Study on Agro-Biomass Potentials and Logistics for Supplying Heat Only Production Senta And/Or Combined Heat and Power Production in Senta

STUDY ON AGRO-BIOMASS POTENTIALS AND LOGISTICS FOR SUPPLYING HEAT ONLY PRODUCTION SENTA AND/OR COMBINED HEAT AND POWER PRODUCTION IN SENTA

Prepared for:

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH DKTI- Development of a Sustainable Bioenergy Market in Serbia Bože Jankovića 39 11000 Beograd

Prepared by:

Vojislav Milijić, Foragrobio cc doo

Sumska 9-III/1, Subotica

July, 2016

______DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______Table of Contents List of tables List of figures List of charts List of abbreviations

Table of Contents 1. Executive summary ...... 5 2. Definition of tasks...... 6 3. Methodology ...... 7 4. Status Quo Analysis – Background...... 8 4.1. Municipality of Senta ...... 8 4.2. Senta District Heating System ...... 9 5. Biomass potentials and realistic biomass supply of Municipality of Senta ...... 11 5.1. Specification of relevant biomass types ...... 12 5.2. Agro-Biomass: Harvesting Residues ...... 13 5.3. Wood Biomass: Harvesting and Wood Industry Residues ...... 15 6. Biomass demand for two types of biomass plants ...... 17 6.1. Combined Heat and Power Plant ...... 17 6.2. Heat Only Production Plant ...... 17 7. Biomass supply and logistics ...... 19 7.1. Biomass market situation in Senta supply area ...... 19 7.2. Identification of potential supplies ...... 20 7.3. Technical requirements and machinery for sustainable biomass supply ...... 22 7.4. Supply chain management (contracting, delivery, quality control) ...... 28 8. Biomass storage, preparation and take-in systems and ash disposal ...... 31 8.1. Biomass storage ...... 31 8.2. Straw handling and preparation for combustion ...... 36 8.3. Ash handling ...... 37 9. Legal aspects related to biomass utilization ...... 39 10. Financial analysis and economic indicators of biomass supply ...... 41 10.1. Investment costs ...... 41 10.2. Operational costs ...... 41 10.3. Incomes ...... 42 10.4. Economic indicators (NPV, iRR, BCR, Sensitivity) ...... 42 10.4. Financing options for biomass suppliers ...... 44 11. Stakeholders analysis ...... 46 12. Conclusions ...... 48 13. Literature and Sources ...... 50 14. Annexes ...... 51 14.1 Annex I: List of interviewed persons ...... 51

List of Tables T-1: Basic information about Senta municipality ...... 9 T-2: Basic info on Senta DH system ...... 9 T-3: Relevant types of biomass fuels ...... 12 T-4: Share of agricultural land in potential supply zones...... 13 T-5: Most important crops ...... 14 T-6: Annual quantities of agricultural harvesting residues in Senta supply zones ...... 15 T-7: Forest area, wood production and annual quantities of wood harvesting residues ...... 16 T-8: Basic data in case of CHP scenario in Senta ...... 17 T-9: Basic data in case of Heat only production scenario in Senta ...... 18 T-10: Straw prices in Vojvodina ...... 19 T-11: Straw suppliers in Vojvodina ...... 20 T-12: Basic straw supply calculation ...... 27

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______T-13: Number of bailers ...... 28 T-14: Straw mobilization machinery and equipment prices ...... 28 T-15: Straw price correction factors ...... 30 T-16: Period of straw collection and storing ...... 31 T-17: Quantities and timing of straw delivery and consumption ...... 31 T-18: Nutrient content of different ash types from straw combustion ...... 38 T-19: Regulation related to straw and chicken litter combustion ...... 39 T-20: Investment costs for supply Senta CHP/HoB options ...... 41 T-21: Operational costs ...... 42 T-22: Incomes ...... 42 T-23: Costs, incomes, balance, iRR and BCR for CHP and HoB Options ...... 43 T-24: Straw Supply SWOT for CHP and HoB Options in Senta ...... 48

List of Figures F-1: Position of Senta ...... 8 F-2: Senta DH system ...... 10 F-3: Biomass supply zones ...... 12 F-4: Straw bales ...... 21 F-5: Gathered straw prepared for baling ...... 21 F-6: Straw baler in operation ...... 22 F-7: Straw bales ...... 22 F-4: Agro-biomass logistic concept ...... 23 F-8: Straw gathering ...... 24 F-9: Balling of Corn Stalk ...... 24 F-10: Corn Stalk bale ...... 25 F-11: Self-loading bale trailer ...... 25 F-12: Telehandler manipulating with straw bales ...... 26 F-13: Telehandler unloading the straw cargo ...... 26 F-14: Open field straw storages ...... 32 F-15: Potential locations for CHP or HoB and storage space ...... 33 F-16: Available land in Senta industrial zone ...... 34 F-17: Road and available land in Senta industrial zone ...... 34 F-18: Main Electric station in Senta industrial zone ...... 35 F-19: Connection point to DH system inside Sugar Plant ...... 35 F-20: Straw divider, push feeder and combustion grate manufactured by WEISS A/S Denmark ...... 36 F-21: Straw combustion flow ...... 37 F-22: Ash storage; example picture from Denmark ...... 37

List of Charts C-1: Land structure in Senta supply zones ...... 14 C-2: Sensitivity analysis for CHP and HoB supply ...... 44

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______List of abbreviations BMZ German Federal Ministry for Economic Cooperation and Development CHP Combined Heat and Power DH District Heating DKTI Deutsche Klima Technologie Initiative EU European Union EUR, € Euro HoB Heat Only Boiler HP Horse Power GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH) GIZ-DKTI Program for the “Development of a sustainable Bioenergy Market in Serbia“ ha hectare kW Kilowatt kWh Kilowatt Hour m³ cubic meter m2 square meter MW Megawatt MWh Megawatt hour PE Public Enterprise PPP Public-private partnership Ton, t metric ton

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______1. Executive summary

Within 50km radius from Senta there is over 490,000ha of agricultural land. All agricultural land in the area is managed by private companies or farmers. Land ownership structure and land size classes, along with terrain features, provide favourable basic preconditions for feasible supply organization and cost efficient biomass mobilization. Total amount of harvesting residues from agriculture, which can be considered as realistically collectable is over 480,000tons. Wood biomass potentials are very limited sine this region of Serbia has the lowest forest share and total collectable forest residues in defined area are below 1,000tons. Options of using communal wood residues or wood processing residues are not feasible due to very low availability, thus development of biomass solutions based on agricultural harvesting residues is the only feasible option.

Biomass demand is analyzed in two scenarios: development of Combined Heat and Power Plant (CHP) and development of Heat only boiler producing only heat energy. Biomass demand in case of CHP is calculated at 38,000tons, while maximal demand for heat only production plant in Senta is 7,500tons per year. Both in case of CHP or heat only production demand can be covered by utilizing harvesting residues in 25km radius from Senta.

Main demand drivers on agro biomass market in the region derive from: compost producers, chicken and cattle farmers, agro pellet and briquette factories and farmers and companies producing energy from harvesting residues. After mobilization of harvesting residues, straw suppliers are finally selling the straw at the price range of 38 to 42 EUR per ton, delivered to a buyers’ destination in 50km range from straw mobilization point. It can be expected that future organization of heat production and delivery or combined heat and power production will be in the frame of private public partnership between private investor in production side and the municipality in heat delivery side. It can be expected that private partner is responsible for supplying necessary fuels. There are several options: private partner can organize straw mobilization alone, having contracts of straw takeover on the field and delivering straw to the plant; or private partner or municipality directly can make contracts for straw delivery on site with existing or new companies specialized for straw mobilization. Main challenge in straw supply is in the fact that harvesting residues are collected in short period of the year and need to be stored until consumed – this means that one or several storages need to have enough space to provide storing of annual biomass demand. Thus storing agricultural biomass – straw in bales requires plenty of space.

Total investment in machinery and equipment for straw supply in case of CHP is 2,000,000EUR, while in the case of HoB it is 600,000EUR. Total annual operational costs related to organize straw delivery in case of CHP are 1,152,000EUR, while in case of HoB total annual operational costs are 231,000EUR. In case of unit price for straw delivered to a combustion site of 40EUR/ton, total annual incomes in case of straw delivery to CHP are 1,520,000EUR, while in case of HoB total annual incomes are 300,000EUR. Benefit cost ratio in case of supply to CHP is 1.11, while internal rate of return is 11.92%. Investment with calculating replacement of the machinery in every 5 years, should be repaid in 10years. In case of HoB Benefit cost ratio is 1.03 and internal rate of return is only 2.09%. The investment can be completely repaid in 20years - this way the price of straw for HoB supply have to be higher than 40EUR per ton.

Supply of straw based CHP or HoB production are technically and financially feasible in Senta. However, there are differences in supply profitability and organization, mainly related to the quantities of harvesting residues to be processed, stored and supplied. Major financial differences of analysed models lie in the level of the investments needed for efficient organization of straw mobilization and quantities of straw to be supplied, which can amortize and justify necessary investments in machinery and the equipment. Stakeholders’ analysis has shown that municipality officials and existing straw suppliers are interested for development of CHP or HoB. On the other hand, local agricultural advisory service is against removal of harvesting residues from field, while farmers are willing to sell the straw at fair prices.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______2. Definition of tasks

Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta is developed as activity of the project: “Development of Sustainable Bioenergy Market in Serbia” implemented jointly by KfW and GIZ and funded by German Federal Ministry for Economic Cooperation and Development (BMZ).

Objective of Consultants’ assignments in completion of the Report consisted of determination of: 1. Biomass potentials and realistic biomass supply of Municipality of Senta o Specification of relevant biomass types o Agricultural residues (solid types like straw from different crops, corn-cobs, husks, etc.) o Wood based biomass (residues from forestry, industrial sector) o Municipal waste (wood cuttings, construction wood) 2. Biomass demand for two types of biomass plants: o CHP o Heating plant (Heat only) 3. Biomass supply and logistics: o Biomass market situation in North Backa county o Identification of potential supplies (specialized agro biomass mobilization companies, major crop producing companies, cooperatives and farmers, etc..) and their potentials and propensity for supply in terms of quantity, quality and other properties o Technical requirements and machinery in use respectively necessary for sustainable biomass supply o Supply chain management (contracting, delivery, quality control) 4. Different biomass preparation and take-in systems and ash disposal o Biomass storage o Types of straw and other biomass shredder systems including fuel-mix preparation o Types of take-in systems of different biomass-types (from storage after preparation into combustion chamber) o Ash handling 5. Legal aspects related to biomass utilization 6. Financial analysis and economic indicators of biomass supply organization and financing options: o Investments in machinery, equipment, storage, quality control o Operational costs o Economic indicators (NPV, iRR, BCR, Sensitivity) o Financing options for biomass suppliers 7. Capacity building of Senta agricultural advisory service for data preparation o Briefing on the methodology for specification of different biomass types o Determination of technical potentials and realistic biomass supply o Overview on technology and machinery used in biomass harvest and logistic chains o Determination and structure of information needed for potential biomass supply for City of Senta district heating system

Envisaged result of the Study is that Agro-biomass potential and logistics study for Senta has been successfully develop, containing essential information and data for potential investors. Study was prepared by Foragrobio CC doo1 and submitted in July 2016.

1 http://www.foragrobio.rs/ Page 6 of 51

DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______3. Methodology

Methodology implemented in the preparation of the report consisted of following steps: - Analysis of related literature, regulations and other sources related agro and wood biomass, equipment, logistics and municipality in question; - Development of semi-structured interview questionnaires and checklists for information provision; - Identification of relevant stakeholders’ to be interviewed and scheduling interviews; - Meeting and/or face to face interviews with relevant stakeholders; - On site analysis of potential locations for CHP/DH plant and biomass storages. - Design of biomass supply concept including investment and operational costs assessment; - Financial analysis including economic indicators; - Comparative analysis of CHP and DH solutions in terms of biomass supply; - Reporting.

