TRENDS IN BIOMASS RELATED ENTERPRISES

Existing Legislative and

Financial Frameworks in the target regions

EXISTING LEGISLATIVE AND FINANCIAL

FRAMEWORKS

IN BURGOS, TAMPERE, POMURJE, CENTRAL HUNGARY,

NORDTHUERINGEN AND BRANDENBURG REGIONS

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CONTENTS

SUMMARY ......................................................................................................................................................... 6

1.

INTRODUCTION ......................................................................................................................................13

2.

BIOMASS FRAMEWORKS IN THE TARGET REGIONS ........................................................................14

2.1

B

IOMASS

F

RAMEWORK IN

B

URGOS

..........................................................................................................14

2.1.1

T

ECHNOLOGICAL

F

RAMEWORK

................................................................................................................14

2.1.1.1

K IND OF EXISTENT INSTALLATIONS (T ECHNOLOGIES ) ................................................................................... 14

2.1.1.2

C URRENT RATE OF INSTALLATIONS IN B URGOS ............................................................................................ 17

2.1.1.3

C OMMERCIALISATION OF THESE TECHNOLOGIES LOCATED IN THE TARGET REGIONS . .................................... 17

2.1.2

S OCIAL F RAMEWORK ..............................................................................................................................18

2.1.2.1

I NITIATIVES AIMED AT THE PROMOTION OF THE USE OF BIOMASS IN THE PARTICIPATING REGIONS ................... 18

2.1.2.2

C URRENT SITUATION OF THE PROMOTION OF THERMAL AND ELECTRIC BIOMASS . .......................................... 18

2.1.3

E

CONOMICAL

F

RAMEWORK

.....................................................................................................................19

2.1.3.1

F INANCING AND SUBSIDIES FOR THE INSTALLATION OF DOMESTIC BOILERS . .................................................. 19

2.1.3.2

F INANCING AND SUBSIDIES FOR BIG PROJECTS (T HERMAL AND ELECTRIC POWER ) ........................................ 24

2.1.3.3

F INANCING AND SUBSIDIES FOR BUSINESS AND COMPANIES LINKED TO THE BIOMASS SECTOR . ...................... 24

2.1.3.4

F INANCING AND SUBSIDIES FOR ENTREPRENEURS RELATED TO THE BIOMASS SECTOR . ................................. 27

2.1.3.5

F INANCING AND SUBSIDIES FOR FORESTRY MACHINERY ................................................................................ 31

2.1.4

L EGISLATIVE F RAMEWORK ......................................................................................................................34

2.1.4.1

E LECTRICAL APPLICATIONS OF BIOMASS ..................................................................................................... 34

2.1.4.1.1

O RDINANCES AND / OR SPECIFIC LEGISLATION .......................................................................................... 34

2.1.4.1.2

2.1.4.1.3

U

P

SAGE OF THE ELECTRICITY PRODUCED FROM BIOMASS .......................................................................... 34

ROCESS OF PERMISSION FOR THE INSTALLATION OF BIOMASS PLANTS . .................................................. 36

2.1.4.2

T HERMAL APPLICATIONS OF BIOMASS .......................................................................................................... 38

2.1.4.2.1

2.1.4.2.2


P ROCESS OF PERMISSION FOR THE INSTALLATION OF BIOMASS PLANTS ................................................... 38

2.1.4.3

E XTRACTION OF BIOMASS OPERATIONS ....................................................................................................... 38

2.1.4.3.1

E XISTING LEGISLATION RELATED TO THE FORESTRY CLEANING ................................................................ 38

2.1.4.3.2

L OCAL ORDINANCES .............................................................................................................................. 41

2.1.5

C OMMERCIAL F RAMEWORK .....................................................................................................................41

2.1.5.1

E XISTENCE OF SELLING POINTS OF RAW MATERIAL ...................................................................................... 41

2.1.5.2

E XISTENCE OF SELLING POINTS OF PELLETS / BRIQUETTES / CHIPS .................................................................. 41

2.1.5.3

I NSTALLERS ’ NETWORK ............................................................................................................................... 42

2.2

B

IOMASS

F

RAMEWORK IN THE

T

AMPERE

R

EGION

......................................................................................43

2.2.1

T

ECHNOLOGICAL

F

RAMEWORK

................................................................................................................43

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2.2.1.1


2.2.1.2

C URRENT RATE OF INSTALLATIONS .............................................................................................................. 43

2.2.1.3


2.2.2

S

OCIAL

F

RAMEWORK

..............................................................................................................................44

2.2.2.1


2.2.2.2


2.2.3

E

CONOMICAL

F

RAMEWORK

.....................................................................................................................45

2.2.3.1


2.2.3.2


2.2.3.3


2.2.3.4

F INANCING AND SUBSIDIES FOR FORESTRY MACHINERY ................................................................................ 50

2.2.4

L EGISLATIVE F RAMEWORK ......................................................................................................................50

2.2.4.1


2.2.4.1.1


2.2.4.1.2

2.2.4.1.3

U

P


ROCESS OF PERMISSION FOR THE INSTALLATION OF BIOMASS PLANTS . .................................................. 53

2.2.4.2


2.2.4.2.1


2.2.4.2.2

P ROCESS OF PERMISSION FOR THE INSTALLATION OF BIOMASS PLANTS ................................................... 55

2.2.4.3


2.2.4.3.1


2.2.4.3.2

L OCAL ORDINANCES .............................................................................................................................. 55

2.2.5

C

OMMERCIAL

F

RAMEWORK

.....................................................................................................................55

2.2.5.1


2.2.5.2


2.2.5.3


2.3

B

IOMASS

F

RAMEWORK IN

P

OMURJE

........................................................................................................57

2.3.1

T

ECHNOLOGICAL

F

RAMEWORK

................................................................................................................57

2.3.1.1


2.3.1.2


2.3.2

S

OCIAL

F

RAMEWORK

..............................................................................................................................58

2.3.2.1


2.3.2.2


2.3.3

E CONOMICAL F RAMEWORK .....................................................................................................................60

2.3.3.1


2.3.3.2


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2.3.3.3


2.3.4

L

EGISLATIVE

F

RAMEWORK

......................................................................................................................61

2.3.4.1


2.3.4.1.1

2.3.4.1.2

O

U

RDINANCES AND / OR SPECIFIC LEGISLATION .......................................................................................... 61


2.3.4.1.3

P ROCESS OF PERMISSION APPLICATION FOR THE INSTALLATION OF BIOMASS PLANTS . ............................. 62

2.3.4.2


2.3.4.2.1


2.3.4.2.2

P ROCESS OF PERMISSION FOR THE INSTALLATION OF BIOMASS PLANTS (H EATING PRODUCERS ) .............. 64

2.3.4.3


2.3.4.3.1

2.3.4.3.2

E

L

XISTING LEGISLATION RELATED TO THE FORESTRY CLEANING

OCAL ORDINANCES

................................................................ 64

.............................................................................................................................. 64

2.3.5

C OMMERCIAL F RAMEWORK .....................................................................................................................65

2.3.5.1


2.3.5.2


2.3.5.3


2.4

B IOMASS F RAMEWORK IN THE C ENTRAL H UNGARY R EGION ......................................................................68

2.4.1

T ECHNOLOGICAL F RAMEWORK ................................................................................................................68

2.4.1.1


2.4.1.2


2.4.1.3

C OMMERCIALISATION OF THESE TECHNOLOGIES IN THE TARGET REGIONS . ................................................... 69

2.4.2

S

OCIAL

F

RAMEWORK

..............................................................................................................................69

2.4.2.1


2.4.2.2


2.4.3

E

CONOMICAL

F

RAMEWORK

.....................................................................................................................70

2.4.3.1


2.4.3.2


2.4.3.3


2.4.4

L

EGISLATIVE

F

RAMEWORK

......................................................................................................................71

2.4.4.1

O RDINANCES AND / OR SPECIFIC LEGISLATION ............................................................................................... 71

2.4.4.1.1

U SAGE OF THE ELECTRICITY PRODUCED FROM BIOMASS .......................................................................... 73

2.4.4.2


2.4.4.3


2.4.4.3.1


2.4.5

C

OMMERCIAL

F

RAMEWORK

.....................................................................................................................80

2.4.5.1


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2.5

B IOMASS F RAMEWORK IN THE B RANDENBURG R EGION AND N ORTH OF T HURINGIA R EGION (G ERMANY ) ......81

2.5.1

T ECHNOLOGICAL F RAMEWORK ................................................................................................................81

2.5.1.1


2.5.1.2


2.5.1.3


2.5.2

S

OCIAL

F

RAMEWORK

..............................................................................................................................94

2.5.2.1


2.5.2.2

C URRENT OF THE PROMOTION OF THERMAL AND ELECTRIC BIOMASS . ........................................................... 96

2.5.3

E

CONOMICAL

F

RAMEWORK

.....................................................................................................................96

2.5.3.1

F INANCING AND SUBSIDIES FOR SMALL INSTALLATIONS AND BIG PROJECTS .................................................. 96

2.5.3.2

F INANCING AND SUBSIDIES FOR THE ENTREPRENEURS RELATED TO THE BIOMASS SECTOR . ........................ 101

2.5.3.3

F INANCING AND SUBSIDIES FOR FORESTRY MACHINERY .............................................................................. 101

2.5.4

L

EGISLATIVE

F

RAMEWORK

....................................................................................................................103

2.5.4.1

E LECTRICAL APPLICATIONS OF BIOMASS ................................................................................................... 103

2.5.4.1.1

2.5.4.1.2

O

U

RDINANCES AND / OR SPECIFIC LEGISLATION ........................................................................................ 103

SAGE OF THE ELECTRICITY PRODUCED FROM BIOMASS ........................................................................ 106

2.5.4.1.3

P ROCESS OF PERMISSION FOR THE INSTALLATION OF BIOMASS PLANTS . ................................................ 107

2.5.4.2

T HERMAL APPLICATIONS OF BIOMASS ........................................................................................................ 110

2.5.4.2.1

O RDINANCES AND / OR SPECIFIC LEGISLATION ........................................................................................ 110

2.5.4.2.2

P ROCESS OF PERMISSION FOR THE INSTALLATION OF BIOMASS PLANTS ................................................. 110

2.5.4.3

O THER LAWS AND ORDINANCES REFERRING TO BIOMASS ........................................................................... 110

2.5.4.4

E XTRACTION OF BIOMASS OPERATIONS ..................................................................................................... 115

2.5.4.4.1

E XISTING LEGISLATION RELATED TO THE FORESTRY CLEANING .............................................................. 115

2.5.4.4.2

L OCAL ORDINANCES ............................................................................................................................ 115

2.5.5

C

OMMERCIAL

F

RAMEWORK

...................................................................................................................116

2.5.5.1

E XISTENCE OF SELLING POINTS OF RAW MATERIAL .................................................................................... 116

2.5.5.2

E XISTENCE OF SELLING POINTS OF PELLETS / BRIQUETTES / CHIPS ................................................................ 116

2.5.5.3

I NSTALLERS ’ NETWORK ............................................................................................................................. 118

BIBLIOGRAPHY .............................................................................................................................................119

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SUMMARY

TECHNOLOGICAL FRAMEWORK

The rate of biomass installations in the province of Burgos is very low. There are any CHP plants or power plants in the province. There are around 70 pellets heating systems in the province of Burgos. The situation in

Spain is not better, the PER (Renewable Energy Plan) established a target of 9.568 ktoe in 2010. In the period

1999-2004 the growth of biomass sector represented only the 9,0% of the objective. Nowadays a few companies are commercialising biomass related technologies in Burgos, but the number is growing due to the favourable conditions for this sector.

The biomass sector in Tampere is really developed. There are a lot of CHP plants (large and medium scale) and more than 10.000 pellet heating systems in the region. Many organizations are working with commercialisation of biomass technologies. Main influencers are Sentre Network of Business, Tekes (Finnish

Funding Agency for Technology and Innovation) and OSKE Centre of Expertise Programme. There are mainly two business development companies operating in Tampere: Hermia Business Development Ltd and

Technopolis Ventures Ltd.

Large number of installations exists in the region of Pomurje, mainly boiler on wood biomass (19.856), there are also four district heating systems and three biogas plants.

Large scale biomass related installations are not typical in Central Hungarian region. There are no installations based on power generation. Six biogas plants are settled in the region. Small scale, local level or household biomass utilization, and such smaller scale installation of technology is starting to place but still remains rare.

Germany, and more concretely Brandenburg and North Thuringia Regions, has a large number of installations and technologies. Thuringia covers 10.1% of its total primary energy supply by using renewable energies (stand 2004). Approximately 87% of them come from biomass. The biomass is divided into 9,300 TJ solid, 9,500 TJ liquid and 2,600 TJ biogas. In the North of Thuringia 392 installations with a thermal engine output of overall 15,145 kW generate power by using biomass.

In Brandenburg there are a lot of installations using renewable energies today. In the year 2006 following biomass installations were in operation:

RENEWABLE ENERGY PRODUCTION

Biogas plants

Landfill power plants

Biogas facilities

Number

55

10

15

Biomass heat and power station 17

Electr. Power in MW

32.5

22.3

10.65

156.5

Power/Year in MWh

198 250

147 180

55 380

1 173 750

CO2reducing in tonnes/year

203 405

825 646

56 820

1 204 268

In the North of Thuringia and Branderburg regions a lot of companies are working in the commercialisation of biomass technologies.

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SOCIAL FRAMEWORK

Mainly three organizations are actively promoting the use of biomass and the generation of business related biomass sector in Burgos: EREN (Castilla y León Regional Energy Agency), AGENBUR (Burgos Provincial

Energy Agency) and CEEI Burgos (Burgos Business Incubator Centre). Nevertheless, according to the interviews carried out in D9 of this project, lack of promotion was highlighted by the companies as one of the most important barriers for the development of biomass sector in the province of Burgos.

Motiva Ltd is the main promoter of use of biomass in Tampere. It promotes RES and environmental issues.

According to the companies interviewed in D9 of this project, there is too little promotion about biomass. There is lack of knowledge in many levels form official authorities to end users. More co-operations between municipalities, companies and authorities are needed.

In the region of Pomurje, there are several initiatives in order to promote biomass, such uas the National

Agency for Energy Efficiency and Renewable Energy, the government of Slovenia, the Ministry of Environment and Spatial Planning, OP ENLES the national development programme for the usage of biomass in Slovenia, the Environmental Fund of the Republic of Slovenia (EKO SKLAD) and the Technology Cluster for Energetics.

Local Energy Agency Pomurje and Development Agency Sinergija contribute actively to the development of biomass in Pomurje region. Several booklets have been published and a pilot project in Pomurje called “Smart

House”. These are the main reference points for the promotion of biomass in the region.

Promotion of the use of biomass is limited basically to professional events such as conferences, fairs, workshops… in Central Hungary Region. The general public rarely receives information on the uses and utilization of biomass. Promotion actions target those who work in the biomass industry but even these originate from the professional circles and hardly form the various relevant public institutions.

In Germany, and consequently in the regions of North Thuringia and Brandenburg, the German Federal

Government wants to heighten the amount of biomass in power supply explicit. To achieve this aim they offer different aid activities in cooperation with the BMELV (Federal Ministry for Feeding, Agriculture and Consumer

Protection). Some more aid activities are given by the BMBF (Federal Ministry for Education and Research).

Especially for the Free State of Thuringia the “Fachbeirat Nachwachsende Rohstoffe” (expert advisory committee for renewable resources) from the “Thüringer Ministerium für Landwirtschfaft, Naturschutz und

Umwelt” (TLL) has worked out a policy paper “Konzept zur Förderung der Nutzung Nachwachsender Rohstoffe im Freistaat Thüringen” to promote using biomass in the region. In Brandenburg, the farmer union

“Landesbauernverband” created an important instance, whose intention is to strengthen the economic stability of rural areas by an increased usage of energetic applications of biomass. The cluster ENO was founded in the area Barmin (Uckermark) in order to use the economical possibilities of the region in compliance to substance chain management. The Brandenburg Energy and Technology Initiative were boosted by the means of different consultation spots, competence centres, joint ventures and regional networks. Regional network in connection to the LEADER+Regions along the integrated rural development concepts are supposed to create impulses for the decentralised energetic appliance of biomass.

ECONOMICAL FRAMEWORK

In Burgos, subsidies for the installation of domestic boilers are given by the Regional Government (Junta de

Castilla y León) for municipalities, owner’s communities, natural persons, companies, SMEs, craftsmen and business associations. The total amount of these subsidies represents approximately the 30% of the total investment. Besides, in the province of Burgos, the county council give aids to municipalities which could represent the 50% of the total amount until a maximum of 12.500 €. Studies for logistic and supply of biomass are included in both lines of subventions. Domestic biomass boilers can be financed by different lines offered

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Financial Frameworks in the target regions by IDAE, Public Administration of the Ministry of Industry, Tourism and Commerce by means of soft loans, guaranteed lines of credit, fix-term deposits, third parties financing, services renting.

Big projects in Burgos are funded by National, Regional and Provincial Governments by means of agreements.

Moreover, Regional Government (Junta de Castilla y León) gives aids for the sustainable management of forest (50-70% of the total investment with a maximum amount of 40.000 €), recuperation of the forest potential and implementation of preventive measures (30-70% of the total investment with a maximum amount of 40.000

€), forestation of the agricultural lands (80% of the total costs with an annual prime of 130-305 €/Ha during the first five years and 80-400 €/Ha during the following ten years), aids for forestry (40-200 €/Ha during the first five years), subsidies for the acquisition of forest machinery (40% of the total amount with a maximum amount of 250.000 €), renovation of forest machinery (80 €/CV of power), improvement of agricultural exploitations (40-

50% of the total amount with a maximum of 200.000 €), aids for farmers (based on the PAC system). In the province of Burgos, Regional Government promotes the creation and renovation of companies related with biomass (25 % of the investment), creation of SMEs related with biomass (25 % of the investment), entrepreneurs related with biomass (fixed actives - 50%, feasibility studies - 75% and constitution costs - 75%), modernizing technology in companies (25% of the investment), innovative companies – R&D (maximum of

1.250.000 €), self-employment (maximum 10.000 €)º. It exits other aids promoted by different organization in the province: promotion of the autonomous employment promoted by the City Council of Burgos (maximum of

2.000 €), implementation and improvement of business promoted by County Council (maximum 65.000 €).

