofdiversifiedsourcestoproducerenewableenergy• theuse,withinthecompany,oftherenewablyproducedenergy• theproductionofmorerenewableenergycomparedtohowmuchthecompany

needs

2. DeTaILeD DeSCrIPTIOn OF PLanT FOreSeen: BUILDIngS, HOSTeD PrOCeSSeS anD energy reQUIremenTS

J. Schmalz GmbH is headquartered in Glatten, Germany and was founded in 1910 by Jo-hannes Schmalz. Today the third entrepreneur generation is managing the company: the founder`s grandsons Dr. Kurt Schmalz and Wolfgang Schmalz. Schmalz is one of the worldwide leading providers of automation, handling and clamping systems, providing customers in numerous industries with innovative, efficient solutions based on vacuum technology. Schmalz products are used in a wide variety of production processes – for example, as grippers on robot arms in the production of car bodies, in CNC machining centers as clamping solutions for furniture pieces, or used by an operator to lift items ranging from boxes to solar modules. Schmalz customers can either choose from a diver-se line of components or they can benefit from a complete solution that is custom-tailo-red to their requirements. Schmalz is dedicated to its customers, providing groundbrea-king innovation, exceptional quality and comprehensive consultancy. The company is headquartered in Glatten (Black Forest region of Germany) and is active in 15 additional countries with their own subsidiaries. Schmalz employs a total of around 750 persons worldwide.

The Schmalz company has been collecting experience in the sustainable use of natural resources for three generations. The use of renewable energy was a permanent part of the company philosophy right from the early years. Schmalz increased its investments in sustainable energy generation proportionally to its energy requirements. Today Schmalz is a Positive Energy Company, generating more energy from renewable resources than it consumes. This commitment has already been awarded multiple times.

The premises include approximately 29,500 square meters of available surface. All buil-dings on the premises of the J. Schmalz GmbH are incorporated into an energy network. In this way, all further buildings, such as the objects currently under construction, are in-corporated into the energy network. Thereby, the philosophy and permanent objective of the company are to save energy or to additionally produce renewable energy, with the result that Schmalz is able to boast a positive electricity and heat balance over the long term. A case in point is the most recent example – the production building, which has been in use since 2009. The move into the new building resulted in the merging of all production and assembly areas into one single area. All materials administration and lo-gistics were reorganized and optimized by means of this measure. The energy demand of the building lies approximately 57 percent below the value of the German Energy Saving Regulation (EnEV).

• 109 •• 108 • • 109 •


ecological features of the production building

• Gravelbaseunderthenewbuildingconsistsoflocallycutandcrushedsandstone

• Arainwatercisternof320m³suppliesthesanitaryfacilitiesaswellastheoutdoorir-rigation and the operation of car wash stations

• North-lightsaw-toothroofforoptimumlightingconditionsandforheatprotectioninsummer

• North-lightsaw-toothroofservesassub-constructionforphotovoltaicmoduleswithan additional performance of 259 kWp (performance of the entire company-owned photovoltaicpowerplant:533kWp)

• Compensatorymeasuresagainstsurfacesealingbymeansofourownfloodretentionbasin upstream of the hydropower pond as well as an infiltration trench alongside the hall road

• Brakingenergyoftheautomaticsmallpartsstoreisfedbackintotheelectricitygrid

• Halllightinghasadaylightdetectioncontrolandisdimmedautomatically(includingDALI bus technology) with high-efficient bulbs

• All-overunderfloorheating,providedbyin-housewoodchipheatingsystem

• Heatuseofthemanufacturingplantsaswellastheusedairofthehallandcontrolledsupply to the heating system by means of an efficient rotary heat exchanger in the ventilation facilities during winter

• Reducedairpollutionandlittleheattransferduetocentralexhaustventilationinthemachines as well as two ventilation facilities in summer

• Automatedlouverwindowsfornaturalnighttimeventilationandcoolinginsummer

• Roofedrecyclingareawith11containersitesfortheseparationofrecyclablematerial(99 % recycling rate)


• 109 •• 108 • • 109 •


electricity and heat balance

The electricity and heat balance shows a comparison of the production of renewable energy and energy demand. Over a long-term view of five years the balance reveals a positive result.

energy self-sufficiency

The supply of electricity and heat to the Schmalz company comes directly from their own energy sources whenever technically possible and economically reasonable. As the sup-ply of electricity from renewable energies rarely corresponds to the electricity demand, a part of the self-generated electricity is fed into the public network. For this purpose, Sch-malz has been cooperating with the electric company Elektrizitätswerke Schönau, a mul-tiple-award winning supplier of pure CO2-free green energy.

Schmalz has the features to be a GBE Factory DEMO because:

• Schmalz creates ecological compensatory measures whenever technically possibleand economically reasonable – despite strong business growth which makes the con-struction of new buildings inevitable

• Schmalzdoesnotonlyfocusontheproductionofregenerativeenergiesbutsavesonresources wherever possible

• Schmalzservesasanexemplaryrolemodelandenablesthepublictoinformitselfonthe measures

Figure 84 - Electricity and heat balance 2008 -2012

• 110 • • 111 •


• Schmalzallowstoexploitthelargesurfacesofbuildingstoproduceelectricityorhotwater from the sun

• Schmalz produces more renewable energy compared to how much the companyneeds, in order to run the entire production platform

Project Proposal:

Construction of 2 new company buildings in 2013-2015 and incorporation into an alre-ady existing energy network

The Schmalz company has grown continuously during the past years. In order to cope with this growth, J. Schmalz GmbH intends to invest in the construction of further buil-dings in the coming years: an office building as a research and testing center and a recep-tion building as a communication center for visitors and employees.

Even during project planning, ecological issues play a major role. On the one hand, possi-bilities to expand the renewable energy sources are consistently used. At the same time, the energy saving potential is fully taken into account during the planning stage and other ecological compensatory measures are implemented.

energy network on the premises

All buildings on the premises of the J. Schmalz GmbH are incorporated into an energy network. It therefore seems appropriate to integrate all further buildings, such as the objects planned, into the energy network.

1 Water power plant with electric gas station for vehicles from the car pool, of employees, or the public 2 Circular route of the Schmalz eco-discovery trail 3 Near-naturalhabitatwithinlet-structureintowaterpowerplant 4 Rainwater retention basin 5 Wood chip heating system for heat supply via the district heating network 6 Windpowerplants(3and26kmaway) 7 Photovoltaic plants for electricity generation 8 Machine hall ventilation with heat recovery system 9 North-light saw-tooth roof for reduction of thermal load 10 Solar plant for hot water generation 11 Parking lots with honeycomb-type paving stone to avoid surface sealing 12 Cisterns for rainwater exploitation13 Greeningofrooftops

• 110 • • 111 •


3. FOreSeen gOaLS In Term OF reS anD energy SaVIngWITH THe “DemO gBeFaCTOry“ anD aDVanCemenTBeyOnD THe STaTe OF THe arT

Information about the new buildings

Office building B2research and test centerConstruction costs: approx. € 4 mln.Commencement of construction: March 2013Move-in: February 2014Area:2,916m2grossfloorspace

• Three office floors, each with580 m2

• Groundfloorforfairstoreandlogisticsaswellasforlong-termtestingandadvan-cedevelopment,withatotalofapprox.830m2

• Spacefor120newofficedesksintheareasofresearch&development,construc-tion and distribution

ecological measures• Centralmechanicalventilationfacilitywithheatrecoveryandcoolingorprehea-

ting of the supply air via the transmission through a rock cavity, as well as C02-air sensor

• Automaticallycontrolledair-supplywindowsonallofficefloorsfornaturalnight-time circulation and temperature reduction in thermal mass in offi-ces in summer

• Greening of rooftops for goodclimatic conditions, rainwater harvesting and microbiology, as well as roof-terrace for employe-es to use during breaks

• Intelligentarea illuminationwithmotion detectors and daylight sensors

• GPS-controlledexternalsunpro-tection

• Sheet plate front with a smallecological footprint, high recycling rate and incorporated sun protection

• Installationofraised-floorsystemontheofficefloors

• Higherinsulationstandards


Figure 86 - Heat generation

• 112 • •113•


BelowthethresholdvaluesetbyENEVby32%

reception building a3Communication center for visitors and employeesConstructioncosts:approx.€6.3mln.

