CC:INFO/AIJ: REPORT

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

Annex I

A. Description of project

1) Title of project: Varena Boiler Conversion Project

2) Participants/actors:

Item	Financier/Reporter	Co-reporter
Name of organisation(a):	Statens energimyndighet	Aplinkos Ministerija
Name of organisation (English):	Swedish National Energy Administration	Ministry of Environment
Department:	Secretariat for Climate Policy and International Co-operation	Environmental Quality Department
Acronym:	STEM	AM
Acronym (English):	STEM	MoE
Function within activity:	Assigned by the Swedish Government for implementation including financing arrangements.	Assigned by the Lithuanian Government for activities implemented jointly
Street:	Kungsgatan 43	Jakšto 4
Post code:	BOX 310, S-631 04	LT-2600
City:	Eskilstuna	Vilnius
Country:	Sweden	Lithuania
Telephone:	+46-16 544 20 00	+370-2 61 90 49
Fax:	+46-16 544 22 64	+370-2-22 08 47
E-mail:	klas.tennberg@stem.se	atm@nt.gamta.lt
WWW-URL:	http://www.stem.se	http://www.gamta.lt
Contact person (for this activity):	-------------------------------------	-------------------------------------
Surname:	Knutsson	Bilkis
First name, middle name:	Gudrun	Mindaugas
Job title:	Head of Section, Climate Investment Programme	Director of Environmental Quality Dept.
Direct tel:	+46-16 544 20 72	+370-2-61 90 49
Direct fax:	+46-16 544 22 64	+370-2-22 08 47
Direct E-mail:	gudrun.knutsson@stem.se	atm@nt.gamta.lt

	Borrower
Name of organisation(a):	SPAB Varenos siluma
Name of organisation (English):	Joint Stock Company Varenos siluma
Department:
Acronym:
Acronym (English):
Function within activity:	Borrower
Street:	Basanaviciaus 56
Post code:	LT 4640
City:	Varena
Country:	Lithuania
Telephone:	+370 60 31 027
Mobile:	+370 98 40 713
Fax:	+370 60 31 029
E-mail:
WWW-URL:
Contact person (for this activity):
Surname:	JATKEVICIUS
First name, middle name:	BRONISLAVAS
Job title:	Director
Direct tel:	+370 60 31 029
Mobile:	+370 87 58 817
Direct fax:	+370 60 31 029
Direct E-mail:

Item	Please fill in if applicable	Please fill in if applicable
Name of organization(a):	Lietuvos energetikos institutas	ÅF Energikonsult Syd AB
Name of organization (English):	Lithuanian Energy Institute
Department:	Heat-Equipment Research and Testing Laboratory	AF - International AB
Acronym:	LEI	ÅFE
Acronym (English):	LEI	AFE
Function within activity:	Local reporter Responsible for the measuring and collecting results for EAES-reporting.	Technical support
Street:	Breslaujos 3	Stensjögatan 3
Post code:	LT 3035	S-217 65
City:	Kaunas	MALMÖ
Country:	Lithuania	SWEDEN
Telephone:	+ 370 (7) 45 34 95, 40 18 63	+46-40-37 50 00
Fax:	+ 370 (7) 35 12 71	+46-40-13 03 69
E-mail:	testlab@isag.lei.lt
WWW-URL:	http://www.lei.lt	http://www.af.se
Contact person (for this activity):	-------------------------------------	-------------------------------------
Surname:	Pedisius	Mårtensson
First name, middle name:	Nerijus	Roland
Job title:	Senior Research Associate	project leader
Direct tel:	+ 370 (7) 40 18 64	+46-40-37 51 04
Direct fax:	+ 370 (7) 35 12 71	+46-40-13 03 69
Direct E-mail:	nerijus@isag.lei.lt	rmn@ens.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:	Varena is a medium size town about 1 hour away from Vilnius. 13.000 of the inhabitants are supplied with heat from a boiler house. SPAB Alytaus Siluma was the owner of the boiler house until 2000 when the ownership was passed to SPAB Varenos Siluma. The boiler house also supplies steam to nearby industries. The boiler house had three DKVR 10-13 steam boilers and two KVGM hot water boilers, all burning heavy oil.
Type of project:a)	Fuel switching to renewable
Location (exact, e.g. city, region, state):	Varena town Alytus District LITHUANIA
Activity starting date:	1995- 03-219(letter of Intent)
In operation from:	May 1997
Expected activity ending date:	30. September 2005
Stage of activity:b)	Complete
Lifetime of activity if different from ending date:c)	Expected technical lifetime is 25 years which means that the plant is expected to be in operation till 2020.
Technical data:d)	A new pre-furnace for burning wood chips and a new DE-25 steam boiler have been installed. The DE boiler has both an ordinary economiser for preheating the feed-water and an extra economiser that heats the district heating water. The latter economiser is an experiment that may cool the flue gases below water dew point and thus using a part of condensation energy in flue gases. New boiler has an estimated power output of 8 MW. Annual heat production is around 60 000 MWh.

