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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: Boiler Conversion in the Aardla boiler plant in Tartu, owned by AS Tamme Soojus

2) Participants/actors:

Item Financier/Reporter Estonian 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:

Senior officer

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 Tamme Soojus

Name of organisation (English):

Ltd Tamme Soojus

Department:

Aardla Boilerplant

Acronym:

Acronym (English):

Function within activity:

Project owner

Street:

Tulbi 12

Post code:

50412

City:

Tartu

Country:

ESTONIA

Telephone:

+372 7 426 101

Fax:

+372 7 426 100

E-mail:

tamme@kodu.ee

WWW-URL:

Contact person (for this activity):

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

Surname:

Pärnamäe

First name, middle name:

Enn

Job title:

Manager

Direct tel:

+372 7 426 104

Direct fax:

+372 7 426 100

Direct E-mail:

enn@kodu.ee

Item Please fill in if applicable Please fill in if applicable

Name of organization(a):

Sihtasutus Regionaalsed Energiakeskused

ÅF International

Name of organization (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:

Tartu is the second largest town in Estonia with 110000 inhabitants and there are several boiler plants and district heating networks in Tartu. In Aardla boiler plant there were three oil-fired DKVR 10-13 steam boilers. Two of which have been previously are converted to produce hot water. One of these hot water boilers has been converted to biofuels. The converted boiler will be used as the base load for this particular net.

Type of project:a)

Fuel switching to biofuels

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

state):

Tartu town

Tartu county

Estonia

Activity starting date:

10. December 1993 (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)

Conversion of an oil-fired DKVR 10-13 boiler to biofuels through installation of an integrated movable grate in the existing boiler. The new equipment consists of a pre-furnace with a moving grate, a fuel silo, fuel handling equipment and flue gas cleaning equipment.

Boiler type: DKVR 10-13 (hot water)

Boiler output: 6 MW

Prefurnace: Integrated in the boiler

Flue gas cleaning: Multicyclone <300 mg/Nm3

Fuel type: Wood chips, sawdust, bark, 35-55%RH

Previous fuel : Mazut ( high-sulphur content heavy fuel oil)

Estimated heat production from the wood

fuel boiler: 30 000 MWh/jear

Total production of the boiler plant: 38 000 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.
  • Reporting costs – i e costs in connection with the annual reporting of the project’s climate effects to UNFCCC. 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

Tartu,Ardla,DH

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

Investment

1. Loan/debt to STEM

699476 621756 582896 595720 562543 468786

2. Added costs

0 0 0 12824 13702 0

3.Technical assistance

68750 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 2500 930

6. Administration

0 0 0 0 0 0

7. Difference in interest

4% 24870 23316 23829 22502 18751

8.Accum. costs for AIJ/JI

68750 102370 135936 171452 199204 221719

9.Total costs

768226 724126 718832 767173 761747 690505

Investment

1. Investment/Instalment

0 77720 38860 0 46879 93757

2. Lithuania

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 77720 116579 116579 163458 257215

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 emissions reduction:

Projected: 1999

10190 ton CO2 10004 ton CO2

162,6 ton SO2 159,6 ton SO2

13,2 ton NOx 12,9 ton NOx

Lower pollution in town

Improved silviculture

Do quantitative data exist for evaluation of environmental benefits?

Yes. Some measurements have been has been carried out at 1994.

Describe social/cultural benefits in detail:

More stable energy supply

Improved working conditions, increased motivation

More employment (fuel 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.

Describe economic benefits in detail:

Decreased fuel costs approx. 4 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.

E. 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.

After two years operation the mazout was be replaced by natural gas for the rest of the activity lifetime.

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

13 500

30 000

30 000

30 000

30 000

30 000

30 000

A) Project baseline scenario

CO2

4585

10190

10190

10190

10190

10190

10190

CH4

-

-

-

-

-

N2O

-

-

-

-

-

other

-

-

-

-

-

B) Project activity scenarioa)

CO2

0

0

0

0

0

0

0

CH4

-

-

-

-

-

N2O

-

-

-

-

-

other

-

-

-

-

-

C) Effect ( B-A )

CO2

-4585

-10190

-10190

-10190

-10190

-10190

-10190

CH4

-

-

-

-

-

N2O

-

-

-

-

-

Other

-

-

-

-

-

D) Cumulative effect

CO2

-4585

-14775

-24965

-35155

-45344

-55534

-157432

CH4

-

-

-

-

-

N2O

-

-

-

-

-

Other

-

-

-

-

-

a) 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

13074

26328

29372

36843

34372

29453

209453

A) Project baseline scenario

CO2

4441

8942

9976

12514

11675

10004

10004

CH4

-

-

-

-

-

N2O

-

-

-

-

-

other

-

-

-

-

-

B) Project activity scenarioa)

CO2

0

0

0

0

0

0

0

CH4

-

-

-

-

-

N2O

-

-

-

-

-

other

-

-

-

-

-

C) Effect ( B-A )

CO2

-4441

-8942

-9976

-12514

-11675

-10004

-10004

CH4

-

-

-

-

-

N2O

-

-

-

-

-

Other

-

-

-

-

-

D) Cumulative effect

CO2

-4441

-13383

-23360

-35874

-47548

-57553

-157593

CH4

-

-

-

-

-

N2O

-

-

-

-

-

Other

-

-

-

-

-

a) Includes indirect GHG leakag