Local Success Stories
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Local Success Stories |
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Country |
Lithuania |
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Name of Example |
Location |
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Investment into biofuel cogeneration |
Vilnius DH company |
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The biggest biofulel boiler in Eastern and Central Europe started operate in Vilnius |
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The biggest bio fuel steam boiler started operating in Vilnius in October 2006. DH company “Vilniaus energija” supplying heat to capital city invested 40 mill. Litas (11,5 MEur) in construction of the biofuel boiler. The investment allows reduce CO2 emissions and will increase security of heat supply by 7% reduction need of imported from Russia natural gas volume. This was very actual issue approaching new natural gas price jump. The new steam boiler producing 75 t/h steam is able produce about 9% of total heat consumed in Vilnius and cover 50% of heat needs for hot water supply in summer time. Based on fluidized bed technology the boiler supply steam to steam turbine driving electricity generator. The output is 12 MW electricity and 48 MW thermal capacities. Power produced in biofuel installation is sold to National grid. Biofuel installation is equipped with modern flue gas cleaning equipment – electrostatic participator ensuring by 60% lower emissions of soot and particles comparing to actual emission standards. CO2 emissions from biomass incineration are treated as neutral, not disturbing natural carbon cycle. The boiler uses about 23 tons of biomass – forestry and wood processing residues. Fuel mix can include up to 10% straw and up to 30% of peat. Fuel is supplied by Biofuel company “Bionovus”. At the site fuel reserve is for 3 days operation, and 3 month fuel reserve is stored at storage near city. Biofuel boiler replaced one of four boilers operated on heavy fuel oil and natural gas in the CHP-2 plant. The plant is oldest in Vilnius, operated over 50 years. Project management was trusted to Finish company “Enprima” and specialists of DH company. Construction of the boiler was carried out by Finish producer „Kvaerner Power OY“, biofuel feed installations, automatic control equipment was arranged by company “Axis Industries”. Electrostatic participator was built by Germany company „Balcke Dürr“, part of construction works were performed by local companies.
The large-scale Biofuel project has considerable impact to Biofuel market development. Increased demand for such fuel creates preconditions for investment into Biofuel production infrastructure – new machinery suitable for wood chips production in forests, transport and logistics. New jobs were created in this sector. Operation of such big and sophisticated equipment requires highly qualified staff and adequate knowledge level. Experience gained during first years of operation is useful for other DH companies implementing biofuel projects. Favourable conditions for the project were legal framework implemented in correspondence with Directive on promotion of electricity produced from renewable resources. Warranty of electricity purchase at fixed preferential tariff is the main issue, allowing implementation of biomass cogeneration projects.
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Effectiveness of the measure Switching heat production to indigenous fuel helps Lithuania to maintain CO2 emissions within volumes set in greenhouse emissions allocation under ETS Directive. This is very important issue with regard to increased fossil fuel consumption in power generating plants after closure of Ignalina NPP. Significant amount of Biofuel in heat production fuel mix during summer season helped to maintain lower heat prices and mitigate financial losses for DH company because of rapidly increased natural gas price. |
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Effectiveness of the measure The initiative of Kaunas region showed an example of feasibility of such projects. Similar projects are under preparation for other landfills (Kairiai in Šiauliai region, Kariotiškes in Vilnius region). Special feature of landfill gas utilization projects is electricity production and possibility to use heat for DH supply. Obligatory purchase of renewable electricity at fixed preferential price is essential for project feasibility. Avoided emissions and emission trading possibilities helps to attract private investors thus lessening public financing amounts. |
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