Design of logistic concepts for wood biomass supply chains for district heating plants in municipalities of Priboj, Novi Pazar, Bajina Bašta and Nova Varoš 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: Damir Đaković, PhD Branka Gvozdenac Urošević, PhD Dragan Urošević, PhD January 2015 DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia" Design of logistic concepts for wood biomass supply chains for district heating plants in municipalities of Priboj, Novi Pazar, Bajina Bašta and Nova Varoš TABLE OF CONTENTS LIST OF ABBREVIATIONS .............................................................................................................................................. 4 LIST OF TABLES ............................................................................................................................................................ 5 LIST OF FIGURES .......................................................................................................................................................... 8 1. EXECUTIVE SUMMARY ........................................................................................................................................ 9 2. INTRODUCTION AND OBJECTIVE OF THE STUDY ............................................................................................... 10 2.1 SERBIAN LAW REGARDING THE USE OF BIOMASS ............................................................................................. 10 2.2 PURPOSE OF THE STUDY .................................................................................................................................. 11 3. METHODOLOGY ................................................................................................................................................ 13 3.1 DESK RESEARCH ............................................................................................................................................... 13 3.2 INTERVIEWS ..................................................................................................................................................... 13 3.3 ASSESSMENT OF AVAILABLE WOODY BIOMASS .............................................................................................. 13 3.4 MODELING LOGISTICS OF BIOMASS SUPPLY CHAIN ......................................................................................... 14 4. STAKEHOLDERS IN BIOMASS SUPPLY CHAIN ..................................................................................................... 15 4.1 ANALYSED MUNICIPALITIES ............................................................................................................................. 16 4.1.1 Priboj ........................................................................................................................................................... 16 4.1.2 Novi Pazar ................................................................................................................................................... 17 4.1.3 Bajina Bašta ................................................................................................................................................ 19 4.1.4 Nova Varoš .................................................................................................................................................. 20 4.2 SURVEY OF DISTRICT HEATING SYSTEMS FOR ANALYSED LOCATIONS ............................................................. 20 4.2.1 District heating system in Priboj .................................................................................................................. 21 4.2.2 District heating system in Novi Pazar .......................................................................................................... 25 4.2.3 District heating system in Bajina Bašta ....................................................................................................... 29 4.2.4 District heating system in Nova Varoš ........................................................................................................ 34 4.3 WOODY BIOMASS SUPPLY ............................................................................................................................... 38 4.3.1 Potential of woody biomass in Priboj municipality ..................................................................................... 38 4.3.2 Potential of woody biomass in Novi Pazar municipality.............................................................................. 44 4.3.3 Potential of woody biomass in Bajina Bašta municipality ........................................................................... 47 4.3.4 Potential of woody biomass in Nova Varoš municipality ............................................................................ 55 4.4 WOOD CHIPS PRODUCERS ............................................................................................................................... 61 4.4.1 Wood chips producers in Priboj municipality .............................................................................................. 62 4.4.2 Wood chips producers in Novi Pazar municipality ...................................................................................... 63 4.4.3 Wood chips producers in Bajina Bašta municipality ................................................................................... 65 4.4.4 Wood chips producers in Nova Varoš municipality ..................................................................................... 67 4.4.5 Other important woody biomass users ....................................................................................................... 67 5. MODELLING OF A BIOMASS SUPPLY CHAIN ...................................................................................................... 72 5.1 BACKGROUND DATA AND INFORMATION ....................................................................................................... 72 5.2 COSTS ESTIMATION IN BIOMASS SUPPLY CHAIN ............................................................................................. 76 5.3 DESIGNING POTENTIAL BIOMASS SUPPLY CHAIN MODELS ............................................................................. 79 5.3.1 Designed Model No. 1 ................................................................................................................................. 80 5.3.2 Designed Model No. 2 ................................................................................................................................. 81 5.3.3 Designed Model No. 3 ................................................................................................................................. 81 5.3.4 Designed Model No. 4 ................................................................................................................................. 81 Page 2 of 135 DKTI (GIZ) Programme "Development of sustainable bioenergy market in Serbia" Design of logistic concepts for wood biomass supply chains for district heating plants in municipalities of Priboj, Novi Pazar, Bajina Bašta and Nova Varoš 5.4 DESIGNED POTENTIAL BIOMASS SUPPLY MODELS .......................................................................................... 82 5.4.1 Proposed biomass supply models for heating plant in Priboj ...................................................................... 82 5.4.2 Proposed biomass supply models for heating plant in Novi Pazar .............................................................. 89 5.4.3 Proposed biomass supply models for heating plant in Bajina Bašta ........................................................... 97 5.4.4 Proposed biomass supply models for heating plant in Nova Varoš .......................................................... 104 5.5 DESIGNING INTEGRATED MODELS OF BIOMASS SUPPLY CHAIN .................................................................... 110 6. SELECTION OF OPTIMAL MODELS OF BIOMASS SUPPLY CHAIN ....................................................................... 114 6.1 PROPOSED OPTIMAL MODELS ....................................................................................................................... 114 6.1.1 Optimal supply model for Priboj municipality ........................................................................................... 114 6.1.2 Optimal supply model for Novi Pazar municipality ................................................................................... 115 6.1.3 Optimal supply model for Bajina Bašta municipality ................................................................................ 116 6.1.4 Optimal supply model for Nova Varoš municipality .................................................................................. 117 7. CONTRACTING ................................................................................................................................................ 119 7.1 MODEL OF CONTRACTS BETWEEN A DISTRICT HEATING PLANT AND A BIOMASS SUPPLIER ................................................... 119 7.2 MODEL OF CONTRACTS BETWEEN BIOMASS SUPPLIERS AND OWNERS OF RAW MATERIALS ................................................. 123 8. OVERVIEW OF OBSERVED SITUATION AND IDENTIFIED LEGALE OBSTACLES ................................................... 126 8.1 MUNICIPALITY PRIBOJ ........................................................................................................................................