Besides, investment related with biomass can opted to loans given by ENISA and ICO.

In Tampere region, Tekes funding is aimed to companies and other associations, support especially targeted for biomass sectors is assigned through Tekes BioRefine programme. Research and development grants run form 25 to 65% of the eligible costs and loans run from 25 to 70%. Loan time is at longest 10 years. Tekes funding besides research institutes, polytechnics and universities includes research grants which range from

50-100% of eligible costs and research and development project which include 70% of subsidy and 30% of product development loans. Small and medium sized enterprises can get subsidies on basis of De Minimis rule for starting innovation operations, pre´surveys, commercialisation, piloting market survey (granted survey is maximum 50.000€ and the level of subsidy is always 50%. Finnvera is a financing company owned by the

State of Finland. It offers loans, guarantees, venture capital investments and export credit guarantee. The installation of domestic boilers can be financed by Tekes and Finnvera. Big projects for research, development and innovation are given by Tekes. For establishing a company related to biomass sector, the financing of

Tekes and Finnvera can be uses, besides, environmental subsidies are assigned in many forms:

Environmental based government subsidies are granted by Ministry of Employment and Economy, regional environmental centres, Employment and Economic centres, municipalities, Motiva Oy and Tekes. In addition government guarantees and export guarantees are granted from Finnvera. Subsidy can be applied for example to projects which are improving environmental technology development, energy saving, usage of renewable energy forms, waste disposal, air and water protection. As an example environmental subsidies for agriculture and forestry can be applied for energy plant cultivation. In Tampere it does not exist financing and subsidies for forestry machinery. Financing forestry machine can be getting through Tekes or Finnvera through different form of loans which are presented previously in this report. Energy tree subsidies can be gained in case the tree is harvested according to financing law of forestry industry from young forest nurturing object area, which is suitable for funding. Here harvesting means compiling and forest transportation of the tree which is turned over for energy usage. Energy tree harvesting subsidy is 7 Euros / m 3 and smallest supported area is 20 m 3. In case the energy tree is for private usage, subsidy is not paid. Subsidy for chipping the harvested energy tree in nurturing young forest can be got 1, 7 Euros for chipped loose cubic m 3 . Subsidy is given to the forest owner, heat entrepreneur, chipping contractor or other corporation which is supplying chip. The subsidy is applied after the user of energy tree has received the chip.

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In Pomurje Region, National Agency for Energy Efficiency and Renewable Energy (AURE) – Ministry of

Environment and Spatial Planning (MOT) offers annual incentives for the installation of boilers/heating systems on firewood, pellets and woodchips. The Enviromental Fund of the Republic of Slovenia (EKO SKLAD) offers incentives for the installations of boilers/heating systems on wood biomass.

For the development of big project, EKO SKLAD offers favourable credits for thermal and electric power station installations to municipalities, economy societies, other enterprises or individuals engaged in the biomass sector. The project “Eliminating of the gaps for enlarged use of biomass as and energy source 2002-2007 was a Government project implemented by the MOP and EKO SKLAD, cofinanced by the Global Environmental

Facility (GEF) via the United Nations Development Programme for encouraging biomass exploitation in

Slovenia. In Pomurje, besides the subsidies from AURE and EKO SKLAD, the Regional Guarantee Scheme of

Pomurje and the Regional Development Agency MURA, together with the Employment Office of Pomurje offer long-term credits and guarantees for foresting entrepreneurship in Pomurje.

In Central Hungary, a number of nationwide programmes offer considerable support to individuals and small communities for the improvement of energy efficiency, including the installation of boilers. One of the most popular such programmes is the so called NEP-2008-5 within the Energy Saving and Energy Efficiency Action

Programme, announced by the Ministry of Transport, Telecommunication and Energy. The main national program that addresses biomass as a priority area for big projects is the Environment and Energy Operational

Programme and within it the ‘Increasing renewable energy utilization’ priority. The priority focuses on the support of SMEs, local governments, municipalities, industrial / economic partnerships (energy agencies, etc.) that engage in heat or electricity or bio-ethanol production. The financial construction concentrates primarily on renewable energy production (relating to agricultural investments and developments) based on energy plants and agricultural by-products. The co-financing rate for projects under this priority varies between 10-50%. In

Central Hungary, entrepreneurs can obtain financing through national programmes just as the ones detailed above. Apart from these, companies in the biomass sector receive no fundamental subsidy only on the basis that they are engaged in biomass related activities, although the so-called single area payment scheme –

SAPS can be supplemented with other direct national subsidies in case of plant cultivation for energy purposes.

The basic conditions for financing and subsidies for small installations as well as big projects for generating thermal and electric power in Germany are given by the so called “Evaluierung von Einzelmaßnahmen zur

Nutzung erneuerbarer Energien“ (Marktanreizprogramm, Renewable Energy Incentive Program) and the Loan programme of the KfW (Reconstruction Loan Corporation). The Renewable Energy Incentive Program is a central furtherance instrument for the market penetration of installations for producing and using biogas for generating electricity or combined heat and power plants. To make capital investments possible for businesses and private households as well as to provide financial incentives, the “Bundesamt für Wirtschaft und Ausfuhrkontrolle” (BAFA, Federal Office for Economy and Export Control) provides benefits upon request.

In 2008 the aid for renewable energy in the heat market goes on with new focuses. Benefits up to 350 million

Euros are available for the Renewable Energy Incentive Program. From 2009 they will provide up to

500 million Euros per year. The aids for biomass combustion installations are splitted into a basement benefit, a bonus benefit and an innovation benefit The KfW-Förderbank (promotional bank) as a part of the KfW bank group offers programs for the fields of housing, living and energy saving that is made for financing of residential real estate investment. For private persons who wants to built or modernise a house the KfW-

Förderbank offers some credit programs. Especially for the biomass sector two of these programs could be important: the programm Ökologisches Bauen (ecological housing) and the CO

2

-

Gebäudesanierungsprogramm (CO

2

-refurbishment of buildings). In Brandenburg region exists an especial aid called REN-Program: Energy efficiency and usage of renewable energies. For starting up an entrepreneur or a company following subsidies are available in Germany: Establishment benefit from the Federal Employment office, Entrance money from the Federal Employment Office, KfW-entry fee (a credit for 3 years from the KfW

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Financial Frameworks in the target regions bank for founder of a new business), Entrepreneur credit from the KfW, Founder coaching, ERP-starting funds from the KfW within the program “ERP-Startfonds” and High-Tech founder funds (An initiative from the Federal

Government together with companies of the German industry). In the North of Thuringia investments in forest enterprises and the converting and marketing of wood take place for machines and installations for harvest wood up to 50 % of the costs. Only wood owners are eligible. The load factor has to be located predominantly in the own forest enterprise. The forest composition has to be according to the ThürWaldG. In Brandenburg currently are no subsidies for forestry machineries available.

The loan program of the KfW. The KfW-Förderbank (promotional bank) as a part of the KfW bank group offers programs for the fields of housing, living and energy saving that is made for financing of residential real estate investment. For private persons who wants to built or modernise a house the KfW-Förderbank offers some credit programs. Especially for the biomass sector two of these programs could be important: Ökologisches

Bauen (ecological housing), program numbers 144 and 145 - according to energy saving the KfW offers favourable credits for the installation of heating systems based on renewable energies and CO

2

-

Gebäudesanierungsprogramm (CO

2

-refurbishment of buildings) - the KfW offers favourable credits for activities to reduce the energy consumption of old buildings. In Brandenburg region exists an especial aid called REN-Program: Energy efficiency and usage of renewable energies. For starting up an entrepreneur or a company following subsidies are available in Germany: Establishment benefit from the Federal Employment office, Entrance money from the Federal Employment Office, KfW-entry fee (a credit for 3 years from the KfW bank for founder of a new business), Entrepreneur credit from the KfW, Founder coaching, ERP-starting funds from the KfW within the program “ERP-Startfonds” and High-Tech founder funds (An initiative from the Federal

Government together with companies of the German industry). Investments in forest enterprises and the converting and marketing of wood take place for machines and installations for harvest wood up to 50 % of the costs. Only wood owners are eligible. The load factor has to be located predominantly in the own forest enterprise. The forest composition has to be according to the ThürWaldG. Currently are no subsidies for forestry machineries available in Brandenburg.

LEGISLATIVE FRAMEWORK

The electricity produced by the biomass installations in Spain and specifically in the province of Burgos is sold to the grid in almost all cases. The law which rules the activity of production of electricity in Spain is the

Royal Decree 661/2007, of 25 th of May. The objective of this Royal Decree is to fix the economical and normative frameworks of the installations of cogeneration (production of Heating and Power – CHP Plants) and renewable energy installations. In this sense the Royal Decree splits the use of biomass into several categories. Establishing biomass plants requires special permission. These kinds of installations are established mainly in rustic ground. The environmental permits needed for the installation of biomass plants for producing electricity. These permits are given by the Regional Government (Junta de Castilla y León).

Depending on the size of the plants, the installations need one or other permits. There is no specific legislation for thermal applications of biomass. As mentioned before in the paragraph. Big installation of biomass plant for producing heat requires exactly the same application procedures as biomass plants producing electricity.

Domestic boilers do not require any environmental permit. These installations required a licence given by the

Regional Government (Junta de Castilla y León), justifying that the installation fulfil with the RITE (Regulations on Building Heating, Ventilation and Air Conditioning Installations). This law was published in the Spanish

Official State Gazette, the 29th August 2007 (Royal Decree 1027/2007). It exist several regulations that affect the use of biomass in Spain.

Tampere Region. The memo and statement of Ministry of Trade and Industry (committee) to European Union subsidization of electricity production based on renewable energy resources were given in the year of 2006.

There was detected that systems which are substantiating electricity production (e.g. input tariffs, offering competitions and green certificates) can relate also to negative effects of market development. There was

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Financial Frameworks in the target regions proposed that more deep analysis would be conducted about different acts efficiency and effects in different countries. Finnish Ministry of Trade and Industry (committee) stands for European Union Action Plan of the

Biomass. European Commission is targeting to that member countries would utilize all opportunities offered by biomass in electricity production. Directive 2001/77/EY assigned to the usage of renewable energy sources forms frames for usage of biomass in electricity production. Without using biomass achieving the targets seems impossible. Subsidy systems of the states should also take in to account that biomass usage produces both electricity and heat. In Finland it is voluntary to take part to green certificate trade. It is also possible to purchase so called green energy which is supported with tax relieves, investment and other direct subsidies.

Green certificates approves that distinct amount of the electricity is produced by renewable energy. RECS

(Renewable Energy Certificate System) continuously develop green certificate markets and removes barriers of development. In Finland there is input tariff only for peat. For electricity production from biomass there is opportunity to have subsidy for 0, 42 cents per kWh. Subsidy is 0, 69 cent per kWh if electricity is produced from wood chips and 0,25 cents per kWh if electricity is produced from recycle fuel. Selling electricity in

Finland does not demand any permits. Furthermore, any private person, association or company can sell electricity. Electricity net permit has to be applied from electricity market authority with a document which includes: applicants name and municipality, company name, in which are applicant wants to practise electricity net operations and when operations are meant to begin, if applicant is a company, cooperative association or other association replica of rules and registration has to be delivered, map of the area and information about the network where applicant is going to practise electricity net operations has to be delivered. Establishing biomass plant requires an environment permit and emitting permit. Environment permit is needed for forestry, metal and chemical industries, energy production, animal shelters and fish growing. Environment permit gives orders about e.g. extent of the operation, emits and decreasing them. Getting the permit requires that business operations do not cause health impairment or environment corruption or danger of that. Environmental protection law is a base for environment permits. Permit is demanded for new operations and essential changes in operations. Acts can not be started before achieving the permit. Environment permit application has to be made documentary to the permit authority. Applicant must pay from the permit process. In addition there is needed a building permit as well as every construction to build in Finland. Forest law is set in order to contribute economically, ecologically and socially sustainable nurture and usage in a way that forests give good profits same time as their biological multiformity is remained. This law is quite general and concerns forest logging and related operations, modernisation logging, seedling. Other law related to forestry cleaning is law about environmental effects evaluation.

Pomurje Region. According to the Slovenian energy legislation there are some ordinances and specific legislation related to electricity. Energy Act EZ-UPB2 (Official gazette of the Republic of Slovenia N o 27/2007)

– defines principals of energetic policy, rules of energetic market operation, public service implementation in the field of energetics, principles for reliable energy supply and incentives for production of electricity from

RES, including biomass. The government of Slovenia thus ensures the (re)purchase and redomptory price for electricity produced from biomass. In 2002 Regional Council of Pomurje has adopted Regional Development

Programme for the period 2007-2013, where a strong priority on the RES and RUE projects is given. The

Council has also supported the establishment of Local Energy Agency for Pomurje region. The Agency’s mission is aiming to promotion of energy efficiency and renewable energy sources in the Pomurje region.

Brandenburg and North Turingia regions. In Germany the legislative framework for using biomass is very complex. Some laws and ordinances regulate the biomass sector in Germany. The basic conditions for electrical and thermal applications of biomass were given by the EEG (Renewable Energy Sorce Act) together with the BiomasseV (Ordinance on Generation of Electricity from Biomass). Current generated from biomass falls into the scope of application of the EEG. Especially concerning to biomass the EEG defines the minimum fees and the bonuses for electricity produced from biomass. Which materials can be called biomass and belong therefore to this act is regulated in the BiomasseV. Both, EEG and BiomasseV, set the way for a climate and resources friendly energy production from renewable resources as well as from biogenous waste

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Financial Frameworks in the target regions materials. Completive to this there are many other laws and ordinances, partly even on federal state level. The most popular laws and ordinances referred to biomass are: Altholzverordnung (AltholzV, Waste Wood

Ordinance), Bioabfallverordnung (BioAbfV, Ordinance on Biowastes), Biokraftstoffquotengesetz (BioKraftQuG,

Biofuel Rate Act), Bundesimmissionsschutzgesetz (BImSchG, Federal Immission Control Act),

Düngemittelverordnung (DüMV, Fertilizer Regulation), Düngeverordnung (DüV, Fertilize Ordinance),

Energiesteuergesetz (EnergieStG, Energy Tax Act), EnergieEinsparverordnung (EnEV, Energy Saving

Ordinance), Hygieneverordnung (Hygiene Regulation), Klärschlammverodnung (AbfKlärV, Sewage Sludge

Ordinance) and Kreislaufwirtschafts- und Abfallgesetz (KrW-/AbfG, Circular Flow Economy and Waste

Management Act). Some legislation has different forms according to the regions of Germany. In the North of

Thuringia there are for example the Thüringer Altlasten und Abfallwirtschaftsgesetz (Past Pollution and Waste

Management Act for the Free State of Thuringia) and the Kreislaufwirtschafts- und Abfallsatzung

Kyffhäuserkreis (Circular Flow Economy and Waste Management Ordinance for the district Kyffhäuser). In

Brandenburg acts the Brandenburgisches Abfallgesetz (BbgAbfG) (Waste Management Act for Brandenburg).

More legislations about biomass in Germany are: Technische Anleitung (TA) Abfall (TASo, Technical

Instructions on Waste), Technische Anleitung (TA) Siedlungsabfall (TASi, Technical Instructions on Municipal

Waste), Technische Anleitung (TA) Luft (TA Luft, Technical Instructions on Air Quality Control). Related to the forestry cleaning in the Free State of Thuringia following legislations are present: Bundeswaldgesetz (Act for wood protection and for aid of forestry), Gesetz zur Änderung des Absatzfondsgesetzes und des

Holzabsatzfondsgesetzes (Act for modification of the selling fund act and for the wood selling fund act),

Gesetz über die Gemeinschaftsaufgabe, Thüringer Waldgesetz (ThürWaldG), Thüringer

Landeshaushaltsverordnung (ThürLHO). Especially for Brandenburg following acts are binding:

Brandenburger Waldgesetz (LWaldG), Landeshaushaltsordnung (LHO) Brandenburg, VO (EG) Nr. 1698/2005

“ELER-Verordnung”, VO (EG) Nr. 1974/2006 “Durchführungsverordnung”, VO (EG) Nr. 1975/2006

“Kontrollverordnung”, VO (EG) Nr. 1290/2005 “Finanzierungsverordnung” According to Germany’s extensive bureaucracy it is not easy to get authorisation for installing a biomass plant. The licensing procedures are very long and difficult. High amounts of applications have to be proposed by different agencies.

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1.

INTRODUCTION

This study has been conducted in two phases. In the first phase, all the partners of the project executed research on their own regions and after that the work package coordinator, Burgos Provincial Energy Agency, gathered the information together.

Field work, literature search and dialogue between partners and others was used to compare relevant international legislative and financial frameworks. The purpose of this report is to provide legislative and financial framework descriptions in the project partners’ regions. The objective is to discover interesting practices that could be utilized in other European regions.

The five regions around Europe under examination in this report are: Burgos in Spain, Tampere region in

Finland, Pomurje in Slovenia, Central Hungary in Hungary, and Nordthueringen and Brandenburg in Germany.

Biomass in this report is defined as organic materials, such as wood by-products and agricultural waste, which can be burned into producing energy, heat and electricity or converted into biogas. Biomass includes forest and mill residues, agricultural crops and wastes, wood and wood wastes, animal wastes, livestock operation residues, aquatic plants, fast-growing trees and plants, and municipal and industrial wastes. Biomass can be used directly or indirectly after conversion into a secondary form of energy, such as biopower, biodiesel or biogas. It is the only renewable energy source that can easily be processed into these three forms of secondary energy.

