Biogas raw materials mapping for Tartu city and region and business plan for production plant This publication has been produced with the assistance of the European Union (http://europa.eu). The content of this publication is the sole responsibility of Baltic Biogas Bus and can in no way be taken to reflect the views of the European Union." 1 Author: SEI Tallinn, ERKAS Valduse OÜ, Mõnus Minek OÜ Project Manager: Jaanus Tamm, Tartu City Government Date: 21.08.2012 Reviewed by: Jaanus Tamm, Tartu City Government 2 Contents Summary.....................................................................................................................................................6 A.AVAILABILITY OF BIOGAS RAW MATERIAL IN TARTU CITY AND COUNTY. ITS USAGE IN PRODUCING FUEL FOR TARTU CITY BUSES.......................................................................................................................8 1.Purpose and scope of the study...............................................................................................................8 2.Methodology............................................................................................................................................9 3.Analysis of mixed municipal waste.........................................................................................................10 4Overview of biogas raw material generated in Tartu City and County....................................................23 5Cost, availability and procurement terms of biogas raw material...........................................................39 6Estimated amount of biogas....................................................................................................................60 7Summary..................................................................................................................................................65 ANNEX A-1 – Summary of the results of the sorting study by study periods.............................................71 ANNEX A-2 – Waste generation forecast for 2010-2020...........................................................................73 B. FEASIBILITY AND PROFITABILITY STUDY ON CONSTRUCTION OF A BIOGAS PLANT TO PRODUCE FUEL FOR TARTU CITY BUSES..............................................................................................................................74 1.Objectives and Research Questions........................................................................................................74 2.Methodology..........................................................................................................................................75 3.Analysis of existing situation...................................................................................................................76 4.Technical, structural, environmental and safety requirements of biogas plant construction.................89 5.Technology and production process.......................................................................................................90 6.Target Groups and Client Base..............................................................................................................104 7Competition analysis.............................................................................................................................107 8.Financial Analysis and Evaluation of Financial Perspectives.................................................................113 9.Risk Analysis..........................................................................................................................................116 10.Environmental Impacts.......................................................................................................................119 11.Summary.............................................................................................................................................129 Used Literature and Sources....................................................................................................................131 ANNEX B-1 Terms of Reference for Compiling a Feasibility-Profitability Analysis for the Biogas Plant...132 ANNEX B-2 Control-Sheet of Environmental Impact Pre-Assessment ....................................................134 3 Financial Analysis and Financial Perspectives. Establishing a Biogas Plant for the Production of Fuel for Tartu City Transport ................................................................................................................................138 1. Introduction.........................................................................................................................................138 2. Method................................................................................................................................................139 3. Basic data.............................................................................................................................................140 4. Financial analysis.................................................................................................................................141 5. Summary..............................................................................................................................................152 C. STUDY OF THE COMMERCIAL USE POSSIBILITIES OF AARDLAPALU LANDFILL GASES..........................153 1.Introduction..........................................................................................................................................155 2.Objective...............................................................................................................................................155 3.Methods...............................................................................................................................................155 4.Results..................................................................................................................................................161 5. Summary and recommendations........................................................................................................176 Annex C-1. Initial task to Tartu City Government procurement for the “Carrying out the commercial possibilities of Aardlapalu landfill gases study”.......................................................................................183 Annex C-2. The location of the landfill gas pipeline exiting Aardlapalu region landfill............................187 Annex C-3. Estimated production of landfill gases in Aardlapalu until 2050...........................................188 Annex C-4. Data from Pääsküla landfill....................................................................................................190 Annex C-5. Data from Jõelähtme landfill.................................................................................................191 Annex C-6. Data from Daibe (Latvia) landfill............................................................................................192 Annex C-7. Route of the possible designed pipeline................................................................................193 Annex C-8. Quotation by AS EG Võrguteenus..........................................................................................195 Annex C-9. Quotation by Metener Oy.....................................................................................................196 Annex C-10. Quotation by Xebec.............................................................................................................199 Annex C-11. Quotation by Filter AS for cogeneration device GE Jenbacher JMS 208 GS.........................200 Annex C-12. Quotation by CHP Solutions Baltic Marine Group...............................................................204 Annex C-13. Transport of purified biogas by pipeline and selling as motor fuel in gas station at 0.39EUR/m3 (6.09 kr/m3); at VAT 0.47 EUR/m3 or 0.68EUR/kg)............................................................205 Annex C-14. Transport of purified biogas by pipeline and selling as motor fuel in gas station at 0.39EUR/m3 (6.09 kr/m3); at VAT 0.47 EUR/m3 or 0.68EUR/kg); devices replaced twice......................206 Annex C-15. Landfill gas is purified on Aardlapalu, transported to city of Tartu as bottled gas and sold as motor fuel in a gas station at 0.39EUR/m3 price (not including VAT)......................................................207 4 Annex C-16. Landfill gas is purified on Aardlapalu, transported to city of Tartu as bottled gas and sold as motor fuel in a gas station at 0.39EUR/m3 price (not including VAT), devices replaced twice................208 Annex C-17. Landfill gas is purified on Aardlapalu, transported to city of Tartu as bottled gas and sold as motor fuel in a gas station at 0.39EUR/m3 price (not including VAT), maximal cost 0.3EUR/m3 per landfill gas Nm3...................................................................................................................................................209 Annex C-18. Landfill gas will be purified in Aardlapalu, transported to Roiu category c natural gas network by pipeline at 0.39EUR/m3 selling price....................................................................................210 Annex C-19. Landfill gas will be purified in Aardlapalu, transported to Roiu category c natural gas network by pipeline (at natural gas pipeline manager network service