Agro-Biomass and Woody Biomass Potential and Logistics Study for the City of Šabac
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Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Development of a Sustainable Bioenergy Market in Serbia (DKTI) AGRO-BIOMASS AND WOODY BIOMASS POTENTIAL AND LOGISTICS STUDY FOR THE CITY OF ŠABAC PREPARED BY: Milan Malidzan, B.Sc. Economics Slavisa Vitorovic, B.Sc. Mechanical Engineering November, 2016 GIZ DKTI Programme ‘Development of sustainable bioenergy market in Serbia’: Agro-biomass and wood biomass potential and logistics study for the City of Šabac Contents 1. Definition of Tasks ..................................................................................................... 6 2. Methodology applied .................................................................................................. 7 3. Executive Summary ................................................................................................... 8 4. Mačva District ............................................................................................................ 9 5. Srem District ............................................................................................................ 13 6. Biomass potentials and realistic biomass supply ...................................................... 14 6.1 Specification of relevant biomass types in Mačva and Srem Districts ..................... 14 6.1.1 Agricultural land and production of most important crops .................................... 14 6.1.2. Forests and resources of wood ...................................................................... 16 7. Determination of realistic biomass supply ................................................................ 17 7.1. Agricultural residues .............................................................................................. 17 7.2 Wood based biomass ............................................................................................. 18 7.3 Other sources of woody biomass: fruit pruning and municipal waste biomass ........ 20 8. Biomass demand for two types of biomass plants .................................................... 23 8.1 Biomass demand for the Šabac heating plant (heat only production) ..................... 23 8.2 Biomass demand for the Šabac CHP plant ............................................................ 23 9. Biomass supply and logistics ................................................................................... 25 9.1 Biomass market situation in the Districts of Mačva and Srem ................................ 25 9.2 Identification of potential supplies and their potentials and propensity for supply ... 28 9.3 Technical requirements and machinery necessary for sustainable biomass supply 30 9.4 Supply chain management ..................................................................................... 33 10. Different biomass preparation and take-in systems ................................................ 35 10.1 Biomass storage .................................................................................................. 36 10.2 Overview on technology and machinery used in biomass harvest and logistic chains .......................................................................................................................... 38 11. Legal aspects related to biomass utilization ........................................................... 40 12. Financial analysis and economic indicators of biomass supply organization and financing options .......................................................................................................... 43 12.1 Investments in machinery, equipment, storage, quality control .......................... 43 12.2 Operational costs .............................................................................................. 43 12.3 Economic indicators .......................................................................................... 44 12.4 Financing options for biomass suppliers ............................................................ 46 13. Conclusion and recommendations ......................................................................... 48 2 GIZ DKTI Programme ‘Development of sustainable bioenergy market in Serbia’: Agro-biomass and wood biomass potential and logistics study for the City of Šabac 14. List of interviewed stakeholders ............................................................................. 49 15. Literature ................................................................................................................ 50 3 GIZ DKTI Programme ‘Development of sustainable bioenergy market in Serbia’: Agro-biomass and wood biomass potential and logistics study for the City of Šabac List of Tables Table 1: Road distance of Šabac to neighbouring cities in km ............................................. 11 Table 2: Data on agricultural land in Mačva and Srem Districts ........................................... 14 Table 3: Production of crops in Mačva and Srem Districts................................................... 15 Table 4: Forest area in Mačva and Srem Districts ............................................................... 16 Table 5: Available Agro-biomass residuals at the Šabac area ............................................. 18 Table 6: Prices of woody biomass at LC ‘Sremska Mitrovica’- Klenak ................................. 20 Table 7: Heating value of harvesting residues ..................................................................... 23 Table 8: Potential suppliers of straw in the Šabac area ....................................................... 28 Table 9: Number of straw balers according to fuel demand of the plant .............................. 33 Table 10: Machinery necessary for biomass mobilization .................................................... 39 Table 11: Annual operational costs of straw supplier........................................................... 43 Table 12: Income of straw delivery (delivered at the plant site) ........................................... 44 Table 13: Economic indicators ............................................................................................ 44 Table 14: Sensitivity analysis (CHP) ................................................................................... 45 Table 15: Sensitivity analysis (HoB) .................................................................................... 46 Table 16: List of interviewed stakeholders ........................................................................... 49 List of Figures Figure 1: Administrative districts of the Republic of Serbia......................................................9 Figure 2: Settlements of the Mačva District...........................................................................10 Figure 3: Traffic connections of the Šabac area....................................................................11 Figure 4: Location of the boiler room ‘Janko Veselinovic’ .....................................................12 Figure 5: Settlements of the Srem District ............................................................................13 Figure 6: Potential biomass supply zones in the Šabac are..................................................17 Figure 7: Locations of terminals owned by Victoria Group for collecting straw in the Srem District ...............................................................................................................................................27 4 GIZ DKTI Programme ‘Development of sustainable bioenergy market in Serbia’: Agro-biomass and wood biomass potential and logistics study for the City of Šabac List of Abbreviations AP Autonomous Province Ag Agriculture BMZ German Federal Ministry for Economic Cooperation and Development CBR Cost Benefit Ratio CC Constitutional Court CHP Combined Heat and Power DKTI German Climate Technology Initiative € EUR el Electrical EU European Union FRY Federal Republic of Yugoslavia GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit ha Hectare HoB Heat Only Boiler IPARD Instrument for Pre-Accession Rural Development IRR Internal Rate of Return JSC Joint Stock Company km Kilometer kg kilogram kWh Kilowatt-hour LLC Limited Liability Company LC Lumber Camp m Meter MJ Mega joule MW Megawatt No Number NPV Net Present Value PC Public Company PPP Public- Private Partnership PUC Public Utility Company RS Republic of Serbia t Ton th Thermal 5 GIZ DKTI Programme ‘Development of sustainable bioenergy market in Serbia’: Agro-biomass and wood biomass potential and logistics study for the City of Šabac 1. Definition of Tasks Development of Agro-biomass and woody biomass potential and logistics study for Šabac is supported by the Programme ‘Development of a Sustainable Bioenergy Market in Serbia’, funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) under the German Climate Technology Initiative (DKTI), and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The goal of the Study is determination of realistic agro-biomass and woody biomass potential in the region of the City of Šabac and provision of critical information and data for potential investors in biomass heating plant, which would be established in a form of a Public- Private Partnership with PUC ‘Toplana’, Šabac, as a Public Partner. Tasks and activities 1) Biomass potentials and realistic biomass supply • Specification of relevant biomass types in the Districts of Mačva and Srem • Agricultural residues • Wood based biomass • Municipal waste biomass