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ACTIVITIES IMPLEMENTED JOINTLY(AIJ)
 

Uniform Reporting Format:

Activities Implemented Jointly Under the Pilot Phase

List of Projects

A. Description of project

1) Title of project: Conversion of boiler in Paldiski

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

WWW-URL:

http://www.stem.se

Contact person (for this activity):

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

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

Surname:

Knutsson

Kratovits

First name, middle name:

Gudrun

Andres

Job title:

Senior officer

Counsellor

Direct tel:

+46 16 544 20 72

+372 62 62 841

Direct fax:

+46 16 544 22 64

+372 62 62 845

Direct E-mail:

gudrun.knutsson@stem.se

andres@ekm.envir.ee

(* From 1 January, 1998, the new Swedish National Energy Administration has taken over the responsibility for the Programme for an Environmentally Adapted Energy System in the Baltic region and Eastern Europe (EAES Programme) from NUTEK (Swedish National Board for Industrial and Technical Development).

Borrower

Name of organisation(a):

AS Paldiski Soojus

Name of organisation (English):

Paldiski Soojus Ltd

Department:

Acronym:

Acronym (English):

Function within activity:

Project owner

Street:

Pakri 5

Post code:

76805

City:

Paldiski

Country:

ESTONIA

Telephone:

+372 6 741 165

Fax:

+372 6 741 319

E-mail:

WWW-URL:

Contact person (for this activity):

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

Surname:

Romanovskaja

First name, middle name:

Svetlana

Job title:

Manager

Direct tel:

+372 6 741 209

Direct fax:

Direct E-mail:

Item

Please fill in if applicable

Please fill in if applicable

Name of organization(a):

Võru Regionaalne Energiakeskus

Name of organization (English):

Regional Energy Centres in Estonia

Võru Regional Energy Centre

ÅF International AB

Department:

Acronym:

Võru REK

Acronym (English):

Võru REC

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 78 201 45

+46-40-37 50 00

Fax:

+372 78 201 45

+46-40-13 03 69

E-mail:

energikonsult@ens.af.se

WWW-URL:

http://www.af.se/ens/english/rec

http://www.af.se

Contact person (for this activity):

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

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

Surname:

Potter

Mårtensson

First name, middle name:

Elmu

Roland

Job title:

Consultant

Project leader

Direct tel:

+372 78 201 45

+46-40-37 51 04

Direct fax:

+372 78 201 45

+46-40-13 03 69

Direct E-mail:

elmu@regen.werro.ee

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:

Paldiski town is situated about 40 km west of Tallinn on a peninsula. In the former Soviet Union time it was a military town with a submarines harbour. At the present time the number of inhabitants is 4500. The heat is distributed from one boiler house. The heating system and distribution network was in extremely bad condition. The boiler house, firing mazout had old boilers witch could not be used for conversion. One new Russian DE 25-14 steam boiler has been installed for conversion and wood chips firing.

Type of project:a)

Fuel switching to biofuels

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

state):

Paldiski town

Harju County

Estonia

Activity starting date:

30. November 1994 (Letter of Intent)

In operation from:

March 1996

Expected activity ending 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)

An mazout fired DE 25-14 boiler has been converted to biofuels firing through installation a pre-furnace. Automatic fuel storage, wood chips handling system, flue gas cleaning equipment and ash handling system are included in the project.

Boiler type: DE 25-14 (steam)

Boiler output: 6 MW

Pre-furnace: Free standing with moving inclined grates

Flue gas cleaning: Multi-cyclone <300 mg/Nm3

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

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

Estimated heat production from the wood

fuel boiler: 25 000 MWh/year

Total production of the boiler plant: 35 000 MWh/year

a) For example, using Intergovernmental Panel on Climate Change (IPCC) classification: energy efficiency; renewable energy; fuel switching; forest preservation, restoration or reforestation; afforestation; fugitive gas capture; industrial processes; solvents; agriculture; waste disposal or bunker fuels.

b) Circle the appropriate option.

c) Methodological work will be required to define lifetime of activities.

  1. Methodological work will be required to determine for each type of activity what the minimum data requirements are.

The life time criteria has been arranged in different groups depending on type of implemented activities. This classification assumes a level of operation and maintenance which is normal

in western countries.

Lifetime of activity

Heat production plants (bio fuel)

25 years

New installation of all main equipment parts (fuel handling system, firing equipment and boiler) and modernisation of secondary equipment.

15 years

Conversion of existing boiler but new installation fuel handling system and firing equipment. Modernisation of secondary equipment.

10 years

Limited installation of new equipment (only one part of the three main parts, normally the firing equipment). Modernisation of other equipment.

Heat distribution systems and sub-stations

25 years

Pre-fabricated pipes and installations using certified contractors and supervisor according to EN norms and applicable district heating practise

15 years

Pre-fabricated pipes and installations without using certified contractors and supervisor

10 years

Modernisation of existing pipes.