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 types of activity what the minimum data requirements are.

The lifetime criteria have been arranged in different groups depending on type of implemented activities. This classification assumes a level of operation and maintenance that 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) Plant 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 tech-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 – 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		Varena Bc	1996	1997	1998	1999	2000
			0	1	2	3	4
	Investment	1. Loan/debt to STEM	518200	650600	569300	487963	411049
		2. Added costs	60300	72100	0	0	4423
		3.Technical assistance	90000	0	0	0	0
	AIJ/JI	4. Follow up	0	8500	2200	2267	2139
A. Sweden	Costs	5. Reporting costs	0	851	0	744	301
		6. Administration	40000	0	0	0	0
		7. Difference in interest	4%	26024	22772	19519	16442
		8.Accum. costs for AIJ/JI	130000	165375	190347	212877	231759
		9.Total costs	708500	815975	759647	700840	642808
	Investment	1. Investment/Instalment	0	0	81300	81337	81337
2. Lithuania	AIJ/JI	2. Reporting costs	0	0	0	0	0
	Costs	3. Other costs	0	0	0	0	0
		4. Accum. costs for AIJ/JI	0	0	0	0	0
		5. Total costs	0	0	81300	162637	243974
1 USD=	10	SEK

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organisations involveda):

Lithuanian Ministry of Environment is a central Lithuanian authority responsible on reporting of JI-projects. This authority assigns a local organisation Lithuanian Energy Institute that is involved in to the evaluation of the climate effects of this project. Lithuanian Energy Institute 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.

* Subsequent reports:

Fourth report.

This report is a joint report:

Yes, Endorsement letter was submitted 2001.

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

Yes, Agreement with Lithuanian Ministry of the Environment was signed on March 2000.

Activity. The scope of work of this agreement consists of collection basic data, examination project possibilities, engineering, supervision, inspection, local investigations, and preparation reports. 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 with the following objectives in the Lithuanian energy sector:

- to reduce the energy intensity

- to reduce dependence on fuel imports

- to create new working places

- to involve the local companies into production of equipment for new firing technology

- to create and improve energy infrastructure based on indigenous energy resources

- to utilise the existing energy production capacity efficiently

- to reduce of fossil fuel consumption which results in emission reduction and currency saving

- to develop co-operation between Baltic, Nordic and other 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 19 713 ton CO₂ 12 342 ton CO₂ 19 516* 12 219 300 ton SO₂ 188 ton SO₂ 7 ton NO_x 4 ton NO_x Lower pollution.
Do quantitative data exist for evaluation of environmental benefits?	Yes. Collected by LEI experts since 1997.
Describe social/cultural benefits in detail:	The project has a good demonstration effect Improved working conditions, increased motivation Higher employment
Do quantitative data exist for evaluation of social benefits?	No
Describe economic benefits in detail:	Decreased fuel costs about 4 USD/MWh which results in emission reduction and currency saving; Reduction of heat price for heating and hot water preparation about 20%
Do quantitative data exist for evaluation of economic benefits?	Yes. Collected by LEI experts since 1997 and updated every year.

