Your location: Home


ACTIVITIES IMPLEMENTED JOINTLY(AIJ)

List of Projects

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

Annex I

A. Description of project

1) Title of project: Limbazi, Combined installation of a new biofuel fired boiler and

energy efficiency measures

2) Participants/actors:

Item Financier/Reporter Latvian co-reporter

Name of organisation(a):

Statens energimyndighet

Vides Aizsardzîbas un Regionâlâs Attîstîbas Ministrija

Name of organisation (English):

Swedish National Energy Administration

Ministry of Environmental Protection and Regional Development of the Republic of Latvia

Department:

Secretariat for Climate Policy and International Co-operation

Environmental Protection Department

Acronym:

STEM

VARAM

Acronym (English):

STEM

Function within activity:

Assigned by the Swedish Government for Implementation including financing arrangements.

Assigned by the Latvian Government for activities implemented jointly

Street:

Kungsgatan 43

Peldu Str. 25

Post code:

S-117 86

LV 1494

City:

Eskilstuna

Riga

Country:

Sweden

Latvia

Telephone:

+46 16 544 20 00

+371-7 026 508

Fax:

+46 16 544 22 64

+371-7 820 442

E-mail:

klas.tennberg@stem.se

erna@varam.gov.lv

WWW-URL:

http://www.stem.se

Contact person (for this activity):

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

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

Surname:

Knutsson

Apene

First name, middle name:

Gudrun

Ingrid

Job title:

Head of Section, Climate Investment Programme

Senior official

Direct tel:

+46 16 544 20 72

+371-7 026 508

Direct fax:

+46 16 544 22 64

+371-7 820 442

Direct E-mail:

gudrun.knutsson@stem.se

erna@varam.gov.lv

Borrower

Name of organisation(a):

Limbazu Pilsetas "Limbazu

Siltums" SIA

Name of organisation (English):

Limbazi town " Limbazu Siltums" Ltd

Department:

Acronym:

Acronym (English):

Function within activity:

Borrower

Street:

Sporta Street 10

Post code:

LV4000

City:

Limbazi

Country:

Latvia

Telephone:

+371-40-21 033

Fax:

+371-40-21 033

E-mail:

WWW-URL:

Contact person (for this activity):

Surname:

Tarakanovs

First name, middle name:

Valentins

Job title:

Director

Direct tel:

+371-9-357109

Direct fax:

+371 4021033

Direct E-mail:

Item Please fill in if applicable Please fill in if applicable

Name of organization(a):

EKODOMA

ÅF International

Name of organization (English):

EKODOMA

Department:

AF – International, Malmö

Acronym:

ÅFI

Acronym (English):

AFI

Function within activity:

Local reporter

Technical support

Street:

Noliktavas 3-3

Stensjögatan 3

Post code:

LV 1010

S-217 65

City:

Riga

MALMÖ

Country:

LATVIA

SWEDEN

Telephone:

+371-7 323212

+46-40-37 50 00

Fax:

+371-7 323210

+46-40-13 03 69

E-mail:

ekodoma@bkc.lv

WWW-URL:

http://www.ekodoma.lv

http://www.af.se

Contact person (for this activity):

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

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

Surname:

Blumberga

Lindgren

First name, middle name:

Andra

Ulf

Job title:

Directress

project leader

Direct tel:

+371 7 323212

+46-40-37 50 97

Direct fax:

+372-7 323210

+46-40-13 03 69

Direct E-mail:

andra@bkc.lv

Ulf.lindgren@pdn.af

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:

Limbazi is a middle-size town situated in north-west Latvia. There is one main network with two mazout fired boiler plants. One of the two is located in the middle of the town and shall be closed. A new boiler house just outside the town has been built. The annual heat production in the town is 37 700 MWh.

Type of project:a)

A new boiler plant for biofuels firing

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

state):

Limbazi town

Limbazi region

Latvia

Activity starting date:

August 18, 1997 (letter of Intent)

In operation from:

September 1998

Expected activity ending date:

Loan expire date 31 March 2007

Stage of activity:b)

completed

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 2022.

Technical data:d)

Installation of a new boiler plant fired with bio-fuels. The new boiler will have the capacity of 4 MW. Automatic fuel storage and flue gas cleaning equipment is also included in the project. A new pre-insulated pipeline will be installed to connect the boiler house with the network. The annual heat production amounts to 14 600 MWh from the bio boiler and 23 100 MWh from mazout.

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.

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

Limbazi BC

1998 1999 2000
0 1 2

Investment

1. Loan/debt to STEM

511000 590920 598922

2. Added costs

97574 11089 27725

3.Technical assistance

75000 0 0

AIJ/JI

4. Follow up

0 2267 2139

A. Sweden

Costs

5. Reporting costs

2000 744 301

6. Administration

31000 0 0

7. Difference in interest

4% 23636,8 23956,9

8.Accum. costs for AIJ/JI

108000 134648 161045

9.Total costs

716574 725567 759967

Investment

1. Investment/amortization

0 28743 19723

Latvia

AIJ/JI

2. Reporting costs

0 0 0

3. Other osts

0 0 0

Costs

4. Accum. costs for AIJ/JI

0 0 0

5. Total costs

0 28743 48466

1 USD=

10

SEK

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organizations involveda):

It s stated in agreement between STEM and Ministry of Environmental Protection and Regional Development of the Republic of Latvia that local organisation in Latvia, company EKODOMA is assigned for the data collection and evaluation of the climate effects of this project. After an initial work in cooperation with STEM’s assigned consultant, this local organisation would take the main responsibility the continued measuring for JI-reporting.

a) Please ensure that detailed contact information for all organizations 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:

Yes, Agreement with Latvian Ministry of Environmental Protection and Regional

Development was signed on March 1999. 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 Swedish side considers that the project meets the following objectives in the Latvian Energy Law:

- efficient use of energy resources;

  • creation and use of energy efficient technologies, fuel/energy consuming and diagnostic equipment, construction and insulation materials; energy flow metering and control devices, automated energy consumption control systems;

Latvia became a Party of the United nations Framework Convention on Climate Change (UNFCCC) in 1992.

