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ACTIVITIES IMPLEMENTED JOINTLY(AIJ)
 

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

Annex I

List of Projects

A. Description of project

1) Title of project: Conversion project in Narva- Jõesuu

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 Jõesuu Soojatootja

Name of organisation (English):

Ltd Heat Producer at Jõesuu

Department:

Acronym:

Acronym (English):

Function within activity:

Project owner

Street:

Suur- Lootsi 9

Post code:

29023

City:

Narva-Jõesuu

Country:

ESTONIA

Telephone:

+372 35 77 3 80

Fax:

+372 35 77 577

E-mail:

WWW-URL:

Contact person (for this activity):

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

Surname:

Ermakov

First name, middle name:

Vladislav

Job title:

Head of the Boilerhouse

Direct tel:

+372 35 77 251

Direct fax:

+272 35 77 577

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

ÅF - 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:

elmupotter@hot.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:

Narva Jõesuu in Estonia's most north-eastern area is a town with about 3500 inhabitants and several health institutions. The town has one boiler plant with three oil fired KVGM 10-150 hot water boilers. One of these boilers has been converted to firing biofuel. One reason for the boiler conversion was to be able to ensure the tourists as well as the inhabitants cleaner air and environment conditions.

Type of project:a)

Fuel switching to biofuels

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

state):

Narva Jöesuu town

Eastern-Viru County

Estonia

Activity starting date:

20. November 1994 (Letter of Intent)

In operation from:

January 1996

Expected activity ending date:

Loan expire date 30.September 2005

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 2011.

Technical data:d)

The oilfired KVGM 10-14 hot water boiler has been converted to wood chips firing by installation of a movable grate in the existing boiler. Half of the grate is put into a pre-furnace front of the boiler. The new equipment consists of combustion equipment, a fuel silo with an automatic fuel handling system, flue gas cleaning and steel framework.

Boiler type: KVGM 10-50 (Hot water

boiler)

Boiler output : 6,0 MW

Prefurnace: Intregrated pre-furnace

Flue gas cleaning: Multicyclone < 300 mg/Nm3

Fuel type: Wood chips, sawdust, bark

35-55 % RH

Previous fuel: Oil-shale oil

Estimated heat production from wood fuel boiler: 25000 MWh/year

Total heat production of the boiler plant: 30000 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.

  1. 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

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

Narva Jõesuu

1995 1996 1997 1998 1999 2000
0 1 2 3 4 5

Investment

1. Loan/debt to STEM

597200 658900 688200 720500 747360 786547

2. Added costs

0 61700 29300 32300 26860 39187

3.Technical assistance

68000 0 0 0 0 0

AIJ/JI

4. Follow up

0 0 8500 2200 2267 2139

A. Sweden

costs

5. Reporting costs

0 0 850 0 744 301

6. Administration

39300 0 0 0 0 0

7. Difference in interest

4% 26356 27528 28820 29894 31462

8.Accum. costs for AIJ/JI

107300 133656 170534 201554 234459 268362

9.Total costs

704500 792556 858734 922054 981820 1054909

Investment

1. Investment/Instalment

0 0 0 0 0 0

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 0 0 0 0

1 USD=

10

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:

Fourth 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: 2000

9191 ton CO2 6762 ton CO2

60,4 ton SO2 44,5 ton SO2

6 ton NOx 4,4 ton NOx

Improved silviculture

Lower pollution in district

Do quantitative data exist for evaluation of environmental benefits?

Yes. Measurements have been carried out in 1997.

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

PHARE programme Estonia. Energy Sector: Post Implementation Performance Analysis for Energy Investments, 1998.

Describe economic benefits in detail:

Decreased fuel costs per produced energy approx. 5,2 USD/MWh.

Decreased import fuel costs approx. 95000 USD per year.

Do quantitative data exist for evaluation of economic benefits?

Yes. Some reports have been produced.

PHARE programme Estonia. Energy Sector: Post Implementation Performance Analysis for Energy Investments, 1998.