Commencementofconstruction:October2013

Move-in: February 2015

Area:2,150m2grossfloorspace

Groundfloor: receptionarea, conference room, technical rooms,warehouseandcold-storage cells for the kitchen, dressing room for kitchen staff

1stfloor:staff,applicantscenter,customerareawithconferenceroomsandsmallexhibi-tion area / hospitality area

2ndfloor:companyrestaurantwithbistrocaféandwintergarden,terrace,kitchenwithadjoining rooms, roofed walkway to the production facility.

ecological measures• CoolingbymeansofwaterfromtheGlatt(adjacentsmallriver)

• Threeventilationfacilitieswithheatrecoveryanddemand-orientedregulation(e.g. CO2-sensor, motion detectors)

• Connection to thedistrictheatingnetworkof the in-housewoodchipheatingsystem

• Underfloorheatingsystemonthegroundfloor

• Pipesintheceilingofthediningareainthecompanyrestaurantaswellastheoffice rooms are used for cooling and minor heating (thermal component activa-tion)

• Externalsunprotection,optimizedviadaylightsimulation

• PVmodulesonthewalkway,shadingelementsonthesideofthebuildingandroofwithanestimated30kWperformance

• Useofdemolitionwasteoftheoldbuildingsasballastbed

• Tripleglazingandhighinsulationstandardofthebuilding,optimizedbymeansofthermal building simulation as well as thermal bridging calculation

• Useofthethermaldischargeofthekitchenandcold-storagecellstofeedintotheheating system

• Considerationofconstructionmaterialswithecologicaldemands

• Useofhigh-efficiencymotorsinventilation,heatingpumpsanddirect-drivecableelevators

• BuildingwillbeequippedwithenergysavingLEDlighting,includingmotionregu-lation and daylight control. High level of natural light due to additional courtyards and extensive glazing of the facade

BelowthethresholdvaluesetbyENEVbyatleast36%.

• 112 • •113•


4. BeneFITS FOr THe InVeSTOr FrOm THe gBeFaCTOry anD POSITIVe enVIrOnmenTaL ImPaCTS“As we do not think in quarters but rather on a long-term basis, our business strategy in-tends for economic, ecological and social sustainability to complement each other. This allows us to fund our growth ourselves, to secure jobs on a long-term basis, and to acti-vely assume responsibility for our social and ecological obligations”, say the managing partners Dr Kurt Schmalz and Wolfgang Schmalz.

For many years, all investments have been consistently carried out in terms of sustainabi-lity. In this context, awareness of the finitude of fossil raw materials and the necessity to reduce CO2 plays a decisive role. This way, an extensive network of renewable energy providers has been created in the past years. Today, the Schmalz company produces more energy than it consumes and therefore constitutes a positive energy company. Fur-thermore, resource efficiency and environmental protection determine the company’s daily conduct. A whole package of innovative measures relating to human resources and welfare matters make the Schmalz company one of the most attractive employers in Ger-many.

The Schmalz company’s motivation goes way beyond merely adhering to legal standards or gaining competitive advantages. It is marked by an ethical and moral obligation to keep the company’s ecological footprint as small as possible. At the same time, it attests to the assumption of responsibility for future generations. Schmalz demonstrates how a production plant can operate sustainably and inspires others to emulate its example.

Positive environmental impactsAs a manufacturing company, the Schmalz objective is to minimize the environmental impact of its business activity. In this context, the company places great emphasis on re-ducing its own CO2 footprint.

In this area, Schmalz is setting new standards for the manufacturing industry. Through the consumption of renewably generated internal and external energy, a large part of the energy consumed remains CO2-neutral. Only the fuel and heating oil applied additionally emitted93tonnesofCO2intotalin2012.Atthesametime,thewindandphotovoltaicenergy units not consumed by the company prevented CO2 emissions amounting to 1,870 t, which otherwise would have developed from conventional electricity production.

Altogether, Schmalz generated a CO2 net credit in 2012 and relieved the burden on the environment by preventing the emission of 1,277 t of the damaging greenhouse gas.

By means of the planned extensions described in the proposal above, this positive balan-ce will be further developed in the future.

• 115 •• 114 •


5. eXHaUSTIVe DeSCrIPTIOn OF USeD regeneraTIVe PLanTS anD PrOPOSeD SOLUTIOnS

As a positive energy company. Schmalz relies on manifold measures for the generation of renewable energy. The following sources for energy generation are already being used or are to be expanded in the coming years:

5.1 WInD energy generaTIOnWind power plants:Two plants with nominal capacity: 2,100 kW Energy yield per year (2012): 2,700,000 kWh Usagesince1999Pay-off period: > 10 yearsReduction of CO2 emissions: approx. 1,823 tper year.Schmalz operates two wind power plants: One inGlatten(3kmfromthepremisesofthecom-pany), a further one in Dunningen (26 km from the company’s premises). The energy genera-ted by the wind power plants is fed into the public electricity supply network.

5.2 SOLar energy generaTIOnPhotovoltaic power plants:Nominalcapacity:533kWEnergy yield per year (2012): 576,000 kWh Usage since 2005 (extension in 2009, 2010,and 2011)Pay-off period: 8-10 yearsReductionofCO2emissions:approx.385tperyearThe photovoltaic power plants are mounted on the roofs of the company building. The plants with a total of 2,187 polycrystalline and

monocrystallinePVmodulesoccupyanareaof3,800m2. Solar thermal installations on the roofs of the company’s premises, with an annual gain of approx. 11,000 kWh, support the water heating.

5.3 HyDrOPOWer generaTIOn

Hydroelectric power plant:Nominalcapacity:32kWEnergy yield per year (2012): 123,000 kWhUsageofhydropowersince1910Reduction of CO2 emissions: approx. 86 t per year When Johannes Schmalz came to Glatten in 1910 and founded the company, he was depen-dent on the water wheel of the mill. He used

• 115 •

Figure 87 - Wind power plants

Figure 88 - Photovoltaic power plants

Figure 89 - Hydroelectric power plant

• 115 •• 114 • • 115 •


it to operate his machines via transmissions. Although the municipality of Glatten had already been connected to the electric power supply, Johannes Schmalz in 1922 replaced the old mill wheel with two Francis turbines and thus opened the chapter of renewable electricity generation through Schmalz.

5.4 HeaT generaTIOn By meanS OF rene-WaBLe raW maTerIaLSWood chip heating system:Nominal capacity: 500 kWEnergyyieldperyears(2012):1,303,000kWhUsageofwoodchipssince1986Pay-off period: 8-10 years Reduction of CO2 emissions:approx.348tIn 2007, the wood chip heating system was re-placed by a plant that was significantly more efficient with 500 kW of nominal capacity. To

date it supplies all premises via a district heating network. The untreated natural wood required for the plant originates from thinning and from forestry in local woodland.

5.5 energy SaVIng meaSUreS anD SaFegUarDIng reSOUrCeSSchmalz contributes to low energy consumption with the following measures for reducing electricity usage:

• Thebrakingenergyofthestackercranesoftheautomatedsmallpartsstoreis recovered and re-used

• Circuitsnotinuseareswitchedoffatnightandatweekends

• Lighting is regulated in office and production buildings according to daylight detection control

• Energy-savinglightsareutilizeduniversally

• Onlyparticularlyefficientandenergy-savingcomputers,monitors,andperipheraldevices are selected

• Thecompany-widecompressedairsupplyisfedbyfrequency-controlledcom-pressors and monitored by regulation software. The compressed air level was lowered by 1 bar.

Schmalz obtains heat mainly from the company-owned wood chip heating system. Here, too, reduction in consumption is a top priority, and for this purpose, various measures were also implemented:

• TheITserverroomiscooledwiththehelpofsprinklerwater.Theheatedwaterisstored in the sprinkler basin. The heat is withdrawn from the water by means of a thermal heat pump and returned to the heating system at a higher temperature; it is also used for process heat.

• Thewasteheatofcompressorsisledtotheheatingdistributionsystemandthewashing plant via a heat exchanger. The heat of the hall’s waste air is also recove-red via a rotating air-to-air heat exchanger and fed into to the hall’s supply air.

