Geothermal Heating System in the City of Bijeljina

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Geothermal Heating System in the City of Bijeljina 1. PROJECT TITLE GEOTHERMAL HEATING SYSTEM IN THE CITY OF BIJELJINA 2. SECTOR Ecology 3. LOCATION City of Bijeljina 4. BRIEF PROJECT DESCRIPTION Geothermal potential of Bijeljina and its vicinity is outstanding. Geothermal gradient is one and a half times higher than the European continental average, and matches best European territories. Geothermal waters in the territory of the city of Bijeljina were discovered by accident in 1957, during petroleum explorations in this plain, specifically in the territory of the settlement of Dvorovi. In addition to the above borehole, four more holes were drilled in the territory of Bijeljina (Bijeljina, Dvorovi DV-1, Popovi, Ostojicevo) to discover rock massifs with thermal waters. At the exploration locations in Semberija, temperatures range between 60°C and 130°C, and estimated thermal capacities are equivalent of about 40 million tons of petroleum. A deeper analysis, at the preliminary design level, indicates a possibility for geothermal energy to be used for the entire heating system in Bijeljina (23,600 households + industry). The quantity of thermal waters necessary for these purposes is Т = 80°C, 850 l/s. Maximum heat power of a geothermal heating system for such a complete heating system is 280 МW. Geothermal water can also be used for electricity generation. Minimum electricity generation from this potential is 34,400 МW/h, while minimum capacity of the minimum obtained heating energy in the form of district heating is 75,000 МW/h. In addition to the above possibility for geothermal water to be used for city heating, it can also be used for medicinal and tourism purposes, as well as for heating agricultural areas. The City of Bijeljina Energy Plan, prepared by the European Center for Renewable Energy from Guessing, Austria, provides for the use of geothermal energy of hot water accumulated in limestones of Mesozoic age at depths from 1500 to 2500 m. Geothermal well for district heating of the city of Bijeljina implies performance of preparatory works, geophysical testing of prospective locations, preparation of technical documentation and drilling, piping and testing of a geothermal well for exploration and exploitation. 5. PROJECT DETAILS WHAT TYPE OF PROJECT IS IT? Public-private partnership PROJECT STATUS The City of Bijeljina Energy Plan and Bijeljina Area Geothermal Potentiality Study were prepared and, based on the presented geological structure of the terrain and data about the previously dug geothermal wells in this territory, asserted clearly the possibility to capture thermal water that can be used for district heating of buildings in Bijeljina. Geothermal energy is part of strategic documents of the city of Bijeljina (City of Bijeljina Development Strategy until 2023 and SEAP) REASONS TO INVEST IN THE PROJECT Data obtained by exploration provide economic justification of the investment: - Heated area (2013) 70,000 m²; - Revenue 1,282,680.00,00 BAM (heating season - 6 months); - In the first phase, the heated area would be expanded to 150,000 m² (of which 30,000 m² office buildings and 50,000 m² residential buildings) which would result in 1,880,400.00 BAM - Total revenue 3,163,080.00 BAM (1.6 million €) - Total energy costs (coal) amount to 600,000 BAM (about 300,000 €) - With the expected reduction of costs of heat energy production, generated profit would range about 1.3 million BAM annually. (0.67 million €) EXPECTED RETURN ON INVESTMENT IS PLANNED IN 8 YEARS, EXCLUDING INCENTIVES FOR RENEWABLE ENERGY SOURCE USE. 6. PROJECT FINANCING GIVE ESTIMATED PROJECT VALUE IN EURO Total: approx. 5.000.000 euro - Construction of a testing and exploitation borehole: 1.700.000 € - Construction of a drainage borehole: 650,000 € - Construction of a hot water network and installation of necessary equipment: 2.000.000 € - Construction works: 1.000.000 € PLANNED SOURCES OF FINANCING Public-private partnership INPUTS BY LOCAL PARTNER The city would provide locations and necessary construction permits. The entire existing hot water infrastructure would be put into operation. Commercial Project Application Form for Investor Search INPUTS BY INVESTOR Investment: boreholes, hot water network expansion. 7. HAS PHYSICAL LOCATION FOR PROJECT IMPLEMENTATION BEEN IDENTIFIED The exploration area for further hydrogeological exploring in the territory of the city of Bijeljina, aimed at establishing the presence of thermal waters in deep zones of the rock massif and potential for their exploitation and use, is located in the urban zone of the city of Bijeljina. In the urban zone of the city of Bijeljina three potential macro-locations of the exploration area were identified. In view of the high cost price of detailed hydrogeological explorations, the subject explorations can currently only be done on one location for economic reasons. In order to select potentially the most prospective macro-location in terms of presence of thermal waters in deep zones of the rock massif of the exploration area, as well as presence of a favorable structural composition of the rock massif to accommodate the accumulation segments of the water capture exploration and exploitation borehole facility, it is necessary to conduct previous geophysical explorations by applying the reflection seismology method. In addition to identifying the most prospective macro-location, the geophysical reflection seismology explorations to be conducted in the potential macro-locations of the exploration area would be aimed also at collecting other missing data about the lithostratigraphic and structural and tectonic characteristics of the rock massif and other information about the conditions of natural deposition of rock masses in the rock massif of the exploration area, which are of great importance as input data for the phase of preparation of a detailed hydrogeological explorations project. 8. HAVE THE ACTIVITIES ON PROJECT IMPLEMENTATION ALREADY STARTED The City of Bijeljina Energy Plan and Bijeljina Area Geothermal Potentiality Study were prepared and, based on the presented geological structure of the terrain and data about the previously dug geothermal wells in this territory, asserted clearly the possibility to capture thermal water that can be used for district heating of buildings in Bijeljina. 9. PROJECT APPLICANT AND CONTACT INFORMATION CITY ADMINISTRATION OF THE CITY OF BIJELJINA Office of the Mayor, Department for Local Economic Development and European Integration Trg Kralja Petra I Karadjordjevica 1 76 300 Bijeljina Phone: +387 55 233 132; +387 55 233 159 E-mail: [email protected] Commercial Project Application Form for Investor Search .
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