STUDY ON AGRO-BIOMASS POTENTIALS AND LOGISTICS FOR SUPPLYING HEAT ONLY PRODUCTION SENTA AND/OR COMBINED HEAT AND POWER PRODUCTION IN SENTA Photos by Foragrobio cc doo © 2016 GIZ DKTI 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 Page 2 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 ________________________________________________________________________________________________ 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 .....................................................................