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. Calculation methods are being revised and 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 a 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 = 1996	Year 2 = 1997	Year 3 = 1998	Year 4 = 1999	Year 5 = 2000	...	Year 25
Planned energy production MWh/year Biofuel Mazout /light-oil		60 000 30 000	60 000 30 000	60 000 30 000	60 000 30 000	60 000 30 000		60 000 30 000
Planned annual fuel consumption MWh/year Biofuel Mazout/light oil		73 171 35 296	73 171 35 296	73 171 35 296	73 171 35 296	73 171 35 296		73 171 35 296
A) Project baseline scenario	CO2	29 570 29 274*	29 570 29 274	29 570 29 274	29 570 29 274	29 570 29 274		29 570 29 274
	CH4	-
	N2O	-
	other	-
B) Project activity scenarioa)	CO2	9 857 9 758	9 857 9 758	9 857 9 758	9 857 9 758	9 857 9 758		9 857 9 758
	CH4	-
	N2O	-
	other	-
C) Effect (B-A)	CO2	-19 713 -19 516	-19 713 -19 516	-19 713 -19 516	-19 713 -19 516	-19 713 -19 516		-19 713 -19 516
	CH4
	N2O	-
	Other	-
D) Cumulative effect	CO2	-19 713	-39 426	-59 139	-78 852	-98 565		- 492 825
	CH4	-19 516	-39 032	-58 548	-78 064	-97 580		-487 900
	N2O	-
	Other	-

a) Includes indirect GHG leakages.

* The data in black colour are calculated using the programme provided by ÅF Energikonsult Syd AB. The data in red colour presented in this table are calculated according to formulas and discounting values from DNV "Multi-Project Verification of 31 Swedish-Baltic AIJ Projects" report. Almost all recommendations and remarks from DNV "Multi-Project Verification of 31 Swedish-Baltic AIJ Projects" report are involved in these calculations.

Summary table: Actual emission reductions:

	GHG	Year 1 = 1996	Year 2 = 1997	Year 3 = 1998	Year 4 = 1999	Year 5 = 2000	...	Year 25
Factual energy production MWh/year Biofuel Mazout /light-oil		13 312 30 617	30 731 52 241	28 224 54 489	28 202 44 258	37 565 27 386		27607 41 798
Factual annual fuel consumption MWh/year Biofuel Mazout/light oil		16 234 36 020	37 477 61 460	34 420 64 105	34 393 52 068	45 811 32 219		33 667 49 174
A) Project baseline scenario	CO2	14 433	27 261	27 176	23 807	21 340		22 803
	CH4	-
	N2O	-
	other	-
B) Project activity scenarioa)	CO2	10 059	17 164	17 903	14 541	8998		13 733
	CH4	-
	N2O	-
	other	-
C) Effect (B-A)	CO2	-4 374 -4 329*	-10 097 -9 996	-9 273 -9 180	-9 266 -9 173	-12 342 -12 219		-9 070 -8 979
	CH4	-
	N2O	-
	Other	-
D) Cumulative effect	CO2	-4 374 -4 329	-14 471 -14 325	-23 744 -23 505	-33 010 -32 678	-45 352 -44 897		-226 752 -224 477
	CH4	-
	N2O	-
	Other	-

a) Includes indirect GHG leakages.

F. Additionally 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	815.000
Grant from NUTEK for technical assistance	120.000

1 USD = 7.50 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.

Technology transfer through co-operation between foreign supplier and local partner
Conferences, seminars, documentation and training.

iv) Stimulate "net-working" for the exchange or 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.

The following up group for testing and adjustment of converted boilers has been formed in Lithuanian Energy Institute. Personnel of Heat-Equipment Research and Testing Laboratory is carrying out following up procedures keeping a close relation with and AF Energikonsult company as the main supervisor of conversion projects supported by STEM.

The local company "Kazlu Rudos Metalas" with participation of Swedish company "Hotab" mainly performed the execution of these biofuel conversion projects.

iii) Personal from boiler plant has been invited to different seminars and workshops, documentation for training has been handed over.

There were arranged three seminars through close co-operation between STEM and LEI:

/Environmentally Friendly Energy Systems in the Baltic and Eastern Europe Countries/ (Seminar), Kaunas, 21-22 March, 1995

/Environmentally Adapted Energy Systems in the Baltic Region and Eastern Europe/ (Seminar), Birzai, 19-20 November, 1998.

/Environmentally-Adapted Local Energy Systems /(Seminar and book presentation), Druskininkai, 21 November, 1998.

Translation and preparation of safe operation regulations for wood waste burning boiler houses.

This job was supported by STEM.

Association "Bioenergy and energy saving" has been founded at the end of 1997 to co-ordinate the attempts of wood firing equipment producers, wood wastes suppliers and owners of boiler plants.

