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Pancevo Agro Biomass Supply Study, 2019

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Pancevo Agro Biomass Supply Study, 2019 AGRO-BIOMASS POTENTIAL AND LOGISTICS STUDY FOR SUPPLYING THE PUBLIC UTILITY COMPANY “GREJANJE-PANČEVO” Photos by Foragrobio cc doo © 2019 GIZ DKTI Prepared for: AMBERO Consulting Gesellschaft mbH and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH DKTI- Development of a Sustainable Bioenergy Market in Serbia Terazije 23/V 11000 Beograd Prepared by: Vojislav Milijić, Foragrobio cc doo Sumska 9-III/1, Subotica May 2019 _______________________________________________________________________________________________ DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Agro-Biomass Potential and Logistics Study for Supplying the Public Utility Company “Grejanje – Pančevo” ________________________________________________________________________________________________ Table of Contents List of tables List of figures List of charts List of abbreviations Table of Contents List of abbreviations.........................................................................................................................................3 1. Executive Summary .....................................................................................................................................4 2. Definition of Tasks........................................................................................................................................5 3. Methodology .................................................................................................................................................6 4. Status Quo Analysis – Background............................................................................................................7 4.1. City of Pančevo ..........................................................................................................................................7 4.2. Pančevo District Heating System ............................................................................................................8 5. Agro-Biomass Potentials and Realistic Agro-Biomass Supply for Pančevo .........................................9 6. Biomass Demand for District Heating Biomass Plant ........................................................................... 15 7. Biomass supply and logistics .................................................................................................................. 16 7.1. Biomass market situation in the supply area of Pančevo .................................................................. 16 7.2. Identification of potential supplies ....................................................................................................... 17 7.3. Technical requirements and machinery for sustainable biomass supply ....................................... 18 7.4. Supply chain management (contracting, delivery, quality control) .................................................. 22 8. Biomass storage, preparation and take-in systems and ash disposal ................................................ 25 8.1. Biomass storage ..................................................................................................................................... 25 8.2. Straw handling and preparation for combustion ................................................................................ 26 8.3. Ash handling ........................................................................................................................................... 27 9. Legal aspects related to biomass utilization .......................................................................................... 29 10. Financial analysis and economic indicators of biomass supply ....................................................... 31 10.1. Investment costs .................................................................................................................................. 31 10.2. Operational costs ................................................................................................................................. 31 10.3. Incomes ................................................................................................................................................. 31 10.4. Economic indicators (NPV, IRR, BCR, Sensitivity) ........................................................................... 32 10.5. Financing options for biomass suppliers .......................................................................................... 33 11. Conclusions ............................................................................................................................................. 35 12. Literature and Sources ........................................................................................................................... 36 13. Annexes .................................................................................................................................................... 37 13.1 Annex I: List of interviewed persons ................................................................................................... 37 List of Tables T-1: Basic information about the City of Pančevo .............................................................................................. 7 T-2: Basic info on the Pančevo DH system ........................................................................................................ 8 T-3: Relevant types of agro-biomass fuels ......................................................................................................... 9 T-4: Land structure in Pančevo Supply zones .................................................................................................. 12 T-5: Relevant crops’ structure in Pančevo Supply zones ................................................................................. 13 T-6: Production of Relevant crops in Pančevo Supply zones .......................................................................... 13 T-7: Collectable agricultural residues in big bale format in Pančevo supply zones ......................................... 14 T-8: Biomass demand for the Pančevo agro-biomass plants........................................................................... 15 T-9: Straw prices in Vojvodina .......................................................................................................................... 16 T-10: Straw suppliers in Vojvodina ................................................................................................................... 17 T-11: Period of straw collection and storing ..................................................................................................... 19 T-12: Basic straw supply calculation ................................................................................................................ 21 T-13: Number of balers ..................................................................................................................................... 22 T-14: Straw mobilization machinery and equipment prices .............................................................................. 22 T-15: Straw price correction factors .................................................................................................................. 24 T-16: Period of straw collection and storing ..................................................................................................... 25 T-17: Quantities and timing of straw delivery and consumption ....................................................................... 25 T-18: Nutrient content of different ash types from straw combustion ............................................................... 28 T-19: Regulation related to straw combustion .................................................................................................. 30 T-20: Investment costs ..................................................................................................................................... 31 T-21: Operational costs .................................................................................................................................... 31 Page 2 of 37 DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Agro-Biomass Potential and Logistics Study for Supplying the Public Utility Company “Grejanje – Pančevo” ________________________________________________________________________________________________ T-22: Incomes ................................................................................................................................................... 31 T-23: Costs, incomes, balance, IRR and BCR ................................................................................................. 32 List of Figures F-1: Position of Pančevo .................................................................................................................................... 7 F-2: Pančevo, DH plants Kotež and Sodara and potential locations for the biomass DH plant ........................ 8 F-3: Relevant types of agro-biomass fuels: wheat, soya, corn .......................................................................... 9 F-4: Map of Pančevo supply zones .................................................................................................................. 11 F-5: Raka Trans Straw Storage Locations and Straw Logistics Activities ........................................................ 18 F-6: Agro-biomass mobilization machinery in
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