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Woody Biomass Potential and Logistics Study for Municipality of Gornji Milanovac

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Woody Biomass Potential and Logistics Study for Municipality of Gornji Milanovac Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Development of a Sustainable Bioenergy Market in Serbia (DKTI) WOODY BIOMASS POTENTIAL AND LOGISTICS STUDY FOR MUNICIPALITY OF GORNJI MILANOVAC PREPARED BY: Milan Malidžan, B.Sc. Economics Slaviša Vitorović, B.Sc. Mechanical Engineering November, 2017 GIZ DKTI Programme ‘Development of sustainable bioenergy market in Serbia’: Woody biomass potential and logistics study for the Municipality of Gornji Milanovac Contents 1. Definition of Tasks ........................................................................................................................... 5 2. Methodology applied ....................................................................................................................... 6 3. Executive Summary ......................................................................................................................... 7 4. Moravica District ............................................................................................................................. 10 5. Public Utility Company ‘Gornji Milanovac’ .................................................................................. 12 6. Biomass potentials and realistic biomass supply in the area of Gornji Milanovac .............. 14 6.1 Estimation of roadside and riverbed biomass ......................................................................... 18 7. Biomass market situation in the area of Gornji Milanovac and input prices ......................... 19 7.1 Wood processing industry in area of Gornji Milanovac and potential for wood chips supply ................................................................................................................................................... 22 8. Biomass supply and logistics ....................................................................................................... 26 8.1 Technical requirements and machinery in use ....................................................................... 26 8.2 Supply chain management ......................................................................................................... 30 8.3 Biomass storage .......................................................................................................................... 33 9. Legal aspects related to biomass utilization .............................................................................. 37 10. Financial analysis and economic indicators of biomass supply organization and financing options .................................................................................................................................................. 39 10.1 Investments in hardware and operational costs ................................................................... 39 10.2 Economic indicators .................................................................................................................. 40 11. Conclusion and recommendations............................................................................................ 42 12. Literature ....................................................................................................................................... 43 2 GIZ DKTI Programme ‘Development of sustainable bioenergy market in Serbia’: Woody biomass potential and logistics study for the Municipality of Gornji Milanovac List of Tables Table 1: Road distance (km) between Gornji Milanovac and neighbouring cities ................... 11 Table 2: Example of unfavourable road connections of Gornji Milanovac to the west, particularly to the Kolubara District .................................................................................................. 12 Table 3: Installed capacities operated by PUC ‘Gornji Milanovac’ ............................................. 13 Table 4: Data on forests on the territory of FEs in charge of respective area .......................... 15 Table 5: Forest area distribution by regions, municipalities and ownership ............................. 16 Table 6: Caloric value and ash content for selected wood fuels................................................. 18 Table 7: FE ‘Golija’, Ivanjica: wood sale in 2016 ........................................................................... 20 Table 8: Total wood sale in the area of 50 km road distance from Gornji Milanovac .............. 21 Table 10: Machinery necessary for biomass mobilization ........................................................... 29 Table 11: Requirements for wood chips according to SRPS EN ISO 17225-4:2015 .............. 32 Table 12: Machinery necessary for manipulation with wood chips ............................................ 39 Table 13: Annual operational costs related to manipulation with wood chips .......................... 39 Table 14: Analysis of sensitivity of fuel savings on fuels prices fluctuation- ............................. 40 Table 15: Analysis of sensitivity of fuel savings on fuels prices fluctuation- ............................. 41 List of Figures Figure 1: Position of the Moravica District on the territory of Serbia, and its municipalities ... 10 Figure 2: Position of Gornji Milanovac in central Serbia .............................................................. 11 Figure 3: Location of the boiler rooms ............................................................................................ 13 Figure 4: Forested area in Serbia .................................................................................................... 14 Figure 5: Red circle marks area at 50 km of road distance from Gornji Milanovac ................. 20 Figure 7: Supplying wood directly from forest, option I ................................................................ 30 Figure 8: Supplying wood from forest to the storage or logistic centre ...................................... 31 Figure 9: Logistics and supply chain options for supply of wood chips ..................................... 31 List of Photos Photo 1: Gornji Milanovac ................................................................................................................. 12 Photo 2: Roadside maintenance (Source: http://www.jp-gm.org)............................................... 19 Photos 3, 4: ‘Drvoprerada’, Klatićevo- wood drying kilns and covered storage ....................... 22 Photo 5: Oak round wood at ‘Drvoprerada’ .................................................................................... 22 Photos 6, 7, 8: Facilities of ‘Prezentparket’ .................................................................................... 23 Photos 9, 10, 11: Wood residuals in apple orchard by the road in a Village of Vinča (Topola), 30 km from Gornji Milanovac, November 2017 ............................................................................. 25 Photos 12, 13: Material for producing wood chips ........................................................................ 33 Photo 14: Parking lot in front of the boiler room in Železnička Street ........................................ 34 Photo 15: Boiler room besides the building of Primary School ‘Desanka Maksimović’. ......... 35 Photos16, 17: Stored wood chips .................................................................................................. 35 Photo 18; Trailer with hydraulic lifter ............................................................................................... 36 Photo 19: Tractor with telescopic handler with fork lifter .............................................................. 36 3 GIZ DKTI Programme ‘Development of sustainable bioenergy market in Serbia’: Woody biomass potential and logistics study for the Municipality of Gornji Milanovac List of Abbreviations A Annum BMZ German Federal Ministry for Economic Cooperation and Development CB Cost Benefit CC Constitutional Court DKTI German Climate Technology Initiative € EUR EU European Union FAO Food and Culture Organization FE Forest Estate FAU Forest Administration Unit GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit H Hour Ha Hectare Kg Kilogram Km Kilometre kW Kilowatt m³ cubic meter MW Megawatt No Number PC Public Company PUC Public Utility Company RS Republic of Serbia SE State Enterprise SECO State Secretariat for Economic Affairs (Switzerland) T Ton 4 GIZ DKTI Programme ‘Development of sustainable bioenergy market in Serbia’: Woody biomass potential and logistics study for the Municipality of Gornji Milanovac 1. Definition of Tasks Development of Woody biomass potential and logistics study for the Municipality of Gornji Milanovac is supported by the Programme ‘Development of a Sustainable Bioenergy Market in Serbia’, funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) under the German Climate Technology Initiative (DKTI), and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The goal of the Study is determination of realistic woody biomass potential in the Gornji Milanovac area within a radius of 50 km road distance, and provision of essential information and data for decision makers in terms of implementation of a fuel switch project- from fossil fuels, i.e. heavy oil (mazut) and coal to wood chips. It is planned the installation of 2.5 MW wood chips boiler instead of a current mazut boiler in the boiler room of Public Utility Company. Additional small boiler would replace coal boiler of 400 kW in Primary School ‘Desanka Maksimović’. Tasks and activities 1. Biomass potentials
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