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Potentials and Possibilities for the Commercial Use Of Potentials and possibilities for the commercial use of woody biomass for the production of energy and economic development of the municipalities of Nova Varoš, Priboj and Prijepolje UNIVERSITY OF BELGRADE FACULTY OF FORESTRY In cooperation with Ministry of Agriculture, Forestry and Water Management, Directorate for Forests and Country Office Serbia Project Name: Promoting Renewable Energy Sources at Local Level Study: Potentials and possibilities for the commercial use of woody biomass for the production energy and economic development of the municipalities of Nova Varoš, Priboj and Prijepolje Project Manager Head of Institute for Wood Processing Prof. Dr Branko Glavonjić Prof. Dr Branko Glavonjić DEAN OF THE FACULTY OF FORESTRY ___________________________ Prof. Dr Milan Medarević Belgrade, December 2009 -- 1 -- Potentials and possibilities for the commercial use of woody biomass for the production of energy and economic development of the municipalities of Nova Varoš, Priboj and Prijepolje C O N T E N T 1. INTRODUCTION, OBJECTIVE AND GOALS OF THE STUDY .......................................................... 7 1.1. Methodology used ................................................................................................................................ 8 2. GEOGRAPHIC POSITION AND GENERAL INDICATORS OF THE MUNICIPALITIES OF NOVA VAROŠ, PRIBOJ I PRIJEPOLJE ................................................................................................................... 9 3. CONDITION AND CHARACTERISTICS OF THE GROWING STOCK IN THE MUNICIPALITIES OF NOVA VAROŠ, PRIBO I PRIJEPOLJE ................................................................................................ 11 4. CONDITION AND CHARACTERISTICS OF WOOD PROCESSING COMPANIES IN THE MUNICIPALITIES OF NOVA VAROŠ, PRIBOJ AND PRIJEPOLJE ...................................................... 18 5. THE BALANCE OF PRODUCTION AND CONSUMPTION OF WOOD AND WOODY BIOMASS IN THE MUNICIPALITIES OF NOVA VAROŠ, PRIBOJ AND PRIJEPOLJE ........................................ 24 6. CONDITION AND BALANCE OF WOODY BIOMASS IN THE MUNICIPALITIES OF NOVA VAROŠ, PRIBOJ I PRIJEPOLJE ................................................................................................................. 34 7. ECONOMIC IMPACT OF THE USE OF WOODY BIOMASS IN THE MUNICIPALITIES OF NOVA VAROŠ, PRIBOJ AND PRIJEPOLJE .......................................................................................................... 38 7.1. Production systems and methods for establishing the price of woodchip .......................................... 45 7.1.1. Woodchip delivery, calculation and charging methods .................................................................. 47 7.2. Valorization of the wood residue from sawmill operations through production and sale of woodchips in the municipalities of Nova Varoš, Priboj and Prijepolje ..................................................... 49 8. THE CONCEPT OF SUPPLY AND USE OF WOODCHIPS IN INDIVIDUAL AND DISTRICT HEATING SYSTEMS IN THE MUNICIPALITIES OF NOVA VAROŠ, PRIBOJ AND PRIJEPOLJE .. 50 8.1. Model for supply and heating of individual facilities ......................................................................... 50 8.2. Model for supply and heating of districts or city parts ....................................................................... 51 8.3. Model for using woodchips for generating heat and power (cogeneration-CHP) .............................. 54 9. FINANCIAL SUPPORT FOR THE DEVELOPMENT OF A WOODY BIOMASS-BASED ENERGY MARKET (SUBSIDIES) .............................................................................................................................. 56 10. CONCLUSIONS AND RECOMMENDATIONS .................................................................................. 59 11. BIBLIOGRAPHY ................................................................................................................................... 64 -- 2 -- Potentials and possibilities for the commercial use of woody biomass for the production of energy and economic development of the municipalities of Nova Varoš, Priboj and Prijepolje General Data on the Study Name of the Project: Promoting Renewable Energy Sources at Local Level Project Contract no.: 337-00-450/09-10 Study Name: Potentials and Opportunities for the Commercial Use of Woody Biomass for the Production of Energy and Economic Development of the Municipalities of Nova Varoš, Priboj and Prijepolje Project Partners: 1. Ministry of Agriculture, Forestry and Water Management of the Republic of Serbia, Directorate for Forests 2. UNDP Country Office in Belgrade 3. Local self-government in Nova Varoš, Priboj and Prijepolje 4. University of Belgrade, Faculty of Forestry 5. PE Srbijašume, FE Prijepolje 6. Wood processing companies in the municipalities of Nova Varoš, Priboj and Prijepolje. Period of Development: April-Decembar 2009 Project Implementer: University of Belgrade, Faculty of Forestry, Institute for Wood Processing Project Manager: Prof. Dr Branko Glavonjić Project Consultants: 1. Slavica Petrović, MSc 2. Radmilo Savić, MScEng 3. Stana Radović, MScEng 4. Dušan Jović, MScEng 5. Predrag Sretenović, MScEng 6. Ljiljana Pajović, MScEcon The authors of the Study would like to thank Milan Baranc, Director of FE Prijepolje and engineers Aleksandar Šalipur and Zorica Radovanović-Popović from te Forest Adminsitration of Nova Varoš, Prijepolje-based company Jela, Zoran Spajić, BScEng, Director of FAP-Stan in Priboj, Čedomir Mišević, Energy Manager in the municipality of Nova Varoš and other companies and individuals in the local self- government who provided their valuable support to the field research conducted for the needs of this Study. -- 3 -- Potentials and possibilities for the commercial use of woody biomass for the production of energy and economic development of the municipalities of Nova Varoš, Priboj and Prijepolje General Documentation -- 4 -- Potentials and possibilities for the commercial use of woody biomass for the production of energy and economic development of the municipalities of Nova Varoš, Priboj and Prijepolje LIST OF TABLES Table 1. Surface area and population size in the municipalities of Nova Varoš, Priboj and Prijepolje Table 2. Population breakdown by education 2002 Table 3. Forest cover in municipalities Nova Varoš, Priboj and Prijepolje Table 4. Wood volume at the stump and annual volume increment in the municipalities of Nova Varoš, Priboj and Prijepolje Table 5. Wood volume at the stump and annual volume increment by tree species in the municipalities of Nova Varoš, Priboj i Prijepolje Table 6. Name and location of sawmills visited for the purpose of collecting data for the needs of this Study Table 7. Planned forest estate in the production-financial plan for 2009 in FE Prijepolje for state owned forests Table 8. Structure and quantity of wood assortments produced by the individidual forest administrations in FE Prijepolje in 2008 Table 9. Share of individual wood assortments and wood residues in the planned forest estate for state forests by forest administration in FE Prijepolje Table 10. Share of wood assortments and wood residues in the planned forest estate for private forests by forest estate for private forests in the individual forest administrations of FE Prijepolje Table 11. Balance of production and consumption of wood and woody biomass in the municipality of NovaVaroš Table 12. Balance of production and consumption of wood and woody biomass in the municipality of Priboj Table 13. Balance of production and consumption of wood and woody biomass in the municipality of Prijepolje Table 14. Aggregate balance of production and consumption of wood and woody biomass in the municipalities of Nova Varoš, Priboj i Prijepolje (region of South-West Serbia) Table 15. Stucture and size of forest and sawmill wood residue in the municipalities of Nova Varoš, Priboj i Prijepolje Table 16. Economic impact of sale of sawmill wood residue in the municipalities of Nova Varoš, Priboj i Prijepolje Table 17. Energy value of spruce/fir woodchips from Department 54 of Zlatar Estate Unit -Forest Administration of Nova Varoš Table 18. Energy potential of woody biomas from sawmill wood processing operations (coarse wood residue) in the municipalities of Nova Varoš, Priboj i Prijepolje Table 19. Energy potential of woody biomass from the forest (green woodchip) in the municipalities ofNova Varoš, Priboj i Prijepolje Table 20. Aggregate overview of available energy potential from the sawmill industry (coarse residue) and from forestry in the municipalities ofNova Varoš, Priboj i Prijepolje Table 21. Consumption by energy source and potentials of woody biomass energy in the municipalities ofNova Varoš, Priboj i Prijepolje Table 22. Comparative analysis of the use of heavy fuel oil and woodchips for the production of heating energy in the municipality of Nova Varoš Table 23. Greenhouse gas emissions (GHG) from combustion of heavy fuel oil in district heating systems of public importance in the municipalities of Nova Varoš i Priboj Table 24. Price of electric power generated from renewable energy sources expressed in euro cents per kilowatt-hour (c€/1 kWh) Table 25. Proposal for Government financial support (subsidies) for the development of woody biomass- based energy in Serbia -- 5 -- Potentials and possibilities for the commercial use of woody biomass for the production of energy and economic development of the municipalities of Nova Varoš, Priboj and Prijepolje LIST
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