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ACTIVITIES IMPLEMENTED JOINTLY(AIJ)
 

USIJI Uniform Reporting Document:

Activities Implemented Jointly Under the Pilot Phase

List of Projects

A. Description of project

1) Title of project: Ignalina biofuel conversion and district heating project, Lithuania.

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

dalia.s@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:

Senior officer

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 Vilniaus Silumos Tinklai

Name of organisation (English):

Joint Stock Company Vilniaus Silumos Tinklai,

Department:

Affiliate Ignalinos Silumos Tinklai

Acronym:

Acronym (English):

SPAB VST

Function within activity:

Borrower

Street:

Dariaus ir Gireno 65

Post code:

2038

City:

Vilnius

Country:

Lithuania

Telephone:

+370 2 63 25 20

Fax:

+370 2 26 44 61

E-mail:

WWW-URL:

Contact person (for this activity):

Surname:

BURBULIS

First name, middle name:

JONAS

Job title:

Deputy Director

Direct tel:

+370 2 63 25 20

Direct fax:

+370 2 26 44 61

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) 75 34 95

+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) 75 31 83

+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:

Ignalina, located in the north east part of Lithuania it is a city with abt.7500 inhabitants.

The town is situated in a nature reservation area and subject to strict environmental emission rules. Through this project it has been possible to concentrate the heat production to one new boiler house already built and to close down two old oil-fired boiler houses. The project also comprises improvement of the heat and hot water supply and distribution in the town. The annual energy production before conversion was 36 000 MWh. Heat production was earlier based on 40% light oil and 60 % heavy oil ( mazout ).

Type of project:a)

Energy efficiency and fuel switching

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

state):

Ignalina Town

Utena Region

Lithuania

Activity starting date:

1998-01-21 (Letter of intent)

In operation from:

April 1999

Expected activity ending date:

Loan expire date 2008-07

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 2023.

Technical data:d)

The new boiler is designed for 6 MW. Mazout will still be used in the boiler house for peak load and as reserve capacity. The project includes i.a. firing equipment, a basic fuel storage on ground (asphalt), fuel conveyor, flue gas cleaner (cyclone), civil works, buildings, control equipment, commissioning, training etc. A new pre-insulated pipeline has been installed to connect the networks as well as 30 new substations in buildings and block central. Annual heat after the new project is calculated to be provided through 25 000 MWh based on biofuels and 10 000 MWh on mazout. 1 000 MWh are calculated to be saved by the new substations. The emissions are calculated from the ultimate analysis of the assumed fuels.

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) 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

Ignalina BC & EE

1998

0

Investment

1. Loan/debt to STEM

1600000

2. Added costs

0

3.Technical assistance

137500

AIJ/JI

4. Follow up

0

A. Sweden

costs

5. Reporting costs

2500

6. Administration

33250

7. Difference in interest

4%

8.Accum. costs for AIJ/JI

173250

9.Total costs

1773250

Investment

1. Investment/Instalment

500000

2. Lithuania

AIJ/JI

2. Reporting costs

0

costs

3. Other costs

0

4. Accum. costs for AIJ/JI

0

5. Total costs

500000

1 USD=

8

SEK

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organizations 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 which 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.

1) For the activity:

  • * Subsequent reports:

Second report.

  1. This report is a joint report:
  • Yes, Endorsement letter was submitted 1998.

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

  • Yes, Agreement with Lithuanian Ministry of the Environment was signed on March 1999.

  • 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.

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 projects 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

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

8 443 ton CO2

128 ton SO2

3 ton NOx

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.

The boiler plant can use the waste from sawmills in neighbourhood. Wood fuel production will start and give more people work locally.

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?

No

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 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 0

=1997

Year 1

=1998*

Year 2

=1999

Year 3

=2000

Year …

Year 25

Planned energy production MWh/year

Biofuel

Mazout /light-oil

36 000

36 000

25 000

10 000

25 000

10 000

25 000

10 000

Planned annual fuel consumption MWh/year

Biofuel

Mazout/light oil

41 860

41 860

30 488

11 628

30 488

11 628

30 488

11 628

Estimated energy saving MWh/year

1000

1000

1000

A) Project baseline scenario

CO2

11 690

11 690

11 690

11 690

11 690

CH4

N2O

other

B) Project activity scenarioa)

CO2

11 690

11 690

3 247

3 247

3 247

CH4

N2O

other

C) Effect ( B-A )

CO2

0

0

-8 443

-8 443

-8 443

CH4

N2O

Other

D) Cumulative effect

CO2

0

0

-8 443

-16 886

-211 075

CH4

N2O

Other

  1. Includes indirect GHG leakages.

*The boiler is assumed to be in operation in autumn 1998. The first half of 1998 it is operated as baseline.

Summary table: Actual emission reductions :

GHG

Year 0

=1997

Year 1

=1998*

Year 2

=1999

Year 3

=2000

Year …

Year 25

Factual energy production MWh/year

Biofuel

Mazout /light-oil

36 000

36 000

25 000

10 000

25 000

10 000

25 000

10 000

Factual annual fuel consumption MWh/year

Biofuel

Mazout/light oil

41 860

41 860

30 488

11 628

30 488

11 628

30 488

11 628

Factual energy saving MWh/year

1000

1000

1000

A) Project baseline scenario

CO2

11 690

11 690

11 690

11 690

11 690

CH4

N2O

other

B) Project activity scenarioa)

CO2

11 690

11 690

3 247

3 247

3 247

CH4

N2O

other

C) Effect ( B-A )

CO2

0

0

-8 443

-8 443

-8 443

CH4

N2O

Other

D) Cumulative effect

CO2

0

0

-8 443

-16 886

-211 075

CH4

N2O

Other

a) Includes indirect GHG leakages.

*Calculated values since, the boiler is assumed to be in operation in autumn 1998. The first half of 1998 it is operated as baseline

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

1,600.000

Grant from NUTEK for technical assistans

100.000

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.

  1. Technology transfer through cooperation between foreign supplier and local partner
  2. 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

  1. 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 ÅF Energikonsult company as the main supervisor of conversion projects supported by STEM.

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

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 Europa Countries/ (Seminar), Kaunas, 21-22 March, 1995

/Environmentally Adapted Energy Systems in the Baltic Region and Eastern Europa/ (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.

  1. Association "Bioenergy 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 organization1)

Development (DEV) /

enhancement (ENH)

Describe briefly

AB "Kazlu Rudos Metalas"

AB "Umega"

AB "Kazlu Rudos Metalas"

AB "Kazlu Rudos Metalas"

AB "Singaras"

AB "Elhamers"

DEV

DEV

DEV

ENH

New biofuel firing technology has been developed. Experience in installation and exploitation of modern western technology.

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

The drum chippers and other machinery for wood fuel preparation have been developed as the market for such equipment appeared.

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 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: -
  2. Technical difficulties: -
  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 the local personnel and etc.

4) Impacts encountered:

5) Other obstacles encountered: The boiler house staff have actively participated in the rebuilding and have a great part in the positive result.

6) Other: The implementation of this biofuel conversion project will contribute to the creation further environmentally adapted energy systems in municipalities and regions.


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