Literature and sources review was focused on obtaining information about municipality of Senta and DH system situation and development. In addition, Serbian regulation related to agriculture, land use, waste, forestry, wood industry, environment, transportation, construction and local administration was also analyzed for definition of adequate biomass supply solutions. Statistics about agricultural and wood production were also analyzed for determination of biomass potentials.

Open semi structured interview questionnaire and information checklist were developed for provision of relevant information and additional data from representatives of the municipality, sugar plant, potential biomass suppliers and other relevant stakeholders. Meetings and face to face interviews were carried out in the period of 1st of June to 24th of June 2016, along with onsite analysis of possible biomass storages’ locations.

Biomass availability was calculated based on agricultural and wood production statistics for Senta and surrounding municipalities for different types of biomass fuels, based on crop/yield or product/yield ratio.

Agro biomass supply concept was designed based on the literature review, local conditions, stakeholders’ inputs, logistic preconditions and available best practice examples. Investment and operational costs assessment was also based on review of relevant sources and information provided by interviewed stakeholders, construction standards and equipment distributers. Financial analysis, based on defined investment and operational costs, included application of methods for calculation of net present value, internal rate of return, benefit-cost ratio, period for return of investments and sensitivity analysis. Stakeholders’ analysis was performed, based on attitudes of different stakeholders relevant for agricultural biomass supply chain organization and management. Finally, comparative SWOT analysis of DH and CHP solutions was performed according to defined biomass demand, availability, logistic aspects, financial and economic indicators and stakeholders’ analysis.

Report was prepared and submitted to GIZ DKTI comments on 1st of July 2016. Report was reviewed and revised version was submitted to GIZ DKTI on 12th of July 2016.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______4. Status Quo Analysis – Background

Chapter bellow provides basic background information about Senta Municipality and its district heating supply system.

4.1. Municipality of Senta

Map of Senta Municipality presenting its position in Serbia, along with municipal boarders and major roads is presented in a figures bellow.

F-1: Position of Senta

Municipality of Senta is situated in Norther most part of Serbia – Vojvodina province, Northern Banat County. Senta borders municipalities of Kanjiza, Coka and Ada in Northern Banat County and municipalities of Backa Topola and Subotica in Northern Backa county. Basic information on Senta municipality are presented in table below.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

Info/Municipality Senta Area km2 293 No of settlements 1 urban+ 4 rural Urban population 18,704 Rural population 4,612 Total population2 23,316 T-1: Basic information about Senta municipality

Around 23,000 inhabitants live in municipality of Senta, from which almost 19,000lives in the town of Senta. Other inhabitants live in villages of: Gornji Breg, Bogaras, Tornjos and Kevi. Majority of Municipality population (79%) is Hungarian, followed by Serbs (10%) and others.

Senta is among 20 most developed municipalities in Serbia. Most developed economic activities are industry, agriculture and trade. Industrial companies in Senta include sugar factory (TeTo Senta), tobacco factory (JTI), yeast factory (Altech), automotive components (Tisza Automotive), industrial equipment factory (Rasco-Tamp), metal processing factory (Mecafor), shoes factory (FAS shoes), grain processing factory (Zitopromet) and others. Rich in high quality arable land, farmers from Senta are significant producers of industrial crops, vegetables, grains and cattle.

4.2. Senta District Heating System

District heating systems of Senta was developed and operated by Senta Sugar Factory TE-TO A.D. Basic information on district heating system is presented in a table below.

Info/Municipality Senta DH operator Senta Sugar Factory DH distribution Public Company Elgas Heat production capacity(MW)/ 25MW steam boilers on natural gas Total number of consumers 413 individual houses 1,705 apartments 259 offices Heat production/Heat delivery 2013/2014 – 25,818.70/20,559.55MWh 2014/2015 – 25,830.55/18,691.70MWh 2015/2016 (until January) – 15,460.20/11,253.51MWh T-2: Basic info on Senta DH system

Senta district heating system was developed from 1979 to 1984. It consists of 29km of pipeline network with 53 substations. Total number of consumers, including individual houses, apartments and office space exceeds 2,000. Heat is produced in steam boilers with total capacity if 25MW inside Sugar Factory. In average around 25,000MWh of heat energy was annually produced and up to 20,000MWh was delivered to the customers by Sugar Plant. Heat was produced from natural gas, which is also used in Sugar Plant industrial process. Until season 2015-2016, Senta Sugar plant was selling the heat to the heat consumers, via Public Company Elgas. In addition, until April 2016, even a pipeline network was owned by the Sugar Plant. Having in mind that Sugar Plant was privatized in 2002, and that heat production was never a core business of the plant, district heating system was not regularly maintained with only urgent repairs, which resulted in significant heat losses in distribution. In April Municipality of Senta signed the contract with Senta Sugar Plant to take over the ownership of the network. In the middle of 201-5-2016 heating season, Sugar Plant announced it will no longer sell the heat anymore, since it is not profitable. In addition, major shareholder of Senta Sugar Plant, the Italian company Finanziaria Saccarifera Italo-Iberica S.p.A sold their shares of the plant to Serbian company Sunoko, owned by MK Group. However, the sale of Senta Sugar Plant to Sunoko, was not yet approved by Serbian Anti-Trust commission, considering that Sunoko already owns and operates 3 out of 6 sugar factories in Serbia. In the meantime, Senta Sugar plant is financially blocked in the legal vacuum emerged in take-over process.

2 According to 2011 Census - http://popis2011.stat.rs/?page_id=2162 Page 9 of 51

DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

F-2: Senta DH system

In 2013 Municipality of Senta and Dutch-Belgium Company Windvision Biomass Operations signed a Cooperation Protocol for construction on agro biomass based CHP, with total production capacities of 4.9MWe/8.4MWth. Heat delivery to Senta DH system was also the part of the project. However, apart from buying a land plot inside the industrial zone, the private company haven’t done further steps in CHP development. Therefore, the status of the heat delivery in Senta remained pledged to the Senta Sugar Plant operations. Having in mind situation with the Sugar plant Senta municipality decided to develop or participate in the development of district heating solution independent from the Sugar plant, alone or in public private partnership.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______5. Biomass potentials and realistic biomass supply of Municipality of Senta

Realistic biomass potentials where analyzed in regard to different types of biomass based fuels which can be utilized in heat and/or heat and power production for Senta. Biomass potentials were determined for immediate zone in radius of 25km from Senta, and extended zone with radius of 50km from Senta. Immediate zone for supply encompass biomass resources of municipalities Senta, Kanjiza and Ada on the right bank of Tisza river and municipalities Novi Knezevac and Coka on the left bank of Tisza river. Also small part of the resources of Kikinda and Novi Becej municipality can be included in this zone. However, due fact that there are only 2 bridges over Tisza between Kanjiza and Novi Knezevac and Senta and Coka, where biomass can be transported, to certain extent, increases transport distances of immediate zone outer parts. Immediate zone medium transport distance to Senta is calculated at 12.5km, with 25km as maximum. Considering road curves and bridges, we can use 15km as medium and 35km as maximum. Extra zone for supply apart from municipalities Senta, Kanjiza and Ada, included Subotica, Backa Topola, Mali Idjos, Srbobran and Becej on the left bank of Tisza and municipalities Novi Knezevac, Coka, Kikinda and Novi Becej on the right bank of Tisza river. Apart from mentioned bridges between Senta and Coka and Kanjiza and Novi Knezevac, there is bridge between Novi Becej and Becej which can be used for biomass transport. Extra zone medium transport distance is 25km with 50km as maximum. Considering road curves and bridges, we can use 35km as medium and 70km as maximum distance.

Availability of different biomass types was calculated based on available and official statistical data34 on five or four5 year average production of different agricultural crops and wood. Following the findings of different studies6 and attitudes expressed in different debates, the discussion how much of the available agricultural residues are sustainable available the opinions are quite controversial. On one hand there are attitudes that agricultural residues should be ploughed in order to increase the quantity of humus in the soil and consequently the soil fertility. On the other hand, livestock farmers partially are using the straw as bedding material thus producing the manure which is applied on the field. Also, straw with a high calorific value is still burned on the fields in Vojvodina without further use. Furthermore, the use and yields of straw are depending on the varieties, the climate and soil conditions as well as on the applied harvesting technologies and experience of the farmers. Of course also the market price of straw is a major decisive factor. In context with the above mentioned arguments the share of 30% to over 60% of the total estimated biomass quantities can be sustainable considered to be taken from the agricultural land without jeopardizing the soil quality. In order to follow a conservative approach and taking under consideration, that minor experience of straw supply for biomass plants exists in Vojvodina, the percentage of 30% as realistic sustainable agro- biomass potential is considered in this study to be on the safe side.

3 Regions and Municipalities in Serbia 2011, 2012, 2013, 2014 and 2015. Serbian Statistical Office – http://webrzs.stat.gov.rs/WebSite/Public/PageView.aspx?pKey=711&URL=http://pod2.stat.gov.rs/Elektrons kaBiblioteka2/Pretraga.aspx?pubType=1 4 Agricultural Census for Serbia. Serbian Statistical Office - http://popispoljoprivrede.stat.rs/ 5 Data about crop production for every municipality in Serbia for wheat, corn and industrial crops are published in publication Regions and Municipalities in Serbia until 2014. In publication from 2015, data about crop production were not published. 6 Kaltschmitt, Hartmann, Hofbauer. EnergieausBiomasse.Springer, 2009; Prof. Dr. Dusan Gvozdenac. 2010. Study report: “Development of Biomass Market in Vojvodina”, University of Novi Sad, Faculty of Technical Sciences, Provincial Centre for Energy Efficiency , Novi Sad, 2010; Faculty of technical Sciences. Martinov, M., Viskovic, M., Bojic, S., Dumnic, B., Golub, M., Krstic, J. Study report: Study of Spatial Placement of Public Storage for Agriculture Biomass in Vojvodina. Provincial Secretary for Energy and Mineral Resources of Vojvodina; Faculty of technical Sciences. Martinov, M., Viskovic, Djatkov, Dj, Golub, M., Krstic, J. Study on Collecting, Storing and Processing of Corn Stalk as Energy Source and Biofuel Raw Material in Vojvodina. Provincial Secretary for Energy and Mineral Resources of Vojvodina; Page 11 of 51

DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

F-3: Biomass supply zones

Considering scarcity of forests in this part of Serbia and forest cover of up to 5% in assessed municipalities, and very high demand for poplar wood which is dominant and hardwood firewood, which is very seldom, only amounts of forest residues are calculated as potentially available. Usual share of forest residues in gross harvests in such forest stands varies between 8 and 15%, however not all quantities are collectable, therefore conservative share of 5% of residues in total harvest as collectable is applied.

5.1. Specification of relevant biomass types

Table below presents basic types and features of biomass fuels which can be mobilized in proximity of Senta and used for combustion in heat and/or electricity production.

Category Fuel Product/ Water content Heating Ash Ash Residue ratio when value content melting collected % MJ/kg % point Co Agro-biomass: Wheat Straw 1:1 15-20% 14.00 5 900 Harvesting Soybean straw 1:0.6 15-20% 15.70 5 1,000 residues Corn Stalk 1:1 15 -30% 13.50 5 1,000 Sunflower 1:2 15-20% 14.50 5 800 harvesting residues Wood biomass: Forest residues 8-15% 35-45% 13.50 2 1,400 Harvesting Landscape Not applicable 35-45% 13.50 2 1,400 residues management residues Wood industry Fruit crate 30-50% 20-30% 14.50 2 1,400 processing production residues residues Sawmill residues 30-50% 20-30% 14.50 2 1,400 T-3: Relevant types of biomass fuels

Detailed analysis of biomass potential for each of the specified potential biomass fuel sources is presented in following sub chapters.

