Russian Forestry and Wood Supply Operations Analysis
BIOENERGY
BIOENERGY
62
Distributed and self-contained energy supply system
using local fuels:
A promising line of Russian energy sector
development in the 21st century
enormous undemanded mass generated annually
makes Russia a very interesting market in terms
of bioenergy development. One of the main goals
of the "Dvorkovich plan" is to build a domestic
biofuel market in order to generate demand, which
would push supply, helping investors to decide
on pellet and briquette facilities to be set up
in Russia.
Under the plan, lists of RF constituent members to
implement pilot bioenergy projects are prepared.
These regions will have to develop their own
regional bioenergy development programs. Many
regions of Russia already have their own programs
aimed at promoting processor chains, starting from
the production of raw timber material as such
and its processing into one or another biofuel,
up to biofuel burning at industrial or communal
energy facilities.
Timber is one of the principal types of RES
in Russia, and the waste obtained in timber
harvesting and processing can be successfully
used in energy generation. According to the State
Research Center for the Forestry and Timber Sector
of the RF Ministry of Industry and Trade, facilities
produce up to 1 million tons of wood fuel annually,
and up to 80 or 90 percent of these products are
exported abroad.
So far, the domestic wood fuel market is poorly
developed. However, several RF constituent
members are already implementing regional
programs for municipal boiler plant switchover
from coal and black oil to local wood fuel. This
should be reviewed in more detail.
ARKHANGELSK OBLAST
By 2030, in the north of Arkhangelsk Oblast it is
intended to completely give up imported black
oil fuel and diesel fuel in local energy generation,
primarily by increased use of local fuels. It is
expected that in the future, the fuel balance of
Arkhangelsk Oblast will include 54% of natural
gas, 44% of biofuel and 2% of coal.
Annually, up to 5 million m³ of wood waste
from the activity of timber industry facilities
is generated in Arkhangelsk Oblast. About 2
million m³ is used by the facilities in their own
boiler plants. Harvesting waste remains without
demand, as does the waste from the activity
of small processing facilities in communities.
Considering the available forest resources, the
government of Arkhangelsk Oblast decided to
switch the communal energy sector over to
renewable fuels.
For instance, the target program "Energy saving
and higher energy efficiency in Arkhangelsk Oblast
#6 (2015) RUSSIAN
FORESTRY
for 2010-2020" provides for the changeover to
biofuel of 101 boiler plants, the construction of
15 new boiler plants, and the construction of
grounds for temporary storage of wood waste in
the region's communities. The first results of the
program implementation in 2010-2013 were the
construction of 8 new biofuel boiler plants, the
rebuilding of 43 boiler plants for burning wood
fuel and closing down 22 obsolete loss-making
boiler plants. These actions enabled avoiding the
purchase of 51,000 tons of coal and 21,000 tons of
black oil and diesel fuel. The resulting operating
cost saving was 141 million rubles.
By the end of 2013, the proportion of local raw
material in the overall balance of fuel consumption
by municipal energy facilities of Arkhangelsk
Oblast was increased to 37% by cutting the use
of expensive and environmentally unfriendly oil
products and coal. For comparison: in 2007, the
proportion of biofuel use did not exceed 18%.
The reconstruction of existing boiler plants,
opening of new ones and construction of
facilities to produce wood fuel are carried out
at the expense of private investors. The regional
authorities in their turn have adopted several
legislative measures to promote investments in
energy efficiency improvement projects based on
RES and local types of fuel. For example, apart
from tax benefits, companies may buy equipment
for their production using funds of the oblast
program of small and medium business support.
It should be noted that the operation of such
enterprises contributes to the development of the
entire region's economy; in the last year, the total
tax deductions by Biotoplivo alone to budgets of
all levels exceeded 2.5 million rubles. Besides,
starting up new boiler plants enables giving up
the operation of inefficient heat supply facilities.
For example, the commissioning of the Shkolnaya
boiler plant (Bereznik settlement) burning raw
stuff by Biotoplivo enabled the closing down
of three old boiler plants that burned firewood.
According to Igor Orlov, Governor of Arkhangelsk
Oblast, such boiler plants and biofuel making
facilities closed into one process chain are an
essential component of the regional energy
efficiency program. "Our goal is complete
abandonment of imported fuel, and Bereznik is a
vivid example of the clever use of forest resources.
It is a very proper and logical solution, which
should be implemented in all of the districts of
our Oblast", the head of the region commented.
Currently, this northern territory is working on
setting up a biofuel exchange - a thoughtful
and efficent system of wood waste collection
and processing.