• Afreeoutsideaircoolingsystemmostlyhelpedtoavoidthefittingofairconditio-ning systems. In this way, the buildings are mainly cooled at night by automated

Figure 90 - Heat generation

• 116 • • 117 •


louver and roof windows, as well as supply air fans in the halls. An exhaust ventila-tion that is mounted centrally onto the machine tools makes for a low air pollution and heat input during summer.

• Inthemanufacturingbuildingandinareasoftheofficebuildingsalow-tempera-ture heating is in use.

• Thelarge40,000litersbufferstorageofthewoodchipheatingsystemhelpstostore the heat for a long period, thereby reducing the required cycles of operation of the heating plant and increasing its efficiency.

• The overall energy performance of the approx. 14,000m2manufacturing andlogistics building is around 57 % lower than the value set by the German Energy Saving Regulation.

• Thecentral controlof theheating, ventilation, andcoolingensuresanoptimaladjustment between the plants.

• Thenorth-lightsaw-toothroofsonthemanufacturingbuildingandtheofficebu-ildings ensure optimal lighting conditions while simultaneously serving as heat protection in summer. They also form the sub-construction of a photovoltaic po-wer plant.

Load managementSchmalz has been using a load management system since 2012. It optimally regulates the electricity demand in order to avoid expensive power peaks, and to level electricity con-sumption. The load management system ensures an automated cut-off of electric loads that are not necessarily required in the current course of operations as soon as there are signs of a load peak.

5.6 PLanneD meaSUreS OF THe neW BUILDIngS (PrOJeCT PrOPOSaL)

Figure 91 - New building project proposal

• 116 • • 117 •


5.6.1 OFFICe BUILDIngS B2Research and test center

Move-in beginning February 2014

The following energy strategy for the new building is being planned or proposed:

Heating

• Connectiontothewoodchipdistrictheatingnetwork-optimalprimaryenergyfactors

• Underfloorheatingonlevel0withlowtemperature

• Tripleglazingonglassfacadeandwindows

• Highinsulationstandardforthebuilding(16cmfacadeaswellasroof)

Cooling / Ventilation

• Preconditionedsupplyairoftheventilationplantviarockcavityonthebuilding– preheated in winter and cooled in summer

• CO2 sensor for ventilation control aswell as forced ventilation function – de-mand-oriented – therefore less dry air in winter as well as reduced consumption of electricity and increased service life of filters and wear parts

• Externalsunprotectiononallwindowswithinsolationinordertodecreasesolarradiation and heating of the office rooms in summer as much as possible

• Ventilationsystemwithhighdegreeofheatrecoveryandhigh-efficiencymotors

• Bymeansofefficientcontrolsystemsandnaturalpreventivemeasures(shading,efficient lighting and computers, high insulation standard, triple glazing, north-facing orientation, nightly ventilation) it is possible to do without a refrigerating machine or technical cooling while maintaining a high level of comfort in summer

• Nightlyventilationfunctionoftheofficeventilationplantinordertocoolthero-oms at night and to activate the storage mass of the building and the facility.

Illumination / daylight

• Generousall-aroundwindowhingeontheofficefloorsforhighdaylightfactor

• Daylight-controlled illumination–optimizedarea illuminationbymeansofDalicontrol system (corridor areas / traffic zones with lower lux value) as well as con-trol of the open-plan office illumination in particular zones via large number of motion detectors

• CurrentlycheckingtheeconomicviabilityofanLEDpanellightversusprismlightversus specular louver luminaire

rainwater harvesting

• Connectionofbuildingtointegratednetwork,rainwatercisternfortoiletflushing

Other• Extensive greening of rooftops for further good climatic conditions, rainwater

retention and microbiology

• Belowthethresholdvalue

• 118 • • 119 •


• Cableelevatorinsteadofhydraulicelevatorwithdirectdrive-optionalwithener-gy recovery system, activation of LED illumination only in case of elevator request

• Wellinsulated,high-speedgateinordertodecreaseenergyloss

Construction materials

• Sheetplatefrontwithasmallecologicalfootprintandhighrecyclingrate

• Extensivegreeningofrooftops

• tripleglazing

• Mineralwool/stonelamellarinsteadofpolystyrene

5.6.2 reCePTIOn BUILDIngCommunication center for visitors and employees

Move-in beginning in 2015

The following energy strategy for the new building is being planned or proposed:

Heating

• Connectiontothewoodchipdistrictheatingnetwork-optimalprimaryenergyfactors

• Underfloorheatingonthegroundfloorwithlowtemperature–convenientrecep-tion area and conference room

• tripleglazingonthefacade–optimizedbymeansofthermalbuildingsimulation

• Highinsulationstandard,roofwith20cminsulation

• Trenchheateron1stand2ndfloortooptimizetheroomclimateinthefacadearea.

Cooling/Ventilation

• Decreasingthecoolingperformanceforroomsthroughprevention

• CO2sensortoregulateventilationandhencecooling

• Externalsunprotection-optimizationbymeansofdaylightsimulationaswellasthermal building simulation – partially horizontal shading of the Southern facade by means of planned canopy or also horizontal shading components by means of photovoltaic modules

• Coolingviaadiabaticventilationplantforkitchenaswellascreekwaterharve-sting in the power house of the hydropower plant for activation of thermal mass indiningareaoftheofficeareain1stfloorandunderfloorheatingongroundfloor,if applicable

• Ventilationsystemwithhighdegreeofheatrecoveryandhigh-efficiencymotors

• Louverventilationwindows,lateralinthefacadesaswellasintheatriumsforcon-trolled natural night ventilation, mechanic night ventilation function in the com-pany restaurant for activation of thermal masses of the building and cooling of the rooms at night

• Controlofventilationsystems(e.g.conferenceandmeetingrooms),demand-drivenviakeybuttonrequestaswellasCO2-controlledflowratecontrol

• 118 • • 119 •


Illumination/Daylight

• Hightransparencyandpercentageofglasssurfacesofthebuildingwith2addi-tional central atria for high daylight factor in the building – optimization of the building by means of daylight simulation -

• Daylight-controlledillumination-inindividualoffices,floorluminaireswithmo-tion detectors and daylight sensor

• Implementationofenergy-efficientLEDtechnologywithdemand-orientedacti-vation (motion detectors)

Use of rainwater and drinking water

• Connectionofbuildingtointegratednetwork,rainwatercisternfortoiletflushing

• Dishwasherwith2-chambersystemandautomaticwater-saving

Other

• PhotovoltaicmodulesasroofandshadingofthewalkwayfromC4-A3,roofareaof the reception building covered with PV modules, as well as horizontal shading components with PV modules on the side wall of the building

• Currentlycheckingextensivegreeningofrooftopson“free”panelforgoodclima-tic conditions, additional rainwater harvesting and microbiology – yet problema-tic due to PV plant

• Revolvingdooratreceptionforreductionofheatlossanddraft

• Thermalbridgecalculationincaseofwithcriticalstructuralelements

• Cableelevatorinsteadofhydraulicelevatorwithdirectdrive-optionalwithener-gy recovery system, activation of LED illumination only in case of elevator request

• CurrentlybelowthethresholdvaluesetbyENEVby36%withtheobjectiveoffurther optimizing the building

• Activationofheatingandrefrigeratingplantsthatareabletobridgeshortfailu-res (e. g. cold storage cells kitchen, dishwashers) on a central load management system for electricity peak decrease

Construction materials

• Partialuseofwoodensurfacesindoorswithroomacousticeffect

• OptimizeduseofmaterialthroughFiniteElementMethodduringplanningofthesupporting structure

• Demolitionwaste(concrete,brick,masonry)oftheexistingbuildingsoftheon-site facilities shredded and used as foundation of the building – high degree of recycling and re-use of the demolition waste

• tripleglazingoftheglassfacade

• 120 • • 121 •

AUSTRIA

• 122 • • 123 •


CONSTRUCTION OF A LARGE SCALE SOLAR THER-MAL PLANT - FOR HEATING OF CRUDE OIL TANKS - INTEGRATED INTO THE NETWORK OF A COMBINED HEAT AND POWER PLANT

PROJECT PROPOSAL AND FEASIBILITY STUDY

1. Background Description of GBE FACTORY Projects

The project owner of the planned RES project is a mineral oil & natural gas corporation in Austria. Its core areas of business are oil and natural gas exploration and production, and oil and gas storage. Through its own storage capacity and its role as an operator, it plays an important part in the security of oil and gas supply for Austria and Central Europe. Its activities also include crude oil stockpiling, natural gas trading and transportation, and renewable energy projects.