The results of this report will be the basis for the next step of the project. At this stage, partners will present the conclusions to Public Administrations and create a Development Action Plan for each region based on this report and the previous studies about biomass resources and potential in the regions as well as the trends in the biomass sectors of regions, studied previously in this project.

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2.

BIOMASS FRAMEWORKS IN THE TARGET REGIONS

This chapter contains the biomass frameworks from each region of the Biobusiness – project; Burgos in Spain,

Tampere region in Finland, Pomurje in Slovenia, Central Hungary in Hungary, and Nordthueringen and

Brandenburg in Germany.

Each region presents different frameworks for biomass, especially legislative and financing frameworks.

2.1

B IOMASS F RAMEWORK IN B URGOS

Current framework of the biomass in Spain has gathered in the year of 2004 by means of the Renewable

Energy Plan (PER 2005-2010), which fixes the targets for Spain in biomass ground from 2005 to 2010 based on the White Paper of the EU COM and the engagement assumed with the Law 54/1997, of 27th of

November, of the Electrical Sector.

Spain has positive attitude towards the strategy for biomass made by European Commission and frameworks has been made according to that but the development of this market is slow comparing with other European countries.

According to Renewable Energy Plan for Spain (2005-2010), the target for the development of biomass is established in 6.000.000 toe (5.100.000 toe associated to electrical applications and 900.000 toe in the domestic and industrial sector.

2.1.1

Technological Framework

2.1.1.1

Kind of existent installations (Technologies)

In Spain there are large scale plants (electricity production)- plants, which are using biomass, in some cases these plants are multi-fuel plants, like plants of co-combustion. There are also heating plants for woodchips 0,

5-10 MWth and heating plants for pellets 0, 1-1MWth.

Other technologies installed for private usage and e.g. company real estates, includes mainly heating systems which are using pellets.

The biomass consumption in Spain, at the end of 2004, was 4.176 ktoe. The sectors with high consumption are: domestic sector, paper, wood and food plants.

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Sector

Domestic

Paper Industry

Wood, furniture and cork industry

Food, beverage and tobacco industry

Power Plants (No CHP)

Ceramic, cement and plaster

Other Industrial Activities

Hotels and restaurants

Farms

Service Sector

Chemical Industry

Sewage treatment plant

Textile Industry

TOTAL

Toe

2.056.508 49.4

%

734.851 17.6

487.539 11.7

337.998 8.1

254.876 6.1

129.013 3.1

57.135 1.4

30.408 0.7

21.407 0.5

19.634 0.5

16.772 0.4

15.642 0.4

5.252 0.1

4.167.035

The Autonomous Communities that register the higher consumption are Andalucía, Galicia and Castilla y León

(the province of Burgos belongs to this Autonomous Community).

The biomass consumption from 1998 to 2004 has been 538 ktoe, focused mainly in electrical applications.

However, this amount is not enough to fulfil with the objective of the PER (Renewable Energy Plan) – 9.568 ktoe in 2010. Taking into account this target, the growth of biomass sector during the period 1999-2004 is only

9,0% of the objective.

YEAR 1999 2000 2001 2002 2003 2004

Electrical Applications (ktoe) 227 236 302 516 644 680

2010

Objective

5.311

Heating Applications (ktoe) 3.435 3.454 3.462 3.466 3.478 3.487 4.318

TOTAL 3.663 3.961 3.764 3.982 4.122 4.167 9.629

Electrical Applications Heating Applications TOTAL

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Heating with biomass

There were in total 287 projects in Spain in the year 2004. The main projects are domestic boilers fed with forestry wastes. We can also find some project in industry, mainly wood and agricultural industries.

Forestry Wastes

Wastes from Fruit Trees

Wastes from herbaceous crops

Wastes from wood industry

Wastes from agricultural industry

Energy crops

TOTAL

Number of projects Primary Energy (toe)

147

0

3.898

0

1

113

26

0

287

3.303

40.368

21.877

0

69.446

Table 1: Relation of project of biomass for heating in Spain (2004). Source: IDAE

The main technologies used are:

 Big combustion boilers

There are few installations all over Spain for heating multi-family houses, schools, swimming pools...

Others are connected to a district heating grid. Combustibles are mostly wood chips from forestry or industrial waste wood.

 Small combustion boilers

This kind of boilers is located in rural regions, mainly for heating single-family houses. These boilers use mainly pellets or chips because its comfortable storage. The power of these boilers is around 5 kW and

200 kW.

 Combustion boilers for straw

The use of this kind of boilers is very low, though the existence of some producers of pellets from straw in Spain.

Power with biomass

Regarding the power applications of the biomass, the assessment is even more pessimistic. The target for

2010 (5.100.000 toe) would suppose an annual growth of 425.000 toe/year, but during the period from 1999 to

2004, the growth was 468.856 toe, with an annual growth of 78.143 toe/year. In total, there were 22 projects with a total energy of 468.856 toe.

Forestry Wastes

Wastes from Fruit Trees

Wastes from herbaceous crops

Wastes from wood industry

Wastes from agricultural industry

Energy crops

TOTAL

Number of projects Primary Energy (toe)

2

0

5.773

0

1

8

11

0

22

55.500

166.578

241.005

0

468.856

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The main technologies used are:

 Steam power stations

 Alternative conversion technology

 Thermodynamically gasification

 Co-combustion

Biogas

The consumption of biogas in Spain was 266,7 toe in 2004. According to the PER (Renewable Energy Plan

2005-2010). This biogas proceeds basically from cattle wastes, urban solid residues, industrial residues, and sewage treatment plants.

Sewage Treatment Plants

Cattle Wastes

Industrial Wastes

Urban Solid Residues

TOTAL

Number of

Projects

Primary Energy

3

2

1

24

30

(toe)

3.222

3.875

1.798

177.438

186.333

Objective 2010 Fulfilment of the

(toe)

59.832

7.643

26.539

55.986

150.000 objective (%)

5,4%

50,7%

6,8%

316,9%

379,8%

2.1.1.2

Current rate of installations in Burgos

In the year 2007, there were approximately 70 real installations which have pellet heating systems, which mean a total power of 3.001,52 kW. All the installations are small size; just one installation is large (582 kW) with industrial.

Currently, there is not any large scale CHP plant in the province of Burgos. It exists an ambitious project in the municipality of Briviesca to establish a power plant using straw as fuel. The power of the plant will be 12,5

MW.

There is one installation in the city of Burgos of biogas from Urban Solid Residues. Currently the plant works partially. According to the preliminary calculations the plant could obtain 534 m3 of biogas from the urban solid residues. The capacity of the plant is 40.000 tons of residues; it means 21.360.000 m3 of biogas yearly. The foreseen electrical production is 18.000 MWh/año

2.1.1.3

Commercialisation of these technologies located in the target regions.

Until now the majority of the technology used, such as collection machinery or boilers, is imported, mainly from

Europe. However, in Castilla y Leon there are two technological centres, CIDAUT and CARTIF which are developing their own technology both in primary biomass and in gasification. CEDER is also making progress in the development of high-yield ligneous crops with proven successful results.

Within Castilla y León, there are now also several companies that are developing their own technology in boilers and auxiliary equipment.

In Burgos the first technological development initiatives in biomass plants are arising from private companies including Grupo Nicolas Correa, through its affiliate NC Service, which is currently in the R&D phase. The

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Financial Frameworks in the target regions company Tecnicas Reunidas de Automocion is also working in its own boiler, being currently in the project phase.

In addition to this there are some more companies in Burgos commercialising biomass related technologies.

Most relevant are the following ones:

 Instalaciones Campo.

 Soliclima.

 Abasol.

 COMACAL.

 FRICATEC.

 INGEA.

In parallel to the economic aspect, a strong technological development in the short term is expected in the biomass sector in the province of Burgos, which will be boosted by technology transfers and endogenous development programmes.

2.1.2

Social Framework

2.1.2.1

Initiatives aimed at the promotion of the use of biomass in the participating regions.

Mainly three organizations are actively promoting the use of biomass and the generation of businesses in biomass related sector in Burgos community. These are the following ones:

 EREN (Ente Regional de la Energia de Castilla y Leon).

 AGENBUR (Agencia Provincial de la Energia de Burgos).

 CEEI-Burgos (Centro Europeo de Empresas e innovación de Burgos).

Lately some initiatives, supported mostly by European projects, have been carried out in Burgos. In 2003

CEEI-Burgos, along with other European partners implemented the project Core Business (ALTENER programme) which promoted and communicated the use of renewable energies all along the participant communities in the project, included Burgos. Most recently RESINBUIL (IEE programme) project led by

AGENBUR along with other European partners, including CEEI-Burgos, worked in the integration of renewable energies into the building sector. Currently CEEI-Burgos is co-ordinating and developing the project

BIOBUSINESS (IEE programme) in collaboration also with AGENBUR and other partners, with the objective of fostering the creation and extension of new business in the biomass related sector.

2.1.2.2

Current situation of the promotion of thermal and electric biomass.

In accordance with the information provided by the SMEs interviewed for the elaboration of D9 it is consider essential by the private biomass sector a significant promotion effort from the Public Administrations. In such a way, these companies pointed out that PA could help to the development of biomass sector with the following means:

 Economical support for companies and general public

 Awareness campaigns and dissemination activities

 Training for general people

 Forest fires prevention measures

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 Market liberalization measures

 Public Administrations could install biomass boilers in public buildings

 More restrictive regulations

 Financial support for forest exploitation and cleaning in order to guarantee biomass supply which is essential for big projects.

Lack of promotion was highlighted by the interviewed companies as one of the most important barriers for the development of biomass sector in our community.

2.1.3

Economical Framework

2.1.3.1

Financing and subsidies for the installation of domestic boilers.

Subsidies from Regional Government

Funding for Renewable Energy actions have been transferred from the National Government -IDAE (National

Energy Agency – Instituto para la Diversificación y Ahorro Energético) - to the Autonomous Communities. The province of Burgos belongs to the Autonomous Community of Castilla y León. The Regional Government of

Castilla y León distributes the subsidies among all beneficiaries who apply for. The purpose of the subsidies to biomass projects in the autonomous community of Castilla y León is to increase the number of projects, guaranteeing the safety and quality of energy and reducing the energy dependency and emissions of the region.

In 2008, there were two different lines of subsidies including biomass as eligible projects (one of them is aimed to SMEs and the other is aimed to general public). The names of these lines in the year 2008 are:

 ORDEN EYE/2061/2007, de 19 de diciembre, por la que se convocan subvenciones públicas cofinanciadas con fondos FEDER para actuaciones en energías renovables excepto solar, para personas físicas y jurídicas que no tienen condición de empresa y para Entidades Locales.

 ORDEN EYE/2059/2007, de 19 de diciembre, por la que se convocan subvenciones públicas cofinanciadas con Fondos FEDER para actuaciones en energías renovables excepto solar, para personas y entidades que tienen la condición de empresa.

These subside lines are co-financed with the 70% of the total amount by the European Commission (FEDER

Funds).

The beneficiaries of these lines could be:

 Municipalities

 Owner’s Communities, associations and other non-profit organizations.

 Natural persons

 Companies

 SMEs

 Craftsmen

 Business Associations

The eligible actions in bioenergy sector are:

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 ER.1.1- Installations for power production that use only bioenergy sources and with an installed power lower than 1 MW.

 ER.1.2- Installations for the production and supply of heat using only bioenergy sources.

 ER.1.3- Studies about the logistic of supply for biomass and the energy uses of it and district heating installations that use only bioenergy sources.

Bioenergy Sources: Forestry wastes, energy crops, agricultural wastes, cattle wastes, biogas.

The total subside amounts for biomass actions depending on the project are the following:

ER.1.1- Installations for power production that use only bioenergy sources and with and installed power lower than 1 MW

Combustion Installations (Solid, liquid and gas fuels)

Installations of gasification/pyrolysis

ER.1.2- Installations for the production and supply of heat, using only bioenergy sources

ER.1.2.1

Biogas installations

Installations for cattle, forest or wood activities that do not use biogas

Installations for agricultural activities that do not use biogas

Connection to existent installations

ER.1.2.2

Installations that use biomass as fuel and produce heated water or air with power higher than 5 kW and lower than 15 kW

Installations that use biomass as fuel and produce heated water or air with power higher than 15 kW.

ER.1.3- Studies about the logistic of supply for biomass and the energy uses of it and district heating installations that use only bioenergy sources.

All

Subsidy Amount Maximum

600 €/kW

1.200 €/kW

100.000 €

100.000 €

Subsidy Amount Maximum

60 €/kW

90 €/kW

200 €/kW

100.000 €

100.000 €

100.000 €

35% of the eligible costs

100.000 €

1.000 € 1.000 €

2.000 €

Subsidy Amount

3.000 €/study

2.000 €

Maximum

3.000 €

Subsidies from Provincial Government

Burgos Province Government, by means of AGENBUR, publishes annually in the Official Province Bulletin subsidies aimed to public local entities in order to co-finance RUE and RES projects in the province of Burgos.

The last Call for Proposals was published in the Official Province Bulletin (BOP) in May 2008. The beneficiaries of these subsidies are municipalities with less than 20.000 inhabitants. The Call for Proposals has two lines, one for energy efficiency projects and other for renewable energy projects. The line of subsidies for renewable energy actions includes the execution of biomass projects, such as installations of boilers, studies of biomass potential, feasibility studies…

All the actuations executed during the year 2008 are eligible. Provincial Government provides both lines with

150.000 €. One beneficiary only can execute one action per line (RUE or RES). The amount to receive by each beneficiary per action is the 50% of the total eligible costs, with a maximum of 12.500 € per beneficiary.

This funding is compatible with other subsidy lines, such as the subsidies provided by the Regional

Government. One beneficiary could get the 75% of the investment from both lines of funding.

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Financing for biomass projects

Soft Loans

IDAE, Public Administration of the Ministry of Industry, Tourism and Commerce, in order to fulfil with the objectives of use of renewable energy and energy efficiency, has a line of Soft Loans to finance investments of projects of solar thermal energy, stand-alone PV, domestic installations of biomass and cogeneration installations.

Beneficiaries – General public, SMEs, communities of owners, municipalities and other public administrations expect big companies. It is available only one application for institution and/or person.

Definition of SMEs to participate in the line of soft loans of IDAE

 Number of workers < 250

 Participation of other company <25%

 Sales volumen <=50.000.000 €

 General balance <= 43.000.000 €

Investments – New equipments and installations of the following technologies:

 Type 1. Stand-Alone PV Systems

 Type 2. Installations of Solar Thermal Energy >= 20 kW

 Type 3. Cogeneration projects <= 2 MW(e)

 Type 4. Heat production for domestic use in buildings, using biomass as fuel <= 3 MW(t)

There are eligible cost the following investments: equipments and technologies of treatment and feeding of biomass, combustion systems, boilers, distribution systems, civil works (if its cost is less than the 20% of the total investment). The potential beneficiaries are communities of owners, municipalities, hotels…

The projects must be executed the following year after the signature of the loan.

Financed amounts - The total of the costs of the project could be covered by this line, with a maximum of 1,5

M € (excluded V.A.T).

TABLE FOR SOFT LOANS OF IDAE

Type 1: STAND-ALONE PV SYSTEMS

WITH BATTERIES AND AUTONOMY >= 72

HOURS

PRICE (euro/Wp)

13,00

USES

Dwellings

WITH BATTERIES AND AUTONOMY < 72

HOURS

8,50 Dwellings

WITHOUT BATTERIES 8,50 Pumps

Type 2: SOLAR THERMAL ENERGY >= 20 kW

TEMPERATURA

<=60ºC

>60ºC

USES

Domestic hot water

Underfloor Heating

Swimming Pools

Refrigeration

Heating with convectional systems

Industry

PRICE (euro/m 2 ) PRICE (euro/kW)

600,00 850,00

1.050,00 1.500,00

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COGENERATION WITH STREAM

PRODUCTION

HEAT AND COLD PRODUCTION FOR

COGENERATION

Type 3: COGENERATION <= 2MW

PRICE (euro/kW)

<=500 kW

>500 Kw and<=1000 kW

1.200,00

1.240,00

920,00

1.240,00

>1000kW and

<=2.000 kW

860,00

900,00

Type 4: HEAT PRODUCTION FOR DOMESTIC USES USING BIOMASS AS FUEL <= 3 MW

POWER PRICE (euro/kW)

<= 30 kW

>30 kW y <= 500 kW

>500 kW y <= 3.000 kW

200,00

175,00

375,00

Amortization - 11 years (grace period: one year).

Interest rate - Euribor + 0,30%, opening commission of 0,30%.

Required guarantees - For loans with a total amount lower than 120.000 euros: Guarantee of the 50% of the loan.

For loans with a total amount higher that 120.000 Euros: IDAE will analyze the applications and, depending of the economical situation of the applicant and the viability of the project, will determine the guarantee of 50% of the total amount of the loan.

Guaranteed line of credit IDAE

In order to give support to the applicants for loans of IDAE and to face the possible difficulties of applicants to obtain the guarantee for credits, IDAE has signed agreements with five banks to make easier the access of beneficiaries to the loans of IDAE. Currently, this line has finished and IDAE is revising its continuity.

IDAE evaluates the suitability of applicants once they have submitted the application via internet. IDAE requests to the applicant the documentation need to evaluate the applications. This documentation has to be submitted to the IDAE 15 days after the communication). Once the IDEA confirms the suitability of the applicant in this line, the applicant will sign the loan (3 months the latest).

IDAE needs the following data to evaluate the applications:

 General conditions - This line has been established only to guarantee the obligations of the beneficiaries of the Soft Loan Line of IDAE. The conditions of this line will be the following:

 Amount - The guarantee of credit is the 50% of the loan, if this amount is lower than 120.000 €. For higher amounts, IDAE will determine the guarantee attending to the risk and reliability of the applicant.

