JI PROJECTS IN CZECH REPUBLIC

Project : Biomass energy portfolio

Contracted amount:  522,320 ERUs

Supplier (Contractor):  Bioheat International

Project type: Energy - renewable sources

Validator: SGS 

Donor country:  The Netherlands

Sponsor : SenterNovem purchases the emission reduction generated by this project

Source: www.carboncredits.nl

Summary

In this project Bioheat International BV implemented a portfolio of 9 biomass energy projects in the Czech Republic. These projects mainly consist of a replacement, renewal, extension or new construction of municipal heating systems, where biomass (wood and straw) boilers will replace old coal or gas-based boiler systems. The owners of the systems are mainly municipalities; two of them are private companies. In a few projects a co-generation system is installed for the production of heat and power. The thermal capacity of the installations ranges from 0.6 MWth to about 24 MWth. The total thermal capacity of the projects amounts to 130 MWth. This project has been one of the first projects contracted by SenterNovem.

Justification

The Czech Republic has a big potential for Joint Implementation activities in the area of renewable resources, specifically biomass. The estimated potential increase of biomass use for energy purposes in the Czech Republic is at least 300% within the next 10 years.

The highest potential is in municipal sphere that has vast unused resources and high demand for new energy sources, especially for heating. A support program is offered by the State Environmental Fund (SEF) for this sector. Its budget has been around EUR 10 million per year, providing grants and loans covering as much as 80% of the investment costs of selected projects. However, despite these subsidies, many municipalities are unable to invest into new bio-energy installations because of their very limited annual budget. A Joint Implementation funding of bio-energy projects is a supplement to the national support program. Such combination would lead to an increased number of implemented projects. At the same time, the large proportion of the state-guaranteed financing is increasing the likelihood of project feasibility and emission reduction potential to a maximum.

Project partners

Bioheat International BV is a spinoff company of Biomass Technology Group BV, a Dutch firm of consultants, technology and business developers, researchers and engineers in sustainable energy production technologies, with a strong emphasis on energy from biomass and waste. The motivation of BTG is its ambition to establish itself as the leading bio-energy project developer in the Czech Republic.

Most of the project partners are municipalities. Above, there are two private companies, a state-owned hospital and a house for seniors. The relationships between BTG and the project partners have been gradually establishing since the implementation of a PSO project in Hostetin, which started in 1998.

Project description

The project consists of a portfolio of nine biomass energy projects in the range from 0.6 MWth to 24 MWth. Most of the projects concern the installation of biomass fuelled heat boilers. All of the projects of this portfolio are of the same general design. They all include a biomass boiler and some include also a steam turbine for cogeneration and/or a new heat distribution system. A computer control system is a standard component. The technologies employed in these projects are all commercially proved and as such do not represent any developmental uncertainty.

There are a number of technology manufacturers in the Czech Republic or elsewhere in Europe (mainly Austria) that will supply the technologies. It is anticipated that the project partners will carry out the selection of technology suppliers, in which BTG will advise them. The municipalities are obliged to select the supplier through a public tender. The first projects were implemented in 2001 and the last in 2004.

Emission reduction

The baseline scenario chosen by BTG is that heat production will continue using individual stoves and/or central boilers with fossil fuels of the consumption proportion as in present configuration. This will result in CO2 emissions. The business as usual scenario does not foresee much change in the use of coal. It is certainly not expected that the government during 2008 or up to 2012 will forbid use of coal.

In the baseline situation, biomass will be dumped, resulting in CH4 emissions caused by the fermentation of the biomass. Dumping organic materials is a common practice in the Czech Republic. Despite the fact that the countrys legislation intensively converges to the EU principles, some environmental unfriendly practices remain and will remain unchanged until the country gains sufficient economic strength to prevent such habits directly, which is certainly beyond the time scale of the proposal. BTG assumes that residues will be dumped till biomass boilers that consume all the wastes are installed. This will not happen without a substantial financial support.

Baseline emissions are estimated to be 522,320 tons of CO2e in the period 2008-2012, of which 60% is realised by the burning of coal and 40% by the fermentation of the biomass.

As the CO2 released from the burning of biomass equals the amount of CO2 taken up by the biomass during growing, project emissions are zero.

Resulting emission reductions are estimated to be 522,320 tons CO2e. The portfolio character brings the advantage of increasing the chance of realising emission reductions in given circumstances to a maximum. In general, the portfolio has a buffering capacity that allows individual project failures not affecting the overall emission reduction delivery. In particular, as soon as a particular project appears failing, it will be replaced by another suitable candidate of similar characteristics.