The GBE FACTORY demo plant investor operates a CHP plant, for covering its own electri-city demand. The generated heat is used to heat up their oil, to keep it at 30°C and for feeding into the nearby district heating grid. The district heating grid is connected to pri-vate households and commercial and industrial enterprises.GBE Factory 5 DEMO GBE Factory Project Proposal

3

Figure 92: Current situation – Energy flow diagram

The proposed investment project in Austria has significant potential to be realized as a DEMO GBE Factory for following reasons:

- High replication factor; in Europe exist a lot of industries like this example, which have a lot of heating demand for storing mineral oil

- Because of the huge energy demand for heating, a big portion of alternative solar energy can be used

- Integration of a large scale seasonal storage enables a high innovative and smart combination between different energy producers and energy consumers


2.1. Overview of the GBE factory project

The crude oil & gas corporation owns a gas-powered combined heat and power plant with 3 pcs. of gas engines, each has a capacity of 800 MW. The heat capacity of the CHP is 6 MW. Most of the by the CHP generated electricity is used for their own electricity grid with a total demand of approx. 14.3 GWh/year. The generated heat will be used to feed into the local

3 oil storage tanks with each 60,000 m³

Production area, administration; technical office, etc.

CHP plant

empty tank, 60,000 m³

Figure 92 - Current situation – Energy flow diagram

• 122 • • 123 •


The proposed investment project in Austria has signifi cant potential to be realized as a DEMO GBE Factory for following reasons:

- High replication factor; in Europe exist a lot of industries like this example, which have a lot of heating demand for storing mineral oil

- Because of the huge energy demand for heating, a big portion of alternative solar energy can be used

- Integration of a large scale seasonal storage enables a high innovative and smart combination between diff erent energy producers and energy consumers


2.1. OVERVIEW OF THE GBE FACTORY PROJECT

The crude oil & gas corporation owns a gas-powered combined heat and power plant with 3 pcs. of gas engines, each has a capacity of 800 MW. The heat capacity of the CHP is 6 MW. Most of the by the CHP generated electricity is used for their own electricity grid with a total demand of approx. 14.3 GWh/year. The generated heat will be used to feed into the local heating grid on the one hand and to heat up 3 oil tanks with a capacity of 60,000 m³ each up to 30°C.

Figure 93 - Energy fl ow chart - Current situation


4

heating grid on the one hand and to heat up 3 oil tanks with a capacity of 60,000 m³ each up to 30°C.

Figure 93: Energy flow chart – Current situation

Details to heat energy demands - which are essential for the integration of the solar plant - and the heating generation pls. Can be found in the table below:

Month District Heating Grid Oil tanks Other TOTAL - Energy Demand CHP Gas boilerJan 2,800 1,100 350 4,250 2,950 1,300Feb 2,200 950 270 3,420 2,520 900Mar 2,000 1,000 220 3,220 2,320 900Apr 1,000 680 170 1,850 1,850May 900 250 100 1,250 1,250Jun 600 150 100 850 850Jul 500 100 80 680 680Aug 550 100 100 750 750Sep 600 100 100 800 800Oct 1,100 280 160 1,540 1,520Nov 1,300 900 300 2,500 2,500Dec 2,200 900 320 3,420 3,040 400

15,750 6,510 2,270 24,530 21,030 3,500

Energy demand [MWh] Energy production [MWh]

Table 14: Energy demand and production – Current situation

In the future, a solar thermal plant with a capacity of approx. 7 MW should be installed. One oil tank should be rebuilt to a seasonal storage, which allows to store the solar energy and surplus heat of the CHP plant during the summer and to use it in the winter months. This oil tank actually is not in operation and is empty. The 3 oil tanks will be heated with the solar thermal plant during the summer months.

• 125 •• 124 •




This concept will lead to high natural gas savings (the CHP plant operation hour are more independent, due to the available solar thermal plant´s heat). The seasonal storagemakes a highly effi ciency operation of the CHP plant and solar plant possible.

Key data of solar thermal project:

Expected Solar yield: 5,051 MWH/year

Expected investment: 3,000,000 EUR

National subsidies for investment: 40 %

Expected pay-back period: 6.1 years


4

heating grid on the one hand and to heat up 3 oil tanks with a capacity of 60,000 m³ each up to 30°C.

Figure 93: Energy flow chart – Current situation


Month District Heating Grid Oil tanks Other TOTAL - Energy Demand CHP Gas boilerJan 2,800 1,100 350 4,250 2,950 1,300Feb 2,200 950 270 3,420 2,520 900Mar 2,000 1,000 220 3,220 2,320 900Apr 1,000 680 170 1,850 1,850May 900 250 100 1,250 1,250Jun 600 150 100 850 850Jul 500 100 80 680 680Aug 550 100 100 750 750Sep 600 100 100 800 800Oct 1,100 280 160 1,540 1,520Nov 1,300 900 300 2,500 2,500Dec 2,200 900 320 3,420 3,040 400

15,750 6,510 2,270 24,530 21,030 3,500

Energy demand [MWh] Energy production [MWh]

Table 14: Energy demand and production – Current situation


Figure 94 - Energy demand and production – Future situation


5

Figure 94: Energy demand and production – Future situation

This concept will lead to high natural gas savings (the CHP plant operation hour are more independent, due to the available solar thermal plant´s heat). The seasonal storage makes a highly efficiency operation of the CHP plant and solar plant possible.


Expected Solar yield: 5,051 MWH/year




• 125 •

• 125 •• 124 • • 125 •


2.2. SYSTEM CONFIGURATION AND ENERGY FLOWS INCLUDING A SOLAR SYSTEM INTEGRATION

Based on a substitution due to the inefficient existing gas boiler and the current overall summer heating demand, the collector field was dimensioned to a size of 10,000 m². It is planned to install the collector field in the south-east of the production area.

Calculation of the solar thermal plant´s solar yield:

The annual solar radiation profile will lead to a clear energy peak in summertime and re-duced energy gains in wintertime.

Figure 95 - Proposed collector field

• 127 •• 126 •


The given numbers below are based on solar calculations made by a skilled expert. The radiation data have been taken out of the database of the software “Meteonorm”. SOLID integrates these radiation data in an own developed calculation tool which is considering the following main core parameters:

• Locationforradiationdata Austria• Inclinationcollectors: 45°• Azimuth: 0°• Collectormeantemperature: 40°C• Distancebetweencollectorrows:4.5m(energylossesfromshadingis2.2%)• Lossesinsolarloop: 10%• Lossesinthedistributionsystem:5%

Based on the above mentioned input parameters, SOLID expects that this system will deliver annual energy gains in a range of: 505 kWh per m².For the proposed collector field of 10,000 m² this leads to annual energy gains of approx. 5,050 MWh.

Figure 96 - Solar energy yields over a whole year

Figure 97 - Energy distribution including solar plant

• 127 •

• 127 •• 126 • • 127 •


The delivered solar energy will be either used directly for heating up the oil tanks or will be used for charging the storage tank, depending on different energy demands. In addi-tion, the solar plant enables the company to sell more heating energy to the districting heating grid up to a total maximum of 18,000 MWh. The figure below shows the scenario of the heating energy flows after the solar plant and the seasonal storage tank have been installed.

Due to the solar plant and the storage tank, following operating modes are expected, depending on a year´s seasons:

All year round, the solar plant is primarily heating up the oil tanks directly. From May until August, there is a surplus of solar energy, so the storage tank will be charged by the solar plant in these months.

From September until October there is still more solar heat available so the storage tank will still be charged by the solar plant but additionally the CHP plant also feeds in some heating energy into the storage tank for the winter time when there is a huge district he-ating demand.