REPUBLIC OF KOMI
The Republic of Komi is a key forest region in
the north-west of Russia, with a timber reserve
of 2.8 billion m³. The forest utilization is about
7 to 7.5 million cu. m/year. Thus, according to
experts, at least 1.5 million tons of wood waste
is generated in this RF constituent member
annually. Consequently bioenergy may become
a very important sector of the economy in Komi.
In addition, more active utilization of wood waste
as fuel will improve the region's environmental
situation, reduce the budget costs for public
utility services, create new jobs, and improve
the economic attractiveness and efficiency of
timber processing facilities and timber harvesters.
According to Alexander Gibezh, First Deputy
Minister of Industry and Transport Development of
the Republic of Komi, the bioenergy development
plan for the region may be subdivided into two
phases. The targets of the first one, for the years
2014-2016, include: the complete utilization of
wood waste from timber processing for bioenergy
generation purposes; partial replacement of
coal with fuel briquettes on communal boiler
plants; the implementation of pilot projects for
reconstruction of communal boiler plants and the
installation of heat generation equipment using
biofuel for heat supply of social objects instead
of electric heating or obsolete equipment.
Under the 2nd phase of implementation of the
region's bioenergy development plan for 2016-
2020, the raw material for biofuel will include,
apart from timber processing waste, also low-
grade timber, and waste of improvement cutting.
"The projects for the reconstruction of communal
boiler plants providing for a switchover to biofuel
must enter the systemic implementation phase,"
Alexander Gibezh adds. "Besides, it is planned
to build a system for biofuel supply to private
homes." Already today, pellets and briquettes
in the Republic of Komi are subsidized fuels for
benefit holders.
To support investment projects related to
bioenergy, the region's authorities have developed
motivation instruments. Among them are tax
benefits and subsidies up to 4 million rubles to
compensate part of the costs of biofuel facility
building. As of today, eight facilities making fuel
briquettes and pellets have been launched in
Komi.
Apart from biofuel facilities, grounds for the
temporary storage of wood waste are being opened
in the Republic. Since 2012, the total investment
of the Republic of Komi in the construction of the
bioenergy sector infrastructure has increased from
3.4 million rubles to 61.8 million rubles in 2014.
The grounds are links connecting sawmills as wood
waste suppliers and processors making biofuel.
Currently, three boilers have been switched over
to biofuel in the region, and 12 pellet boilers have
been installed. Also, feasibility studies are being
developed in the region for updating heat supply
systems for communities located in forest areas
of the Republic. In 2013, such feasibility studies
were prepared for six communities, and in 2014,
feasibility studies will be prepared for six more
localities. The development of feasibility studies is
a basis for attracting investors for participation in
the projects of boiler plant switchover to biofuel.
Apart from reconstruction of communal boiler
plants, the Republic is implementing projects of
co-generation (combined generation of electric
and heat energy). The first mini co-generation
powerplant (mini CPP) on biofuel was started by
SevLesPil in May 2014. When the company reaches
its design output, it will be able to completely
provide itself with heat and electricity, generating
12 MW of heat and up to 2.4 MW of electric power.
Under the regional program "Energy saving
and higher energy efficiency in the Republic
of Komi", one more co-generation powerplant
construction project is being implemented by
Bioenergy Company LLC.
KHANTY-MANSI AUTONOMOUS
OKRUG
-
YUGRA
During timber harvesting, nearly one fifth of the
total timber harvested goes to waste. At the sawn
timber production stage, the waste is still higher,
reaching 40%. Today, low-grade timber and timber
sawing and processing waste are partially used
in KMAO as firewood for municipal boiler plants
and in private homes, or processed into process
chips by such companies as Yugra-Plit JSC and
Surgutmebel LLC. The facilities consume about
600,000 cu. m of low-grade timber annually. It
is intended to increase the scope of processing
by launching new productions and construction
of boiler plants burning biofuel and wood chips.
According to the latest data, the region's heat
supply facilities include 17 boiler plants on wood
fuel. Surgutmebel, whose product range also
includes wood pellets, is actively implementing
and installing pellet boilers at municipal facilities
and in private homes. The company has already
installed over 100 boilers for individual use.
In order to support companies producing wood
fuel, the program "Development of the forestry and
timber sector of Khanty-Mansi Autonomous Okrug
-
- Yugra for 2014-2020" provides for subsidies for
biofuel production. A subsidy will be provided at
570 rubles per ton of fuel produced. For the year
2014, the funding for this purpose was slightly
over 3 million rubles.
