CC:INFO/AIJ: REPORT

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

A. Description of project

1) Title of project: Türi II, Combined fuel conversion and distribution

renovation project in Türi, Estonia

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:	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	Borrower
Name of organisation(a):	Türi Linnavalitsus	OÜ TERME
Name of organisation (English):	Türi Municipal Government	TERME Ltd
Department:
Acronym:
Acronym (English):
Function within activity:	Borrower	Project owner
Street:	Kohtu 2	Tehnika 5
Post code:	72213 Türi	72213 Türi
City:	Järva county	Järva county
Country:	Estonia	Estonia
Telephone:	+372 38 48 200	+372 38 78 610
Fax:	+372 38 48 248	+372 38 78 498
E-mail:	linnavalitsus@tyri.ee
WWW-URL:	http://www.tyri.ee
Contact person (for this activity):
Surname:	Raul	Jüri
First name, middle name:	Metsunt	Saluste
Job title:	heat and power specialist	Manager
Direct tel:	+372 38 48 254	+372 38 78 610
Direct fax:	+372 38 48 248	+372 38 78 498
Direct E-mail:	raul@tyri.ee

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:	Türi is a town in the middle of Estonia with its 7 000 inhabitants and some 95 km south of Tallinn. Türi is well-known with garden and park areas. There are several boiler plants and district heating networks in Türi. STEM/EAES Programme has earlier implemented the connection of networks and closing down Haava coal-fired boilerhouse. In this project one oil-fired boiler house has been closed, two nets has been connected and the main boiler in the Vabriku street has been converted from heavy oil to biofuels. The main boiler in one net is already using wood fuel .
Type of project:a)	Fuel switching to biofuels and energy efficiency
Location (exact, e.g. city, region, state):	Türi town Türi County Estonia
Activity starting date:	5 May 1997 ( Letter of Intent)
In operation from:	April 1998 (boiler conversion) October 1997 ( network, substations)
Expected activity ending date:	31 March 2007
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 2013.
Technical data:d)	An existing oilfired DKVR 10-13 boiler has been converted to biofuels firing through installation of an integrated movable inclined grate in the boiler. Furthermore, automatic fuel storage and flue gas cleaning are included in the project. Boiler type: DKVR 10-13 (hot water) Boiler output: 4,5 MW Prefurnace: Integrated in the boiler Flue gas cleaning: Multicyclone < 300 mg/Nm3 Fuel type: Wood chips, 35-55 % RH Previous fuel: Mazut (High-sulphur-heavy oil) Estimated heat production from wood fuel boiler: 20 000 MWh/year Total production of the boiler plant: 22000 MWh/year. The connection of networks also made it necessary to install 15 substations with controllers for space heating and heat exchangers for domestic hot water in the buildings due to the conversion of one network to a 2- pipe system (not separate pipes for supply domestic hot water). Energy saving through efficiency measures: about 2000 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.

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.

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	Türi BC och EE	Türi BC och EE	1997	1998	1999
			0	1	2
	Investment	1. Loan/debt to STEM	517375	744500	697973
		2. Added costs	0	320875	0
		3.Technical assistance	85000	0	0
	AIJ/JI	4. Follow up	0	0	2834
A. Sweden	costs	5. Reporting costs	0	2500	930
		6. Administration	38750	0	0
		7. Difference in interest	4%	29780	27919
		8.Accum. costs for AIJ/JI	123750	32280	31683
		9.Total costs	641125	776780	729656
	Investment	1. Investment/Instalment	0	93750	46527
B.Estonia	AIJ/JI	2. Reporting costs	0	0	0
	costs	3. Other costs	0	0	0
		4. Accum. costs for AIJ/JI	0	0	0
		5. Total costs	0	93750	140277
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:

Second report. First report was submitted 1999.

2) This report is a joint report:

Yes, Endorsement letter was submitted 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 7995 ton CO2 5753 ton CO2 127,7 ton SO2 91,9 ton SO2 11,7 ton NOx 8,1 ton NOx Lower pollution in the area around closed boiler plant in the centre on town.
Do quantitative data exist for evaluation of environmental benefits?	Yes, Tallinn Technical University have made environmental measurements in spring 1998. Report is available
Describe social/cultural benefits in detail:	More stable energy supply Improved working conditions, increased motivation More employment (fuel companies)
Do quantitative data exist for evaluation of social benefits?	No
Describe economic benefits in detail:	Improved trade balance in the county. The wood fuel is bought local to a cost of 125.000 USD/year
Do quantitative data exist for evaluation of economic benefits?	Yes, some studies has been carried out Energy utilisation feasibility study for Türi town, 1996

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.