It is also expected that in autumn the electricity price will be quite high. The seasonal storage tank allows CHP operators to produce electricity although there is not enough district heating demand. This is a very high benefit which is unfortunately very difficult to include into economic analyses as nobody knows the daily electricity prices in the next 10 years.

From November until January, most of the heating energy needed will be taken out of the storage tank.

From February until April, some energy for heating up the oil tanks will be taken out of the tank and the CHP will be charging the storage tank.

Table 15 - Energy management including the integration of the solar plant


9

MonthDistrict Heating Grid [MWh]

Additional heat demand - District heating grid [MWh]

Oil tanks [MWh] Other [MWh] Heat Losses [MWh]

TOTAL - Energy Demand [MWh]

CHP [MWh]

Gas boiler [MWh]

Solar plant [MWh]

Storage - Charging and discharging [MWh]

CHP tank charging for heating up the oil tanks [MWh]

CHP directly producing heat [MWh]

Energy amount in tank [MWh]

Temperature in the tank [°C]

Jan 2,800 1,100 170 13 4,083 3,090 161 -939 0 3,090 416 35Feb 2,200 0 950 100 3 3,253 2,890 212 -738 420 2,470 94 40Mar 2,000 250 1,000 100 0 3,350 2,949 427 -573 479 2,470 0 46Apr 1,000 680 80 1,760 1,303 547 -133 133 1,170 0 54May 900 250 100 11 1,261 1,000 622 372 0 1,000 361 62Jun 600 150 100 24 874 700 573 423 0 700 760 71Jul 500 100 140 41 781 580 718 618 0 580 1,336 75Aug 550 100 250 57 957 650 666 566 0 650 1,846 67Sep 600 0 100 290 77 1,067 1,000 516 416 300 700 2,485 55Oct 1,100 650 280 290 86 2,406 2,190 370 90 300 1,890 2,789 41Nov 1,300 900 900 270 68 3,438 2,700 140 -760 250 2,450 2,210 36Dec 2,200 450 900 220 42 3,812 2,940 100 -800 0 2,940 1,368 35

15,750 2,250 6,510 2,110 423 27,043 21,992 5,051 -1,459 1,882 20,110 13,665 616

Energy demand [MWh] Energy production [MWh] Energy Management

Table 15: Energy management including the integration of the solar plant

• 128 • • 129 •


2.3. DESCRIPTION OF THE COLLECTOR FIELD

The SOLID gluatmugl solar collector is a state-of-the-art collector, specifically designed

to achieve maximum efficiency in large-scale solar cooling systems and will be used for

this project. These large-area solar panels are widely employed in industrial solar plants

in mature solar markets in Europe. With a gross area of 12.5 m², the SOLID gluatmugl col-

lector represents the best-engineered panel for large-scale plants.

Advantages of large-area collectors (12.5 sqm) over a standard 2 sqm collector:

Assembly work: With a crane it’s possible to mount 500 to 800m² large scale collector

in a single day.

Better performance: Only the active component of the collector, the absorption plate,

absorbs the solar radiation. The bigger the collector, the bigger is the share of this net

absorption area compared with the total collector area; this means that large-area col-

lectors have 90-93% of net absorption area instead of the usual 80% by smaller collector

sizes. To summarize: in terms of energy output, large-area collectors have a 10-13% advan-

tage over small-area collectors, only due to their geometrical form.

Less connections and piping: Due to the size of each collector module, the number of

connections between the collector modules - which need to be installed and insulated.

Special connections within the collectors reduce the diameter of the piping, which results

in less energy losses and less mounting costs.

Better flow properties: The internal connection of the collectors in combination with the

special design ensures an optimal flow distribution through all components, which is al-

most impossible with small size collectors. Only an optimal flow distribution allows taking

advantage of the maximum incoming energy from the sun.

Less effort for splices: Large-area collector modules result in a reduced number of col-

lectors, and this means less splices and therefore screw-points into the building and lower

mounting costs.

Flat plate collectors are much more space-efficient than evacuated tube collectors, as

well as far more proven in larger installations (allowing the SOLID energy output guaran-

tee). Energy conversion efficiency is typically 3-5 times greater than photovoltaic solar

electric systems. For hot water loads, large-scale flat plate collectors provide the maxi-

mum energy output per square meter of roof space and have the lowest number of roof-

penetrations or – in other words – have the smallest need for additional roof works on the

building.

The collectors will be mounted on the ground next to the premises of the mineral oil & gas

• 128 • • 129 •


cooperation. As substructure for the collector field, ground anchoring bolts will be used.

Examples of ground anchoring bolts can be seen in the figure below:

Figure 98 - Ground anchoring bolts as substructure for ground mounted collectors

Figure 99 - Example of a ground mounted collector field; Meat factory Berger in Austria; 1067 m²

• 130 • • 131 •


2.4. SOLID remote monitoring and control system

As a sample of a more complex installation, the screenshot above shows a Large Scale Solar installation serving three different consumers, including a Solar driven Absorption Chiller for the air conditioning system:

SOLID’s control system is always:

• automaticallysendingthesolarthermalenergytothebest-suitedloadandthere-fore maximizes energy gains (if a number of potential loads are available)

• accessibleviatheInternet.Thisallowstele-monitoringaswellastele-support.Itincreases performance and energy gains post-installation during a commissio-ning period, adjusting parameters in response to the actual performance of the system over the first operating season. SOLID includes a one-year period of tele monitoring by its headquarters for free in this budgetary proposal. Remote moni-toring and operation by SOLID is optional after this time.

• recordingallrelevantsensordataandenergygains.

A sample of browser based visualizations can be seen under the following link: http://uwc.heizwerk.at/ email: frei, pwd: frei, This system is situated in a university cam-pus in Singapore. It delivers cooling energy and hot water.

Figure 100 - Screenshot of online visualization of a solar cooling plant by SOLID

• 130 • • 131 •



The general benefit of the GBE FACTORY for the user will be savings of natural gas, more independent operation of the CHP plant (heat available from the solar thermal plant) and a highly efficiency operation of the solar thermal and CHP plant in combination with the seasonal storage tank (100 % use of surplus heat -> possible use shift to winter months). Below you can find an overview of the benefits of this demo plant:

a) Solar plant produces free heat

b) The CHP produce valuable electricity _> earn money

c) The CHP enables a fast capacity regulation on the production side _> earn money

d) The seasonal storage enables a lot of flexibility in operating the CHP plant and makes the combination of these technologies possible

The clients can also use the solar plant to improve their social and environmental respon-sibility image. The plant can be opened for visitors; this will help to promote renewable energy projects and gain trust and confidence in green technologies. It will trigger and raise awareness of clean sustainable energy at commercial scales.

A similar, already existing RES system is operating in Denmark, where the heat is used for low temperature district heating in combination with heat pumps and other RES energy sources (“Masterplan Denmark”).

Below some more general benefits due to the installation of a large scale solar plant:

• Energysolutionwithaminimumofmaintenancework

• Greaterindependencefromconventionalenergysources

• Stableenergypricesforthenext25years

• Annualenergy(electricity,fueloil)savingsduetothesolarsystem

• Highprofitabledemonstrationprojectfortheoilproducingindustry

• Reductionofcarbonemissions

• 133 •• 132 •


4. Economy - Payback time & cash flow

For calculating the economics of this demo project, only the solar plant and its solar yield and costs were considered.

To calculate the economic benefits of the storage tank, more detailed information like fo-recasts about the daily electricity rates in the next years have to be considered. Further-more, the whole storage management will be simulated in the near future, but according to the timeline of the GBE project it is not possible to include this simulation now.

In the economic calculation below, it is assumed that the whole solar yield could be used for feeding into the district heating grid. For the energy cost savings, the tariff for the district heating grid was considered.