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organisation1)

Development (DEV) /

enhancement (ENH)

Describe briefly

AB "Kazlu Rudos Metalas"

AB "Umega"

AB "Kazlu Rudos Metalas"

AB "Singaras"

AB "Menranga"

AB "Germeta"

DEV

ENH

New biofuel firing technology was developed. Experience in installation and maintenance of modern western technology.

The new modern equipment for production pellets from wood dust were developed as demand for other wood fuel kinds increased

The straw burning technology was started to spread as continuation of successfully realized biofuel conversion projects.

Many smaller boiler conversion projects were successfully finished in Lithuania by local companies AB "Kazlu Rudos Metalas", AB "Singaras", AB "Elhamers" during past five years. The implementation of these projects was initiated by the successfully realized STEM projects.

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

H. Additio

A. Description of project

1) Title of project: Vienybe, Boiler Conversion Project

2) Participants/actors:

Item	Financier/Reporter	Co-reporter
Name of organisation(a):	Statens energimyndighet	Aplinkos Ministerija
Name of organisation (English):	Swedish National Energy Administration	Ministry of Environment
Department:	Secretariat for Climate Policy and International Co-operation	Environmental Quality Department
Acronym:	STEM	AM
Acronym (English):	STEM	MoE
Function within activity:	Assigned by the Swedish Government for implementation including financing arrangements.	Assigned by the Lithuanian Government for activities implemented jointly
Street:	Kungsgatan 43	Jakšto 4
Post code:	BOX 310, S-631 04	LT-2600
City:	Eskilstuna	Vilnius
Country:	Sweden	Lithuania
Telephone:	+46-16 544 20 00	+370-2 61 90 49
Fax:	+46-16 544 22 64	+370-2-22 08 47
E-mail:	klas.tennberg@stem.se	atm@nt.gamta.lt
WWW-URL:	http://www.stem.se	http://www.gamta.lt
Contact person (for this activity):	-------------------------------------	-------------------------------------
Surname:	Knutsson	Bilkis
First name, middle name:	Gudrun	Mindaugas
Job title:	Head of Section, Climate Investment Programme	Director of Environmental Quality Dept.
Direct tel:	+46-16 544 20 72	+370-2-61 90 49
Direct fax:	+46-16 544 22 64	+370-2-22 08 47
Direct E-mail:	gudrun.knutsson@stem.se	atm@nt.gamta.lt

	Borrower
Name of organisation(a):	AB "Vienybe"
Name of organisation (English):	Joint Stock Company "Vienybe"
Department:
Acronym:
Acronym (English):
Function within activity:	Borrower
Street:	Kauno 120
Post code:	4120
City:	Ukmerge
Country:	Lithuania
Telephone:	+370 11 63 207
Fax:	+370 11 63 544
E-mail:	vienybe@vienybe.lt
WWW-URL:	www.vienybe.lt
Contact person (for this activity):
Surname:	GRIBACIAUSKAS
First name, middle name:	ARTURAS
Job title:	Director
Direct tel:	+370 11 63 663
Direct fax:	+370 11 63 544
Direct E-mail:	vienybe@vienybe.lt

Item	Please fill in if applicable	Please fill in if applicable
Name of organization(a):	Lietuvos energetikos institutas	ÅF Energikonsult Syd AB
Name of organization (English):	Lithuanian Energy Institute
Department:	Heat-Equipment Research and Testing Laboratory	AF - International AB
Acronym:	LEI	ÅFE
Acronym (English):	LEI	AFE
Function within activity:	Local reporter Responsible for the measuring and collecting results for EAES-reporting.	Technical support
Street:	Breslaujos 3	Stensjögatan 3
Post code:	LT 3035	S-217 65
City:	Kaunas	MALMÖ
Country:	Lithuania	SWEDEN
Telephone:	+ 370 (7) 45 34 95, 40 16 83	+46-40-37 50 00
Fax:	+ 370 (7) 35 12 71	+46-40-13 03 69
E-mail:	testlab@isag.lei.lt
WWW-URL:	http://www.lei.lt	http://www.af.se
Contact person (for this activity):	-------------------------------------	-------------------------------------
Surname:	Pedisius	Mårtensson
First name, middle name:	Nerijus	Roland
Job title:	Senior Research Associate	project leader
Direct tel:	+ 370 (7) 40 16 84	+46-40-37 51 04
Direct fax:	+ 370 (7) 35 12 71	+46-40-13 03 69
Direct E-mail:	nerijus@isag.lei.lt	rmn@ens.af.se