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Potentials for utilization of harvesting residues from agriculture are determined by production of most important crops in defined supply zones. Furthermore, potentials for mobilization of harvesting residues are determined by land structure and terrain features. Flat terrain and rich soils consisting of chernozem and black swamp land close to the river basins are one of the basic factors determining existing high productivity of agricultural land in Northern part of Vojvodina. Basic data on agricultural land share in defined supply zones is determined in table below.

Share of Share of arable Agicultural Area agricultural land Total arable land land in total Municipalities land ha in total land area area ha agricultural land ha % % Senta 29,300 26,743 91% 20,990 78% Kanjiza 40,700 34,560 85% 30,052 87% Ada 22,700 20,072 88% 19,531 97% Coka 32,100 29,046 90% 21,768 75% Novi Knezevac 30,500 26,855 88% 21,085 79% Zone 1 155,300 137,276 88% 113,425 83% Subotica 100,700 88,427 88% 75,519 85% Backa Topola 59,600 54,670 92% 49,378 90% Mali Idjos 18,100 16,980 94% 15,372 91% Becej 48,700 43,856 90% 40,183 92% Srbobran 28,400 27,476 97% 27,476 100% Novi Becej 60,900 53,538 88% 50,271 94% Kikinda 78,200 70,693 90% 64,876 92% Zone 2 394,600 354,523 90% 323,076 91% Zone 1+2 549,900 491,799 89% 436,501 89% T-4: Share of agricultural land in potential supply zones

Over 88% of the whole land area in zone 1 or 137,000ha is agricultural land, while another 354,500ha of agricultural land exist in defined zone 2. In total, Senta municipality and other municipalities within 50km radius from Senta have over 490,000ha of agricultural land, which is 89% of total land area of municipalities in questions. In addition, over 113,000ha in zone 1 and 323,000ha in zone 2 are arable land, which is over 83% in zone 1 or 91% in zone 2. In both zones over 430,000ha of agricultural land is arable.

Land size structure is presented in chart below. Most of the land 190,000ha or 43% in both zones is owned by landowners who poses over 100ha. Also, around 75,000ha or 17% is owned by landowners who poses over 50ha. Only 15% of the land is owned by farmers who poses less than 10ha. While general trend is in enlargement of large properties and land plots consolidation, it can be expected that land size classes structure will be changed in future leaning to even more land plots owned by large landowners. Most of the land is private, while state owned land is leased to private farmers and companies. All agricultural land in the area is managed by private companies or farmers. Land ownership structure and land size classes, along with terrain features, provide basic precondition for feasible supply organization and cost efficient biomass mobilization.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

200.000 180.000 160.000 140.000 120.000 100.000 zone 2 80.000 zone 1 60.000 40.000 20.000 0 Bellow 1ha 1-2ha 2-5ha 5-10ha 10-20ha 20-30ha 30-50ha 50-10ha over 100ha 1% 2% ha 5% 7%

43% 9%

17% Bellow 1ha 1-2ha 2-5ha 5-10ha 10-20ha 20-30ha 30-50ha 50-10ha over 100ha

C-1: Land structure in Senta supply zones

Most important crops grown in defined supplied zones are presented in table below.

Wheat Corn Sunflower Soya Sugar bit Municipalities

Production Area Production Area Production Area Production Area Production Area

tons ha tons ha tons ha tons ha tons ha Senta 16,407 3,989 35,589 8,270 7,926 3,591 1,498 599 75,328 1,746 Kanjiza 14,228 3,518 56,005 12,597 2,775 1,193 228 91 17,225 535 Ada 11,383 2,611 61,237 11,694 2,639 1,105 1,498 599 15,119 2 Coka 13,138 3,088 31,711 7,368 6,023 2,905 1,096 439 13,734 445 Novi Knezevac 22,478 5,127 35,271 8,520 6,812 2,864 413 165 23,183 701 Zone 1 77,634 18,334 219,812 48,449 26,175 11,658 4,734 1,894 144,587 3,429 Subotica 58,799 12,666 236,714 44,123 18,107 7,226 1,699 680 74,642 1,622 Backa Topola 52,375 10,687 152,390 25,632 13,626 5,059 4,101 1,640 74,612 1,563 Mali Idjos 13,245 2,756 45,527 8,755 3,058 1,311 1,883 753 31,843 660 Becej 39,423 7,943 82,106 13,172 11,133 4,103 16,858 6,743 125,646 2,711 Srbobran 15,161 2,892 62,229 9,853 1,029 400 29,338 11,735 98,646 1,963 Novi Becej 28,563 6,557 84,400 17,961 13,043 6,142 1,605 642 40,579 1,076 Kikinda 45,563 9,100 130,109 26,272 33,967 13,542 3,697 1,479 72,654 1,562 Zone 2 253,130 52,600 793,474 145,768 93,962 37,784 59,181 23,673 518,621 11,156 Zone 1+2 330,763 70,934 1,013,286 194,217 120,137 49,441 63,916 31,958 663,208 14,585 T-5: Most important crops

Most of the land in both zones is used for crop production, respectively corn. Average production of corn in both zones combined exceeds 1M tons per year.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______Corn is followed by wheat (over 300,000tons) and sunflower (over 100,000tons). Soya and sugar bit also have significant shares, especially sugar bit, considering its productivity. However, share of soya in zone 1 is not so important. A contrary share of sugar bit in both zone 1 and 2 is important, considering the fact that Senta sugar plant was most productive sugar plant in Serbia and needed a strong raw material base. Over 660,000tons of sugar bit is an annual average production in both supply zones. Rape seed becomes more and more important and expectations from agricultural advisory service is that its share in crop structure will rise. However, due to its low significance right now this crop is not taken into considerations.

Average annual quantities of most important harvesting residues in Senta supply zones, are presented in table below. Calculation was based on production level, grain straw ratio according to literature sources and conservative approach in definition of share of residues realistic for mobilization thus supply.

Sunflower Wheat harvesting Corn harvesting Soya harvesting Total harvesting harvesting residues Share residues - straw residues- stalk residues - straw residues realistic – straw and heads Municipalities for Grain: Grain: Grain: Grain: tons/yea supply straw tons/year straw straw tons/year straw tons/year tons/year r ratio ratio ratio ratio Senta 30% 1:1 4,922 1:1 10,677 1:2 4,756 1:0.6 270 20,624 Kanjiza 30% 1:1 4,268 1:1 16,802 1:2 1,665 1:0.6 41 22,776 Ada 30% 1:1 3,415 1:1 18,371 1:2 1,583 1:0.6 270 23,639 Coka 30% 1:1 3,941 1:1 9,513 1:2 3,614 1:0.6 197 17,266 Novi Knezevac 30% 1:1 6,743 1:1 10,581 1:2 4,087 1:0.6 74 21,486 Zone 1 30% 1:1 23,290 1:1 65,944 1:2 15,705 1:0.6 852 105,791 Subotica 30% 1:1 17,640 1:1 71,014 1:2 10,864 1:0.6 306 99,824 Backa Topola 30% 1:1 15,713 1:1 45,717 1:2 8,176 1:0.6 738 70,343 Mali Idjos 30% 1:1 3,974 1:1 13,658 1:2 1,835 1:0.6 339 19,806 Becej 30% 1:1 11,827 1:1 24,632 1:2 6,680 1:0.6 3,034 46,172 Srbobran 30% 1:1 4,548 1:1 18,669 1:2 617 1:0.6 5,281 29,115 Novi Becej 30% 1:1 8,569 1:1 25,320 1:2 7,826 1:0.6 289 42,003 Kikinda 30% 1:1 13,669 1:1 39,033 1:2 20,380 1:0.6 665 73,747 Zone 2 30% 1:1 75,939 1:1 238,042 1:2 56,377 1:0.6 10,653 381,011 Zone 1+2 30% 1:1 99,229 1:1 303,986 1:2 72,082 1:0.6 11,505 486,801 T-6: Annual quantities of agricultural harvesting residues in Senta supply zones

Total amount of harvesting residues, which can be considered as realistically collectable is over 480,000tons in both defined supply zones. In immediate zone defined in a 25km radius around Senta, total amount of harvesting residues of wheat, corn, sunflower and soya is 106,000tons, with dominant share of corn residues and significant shares of what and sunflower. In second zone, defined in 50km radius around Senta, additional 380,000tons of residues of same crops can be considered as realistically collectable.

Agroindustry processing residues are not taken into consideration for several reasons. Most important processing of agricultural products in Senta area are sugar production, grain mills and animal food production. All the residues in sugar production – sugar beet noodles are processed and pelletized into animal food. In addition, there are no significant experiences worldwide in terms of sugar beet residues combustion, only on ethanol or biogas productions. Grain mills and animal food producers do not have significant amounts of resides which can be used for combustion. On the other hand, sunflower and soya processors already use their residues for energy production inside factories premises.

5.3. Wood Biomass: Harvesting and Wood Industry Residues

Wood biomass potentials are determined by forest rea features and wood production. However, this region of Serbia has the lowest forest share in total area, from below 1% to 4% depending of the municipality in questions.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______Only productive forests are in fact poplar plantations located on the banks of the river Tisza aimed for wood production. Also, there are combined conifer and hardwood plantations on sand soils or wood buffers on agricultural land aimed in erosion prevention. There are almost no natural forests.

Almost all of the forests are state owned and managed by Public Enterprise Vojvodinasume, while there is a small portion on natural or planted willow and poplar forests in flooding zones on the river banks, managed by Public Company Vode Vojvodine. Table below presents detailed data about forest area and wood production.

Total forest area in both defined zones is 7,000ha or 1% of the total land area. Annual average wood production is around 30,000cbm and most of the production is in municipalities Novi Becej, Kanjiza, Subotica and Becej.

Forest cover Average wood Forest area Forest resides Forest residues Municipality share production ha cbm/year Tons/year at 35% wc % cbm/year Senta 96 0% 486 24 15 Kanjiza 1,024 3% 6,423 321 193 Ada 229 1% 1,378 69 41 Coka 430 1% 333 17 10 Novi Knezevac 813 3% 1,992 100 60 Zone 1 2,592 2% 10,613 531 318 Subotica 3,728 4% 7,739 387 232 Backa Topola 33 0% 0 0 0 Mali Idjos 4 0% 0 0 0 Becej 377 1% 4,056 203 122 Srbobran 1 0% 0 0 0 Novi Becej 598 1% 9,784 489 294 Kikinda 0 0% 0 0 0 Zone 2 4,741 1% 21,579 1,079 647 Zone 1+2 7,333 1% 32,192 1,610 966 T-7: Forest area, wood production and annual quantities of wood harvesting residues

Conservative calculation of forest residues quantities based on 5% of total harvested wood as collectable forest residues, resulted in below 1,000tons of forest residues at 35% water content per year in both defined supply zones. In addition, some parts of these residues are already collected by local population as low quality firewood. Considering very low quantities on rather large area, mobilization which requires organization of supply chain and involvement of different machinery cannot be considered as feasible nor recommended.

Another possible source of harvesting residues are communal wood residues deriving from management of parks within town of Senta. However, in the interviews with Senta municipality representatives it is determined that this resource in fact do not really exist. There is one larger park in Senta, with old trees, but trees are not harvested and branches are not cut regularly, therefore one side there are no data which can be used for calculation potential, and on the other side this potential cannot be higher than few tons of wood per year.

Considering scarcity of wood in the area, wood industry is not developed. In defined supply zones, there are only several identified wood processors: Viza Prom Kanjiza, Peres Wood Industry Hajdukovo and some smaller fruit crates producers in the vicinity of Kanjiza. All wood processors process poplar wood, producing fruit crates, wooden packaging or boards. While Peres Wood Industry reduced significantly its activities, due to the issues with poplar logs supply, Viza Prom Kanjiza is annually processing above 10,000cbm of wood into packaging, boards and plywood. The company already utilizes its residues for heat energy production inside the factory or sells the residues as firewood.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______6. Biomass demand for two types of biomass plants

Biomass demand is analyzed in two scenarios: development of Combined Heat and Power Plant (CHP), producing electricity and selling it to electrical grid as a privileged electricity producer from renewable energy, and also producing heat energy to be delivered to the City District heating system; and development of Heat only boiler producing only heat energy. Considering that abundance of agricultural harvesting residues and scarcity of wood based biomass, and also the fact that major residues from processing of agricultural products are already utilized, combustion of agricultural harvesting residues will be a subject of further analysis in this Study. Two basic scenarios will determine biomass demand which is directly affecting feasibility of the project including fuel choice and contracting possibilities and logistic concept including mobilization and storage capacities.

6.1. Combined Heat and Power Plant

Different types of technologies can be used for electricity production out of biomass. Biomass can be combusted and heat energy transferred into electricity in steam or oil turbines, or biomass can be gasified and heat energy can be transferred into electricity in gas turbines. There are different types of combustion methods from cigarette burning to fluidized bed. Also, considering that gasification is developed and reliable for wood biomass or agro pellets and not yet developed for bailed straw, in further analysis of biomass demand we have used scenario of developing a CHP based on fluidized bed technology and steam turbines. In addition, this is a conservative approach which considers maximum biomass demand, compared to other technologies. Use of gas boilers to cover peak loads and biomass boilers for based load is recommended in the Supervisory Report on this Study7. Table below presents CHP capacities and biomass demand, calculated in the Supervisory Report on this Study.

Capacity Mwhte 8 MWth Capacity Mwhel 3.89 Mwel Biomass demand 34,440 Tons Biomass demand plus 10% contingency 38,000 Tons T-8: Basic data in case of CHP scenario in Senta

Thermal capacity of CHP is calculated at 8MWth, while electricity production capacity is calculated at 3.89MWel. total annual biomass demand is calculated in 34,440tons, when 10% contingency is calculated total required amount of agricultural biomass is 38,000tons per year.

Calculated biomass demand in case of agro biomass CHP development in Senta represents 36% of the realistically available harvesting residues from corn, wheat, sunflower and soya in immediate zone of supply in diameter of 25km from Senta, or 8% of realistically available harvesting residues of mentioned crops in diameter of 50km from Senta. This demand can be covered by using 58% of realistically available (30% of theoretically available) corn harvesting residues in 25km diameter from Senta or 13% of realistically available corn harvesting residues in 50km diameter from Senta. It can be concluded that 3.8MWel/8MWth CHP demand can be covered by utilizing harvesting residues of corn alone, or corn and wheat and/or sunflower and/or soya residues only from immediate zone of supply in 25km radius from Senta. In case of necessity, there are significant amounts of residues to be added up from 50km supply radius.

6.2. Heat Only Production Plant

Heat only production plant requires development of a heat only boiler. Basic data for heat only production plant scenario, calculated in Supervisory Report on this Study are presented in a table below.

7 2016. Wieser, Hermann Supervisory Report on Agro-Biomass Potential and Logistics Study for Supplying DHC Senta and/or CHP Senta. GIZ DKTI Page 17 of 51

DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

Capacity Mwhte 8 MWth Biomass demand 6,858 Tons Biomass demand plus 10% contingency 7,500 Tons T-9: Basic data in case of Heat only production scenario in Senta

With same consideration as in CHP scenario related to energy value of biomass, maximal demand for 8MW heat only production plant in Senta is 6,858tons per year, when 10% contingency is calculated, total demand in case of HoB is 7,500tons per year.

Calculated biomass demand in case of agro biomass Heat only production development in Senta represents 7% of the realistically available harvesting residues from corn, wheat, sunflower and soya in immediate zone of supply in diameter of 25km from Senta, or 2% of realistically available harvesting residues of mentioned crops in diameter of 50km from Senta. This demand can be covered by using 11% of realistically available (30% of theoretically available) corn harvesting residues in 25km diameter from Senta or 2% of realistically available corn harvesting residues in 50km diameter from Senta. Such demand can also be covered by using 32% of realistically available wheat harvesting residues alone in 25km diameter radius from Senta, or 8% of realistically available wheat harvesting residues alone in 50km diameter radius from Senta. In addition, heat only production demand can be covered by utilizing sunflower harvesting residues alone in both supply zones (48% of zone 1 or 10% of zone 2). It can be concluded that 8MW heat only production demand can be covered by utilizing harvesting residues of corn, wheat and sunflower alone or combined together with soya from immediate zone of supply in 25km radius from Senta.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______7. Biomass supply and logistics

Financial analysis presents overview of envisaged investment and operational costs and incomes along with calculation of basic financial indicators for cluster supply.

7.1. Biomass market situation in Senta supply area

Agro biomass market in Vojvodina is in development. Still harvesting residues, especially corn stalk is underutilized. Main demand drivers derive from: compost producers, chicken and cattle farmers, agro pellet and briquette factories and farmers and companies producing energy from harvesting residues.

Compost producers and chicken and cattle farms use wheat straw, while pellet factories prefer soya straw, but also use wheat and occasionally corn straw as well. Demand from compost producers and chicken farms is constant, while cattle farms demand can be expected to decrease due to general decrease of milk and meat production affected by current market situation. Both straw pellet and briquette production is in decrease, due to the general pellet market crisis and inability to export and slow development of domestic pellet market. Nevertheless, there is only one agro pellet producer in vicinity of Senta – company EMS Pellet, with annual production capacity of 8,000tons of pellet. Total annual demand for wheat, soya and corn straw is around 10,000tons. Other closest agro pellet producers are in Zrenjanin (Victoria Starch) or Zabalj (TMD). Affected by market crisis, the largest agro pellet factory in Serbia – BPI Doroslovo, have bankrupted in the beginning of this year. There is a number of small scale farmers or residents who produce heat energy by combusting different types of harvesting residues. Also there are some companies producing energy for their own production process. Those companies are also using soya, wheat and occasionally corn straw. The largest company using harvesting residues – mostly soya straw harvesting and processing residues is Soya Protein in Becej, which combusts around 15,000tons of agro biomass per year.

Table below presents straw prices on different parities in Serbia.

Product-parity Price Straw on field EUR/ha 14-28 Straw on field EUR/ton 6-8 Straw loaded on truck EUR/ton 25-29 Straw transported to sellers’ storage up to 50km EUR/ton 38-42 Straw transported to sellers’ storage over 100km EUR/ton 50 T-10: Straw prices in Vojvodina

Straw suppliers are usually buying straw on field from agricultural companies or farmers. Straw price is usually determined based on the area – ranging from 14 to 28 EUR per hectare. Price depends very much on the straw yield, and having in mind usual straw yield of around 3-4 tons per hectare price of straw on field ranges from 6 to 8 EUR per ton. Some agricultural companies are selling straw on field per ton with same price range of around 6 to 8 EUR per ton. After mobilization of harvesting residues, straw suppliers are finally selling the straw at the price range of 38 to 42 EUR per ton, delivered to a buyers’ destination in 50km range from straw mobilization point. Some suppliers are also selling straw at 25 to 29 EUR per ton loaded into a buyers’ truck. There are examples of occasional straw delivery to the buyers located over 150 km away from straw mobilization point, at the price of 50 EUR per ton. The water content of the delivered straw ranges from 12 to 18%.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______It is important to note that wheat and soya straw are usually utilized, while corn straw is utilized and traded only seldom. Some sources8 suggest that corn straw price for big bales, when all mobilization costs are calculated, should range between 30-35EUR per ton at 25% water content loaded into a transport vehicle or between 43-47EUR per ton delivered to a buyers’ location. Considering abundance of corn harvesting residues and also low transport distances of up to 35km for supply of wheat and sunflower straw, for further calculation we will use the average price of 40EUR per ton, delivered to a buyers’ location.

7.2. Identification of potential supplies

There are several specialized companies and farmers (presented in table below) oriented in harvesting residues collection, baling and supplying straw buyers. Those companies and farmers were interviewed for the purpose of this or previous elaborated by the consultant. Those companies are fully equipped with all straw gathering, baling, manipulation and transport capacities. Their realized annual production varies from 2,000 to over 10,000 tons of straw per year. Some of those companies also have land which they use as straw open storages. Most of the straw supplying companies are active in Northern Backa, Western Backa, Southern Backa, Nothern Banat and Central Banat counties.

Straw supplier Location Victoria logistics Novi Sad Betacorn doo Sombor Biomove doo Novi Sad Mediland doo Sombor Vasa Poljanski Vrsac Sreckov Dragan Novi Sad Bun Petar Ada T-11: Straw suppliers in Vojvodina

Major crop producers in Senta, Kanjiza, Ada, Coka and Novi Knezevac are medium and large scale individual farmers. Most prominent farmers in Senta municipality are members of Senta Farmers Association Gazdakor. There are no significant cooperatives in the region except in Becej (OZZ Becej and ZZ Tisza). Most significant agricultural companies in 25km radius of Senta are: Poljoprivreda Senta, owned by Meat Industry Matijevic, operating 540ha of owned land and additional 2,400ha of state owned land; Ribar doo, Novi Knezevac, owned by Meat Industry Matijevic operating 530ha of fisheries and land for crop production; and Poljoprivreda Novo Selo AD, Orom, owning over 1,000ha used for crop production.

In 50km radius of supply, there are plenty large scale agricultural companies owning and processing from 1,000-5,000ha of agricultural land including: Ravnica - Bajmok, Galad - Kikinda, Jedinstvo – Kikinda, owned by Meat Industry Matijevic; Topola, Kikinda, owned by Delta Agrar; Vojvodina-Novo Milosevo, owned by MK Group; PIK Moravica-Backa Topola; Panonija and Pobeda – Backa Topola, owned by IM Topola; Doza Derdj – Backa Topola and others.

Most of the mentioned companies produce crops, while several operate pig or cow farms. Nevertheless, none of them have processing of agricultural products which requires significant amounts of energy that can be produced out of biomass. Therefore, their propensity for straw supply or straw sale can be expected, depending on the prices.

8 Faculty of technical Sciences. Martinov, M., Viskovic, Djatkov, Dj, Golub, M., Krstic, J. Study on Collecting, Storing and Processing of Corn Stalk as Energy Source and Biofuel Raw Material in Vojvodina. Provincial Secretary for Energy and Mineral Resources of Vojvodina.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______Pictures below present straw baling operations organized by Poljoprivreda, Senta in July 2016.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

7.3. Technical requirements and machinery for sustainable biomass supply

Agro biomass mobilization consists of following phases: - Crop harvesting; - Straw gathering and baling; - bale loading and transport. Page 22 of 51

DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______Following machinery is used in agro biomass mobilization:  Harvesters for harvesting crops;  Straw collectors for straw gathering and balers for bailing;  Self-loading trailers or telescopic handlers for loading and manipulations;  Tractors or trucks with adequate trailers for transport.

One of the basic principles in harvesting residues mobilization is to perform baling right after the harvesting if water content level of residues is below 20%. Baling of residues with higher water content depending on storage conditions can increase microbes’ activities and chemical oxidation inside plant tissue and lead to increase of temperature leading to possible self-ignition of bales. Therefore, if water content of residues is higher than 20%, baling should be performed after drying period on the field. In case of corn harvesting residues, water content significantly varies depending on weather conditions in September and October.

Figure bellow shows logistic concept of agro biomass mobilization.

F-4: Agro-biomass logistic concept

In order to increase efficiency of balers, straw gathering is performed with mechanical gatherers. After gathering, harvesting residues are baled into square bales, which depending on balers, can weight from 450 to 550 kg. Usual dimensions of large square bales are 1.2 m x 1 m x 2.4 m with density of 180-220 kg/m3.

Loading and first phase of transport of the bales from the field can be performed with self-loading trailers or telescopic handlers. Self-loading trailers load and group bales and carry them to temporary storage which is in the vicinity of the field on the road accessible by trucks. Finally, straw bales are transported by tractors or trucks with adequate trailers for bale transport.

All activities in biomass mobilization and storage should be in line with fire protection regulations and special attention should be paid to Regulation on specific measures of fire protection in agriculture9 which specifies adequate preparation of machinery involved in biomass mobilization activities.