 Validity - unlimited, or at least two months after the end of the loan (amortization + interest)

 Opening Commission - 0,35 % of the amount of the guarantee (minimum 30 €).

 Quarterly Commission - 0,25 % while the duration of the loan

The national banks involve in this initiative are the following: o Santander Central Hispano o BBVA (Banca de Empresas y Corporaciones)

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Financial Frameworks in the target regions o La Caixa o Caja Madrid o Banco Cooperativo Español

Fix-term Deposit IDAE

This line is regulated by the Resolution 10.274/08, published in the BOE n. 57 de 6/3/08.

This is a new line of funding of IDAE for investments in projects of energy efficiency and renewable energies by means of fix-term deposits banks, with an interest rate of the 7 % annually (for its application on these investements)

IDAE support the interest rate to reach the 7%. The banks who have signed agreements with IDAE for this purpose are Santander and Banesto.

This strategy is framed in the Action Plan 2008-2012 for the Energy Efficiency in Spain and in the Renewable

Energy Plan 2005-2010 and it is new as finantial tool of collaboration public and private.

Conditions of the programme:

 Beneficiaries - general public and SMEs.

 Amount of the deposit per beneficiary - maximum of 300.000 € and minimum of 10.000 € (just one deposit per beneficiary).

 Payment of the grants of IDAE - The payment of the grants to the beneficiary is conditioned to the execution of the installations and the justification of the investments.

 Types of projects - investments in new equipments and projects of energy efficiency and renewable energies, according to Annex I of the Resolution 10.274/08.

 Application - The deposit only can be opened in two national banks, Santander and Banesto.

 Commissions - The contributions to the deposit are free of charge.

 Refund of the contribution and payment of interests - After a maximum period of two years of the deposit or if it is required by the beneficiary, the refunding of contributions will be done. After this moment, the beneficiary has tree months to justify the execution of the investment.

Third parties Financing

The main characteristics of these agreements are:

It is an integrated solution (technical and financial), giving the technical solution more suitable for each situation and finance total or partially the investment of the project. In this sense, this solution means for the beneficiary an alternative more interesting respect the conventional financing.

IDAE undertakes the project and it is not necessary the payment of the beneficiary until the end of the investment. It is not a credit line because the equipments belong to IDAE until the recover of the investment.

 IDAE recovers its investment, including its profit, by means of energy savings or generated energy. It means that the amortization of the investment does not represent higher costs by the beneficiary.

 Recovered the investment by IDAE, the installation is property of the client.

 Versatility of the FPT to adapt itself to different kind of projects.

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Financing of the project and services renting

It is a financial model of IDAE which means the signature of two agreements:

 Agreement for the cooperation and renting of services

 Agreement for the financiacing of the project

These agreements cannot be separated.

 Kind of project that can participate

This financing can be use for projects energy efficiency and renewable energies which have a previous feasibility study.

 Advantages of the this model of financing

Open system: the contractual scheme allows the adaptation of the contracts.

The payment of IDAE varies according to the energy production of the system.

Integrated solution: It allows to the promoter to have the 100% of the investment of an energetic project

(VAT Included), having the technical assessment and experience of IDAE.

2.1.3.2

Financing and subsidies for big projects (Thermal and electric power)

Currently, there is not any special line of funding for big projects (heat or power) in Burgos. National

Government and Regional Government support this kind of projects by means of agreements. IDAE (Spanish

National Energy Agency – National Government) and EREN (Regional Energy Agency – Regional

Government of Castilla y León) participate in some projects as partners. This is the case of the project for the biomass installations (power generation) in Briviesca (Burgos). In this project, the promoter is ACCIONA

ENERGÍA and EREN participates as stakeholder with a determinate % of the business. Besides, these organizations (IDAE, EREN and Burgos Provincial Energy Agency) promote the establishment of investments in the country, in this case in the province of Burgos, acting as intermediaries between the companies which are going to execute the project and the municipalities and making easier the procedure to start the projects.

2.1.3.3

Financing and subsidies for business and companies linked to the biomass sector.

1. Sustainable management of woodlands in the private scheme 2008

Body that promotes it: Ministry of the Environment

Description: ORDINANCE MAM/131/2008, of 31 January which officially announces subsidies for the sustainable management of woodlands in the private scheme. (BOCyL 01-02-2008)

Objective: To promote and stimulate improvement and maintenance activities for woodlands in the private scheme in Castilla y León, in order to help conserve and improve the environment, its resources and its biological and landscape diversity.

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Subsidizable concepts: a) Forestry management planning. b) Forest improvement. c) Forest-grazing land improvement. d) Reafforestation. e) Management of rapidly growing masses. f) Indirect fire prevention. g) Road infrastructure improvement.

Type of aid: 50% - 70% of the incentive investment with a minimum investment of €500 and a maximum subsidy of between €15,000 and €40,000 depending on each case.

Target collective:

-

Individuals or legal entities that own forestry operations or lands in the private scheme.

-

Groups formed by several owners of forestry operations.

-

Community assets.

Application period: From 2 February 2008 to 1 March 2008

2. Recovery of forestry potential and implementation of preventative measures 2008


Description: Ordinance MAM/132/2008, of 31 January which officially announces subsidies co-financed by the European Agricultural Fund for Rural Development (EAFRD) for aid to recover forestry potential and the implementation of preventative measures. (BOCyL 01-02-2008)

Objective: Recovery of the forestry potential and implementation of preventative measures for the purpose of defending and restoring, as appropriate, the existing natural resources in forest lands in order to help protect the environment, improve the prevention of natural risks such as droughts, floods, forest fires or landslides, and help stop climate change.

Subsidizable concepts: a) Forestry treatments. b) Activities in forest lands with livestock and forestry use. c) Fire-breaks d) Forest infrastructures.

Financing: This line of subsidies is 40% financed by EAFRD, 50% by the General State Budget and 10% by the Castilla y León General Budget.

Type of aid: 30% - 70% of the incentive investment with a minimum investment of €500 and a maximum subsidy of between €15,000 and €40,000 depending on each case.


-

Individuals or legal entities that own forest operations or lands in the private scheme.

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-

Groups formed by several owners of forestry operations.

-

Community assets.

Application period: From 2 February 2008 to 1 March 2008

3. Farmland forestation 2008


Description: ORDINANCE MAM/133/2008, of 31 January which officially announces subsidies co-financed by the European Agricultural Fund for Rural Development (EAFRD) reserved for the first afforestation of farming land for the year 2008. (BOCyL 01-02-2008)

Objective: To ensure the success of farmland forestations by financing their maintenance and, on the other hand, compensating the owner of the real rights to the forest lots for the loss of farming income as a result of the change in the use of the land, so as to protect the environment, prevent forest fires and natural disasters and prevent climate change.

Subsidizable concepts: a) Start-up costs. b) Maintenance premium. c) Compensatory premium.

Financing: This line of aid is 40% financed by EAFRD, 19.15% by the General State Budget and 40.85% by the Castilla y León General Budget.

Type of aid:

-

Start-up costs: 80% of total costs.

-

Maintenance premium: Annual premium for the 5 following years (€130 to 305/Hectare, depending on each case)

-

Compensatory premium: Annual premium for the following 10 years (€80 to 400 /Hectare depending on species)


-

Individuals or public or private legal entities that own property rights over the lands subject to the aid.

-

Groups formed by several owners of private property without needing to be constituted as a legal entity.

-

Community assets.

Application period: From 2 February 2008 to 28 March 2008

4. Incorporation to Forestry Aid 2008


Description:

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ORDINANCE MAM/128/2008, of 31 January which officially announces the incorporation of aid in favour of forests, co-financed by the European Agricultural Fund for Rural Development (EAFRD) as part of the 2007-

2013 Castilla y León Rural Development Program. (BOCyL 01-02-2008)

Objective: The conservation and improvement of forest-grazing land through planning and coordinating forestry interventions in forest areas.

Subsidizable concepts: a) The creation of forestry plan which shall be approved by the Directorate General for the Environment. b) Activities that are listed below whenever they are outlined in the approved forestry plan: weeding, livestock enclosures, water points, pasture sowing and forestry treatments.

Financing: This line of subsidies is 40% financed by EAFRD, 50% by the General State Budget and 10% by the Castilla y León General Budget.

Application period: Within a period of thirty days beginning on the day following the date this Ordinance is published in the “Boletín Oficial de Castilla y León” (Official Journal of Castilla y León).

Type of aid: Premium of between €40 and 200 per hectare depending on each case for the first 5 years.


- Individuals or public or private legal entities that own livestock operations in the extensive scheme.

-

Groups formed by several owners of private operations.

-

Community assets.

-

Owners of operations included in the agro-environmental integrated management measure for extensive livestock operations

2.1.3.4

Financing and subsidies for entrepreneurs related to the biomass sector.

1. Regional Incentives

Body that promotes it: Agencia de Inversiones y Servicios de Castilla y León (Castilla y León Investment and

Services Agency)

Description: BOE num. 172 of 19 July 2007

Objective: To promote business projects to create, expand, modernize, transfer,…

Subsidizable concepts: Land, connections, urban development and construction, edification, capital assets, …

The investment is required to be higher than 601.012,10 euros.

Type of aid: 25% incentive investment.

Target collective: Companies that are going to undertake investment projects in Castilla y León.

Application period: Deadline: 31/12/2013

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2. New SMEs


Services Agency)

Objective: To promote new companies and create jobs.

Subsidizable concepts: Land, connections, urban development and construction, edification, capital assets, …

Investments between 60.001 and 600.000 €.


Target collective: Companies that are going to undertake investment projects in Castilla y León.


3. Entrepreneurship


Services Agency). Enterprise Program

Objective: To provide incentives for entrepreneurs in Castilla y León

Subsidizable concepts:

-

Fixed or first-use assets (land, public works, capital assets, …)

-

Viability studies

-

Set-up and initial founding expenses (notary, registry, …)

Type of aid:

-

Fixed or first-use assets (land, public works, capital assets, …). 50%

-

Viability studies 75%

-

Set-up and initial founding expenses (notary, registry, …). 75%

Target collective: Individuals or legal entities, non-profit entities or community assets in Castilla y León

(projects up to 60.000€).


4. Invest in Growth


Services Agency). Impulse Program

Objective: To promote new companies and update technology

Subsidizable concepts: Fixed assets (land, public works, capital assets, …) and business plans.


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Target collective: Companies, mainly SMEs (projects between €200.000 and 600.000)

Deadline for applications: 30/12/2008

5. Young Innovative Businesses


Services Agency). Idea & Decide Program

Objective: To support activities based on R+D+i


-

Personnel expenses (researchers, experts, …)

-

Fixed asset acquisition costs.

-

Building and land costs

-

Costs of contractual, technical and patent research

-

General, operating, and other expenses.

Type of aid: Aid for a maximum of €125.000

Target objective: Small businesses operating in Castilla y León


6. Business Set-Up, Relocation or Expansion

Body that promotes it: City of Burgos

Objective: To facilitate creating, setting up or expanding businesses in the province of Burgos.

Subsidizable concepts: Business premise rental, external services, Social Security, personnel and other expenses

Type of aid: €2.000 maximum in aid.

Target collective: Unemployed entrepreneurs who are registered residents of Burgos.


7. Business Set-Up, Relocation or Expansion

Body that promotes it: Provincial Government of Burgos

Objective: To facilitate creating, setting up or expanding businesses in the province of Burgos.

Subsidizable concepts: Lots, warehouses, construction, capital assets, …

Type of aid: €65.000 maximum in aid.

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Target collective: SMEs and individuals or legal entities with an investment of between €100,000-600,000.


8. Self-employment

Body that promotes it: Autonomous Regional Government of Castilla y León

Objective: To promote self-employment in Castilla y León


-

Subsidy for set-up

-

Financial subsidy

-

Subsidy for technical assistance

-

Subsidy for training

Type of aid: Maximum subsidy of €10,000 including €5000 for set-up and a financial subsidy in credit equal to a maximum reduction in the interest rate of 4 points.

Target collective: Unemployed people or those registered as job seekers with the Public Employment

Services.

9. Participation Loan

Body that promotes it: ENISA

Objective: To promote business projects in general.

Subsidizable concepts: All types of material and immaterial investments

Type of aid: 5 to 10-year loan with between 3 and 8 of no payments and an interest rate of Euribor + 0.25 to be modified based on the company’s results.

10. ICO Loans

Body that promotes it: Official Credit Institute

Objective: Development of business projects.

Subsidizable concepts: New production fixed assets

Type of aid: 3 to 10-year loan with between 1 and 2 of no payments and an interest rate of Euribor + 0.65.

Target collective: Individuals or legal entities, newly created micro-businesses and professionals, and companies with 50 or more employees in Castilla y León.


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2.1.3.5

Financing and subsidies for forestry machinery.

1. Subsidies for acquiring forest biomass energy assessment machinery


Description: ORDINANCE MAM/1967/2007, of 29 November which officially announces subsidies for the acquisition of machinery for the energy valuation of forest biomass (Code REAY MED 012).

Objective: The aim of these subsidies is to generate enough inertia to establish the biomass sector, thus expanding the forest horizon in Castilla y León. The amount of the subsidy may be up to 40% of the subsidizable expense, with a maximum of €250.000 per beneficiary.

Type of aid: The amount of the subsidy may be up to 40% of the subsidizable expense, with a maximum of

€250.000 per beneficiary.

Official Journal and Publication Date: BOCyL - Nº 237, of 7 December 2007

Target collective: Small and Medium Enterprises in the forest sector with headquarters in Castilla y León.


-

Specific machinery, farm equipment and implements that enable the commercial use of forest biomass.

-

Static, semi-mobile and mobile, towable and self-propelled grinders or chippers.

-

Forest balers.

-

Platforms or containers for biomass transport and cranes that are installed on them.

Application period: From 8 December 2007 to 29 December 2007

Resolution date for the Official Announcement: 29 February 2008

2. Aid for renovating the National Agriculture Machinery Park in 2007 in Castilla y León.

Body that promotes it: Ministry of Agriculture and Livestock

Objective: In Castilla y León, the machinery park has obviously aged which means it is necessary to replace the tractors that are obsolete or have serious problems with others that are equipped with modern technologies in accordance with the demands on the new farming systems. The base amount of the aid is hereby established at 80 euros per horsepower.

Official Journal and Publication date: BOCyL nº 46 of 6 March 2007

Target collective: Owners of farm operations and individuals or legal entities whose principal activity is farm production or the provision of ag services.

Necessary requirements: a) Be the owner of the new tractor or machinery and the flattened machinery. b) The new machine must improve the overall performance of the farm operation and meet all applicable community regulations. c) Promise not to dispose of the new tractor the new machine for a period of five years.

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Subventionable amount: The base amount of the aid is hereby established at 80 euros per horsepower.

Additional Information: Applications will be accepted until 30 April 2007, inclusive.

3. Ordinance AYG/981/2008, of 19 May

Bodty that promotes it: Ministry of Agriculture and Livestock

Description: Official announcement of aid co-financed by the by the European Agricultural Fund for Rural

Development (EAFRD) to improve the production and modernization structures of farm operations in application of Regulation (CE) 1698/2005 of the Council and aid financed by the Autonomous Community of

Castilla y León to make other investments in farm operations.

The objective of this Ordinance is to officially announce certain aid in order to establish a system of measures in the territory of Castilla y León in application of Regulation (CE) num. 1698/2005 of the Council of 20

September 2005 on rural development aid through the European Agricultural Fund for Rural Development

(EAFRD), and Spanish Law 19/1995 of 4 July on Modernizing Farm Operations, as well as state aid for small and medium enterprises dedicated to the production of agricultural products so as to facilitate the development of business activities pursuant to the concession and liquidation procedure specifically outlined in Ordinance

AYG/978/2008 which establishes the following regulatory bases.

Type of aid: Subsidy of between 40 and 50% with a maximum investment volume of between €100.000 and

€200.000

Official Journal and Publication date: B.O.C. y L. - num. 113. Friday, 13 June 2008

Target collective: Farmers

4. Ordinance MAM/1014/2007, of 5 June


Description: Officially announcing aid co-financed by the European Agricultural Fund for Rural Development

(EAFRD) for the costs of implementing the first afforestation of farm land for the year 2007.

The purpose of this aid is to expand forest resources and improve their quality in the territory of Castilla y

León, through the initial afforestation of farm land.

Given that through Ordinance MAM/11/2007 of 3 January subsidies were announced co-financed by EAFRD with regards to farmland afforestation dossiers to grant maintenance and compensatory premiums for the year

2007, which were granted in accordance with the regulations in effect until 2006, the objective of this order is to only announce aid for start-up costs, thus beginning the new period of aid deriving from the 2007-2013

Castilla y León Rural Development Program with regards to Rural Development aid through EAFRD.

To this regard, it must be indicated that beneficiaries granted aid for start-up costs under this Ordinance have the right to receive an annual maintenance premium per every replanted hectare for the five calendar years following the one in which the definitive afforestation was certified, as well as an annual compensatory premium to compensate for the loss of income that the former use of the soil generated for the ten calendar years following the one in which the afforestation is granted under the terms established in the Ordinance

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Financial Frameworks in the target regions establishing the regulatory bases for awarding this aid and those that are determined in successive ordinances announcing these aids.

Type of aid: 80% of the total cost of implementation.

Official Journal and Publication Date: B.O.C. y L. - num. 110 Thursday, 7 June 2007

Target collective: Those included in point two of the ordinance

5. Ordinance MAM 119/2008 of 28 January

Body that promotes it: Ministry of Agriculture and Livestock and Ministry of the Environment.

Description: Modification of Ordinance MAM/984/2007 of 31 May establishing the regulatory bases for granting aid for the first afforestation of farmland, co-financed by the European Agricultural Fund for Rural

Development (EAFRD) as part of the 2007-2013 Castilla y León rural development program.

Type of aid: 80% of the total cost of implementation.