3) Activity:

Item	Please fill in if applicable
General description:	Ukmerge is a small town with 30 000 inhabitants approximately 70 km north of Vilnius. Vienybe Joint Stock Company is a privately owned metal industry company in Ukmerge. The company's heating plant is the supplier of heat to its own facilities only. There were plans to deliver heat to other industries and an adjacent residential area at the project start but unfortunately those plans have not been realised. The plant has five gas or mazut-fired boilers, three DKVR 10, one DKVR 20 and one DE 16 boiler. Annual energy production was estimated about 50 000 MWh at the initial stage of the project.
Type of project:a)	Fuel switching to renewable
Location (exact, e.g. city, region, state):	Ukmerge town Ukmerge District LITHUANIA
Activity starting date:	31 March 1995 (Letter of Intent)
In operation from:	April 1996
Expected activity ending date:	30 September 2005
Stage of activity:b)	Complete
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)	One of the DKVR 10-13 boilers has been converted to wood chips firing with an estimated power output of 6 MW and an annual heat production of around 38 000 MWh.

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.

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) Plant 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 – 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		Vienybe BC	1996	1997	1998	1999	2000
			0	1	2	3	4
	Investment	1. Loan/debt to STEM	465100	528200	507500	518511	524048
		2. Added costs	36700	26400	12300	11011	5537
		3.Technical assistance	64000	0	0	0	0
	AIJ/JI	4. Follow up	0	8500	2200	2267	2139
A. Sweden	costs	5. Reporting costs	0	851	0	744	301
		6. Administration	40000	0	0	0	0
		7. Difference in interest	4%	21128	20300	20740	20962
		8.Accum. costs for AIJ/JI	104000	134479	156979	180731	204133
		9.Total costs	605800	662679	664479	699241	728181
	Investment	1. Investment/Instalment	0	0	33000	0	0
2. Lithuania	AIJ/JI	2. Reporting costs	0	0	0	0	0
	costs	3. Other costs	0	0	0	0	0
		4. Accum. costs for AIJ/JI	0	0	0	0	0
		5. Total costs	0	0	33000	33000	33000
1 USD=	10	SEK

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organizations involveda):

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

B. Governmental acceptance, approval or endorsement

1) For the activity:

* Subsequent reports:

Fourth report.

This report is a joint report:

Yes, Endorsement letter was submitted 2001.

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

Yes, Agreement with Lithuanian Ministry of the Environment was signed on March 2000.

Activity. The scope of work of this agreement consist of collection basic data, examination project possibilities, engineering, supervision, inspection, local investigations, preparation reports. 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 with the following objectives in the Lithuanian energy sector:

- to reduce the energy intensity

- to reduce dependence on fuel imports

- to create new working places

- to involve the local companies into production of equipment for new firing technology

- to create and improve energy infrastructure based on indigenous energy resources

- to utilize the existing energy production capacity efficiently

- to reduce of fossil fuel consumption which results in emission reduction and currency saving

- to develop cooperation between Baltic, Nordic and other Central European countries

D. Benefits derived from the activities implemented jointly project

Item	Please fill in
Describe environmental benefits in detail:	Annual emissions reduction: Projected 2000 7 278 ton CO₂ 1 657 ton CO₂ 8 984* 2 045 6 208 1 413 10 ton SO₂ 2 ton SO₂ 1 ton NO_x 0 ton NO_x Improved sivilculture Lower pollution in district
Do quantitative data exist for evaluation of environmental benefits?	No.
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?	No.
Describe economic benefits in detail:	Decreased fuel costs approx. 3.5 USD/MWh.
Do quantitative data exist for evaluation of economic benefits?	Yes. Collected by LEI experts since 1997 and updated every year.

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.