Pictures below present different phases of agro biomass mobilization.

9 Regulation on Specific Measures on Fire Protection in Agriculture, Official Gazette of The Republic of Serbia No.27/84. Page 23 of 51

DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

F-8: Straw gathering

F-9: Balling of Corn Stalk

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

F-10: Corn Stalk bale

F-11: Self-loading bale trailer

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

F-12: Telehandler manipulating with straw bales

F-13: Telehandler unloading the straw cargo

Basic goal of following analysis is to determine necessary capacities for mobilization of required quantities of biomass. Also this analysis will elaborate data on machinery procurement costs.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______Capacity requirements for baling and transport of harvest residues are assessed depending on quantities of biomass to be mobilized for CHP production or heat only production.

Determined biomass demand for CHP is 38,000tons per year, while determined biomass demand for heat only production is 7,500tons per year. Harvest periods for sunflower, soya and corn are not overlapping but go one after another. On the other hand, harvesting period for wheat comes one month earlier. This mean that biomass mobilization period can start in July after wheat harvest and finish in October, after corn harvest. Structure and quantity of harvesting residues along with land area needed for collection is presented in table below. Share of different harvesting residues is defined based on their availability in 25km supply radius from Senta and considering that wheat and soy straw already have the market.

High pressurized baler for square bales, can produce bales weighting from 450-550kg. For basic calculation it is adopted that average bale weight will be 500kg. Gathering, baling and bale transport should be realized in short period of time, depending on time of harvest. Speed of the process is affected by time conditions, since they affect water content of straw. Harvesting residues should be baled if straw water content is below 20%, and in favorable weather conditions water content can be below 15%. If water content of straw is low, baling should be performed right after harvest, a contrary some time is required for straw drying.

For straw collecting machinery 130-140HP tractors can be used, while for balers tractors have to be stronger than 220HP. Choice of machinery should be optimized based on distance of bale transport. High pressurized balers (CASE, Massey Ferguson, New Holland, John Deer etc.) in optimal working regime when straw is collected can bale 25tons of straw per hour or 60bales.

Option/Crop Wheat Sunflower Soya Corn Total CHP tons 9,500 5,700 760 22,040 38,000 Heat only tons 1,875 1,500 375 3,750 7,500 Share of diffent types of harvesting residues Option/Crop Wheat Sunflower Soya Corn Total CHP 25% 15% 2% 58% 100% Heat only 25% 20% 5% 50% 100% Option/Crop Wheat Sunflower Soya Corn Total Mobilization time July – August August - September September Sept. - October July – October Residues yield t/ha 3 3 1.5 4 Needed crop area Option/Crop Wheat Sunflower Soya Corn Total CHP ha 3,167 1,900 507 5,510 11,083 Heat only ha 625 500 250 938 2,313 Needed number of bales - minimum weight 400kg Option/Crop Wheat Sunflower Soya Corn Total CHP 19,000 11,400 1,520 44,080 76,000 Heat only 3,750 3,000 750 7,500 15,000 T-12: Basic straw supply calculation

On 10hour working day such baler can bale 250tons of straw or 500bales from 100ha. Number of days for straw collecting, baling and bale transport should be around 20-30days per year in periods depending on available harvesting residues. Optimal number of balers for CHP option to be engaged is 5, while for HoB option is 1. With increase of biomass demand, number of required tractors and operational machinery also increases.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

Option Tons/year Bales/year Ha/year Number of balers 1 2 3 4 5 6 CHP 38,000 76,000 11,083 152 76 51 38 30 25 Number of days HoB 7,500 15,000 2,313 30 15 10 8 6 5 T-13: Number of bailers

Since dynamics of straw collecting is highly dependent on organization and machinery choice, if productive machinery is utilized or additional machinery is included, number of balers can be adapted correspondingly. If 6meter header harvesters are utilized in harvesting of all crops, distance form lines will be 6meter. In order to provide optimal conditions for baler (in average yield of 3-4tons per ha, excluding soya) it is necessary to collect straw with straw collectors. Number of straw collectors should be equal to number of balers. Tractors working in bale collecting with self-loading trailers should be utilized for straw gathering as well. Depending on the yield of straw and harvesting method, on one hectare it is possible to produce 5 to 15 bales weighing 500kg. Depending on number of bales self-loading trailers can be used for bale delivery to central field loading point, in which telehandlers load it to transport trailers. In case of large number of bales and poor weather conditions, transport trailers can be loaded directly on the field. For manipulation it is necessary to procure 2 telehandlers and 2 self-loading trailers. One telehandler can be used for loading on field and second for unloading. Transport trailers and tractors can be used for bale delivery to CHP or HoB considering the distance, alternatively bales can be transported by trucks.

Table below presents market prices of straw mobilization machinery and equipment.

Machinery&equipment Market price (EUR) Tractor 220 KS 110,000 - 140,000 Baler 90,000 - 120,000 Straw collector 40,000 - 80,000 Tractor for straw collector 140 HP 40,000 – 80,000 Telehandler 70,000 – 90,000 Self-loading trailers 40,000 – 50,000 Tractor for self-loading trailers 140 HP 40,000 – 80,000 Trucks for bale transport 50,000 – 100,000 Trailers for bale transport (for trucks) 15,000 T-14: Straw mobilization machinery and equipment prices

Detailed financial calculations are presented in Chapter 10 of the Study.

7.4. Supply chain management (contracting, delivery, quality control)

Senta Municipality does not own nor manage agricultural land therefore it cannot be expected that it will participate in supply chain organization. In addition, Municipality do not have experience in heat production and district heating management, therefore it can be expected that future organization of heat production and delivery or combined heat and power production will be in the frame of private public partnership between private investor in production side and the municipality in heat delivery side. In such organizational scheme it can be expected that private partner is responsible for supplying necessary fuels. In this case there are several options: - private partner can organize straw mobilization alone, having contracts of straw takeover on the field and delivering straw to the plant; - or private partner or municipality directly can make contracts for straw delivery on site with existing or new companies specialized for straw mobilization.

Both options are feasible depending on the private partner propensity to invest and be involved in the local supply chain. By investing in straw mobilization organization, private partner can secure stabile supply and lower and stable prices.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______Also, private partner will be in position to manage the quality of straw by being involved in whole supply chain. On the other hand, apart from investment in the machinery and equipment, such organization requires investments in straw storage space as well. In such organization private partner can secure straw takeover on field with annual or long term contracts. Starting price of straw on field should be calculated at the rate of 12-24EUR/ha or 6-8EUR per ton.

In case of contracting supply in terms of straw delivery at the heat only/CHP site with existing or new companies specialized for straw mobilization, the risk of price escalation can emerge. On the other hand, private partner does not need to invest in machinery and equipment and extend his activities out of the core business. Starting price of straw delivered to CHP/heat only site should be calculated at rate of 38-42EUR/ton for 15-20% water content for straw in big bales (1 x 1.2 x 2.4 meters). Straw delivery can be contracted annually or long term. Nevertheless, usual request of financial institutions for investment loans in biomass energy production process is to have a long term biomass supply contract, covering at least the period of contracted energy sale (10-12years). In case of long term contracting of straw, following formula can be used for price change determination.

PVn = PVn-1 x In In = IS x 25% + IC x 25% + IT x 25% + IB x 25% PVn = New Price (RSD or EUR/ton) PVn-1 = Old Price (RSD or EUR/ton) In = Price change index IS = Salary index IC = Fuel price index IT = Transport cost index IB = Fertilizaer cost index

Contracted quantities need to be guaranteed, meaning that contract should be backed by sellers’ provision of bank guaranty or a bill. Value of bank guaranty or a bill should be at least 10% of contracted wood chips quantities. Failure to fulfil delivery of contracted quantities needs to be subjected to penalties. Formula below can be suggested for calculation of penalties for non-delivery of contracted quantities:

P = (Pfoss – Pwc)x Q P = Penalty Pfoss = Unit price of fossil fuel counterpart Pwc = Unit price of straw Q = quantities of contracted yet undelivered straw.

Safeguard mechanism should also be installed for sellers in order to secure timely payment from the buyer. Buyer should provide a bank guaranty or a bill for at least of 10% of contracted quantities. Buyer also needs to be subjected to penalties in case of not taking over contracted quantities. Formula below can be suggested for calculation of buyers’ penalties for not taking over contracted quantities:

P = 0.5 x (Qcon-Qdel) P=Penalty Qcon=contracted quantities Qdel= actually delivered quantities

Delivery schedule, based on contracted quantities, should be determined based on buyers’ storage capacities, and possibility of sellers to accept the obligation of storing the straw and organizing just in time delivery, or delivery on monthly basis. This needs to be indicated in the contract. Penalties can be linked with failure to fulfil monthly supply according to the contract. Except penalties, contract cancelation with supplier can also be included if significantly fails to deliver contracted quantities for two months in a row.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______Quality of straw to be combusted depends significantly of technical features of installed boilers. Measurement procedures and quality control should be determined by the contract, along with units used for straw measurement. We suggest utilization of tons as a unit for straw measurement. Application of this unit does requires an investment on truck scales needed for weight measurement, Control of water content can be efficiently organized with application of probe based water content portable measuring devices10. Every shipment of straw can be controlled by probe insertion to a straw bale at every corner of the trailer used for transport. Average of measured water content values should be determined and used for price evaluation. Additional quality control should include ash content and presence of dirt or foreign particles inside straw bales. For non-compliance with contracted quality reclamations and reduction in terms of straw volumes to be paid should be applied.

As mentioned contracted price of straw should be indicated in EUR or RSD per ton at 15-20% water content, therefore price should be linked to an average water content of every straw bales shipment. For reduction or increase of price we suggest method presented in a table below.

Water content % Corection factor Below 10 1.2 10-15 1.1 15-20 1.0 20-25 0.9 25-30 0.8 T-15: Straw price correction factors

Correction factors should be applied on contracted price to determine actual price of straw for every individual shipment and also to motivate suppliers to supply dryer straw with higher energy content.

10 http://www.humimeter.com/foods/humimeter-fl1-hay-moisture-meter/ Page 30 of 51

DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______8. Biomass storage, preparation and take-in systems and ash disposal

After mobilization, biomass needs to be stored and prepared for combustion. After the combustion ash needs to be removed and disposed.

8.1. Biomass storage

Main challenge is in the fact that harvesting residues are collected in short period of the year and need to be stored until consumed – this means that one or several storages need to have enough space to provide storing of annual biomass demand. Thus storing agricultural biomass – straw in bales requires plenty of space. Table below presents biomass mobilization and storage period for soya, wheat and corn harvesting residues.

Moth/ Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Biomass Wheat Corn Soya Sunflower Storage

T-16: Period of straw collection and storing

Delivery time with quantities and time of consumption is presented in the table below in case of CHP and HoB.

Month/info Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Combined Heat and Power Production

Straw supply 0 0 0 0 0 0 8,500 3,500 11,000 15,000 0 0 38,000 tons

Consumption 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 38,000 tons

Tractor/tractor 0 0 0 0 0 0 850 350 1,100 1,500 0 0 3,800 loads per day Number of 0 0 0 0 0 0 85 35 110 150 0 0 380 trucks/tractors

Heat only Production

Month/info Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Straw supply 0 0 0 0 0 0 2,000 1,000 2,000 2,500 0 0 7,500 tons Consumption 1,250 1,250 1,250 625 0 0 0 0 0 625 1,250 1,250 7,500 tons Tractor/tractor 0 0 0 0 0 0 200 100 200 250 0 0 750 loads per day Number of 0 0 0 0 0 0 20 10 20 25 0 0 75 trucks/tractors T-17: Quantities and timing of straw delivery and consumption

According to calculated delivery timing and consumption, maximum storage space is required in October when 25,500tons of straw should be stored determining maximal storage capacities for CHP or 7,000tons of straw in case of HoB.

