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ACTIVITIES IMPLEMENTED JOINTLY(AIJ)

List of Projects

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

A. Description of project

1) Title of project: Võru I, Fuel conversion at Võrusoo Heating Plant,

2) Participants/actors:

Item Financier/Reporter Co-reporter

Name of organisation(a):

Statens energimyndighet

Eesti Vabariigi Keskkonnaministeerium

Name of organisation (English):

Swedish National Energy Administration(*

Ministry of the Environment of the Republic of Estonia

Department:

Secretariat for Climate Policy and International Co-operation

International Relations Department

Acronym:

STEM

EKM

Acronym (English):

STEM

MoE

Function within activity:

Assigned by the Swedish Government for implementation including financing arrangements.

Estonian Climate responsible Organisation

Street:

Kungsgatan 43

Toompuiestee 24

Post code:

BOX 310, S-631 04

10149

City:

Eskilstuna

Tallinn

Country:

Sweden

Estonia

Telephone:

+46 16 544 20 00

+372 62 62 800

Fax:

+46 16 544 22 64

+372 62 62 801

E-mail:

klas.tennberg@stem.se

min@ekm.envir.ee

WWW-URL:

http://www.stem.se

http://www.envir.ee

Contact person (for this activity):

-------------------------------------

-------------------------------------

Surname:

Knutsson

Kratovits

First name, middle name:

Gudrun

Andres

Job title:

Head of Section, Climate Investment Programme

Counsellor

Direct tel:

+46 16 544 20 72

+372 62 62 841

Direct fax:

+46 16 544 22 64

+372 62 62 845

Direct E-mail:

Gudrun.knutsson@stem.se

andres@ekm.envir.ee

(* From 1 January, 1998, the new Swedish National Energy Administration has taken over the responsibility for the Programme for an Environmentally Adapted Energy System in the Baltic region and Eastern Europe (EAES Programme) from NUTEK (Swedish National Board for Industrial and Technical Development).

Borrower

Name of organisation(a):

AS Võru Soojus

Name of organisation (English):

Võru Soojus Ltd

Department:

Acronym:

Acronym (English):

Function within activity:

Project owner

Street:

Vabaduse 4

Post code:

65609

City:

Võru

Country:

ESTONIA

Telephone:

+372 78 213 69

Fax:

+372 78 210 26

E-mail:

WWW-URL:

Contact person (for this activity):

-------------------------------------

Surname:

Narusk

First name, middle name:

Ilmar

Job title:

Director

Direct tel:

+372 78 213 69

Direct fax:

+372 78 210 26

Direct E-mail:

Item Please fill in if applicable Please fill in if applicable

Name of organisation(a):

Sihtasutus Regionaalsed Energiakeskused

ÅF International

Name of organisation (English):

Regional Energy Centres in Estonia

ÅF International

Department:

Võru office

AF - International

Malmö

Acronym:

SA REK

ÅFI

Acronym (English):

REC

AFI

Function within activity:

Local reporter

Technical support

Street:

Liiva 12C

Stensjögatan 3

Post code:

65602, Võru P.O., BOX 43

S-217 65

City:

Võru

MALMÖ

Country:

ESTONIA

SWEDEN

Telephone:

+372 78 282 30

+46-40-37 50 00

Fax:

+372 78 282 31

+46-40-13 03 69

E-mail:

WWW-URL:

Http://www.af.se/ens/english/rec

http://www.af.se

Contact person (for this activity):

-------------------------------------

------------------------------------

Surname:

Potter

Lindgren

First name, middle name:

Elmu

Ulf

Job title:

Consultant

project leader

Direct tel:

+372 78 282 30

+46-40-37 50 97

Direct fax:

+372 78 282 31

+46-40-13 03 69

Direct E-mail:

Elmu@regen.werro.ee

Ulf.lindgren@mlm.pdn.af.se

a) Organisation includes: institutions, ministries, companies, non-governmental organisations, etc. involved in the activity, i.e. research institutes associated with the project, auditors, government agency closely following the activity.

3) Activity:

Item Please fill in if applicable

General description:

Võru town is the administrative and economic centre of Võru county, located in south-eastern Estonia. The number of inhabitants of Võru town is approx. 16500. There are several boiler plants and district heating networks. In the biggest Võrusoo boiler plant there were three oil-fired DE 25-14 (25 tons steam per hour) steam boilers, designed to burning oil and gas. One of these mazout fuelled boilers has been converted to biofuels. The converted boiler will be used as the base-load boiler.