Official Journal and Publication date: B.O.C. y L. - Num. 20 Wednesday, 30 January 2008

Target collective: Farmers and Livestock Breeders from Castilla y León

6. Farm Aid

Title: ORDINANCE AYG/141/2008, of 28 January, which regulates the use of land in the Autonomous

Community of Castilla y León which is retired from production with a view towards obtaining raw materials to manufacture products that are not destined for human or animal consumption and which are used to justify withdrawal rights, and the aid scheme for energy crops.

Provision and Identification: ORDINANCE AYG/14/2008, of 28 January, of the Ministry of Agriculture and

Livestock of the Autonomous Community of Castilla y León. ( BOCyL num. 21 of 31.01.08).

Area of application: Castilla y León

Beneficiary: Farmers that use the land retired from production to obtain raw materials for manufacturing.

Amount: PAC withdrawal rights.

Application period: It shall be submitted before 1 November of the first year for which the authorization is being requested.

Text of the regulation: BOCyL21-310108-2Sup..pdf

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2.1.4

Legislative Framework

2.1.4.1

Electrical applications of biomass

2.1.4.1.1

Ordinances and/or specific legislation

There are any specific ordinances for electrical applications in Spain.

2.1.4.1.2

Usage of the electricity produced from biomass

Prices of the electricity produced using biomass

The electricity produced by the biomass installations in Spain is sold to the grid in almost all cases. The law which rules the activity of production of electricity in Spain is the Royal Decree 661/2007, of 25th of May. This

Royal Decree modifies the retribution system of the previous Royal Decree (RD 436/2004). Besides, the Royal

Decree includes all the normative changes of the European Laws and the Royal Decree-Law 7/2006 for urgent measures in the energy sector.

The economical framework of this Royal Decree develops the principles of the Law 54/1997 of the Electrical sector, guaranteeing to the owners of renewable energies installation a reasonable retribution and to the general public a reasonable assignment of the costs of the electrical system.

This Royal Decree is one of the measures of the Spanish Government to fulfil the target for the year 2010 included in the Directive 2001/77/CE. It means that at least the 29,4% of the electrical consumption in Spain in

2010 comes from renewable energies.

The objective of this Royal Decree is to fix the economical and normative frameworks of the installations of cogeneration (production of Heating and Power – CHP Plants) and renewable energy installations. In this sense the Royal Decree splits the use of biomass into several categories:

Group A.1: CHP Plants

Sub-group A.1.1 - CHP plants which use natural gas as fuel when the consumption of natural gas is higher than 95% of the primary energy used in the plant, or when at least the 65% of the primary energy used in the plant comes from biomass and/or biogas.

Sub-group A.1.2 - CHP plants, when at least the 95% of the primary energy used in the plant comes from petrol or derivatives.

Sub-group A.1.3 - CHP Plants, when at least the 90% of the primary energy used in the plant comes from biomass and/or biogas.

Sub-group A.1.4 - The CHP Plants not included in the above categories.

Group A.2: Installations that use residual energy from other processes.

Group B: Renewable energies installations.

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Group B.1 - Installations that use solar energy as primary energy

Sub-group B.1.1 - Solar Photovoltaic Installations

Sub-group B.1.2 - Solar Thermoelectric Installations

Group B.2 - Wind Turbine Installations

Sub-group B.2.1 - On-shore Installations

Sub-group B.2.2 - Off-shore Installations

Group B.3 - Geothermal Installations

Group B.4 - Hydropower Installations <10 MW

Group B.5 - Hydropower Installations >10 MW and <50MW

Group B.6 - Plants using as fuel biomass from energy crops, agricultural wastes and forestry wastes

Group B.7 - Plants using as fuel biogas

CHP Plants: Retribution = Tariff + Bonus

Sub-group Fuel

Energy Crops

Agricultural

Wastes

Sub-group a.1.3

Forestry

Wastes

Biogas from

Dump Wastes

Biogas from

Digestors

Liquids biofuels

Industrial

Wastes from

Agriculture

Sector

Industrial

Wastes from

Forestry Sector

Power Period

P≤2 MW

2 MW ≤ P

P≤2 MW

2 MW ≤ P

P≤2 MW

2 MW ≤ P

P≤500 kW

500 kW ≤ P

P≤2 MW

2 MW ≤ P

P≤2 MW

2 MW ≤ P

First 15 years

After that

First 15 years

After that

First 15 years

After that

First 15 years

After that

First 15 years

After that

First 15 years

After that

First 15 years

After that

First 15 years

After that

First 15 years

After that

First 15 years

After that

First 15 years

After that

First 15 years

After that

First 15 years

After that

First 15 years

After that

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Bonus c€/kWh

11,6608

0,0000

10,0964

0,0000

8,4643

0,0000

6,1914

0,0000

8,4643

0,0000

7,2674

0,0000

4,0788

0,0000

10,0842

0,0000

6,1009

0,0000

3,0844

0,0000

8,4643

0,0000

6,3821

0,0000

5,1591

0,0000

2,9959

0,0000

Tariff c€/kWh

16,0113

11,8839

14,6590

12,3470

12,7998

8,6294

10,7540

8,0660

12,7998

8,6294

11,8294

8,0660

8,2302

6,7040

13,3474

6,6487

9,9598

6,6981

5,3600

5,3600

12,7998

8,6294

10,9497

8,2128

9,4804

6,6506

7,1347

7,1347



P≤2 MW

Paper Industry

2 MW ≤ P

First 15 years

After that

First 15 years

After that

9,4804

6,6506

9,3000

7,5656

5,4193

0,0000

4,9586

0,0000

Biomass plants: Retribution + Bonus. The total amount cannot be higher than the maximum limit or lower than the minimum limit.

Sub-group

Sub-group a.1.3

Fuel

Energy Crops

Agricultural

Wastes

Forestry

Wastes

Power

P≤2 MW

2 MW ≤ P

P≤2 MW

2 MW ≤ P

P≤2 MW

2 MW ≤ P

Period

First 15 years

After that

First 15 years

After that

First 15 years

After that

First 15 years

After that

First 15 years

After that

First 15 years

After that

Tariff c€/kWh

15.8890

11.7931

14.6590

12.3470

12.5710

8.4752

10.7540

8.0660

12.5710

8.4752

11.8294

8.0660

Bonus c€/kWh

11.5294

0.00000

10.0964

0.00000

8.2114

0.00000

6.1914

0.00000

8.2114

0.00000

7.2674

0.00000

Maximum

Limit

16.63

15.09

13.31

11.19

13.31

12.26

Minimum

Limit

15.41

14.27

12.09

10.379

12.09

11.44

2.1.4.1.3

Process of permission for the installation of biomass plants.

Establishing biomass plants requires special permission. These kinds of installations are established mainly in rustic ground.

The environmental permits needed for the installation of biomass plants for producing electricity. These permits are given by the Regional Government (Junta de Castilla y León). Depending on the size of the plants, the installations need one or other permits. These permits are summarized in the following table:

> 50 MW

E.I.A

Yes

>15 MW and < 50 MW Yes

< 15 MW No

E.A

Yes

No

No

8 years

No

No

No

E.L

With information

No

Yes

No

Without information

No

No

Yes

Communication

No

No

No

E.I.A – Environmental Impact Assessment.

E.A – Environmental Authorization.

E.L – Environmental License. Three types:

 Period of 8 years (Decree 8/2008)

 With information

 Without information

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Communication

 E.I.A – Environmental Impact Assessment.

Normative:

 Law 11/2003, 8 th of April, of Environmental Prevention of Castilla y León (Regional Law)

 Royal Decree 1/2008, 11 th of January, this law passed through the Law of Environmental Impact

Assessment of projects

The Environmental Impact Assessment is not a permit, but it is a necessary study to present together with the application of permits.

If the Environmental Impact Assessment is negative, it is binding to the concessions of the permits. In this case, the procedure finishes with the Environmental Impact Declaration

If the Environmental Impact Assessment is positive, it is binding and the procedure to obtain the permits continues.

 E.A – Environmental Authorization

Normative:

 Law 11/2003, 8 th of April, of Environmental Prevention of Castilla y León (Regional Law)

 Law 16/2002, 1 st of July, of prevention and control integrated in the pollution rate.

The responsible administration to give this permit is the Regional Government (Junta de Castilla y León).

The period of validity is 8 years.

The municipalities emit informative report (they are not binding).

 E.L – Environmental License

Normative:

 Law 11/2003, 8 th of April, of environmental prevention of Castilla y León

 Decree 8/2008, 31 st of January, this law established the period validity for some licenses and ruled the procedure to renew the environmental license.

The responsible administration to give this permit is the Local Government (Municipalities)

The Regional Government emits informative reports, except when the competences are given to the municipalities.

Those licenses which are in the Annex I of the Decree 8/2008 are given by 8 years.

 Communication

Normative:

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 Law 11/2003, 8 th of April, of environmental prevention of Castilla y León

It is pending the regulation of this law. It does not require any procedure just the communication to the

Authorities.

The Article 52 of the Law 54/97 of the Electrical Sector declares all the installations of generation, transport and distribution of electrical energy as public utility, so it is not necessary an specific declaration.

In some cases, when it necessary the expropriation of land (mainly for the connexion grid), the procedure is different.

In addition there is needed a building permit as well as every construction to build in Spain.

2.1.4.2

Thermal applications of biomass

2.1.4.2.1


There is no specific legislation for thermal applications of biomass. As mentioned before in the paragraph

2.1.4.2.2

Process of permission for the installation of biomass plants

Big installation of biomass plant for producing heat requires exactly the same application procedures as biomass plants producing electricity.

Domestic boilers do not require any environmental permit. These installations required a licence given by the

Regional Government (Junta de Castilla y León), justifying that the installation fulfil with the RITE (Regulations on Building Heating, Ventilation and Air Conditioning Installations). This law was published in the Spanish

Official State Gazette, the 29th August 2007 (Royal Decree 1027/2007).

The legislation applicable is the transposition of the EPBD in Spain by means of three royal decrees:

 Royal Decree approving the ‘Technical Code of Buildings (CTE). It was approved by the Council of

Ministers on 17th of March 2006 and published in the Official Gazette on 28th March 2006.

 Royal Decree approving the review of the current. ‘Regulations for thermal installations on Buildings

(RITE)’, approved by the Council of Ministers on 20th of July 2007 and published in the official

Gazette on 29th August 2007.

 Royal Decree on the Basic Procedure for Energy Performance. Certification of new buildings approved by the Council of Ministers on 17th January 2007, and published in the Official Gazette on

31st January 2007.

2.1.4.3

Extraction of biomass operations

2.1.4.3.1

Existing legislation related to the forestry cleaning

The main regulations that affect the use of biomass in Spain are the following:

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 Law 43/2003, 21 st of November, of Forestry. This law declares “The government will elaborate, in collaboration with the autonomous communities, a strategy for the development of the energy use of forest biomass, according to the PER (Renewable Energy Plan).

 Common Agricultural Policy. Regarding this law, it is really important the Corrigendum to Council

Regulation (EC) No 1782/2003 of 29 September 2003. This Corrigendum includes the first line of funding aimed to the development of energy crops, funding developed deeply in Commission Regulation (EC) No.

2237/2003 and the Commission Regulation (EC) No. 1973/2004. 45 €/ha (maximum 2.000.000 Mha in all the European Community).

The forest wastes are affected by the funding of FEGA for the establishment of energy forest, this funding is regulated by the Commission Regulation (EC) No. 1257/1999 which was transposed to the Spanish legislation with the Law 6/2001, about the promotion of forestation in agricultural land.

There is one overall regulation for forestry cleaning which therefore apply to Burgos province.

WOODLANDS LEGISLATION

SPANISH LAW 43/2003, of 21 November on the Woodlands.

The purpose of this law is to guarantee the conservation and protection of Spanish woodlands by promoting their restoration, improvement, sustainability and rational use with support from collective solidarity and territorial cohesion.”

The principles that inspired this law include:

 Sustainable management of the woodlands.

 Balanced fulfilment of the multipurpose nature of the woodlands as regards their environmental, economic and social values.

 Forestry planning as part of territorial planning.

 Boosting forestry productions and their associated economic sectors.

 Job creation and rural development.

 Maintaining and restoring the biodiversity of the forest ecosystems.

 The integration of the international action environmental protection objectives in Spanish forestry policy, especially as far as desertification, climate change and biodiversity.

 Collaboration and cooperation from the various Public Administrations in preparing and executing their forestry policies.

 Participation by implicated social and economic sectors in forestry policy.

The General State Administration is exclusively responsible for the following matters related to this law:

 Managing the woodlands it owns.

 Representing Spain all over the world on forestry matters.

The Ministry of the Environment will coordinate the preparation of Spanish forestry statistics with other competent bodies of the General State Administration and autonomous regions, which shall include the following matters:

 The national forest inventory and the corresponding Forestry Map of Spain.

 The national soil erosion inventory.

 Reforestation and other forestry activities.

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 A list of structured woodlands.

 Forestry production and industrial forestry activities.

 Forest fires.

 Monitoring the interaction of the woodlands and the environment.

 Characterizing the forest territory included in the Natura 2000 Network.

The Ministry of the Environment shall draw up the Spanish Forestry Plan in conjunction with the autonomous regions, taking their forestry plans into consideration, and with the reports from the National Nature Protection

Commission and the National Forest Council. The Council of Ministers will approve the Spanish Forestry Plan by means of an agreement and after receiving a report from the Sectorial Conference. The Spanish Forestry

Plan will be reviewed every 10 years, or within a lesser period as needed.

The owner of the woodlands will always be the owner of the forest resources produced in the woodlands, including spontaneous fruit, and he/she will have the right to its use pursuant to this law and autonomous regulations.

Forest resources shall be used in accordance with the principles for woodlands management as established in the corresponding forest resource plans, whenever they exist. As appropriate, this use will also comply with what is specifically set out in the woodlands planning project, management scheme or any equivalent management tool in effect.

The autonomous region's forestry body will regulate non-timber-yielding usage. Said usage, and in particular, grazing, shall be expressly regulated, where appropriate, in the corresponding forest management tools or

PORF (Spanish Local Forest Management Plans), under the scope of which the woodlands in question pertain.

Usage in forest woodlands in the public domain may be disposed of by its owners under article 15, as well as the provisions of any applicable inheritance law.

The autonomous region's forestry body will regulate timber-yielding and wood usage. In woodlands not managed by said forestry body, these uses will be subject to the following basic conditions:

 When there is a planning project, management scheme or equivalent management tool, or the woodlands are included under the scope of application of a PORF and said plan so stipulates, the owner of the woodlands exploitation shall provide advance notification to the autonomous region's forestry body of the usage so that the latter may verify its conformity with the provisions of the management tool or, if appropriate, the planning tool. Denying or conditioning the use may only occur within the period established by autonomous regulations through a justified resolution and the use shall be understood as approved if no express resolution is passed within said period.

 If there are no such instruments, the owner of the woodlands exploitation shall communicate its use plan in advance to the autonomous region’s forestry body in accordance with the autonomous regulations on the matter. This body shall issue a mandatory authorization for said use within the period stipulated by the autonomous region. In the event of an administrative silence, the application will be understood as approved. If the answer were to be negative, it must be technically justified.

The Public Administrations will regulate the mechanisms and conditions for providing incentives for positive externalities of the structured woodlands. The following factors, among others, shall be considered for these incentives:

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 The conservation, restoration and improvement of the biodiversity and landscape based on measures specifically adopted for these purposes.

 Establishing carbon dioxide in the woodlands as a measure to help mitigate climate change, based on the amount of carbon set in the forest biomass in the woodlands, as well as the energy value of the forest waste.

 The conservation of the soil and the water scheme in the woodlands as a measure to fight desertification, based on the degree to which the plant cover and the forestry practices help reduce the loss or degradation of the soil and the surface and underground water resources.

2.1.4.3.2

Local ordinances

Nothing relevant currently functioning in Burgos community.

2.1.5

Commercial Framework

2.1.5.1

Existence of selling points of raw material

As it has been previously stated, since the sector is in the first stages of development, just a few companies to be mentioned regarding the selling and distribution of raw materials, including producers of pellets and chips.

The following companies have been identified so far in Burgos province:

-

Triturados Montero: Biomass chips production, transportation and distribution.

-

Molygrasa: Pellets made from straw for thermal and animal food industry.

Currently some projects are being developed such RIBSA or Cooperativa Serpaa, both producing biomass pellets, which will be in short active and functioning.

2.1.5.2

Existence of selling points of pellets/briquettes/chips

Similar situation than previous paragraph, with only a few significative distribution and selling points of pellets/briquettes/chips. Main ones are the following:

-

Campo, clima y energia (Formerly known as Instalaciones campo) in Burgos city: Commercialization and distribution of pellets and boilers).

- Maderas el Enebral also in Burgos city: Commercialization and distribution of Word pellets and chips from recycling.

-

INTERBON, Burgos: Wood wastes and chips, bark and sanding wastes for thermal and electric use).

-

Triturados Montero, Quintanar de la Sierra (Burgos): Biomass chips production, transportation and distribution.

Also some small coal and wood traders are registered as well to start selling pellets in its stores, mainly in

Burgos city.

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2.1.5.3

Installers’ network

Nothing relevant specific in Burgos community currently established. However AGENBUR is at this moment working on it by communicating and registering all the installers working in Burgos province. CEEI- Burgos will also support this work within Biobusiness project.

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2.2

B IOMASS F RAMEWORK IN THE T AMPERE R EGION

Current framework of the biomass in Finland has compiled in the year of 2006. Finland has positive attitude towards the strategy for biomass made by European Commission and frameworks has been made according to that. Advices by the Commission gives general picture about the acts which can contribute the electricity production as well as usage of biomass and biofuels which are based on renewable energy resources.

Target of the EU is to increase the proportion of renewable energy by 12% in primary energy, 21% in electricity production and 5,75% in biofuels by the year 2010. Targets are seen challenging in Finland. In

Finland there is mainly utilized wood in production of renewable energy and strategy is to expand this energy pallet.