Input parameters

• Totalsystempriceforthesolarplant:3,000,000Euro

• Electricitycosts:10EUR/MWh

• ElectricitydemandSolar1%ofsolaryield

• Tariff,districtheating:45EUR/MWh

• Costincreaseelectricity/districtheating:6%

• Loanfinanced:100%

• Interestrateforloan:5%

• Loanperiod:10years

• Consumerpriceindex:3%

• Nationalsubsidy:40%oftheinvestment

National grants are available for the project:

The funding program “Solar Thermal – Large-scale solar plants” of the Austrian climate fund:

It will promote the design and construction of innovative solar systems and system integration in four areas:

1. Solar process heat for manufacturing plants

2. Solar feed-in grid-connected heat supply systems (micro-networks, local and district heating networks)

3. High solar fraction (over 20% of the total heat demand) in commercial and service enterprises

4. Solar-assisted air-conditioning plants and its combination with solar hot water heating and cooling demand during periods without heating demand

5. NEW!!: New technologies and approaches will be promoted for plants with 50 – 250 m² (max. 50.000 €)

The subsidy rate in all four subject areas is max. 40% of the environmentally relevant ad-ditional needed invest (compared to conventional energy sources) plus any surcharges

• 133 •

• 133 •• 132 • • 133 •


(+5% for SME, +5% for appraised innovative projects). Solar cooling systems are funded on the same terms as the solar thermal part of the plant. Funding is provided through non-repayable investment grants. The call is open until 27 September 2013, the Procure-ment Guidelines can be found under following link: http://www.klimafonds.gv.at/foerde-rungen/aktuelle-foerderungen/2013/solarthermie-solare-grossanlagen-4-as/

Results

• Totalpaybackperiod6.1years

• Totalcostsavingsafter20years:6,130,140EUR

• IRRafter10years:23%

• IRRafter20years:32.5%

5. Project work planWork plan & Possible grants

The DEMO GBE FACTORY is in an early stage of realization. At the moment, following work plan is available:

Figure 101 - Economic outputs


17

MonthPre-FeasibilityDetailed Feasibilitycontract negotiationEngineering phaseConstruction phaseMonitoring & Controlling

Jan. Feb. March

2015Dec. Feb.Jan.Nov.Oct.June July Aug.

2013May June July

2014March AprilSept.

Table 16: Project work plan schedule


• 135 •• 134 •


6. Supply chain of large scale solar thermal plants

The proposed supply chain refers to the realisation of large scale solar thermal plants in Austria and is a result of 20 years of experience in this fi eld. Solar energy doesn´t need a constant feed of row materials, compared to other RES technologies (e.g.: bio gas, wood chips boiler) and has nearly no moving parts (only water pumps). This results in a very low maintenance eff ort and excludes any higher economic risk through increasing row material/transport costs.


18

6. Supply chain of large scale solar thermal plants

The proposed supply chain refers to the realisation of large scale solar thermal plants in Austria and is a result of 20 years of experience in this field. Solar energy doesn´t need a constant feed of row materials, compared to other RES technologies (e.g.: bio gas, wood chips boiler) and has nearly no moving parts (only water pumps). This results in a very low maintenance effort and excludes any higher economic risk through increasing row material/transport costs.

Figure 102: Supply chain for large scale solar thermal plants

Step Description Company Contact person

Website

1 Pre - Feasibility

S.O.L.I.D. Gesellschaft für Solarinstallation und Design mbH

Johannes Luttenberger

www.solid.at

2 Detailed Feasibility

S.O.L.I.D. Gesellschaft für Solarinstallation und Design mbH

Johannes Luttenberger

www.solid.at

Figure 102 - Supply chain for large scale solar thermal plants

Table 17 - List of stakeholders in the DEMO GBE FACTORY for Austria

• 135 •

Step Description Company Contact person Website

1 Pre Feasibilty S.O.L.I.D. Gesellschaft für Solarinstallation

und Design mbH

JohannesLuttenberger

www.solid.at

2 Detailed S.O.L.I.D. Gesellschaft für Solarinstallation

und Design mbH


www.solid.at

3 Engineering& construction

S.O.L.I.D. Gesellschaft für Solarinstallation

und Design mbH


www.solid.at

Financing Raiff eisen BankInternational AG

MarcusOff enhuber

www.rbinternational.com

ESCO Provider solarnahwaerme.atEnergiecontracting

GmbH

Dr. ChristianHolter

offi [email protected]

4 Monitoring & Controlling

S.O.L.I.D. Gesellschaft für Solarinstallation

und Design mbH


www.solid.at

• 135 •• 134 • • 135 •


7. Risk analysis

7.1 POSSIBLE RISKS

• Constructionrisk(capitalcostoverrun);

• Operationalrisk-lowersolaryields

• Grandrisk-possiblebreakdownofthenationalgrand

CAPITAL COST OVERRUNThe total price of the solar thermal plant is calculated on the basis of benchmark prices/experience values. Possible reasons for underestimation of the price are:

• Longtimerangefromoffertothecontract,priceincreaseofbuildingmaterials

• Costofintegrationofthesolarsystemtotheexistingsystemarehigher

• Bankruptcyofthesupplier

The results of the sensitivity analysis in case of 20 % increase of the total project costs are:

• Totalpaybackperiod: 8.6years

• Totalcostsavingsafter20years: 5,713,442EUR

• IRRafter10years: 21,2%

• IRRafter20years: 23,8%

As a result of the above-mentioned assumption, IRR decreases after 20 years by 8.7 % to 23.8 %, the total cost savings after 20 years also decreases by EUR 416,698, and the payback period is 8.6 years.


20

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EUREconomic Parameters

Annual net cost savings

Payback

Loan End Balance

Cumulated savings

IRR

Figure 103: Economic outputs - risk analysis: capital cost overrun

As a result of the above-mentioned assumption, IRR decreases after 20 years by 8.7 % to 23.8 %, the total cost savings after 20 years also decreases by EUR 416,698, and the payback period is 8.6 years.

Operational risk - lower solar yields

In general, this risk is very small, since the solar yield calculation is based on detailed tools and programs. However, through mistakes in the engineering phase and damages at the hardware lower solar yields can occur. For the analysis we calculate with a decrease of 16% of the solar yield, which leads to 423.7 kWh/m²/year. This is a reduction of 81,3 kWh/m²/year.

The results of the sensitivity analysis in case of 16 % decrease of the solar yields are:

Total payback period 8.4 years Total cost savings after 20 years:

4,882,623 EUR IRR after 10 years: 10,8 % IRR after 20 years: 24,5 %

Figure 103 - Economic outputs - risk analysis: capital cost overrun

• 137 •


Operational risk - lower solar yields

In general, this risk is very small, since the solar yield calculation is based on detailed tools and programs. However, through mistakes in the engineering phase and damages at the hardware lower solar yields can occur. For the analysis we calculate with a decrease of 16% of the solar yield, which leads to 423.7 kWh/m²/year. This is a reduction of 81,3 kWh/m²/year.

The results of the sensitivity analysis in case of 16 % decrease of the solar yields are:



• IRRafter10years:10,8%

• IRRafter20years:24,5%

As a result of the above-mentioned assumption, IRR decreases after 20 years by 8.0 % to 24.5 %, the total cost savings after 20 years also decreases by EUR 1,247,517, and the payback period is 8.4 years.


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Payback

Loan End Balance

Cumulated savings

IRR

Figure 104: Economic outputs - risk analysis: lower solar yields

As a result of the above-mentioned assumption, IRR decreases after 20 years by 8.0 % to 24.5 %, the total cost savings after 20 years also decreases by EUR 1,247,517, and the payback period is 8.4 years.

Grand risk - possible breakdown of the national grand

In Austria, 40% of the total investment are available as national grants. Through a possible financial crisis of the state, as well known from other countries in Europe, the scenario of 0% grand will be considered.

The results of the sensitivity analysis in case of 0 % national grand are:


4,741,142 EUR IRR after 10 years: - 8.8 % IRR after 20 years: 14.0 %

Figure 104 - Economic outputs - risk analysis: lower solar yields

• 137 •• 136 •

• 137 •


• 137 •


Grand risk - possible breakdown of the national grand

In Austria, 40% of the total investment are available as national grants. Through a possi-ble financial crisis of the state, as well known from other countries in Europe, the scena-rio of 0% grand will be considered.

The results of the sensitivity analysis in case of 0 % national grand are:



• IRRafter10years:-8.8%


The result of the worst case scenario show that IRR decreases after 20 years by 25.3 % to 7.2%, the total cost savings after 20 years also decreases by EUR 3,331,017, and the payback period is 14.4 years.