Type of project:a)

Fuel switching to biofuels

Location (exact, e.g. city, region,

state):

Võru town

Vöru county

Estonia

Activity starting date:

13 January 1994 (Letter of Intent)

In operation from:

August 1994

Expected activity ending date:

10. October 2004

Stage of activity:b)

Completed

Lifetime of activity if different from ending date:c)

Expected technical lifetime is 15 years which means that the plant is expected to be in operation till 2010.

Technical data:d)

An existing mazout fired DE 25-14 boiler has been converted to biofuels firing through installation a pre-furnace. Automatic fuel storage, flue gas cleaning equipment, wood chipper and additional oil burner are also included in the project.

Boiler type: DE 25-14 (steam)

Boiler output: 7 MW + 4,5 MW (oil)

Prefurnace: Integrated in the boiler

Flue gas cleaning: Multicyclone <300 mg/Nm3

Fuel type: Wood chips, sawdust,

bark, 35-55%RH

Previous fuel : Mazout ( high-sulphur

content heavy fuel oil)

Estimated heat production from the wood

fuel boiler: 35 000 MWh/jear

Total production of the boiler plant: 48 000 MWh/year

a) For example, using Intergovernmental Panel on Climate Change (IPCC) classification: energy efficiency; renewable energy; fuel switching; forest preservation, restoration or reforestation; afforestation; fugitive gas capture; industrial processes; solvents; agriculture; waste disposal or bunker fuels.

b) Circle the appropriate option.

c) Methodological work will be required to define lifetime of activities.

d) Methodological work will be required to determine for each type of activity what the minimum data requirements are.

The lifetime criteria has been arranged in different groups depending on type of implemented activities. This classification assumes a level of operation and maintenance which is normal in western countries.

Lifetime of activity

Heat production plants (bio fuel)

25 years

New installation of all main equipment parts (fuel handling system, firing equipment and boiler) and modernisation of secondary equipment.

15 years

Conversion of existing boiler but new installation fuel handling system and firing equipment. Modernisation of secondary equipment.

10 years

Limited installation of new equipment (only one part of the three main parts, normally the firing equipment). Modernisation of other equipment.

Heat distribution systems and sub-stations

25 years

Pre-fabricated pipes and installations using certified contractors and supervisor according to EN norms and applicable district heating practise

15 years

Pre-fabricated pipes and installations without using certified contractors and supervisor

10 years

Modernisation of existing pipes.

Energy efficiency in buildings

25 years

Additional insulation roofs walls etc. with Scandinavian technology.

New installed heating systems.

15 years

Renovation and balancing of heating systems including thermostat valves.

10 years

Weather stripping windows, doors etc.

* if a combination of measures is done a reasonable lifetime for the project have to be calculated.

4) Cost (to the extent possible):

To the investment costs are referred the cost of the investment proper and the accumulated interest during the grace period, generally 2 years.

The AIJ/JI cost items are the costs for:

  • Technical assistance, a technical and administrative support from consultants, during the period from definition of the project till commissioning. These costs are paid by STEM.
  • Follow-up, an annual technical and economic follow-up by consultants, hired by STEM, of the operating results of the plant with the objective to improve on its techno-economic sustainability and its climate effect. The cost indicated is an average cost per project.
  • Administration –Costs for seminars, handbooks, education (capacity building) and average costs of STEM staff per project.
  • Difference in interest rates. STEM applies for its loans generally an interest rate corresponding to 6-month STIBOR (Stockholm InterBank Rate, in April 1999 3,0 %). Assuming a normal lending rate of 7 % means that this loan is associated with a cost of 4 % in relation to normal lending rate.

Investment/instalment = the borrower’s possible own financing of the investment, followed by the borrower’s repayment of the loan.

