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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: Kazlu Ruda Boiler Conversion, 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):

AB Kazlu Rudos Metalas

Name of organisation (English):

AB Kazlu Rudos Metalas

Department:

Acronym:

KRM

Acronym (English):

KRM

Function within activity:

Borrower

Street:

Daukanto 19

Post code:

4500

City:

Kazlu Ruda, Marijampole district

Country:

Lithuania

Telephone:

+370 43 25 038

Fax:

+370 43 26 685

E-mail:

krm.market@perfo.lt

WWW-URL:

Contact person (for this activity):

Surname:

DAUGIALA

First name, middle name:

MECISLOVAS

Job title:

Director

Direct tel:

+370 43 25 038

Direct fax:

+370 43 26 685

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:

Kazlu Ruda is a small town close to Kaunas with several boiler plants and district heating networks. One boilerplant is owned by the public company Kazlu Rudos Metalas. Besides deliveries to the company's own buildings the plant supplies heat to the municipal district heating network. There were three DKVR 6,5-13 oilfired boilers with annual energy production about 12000 MWh.

Type of project:a)

Fuel switching to renewable

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

state):

Kazlu Ruda town

Marijampole District

LITHUANIA

Activity starting date:

1994-03-24 (Letter of Intent)

In operation from:

February 1995

Expected activity ending date:

30 September 2004

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 until 2009.

Technical data:d)

Conversion of an oil-fired DKVR 6.5-13 boiler to biofuels firing through installation of a pre-furnace. Automatic fuel storage and flue-gas cleaning are included in the project. The estimated power output after conversion is 3 MW, annual energy production 12 000 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 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

Kazlu Ruda

1995

1996

1997

1998

0

1

2

3

Investment

1. Loan/debt to STEM

312500

351500

321750

289750

2. Added costs

14500

24500

14125

28250

3.Technical assistance

61250

0

0

0

AIJ/JI

4. Follow up

0

10250

10625

2750

A. Sweden

costs

5. Reporting costs

0

0

1063

0

6. Administration

66250

0

0

0

7. Difference in interest

4%

14060

12870

11590

8.Accum. costs for AIJ/JI

127500

151810

176368

190708

9.Total costs

454500

503310

498118

480458

Investment

1. Investment/Instalment

0

0

43875

60250

2. Lithuania

AIJ/JI

2. Reporting costs

0

0

0

0

costs

3. Other costs

0

0

0

0

4. Accum. costs for AIJ/JI

0

0

0

0

5. Total costs

0

0

43875

104125

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 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.

  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 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:

Projected 1998

3897 ton CO2 1197 ton CO2

59 ton SO2 18 ton SO2

1 ton NOx - ton NOx

Sawmill waste will be used

Do quantitative data exist for evaluation of environmental benefits?

Yes. Collected by LEI experts since 1996 and updated every year.

Describe social/cultural benefits in detail:

More stable energy supply.

Improved working conditions, increased motivation

Do quantitative data exist for evaluation of social benefits?

No.

Describe economic benefits in detail:

Reduced fuel and energy production price

Through cooperation with the Swedish company the Kazlu Rudos Metalas has started boiler/prefurnace production which stands for about 50% of their income.

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 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

= 1995

Year 2

= 1996

Year 3

= 1997

Year 4

= 1998

...

Year 15

Planned energy production MWh/year

Biofuel

Mazout /light-oil

12 000

12 000

12 000

12 000

12 000

Planned annual fuel consumption MWh/year

Biofuel

Mazout/light oil

14 634

14 634

14 634

14 634

14 634

A) Project baseline scenario

CO2

3 897

3 897

3 897

3 897

3 897

CH4

N2O

other

B) Project activity scenarioa)

CO2

0

0

0

0

0

CH4

N2O

other

C) Effect ( B-A )

CO2

- 3897

- 3 897

- 3 897

- 3 897

- 3 897

CH4

N2O

Other

D) Cumulative effect

CO2

- 3 897

- 7 794

- 11 691

- 15 588

- 58 455

CH4

N2O

Other

  1. Includes indirect GHG leakages.

Summary table: Actual emission reductions :

GHG

Year 1

= 1995

Year 2

=1996

Year 3

=1997

Year 4

=1998

...

Year 15

Factual energy production MWh/year

Biofuel

Mazout /light-oil

4 290

5 780

4 107

3 686

3 686

Factual annual fuel consumption

MWh/year

Biofuel

Mazout/light oil

5 232

7 049

5 009

4 495

4 495

A) Project baseline scenario

CO2

1 393

1 877

1 334

1 197

1 197

CH4

-

-

N2O

-

-

other

-

-

B) Project activity scenarioa)

CO2

0

0

0

0

0

CH4

-

-

N2O

-

-

other

-

-

C) Effect ( B-A )

CO2

-1 393

-1 877

-1 334

-1 197

-1 197

CH4

-

-

N2O

-

-

Other

-

-

D) Cumulative effect

CO2

-1 393

-3 270

-4 604

-5 801

-18 968

CH4

-

-

N2O

-

-

Other

-

-

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

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

335.000

Grant from NUTEK for technical assistance

65.000

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

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

iii) Personal from boilerplant has been invited to different seminars and work-shops, documentation for training has been handed ower.

There were aranged 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 safe operation 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 developped. Experience in installation and exploitation of modern western technology.

The straw burning technology has been started to spread as continuation of successfully realized bioconversion 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

1) Any practical experience gained: KRM have started a co-operation with the Swedish company Hotab, working with boiler reconstruction.

KRM is working with information and development of new technique in the bio fuel area.

2) Technical difficulties: No.

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

- production of prefurnaces 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 forestries;

- research and testing the new equipment, execution of the following up activity, training the local personnel and etc.

Impacts encountered: Competition between biofuel boiler houses in local region influenced increase of wood waste fuel price. The wood waste fuel price increased from 20,35 Lt/m3 in 1997 to 28,98 Lt/m3 in 1998.

At the same time the mazut prise decreased from 378 Lt/t in 1997 to 320 Lt/t.

5) Other obstacles encountered: Wood-fired boiler operated only during the heating season and didn’t operate in summer time 1998 for the lack of consumers. So the yearly heat production decreased from 5305 MWh in 1997 to 4500 MWh in 1998

Restrictions from the municipal council to deliver heat ( heat will not be delivered when medium temp is over 10 ° C ).

6) Other: There is a possibility to increase the load for the boilerhouse in the future.


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