Calculation methods are being revised and 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:

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 = 1996	Year 2 = 1997	Year 3 = 1998	Year 4 = 1999	Year 5 = 2000	...	Year 15
Planned energy production MWh/year Biofuel Natural gas		38 000 12 000	38 000 12 000	38 000 12 000	38 000 12 000	38 000 12 000		38 000 12 000
Planned annual fuel consumption MWh/year Biofuel Natural gas		47 500 14 118	47 500 14 118	47 500 14 118	47 500 14 118	47 500 14 118		47 500 14 118
A) Project baseline scenario	CO2	9 576 11 821* 8 168	9 576 11 821 8 168	9 576 11 821 8 168	9 576 11 821 8 168	9 576 11 821 8 168		9 576 11 821 8 168
	CH4	-
	N2O	-
	other	-
B) Project activity scenarioa)	CO2	2 298 2 837 1 960	2 298 2 837 1 960	2 298 2 837 1 960	2 298 2 837 1 960	2 298 2 837 1 960		2 298 2 837 1 960
	CH4	-
	N2O	-
	other	-
C) Effect ( B-A )	CO2	-7 278 -8 984 -6 208	-7 278 -8 984 -6 208	-7 278 -8 984 -6 208	-7 278 -8 984 -6 208	-7 278 -8 984 -6 208		-7 278 -8 984 -6 208
	CH4	-
	N2O	-
	Other	-
D) Cumulative effect	CO2	-7 278 -8 984 -6 208	-14 556 -17 968 -12 416	-21 834 -26 952 -18 624	-29 112 -35 936 -24 832	-36 390 -44 920 -31 040		-109 170 -134 760 -93 120
	CH4
	N2O
	Other

*The data in black colour are calculated using the programme provided by ÅF Energikonsult Syd AB. The net calorific value of natural gas – 11,6 MWh/t used in this programme.

The data in red colour presented in this table are calculated according to formulas and discounting values from DNV "Multi-Project Verification of 31 Swedish-Baltic AIJ Projects" report. The net calorific value of natural gas – 9,35 MWh/t. Almost all recommendations and remarks from DNV "Multi-Project Verification of 31 Swedish-Baltic AIJ Projects" report are involved in these calculations.

The data in blue colour are calculated using the programme provided by ÅF Energikonsult Syd AB and the real net calorific value of natural gas in Lithuania - 13,6 MWh/t.

Summary table: Actual emission reductions:

	GHG	Year 1 = 1996	Year 2 = 1997	Year 3 = 1998	Year 4 = 1999	Year 5 = 2000	...	Year 15
Factual energy production, MWh/year Biofuel Natural gas		12 130	11 960	11 800	10 310	8650		10 970
Factual annual fuel consumption, MWh/year Biofuel Natural gas		15 163	14 950	14 750	12 888	10 813		13 713
A) Project baseline scenario	CO2	2 323 2 868* 1 981	2 291 2 827 1 954	2 260 2 790 1 928	1 975 2 437 1 684	1 657 2 045 1 413		2 101 2 593 1 792
	CH4	-
	N2O	-
	other	-
B) Project activity scenarioa)	CO2	0	0	0	0	0		0
	CH4	-
	N2O	-
	other	-
C) Effect ( B-A )	CO2	-2 323 -2 868 -1 981	-2 291 -2 827 -1 954	-2 260 -2 790 -1 928	-1 975 -2 437 -1 684	-1 657 -2 045 -1 413		-2 101 -2 593 -1 792
	CH4	-
	N2O	-
	Other	-
D) Cumulative effect	CO2	-2 323 -2 868 -1 981	-4 614 -5 695 -3 935	-6 874 -8 485 -5 863	-8 849 -10 922 -7 547	-10 506 -12 967 -8 960		-31 516 -38 897 -26 880
	CH4	-
	N2O	-
	Other	-

Includes indirect GHG leakage.
The converted boiler house has concentrated on bio-fuel firing, remaining load have been produced in the central boiler house ( net are connected ). Therefore gas have been used to calculate reductions.
Ongoing work aim to increase the load on the converted boiler and for that reason future production is estimated tat 35 000 MW/h, real baseline figures used for year 1is not available.

*The data in black colour are calculated using the programme provided by ÅF Energikonsult Syd AB. The net calorific value of natural gas – 11,6 MWh/t used in this programme.

The data in blue colour are calculated using the programme provided by ÅF Energikonsult Syd AB and the real net calorific value of natural gas in Lithuania - 13,6 MWh/t.

F. Additionally 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	660.000
Grant from NUTEK for technical assistance	85.000

1 USD = 7.50 SEK

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.