All costs in USD

Country

Võru BC

1994 1995 1996 1997 1998 1999
0 1 2 3 4 5

Investment

1. Loan/debt to STEM

625000 625000 557250 487500 417750 348056

2. Added costs

0 0 0 0 0 0

3.Technical assistance

87500 0 0 0 0 0

AIJ/JI

4. Follow up

0 8750 10250 10625 2750 2834

A. Sweden

costs

5. Reporting costs

0 0 0 1063 0 930

6. Administration

63750 0 0 0 0 0

7. Difference in interest

4% 25000 22290 19500 16710 13922

8.Accum. costs for AIJ/JI

151250 185000 217540 248728 268188 285873

9.Total costs

776250 810000 774790 736228 685938 633929

Investment

1. Investment/Instalment

0 0 67750 69750 69750 69694

2. Estonia

AIJ/JI

2. Reporting costs

0 0 0 0 0 0

costs

3. Other costs

0 0 0 0 0 0

4. Accum. costs for AIJ/JI

0 0 0 0 0 0

5. Total costs

0 0 67750 137500 207250 276944

1 USD=

8

SEK

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organisations involveda):

Ministry of the Environment of Estonia is a central Estonian authority responsible on reporting of JI projects. This authority assigns a local institution, which is involved in to the evaluation of the climate effects of this project and takes the main responsibility to continue measuring, results collecting for JI-reporting.

a) Please ensure that detailed contact information for all organisations mentioned is reported under section A.2 above.

B. Governmental acceptance, approval or endorsement

Bearing in mind that all activities implemented jointly under this pilot phase require prior acceptance, approval or endorsement by the Governments of the Parties participating in these activities, which shall be shown as follows:

(a) In the case of joint reporting, the report is submitted by the designated national authority of one participating Party with the concurrence of all other participating Parties as evidenced by attached letters issued by the relevant national authorities;

(b) In the case of separate reporting, the reports are submitted separately by the designated national authority of each and every participating Party. Information will only be compiled once reports have been received from all participating Parties.

1) For the activity:

  • * Subsequent reports:

Third report. First report was submitted 1997.

2) This report is a joint report:

  • Yes, Agreement with designated national authority was signed 1997.

3) General short comment by the government(s) if applicable:

cf. Annex II, section B

C. Compatibility with and supportiveness of national economic development and socio economic and environment priorities and strategies

Describe (to the extent possible) how the activity is compatible with and supportive of national economic development and socio economic and environment priorities and strategies

The project meets the following objectives in the Estonian Energy Law, Estonian National Environmental Strategy, Estonian National Environmental Action Plan, Act on Sustainable Development and the Long-term Development Plan for the Estonian Fuel and Energy Sector:

- efficient and sustainable use of energy resources;

- to increase the share of renewable energy sources in the primary energy demand from present 8% to 13% to the year 2010;

- to reduce the environmental damage arising from fuel and energy production, transport, conversion and distribution;

- to create the reliable energy conservation system stimulating the implementation of energy conservation measures by consumers;

- creation and usage of energy efficient technologies, fuel/energy consuming and diagnostic equipment;

- stimulation of environmental awareness and environmentally friendly consumption patterns;

- to attract foreign investments for projects which ensure better use natural resources as well as environmental improvement;

- to develop co-operation between Baltic, Nordic and Central European countries

D. Benefits derived from the activities implemented jointly project

Whenever possible, quantitative information should be provided. Failing that, a qualitative description should be given. If quantitative information becomes available, it could be submitted using the update(s). (If the amount of quantitative information is too large, the source could be indicated.)

Item Please fill in

Describe environmental benefits in detail:

Annual emission reduction:

Projected: 1999

12035 ton CO2 14339 ton CO2

192 ton SO2 228,8 ton SO2

15,6 ton NOx 18,5 ton NOx

Lower pollution in town

Improved silviculture

Do quantitative data exist for evaluation of environmental benefits?

Yes. Some measurements have been carried out in 1994.

Describe social/cultural benefits in detail:

More stable energy supply

Improved working conditions, increased motivation

More employment (new fuel and service companies),

Improved trade balance

Do quantitative data exist for evaluation of social benefits?

Yes. Some reports have been produced

SEI case study

Involved into "Surrey -project" in 1997

Võru Town Energy Plan, 1999

Describe economic benefits in detail:

Decreased fuel costs approx. 3,0 USD per MWh.

The boiler plant has the lowest productions costs (include capital costs) in town.

The boiler plant has started with loan amortisation prematurely.

Do quantitative data exist for evaluation of economic benefits?

Yes. Some reports have been produced.