Energy efficiency in buildings

25 years

Additional insulation roofs walls etc. with Scandinavian technology.

New installed heating systems.

15 years

Renovation and balancing of heating systems including thermostat valves.

10 years

Weather stripping windows, doors etc.

* if a combination of measures is done a reasonable lifetime for the project have to be calculated.

4) Cost (to the extent possible):

To the investment costs are referred the cost of the investment proper and the accumulated interest during the grace period, generally 2 years.

The AIJ/JI cost items are the costs for:

  • Technical assistance, a technical and administrative support from consultants, during the period from definition of the project till commissioning. These costs are paid by STEM.
  • Follow-up, an annual technical and economic follow-up by consultants, hired by STEM, of the operating results of the plant with the objective to improve on its techno-economic sustainability and its climate effect. The cost indicated is an average cost per project.
  • Reporting costs – i e costs in connection with the annual reporting of the project’s climate effects to UNFCCC. The cost indicated is an average cost per project.
  • Administration –Costs for seminars, handbooks, education (capacity building) and average costs of STEM staff per project.
  • Difference in interest rates. STEM applies for its loans generally an interest rate corresponding to 6-month STIBOR (Stockholm InterBank Rate, in April 1999 3,0 %). Assuming a normal lending rate of 7 % means that this loan is associated with a cost of 4 % in relation to normal lending rate.

Investment/instalment = the borrower’s possible own financing of the investment, followed by the borrower’s repayment of the loan.

All costs in USD

Country

Paldiski

1996

1997

1998

0

1

2

Investment

1. Loan/debt to STEM

725625

830381

869381

2. Added costs

68750

36006

39000

3.Technical assistance

71250

0

0

AIJ/JI

4. Follow up

0

10625

2750

A. Sweden

costs

5. Reporting costs

0

1063

0

6. Administration

50000

0

0

7. Difference in interest

4%

33215

34775

8.Accum. costs for AIJ/JI

121250

166153

203678

9.Total costs

915625

996534

1073059

Investment

1. Investment/Instalment

0

0

0

2. 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

0

0

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 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 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 and the Long-term Development Plan for the Estonian Fuel and Energy Sector:

- efficient 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.

- 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: 1998

9309 ton CO2 7305 ton CO2

142 ton SO2 112 ton SO2

4 ton Nox 3 ton NOx

Improved silviculture

Paldiski was until recently a Russian military base. The soil is heavily contaminated by oil spills which, absorbed with sawdust, the boiler plant can burn in wood chip boiler.

Do quantitative data exist for evaluation of environmental benefits?

No. Local measurements will be carried out later.

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

Describe economic benefits in detail:

Decreased fuel costs approx. 3.5 USD/MWh.

Do quantitative data exist for evaluation of economic benefits?

Yes. Some reports have been produced.

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 reduction s:

GHG

Year 1

=1996

Year 2

=1997

Year 2

=1998

...

Year 15

Planned energy production on biofuels MWh/year

19200

25000

25000

25000

A) Project baseline scenario

CO2

7149

9309

9309

9309

CH4

-

N2O

-

other

-

B) Project activity scenarioa)

CO2

0

0

0

0

CH4

-

N2O

-

other

-

C) Effect ( B-A )

CO2

-7149

-9309

-9309

-9309

CH4

-

N2O

-

Other

-

D) Cumulative effect

CO2

-7149

-16458

-25767

-137476

CH4

-

N2O

-

Other

-

a) Includes indirect GHG leakages.

Summary table: Actual emission reductions :

GHG

Year 1

= 1996

Year 2

= 1997

Year 2

= 1998

...

Year 15

Factual energy production on biofuels

14016

19594

19619

19619

A) Project baseline scenario

CO2

5219

7296

7305

78305

CH4

-

-

N2O

-

-

other

-

-

B) Project activity scenarioa)

CO2

0

0

0

0

CH4

-

-

N2O

-

-

other

-

-

C) Effect ( B-A )

CO2

-5219

-7296

-7305

-7305

CH4

-

-

-

N2O

-

-

-

Other

-

-

-

D) Cumulative effect

CO2

-5219

-12515

-19820

-107485

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

825.946 USD

Grant from NUTEK for technical assistans

75.211 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 NUTEKs 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 industrial projects;

Transferring of environmental issues to the local parties;

Transferring of knowledge in operation and maintenance issue.

  1. Personal from boiler plant has been invited to different seminars and work-shops 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 Aprill, 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

Paldiski Soojus

(DEV)

The boiler plant has got experience in handling biofuel equipment

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:

Good training and experience of the staff is necessary to operate biofuel boiler at full capacity. The motivation of the staff to learn is very important to get good results.

2) Technical difficulties:

3) Effects encountered:

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

Consulting support from both Swedish and Estonian side, also after commissioning.

4) Impacts encountered:

5) Other obstacles encountered:

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

6) Other:

The staff of the boiler house have participated very closely in the project.

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


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