Rule Book on Special Fire Prevention Measures in Agriculture defines that straw can be kept in open field storage at least 100 meters away from electrical lines, power stations, other storages, flammable materials, objects with open fire and similar objects with increased risk of fire. Straw should be stacked in maximum 20 x 6meter piles, with 20meter distance in between or 50x8 meters piles with 50meter distance in between.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

F-14: Open field straw storages

Maximum height of pile is 8meter. In case of 50x8meters piles, one pile can consist of 1,100bales storing total quantity of 550tons of straw. In order to store required amount of straw for CHP in such organization 47piles would be needed, and considering regulations in terms of distances in between piles, it would take around 34ha of land to store everything in one place. In case of 20x6meters pile for CHP it would need 23ha, to store 153piles. In case of HoB, using the same calculation principles 10ha would be needed in 50x8meter piles organization or 9ha in case of 20x6meter piles.

There is one possible location in Senta industrial zone, which can be used for CHP or HoB development and construction (F-15, F-16, F-17, F-18). It is in proximity of the Senta port on Tisza river and connections to the district heating network. Currently there is a consolidated land consisting of several plots owned by the Municipality in industrial zone. Total area of this plots is around 15ha. The sale price of this land is 7EUR per m2, however using this land for biomass storage may not be cost efficient. Additionally, next to the land for sale, there is a 6.5ha plot, owned by Windvision, a company who started with biomass based CHP development four years ago, but haven’t continued with this activities, therefore this plots may also be available.

One way to organize a cost effective storing of such quantities of biomass is on fields on edges of agricultural land or on lower quality agricultural land which is owned or used by straw suppliers. There are some alternative land plots, owned by the state, which can be used for such purposes. One location is one km south of the industrial zone. This land was formerly used for hemp processing factory, but now is managed by PE Vode Vojvodine and it is not utilized. Area of this land is around 15ha. Second potential location is low quality state agricultural land. Municipality which organized public bids for lease of state owned land, have the issue of leasing this plot, since it can be only used as pasture. Approximate area is also around 15ha. CHP or DH operator, can consider options of leasing mentioned plots for biomass storing purposes under conditions and prices much more favourable than prices of land in the industrial zone.

Storing of straw inside CHP or HoB facilities, should be organized only for quantities needed for two weeks’ consumption in winter time. This can be organized in closed or open storages. Page 32 of 51

DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

F-15: Potential locations for CHP or HoB and storage space

In case of open storage according to Rule Book on Special Fire Prevention Measures in Agriculture, in order to store 1,000tons of straw, needed for 2weeks consumption in peak month for both CHP or HoB it would take 2.16ha to 2.64ha, depending on piles dimension. In order to organize storing most efficiently, a closed storage plan, equipped with fired prevention equipment should be designed and approved by the Ministry of interior affairs – Fire Department.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

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Fuel handling of the straw bales can be carried out using an automatic crane system operating inside the fuel storage (crane span= 12m and crane run way= 42m). The crane provides automatic feeding of bales to the bale conveyor. Unloading of the trucks arriving with the bales is done manually by an operator using a forklift truck to position the bales inside the storage. Humidity control of the bales arriving is also done manually by the same operator working in the fuel storage area. This system has been used successfully in district heating plants in Denmark.

F-20: Straw divider, push feeder and combustion grate manufactured by WEISS A/S Denmark

The straw bales are transported from the fuel storage to the boiler area by means of a single bale conveyor to the straw fuel feeding system located near the boiler. The straw fuel feeding system provides continuous feeding by means of shredding the straw and feeding it into the boiler through a cooled chute. The feeding line consists of a string remover, a straw shredder, a rotary gate valve for preventing back fire and a cooled screw feeder. The straw-divider loosens the press layers without actually cutting but by an efficient loosening and dividing of the straw. This ensures an even and continuous feeding of the boiler in which way a constant combustion with the optimum efficiency is obtained. The straw divider includes string cutter. The straw bale string cutter provides a maintenance-free operation and does not require manpower. The push feeder is used for transporting the loose straw from the straw divider and feeding it into the combustion grate. The combustion of the straw takes place on a moving grate which has four combustion zones with admission of primary air, and the combustion chamber is designed to achieve the most efficient combustion possible. The moving grate is prepared for installation of a mechanical ash removal system.

The figure below shows the straw combustion flow in a straw boiler plants using proven technology. The main components of the straw biomass plant that need to be adapted for a specific project consist of:

 Automatic crane-operated straw storage  Straw divider  Straw in-pusher  Moving grate Page 36 of 51

DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______ Boiler  Primary and secondary air fans  Ash redler for bottom ash transport to ash containers  Bag filter system  Flue gas system with sound damper and stack

F-21: Straw combustion flow

8.3. Ash handling

The bottom ash from the combustion grate is falling into a wet ash conveyor system. The ash from the bag filter is collected under the filter and transported in a screw conveyor to the bottom ash system, where the two ash fractions are mixed. Finally, the mixed ashes go into a container and can be directly taken over by the farmers for re-distribution on the field or can be interims stored in a storage building.

F-22: Ash storage; example picture from Denmark Page 37 of 51

DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

The ash from the combustion of uncontaminated agricultural residues is a valuable fertiliser and can be distributed back to the fields. The ash from the combustion of uncontaminated agricultural residues is a valuable fertiliser and can be distributed back to the fields. The table below shows the average nutrient content of the ash types remaining from combustion of straw.

Nutrient matter Bottom ash Cyclone ash Micro fly ash in % of dry matter Calcium (CaO) 7.8 5.9 1.2

Magnesium (MgO) 4.3 3.4 0.7

Potassium (K2O) 14.3 11.6 48.0

Phosphor (P2O5) 2.2 1.9 1.1

Sodium (Na2O) 0.4 0.3 0.5 T-18: Nutrient content of different ash types from straw combustion

Returning the ash back to the land ensures that part of the plant nutrients stays in the cycle and reduces the use of mineral fertiliser. The only missing nutrient is nitrogen which almost completely passes off during the combustion with the exhaust gas. The general principle is that the distribution of ashes is approved in an amount per hectare that is in correspondence to the ash content in the quantity of straw before harvested from the field. The average amount of ash remaining after combustion is of 4-10%. In case of the envisaged use in CHP scenario this will be 1,520-3,800tons per year, while in case of HoB this should be 300-750tons per year.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______9. Legal aspects related to biomass utilization

Serbian legislation on straw utilization as a fuel for energy production is presented in table below.

OGRS Regulation Issued by Relevance No11 Parliament of the Republic of Law on Energy 145/2014 Regulating energy production and distribution Serbia 135/2004 Parliament of the Republic of Regulating prevention, control, reduction and rehabilitation Law on Environment Protection 36/2009 Serbia of environment pollution 72/2009 Parliament of the Republic of 36/2009; Law on Waste Management Regulating waste management Serbia 88/2010 Law on Environmental Impact Parliament of the Republic of 135/2004 Regulating procedures for environmental impact Assessment Serbia 36/2009 assessment Law on Strategic Assessment of Parliament of the Republic of 135/2004 Regulating procedures for impact assessment on Environmental Impact Serbia 88/2010 environment of plans and programs 72/2009 81/2009 64/2010 24/2011 Parliament of the Republic of 121/2012 Law on Planning and Construction Regulating construction of objects Serbia 42/2013 50/2013 98/2013 132/2014 145/2014 Regulation on Determination of Types of Project for which it is

Obligatory to Perform Government of the Republic of Regulating what types of projects are subjected to Environmental Impact Assessment Serbia environmental impact assessment and Types of Project for which 114/2008 Environmental Impact Assessment can be Required Regulation on Activities which Government of the Republic of 109/2009 Regulating for what activities local administration can affect Environment Serbia 8/2010 charge fees for environmental protection and improvement Regulation on Incentives for Energy Production from Adopted Government of the Republic of Renewable Sources and Highly on Regulating incentives for renewable energy production Serbia Efficient Combined Heat and 13.6.2016 Power Production Adopted Regulation on Contract for Government of the Republic of Regulating contracting models for sale and guaranteed on Electricity Takeover Serbia takeover of electricity 13.6.2016 Regulation on conditions and Government of the Republic of Regulating status of privileged producers of electricity from procedures for status of privileged 8/2013 Serbia renewable sources energy producer Rule Book on Categorization, Ministry of Environmental Testing and Classification of Regulating types of waste Protection and Spatial Planning 56/2010 Waste Rule Book on Classification and Disposal of Residues of Animal Origin, Veterinary and Sanitary Conditions for Construction of Ministry of Agriculture, Forestry Object for Collecting, Processing Regulating possibilities and conditions for utilizing chicken and Water Management; Ministry and Disposal of Residues of 31/2011 litter and other animal based residues of Agriculture and Environment Animal Origin, Ways of Conducting 97/2013 Official Control and Self-control, 15/2015 and conditions for Animal Cemeteries and Pits Rule Book on Technical Requirements for Projecting, Ministry for Infrastructure and Regulating construction and control of equipment for steam Construction and Control of Energy 87/2011 production Equipment under Pressure Rule Book on Inspection of Ministry for Infrastructure and Regulating construction and control of equipment for steam 87/2011 Equipment under Pressure Energy production Rule Book of Technical and other Regulating construction and control of boilers and boiler Ministry of Energy and Mining Requirements for Boiler Facilities 50/2009 houses Rule Book on Information about Ministry of Environment and Location and Content of Location Regulating procedure for location permit procurement Spatial Planning 3/2010 Permit Rule Book on Content and Ministry of Environment and 93/2011 Regulating procedure for construction permit procurement Procedure for Construction Permit Spatial Planning 103/2013 Rule Book on Conducting Unified Ministry of Construction, Traffic Regulating procedures for all permits required for 22/2015 Procedure and Infrastructure construction Rule Book on Special Fire Ministry of agriculture Regulating fire prevention measures on straw storage Prevention Measures in Agriculture 27/1984

T-19: Regulation related to straw and chicken litter combustion

11 No of Official Gazette of Republic of Serbia regulation is published in. Page 39 of 51

DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______Law on Energy is a basic law, which regulates energy production. Law also provides framework for energy production from renewable energy sources such as biomass. Very important is the Regulation on conditions and procedures for status of privileged energy producer and regulations related to incentives for production of renewable energy, such as regulations adopted in June 2016, which provide guaranteed prices for electricity produced from renewables and procedures related to contracting for electricity takeover.

Law on Environmental Protection is a basis Law, from which other regulations related to waste management and environmental impact assessment are defied. Law on Waste Management, article 4, is defining straw and other non-dangerous agriculture residues as exceptions in implementation of the Law on Waste Management. Law give basics for waste determination which is further elaborated in Rule Book on Categorization, Testing and Classification of Waste. This Rule Book all residues from agriculture classifies in group 2, straw is classified as 020103 as residues of plant tissue.

Law on environmental impact assessment defines procedures for environmental impact assessment of implemented projects and activities. According to the Regulation on Determination of Types of Project for which it is Obligatory to Perform Environmental Impact Assessment and Types of Project for which Environmental Impact Assessment can be Required, for all facilities for steam and hot water production from 1 to 50 MW of power capacity, environmental impact assessment can be required. Law on construction along with, Rule Book on Information about Location and Content of Location Permit; Rule Book on Content and Procedure for Construction Permit; and Rule Book on Conducting Unified Procedure determines procedures necessary for construction or adaptation of objects, while: Rule Book on Technical Requirements for Projecting, Construction and Control of Equipment under Pressure; Rule Book on Inspection of Equipment under Pressure; and Rule Book of Technical and other Requirements for Boiler Facilities define requirements for equipment for biomass combustion and steam production.

Finally, Rule Book on Special Fire Prevention Measures in Agriculture defines conditions for straw storage.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______10. Financial analysis and economic indicators of biomass supply

Financial analysis elaborates in detail investment costs, operational costs and economic indicators related to efficient organization of straw supply in case of CHP and HoB. Also, some financial options are presented for participants in straw supply chain.

10.1. Investment costs

Investment costs are presented in table below. Investment costs are related to machinery procurement presented in chapter 7.

