1. 1 CASE STUDY OF FUEL SWITCH IN THE LUDZA BOILER HOUSE Edgars Vīgants director of Ludzas Bio-Enerģija Latvia Bioenergy Association Latvian District Heating Association “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

2. 2 Content Introduction Technical solutions Securing of Biomass Operational results New experience Ddifferent biomass impact analise Conclusions “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

3. 3 Boiler house grouping after consumed fuel type Source: LR Ministry of Economics “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

4. 4 Potential of Latvian energy wood 12,6 mill. m 3 c /year 30 TWh/year Forest area: “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

5. 5 Cost comparison of different fuels “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

6. 6 Location Ludza “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

7. 7 LindeksESSENT supported by Dutch Government Municipality of Ludza Ludzas Bio-Energija Heat production 14 MW Supply of wood biomasss Biofuel Light oil Heat energy distribution Heat energy > 29000 MWh/year Investor Heat end users Co-operation partners “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

8. 8 Erection of new boiler house Installation was finished in December 2000. Supplier of boiler house equipment was Dutch company KARA Energy Systems. Building works were performed by local company Valmieras SCO centrs.

9. 9 Technical solution Diesel boiler 7 MW Wood boiler Transport system Diesel oil Flue gas filter Heat exchangers 2x8 MW Heat meters Fuel tank 8 MW Wood chips Open storage for wood chips 7000 m 3 Wood chips storage with walking floor Network pumps Chimney District heating grid Property of Ludza municipality Property of LBE

10. LBE boiler house (Ludza) Lindeks - wood processing (Ludza, 8 km) Verems - plywood production (Rezekne district, 27 km) Nomis - wood processing and forestry (Rezekne district, 45 km) Junions - wood processing (Ludza, 2 km) Ludzas MRS - wood processing and forestry (Ludza district, 20-40 km) Graudi - cleaning of roadsides/under power lines (Ludza district, up to 40 km) Lapegles 2 - forestry (Ludza district, 15 km) Vels 2 - wood processing and forestry (Daugavpils and Kraslava district, up to 120 km) The most of suppliers are situated in 45 km radius Logistics of Biomass 10 “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

11. 11 Securing of biomass Initially agreement on wood fuel supply was concluded between LBE and biggest local wood processing company LINDEKS The contract term is 15 years Payments for the biomass were made according to produced MWh of heat Fuel moisture 40-60% on wet base On 2005 Lindeks reduced amount of output

12. 12 Securing of biomass Payment for delivered biomass now is made per loose cubic meter. Fuel moisture 20-55% on wet base. For reduction of the risk related to only one supplier, we have agreed that part of biomass is supplied by alternative suppliers – the biggest plywood producer “Latvijas Finieris” and other local companies.

13. 13 Looking a hed Wood chips from forestry Actual cost ~ 5,5 LVL /m 3 loose “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

14. 14 Wood chips from wood-processing (ashes under 1,5 %) Wood chips from bushes (ashes under 3 %) Wood chips from forestry (ashes under 20 %) Securing of biomass “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

15. 15 Fuel balance Diesel oil, 30 Ls/MWh (43 EUR/MWh) 2%2% 98%98% Estimated Operational results Fact 2008 75% 25% Wood fuel, 9,50 Ls/MWh (13,57 EUR/MWh) “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

16. 16 Use of biomass and diesel fuel “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

17. 17 Optimization of wood fuel consumption “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

18. 18 PositionsInitial situation 2000New situation 2001 Fuel Mazut (heavy oil)Wood fuel, diesel oil Equipment Steam boilers produced in 1967 with a total capacity 55 tons/h New boiler equipment with a total capacity 15 MW Efficiency 65 %85 % Employees 188 Heat price 20,00 Ls/MWh - cost price (28,57 EUR/MWh) 13,67 Ls/MWh – tariff (19,53 EUR/MWh) Emissions CO 2 13 000 t/year SO 2 220 t/year SO 2 0,5 t/year (440 x) CO 2 175 t/year (74 x) EUA (2005-2007) 39000 Benefits “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

19. 19 Efficiency versus moisture content “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

20. 20 Fuel costs depending on the ash content of wood chip “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

21. 21 Various types of biomass use “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

22. 22 Utilization factor for biomass boiler May 6-7, 2009, Riga “RTU Int. Conference “Wood Fuel Standards. Combustion”

23. 23 Operation with no scheduled boiler cleaning Position Chips from forest (ashes under 20 %) Chips from bushes (ashes under 3 %) Chips from wood- processing (ashes under 1,5 %) General indicators Particular indicators, Ls/MWh Wood chips price, excl. Ls/ loose m 3 5,506,007,00-- Wood chips amount, %00100 - Wood chips amount, loose m 3 0043750 - Ash amount, t00167 - Ash transportation expenses, Ls003664 0,116 Wood chip expenses, excl. VAT, Ls00306250 9,72 Diesel fuel expenses, excl. VAT, Ls000 Total expenses, excl. VAT, Ls3099149,83 “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

24. 24 Operation with 3 scheduled boiler cleanings Position Chips from forest (ashes under 20 %) Chips from bushes (ashes under 3 %) Chips from wood- processing (ashes under 1,5 %) General indicators Particular indicators, Ls/MWh Wood chips price, excl. Ls/ loose m 3 5,506,007,00-- Wood chips amount, %203050100- Wood chips amount, loose m 3 9692135002187545067- Ash amount, t49210383678- Ash transportation expenses, Ls1082322611832149170,473 Wood chip expenses, excl. VAT, Ls53306810001531252874319,12 Diesel fuel expenses, excl. VAT, Ls26250 0,83 Total expenses, excl. VAT, Ls32859810,43 “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

25. 25 Specific cost changes depending from wood chip source “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

26. 26 Comparison of heat tariffs “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

27. 27 Patent for an invention A group of authors:  RTU VASSI  SIA «Ludzas Bio-Enerģija»  AS Komforts “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

28. 2011.gada 22., 23. februāris, Rīga Enerģētikas politika un klimata aizsardzība – Kur atrodamies 20 gadus pēc Rio? 28 Flue gas condenser

29. 29 Assembling of condenser “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

30. 30 Benefits Consumes for 10-20% less fuel More power from boiler Fossil fuel consumption reduces by 150 tons / year GHG emission reductions of 500 tons / year Reduction of hard particle emissions Strengthening of the competitiveness Option of installing similar condensers in other boiler houses “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

31. 31 Heat production from biomass could be feasible and cost-effective In Latvia amount of sustainable wood biomass is enough Cheap fuel dos’t meen cheaper energy Conclusions “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga

32. 32 Ludzas Bio-Enerģija S. Eizensteina 29, Riga LV-1079 Phone: 67817090; fax: 67817087 E-mail: balteneko@balteneko.lvbalteneko@balteneko.lv Boiler house: Rupniecibas 2b, Ludza LV-5701 Phone: 65707182; fax: 65707181 E-mail: lbe@latnet.lvlbe@latnet.lv www.balteneko.lv Contacts “Bioenergy Promotion 2 ” The Latvian Environmental Investment Fund, October 3, 2012, Riga