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 =1997	Year 2 =1998	Year 3 =1999	...	Year 16 =2012
Planned energy production on biofuel ,MWh/year			13300	20000		20000
Saving from project, MWh/year		580	2000	2000		2000
A) Project baseline scenario	CO2	299	5662	7995		7995
	CH4
All tons/year	N2O	--	--	--		--
	other
B) Project activity scenarioa)	CO2	0	0	0		0
	CH4
All tons/year	N2O	--	--	--		--
	other
C) Effect ( B-A )	CO2	-299	-5662	-7995		-7995
	CH4
	N2O	--	--	--		--
	other
D) Cumulative effect	CO2	-299	-5961	-13956		-116853
	CH4
	N2O		--	--		--
	other

Includes indirect GHG leakages.

Summary table: Actual emission reductions:

	GHG	Year 1 = 1997	Year 2 = 1998	Year 3 = 1999	...	Year 16 =2012
Factual energy production on biofuels, MWh/hear		0	0	12352		12352
Factual energy saving, MWh/year		480	1110	1006		634
A) Project baseline scenario	CO2	248	4873	5753		5234
	CH4
	NO2
	other
B) Project activity scenarioa)	CO2	0	0	0		0
	CH4
	NO2
	other
C) Effect ( B-A )	CO2	-248	-4873	-5753		-5234
	CH4
	NO2
	other
D) Cumulative effect	SO2	-248	-5120	-10873		-85142
	CH4
	NO2
	other

Includes indirect GHG leakages.

* For year 1997 factual data were not available.

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	713.639
Grant from NUTEK for technical assistance	85.000

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’s technical specialist during the implementation of the project.

ii) Technology transfer through cooperation 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:

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

Knowledge in negotiations to foreign companies;

Knowledge in managing and planning of projects;

Transferring of environmental issues to the local parties;

Transferring of knowledge in operation and maintenance issue.

Personal involved in the project has been invited to different seminars and workshops and, 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 April, 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;
Energy efficiency projects in Mustamäe residential buildings - seminar in Tallinn, 16 September, 1996.

iv) Activities have been supported by STEM to stimulate cooperation with local experts, consultants, project owners to achive two-way communication and to find respect for chosen solutions from both sides.

The boiler plant has been visited by specialists of other boiler plants, the staff has an exchange of experience with other boiler plants. Estonian Biofuels Association is established in 1998 ( mainly by "bio-club" and local experts) and the company is a member.

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organisation1)

Development (DEV) /

Enhancement (ENH)

Describe briefly

Tallinn Technical University

Heating company OÜ TERME

Türi Municipal Government

(DEV)

Technical evaluation

The staff at boiler plant has got

experience in how to handle biofuel firing equipment

The municipality specialists have got experience how to continue energy efficiency projects in larger scale according to the town energy plan.

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:

Any practical experience gained:

The local project manager has got high experience in managing of industrial projects.

The staff has got education in operating modern equipment.

Good training and experience of the staff is necessary to operate biofuel boiler at full capacity.

0ne of the lessons learnt is that it is important to have persons responsible for the adjustment of the equipment for each building and that they have good understanding of the consequences of their actions

More reliable heat supply after connection of the networks.

Is very important to control temperature in the prefurnace and the temperature gauge must be installed in the suitable place to avoid lining damages.

Maintenance service of heat substations is necessary to develop.

Technical difficulties:

The maximum output capacity 4,5MW is not reached. Maximum output capacity 3,3 MW was determined during testing. The final testing of boiler output capacity is not yet performed.

Problem with high CO emission, boiler efficiency is lover 80%.

Too big excess air factor, uncontrolled air will penetrate into combustion zone through slots between prefurnace wall and grates. The grates slots resistance to combustion air flow will become too high after some time of operation after grates cleaning.

The combustion process adjustment is complicated in such situation.

There was no installed temperature gauge to control combustion temperature, which it is necessary to install.

Effects encountered:

Several local companies have participated.

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

In some building too much emphasis was put on reduction of heat consumption and limiting the heat bill and the domestic hot water consumption was decreased at least two times. The persons adjusting the equipment concentrated more on limiting the metered heat consumption than an maintaining an acceptable indoor temperature.

In one residential building inhabitants have closed central domestic hot water system and they have installed individual electrical boilers.

4) Impacts encountered:

Better indoor climate in the most of the buildings and improved domestic hot water supply .

The value of the flats, when sold has been higher in the buildings with good energy management.

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.

Other:

About 60 % of the project costs are spent local.

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

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".

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