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ACTIVITIES IMPLEMENTED JOINTLY(AIJ)

USIJI Uniform Reporting Document:

Activities Implemented Jointly Under the Pilot Phase

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.

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.

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 NO_x
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

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.

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 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.

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.

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 "Singaras"

AB "Elhamers"

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:

Any practical experience gained: -
Technical difficulties: -
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.