SEI case study

Involved into "Surrey -project" in 1997

Võru Town Energy Plan, 1999

  1. Calculation of the contribution of activities implemented jointly projects that bring about real, measurable and long-term environmental benefits related to the mitigation of climate change that would not have occurred in the absence of such activities

1) Estimated emissions without the activity (project baseline):

Description of the baseline or reference scenario, including methodologies applied:

Present data reflect emission reductions using status quo (emissions in the period before the conversion to renewable fuel) for the baseline case. Calculations, according to the top-down method, for emissions from different types of projects in the baseline case are being made. The changed calculation method will result in a change in emission reduction. The new data will be introduced as soon as available.

2) Estimated emissions with the activity:

Description of the scenario, including methodologies applied:

Emission reductions are calculated using the IPCC Guidelines, using the Carbon Emission Factor (CEF) for different types of fuel, using actual system efficiency. For boiler conversion, the decrease in emissions is calculated in relation to the amount of fossil fuel replaced (status quo).

For an energy efficiency project the decrease in emissions reflects the amount of fuel that is saved through the project. In the case that the system uses renewable fuels, the reduction is calculated comparing the amount of fossil fuels that was used before the conversion to renewable fuels.

Below comparison is based upon that the base-line scenario represents a status quo solution.

Fill in the following tables as applicable:

Summary table: Projected emission reductions:

GHG

Year 1

=1994

Year 2

=1995

Year 3

=1996

Year 4

=1997

Year 5

=1998

Year 6

=1999

...

Year 16

=2009

Planned energy production on biofuels MWh/year

15700

35 000

35 000

35 000

35 000

35000

35 000

A) Project baseline scenario

CO2

5398

12035

12035

12035

12035

12035

12035

CH4

-

-

-

-

-

N2O

-

-

-

-

-

other

-

-

-

-

-

B) Project activity scenarioa)

CO2

0

0

0

0

0

0

0

CH4

-

-

-

-

-

N2O

-

-

-

-

-

other

-

-

-

-

-

C) Effect ( B-A )

CO2

-5398

-12035

-12035

-12035

-12035

-12035

-12035

CH4

-

-

-

-

-

N2O

-

-

-

-

-

Other

-

-

-

-

-

D) Cumulative effect

CO2

-5398

-17433

-29468

-41503

-53538

-65573

-185921

CH4

-

-

-

-

-

N2O

-

-

-

-

-

Other

-

-

-

-

-

  1. Includes indirect GHG leakages.

Summary table: Actual emission reductions:

GHG

Year 1

= 1994

Year 2

= 1995

Year 3

=1996

Year 4

=1997

Year 5

=1998

Year 6

=1999

...

Year 16

=2009

Factual energy production on biofuels

11084

30479

33100

43150

41531

41701

41701

A) Project baseline scenario

CO2

3811

10537

11963

14837

14281

14339

14339

CH4

-

-

-

-

-

N2O

-

-

-

-

-

other

-

-

-

-

-

B) Project activity scenarioa)

CO2

0

0

0

0

0

0

0

CH4

-

-

-

-

-

N2O

-

-

-

-

-

other

-

-

-

-

-

C) Effect ( B-A )

CO2

-3811

-10537

-11963

-14837

-14281

-14339

-14339

CH4

-

-

-

-

-

N2O

-

-

-

-

-

Other

-

-

-

-

-

D) Cumulative effect

CO2

-3811

-14348

-26311

-41148

-55429

-69768

-213157

CH4

-

-

-

-

-

N2O

-

-

-

-

-

Other

-

-

-

-

-

  1. Includes indirect GHG leakages.

F. Additionality to financial obligations of Parties included in Annex II to the Convention within the framework of the financial mechanism as well as to current official development assistance flows

Please indicate all sources of project funding.

Category of funding

(For each source one line)

Amount

(US dollars)

Loan from NUTEK

625.312

Grant from NUTEK for technical assistance

87.500

1 USD = 8,00 SEK

G. Contribution to capacity building, transfer of environmentally sound technologies and know-how to other Parties, particularly developing country Parties, to enable them to implement the provisions of the Convention. In this process, the developed country Parties shall support the development and enhancement of endogenous capacities and technologies of developing country Parties

Transfer of environmentally sound technologies and know-how Describe briefly

Schematically, the transfer of knowledge involves the following activities over time:

i) Technology transfer through STEM technical specialist during the implementation of the project.

ii) Technology transfer through co-operation between foreign supplier and local partner

iii) Conferences, seminars, documentation and training.

iv) Stimulate "net-working" for the exchange of experience between plant owners with similar problems, e g "bio-clubs"

Technology transfer has taken place through:

  1. STEM technical specialist support to the local project leader and municipality;

Knowledge in negotiations to foreign companies;

Knowledge in managing and planning of industrial projects;

Transferring of environmental issues to the local parties;

Transferring of knowledge in operation and maintenance issue;

Operation and maintenance software was introduced to the plant-owners.