Technology transfer through cooperation between foreign supplier and local partner
Conferences, seminars, documentation and training.

iv) Stimulate "net-working" for the exchange or 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.

The local company "Kazlu Rudos Metalas" with participation of the Swedish company "Hotab" mainly performed the execution of these biofuel conversion projects.

iii) Personal from boiler plant has been invited to different seminars and workshops, documentation for training has been handed over.

There were arranged three seminars through close cooperation between STEM and LEI:

/Environmentally Friendly Energy Systems in the Baltic and Eastern Europe Countries/ (Seminar), Kaunas, 21-22 March, 1995

/Environmentally Adapted Energy Systems in the Baltic Region and Eastern Europe/ (Seminar), Birzai, 19-20 November 1998.

/Environmentally-Adapted Local Energy Systems /(Seminar and book presentation), Druskininkai, 21 November 1998.

Translation and preparation of operation and safety regulations for wood waste burning boiler houses.

This job was supported by STEM.

Association "Bio energy and energy saving" has been founded at the end of 1997 to coordinate the attempts of wood firing equipment producers, wood wastes suppliers and owners of boiler plants.

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organisation1)

Development (DEV) /

enhancement (ENH)

Describe briefly

AB "Kazlu Rudos Metalas"

AB "Umega"

AB "Kazlu Rudos Metalas"

AB "Singaras"

AB "Menranga"

AB "Germeta"

DEV

ENH

New biofuel firing technology was developed. Experience in installation and maintenance of modern western technology.

The new modern equipment for production pellets from wood dust were developed as demand for other wood fuel kinds increased

The straw burning technology was started to spread as continuation of successfully realized biofuel conversion projects.

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

1) Any practical experience gained:

2) Technical difficulties: There were problems with combustion when the fuel, 100% saw dust, had too much moisture at the initial stage of biofuel boiler operation.

3) Effects encountered: Execution of biofuel conversion projects according to STEM JI programme caused the activity in the following fields:

Production of pre-furnaces and small wood fired boilers by local companies;
Formation a new policy as respect to cleaning the forests and using the wood wastes or preparation of wood fuel by the forest industries/administrations;
Research and testing the new equipment, execution of the following up activity, training of the local staff etc.

Impacts encountered: The fuel price has proven to be lower because sawmill-waste resources were higher than expected.
Other obstacles encountered: Personal training in different boiler plants in the Baltic States had good effects on knowledge of the personal.

The heat production decreased in 2000 due to the higher average ambient temperature in 2000 (October-December) heating season, energy saving measures and conversion steam boiler to hot water.

6) Other: It is possible to increase the load in the boiler house in the future by increasing production capacities.

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

1) Any practical experience gained: The project has a good demonstration effect. The boiler house staffs have actively participated in the rebuilding and have a great part in the positive result.

2) Technical difficulties: Low quality of hydraulic cylinder.

3) Effects encountered: Execution of biofuel conversion projects according to STEM JI programme caused the activity in the following fields:

Production of pre-furnaces and small wood fired boilers by local companies;
Formation of a new policy with respect to cleaning the forests and using the wood wastes or preparation of wood fuel by the forestry industries/administrations;
Research and testing the new equipment, execution of the following up activity, training of the local staff etc.

Impacts encountered: The shortage of biofuel in local region was the main problem in 1997-1998. The energy production price from wood waste increased from 12 Lt/MWh in 1997 to 23 Lt/m³ in 1998 and sometimes in wintertime it reached 28 Lt/m³.

At the same time the energy production price from mazout decreased from 43,65 Lt/MWh in 1997 to 31,75 Lt/MWh.

5) Other obstacles encountered: The main unsolved problem for this boiler house is the assurance of full load during the heating season and as much as possible during the summer time. The yearly heat production decreased from 82972 MWh in 1997 to 72460 MWh in 1999 and to 64951 MWh in 2000 respectively.

Two main reasons have influenced in decrease of heat production in 1999 and 2000:

Warm winter, higher average ambient temperature during 1999 and 2000 heating season;
Energy saving measures, heat meters, were installed in all houses, so inhabitants have possibility to reduce heat consumption according the their needs and capacities.

The heat production from biofuel boiler increased from 28 202 MWh in 1999 up to 37 565 MWh in 2000.

6) Other: There is a possibil

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