22

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Payback

Loan End Balance

Cumulated savings

IRR

Figure 105: Economic outputs - risk analysis: no grand available

As a result of the above-mentioned assumption, IRR decreases after 20 years by 18.5 % to 14 %, the total cost savings after 20 years also decreases by EUR 1,388,998, and the payback period is 11.3 years.


This worst-case scenario tests the combination of all scenarios mentioned above. Under this scenario, capital cost overruns by 20%, solar yields decrease by 16% and no national grand will be available.

The results of the worst case scenario are:


2,799,123 EUR IRR after 10 years: n.a. - no positive

cash flow IRR after 20 years: 7.2 %

Figure 105 - Economic outputs - risk analysis: no grand available

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• 138 •







• IRRafter10years:n.a.-nopositivecashflow


The result of the worst case scenario show that IRR decreases after 20 years by 25.3 % to 7.2 %, the total cost savings after 20 years also decreases by EUR 3,331,017, and the payback period is 14.4 years.


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Payback

Loan End Balance

Cumulated savings

IRR

Figure 105: Economic outputs - risk analysis: no grand available

As a result of the above-mentioned assumption, IRR decreases after 20 years by 18.5 % to 14 %, the total cost savings after 20 years also decreases by EUR 1,388,998, and the payback period is 11.3 years.





2,799,123 EUR IRR after 10 years: n.a. - no positive

cash flow IRR after 20 years: 7.2 %

Figure 105 - Economic outputs - risk analysis: no grand available

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ConSTRUCTION of LARGe scale solar thermal plant - for heating and cooling of office buildings in combi-nation with use of surplus heat

Project proposal and feasibility study for an ESCOcompany

Background Description of GBE FACTORY Project

The building owner of the planned RES project is a company specialized on engine engi-neering and operates their own motor power testing stations. The company has several office buildings on their company area, get cooled and heat by an internal cold and heat grid.

The conventional energy supply is an urban district heating grid and gas boiler for the needed heat and conventional electric chillers for the cold supply. The motor power te-sting stations need to be cooled and give off the heat to the environment (surplus heat).

An ESCO company will install a large scale solar thermal plant on two buildings of the company and will also install heat exchanger in the motor power testing station system for a possible use of the surplus heat. The generated heat will cover parts of the existing heat and cold (via an absorption chiller) loads of the internal grids.


- Common energy demand of office buildings can be supplied via solar thermal energy

- The surplus heat use gives the project a high standard in the field of energy effi-ciency (motto: energy saving before additional energy supply).

- One by one GBE business model


24

ConSTRUCTION of LARGe scale solar thermal plant - for heating and cooling of office buildings in combination with use of surplus heat

Project proposal and feasibility study for an ESCO company

Background Description of GBE FACTORY Project The building owner of the planned RES project is a company specialized on engine engineering and operates their own motor power testing stations. The company has several office buildings on their company area, get cooled and heat by an internal cold and heat grid. The conventional energy supply is an urban district heating grid and gas boiler for the needed heat and conventional electric chillers for the cold supply. The motor power testing stations need to be cooled and give off the heat to the environment (surplus heat). An ESCO company will install a large scale solar thermal plant on two buildings of the company and will also install heat exchanger in the motor power testing station system for a possible use of the surplus heat. The generated heat will cover parts of the existing heat and cold (via an absorption chiller) loads of the internal grids.


- Common energy demand of office buildings can be supplied via solar thermal energy

- The surplus heat use gives the project a high standard in the field of energy efficiency (motto: energy saving before additional energy supply).

- One by one GBE business model

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DEMO GBE FACTORY Project DescriptionOverview of GBE factory project

The ESCO company “solar.nahwaerme.at” (WG 3 member) is specialized on large solar thermal projects with different applications (heating, hot water, district heating, process heat, solar cooling). An in Austria located client has a high demand on heating and coo-ling (office buildings & halls for motor power testing stations).

SOLID (PP4) and solar.nahwaerme.at worked out together a proposal for the installation of a solar thermal plant combined with the use of the produced heat via the motor power testing stations (surplus heat). The generated heat will be used for heating and cooling (absorption chiller) purposes.

Figure 107 - Conventional energy supply of the client (heat & cold)

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Details to the current energy demand and future RES energy production can you find in the table below:

Figure 107 - Conventional energy supply of the client (heat & cold)


26

Figure 108: Future energy supply - including the RES & surplus heat generation

Details to the current energy demand and future RES energy production can you find in the table below:

Month Gas District Heat Total Heat Total Cooling Solar Heating Surplus Heat Solar CoolingJan 706 70 775 170 24 118Feb 715 71 786 170 56 118Mar 615 61 676 170 107 118Apr 226 22 249 170 139 118May 42 4 46 220 184 118 179Jun 51 5 56 250 189 118 176Jul 19 2 21 275 207 118 213Aug 22 2 25 260 175 118 188Sep 118 12 129 170 111 118 70Oct 455 45 500 170 73 118Nov 729 72 802 170 35 118Dec 1,055 104 1,160 170 18 118Total 4,753.75 470.15 5,223.90 2,368.00 1,319.17 1,415.00 825.80

RES energy production [MWh]Energy demand [MWH]

Table 18: Current energy demand versus future RES production

Table 18 - Current energy demand versus future RES production

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The planned solar thermal plant has a capacity of 2.3 MW and operates in combination

with an absorption chiller of 1 MW. The surplus heat potential is very constant through the

year and is estimated with 118 MWh per month. The interface between the different heat

sources (solar, surplus heat, conventional energy supply) is a heat storage, which allows

an energy management during the day and weekend.

First priority of the plant is to cover the heat demand (lower temperatures -> higher solar

yields). During the summer months mainly the absorption chiller will be in operation. With

this concept high energy coverage of heat (35%) and cold (30%) are possible.

At the moment the current heat supply is done with 91% by gas. The planned concept will

lead to high natural gas savings.

The ESCo principle is based on the model “shared savings”:

Figure 109 - ESCO principle

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Solar.nahwaerme.at will be responsible for the financing and project development inclu-

ding the project management. Additonal services and components will be supplied via

subcontracting companies:


Solar collector area: 3304 m²

Absorption chiller capacity: 1 MW

Expected solar yield: 1,319 MWh/year

Expected surplus heat potential: 1,415 MWh/year




Figure 110 - ESCO Project Management Model

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Figuer 111 - Planned steel construction of the parking level for collector mounting

Figure 112 - Second roof with directly on roof mounted collectors

System configuration and energy flows including solar system integration

Based on the current energy demand and consideration of the surplus heat potential, the collector field was dimensioned to a size of 3,304 m². The collector area will be installed on two roofs, one directly on roof and another one on a steel construction (canopy of a parking level).

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Calculation of the solar yield of the solar thermal plant:

The annual solar radiation profile will lead to a clear energy peak in summertime and re-duced energy gains in wintertime.

The given numbers below shall be understood as a solar calculation of a skilled expert. The radiation data have been taken out of the database of the software “Meteonorm”. SOLID integrates these radiation data in an own developed calculation tool which is con-sidering following main core parameters:

• Locationforradiationdata: Austria

• Inclinationcollectors: 30°

• Azimuth: 0°

• Collectormeantemperature: 50-62°C

• Lossesinsolarloop: 10%

• Lossesinthedistributionsystem:10%

Based on the above mentioned input parameters SOLID expect that this system will deli-ver annual energy gains in a range of: 400 kWh per m².

For the proposed collector field of 3,304 m² this leads to annual energy gains of approx. 1,319 MWh.

Figure 113 - Solar energy yields over a whole year

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Due to the solar plant and the surplus heat following operating modes, depending on the seasons over the year will be expected:

From April till September the solar plant will cover 100 % of the needed heat demand. From September till April approx. 20% of the heat demand can be covered.

From May till August the absorption chiller can cover 100 % of the needed cold demand.

In April and September approx. 15% of the cold demand can be covered via the absorp-tion chiller.

From October till April the absorption chiller is not in operation. During this period the cold demand will be covered via the conventional cooling system.