  1. Personal from boiler plant has been invited to different seminars and workshops and several presentations about company experience have made, documentation for training has been handed over.

There were arranged seminars through close cooperation between STEM and Estonian partners:

  • Environmentally Friendly Energy Systems in the Baltic Region and Eastern Europe - seminar in Tallinn , 14-15 Aprill, 1994;
  • Environmentally Friendly Energy Systems in the Baltic Region and Eastern Europe - seminar and workshops in Tartu , 25 November, 1994 (prepared information by topics in Estonian over than 150 pages);
  • EAES Programme District Heating Day in Vändra, 27 July, 1995;
  • Environmentally Adapted Local Energy Systems - seminar and presentation of translated into Estonian booklet "Environmentally Adapted Local Energy Planning" in Rakvere, 11 November, 1998 and in Tartu, 12 November, 1998.

iv) Activities have been supported by STEM to establish Estonian Biofuels Association: meetings representatives of plant owners and consultants were arranged in Haabneeme, Valga, Võru, Tartu, Pärnu and Viljandi.

Boilerplant has been visited by specialist of other boilerplants (incl. From Russia, baltic Coutries), the staff has an exchange of experience with other boilerplants and was active in "bio-club". Estonian Biofuels Association is established in 1998 (mainly by "bio-club" and local experts).

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organisation1)

Development (DEV) /

enhancement (ENH)

Describe briefly

AS Võru Soojus

(DEV)

The staff at boilerplant has got

experience in how to handle biofuel firing equipment

1) Please ensure that detailed contact information for all organisations listed is reported under section A.2 above.

H. Additional comments, if any, including any practical experience gained or technical difficulties, effects, impacts or other obstacles encountered

Fill in as appropriate:

  1. Any practical experience gained:

Good training and experience of the staff is necessary to operate biofuel boiler at full capacity. The motivation of the staff to learn is very important to get good results.

The concrete surface in the automatic storage below the scrapers has been partly damaged. The metal sheets were installed under the scrapers to avoid concrete surface wearing problems. For the future boiler conversions it is important to demand fulfilling certain quality requirements for surface under the scrapers in the automatic fuel storage.

Ordinary repairing and maintenance works are carried out: renovation ash screws, replacing conveyor blades and main wheel.

2) Technical difficulties:

To get the managers understanding about maintenance of existing equipment in co-operation to the new.

The short brakes in the production had to made for cleaning of the boiler convective part tubes after 2-3 months operation time (the converted boiler is specially designed for burning oil and gas). The special opening is made for boiler cleaning.

The maximum output capacity was not reached during the guarantee period until the pre-furnace construction improvements have been made by supplier. After rebuilding the full capacity was reached.

The additional oil burner has been in the operation about 700 hours during the first two years. Deposits which formed in the convective part of the boiler during oil-burner operation disturbed the normal work of the boiler. At the present time the oil-burner is not in operation.

There have been problems with combustion with an excess air and boiler efficiency has been lower 80%.

3) Effects encountered:

Several local companies have participated in the project

Execution of the follow up and monitoring activities to get feedback to the programme and for evaluation of the results of the different measures.

Consulting support from both Swedish and Estonian side, also after commissioning.

4) Impacts encountered:

The experiences from EAES Programme projects have formed the basis for a new policy as respect to increasing renewable energy sources in the total energy balance of Estonia.

Reduced dependence on imported fuels.

5) Other obstacles encountered:

Lack of a strong national focal point to support and promote biomass energy activities.

6) Other:

The converted boiler isn’t sufficiently loaded during two last years summer time due to diminishing domestic hot water consumption (approx. 2 GWh )

No subsidies to renewables, taxation policy is not in support of biofuel use.

The wood chipper was not used for chipping logs in site.

Calculations of the volume of emissions of sulphur dioxide and nitrogen oxide in the section D are revised and new emissions values are calculated according to the Regulation No. 33 of 17. March 1999 of the Ministry of the Environment "The procedure and methods of determination of the volume of pollutants from combustion plants to the air".