Principle in forwarding biomass usage according to the Finnish parliament Committee is that material which can be refined will not be used in energy production. Finland utilizes wood in energy production third most within the EU member countries and there are still unutilized resources question is how to get it cost efficiently to usage.

There is emphasized that efforts have to be put on raising heating boilers coefficient of efficiency and to more tight emission requirements to decrease particulate emissions. Investments will be targeted to further development of biorefinement concept. Biofuels development is seen also important and the Finnish parliament Committee emphasizes that the gasification and rotting of the biomass is most efficient way to produce biofuel. Research and development work is the framework of the renewable energy contribution in

Finland.

According to the Tampere region Energy Vision 2020 energy efficiency will be improved by 10% in all sectors, use of forest chips is tripled (360  1000 GWh), energy crops plantations 20 000 ha, energy-from-waste plant is in use producing 600 GWh/year energy, 10% of the traffic fuel will be gaseous (bio and natural gas), tens of new small/medium scale CHP-plants are in use (heat and power), biorefinery is producing bio-oil to traffic from wood and peat (10% of traffic fuels).

2.2.1


2.2.1.1


There are mainly four kinds of power plants in Finland. Large scale Industrial multifuel CHP –plants 50-600

MWth, which are using variety of fuels including biomass. Medium scale municipal multifuel CHP –plants 5-50

MWth are also using many fuels including biomass. These both power plants are producing both heat and electricity. There are also heating plants for woodchips 0, 5-30 MWth and heating plants for pellets 0, 1-

1MWth.

Other technologies installed for private usage and e.g. company real estates, includes mainly heating systems which are using pellets.

2.2.1.2

Current rate of installations

In Finland there are approximately 60 large scales Industrial multifuel CHP-plants and 50 medium scale municipal multifuel CHP –plants.

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In the year 2006, there were approximately 10.000 real estates which have pellet heating systems.

As it was mentioned in the Study of trends –report there were 68 plants in the region burning solid fuels with over 100 kW power output in the year 2005. Nine of these were industrial steam centres, eight industrial counter pressure plants, ten community heating plants, one community CHP plant and 41 agricultural and property heating plants.

2.2.1.3


Many organisations are working with commercialisation of biomass technologies. Main influencers are Sentre network of business, research and education that develops solutions for sustainable energy, Tekes – Finnish

Funding Agency for Technology and Innovation (BioRefine –programme, which objective is to develop innovative technologies based on national factors of strength and biorefineries as well as technologies that are connected to biomass processing. These organisations are presented in the Study of Trends –report and

Tekes funding are presented later in this report. One of the main actors is OSKE Centre of Expertise

Programme which has Cluster Programme for Energy Technology 2007 -2013. “OSKE represents the

Government’s view on how to improve regional competitiveness in line with national and European policies.

This fixed-term programme was introduced in 1994 to create new jobs and to foster regional development in the selected fields of expertise.”(“What is OSKE?”, http://www.oske.net/en/what_is_oske/ ). OSKE has several competence clusters which are working in the areas of e.g. health, technology and energy. Clusters consist of national top expert organizations.

There are mainly two business development companies operating in the Tampere region which are especially concentrated on commercializing technology-based business and product ideas. These companies are Hermia

Business Development Ltd and Technopolis Ventures Ltd.

Hermia Business Development Ltd is a market-oriented consulting and development company for technology companies. It offers expert services for commercialization of technology based business and product ideas.

Services also include development programs, expert services, internationalization and co- entrepreneurship.

Hermia Business Development Ltd licenses technologies (patents and immaterial rights). The company operates mainly in Tampere and it has side offices in Lappeenranta, Helsinki and Amsterdam. HBD offer technology-oriented companies incubator services in Tampere.

Technopolis Ventures is a business development company which operates in Tampere, Jyväskylä, Kuopio,

Lappeenranta, Oulu and Capital area. The company has incubation services, business development and coaching programs. Also tools and coaching for internationalization are offered.

2.2.2


2.2.2.1


According to the Finnish parliament Committee different subsidy and contribution acts should be predictable in order to avoid fault investments. There are ascertained in the statement that the emission trade itself already promotes the usage of renewable energy sources. Market-based and voluntary acts have to be set in the first place and new regulations should be taken into use only if they are shown to be cost-effective and remarkable.

Motiva Ltd is the main promoter of use of biomass. It promotes renewable energy and environmental issues.

Motiva Ltd produces expert services to boost energy and material usage and to increase renewable energy.

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Services are utilized by public authorities, companies, associations and private persons. Motiva is vastly known as societal promoter. Motiva produces following operations and services: preparation, coordination and monitoring energy save agreements, promoting energy survey and energy analyses acts, fasten the deployment of energy saving technique, increasing the usage of renewable energy, communication of energy efficiency and renewable energy, influencing attitudes and usage habits and also follow up and estimations of influences. Motiva provides information how to save energy and use energy and materials as efficient as possible and not causing harm to the environment.

2.2.2.2


According to the interviews there is too little promotion. There is lack of knowledge in many levels from official authorities to end users. Thermal and electric biomasses have been presented in previous reports and also detected barriers related in report of “Detection of Business Opportunities for Entrepreneurs and SME’s in

Biomass Sector” which quite well describes the current situation of promotion. Main point which was detected is that there is lot of talking but no actions. Lots of information is available e.g. in Internet but that information is not communicated publically efficiently enough. Amount of information provided is more than adequate but main problem is that the information does not reach regular citizens. Part of the consumers do have interest to search for the information by them selves but it would be essential to communicate the information widely and more publicly. More co-operations between municipalities, companies and authorities are needed.

2.2.3


Tekes, Finnish Funding Agency for Technology and Innovation

Tekes funding is aimed to companies and other associations which are operating in Finland and which develops their products, services and other business. The target of funding can also be concepts, systems and brands which support business. In addition new innovative companies’ generation and growth can be funded.

These development operations should include challenge, innovative value and effectiveness in order to compete from Tekes funding.

Support especially targeted for biomass sector is assigned through Tekes BioRefine programme, which is mentioned before in this report and presented in the Study of Trends –report.

Mainly grant is given to research and challenging projects which creates base for the development of products and services. Allowance can be assigned to project preparation preliminary surveys. Loan is especially meant to projects which rouse marketed products or services.

Level and validates of funding

Tekes funds a distinct percentage part of the approved costs of the development project. Funding options are grant, loan or combination of the previous. The project funding depends on the nature of the project and size of the company. Research and development grants run from 25 to 65 percent of the eligible costs and loans run from 25 to 70 percent of the eligible costs. Loan time is at longest 10 years from which 5 years instalment free at longest. Loans interest is 3 % under basic interest and minimum of 1 %.

The level of funding is determined according to the simultaneous of the project and risk preceding market readiness. Small and medium sized companies can get relatively more funding for their development projects.

Project of large companies has to be more research based in order to get percentage based the same funding.

Also projects of the companies operating in growth centres has to be more challenging than companies

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Financial Frameworks in the target regions operating outside the growth centres (national subsidy area approved by European Union) in order to get same level funding. Also previously received Tekes funding may diminish the funding percentage because

Tekes funding can cover only small part of the research and development costs of established company.

Funding is usually admitted to the projects which has high technological and commercial risk and which benefits could not be implemented without funding. With help of Tekes funded projects companies are able to increase co-operation and networking in Finland and abroad.

The aim of Tekes is to encourage companies to start new projects and to help utilize the result of research faster in business operations by sharing the risks of development projects.

Application Procedure

Funding can be applied through application paper. Application form is different for companies and research institutes as well as for different company sizes. For SME’s application have to be fulfilled the general information of the applicant, responsible and contact person, balance sheet, description of the applicant and business idea, basic information about the project, business field in which development process connects to, cost estimations, financing plan (capital investments, private funders, amount of funding applied from Tekes), resources and co-operations, applicants targeted business operations, objectives of company’s business, other impacts ( e.g. societal effects, impact to other businesses) and attachments (project plan, balance sheet, partners list, clarification about public funding, technology strategy/ business plan and clarification about selffinancing).

The application can be taken to the processing when Tekes has received all the information and appendixes required in the application form. Also additional information may be demanded from the applicant for making the funding decision preparation and monitoring. Tekes funding can be directed only at the costs which have transpired earliest from the date when Tekes has received all the required information and appendixes. The application procedure generally takes from two to three months depending on the projects. The funding decision is made according to the application and conversation about the project with company representative.

Decisions are informed by written document.

Funding applications presented to Tekes are competing with each others. Experts will evaluate the project, business in which is targeted with help of the project, company as entirety and benefit which the project would produce. Other criterias are: stimulatiousness of the developed technology, innovation or know-how, used resources, co-operation and networking, influence in well-being: to society and environment, supportive influence of Tekes funding and expertise to projects implementation and success.

Development projects of service concepts have to fulfil all following additional arguments: Novelty value; service concept has to be totally new or remarkably newer compared to existing ones, innovation can be directed at service product or service process and procedures which aim to producing the service.

Repeatability and duplicability; service concept as a result of the development work must be repeatable or duplicable totally or partially. Utilization of technologies and/or processes; service concept is based on methodical utilization of technological or non-technological procedures (requisition to repeatability). Projecting; project must be clearly projected. Project has to have clear answerable, timetables, partial tasks and objectives. Project work must be possible to separate from normal business.

Tekes funding for research institutes, polytechnics and universities

Tekes funding for research institutes, polytechnics and universities includes research grants which range from

50 percent to 100 percent of eligible costs. Grants are directed to the research work done at research

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Financial Frameworks in the target regions institutes and universities and projects are conducted in co-operation with companies. The selection and evaluation criteria for these public research projects are mainly the as for enterprise research and development projects.

Tekes R&D subsidy programmes for research, development and innovation

Tekes finances research and development projects which are aiming to develop concepts, systems and brands supporting business operations for small and medium sized companies. This subsidy programme includes 70% of subsidy and 30% of product development loans.

De Minimis subsidy

Small and medium sized enterprises can get subsidy on basis of De Minimis rule for starting innovation operations, pre-surveys which are preparing projects and for commercialisation, piloting market survey.

Granted survey is maximum 50.000 Euros and the level of subsidy is always 50%.

Finnvera

Finnvera plc is a financing company owned by the State of Finland. It offers loans, guarantees, venture capital investments and export credit guarantees. Finnvera has official Export Credit Agency (ECA) status.

Loans

Finnvera offers quite many different loans and for every business field but not for actual farming, forestry and building developer's business. Loan times and interests vary. Interests usually follow the reference rate.

Capital Loan

Loan is for investments, product development and growth as a part of other Finnvera funding. The loan is meant mainly for SME’s and it applies for limited companies. Loan time is at longest 10 years.

Development Loan

Loan is meant for SME’s development projects, e.g. for research and development or marketing contribution.

Development loan can be used also as a partial funding of investments, company growth or owners change.

Loan time is at longest 5 years for maximum 400 000€.

Entrepreneur Loan

Loan is meant for founding new company, buying stocks or partner shares when generation switches, trading shares and raising the share capital. This loan is personal loan of the entrepreneur. Loan time is at longest 10 years for maximum 100 000€.

Environmental Loan

Loan is meant for SME’s voluntary environmental investments. Finnvera finances environment projects which positive environmental effects are connected e.g. to raw materials, production and energy consumption of the product, diminishing emissions. The interest of this loan is remarkably lower than other loans. Loan time is at longest 5 years.

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Internationalization Loan

Loan is meant for Finnish SME’s business operations funding abroad. Funding can not be targeted straight for export actions or founding the sales office. Loan time is at longest 10 years.

Investment and Working Capital Loan

This loan is meant to new and established companies for building, machinery and equipment funding. The loan is especially for small and medium sized companies. Loan time is 3-15 years

In addition Finnvera offers loans for women entrepreneurs and microloans for starting the company. These loans are maximum 35.000 Euros.

Guarantees

Finnvera also has different guarantees which enterprises can use as collaterals.

Environmental Guarantee

Guarantee is collateral for credit taken to finance water and air protection and waste recycling investments.

The guarantee is for credit to finance compulsory and voluntary environmental protection investments. The guarantee can also be assigned to finance foreign investments that remarkably improve the condition of

Finnish environment. The guarantee is granted as an absolute guarantee and can be granted for domestic or foreign credit.

Export Guarantee

Guarantee is meant to domestic collaterals. With help of export guarantee exporting company can get working capital loan from bank.

Finnvera Guarantee

Guarantee is meant for every financing need of a company. Mainly it is suitable for small and medium sized companies but with good arguments also for large enterprises. Finnvera guarantee can be a collateral for e.g. for loan granted from bank.

Internationalisation Guarantee

Guarantee is meant to collateral for financing the business operations of a Finnish SME abroad.

Micro-Enterprise Guarantee

Guarantee is meant to establishing company or companies which employ not more than 50 persons.

In addition Finnvera offers Ship Guarantee for Finnish companies engaged in shipping or shipbuilding.

Finnvera also offers export credit guarantees for Finnish exporting companies to protect themselves from related risks. Guarantees offered are: A Credit Risk Guarantee, , A Buyer Credit Guarantee, An LCF

Guarantee, A Letter of Credit Guarantee, A Bank Risk Guarantee, A Bond Guarantee, An Investment

Guarantee, A Finance Guarantee and A Raw Material Guarantee.

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Applying Finnvera loans and Guarantees

Financing can be applied with application form and returning it to the region office (according to the company’s location). Before making the financing decision Finnvera conducts entrepreneur survey in which are investigated business operations, ownership, management and economy of the company.

Finnvera evaluates the conditions for profitable business, company goals, markets, strategies and development plans. In addition there are evaluated other issues depending on the type of the loan or guarantee applied. For example when applying Environmental loan, environmental effects of the project are evaluated and when applying Internationalisation loan, risks of the target country are evaluated.

In Finnvera financing application there has to be following information: company or applicants basic information, company owners, company management, business description or business plan, project description, description about the financing need, planned funding, possibly used business incubation and consulting services, possible de minimis subsidies and appendixes including business plan, balance sheet of established company, profit plan, financing plan/budget and curriculum vitae.

Source of the table: http://www.finnvera.fi/index.cfm?id=6410

FINNVERA plc, domestic financing

Number of new enterprises

Number of new jobs

Financing granted, MEUR

Outstanding commitments at year's end

Outstanding credits, MEUR

Outstanding guarantees, MEUR

Finnvera plc, foreign risk-taking

Outstanding commitments, MEUR

Guarantees offered, MEUR

Guarantees that came into effect, MEUR

2007

3 467

10 900

896,9

1368,9

827,4

4 980,2

1 626,8

705,7

2006

3 641

11 134

926

2005

3 638

10 548

895,3

2004

2 956

11 457

891,5

2003

2 576

9 730

772,4

1 372,3 1 376,3 1 337,8 1 246,5

804,3 839,8 793,1 691,5

4 556,5 3 902,9 3 367,1 3 138,6

2 760,2 2 974,3 2 209,4 2 311

1 239,8 1 406,9 987,1 995,1

2.2.3.1


Business of installation of domestic boilers can be financed e.g. with help of Tekes and Finnvera.

Environmental subsidies can be granted also for this business. These subsidies and financing possibilities are presented in this report. The businesses of distinctly installation of domestic boilers do not get any subsidies, but energy producer which is using the boilers receives subsidies. This is one of the detected barriers according to the interviews.

2.2.3.2


Tekes R&D subsidy programmes for research, development and innovation finances and supports projects as it has mentioned previously in paragraph above. Same kinds of subsidies are also granted for bigger projects and companies. In case of applying this subsidy distinct requirement has to be fulfilled which means mainly level of challenge of the project.

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2.2.3.3


For establishing a company related to biomass sector there are mainly same financing and subsidies as for other companies. Different Tekes and Finnvera financing are presented in the paragraph 3.3.1. Possible subsidies depend on what kind of company is in question. E.g. energy tree subsidy which is presented in this report for forest owners, heat entrepreneurs, chipping contractors or other corporations which are supplying chip.

Environmental subsidies are assigned in many forms. Environmental based government subsidies are granted by Ministry of Employment and Economy, regional environmental centres, Employment and Economic centres, municipalities, Motiva Oy and Tekes. In addition government guarantees and export guarantees are granted from Finnvera. Subsidy can be applied for example to projects which are improving environmental technology development, energy saving, usage of renewable energy forms, waste disposal, air and water protection. As an example environmental subsidies for agriculture and forestry can be applied for energy plant cultivation.

2.2.3.4


Distinctly for forestry machinery there are no subsidies. On the other hand there are subsidies (environment subsidy) for nurturing and harvesting the forest. Financing forestry machine can be getting through Tekes or

Finnvera through different form of loans which are presented previously in this report.

Energy tree subsidies can be gained in case the tree is harvested according to financing law of forestry industry from young forest nurturing object area, which is suitable for funding. Here harvesting means compiling and forest transportation of the tree which is turned over for energy usage. Energy tree harvesting subsidy is 7 Euros / m 3 and smallest supported area is 20 m 3. In case the energy tree is for private usage, subsidy is not paid. The subsidy can be applied after harvesting from the Forestry Centre. Before payment the subsidy recipient has to deliver assertion of trees turn over for energy usage.

Subsidy for chipping the harvested energy tree in nurturing young forest can be got 1, 7 Euros for chipped loose cubic m 3 . Subsidy is given to the forest owner, heat entrepreneur, chipping contractor or other corporation which is supplying chip. The subsidy is applied after the user of energy tree has received the chip.

Buyers’ proof of the received chip amount has to be attached in to the application.

2.2.4


2.2.4.1


The memo and statement of Ministry of Trade and Industry (committee)to European Union subsidization of electricity production based on renewable energy resources were given in the year of 2006.There was detected that systems which are substantiating electricity production (e.g. input tariffs, offering competitions and green certificates) can relate also to negative effects of market development. There was proposed that more deep analysis would be conducted about different acts efficiency and effects in different countries.