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.

It can be considered probable that natural gas would have been chosen some period after the start-up time of the bio-fuelled boiler.

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.

Status quo data:

Fuel

Oil shale oil

Fossil fuels boilrs efficiency

0,75

Fill in the following tables as applicable:

Summary table: Projected emission reductions:

GHG

Year 1

=1996

Year 2

=1997

Year 3

=1998

Year 4

=1999

Year 5

=2000

...

Year 15

=2010

Planned energy production on biofuels MWh/year

25000

25000

25000

25000

25000

25000

A) Project baseline scenario

CO2

9191

9191

9191

9191

9191

9191

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

-9191

-9191

-9191

-9191

-9191

-9191

CH4

N2O

Other

D) Cumulative effect

CO2

-9191

-18352

-27573

-37765

-45956

-137867

CH4

N2O

Other

a) Includes indirect GHG leakages.

Summary table: Actual emission reductions:

GHG

Year 1

= 1996

Year 2

= 1997

Year 3

=1998

Year 4

=1999

Year 5

=2000

...

Year 15

=2010

Factual energy production on biofuels

11110

2245

3499

18886

18394

18394

A) Project baseline scenario

CO2

4085

825

1286

6943

6762

6762

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

-4085

-825

-1286

-6943

-6762

-6762

CH4

N2O

Other

D) Cumulative effect

CO2

-4085

-4910

-6196

-13140

-19902

-87527

CH4

N2O

Other

a) 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

787.009

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 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:

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

Knowledge in negotiations to foreign companies;

Knowledge in managing and planning of bigger industrial projects;

Transferring of environmental issues to the local parties;

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

  1. Staff 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 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.

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, the staff has an exchange of experience with other boilerplants. Estonian Biofuels Association is established in 1998 ( mainly by "bio-club" and local experts).

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organization1)

Development (DEV) /

enhancement (ENH)

Describe briefly

AS Jöesuu Soojatootja

(DEV)

The boiler plant 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:

The biofuel boiler start-up and operation training is important. It may be that one or two persons among the staff had got 2-3 days training which is too little. The staff needs good training for operation of the biofuel boiler. The motivation of the staff to learn is very important to get good results.

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

  1. Technical difficulties:

The biofuel storage crane electrical motors have often been out of order, some improvements in the crane construction must be made.

Some problems in operation of boiler tubs cleaning equipment.

The operational ability of the converted boiler shunt pump must be increased, the boiler convection part tubes have been damaged due to unoperating shunt pump.

There are problems with the combustion process adjustment, converted boiler efficiency is low (70-75%). In 2000 some boiler efficiency measurements and regulations are done.

Boiler operators need some training to adjust combustion process. The new management is interested in such training.

There is replaced a lot of electrical components in the boiler electrical cabinet (mainly components from Russian market are used to due lower price).

In 2000 the most of the biofuel boiler tubes were changed due to corrosion damages.

Some boiler grate elements are necessary to change.

  1. Effects encountered:

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:

The plant has had a lot of management problems because the management has been changed very often during 1-2 years, actually during the time when the conversion investment has been in operation. The normal operational practices have not been developed well. There have been heat production brakes resulted mainly of general operational problems.

In 1996 biofuel was used but in 1997 the use of biofuel collapsed due to fuel supply problems. The present staff of the plant seems to be motivated and they have plans to solve the fuel supply problems.

In 1999 the fuel supply problems are solved.

High unemployment level in the region and the plant has also debts due to unpaid heat bills. Due to this situation company is not able to pay fuel suppliers bills in time and problems may occur to purchase biofuel.

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

There is lack of information about bio fuels in Russian language and the local staff has communicated with specialists from another boilerplants.

6) Other:

Improving the positive image of the Narva-Jõesuu town (a health-resort and attractive area for tourists) as "green town" promoting environmentally friendly measures and practices and thereby increasing its value as health-resort.

No subsidies to renewables, taxation policy is not in support of bio fuel 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 det