Figure 114 - Energy distribution versus energy demand

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Description of collector field

The used high temperature solar flat plate collector is a state-of-the-art collector spe-cifically designed to achieve maximum efficiency in large-scale solar plants and will be used for this project. These large-area solar panels are widely employed in industrial solar plants in mature solar markets in Europe. With a gross area of approx. 12.5 m², the collec-tor represents the best-engineered panel for large-scale plants.

Advantages of large-area collectors (12.5 sqm) over a standard 2 sqm collector:

Assembly work: With a crane it’s possible to mount 500 to 800m² large scale collector in a single day.

Better performance: Only the active component of the collector, the absorption plate, absorbs the solar radiation. The bigger the collector, the bigger is the share of this net absorption area compared with the total collector area; this means that large-area col-lectors have 90-93% of net absorption area instead of the usual 80% by smaller collector sizes. To summarize: in terms of energy output, large-area collectors have a 10-13% advan-tage over small-area collectors, only due to their geometrical form.

Less connections and piping: Due to the size of each collector module, the number of connections between the collector modules - which need to be installed and insulated decreases. Special connections within the collectors reduce the diameter of the piping, which results in less energy losses and less mounting costs.

Better flow properties The internal connection of the collectors in combination with the special design ensures an optimal flow distribution through all components, which is al-most impossible with small size collectors. Only an optimal flow distribution allows taking advantage of the maximum incoming energy from the sun.

Less effort for splices: Large-area collector modules result in a reduced number of col-lectors, and this means less splices and therefore screw-points into the building and lower mounting costs.

Flat plate collectors are much more space-efficient than evacuated tube collectors, as well as far more proven in larger installations. Energy conversion efficiency is typically 3-5 times greater than photovoltaic solar electric systems. For hot water loads, large-scale flat plate collectors provide the maximum energy output per square meter of roof space and have the lowest number of roof-penetrations or – in other words – have the smallest need for additional roof works on the building.

The collectors shall be mounted on two roofs on the premises of the client. On one roof the collectors will directly mount on the flat roof structure, on the other roof a steel con-

• 149 •


struction will be mount to canopy the parking level area. Examples of on roof/steel struc-ture mounted collectors can you see in the figures below:

Figure 114 - Energy distribution versus energy demand

Figure 116 - On steel substructure mounted collectorsfor canopy different areas (source: www.solid.at)

Figure117 - Example of on roof collector mounting system (source: www.solid.at)

Figure 118 - Example of on roof collector mounting system (source: www.solid.at)

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Description of the absorption chiller - solar thermal cooling

The peak demand of cooling load is at the same time when the sun generates the most energy. It is very economical to cover this large energy consumption partly by solar ener-gy. The chiller will be an absorption chiller, which have longer operating time, less main-tenance, less energy consumption and no noise exposure as compared with conventional compressor chillers.

The solar energy is used to heat up water. For this purpose cool water flows through the solar collectors, which heat it up; after passing the collectors, the hot water is stored in an energy buffer tank at the needed temperature level. This system uses the solar storage tank to achieve a thermal peak demand management.

In case there is not enough available solar radiation for heating up the cold water until the needed temperature, the surplus heat can further heat up the water in order to meet the temperature requirements of the client. If no solar heat and surplus heat are available, the already existing backup system will supply the system with cold water.

For the cooling process, an absorption chiller works with hot water on a basis of a special physical absorption process. The more solar energy is available, the higher the output of the machine will be. This is an important point compared to conventional electrical sy-stems ; common electrical system can only switch on and off on their maximum power (“clocking” operation mode). This operation mode reduces their service life and technical reliability. The experience shows that the solar cooling chillers have a power output up to 20% higher compared to their nominal power. How the absorption chiller is working can be seen in the figure below:

Figure 119 - Working principle of an absorption chiller

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SOLID remote monitoring and control system

The screenshot above shows a Large Scale Solar installation serving three different consumers, including a Solar driven Absorption Chiller for the air conditioning system: SOLID’s control system is always:

• Automaticallysendingthesolarthermalenergytothebest-suitedloadandthe-refore maximizes energy gains (if a number of potential loads are available)

• Accessibleviatheinternet.Thisallowstele-monitoringaswellastele-support.Itincreases performance and energy gains post-installation during a commissio-ning period, adjusting parameters in response to the actual performance of the system over the first operating season.

• SOLID includes a one-year period of tele monitoring by its headquarters forfree in this budgetary proposal. Remote monitoring and operation by SOLID is optional after this time.

Recording all relevant sensor data and energy gains.

Figure 120 - Screenshot of online visualization of a solar cooling plant by SOLID

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DEMO GBE FACTORY PROJECT Benefits

The general benefit of the GBE FACTORY for the user will be savings of natural gas and up to 80% of electricity compared to the conventional cooling system (including the re-cooling system). Additional the generation of available surplus heat increase the opera-tion time/coverage of the whole system. Below you can find an overview of the benefits of this demo plant:

a) Solar plant produces low cost heat & cold over 25 years

b) The surplus heat generation supports the energy efficiency and is total integrated into the planned RES plant -> increase operation hours/energy coverage.

The client can also use the solar plant to improve their social and environmental responsi-bility image. The plant can be open for visitors; this will help to promote renewable ener-gy projects and gain trust and confidence in green technologies. It will trigger and raise awareness of clean sustainable energy at commercial scale.

Below some more general benefits due to the installation of a large scale solar plant:

• Energysolutionwithaminimumofmaintenancework

• Greaterindependencefromconventionalenergysources

• Stableenergypricesforthenext25years

• Annualenergy(electricity,gas,districtheat)savingsduetosolarsystem

• Highprofitabledemonstrationprojectforindustrieswithhighcoldandheat demand including surplus heat potential.

• Reductionofcarbonemissions

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Economy - Payback time & cash flow

The calculation of economics of this demo project is based on the investment costs for the solar plant, solar cooling technologies and surplus heat generation part versus the sold heat and cold demand.

Input parameters

• Totalsystemprice:2,350,000Euro

• Electricitycosts:12EUR/MWh

• ElectricitydemandSolarheat1%ofsolaryield

• ElectricitydemandSolarcooling10%ofcoldyield

• Tariffheat:54EUR/MWh

• Tariffcold:78EUR/MWh

• Costincreaseconv.energy:3%

• Loanfinancing:0%

• Equityfinancing:100%

• Consumerpriceindex:3%

• Nationalsubsidy:45%oftheinvestment

For the project are national grants available:

The funding program “Solar Thermal – Large-scale solar plants” of the Austrian climate fund: It will promote the design and construction of innovative solar systems and integra-tion into the system in four areas:

6. Solar process heat for manufacturing plants

7. Solar feed-in grid-connected heat supply systems (micro-networks, local and di-strict heating networks)

8. High solar fraction (over 20% of the total heat demand) in commercial and service enterprises

9. Solar-assisted air-conditioning plants and its combination with solar hot water heating and cooling demand during periods without heating demand

10. NEW!!: New technologies and approaches will be promoted for plants with 50 – 250 m² (max. 50.000 €)

The subsidy rate in all four subject areas is max. 40% of the environmentally relevant ad-ditional needed invest (compared to conventional energy sources) plus any surcharges (+5% for SME, +5% for appraised innovative projects). Solar cooling systems are funded on the same terms as the solar thermal part of the plant. Funding is provided through non-repayable investment grants.

The call is open until 27 September 2013, the Procurement Guidelines can be found under following link:http://www.klimafonds.gv.at/foerderungen/aktuelle-foerderungen/2013/solarthermie-solare-grossanlagen-4-as/

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Results





Project work planWork plan & Possible grants

The DEMO GBE FACTORY is in an high stage of the realization. At the moment following work plant is available:

Figure 121 - Economic outputs


39

Results


4,371,272 EUR IRR after 15 years: 16.4 % IRR after 20 years: 22.3 %

Figure 121: Economic outputs

Project work plan

Work plan & Possible grants

The DEMO GBE FACTORY is in an high stage of the realization. At the moment following work plant is available:

MonthPre-FeasibilityDetailed Feasibilitycontract negotiationEngineering phaseConstruction phaseMonitoring & Controlling

June July

2014March AprilSept. Nov.Oct.June July Aug.

2013Jan. Feb. March

2015Dec. Feb.Jan. May

Table 19: Project work plan schedule


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