Emission trade inside European Union has continued for three and half years and in Finland it has become subsidy automat of Finland state. Hundreds of millions of Euros are distributed to all electricity production.

Right to emit costs approximately 28 Euros per emitted tonne and producers transfers 22 Euros of that straight to the price per MWh. Electricity price is arising all the time in Finland. Price support is given to all electricity production including those which are using water power, coal, and peat and wood chips using condensing

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Financial Frameworks in the target regions power as well as electricity born from co-production of heat and electricity. Together Finnish electricity production is having two billion Euros government subsidy.

European Commission determines the emission limits for the business fields which belongs to the emission trade domain and divides corresponding amount of emitting rights to the government. In Finland Ministry of

Employment and the Economy divides the rights according to the plants for electricity producers and industries. Rights are given to those energy plants which are producing electricity from coal and other emitting fuels. This does not improve the situation of biomass usage in electricity production because emitting rights can be transferred to balance as assets according to the emitting right market price.

Finnish Ministry of Trade and Industry (committee) stands for European Union Action Plan of the Biomass.

European Commission is targeting to that member countries would utilize all opportunities offered by biomass in electricity production. Directive 2001/77/EY assigned to the usage of renewable energy sources forms frames for usage of biomass in electricity production. Without using biomass achieving the targets seems impossible. Subsidy systems of the states should also take in to account that biomass usage produces both electricity and heat.

According to the Fortum, one of the leading energy enterprises in the area of Nordic countries and Baltic Sea region, green certificates are most applicable subsidy system for electricity production from renewable energy sources. Green certificates are most cost efficient and flexible.

Also according to Kari Aarnos Gradual research green certificates are most suitable system for electricity production from biomass. With green certificates there are produced general electricity and the green certificate. Electricity can not be sold double because all granted certificates and business is marked to the register.

In Finland it is voluntary to take part to green certificate trade. It is also possible to purchase so called green energy which is supported with tax relieves, investment and other direct subsidies. Green certificates approves that distinct amount of the electricity is produced by renewable energy. RECS (Renewable Energy Certificate

System) continuously develop green certificate markets and removes barriers of development.

In Finland there is input tariff only for peat. Input tariff for peat was set in 2007, it has to be applied and confirmation certificate has to be delivered in order to receive payment. Now there has been government proposal about input tariff for wind power and details will be agreed in near future. Also conversation about input tariff for biogas and all renewable energy has been on progress and there has implemented researches and got statements from different parties.

For electricity production from biomass there is opportunity to have subsidy for 0, 42 cents per kWh. Subsidy is

0, 69 cent per kWh if electricity is produced from wood chips and 0,25 cents per kWh if electricity is produced from recycle fuel.

Laws related to energy production (electricity and heat): law about burning peat in condensation power plants produced electricity input tariff, law about burning peat warehouse, Council of State regulation about emission trade, Emission trade law, Environmental protection law and regulations and Law about production tax of electricity and some fuels.

2.2.4.1.1


Selling electricity in Finland does not demand any permits. Furthermore, any private person, association or company can sell electricity. This means that selling biomass for electricity production does not require any

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Financial Frameworks in the target regions permits. Treatment and production of distinct biomasses demands e.g. environment permit and that will be presented afterwards in this report. There is operating wholesalers in the markets which are selling electricity big users and local electricity companies. Electricity retailers sell supplies for households, farms and small and medium sized companies. There is no clear difference in Finland between electricity wholesalers and retailers.

Electricity net permit has to be applied from electricity market authority with a document which includes: applicants name and municipality, company name, in which are applicant wants to practise electricity net operations and when operations are meant to begin, if applicant is a company, cooperative association or other association replica of rules and registration has to be delivered, map of the area and information about the network where applicant is going to practise electricity net operations has to be delivered.

2.2.4.1.2


In the Tampere region electricity was consumed 6, 4 TWH and produced 4220 GWh in the year 2004. From the picture 1 it can be seen that 6 % of the electricity was produced by biomass and 8 % by peat which is also counted for biomass. From this picture there can be calculated that electricity produced by biomass in the

Tampere region in year 2004 was 590, 8 GWh.

Structure of produced electricity in Tampere region in 2004 in total 4220 GWh

Peat

8 %

Water Power

12 %

Biomass

6 %

Peat

Water Power

Biomass

Natural gas

Natural gas

74 %

Picture 1: Energy sources of produced electricity. Source of the picture: Biobusiness project, Inventory of

Resources report, 2007, http://www.euro-biomass.com/biobusiness-documents.htm.

In Finland 10,9% of the electricity is produced from biomass, here waste fuels proportion of 0,7% and peat with 7,3% can be added into the biomass. Total production in the year 2007 was 90,3 TWh, which means that

15,5 TWh was produced from biomass. Picture 2 presents the sources of electricity production in Finland.

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Net imports

13,9 %

Oil

0,4 %

Hydro power

15,5 %

Wind power

0,2 %

Peat

7,3 % Coal

14,8 %

Bio fuel

10,9 %

Natural gas

11,4 %

Waste fuels

0,7 %

Nuclear power

24,9 %

Picture 2: Electricity Supply by Energy Sources in Finland http://www.energia.fi/content/root%20content/energiateollisuus/en/news/liitteet/energy%20year%202007%20slides.ppt?SectionUri=

%2fen%2fnews#264,7,Electricity Supply by Energy Sources 2007 (90,3 TWh)

Price of the electricity has an impact on that how much renewable energy potential can be taken into usage and how high subsidy level is needed to utilise that potential.

2.2.4.1.3


Establishing biomass plant requires an environment permit and emitting permit.

Environment permit is needed for forestry, metal and chemical industries, energy production, animal shelters and fish growing. Environment permit gives orders about e.g. extent of the operation, emits and decreasing them. Getting the permit requires that business operations do not cause health impairment or environment corruption or danger of that. Environmental protection law is a base for environment permits. Permit is demanded for new operations and essential changes in operations. Acts can not be started before achieving the permit.

Environment permit application has to be made documentary to the permit authority. Applicant must pay from the permit process. After sending application environment permit authority announces about the application publicly and other authorities and citizens in the influence area can present requirements and opinions about that. After hearing others application goes to the permit assessment and decision is made. There is chance to complain about the decision. Directions for filling the application and appendixes are offered by environment authority.

Plant installation will need also an emitting right which is applied from energy market agency. Operator must deliver the application at least 6 months before starting the operation. In addition there has to be monitoring plan of carbon dioxide emissions as an appendix. Also clarification about the plant, its actions, sources of the emissions and the monitoring plan has to be delivered for the agency. Energy market agency will advice and provide directories about filling the application and compiling the monitoring plan.

In addition there is needed a building permit as well as every construction to build in Finland.

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2.2.4.2


Thermal applications of biomass have been presented in previous reports; Inventory of resources, Study of trends and Detection of Business Opportunities for Entrepreneurs and SME’s in Biomass Sector. As mentioned before (other reports) there can be produced both heat and electricity from the biomass and this is how it is done in the power plants. Furthermore, same laws, requirements and permits are applied for biomass plants which are mainly producing electricity and mainly producing heat (because they are producing both). In addition generally biomass is used mixed with other fuels and the regulations for power plant depends on that how big is the plant and how much it is emitting, not on that whether it is producing heat or electricity.

Fuels of district heating production in Tampere region in 2004, in total 3569 GWh

Wood

7 %

Heavy fuel oil

2 %

Peat

18 %

Wood

Heavy fuel oil

Peat

Natural gas

Natural gas

73 %

Picture 3: Fuels of district heating production in Tampere region in 2004

Heat production fuels in industry in Tampere region in 2004, in total 5331 GWh

Hydrogen

2 %

Liquid gas

1 %

Natural gas

42 %

Peat

12 %

Wood

30 %

Light fuel oil

5 %

Coal

Heavy fuel oil

7 %

1 %

Wood

Light fuel oil

Heavy fuel oil

Coal

Peat

Natural gas

Liquid gas

Hydrogen

Picture 4: Heat production fuels in industry in Tampere region

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2.2.4.2.1


There is no specific legislation for thermal applications of biomass. As mentioned before in this report, biomass plants in Finland are CHP-plants which are producing both heath and electricity. Furthermore, same ordinances and legislations concerns thermal applications as well as electricity applications of biomass. Laws are rehearsed in this report.

2.2.4.2.2


Installation of biomass plant for producing heat requires exactly the same application procedures as biomass plant producing electricity. These procedures are presented previously in this report. In Finland there is mainly

CHP biomass plants which are producing both heat and electricity.

2.2.4.3


Laws related to the extraction of biomass apply environmental laws and forestry law.

2.2.4.3.1


Forest law is set in order to contribute economically, ecologically and socially sustainable nurture and usage in a way that forests give good profits same time as their biological multiformity is remained. This law is quite general and concerns forest logging and related operations, modernisation logging, seedling. Other law related to forestry cleaning is law about environmental effects evaluation.

2.2.4.3.2

Local ordinances

There are no special local ordinances. Forestry Centre of the Tampere region offers information about local forests.

2.2.5


2.2.5.1


Forestry Centres act as selling points of all kind of wooden raw material. Through Forestry Centres it is possible to buy forest, trees, wood chips, etc. Forestry Centre also acts as a network for burning wood (log) sellers.

HAKE –project which was implemented by Sentre (presented previously) built supply network for wood fuels in the Tampere region. This network includes raw material suppliers as well as logistics entrepreneurs, forestry machine entrepreneurs, chipping entrepreneurs and terminal entrepreneurs. Tampere region forestry centre is one of the partners in HAKE-project.

Other raw materials like waste for producing biogas are collected from refuse dumps or farms. Some of the companies have agreements with other companies about taking care of the waste disposal and this way

“buys” the raw material. Farms also sell energy plants.

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2.2.5.2


Pellets are sold by many private companies in Finland, at least 24 companies from which quite many are national chains and has many stores located around Finland. One of the main distributer is VAPO which is government owned and biggest pellet producer in the Baltic Sea region. The Vapo Group consists of the

Parent Company Vapo Oy and four business areas: Local Fuels, Heat and Power, Pellets and Garden and

Environment. Information about pellet, wood chips and briquette distributors can be got through Forestry

Centres.

2.2.5.3


There is no specific network for installers in Finland. Only networks that can be seen are labour unions.

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2.3

B IOMASS F RAMEWORK IN P OMURJE

2.3.1


2.3.1.1


The following table presents the current rate of different biomass installations existed in the Pomurje region.

The data was collected from the Ministry of the Environment and Spatial Planning of the Republic of Slovenia and on the base of the analysis made by the Development Agency Sinergija in the Pomurje region:

Existent biomass application in Pomurje

Biogas plant

Biomass purifying plant

Biomass District Heating (BDH)

Boiler on wood biomass

Boiler for plants dehydration

Number of installations

3

1

4

19.856

1

2.3.1.2


Currently, there are 3 biogas plants operating in Pomurje: the biogas plant in Logarovci – is operated by a sole proprietor Kolar Marjan. Another one, the biogas plant »Nemščak«, in Ižakovci is operated by Matjaž Durič.

There are also two pig farms and a purifying plant nearby. All of the »Nemščak« devices are managed by

Panvita Group, KG Rakičan – EKOTEH d.d. The 3rd biogas plant has just started operating in Petišovci in the beginning of June 2008, managing by ECOS d.o.o. (Jože Pavlinjek) is one of the biggest in Europe. Here are some facts and figures about the biogas plants in the Pomurje region:

INSTALLATION

CHARACTERISTICS

Year of installation

Capacity

Yearly electricity

production

Yearly heat production:

Reactor volume

Costs of the investment

»Fuel«

BIOGAS PLANT

»KOLAR«

(LOGAROVCI)

2006

1 MW

8.000 MWh

11.000 MWh

8.800 m 3

~ 5.000.000 €

(including the purifying plant costs) organic wastes

PURIFYING PLANT

»NEMŠČAK«

(IŽAKOVCI)

2002

161 kW about 796 MWh about 1.176 MWh

No data

See the costs of the

“Kolar” biogas plant pork manure

BIOGAS PLANT

»NEMŠČAK«

(IŽAKOVCI)

2006

1,7 MW

10.000 MWh

11.000 MWh

2 x 5.500 m 3

~ 7.083.000 €

BIOGAS PLANT

»PAVLINJEK«

(PETIŠOVCI)

2008

4,23 MW

28.760 MWh

32.300 MWh

4 x 5000 m 3

14.000.000 € pork manure, organic and associated animal wastes organic silage and other field products only

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There are 4 district heating systems exploiting solely wood biomass through the direct burning In the Pomurje region:

Location of BDH in Pomurje Kind of fuel

Cankova (municipality) 2004 wood chips

Nominal boiler’s power

840 kW

Boilers

Efficiency over 90 %

Automated yes

Cankova (private) 2004

Beltinci (priest’s house) 2005

Beltinci (private) 2005 wood chips wood chips wood chips

80 kW

640 kW

110 kW over 90 % over 90 % over 90 % yes yes yes

There is also a Drying House (2006) on the territory of the Herbal Park in Kuzma serving for the medicinal herbs cultivation with ecological methods. The herbs are drying there during 2-5 days with a help of a dry air

(from +30 to +40°C) coming out from the heat exchanger with a boiler on wood chips (80 kW).

2.3.2


2.3.2.1


 The National Agency for Energy Efficiency and Renewable Energy (AURE), managed by the Ministry of the Environment and Spatial Planning (MOP), is attended to many different activities in the field of

RES & RUE in Slovenia: o AURE gives subventions (for natural persons or corporate bodies) specifically encouraging the biomass sector in Slovenia – installations of boilers / BDH on firewood, woodchips or pellets; o AURE gives subventions for Energy audits in enterprises / public buildings and Feasibility

studies for investments into efficient energy use and renewable energy sources; o AURE gives subventions for Energy municipality concepts preparation; o AURE is supporting the individuals / enterprises with free consultations on different topics of energetics, including energy use of wood biomass – Energy advisory network ENSVET (36 offices over Slovenia (2 in Pomurje), over 70 energy advisers); o AURE is promoting to a wide public a list of preventive measures for energy use reduction; o AURE is publishing and disseminating different types of information lists about best practice projects, brochures on energy savings and use of RES, QM-instructions and

guidebooks for energy management and energy technologies; o AURE, together with the gazette “Gospodarski vestnik”, is awarding the nomination for “The best energy efficient enterprise”, “The best energy manager” and “The best energy project”; o AURE, in the frame of the Global Environmental Facility (GEF) project’s task “Effect evaluation methodology of the OVE projects on greenhouse gas emissions”, has created a sort of VEM tools for the whole energy, environment and economy evaluation of the project effects on GHG emission reduction by using of RES (precisely, VEM Boilers – evaluation of

GHG emission reduction by using small-scale boilers / other heating systems on wood biomass in households / other small-scale objects); o AURE, in the frame of the GEF project, is organizing different seminars / trainings/

workshops in the field of wood biomass exploitation for engineers, installers, chimney sweeps, and consultants;

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Financial Frameworks in the target regions o AURE, in the frame of the GEF project, LesENDemo, together with other related organizations during 2005-2006 has performed several regional introductions LesEnDemo subjected to awareness rise and promotion of wood biomass marketing for energy use in Slovenia; o AURE has created a informative network portal and application (stock exchange) for marketing with wood biomass ove.borzen.si

.

 The government of Slovenia, i.e. Ministry of the Environment and Spatial Planning, ensures the

repurchase and redemptory price of the electricity produced by qualified electricity producer, including biogas plants on biomass, which is specified in the Decree on the rules for determining prices and

purchasing of electricity from qualified electricity producers (O.J. RS N o 25/2002 ) and Energy Act (O.J.

RS, 27/2007).

 MOP (The Ministry of Environment and Spatial Planning) is initiating use of biomass with help of

Regulations on the allocation of funds for the promotion of efficient use of energy and utilization of renewable energy sources (O.J. RS N o 49/2003 );

 There is a National development programme embracing the whole Slovenia – OP ENLES (Operative

Programme for Wood Biomass Usage as a Source of Energy, 2007-2013) prepared by the MOP RS. The programme is intended to the strategy of the rational wood biomass usage in Slovenia and directed as to individuals, so to corporate bodies, including those from the biomass sector;

 The Environmental Fund of the Republic of Slovenia EKO SKLAD offers financial support by two investment ways: subventions for individuals or credits both for enterprises or individuals engaged in the biomass sector.

 The Technology Cluster for Energetics, established in 2000 by the initiative of the Chamber of Crafts,

Murska Sobota and engineering company RE-ING Brdnik Joze s.p., provides different projecting services, including related to biomass installations, fitting of RE technology for households, business and public sector. Together with the municipalities of Pomurje, the Cluster and the Local Energy Agency are collaborating in order to encourage widespread public awareness about biomass exploitation.

2.3.2.2


 A significant step forward in promoting of RES in Pomurje was made in 2004, when the Local Energy

Agency Pomurje was established. The Agency is providing information campaigns, consultations, publishing, seminars on energy matters for end users (individuals, business, municipalities), preparing and implementing currently the Energy concepts for 18 municipalities in the Pomurje region;

 Development agency Sinergija has published a couple of booklets on RES, including the information about the efficiency of biogas plants and boilers / district heating systems.

 The regional and local development agencies, the Institute of Forestry, as well as the Institute for

Agriculture and Forestry are promoting the biomass sector in mass-media: different consultations / dialogues at regional radio stations, regional and local television channels. Their programmes and advertising were targeted both to biomass enterprises and individuals.

 There is also a pilot project in Pomurje called “Smart House” in Martjanci (18 th century building, renovated under historic preservation). Essentially, the Smart House is the first Shining Example of such a building in the whole Slovenia, that already has / will have most of the RES appliances installed and RUE measures implemented at one location. It perfectly functioning as a demonstration and dissemination center of RES & RUE, specifically as for the BDH system on wood chips and the photovoltaic for electricity production. When the Smart House is done to the end, it will present and promote a lot of useful ways that could be applied also in other project areas. And at the same time it will stimulate the positive attitude of both the inhabitants and the enterprises towards the intelligent exploitation of RES & RUE. Thus, as the best promotional example, this project will have an important impact on overcoming informative gap and lack of citizen's awareness.

