FEASIBILITY STUDY Fuel switch from gas to a straw-fired steam boiler plant within the company Perutnina Ptuj-Topiko at the poultry processing facilities in Backa Topola prepared for: Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Dag-Hammerskjöld Weg 1-5 Postfach/ P.O.Box 5180 65760 Eschborn prepared by: Hermann Wieser Management & Renewable Energy Consultant Annastrasse 19 9210 Pörtschach am Wörthersee Austria September 2015 ______________________________________________________________________________ TABLE OF CONTENTS 1. EXECUTIVE SUMMARY ...................................................................................................................................................... 7 2. INTRODUCTION AND DEFINITION OF TASK ............................................................................................................................ 8 3. GLOBAL FRAMEWORK CONDITIONS AND BACKGROUND FOR IMPLEMENTATION OF AGRO-BIOMASS PROJECTS .................................... 8 4. ECONOMIC AND AGRIBUSINESS SNAPSHOT OF REGION BACKA TOPOLA .................................................................................... 12 5. COMPANY PERUTNINA PTUJ-TOPIKO ................................................................................................................................ 15 6. EXISTING GAS-FIRED STEAM BOILER PLANT AT PPT PROCESSING FACTORY ................................................................................. 18 6.1. ESTIMATION LOAD CURVE ...................................................................................................................................... 19 HEAT IS USED AS HOT WATER AND SATURATED STEAM WITH A PRESSURE OF 6 - 8 BAR. ........................................................................ 19 6.2. SHORT TERM PEAKS .............................................................................................................................................. 19 6.3. BASIS FOR CALCULATION OF LOAD CURVE OF TYPICAL PRODUCTION DAY .......................................................................... 20 6.4. YEARLY VARIATION / CONSIDERING MINIMAL LOAD ON WEEKENDS ................................................................................. 21 6. PROPOSED STRAW-FIRED STEAM BOILER PLANT ................................................................................................................... 22 6.1. ESTIMATION LOAD CURVE FOR AS BASIS FOR BOILER CAPACITY ....................................................................................... 22 6.2. GENERAL CONSIDERATIONS FOR STRAW STEAM BOILER CAPACITY ................................................................................... 23 6.3. PLANT TYPE A: WEISSA/S .................................................................................................................................... 24 6.3.1. STRAW BOILER PLANT FLOW CHART ................................................................................................................. 24 ................................................................................................................................................................................. 24 6.3.2. GENERAL PLANT DESCRIPTION ........................................................................................................................ 25 6.3.3. BOILER DATA .............................................................................................................................................. 26 6.3.5. STRAW DIVIDER ........................................................................................................................................... 27 6.3.6. PUSH FEEDER .............................................................................................................................................. 28 6.3.7. PUSH GRATE ............................................................................................................................................... 28 6.4. PLANT TYPE B: LIN-KA MASKINFABRIK A/S .............................................................................................................. 29 6.4.1. GENERAL DESCRIPTION ................................................................................................................................. 29 6.4.2. BOILER DATA .............................................................................................................................................. 29 6.4.3. CROSS-SECTION OF STRAW STORAGE AND ATTACHED BOILER HOUSE ...................................................................... 29 7. AGRO-BIOMASS POTENTIAL OF REGION BACKA TOPOLA ........................................................................................................ 30 8. SUSTAINABLE POTENTIAL OF STRAW SUPPLY AS AGRO-BIOMASS IN MUNICIPALITY OF BAČKA TOPOLA ........................................ 30 9. ASSESSMENT OF THE REALISTIC POTENTIAL OF AVAILABLE STRAW FOR COMBUSTION IN BIOMASS PLANTS ........................................ 31 10. PRINCIPALS TO BE FULFILLED FOR SUSTAINABLE AGRO-BIOMASS PROJECTS ................................................................................ 32 11. LEGAL ASPECTS RELATED TO STRAW AND CHICKEN LITTER COMBUSTION AS BIOMASS FUEL FOR STEAM PRODUCTION ......................... 34 12. SPECIFICATION OF FUEL TYPE ........................................................................................................................................... 37 13. AGRO BIOMASS MARKET SITUATION IN BACKA TOPOLA REGION .............................................................................................. 38 _____________________________________________________________________________ 2 14. FUEL SUPPLY SYSTEM & LOGISTICS .................................................................................................................................... 40 15. FUEL CONTRACTING AND DELIVERY ................................................................................................................................... 40 16. FUEL STORAGE .............................................................................................................................................................. 41 17. BUILDINGS ................................................................................................................................................................... 44 17.1. PLANT TYPE A: WEISSA/S - LAYOUT OF CLOSED STRAW STORAGE AND BOILER HOUSE .................................................. 44 17.2. PLANT TYPE A: WEISSA/S CROSS-SECTION OF STRAW STORAGE AND BOILER HOUSE .................................................... 45 17.3. PLANT TYPE A: LIN-KA - LAYOUT OF CLOSED STRAW STORAGE AND BOILER HOUSE ....................................................... 46 17.4. LOCATION OF BIOMASS PLANT AT PRODUCTION FACILITIES OF PERUTNINA PTUJ-TOPIKO ................................................ 47 18. ASH HANDLING ............................................................................................................................................................. 48 19. CONSIDERATION OF PRIMARY ENERGY COST AS BASIS FOR PLANT TYPE DECISION ........................................................................ 50 20. FUNDING PROGRAMS ..................................................................................................................................................... 51 20.1. EU-SUBSIDY PROGRAM IPARD 2014-2020 ........................................................................................................ 51 20.2. WESTERN BALKANS SUSTAINABLE ENERGY FINANCING (WEBSEFF) .......................................................................... 52 21. INVESTMENT COST......................................................................................................................................................... 53 22. ECONOMIC STRATEGY .................................................................................................................................................... 55 23. EVALUATION OF ECONOMIC PROFITABILITY ......................................................................................................................... 57 23.1. OPTION 3: LINKA TECHNOLOGY, MANUAL STRAW HANDLING, NO GRANT ................................................................... 57 23.2. OPTION 4: LINKA TECHNOLOGY, MANUAL STRAW HANDLING, IPARD GRANT ............................................................. 59 24. CO2 SAVINGS .............................................................................................................................................................. 63 25. INVESTMENT STRUCTURE ................................................................................................................................................ 63 26. TIME SCHEDULE FOR REALISATION OF THE PROJECT AND NEXT STEPS ........................................................................................ 64 27. SOURCES ..................................................................................................................................................................... 65 ANNEX 1: LIN-KA A/S: ENLARGED VIEW OF CLOSED STRAW STORAGE AND BOILER HOUSE .................................................................. 66 ANNEX 2: LIN-KA A/S: LAYOUT PLAN OF STRAW STORAGE AND BOILER HOUSE ................................................................................. 67 ANNEX 3: ECONOMIC PROFITABILITY ANALYSIS