PELLET BOILERS AND BOILER
PLANTS IN RUSSIA
The first pellet boiler plants appeared in the
Russian Federation in the mid-2000s, at first
in the North-Western and Central Regions, near
the first Russian pioneer mills producing wood
fuel pellets. The boilers in such boiler plants
were initially imported. Today, Russia has many
domestic manufacturers of pellet boilers, some of
them making foreign brand boilers under license,
other using their own developments. Many boilers
and boiler plants in Russia use such fuels as wood
fuel briquettes and chips.
Over 70 percent of the territory of the RF belongs
to the self-contained utility zone.
Today, the most common are two main structures of the uninterruptible
supply system (USS), centralized and distributed (localized). A centralized
system contains one uninterruptible power source (UPS), to which all loads
are connected. In a distributed system, a group of local users is supplied from
a separate (local) UPS.
Distributed power supply is a segment of power supply management comprising
small generating units and small generating sets, in particular those not
connected to centralized power mains, and using traditional fuels and renewable
energy sources. The distributed or small energy sector may develop along
the following lines: water energy, wind energy, biomass energy, solar energy,
geothermal energy, and other self-contained energy units of low or medium
capacity. Currently, over 70 countries worldwide have their national distributed
energy development programs and reliable legislative support for this trend. In
Russia, such a program and its legislative support still do not exist.
Distributed energy is the same as small or decentralized energy. Self-contained
energy means one stand-alone source generating electricity for any one object
(building or structure) and operating separately from the power grid.
It includes the regions of the Extreme North,
Far East, Siberia, Buryatia, Yakutia, Kuril Islands,
Kamchatka, and some parts of Central Russia.
According to RosTechNadzor, this area contains
over 140,000 rural inhabited localities, with about
30 million people living in it. Even in centralized
energy supply areas, the natural gas use is 52.7%,
with just 12% of villages having natural gas
supply. While, for example, in the decentralized
energy segment of Krasnoyarsk Territory, the total
installed power of diesel generator powerplants
in remote northern districts is about 30 MW.
Currently, the broad use of wood and other
local fuels in decentralized power supply of the
RF regions is restricted mainly by the lack of
profitable, easy-to-make, and easy-to-use power
generating sets of low or medium capacity: ORC
modules (Organic Rankine Cycle), Stirling engines,
and wood gas generators. The main impediment
to the broad implementation of such units in
Russia are the high prices for imported equipment
and the absence of its manufacture in the RF.
Establishing manufacture by Russian factories may
be a solution for instance by setting up joint
ventures with well-known foreign manufacturers
or by buying licenses with operating and design
documentation for its manufacturing. Such an
approach will enable the setting up of equipment
production in Russia in the near future (in 1 or 1.5
years), and later improve the licensed equipment
models and the possibility of making them on
the basis of our own developments.
According to expert estimates, the world RES
market will reach the level of 2 trillion US
dollars. The traditional users of the RES market
are the European Union, USA, Japan, and Canada;
Russia's share is just 0.1%-0.2% of the world RES
consumption. Nevertheless, Russia has set a goal
of bringing RES generation and consumption to
4.5% of the Russian energy balance by 2020. This
is set forth in RF Government Instruction No. 1-P
of 08.01.2009 "The main lines of governmental
policy in improving the power sector's energy
efficiency on the basis of renewable energy
sources for the period up to 2020." On the basis
of this instruction, it was defined what RES power
generation and consumption indicators (except
for hydro powerplants with an installed power
exceeding 25 MW) are to be reached: by 2010,
1.5%; by 2015, 2.5%; and by 2020, 4.5%.
Now regarding the use of solid biofuel made from
wood raw material. This writer believes that for
Russia, where the population of the northern and
far eastern regions is about 10 million, where
the lack of energy resources is constantly felt,
electricity is generated in a decentralized mode
and mostly by diesel generator powerplants where
diesel fuel is brought via Northern Supply Hauls
from thousands of kilometers away, and the electric
power prime cost is soaring, the use of small CPP
burning biomass will be economically justified,
both reducing the power cost and creating new
jobs. The total number of diesel powerplants
in Russia exceeds 5,000, and the annual fuel
consumption is over 6 million tons. But regions
with centralized power supply also have many
facilities where the use of RES is economically
efficient. In those regions, biomass (firewood,
chips, wood waste, pellets, and briquettes) may be
used as local fuel both for heat supply to smaller
communities and minor industrial facilities, and
for co-generation using gas generating stations
or micro turbines.
The development of the bioenergy sector in the
country will reduce CO2 emissions, improve the
environmental situation in the regions, reduce the
Housing and Utilities's energy purchase costs, and
generally improve the efficiency of the forestry
and timber sector operation.
Serghei PEREDERI,
EKO Holz-und Pellethandel, Director
RUSSIAN #6 (2015)
FORESTRY
63View entire presentation