CHP Option Machinery and equipiment No Cost (EUR) Total (EUR) tractors 140hp 5 60,000 300,000 tractors 220hp 5 125,000 625,000 gatherers 5 60,000 300,000 bailers 5 105,000 525,000 trailers 2 45,000 90,000 telehanders 2 80,000 160,000 Total 2,000,000 HoB Option tractors 140hp 1 60,000 60,000 tractors 220hp 1 125,000 125,000 gatherers 1 60,000 60,000 bailers 1 105,000 105,000 trailers 2 45,000 90,000 telehanders 2 80,000 160,000 Total 600,000 T-20: Investment costs for supply Senta CHP/HoB options

Total investment in machinery and equipment in case of CHP is 2,000,000EUR, while in the case of HoB it is 600,000EUR. In further analysis of economic indicators, it is calculated that each five years’ new equipment is procured and old one is sold for half of the price. Investments in storage are not calculated since it is recommended to store straw in an open field. Unit costs of storage are calculated in the operational costs.

10.2. Operational costs

Operational costs are related to straw procurement on field according to prices indicated to chapter 7. Also, operational costs include workers’ gross daily fees and costs of different phases of straw mobilization, manipulation, transport and storage according to several sources12.

12 Faculty of technical Sciences. Martinov, M., Viskovic, Djatkov, Dj, Golub, M., Krstic, J. Study on Collecting, Storing and Processing of Corn Stalk as Energy Source and Biofuel Raw Material in Vojvodina. Provincial Secretary for Energy and Mineral Resources of Vojvodina Costs of biomass preparation for energy production. Brkic, M. http://agrovizija.rs/teme/obnovljivi_izvori.php?subaction=showfull&id=1379932648&ucat=6&template=agro vizija& Costs of corn straw preparation for energy production. Zekic, V., Milic, D., Tica, N. http://agrovizija.rs/teme/obnovljivi_izvori.php?subaction=showfull&id=1364592396&ucat=6&template=agro vizija&

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

CHP Option Operational costs Quantitity Unit cost Total (EUR) Salaries - (12x60EUR/man day) 30days 720EUR/day 21,600 Straw on field 38,000tons 7EUR/ton 266,000 gathering and balling 38,000tons 12 EUR/ton 456,000 Manipulation, loading unloading, transport 38,000tons 5 EUR/ton 190,000 additional transport 38,000tons 2 EUR/ton 76,000 storing 38,000tons 1 EUR/ton 38,000 Indirect costs and maintenance 10% of operational costs 104,760 Total per year 1,152,360 HoB Option Salaries - (4x60EUR/man day) 30days 240EUR/day 7,200 straw on field 7,500 7EUR/ton 52,500 gathering and balling 7,500 12 EUR/ton 90,000 Manipulation, loading unloading, transport 7,500 5 EUR/ton 37,500 additional transport 7,500 2 EUR/ton 15,000 storing 7,500 1 EUR/ton 7,500 Indirect costs and maintenance - 10% op 10% of operational costs 20,970 Total per year 230,670 T-21: Operational costs

Total annual operational costs related to organize straw delivery in case of CHP are 1,152,360EUR, while in case of HoB total annual operational costs are 230,670EUR.

10.3. Incomes

In case of unit price for straw delivered to a combustion site of 40EUR/ton, total annual incomes in case of straw delivery to CHP are 1,520,000EUR, while in case of HoB total annual incomes are 300,000EUR.

CHP Option Incomes Quantitity (tons) Unit price (EUR) Total (EUR) Straw delivery 38,000 40 1.520,000 HoB Option Straw delivery 7,500 40 300,000 T-22: Incomes

According to economic indicators calculated further, unit price of 40EUR per ton for delivery to HoB cannot be considered as profitable for supplier. Sensitivity analysis suggested that profitable price should be around 44EUR per ton.

10.4. Economic indicators (NPV, iRR, BCR, Sensitivity)

Cash flow for 20 years of operation, along with incomes and costs is presented in chart below. Cash flow is based on the assumption that production capacities will not grow, that machinery will be replaced every five years. Table below presents, internal rate of return (IRR) and Benefit-cost ratio (BCR).

2010. Development of Biomass Market in Vojvodina. Faculty of Technical Sciences Novi Sad, Center for Energy Efficiency. Page 42 of 51

DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

CHP Option HoB Option year=n Incomes Costs Balance year=n Incomes Costs Balance 0 1,520,000 -3,152,360 -1,632,360 0 300,000 -830,670 -530,670 1 1,520,000 -1,152,360 367,640 1 300,000 -230,670 69,330 2 1,520,000 -1,152,360 367,640 2 300,000 -230,670 69,330 3 1,520,000 -1,152,360 367,640 3 300,000 -230,670 69,330 4 2,520,000 -3,152,360 -632,360 4 600,000 -830,670 -230,670 5 1,520,000 -1,152,360 367,640 5 300,000 -230,670 69,330 6 1,520,000 -1,152,360 367,640 6 300,000 -230,670 69,330 7 1,520,000 -1,152,360 367,640 7 300,000 -230,670 69,330 8 1,520,000 -1,152,360 367,640 8 300,000 -230,670 69,330 9 2,520,000 -3,152,360 -632,360 9 600,000 -830,670 -230,670 10 1,520,000 -1,152,360 367,640 10 300,000 -230,670 69,330 11 1,520,000 -1,152,360 367,640 11 300,000 -230,670 69,330 12 1,520,000 -1,152,360 367,640 12 300,000 -230,670 69,330 13 1,520,000 -1,152,360 367,640 13 300,000 -230,670 69,330 14 2,520,000 -3,152,360 -632,360 14 600,000 -830,670 -230,670 15 1,520,000 -1,152,360 367,640 15 300,000 -230,670 69,330 16 1,520,000 -1,152,360 367,640 16 300,000 -230,670 69,330 17 1,520,000 -1,152,360 367,640 17 300,000 -230,670 69,330 18 1,520,000 -1,152,360 367,640 18 300,000 -230,670 69,330 19 2,520,000 -1,152,360 1,367,640 19 600,000 -230,670 369,330 ∑ 34,400,000 -31,047,200 ∑ 7,200,000 -7,013,400 BCR 1.11 IRR 11.92% BCR 1.03 IRR 2.09% T-23: Costs, incomes, balance, iRR and BCR for CHP and HoB Options

Benefit cost ratio in case of supply to CHP is 1.11, while internal rate of return is 11.92%. Investment with calculating replacement of the machinery in every 5 years, should be repaid in 10years. In case of HoB Benefit cost ratio is 1.03 and internal rate of return is only 2.09%. The investment can be completely repaid in 20years - this way the price of straw for HoB supply have to be higher than 40EUR per ton.

Table and chart below present sensitivity analysis in terms of iRR oscillations in case of reduction or increase of investment, reduction or increase of straw on field costs and reduction of increase of delivered straw prices. Effect of the investment costs on iRR fluctuates from 6% to 25% for change of the investment costs from 130% to 70% of the initial value in case of CHP. Effect of the straw on field price reflects in iRR change from 5% to 19% as the price of straw on field varies from 70% to 130%. Finally, price of delivered straw has the most significant effect on iRR value, change it from -9% to 62% by fluctuating from 70% to 130% of initial price.

In case of HoB, iRR varies from -1% to 9% as investment costs are varied between 70% and 130% of their initial value. iRR varies from -2% to 6% as unit costs of straw on field fluctuate between 70% and q30% of their initial value. iRR, however mostly depend on delivered straw price, as it varies from -11% to 26% as the delivered straw prices increases from 70% to 130% of the initial level. Moreover, sensitivity analysis indicates that straw supply to HoB considering quantities of straw and the investment level, can provide interesting profitability for the investors (iRR above 5%) if initial price of 40EUR per ton is increased for 10% at the level of 44EUR per ton.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______

70%

60%

50%

40%

30%

20%

10%

0% 70% 80% 90% 100% 110% 120% 130% -10%

-20% iRR Investment costs straw price on field straw delivered to CHP

30%

25%

20%

15%

10%

0% 70% 80% 90% 100% 110% 120% 130% -5%

-10%

-15%

Investment costs straw price on field straw delivered to HoP

C-2: Sensitivity analysis for CHP and HoB supply

10.4. Financing options for biomass suppliers

Apart from commercial banks’ credits for agricultural machinery that are generally available, there several other financing options for biomass suppliers for procurement of straw mobilization machinery and equipment: Grants and favorable credits awarded by the Ministry of Agriculture, IPARD Program, Support of Guaranty fund of Vojvodina and grants and credit lines from Hungarian Governments, available for Hungarian farmers in Vojvodina.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______Ministry of agriculture occasionally provides grants and subsidized credits for procurement of crop production equipment13. In addition, according to information provided by the Serbian Ministry of Agriculture and Environment Protection the EU subsidy program “IPARD PROGRAM FOR 2014- 2020” (IPARD = Instrument for Pre-Accession for Agriculture and Rural Development) will be operational in end of 2016. Within the IPARD sub-measure “Investment in physical assets of agricultural holdings” the sector of crop production and milk and meat production it may be eligible for submitting a project proposal to support the investment in procurement of tractors machinery and equipment for baling. It is also eligible to support procurement of the tractors but only up to 100kW. Aid intensity is around 60%, with maximum expenditures of 700,000EUR-1,000,000EUR. Total budget of this program for this measure is around 170,000,000EUR. The payment of the grant effects according to the financial agreement that needs to be concluded after approval of the project. The disbursement of the grant to the beneficiary takes place after implementation of the project based on the proof of paid invoices14.

Guaranty fund of Vojvodina provides support in procuring guarantees for procurement of agricultural machinery in partnership with commercial banks which provides more favorable interest rate for machinery procurement. Those guarantees are available for registered agricultural holdings with conditions defined in public calls15.

Hungarian Government have also provided support for entrepreneurs and farmers having Hungarian and Serbian citizenship via Prosperitaty foundation. According to announcements around 160,000,000EUR will be available in favorable credit lines and grants for machinery and equipiment procurement, land buy and production improvement16.

13 More info on: http://subvencije.rs/vesti/bespovratna-sredstva-za-prikljucnu-mehanizaciju-i-opremu- ministarstva-poljoprivrede-u-2015-oj-godini/ 14 More info on: http://www.mpzzs.gov.rs/wp- content/uploads/datoteke/korisna_dokumenta/Serbia_IPARD_II_Program_finalni_prevod- Korigovano_20_04_2015.pdf 15 More info on: http://www.garfondapv.org.rs/portfolio/konkurs-za-odobravanje-garancija-za-obezbedenje- dugorocnih-kredita-za-nabavku-nove-poljoprivredne-mehanizacije-i-opreme/ 16 More info on: http://www.prosperitati.rs/sr Page 45 of 51

DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______11. Stakeholders analysis

Stakeholder analysis is based on the interviews and consultants’ discussions conducted with representatives of Senta municipal authorities, farmers, farmers’ advisors and companies already active in straw mobilization. List of interviewed organizations and representatives is presented in Annex I.

Municipality representatives, do not think so much about political context of biomass utilization and environmental benefits. For them it is most important to find a fast and efficient solution for procurement of district heating, since current system of heat provision is not feasible any more. Utilizing agricultural biomass for them is a logical solution, considering abundance of agricultural land and the level of crop production. Also, reduction of heating costs is something they believe can be achieved by developing biomass based solution for heat. This can also have positive effect on the expansion of town’s district heating network.

Municipality is opened for developing its own biomass based heat production, however, for its representatives PPP model seems more attractive for few reasons. First, municipality have never done heat production – there is no district heating company so there is no experience in heat production management. Second, there is no experience in biomass supply and finally financing procured by private partner is more favourable, even though municipality economy is developing and financial balance is positive. In addition, municipality already started cooperation with private investor in agriculture biomass CHP development, which unfortunately haven’t led to an envisaged result, but defined model of cooperation remains attractive for the Municipality. Municipality also suggested potential location for CHP/HoB development and several potential locations for biomass storages.