In accordance with Kyoto Protocol to the UN FCCC on 10 December 1997, Latvia individually o jointly should ensure, that its aggregate anthropogenic CO2 equivalent emissions of CO2, CH4, N2O, HFCs, PFCs and SF6 in 2008 - 2012 should be 8% below the 1990 level.

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 based upon the 14,600 MWh of biofuels:

5,800 ton CO2

19 ton SO2

3.2 ton NOx

Boiler plant is firing sawmill waste which earlier was taken to forest

Do quantitative data exist for evaluation of environmental benefits?

Yes

Data collected by EKODOMA

Describe social/cultural benefits in detail:

More stable energy supply.

Improved working conditions, increased motivation.

The boiler plant can use the waste from sawmills in neighbourhood.

Improved trade balance.

Do quantitative data exist for evaluation of social benefits?

No

Describe economic benefits in detail:

Decreased fuel costs approx. 4 USD/MWh

Do quantitative data exist for evaluation of economic benefits?

Yes

Data collected by EKODOMA

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):

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.

The comparison below 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

=1998

Year 2

=1999

Year 3

=2000

...

Year 25

Energy production at plant based upon the baseline (MWh/year)

7,300

14,600

14,600

14,600

A) Project baseline scenario

CO2

2,900

5,800

5,800

5,800

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

-2,900

-5,800

-5,800

-5,800

CH4

N2O

Other

D) Cumulative effect

CO2

-2,900

-8,700

-14,500

-142,100

CH4

N2O

Other

  1. Includes indirect GHG leakages.

Summary table: Actual emission reductions:

GHG

Year 1

= 1998

Year 2

= 1999

Year 3

=2000

...

Year 25

Factual energy production on biofuels/ saved energy (MWh/year)

5350

14500

16390

15445*

A) Project baseline scenario

CO2

2130

5790

6550

6170*

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

-2130

-5790

-6550

-6170

CH4

N2O

Other

D) Cumulative effect

CO2

-2130

-7920

-14470

-154250

CH4

N2O

Other

  • * - average figure for previous full years of operation

a) Includes indirect GHG leakages. CO2 emission level is 0 because only produced energy on bio fuels is taken into account.

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/STEM

813 333 USD

Grant from NUTEK/STEM for technical assistance

86666 USD

Loan from the local bank

246000 USD

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 NUTEK/

STEMs 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"

i) technology transfer has taken place through NUTEK

/STEMs technical specialist support to the local project leader and municipality as well as boiler plant staff.

ii) local companies took part in the project implementation phase (ground works, building, civil engineering works), the main contractor for the equipment delivery has been the company Saxlund International AB (Sweden) and AS Tamult AS (Estonia)

iii) Special training courses for boiler house operators were arranged by the the main contractor on operation/maintenance of wood fuel burning plant. Translation of manuals and safety regulations for boiler

operation.

The staff from boiler plant has been invited to different seminars and workshops, documentation for training has been handed over. The following seminars in Latvia have been organized by support from STEM:

  • "Environmentally Adapted Energy Systems in Baltic States and Eastern Europe", Cesis, 23 November, 1994;
  • "Prospects for small boiler conversion to biofuel in Latvia", Rauna, March, 1996
  • "Possibilities for wood fuel utilization in Latvia", Broceni, 17 April, 1997;
  • "Waste wood for boiler houses", Liepa municipality, 5 June, 1998
  • presentation of book translated from Swedish to Latvian "Environmentally adapted local energy systems", author Niels Moe (STEM), seminars in Balvi, Jelgava, Saldus, 6-8 May, 1998

iv) Specialists of other boiler houses have visited the boiler plant, the staff has an exchange of experience with other boiler plants. The management was active in the "bio-club" established in 1994 and is now member of the Bioenergy Association. The association was founded in December 1998 with the support from STEM and is aimed at closer relations between the plant owners, municipalities, equipment suppliers and consultants.

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organization1)

Development (DEV) /

enhancement (ENH)

Describe briefly

Limbazi municipality

SIA BUVE

(DEV)

DEV

Municipality has now a new modern boiler house. The place is used as a good demonstration project.

New type of project for the local

civil engineering company.

1) Please ensure that detailed contact information for all organizations 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:

This is the first project where completely new boiler house has been constructed. Boiler house operators got new knowledge about burning of wood fuel. Place is used as demonstration plant.

  1. Technical difficulties:

Some social problems and resistance at the very first stage of the project, because many people were against the building of a new boiler house. After commissioning these people were proud of the new and clean heat source.

  1. Effects encountered:

The project realization gave:

  • reduced fuel costs;
  • improved environment;
  • new working places for fuel supply, and plant operation;
  • reduced dependence from the imported fuel;
  • better economy for the local regional level;
  • cooperation between Baltic and Nordic countries;
  • involvement of local companies for project implementation;
  • ideas for new fuel conversion projects.

4) Impacts encountered:

5) Other obstacles encountered:

6) Other: