Production of energy from the biomass - an option for the sustainable development of industrial land SEGI-AT Sp. z o. o. Energy from the biomass 2 Main idea of the project • Creating an integral system of renewable energy production comprising 2 main elements: – Pellets production line (production capacity: 1 t/h) – Plantation of an energy plant – a hollyhock species Sida hermaphrodita as a source of biomass for pellets production • within the industrial area SEGI-AT Sp. z o. o. Energy from the biomass 3 Project developer Limited partnership founded for the purpose of the project: • SEGI-AT Sp. z o. o. (Ltd.) • KGHM Polska S.A. • Other investors SEGI-AT Sp. z o. o. Energy from the biomass 4 Shareholders Shareholders Initial capital: 670.000 EUR 20% 40% SEGI-AT KGHM Other investors 40% SEGI-AT Sp. z o. o. Energy from the biomass 5 Location of the project • South-western Poland • community Rudna with a deteriorating agriculture and industrial areas • High unemployment rate: ca. 20% • Protective area around copper works and the flotation waste reservoir (ca. 14 km2) SEGI-AT Sp. z o. o. Energy from the biomass 6 Plantation of Sida hermaphrodita (1) • size: 300 ha (ca. 25.000 plants per ha) • very high annual yields (up to > 20 t dry biomass/ha) • low climate and soil requirements • suitable for industrial land • easy in cultivation, traditional methods • low moisture content in the biomass (25%) • good parameters as a fuel (comparable with wood) SEGI-AT Sp. z o. o. Energy from the biomass 7 Unique annual productivity - compared with Salix SEGI-AT Sp. z o. o. Energy from the biomass 8 Plantation of Sida hermaphrodita (2) • • • • harvesting: December – March stored in the open air easily cut into pieces raw material for pellets production in form of chips • cost of dry biomass production: 25 EUR/t SEGI-AT Sp. z o. o. Energy from the biomass 9 Sida hermaphrodita – an energy plant SEGI-AT Sp. z o. o. Energy from the biomass 10 Plantation of Sida hermaphrodita Spring SEGI-AT Sp. z o. o. Autumn Energy from the biomass 11 Pelleting plant (1) • Placed in the vicinity of the plantation within the existing infrastructure • Production capacity: 1 t/h • Expected annual output: 6000 t pellets • Energy consumption: 600 MWh/year • Energy output from the produced pellets – ca. 30.000 MWh/year (=108.000 GJ/year) SEGI-AT Sp. z o. o. Energy from the biomass 12 Pellets production line SEGI-AT Sp. z o. o. Energy from the biomass 13 Pelleting plant (2) • Consists of 3 main elements: – a dryer – hammer mill – pellet mill • Raw material supply for pellets production: – In the initial stage: waste wood from the wood industry – In the long run (after 2-3 years` operation): biomass of Sida hermaphrodita SEGI-AT Sp. z o. o. Energy from the biomass 14 High density pellets – environmentally friendly solid bio-fuel, very comfortable in use for both households and industrial plants SEGI-AT Sp. z o. o. Energy from the biomass 15 Product characteristics • • • • • • • diameter: 6-8 mm length: 2-3 cm density: 1,15 kg/m3 calorific value: 18 MJ/kg low ash content (0,5% - 1%) without binding agents high grade of homogeneity SEGI-AT Sp. z o. o. Energy from the biomass 16 Financial details (1) • Total cost of the investment: 1 mln EUR over 2 years (2005-2006) – Pellet production plant: 650.000 EUR – Plantation: 350.000 EUR • Initial capital of a new SEGI-KGHM partnership: 670.000 EUR • Grant in frames of EU structural funds and PHARE Programme SEGI-AT Sp. z o. o. Energy from the biomass 17 Financial details (2) • Annual operating costs: 330.000 EUR • Annual revenues from pellets sales: 480.000 EUR (80 EUR/t) • Annual operating profit: 150.000 EUR SEGI-AT Sp. z o. o. Energy from the biomass 18 Prospects for the future • EU target: 12% energy from RES by 2010 • Polish Strategy for Development of Renewable Energy Sources sets following targets: – 7,5% energy from RES by 2010 – 14% energy from RES by 2020 • Biomass = over 90% RES in Poland SEGI-AT Sp. z o. o. Energy from the biomass 19 Comparison of different energy generation systems in family houses Type of fuel Pellets Gas Oil Cost of 1 GJ of energy [EUR] 5 8 10 SEGI-AT Sp. z o. o. Energy from the biomass 20 Risks • Grant for the project not awarded RE: search for additional investors • Incompetitiveness of bio-fuel on the Polish market RE: focus on foreign markets, search for pellets consumers • Lower than expected productivity of Sida hermaphrodita plantation RE: supplementing Sida biomass with waste wood or other energy plants SEGI-AT Sp. z o. o. Energy from the biomass 21 Future developments (1) • Establishing a network of local pelleting plants (1-2 t/h) combined with a system of Sida hermaphrodita plantations • Pellets for the individual use (family houses) • Segi-KGHM partnership as a pilot project – model system for the production of renewable energy from the biomass • Searching for investors for projects based on a similar scenario SEGI-AT Sp. z o. o. Energy from the biomass 22 Future developments (2) • In the long run: developing pellet market • Modernisation of small district heating systems (power of several MW) as well as heating plants (200 kW - 1 MW) in industrial plants and public utilities (schools, hospitals etc.) • Package offer: heating plant for pellets + continuous supply of fuel • Looking for partners offering technologies of pellets’ combustion to apply in such heating plants SEGI-AT Sp. z o. o. Energy from the biomass 23 Questions ??? SEGI-AT Sp. z o. o. Energy from the biomass 24