Attitudes of straw mobilization companies is positive, which is expected considering that their business and the market is in development. For them regular buyer paying fair prices in the region is more than welcome. Long term contracting can also be interesting for them as well. Storage of biomass in suppliers premises and just in time delivery is something which would require additional investments in transport capacities but it is generally feasible.

Attitudes of agricultural advisory service is in general very negative about harvesting residues mobilization and combustion. They are convinced that by removing biomass from fields the soil quality will be permanently damaged, since biomass is the main source of humus for the soil. Some go as far as advocating for prohibition of biomass removal from the fields after harvest. Even though this is not backed by scientific research on the topic, representatives of the service do advise farmers that it is much better to plow biomass in, then to mobilize it and use it for combustion.

Farmers attitudes varies. Some, already use soya harvesting residues for heating of their houses and farms. Some, already use wheat harvesting residues for cow, pig and chicken farms. While some have already been selling their harvesting residues to farms or other farmers. There is even a method developed by local farmers in terms of putting the value to harvesting residues – residues from 1ha areas are sold for the value of up to 200kg of wheat, which is in the suggested range of resides prices of 6-8EUR per ton.

On the other hand, there are farmers which are plowing in harvesting residues, and think that the price of biomass should be much higher, considering nutrition values of removed biomass, but not calculating additional costs of biomass shredding and plowing in. Attitudes of these farmers can also affected by advices of the agricultural service, however their economic interest comes first. Also there are farmers which for now plow in harvesting residues, but in case of straw market development they are willing to sell the biomass at fair prices.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______Most important impediments in identified stakeholder analysis for efficient agricultural biomass supply and development of CHP/HoB are following: - Time needed for CHP/HoB development; - Little experience in efficient biomass mobilization and utilization; - Negative attitudes of agricultural advisory service towards agro biomass utilization; - Price escalation of agro biomass if/when investment starts.

Impact of attitudes and impediments elaborated in stakeholder analysis, along with proposals for impediment removal will be further analysed in SWOT analysis in Conclusion chapter of this Study.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______12. Conclusions

Supply of straw based CHP or HoB production are technically and financially feasible in Senta. Also stakeholder analysis has shown more positive than negative attitudes along with some impediments for CHP/HoB project development. However, there are differences in supply profitability and organization, mainly related to the quantities of harvesting residues to be processed, stored and supplied. Major financial differences of analyzed models lie in the level of the investments needed for efficient organization of straw mobilization and quantities of straw to be supplied, which can amortize and justify necessary investments in machinery and the equipment. In both cases procurement of adequate machinery in sufficient amount is necessary, since straw preparation needs to be finished in short time after harvesting, before straw is affected with rainfalls. This is a challenge especially when it comes to corn straw, which is most abundant and available.

Table below shows SWOT analysis of supply in both case scenario – CHP and HoB.

Supply of straw based Combined Heat and Power Plant in Supply of straw based Heat Only Production in Senta Senta Strengths Weaknesses Strengths Weaknesses 1. Demanded quantities of 1. Plenty of required storage 1. Demanded quantities of 1. Investment level in machinery Agro-biomass are available space on fields and close to Agro-biomass are available in requires higher price of delivered in close proximity of Senta CHP close proximity of Senta (25km straw due to reduced quantities (25km radius) 2. Limited experience in corn radius) 2. Plenty of required storage 2. Favorable land structure straw mobilization and limited 2. Favorable land structure space on fields and close to HoB and terrain for straw experience of local farmers in and terrain for straw 3. Limited experience in corn mobilization straw supply mobilization mobilization and local farmers in 3. Existence of professional 3. Long time for CHP 3. Existence of professional straw supply companies experienced for development compared to companies experienced for 4. Long time for biomass based supply HoB or fossil fuel based supply HoB development compared to solutions fossil solutions. Opportunities Threats Opportunities Threats 1. Profitability of straw 1.Negative attitudes of 1.Profitability of straw supply 1. Negative attitudes of supply business agricultural advisory service in case of fair prices agricultural advisory service on 2. Development of local on harvesting residues 2. Development of local harvesting residues mobilization suppliers mobilization reflecting on suppliers reflecting on farmers’ attitudes farmers’ attitudes 3. Set up a cooperation 3. Set up of cooperation model 2. Increase of straw prices or model and example and 2. Increase of straw demand as example and enlarge the straw demand for biofuels enlarge the operations for and prices operations for other markets production other markets 3. Profitability of CHP bellow 3. Profitability of HoB bellow investors’ expectations investors’ expectations 4. Inability of HoB operators to increase the price of straw T-24: Straw Supply SWOT for CHP and HoB Options in Senta

Major strengths of CHP and HoB model in case of straw supply are similar. Demanded quantities are available in close proximity of Senta (25km radius), which means that the transport costs will not be high and local supply chains will be developed. Also, both land structure, consisting of large parcels and properties and terrain is very favourable for straw mobilization. In addition, there are professional companies from other parts of Vojvodina, experienced in supply, which can be actively engaged.

Major weaknesses in case of CHP is that plenty of space is required for straw storage on fields and close to CHP site. This weakness derives from an outdated but valid anti-fire regulations in agriculture. Same weakness is related to HoB option. However, special storage design and direct communication with fire protection authorities can lead to development of an efficient and fire-safe storage which requires less space. Additionally, the state and the municipality have unutilized land potentially available for storage purposes. Another major weakness is time needed for development of CHP or HoB compared to fossil fuels solutions counterparts. Approach which can be used in this regard is in provision of biomass based solutions for base load and fossil fuel solution for peak loads heat production, while fossil fuel based solution can run solely until development of biomass based CHP or HoB is finished. Page 48 of 51

DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______Major weakness of HoB option is that investment level in needed machinery requires higher price of delivered straw due to reduced quantities compared to CHP. As mentioned, there are favourable programs such as IPARD or Prosperitaty which can support procurement of needed machinery, and reduce the investment costs, along with guarantee options from Guaranty fund of Vojvodina. For both options general weakness is that, although there are experience straw supply companies in other parts of Vojvodina, there are not much local companies with experience in straw mobilization. Plus, general experience in corn straw mobilization is low in Vojvodina. Experience exchange and provision of training and best practise examples organized by CHP/HoB developers or supporting organizations can be used in this respect to increase farmers and suppliers’ capacities for corn mobilization and capacities of local companies to develop for efficient biomass supply.

Major opportunities in both cases are profitability of straw supply business, development of local suppliers and opportunity to set up a cooperation model and enlargement of the operations to other markets. Considering the availability of straw, potential start of supply to Senta, could develop supply chains to the extent they become triggering factor for other similar investments (CHP or HoB) in the vicinity of Senta (Coka, Ada, Kanjiza, Novi Knezevac, Kikinda, Subotica, Becej, etc..).

Major threats are similar in CHP and HoB options. One the major ones is negative attitude of agricultural advisory service toward mobilization and combustion of harvesting residues, instead of ploughing in these residues as fertilizers. This attitude in some cases reflects on farmers’ attitude, which either refuse selling harvesting residues, or claim compensation for the residues higher than the market prices. This threat can be eliminated to certain extent if agricultural service providers are more informed, educated or trained about agricultural biomass utilization advantages and mobilization. Especially since, there are no clear scientific findings about negative aspects of agro biomass removal on soil fertility. Further research and field tests on the matter should be supported or organized and results of similar researchers already done should be communicated to farmers and promoted. The other major threat is in the straw price escalation in case of increased demand for other biofuels production or development of other CHPs or HoBs. Finally, straw supply is feasible and financially viable in case of fair prices. This Study suggested 40EUR per ton for CHP or 44EUR per ton for HoB. However, such price of straw might not meet investors’ expectations in terms of CHP or HoB operations profitability, considering the level of Feed in tariffs or heating prices and especially possibilities to consume heat energy throughout the whole year. This, however, needs to be a subject of Feasibility Study for Senta CHP or HoB development.

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______13. Literature and Sources

Agricultural Census for Serbia. Serbian Statistical Office - http://popispoljoprivrede.stat.rs/ Brkic, M. Costs of biomass preparation for energy production. http://agrovizija.rs/teme/obnovljivi_izvori.php?subaction=showfull&id=1379932648&ucat=6&template=agro vizija& Faculty of technical Sciences. Martinov, M., Viskovic, M., Bojic, S., Dumnic, B., Golub, M., Krstic, J. 2016. Study report: Study of Spatial Placement of Public Storage for Agriculture Biomass in Vojvodina. Provincial Secretary for Energy and Mineral Resources of Vojvodina; Faculty of technical Sciences. Martinov, M., Viskovic, Djatkov, Dj, Golub, M., Krstic, J. 2016. Study on Collecting, Storing and Processing of Corn Stalk as Energy Source and Biofuel Raw Material in Vojvodina. Provincial Secretary for Energy and Mineral Resources of Vojvodina; Faculty of Technical Sciences Novi Sad, Center for Energy Efficiency. 2010. Development of Biomass Market in Vojvodina.. Gvozdenac, D. 2010. Study report: “Development of Biomass Market in Vojvodina”, University of Novi Sad, Faculty of Technical Sciences, Provincial Centre for Energy Efficiency , Novi Sad, 2010; Kaltschmitt, Hartmann, Hofbauer. EnergieausBiomasse.Springer, 2009; Regions and Municipalities in Serbia 2011, 2012, 2013, 2014 and 2015. Serbian Statistical Office – http://webrzs.stat.gov.rs/WebSite/Public/PageView.aspx?pKey=711&URL=http://pod2.stat.gov.rs/Elektrons kaBiblioteka2/Pretraga.aspx?pubType=1 Regulation on Specific Measures on Fire Protection in Agriculture, Official Gazette of The Republic of Serbia No.27/84. Zekic, V., Milic, D., Tica, N. Costs of corn straw preparation for energy production. http://agrovizija.rs/teme/obnovljivi_izvori.php?subaction=showfull&id=1364592396&ucat=6&template=agro vizija& http://www.foragrobio.rs/ http://www.humimeter.com/foods/humimeter-fl1-hay-moisture-meter/ http://www.garfondapv.org.rs/portfolio/konkurs-za-odobravanje-garancija-za-obezbedenje-dugorocnih- kredita-za-nabavku-nove-poljoprivredne-mehanizacije-i-opreme/ http://www.mpzzs.gov.rs/wp- content/uploads/datoteke/korisna_dokumenta/Serbia_IPARD_II_Program_finalni_prevod- Korigovano_20_04_2015.pdf http://popis2011.stat.rs/?page_id=2162 http://www.prosperitati.rs/sr http://subvencije.rs/vesti/bespovratna-sredstva-za-prikljucnu-mehanizaciju-i-opremu-ministarstva- poljoprivrede-u-2015-oj-godini/

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DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia": Study on Agro-Biomass Potentials and Logistics for Supplying DHC Senta and/or CHP Senta ______14. Annexes

14.1 Annex I: List of interviewed persons Person Position, organization Rudolf Cegledi President of Senta Municipality Viktor Varga Member of Senta Municipality council for Economy, Agriculture and Environment Kiss Zsolt Energy Manager of Senta Municipality Ljubisa Radenkovic General Manager of Sunoko Ceselj Jovan Manager of Senta, Coka, Kanjiza and Ada Agricultural Service Dusko Kindjur Crop production advisor at Senta, Coka, Kanjiza and Ada Agricultural Service Soti Ferenc Farmer and the President of Senta Agriculture Association Gazdakor Mejnhart Laslo Farmer from Senta Szolti Andre Farmer from Senta Balog Tibor Farmer from Tornjos, Senta Mladen Jovanovic Manager of Victoria Logistics – straw supplier Branko Maljkovic Manager of Biomove doo – straw supplier Dejan Djurisic Betacorn doo – straw supplier Hrvoja Dorotic Mediland doo – straw supplier Bun Petar Individual straw suppliers Vasa Poljanski Individual straw suppliers Sreckov Dragan Individual straw suppliers Dusan Erdeljan General Manager of Titan Machinery

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