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2.3.3


2.3.3.1


 The National Agency for Energy Efficiency and Renewable Energy (AURE), under the umbrella of the

Ministry of Environment and Spatial Planning (MOP), offers the following annual incentives for the

installations of boilers / heating systems on firewood, pellets or woodchips: o Public call for financial incentives to investment measures for renewable energy sources utilization in households (OVE-G 2007/08) – step D; o Public call for financial incentives to investment measures for energy utilization of the wood biomass in households (OPEILB-G 2006); o Public call for financial incentives to investment measures for energy utilization of the wood biomass intended to corporate bodies or individuals (OPEILB-I 2005).

 The Environmental Fund of the Republic of Slovenia (EKO SKLAD) offers the following incentives for the installations of boilers / heating systems on wood biomass: o Public call to subsidize citizens for renewable energy sources utilization and increasing of residential premises energy efficiency (1SUB-OB08) – steps B and C; o Public call to crediting of citizens’ environment investments (39OB08A) – step B; o Public call to crediting (interest-free loans) of citizens’ environment investments in the regions damaged by stormy weather (37OB07B).

2.3.3.2


 EKO SKLAD also offers favourable credits for thermal or electric power station installations to municipalities, economy societies, other enterprises or individuals engaged in the biomass sector: o Public call to crediting of individuals’ or corporate bodies’ environment investments

(40OB08A) – step A.

 The project »Eliminating of the gaps for enlarged use of biomass as an energy source 2002-2007«

(SVN/01/G31/A/1G/99) was a Government project implemented by the MOP and EKO SKLAD, cofinanced by the Global Environmental Facility (GEF) via the United Nations Development Programme

(UNDP) for encouraging the biomass exploitation in Slovenia. As a result, 8 big demonstration projects -

Biomass district heating systems (BDH) on wood biomass have been installed all over Slovenia. The total value of subventions were estimated at 11,8 millions of USD.

2.3.3.3


Besides the subsidies and credits from AURE and EKO SKLAD mentioned above there is also:

 A Regional Guarantee Scheme of Pomurje directed to the sector operating in the field of RES. This

Guarantee Scheme annually publishes Calls for long-term credits and guarantees for fostering entrepreneurship in Pomurje

(http://www.rra-mura.si/sl/informacija.asp?id_meta_type=9&id_informacija=144);

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 Likewise, the Regional Development Agency MURA, together with the Employment Office of Pomurje, annually publishes Calls for credits, primarily directed to newly established SMEs and for self-employees, including those from the biomass sector (www.rra-mura.si).

2.3.4


2.3.4.1


2.3.4.1.1


According to the Slovenian energy legislation there are some ordinances and specific legislation related to

electricity:

 Energy Act EZ-UPB2 (Official gazette of the Republic of Slovenia N o 27/2007) – defines principals of energetic policy, rules of energetic market operation, public service implementation in the field of energetics, principles for reliable energy supply and incentives for production of electricity from RES, including biomass. The government of Slovenia thus ensures the (re)purchase and redomptory price for electricity produced from biomass.

 Resolution on the National Energy Programme (Official gazette of the Republic of Slovenia N o

57/2004 ) – is a strategic document. The Programme sets goals and mechanisms for energy usage and supply. The goals are combined into 3 pillars of sustainable development: reliable energy supply, competitiveness of energy supply and restrain control over negative influence on environment.

According to the EU Directive 2001/77/EC, the National Energy Programme of Slovenia has set up the following goals related to electricity:

1.

To increase the production of electricity from the RES up to 33,6% util the year 2010 in comparison with 2002;

2.

To double the share of electricity from co-production from 800 GWh in 2000 up to 1,600 GWh in 2010;

3.

To increase the share of RES in the primary energy balance from 8,8% in 2001 up to 12% in 2010.

According to the National Energy Programme, the Slovenian government gives incentives for production of electricity from renewable energy sources. The aim of the incentive is to stimulate and increase production of green electricity:

 The incentive is defined in the Decision on prices and premiums for the repurchase of electricity

from qualified electricity producers (Official gazette of the Republic of Slovenia N o 75/2006 ).

 Individuals or companies producing green electricity, have to acquire status of a qualified electricity producer, which is specified in the Decree on the requirements to be met for obtaining the status

of a qualified electricity producer (Official gazette of the Republic of Slovenia N o 29/2001 , 99/2001 ).

 Redemptory prices are specified in the Decree on the rules for determining prices and purchasing

of electricity from qualified electricity producers (Official gazette of the Republic of Slovenia N o

65/2008 ) and Energy Act (O.J. RS, 27/2007).

In 2002 Regional Council of Pomurje has adopted Regional Development Programme for the period 2007-

2013, where a strong priority on the RES and RUE projects is given. The Council has also supported the

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Financial Frameworks in the target regions establishment of Local Energy Agency for Pomurje region. The Agency’s mission is aiming to promotion of energy efficiency and renewable energy sources in the Pomurje region.

2.3.4.1.2


The Government of the Republic of Slovenia, i.e. Ministry of the Environment and Spatial Planning ensures the

(re)purchase and redemptory price for the “green energy” produced by qualified electricity producers connected to public grid-connected systems. The following table shows the current single annual prices and premiums in depends on the type of the biogas plant (Source: Decision on prices and premiums for the purchase of electricity from qualified electricity producers, O. J. N o 75/2006 )

Type of qualified electricity producer

Biogas plant on biomass

Biogas plant on biomass

Co-burning of biomass

Capacity up to 1 MW over 1 MW over 1 MW

Single annual price

(€ / MWh)

123,17|

119,35

-

Single annual premium (€ / MWh)

70,79

66,97

22,00

2.3.4.1.3

Process of permission application for the installation of biomass plants.

In Slovenia the installation of an industrial object, such as a biogas plant, either inside or outside the settlements, is performing in accordance with the Strategy of spatial development of Slovenia (Official gazette of the Republic of Slovenia N o 76/04), chapter 2.3.2. ”Renewable energy sources” arranged by the Ministry of

Environment and Spatial Planning. That strategy presents the definite directions for new objects planning for the purpose of the renewable sources exploitation.

According to the Spatial planning Law (O.J. RS N o 33/07) and the Ordinance on kinds of the spatial

arrangements of the state importance (O.J. RS N o 95/07) the biogas plants on biomass as well as the other objects for heat production, irrespective of its actual power, are not considered as the objects of the state importance. So, the planning of such new objects in Slovenia is falling within the competence of local government bodies, i.e. municipalities.

Therefore, to get a Building and operating permit the following procedure should be met:

1.

The initiator should make an Application to a municipality, where the land for the foreseen biogas plant is found on – Ordinance on definition of the state importance objects (O.J. RS N o 33/03, 78/05-

corr.). There is a Municipal Spatial Act that authorizing new construction, major alterations in municipalities in compliance with the Strategy of spatial development of Slovenia and Ordinance on spatial regulation of Slovenia (O.J. RS N o 122/04).

2.

A project for a Building permit obtainment should be prepared in accordance with Municipal

Spatial Acts. Actually, it should contain: a.

a project for work implementation, b.

a project for implemented works, c.

a project of operation and maintenance.

3.

A corresponding Location Energy Concept should be prepared in accordance with Energy Law

(O.J. RS N o 27/07, 70/08-corr.) accepted by the self-governing local authority every 10 years. The

Location Energy Concept, together with directions of the Strategy of spatial development of Slovenia and Ordinance on spatial regulation of Slovenia, determine the methods and conditions for the erection of such kind of objects in the municipality’s space;

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4.

The complete Environmental Impact Estimation (2 stage proceeding), which is bounded to the

Environmental Protection Law (O.J. RS N o 39/06-corr.), should be realized before the biogas plant installation in order to obtain the Environmental ratification from the Ministry of Environment and

Spatial Planning of Slovenia. The main idea of this analysis is to show that the foreseen project

(biogas plant) will not make any harm to the local environment in compliance with the Ordinance on kinds of environmental interventions (O.J. RS N o 78/06). Afterwards, the Ministry of Environment and

Spatial Planning of Slovenia will ratify the project, indicating with its resolution the restricted provisions, measures and terms to be fulfilled by the project initiator;

5.

Agreements of all the involved natural persons or corporate bodies – organizations or neighbours (citizens of the municipality), living close to the foreseen biogas plant.

Finally, after managing of all the abovementioned arrangements, the municipality administration will issue a

Building and operating permits, so that the initiator could start building.

The official exploitation of the new built biogas plant starts on the condition of the Exploitation permit issued by the same municipality after the Technical examination of the object.

During and after the project implementation the Revision of the Environmental Impact Estimation is obligatory.

It is also worth to mention, that the project initiator has an opportunity for favourable credits from the public

EKO SKLAD (Environmental Fund of the Republic of Slovenia) for the of biogas plant installation. In this case the initiator should apply for the public Call in the beginning of the permission procedure.

2.3.4.2


2.3.4.2.1


According to the Slovenian energy legislation there are some ordinances and specific legislation related to

heating systems:

 Energy Act (Official gazette of the Republic of Slovenia N o 27/2007);

 Resolution on the National Energy Programme (Official gazette of the Republic of Slovenia N o

57/2004 );

 Ordinance on efficiency requirements for new heating boilers on liquid or gas fuels (Official gazette of the Republic of Slovenia N o 107/2001 , 20/2002 );

 Ordinance on maintenance of small heating systems when performing the public service of inspection, controlling and cleaning of heating systems, fumigation and ventilation devices for

the purpose of air protection (Official gazette of the Republic of Slovenia N o 2/2002 , 128/2004

( 18/2005 – corr.));

 Decree on emission of substances into atmosphere from heating systems (Official gazette of the

Republic of Slovenia № 73/1994 ( 83/1998 - corr.).

According to the EU Directive 2001/77/EC, the National Energy Programme of Slovenia has set up the following goals related to heating:

To increase the share of RES in the primary energy balance from 8,8% in 2001 up to 12% in 2010: o from 22% in 2002 up to 25% in 2010 with heat supply;

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Financial Frameworks in the target regions o o fostering district heating systems installations on wood biomass; increasing taxes for fossil fuels for heating.

2.3.4.2.2

Process of permission for the installation of biomass plants (Heating producers)

The installation of a district heating system (BDH) is performing by the same procedure like above mentioned for biogas plant with the only difference - The Analysis of the Environment Impact Estimation is not needed to be renewed after the BDH installation.

It is also worth to mention, that the project initiator has an opportunity also for favourable credits from the public EKO SKLAD for the of BDH installation.

2.3.4.3


2.3.4.3.1


Currently, there are Ordinances on felling execution, treatment with wood wastes, transporting and

storing of wood assortments (Official gazette of the Republic of Slovenia N o 95/2004) regulating (not legalizing) the forestry cleaning in Slovenia. However, irrespective of the fact that being on the 3 rd place within the EU after Sweden and Finland by forest covering characteristic (57,7 %), some of the national woods of

Slovenia are suffering from the redundant wood and badly need to have felling. Actually, somewhere there are state/municipal enterprises or private wood owners are doing such procedure when needed, but selectively and not on regular terms. As a result, the redundant woods are not only polluting the environment, but also preventing the vegetation for new and salubrious increments.

2.3.4.3.2

Local ordinances

According to the Slovenian energy legislation there are some ordinances and specific legislation related to forestry:

 Forestry Law ZG (Official gazette of the Republic of Slovenia N o 30/1993, 110/2007-corr.);

 Law of alterations and completions of the Forestry Law ZG-A (Official gazette of the Republic of

Slovenia N o 67/2002);

 Regulations on forest-biological reproduction (Official gazette of the Republic of Slovenia N o

32/1985);

 Ordinances on taxes for forest roads maintenance (Official gazette of the Republic of Slovenia N o

20/1995);

 Resolution on organization and opening of Forestry Institute of Slovenia (Official gazette of the

Republic of Slovenia N o 43/1994);

 Regulations on minimum conditions that should be fulfilled by the forest workers (Official gazette of the Republic of Slovenia N o 35/1994);

 Programme of forest development in Slovenia (Official gazette of the Republic of Slovenia N o

14/1996);

 Ordinances on felling execution, treatment with wood wastes, transporting and storing of wood

assortments (Official gazette of the Republic of Slovenia N o 95/2004);

 Decree on public general work beginning of forest economic plan of all the forest economic

units of Slovenia (Official gazette of the Republic of Slovenia N o 59/1996).

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2.3.5


2.3.5.1


Raw materials for biogas plants

In fact, all 3 biogas plants and 1 purifying plant in the Pomurje region are the independent proprietors of fields and farms, from where they supply raw materials for the further biogas production either for electricity or heating needs. Otherwise, the biogas plants are also connected to agreements signed with different farmers or farms for the regular raw material supply.

Raw materials for district heating on wood biomass

As for the raw materials for 4 existing district heating systems, as well as for individuals using the heating boilers on wood biomass (BDH), there are many ways of supply in Pomurje: a) there are 24 sawmills, 94 joiner’s workshops and other small or medium-size private enterprises who may produce firewood or wood chips for heating; b) the competent companies related to wood waste processing (listed in the section 4.2.) are also one of the main suppliers of raw materials to BDH and individuals; c) the individuals, besides abovementioned possibilities, are also providing themselves with firewood from their private woods; d) the wood ‘fuel’ suppliers from Pohorje, Koroška, Kočevje (regions of Slovenia), as well as from neighbouring countries – Hungary, Bosnia.

2.3.5.2


The following table presents the current rate of different enterprises supplying wood biomass items to

Pomurje. The data was collected on the base of the analysis made by the Development Agency Sinergija:

Supplier of wood biomass

WV term d.o.o.

ISTRABENZ GORENJE

Energetski sistemi in storitve, d.o.o.

GRAMAS inženiring podjetje, d.o.o.

Profiles

Trgovina, proizvodnja in uvoz

Enerles d.o.o.

Biopel d.o.o.

Tisa d.o.o. gozdarske storitve

Snežnik SINPO d.o.o.

Snežnik PE lesna predelava

Kind of supply pellets pellets, briquettes pellets pellets pellets pellets, wood chips wood chips wood chips, wood wastes wood chips, wood wastes

Address

Valvasorjeva ul. 73, 2000

Maribor

Tumova 5,

5000 Nova Gorica

Letališka ul. 32,

1000 Ljubljana

Razdrto 46,

6225 Razdrto

Snežniška 16,

6257 Pivka

Skakovci 21,

9261 Cankova

Ižanska cesta 213,

1000 Ljubljana

Kočevska reka 1a,

1383 Kočevska reka

Kočevska reka 40,

1383 Kočevska reka

Contact person

Gregor Marksl

Jure Špacal

Franc Plevnik

Rudi Blažek

Darinka Mavrič,

Robert Žele

Milan Fras

Matej Stegel,

Tadej Mahkovic

Anton Križ

Andrej Puš

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Letnik Saubermacher d.o.o.

Ivan Ornik d.o.o.

Čisto mesto Ptuj d.o.o.

Podjetje za gospodarjenje z odpadki

EKO LES Ptuj d.o.o.

Mizarstvo Kovač stavbno pohištvo

Mikek Ivan s.p. mizarstvo, žagarstvo

Smreka d.o.o. montažna gradnja

Kia d.o.o. prevozništvo in briketarna

Strle Mirko Matija s.p.

M.A.D.J. d.o.o.

EKO-S, Muri Peter s.p.

Feroterm Lenterm d.o.o.

Biomasa d.o.o.

Marijan Kuhar

Čisto mesto Ptuj d.o.o.

Horizont d.o.o.

EKOSISTEMI d.o.o.

Meh Mirko

STADLOBER wood chips wood chips wood chips wood chips wood chips, wood wastes wood chips wood chips firewood, wood chips, briquettes pellets pellets wood chips pellets wood chips wood chips wood chips firewood, pellets, briquettes wood chips wood chips pellets, wood chips

Spodnji Porčič 4a,

2230 Lenart v

Slovenskih goricah

Ledinek 47,

2233 Sv. Ana v Slovenskih goricah

Dornavska c. 26,

2250 Ptuj

Rogozniška ul. 14,

2250 Ptuj

Ljubija 55,

3330 Mozirje

Bočna 56,

3342 Gornji Grad

Podsmrečje 20,

3342 Gornji Grad

Šmihel 12,

6257 Pivka

Dolnja Bitnja 14 a,

6255 Prem

Martinjak 1,

1380 Cerknica

Zgornje Jezersko 72,

4206 Zgornje Jezersko

Mariborska 12,

2352 Selnica ob Dravi

Krnica 52,

3334 Luče ob Savinji

Visoko 39,

4212 Visoko

Dornavska c. 26,

2250 Ptuj

Vodovodna 30 c,

2000 Maribor ulica XIV. divizije 14, 3000

Celje

Završe 80,

2382 Mislinja

Judenburger Strasse 5,

8753 Fohnsdorf,

Östereich

Janez Letnik

Ivan Ornik

Franc Merc

Jordan Štokelj

Miha Kovač

Mikek Ivan

Viljem Zabukovšek

Anton Kaluža

Strle Mirko Matija

Muri Peter

Danijel Mandl

Rok Suhodolnik

Marijan Kuhar

Franc Merc

Alenka Lovrec

Bojan Pakiž

Mirko Meh

Karl Stadlober

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2.3.5.3


The following network presents the current rate of the installers and engineering companies for district heating systems (BDH) / individual boilers on wood biomass within Slovenia. The data was collected by the

Development Agency Sinergija and Local Energy Agency Pomurje:

Supplier of wood biomass

WV term d.o.o.

ISTRABENZ GORENJE

Energetski sistemi in storitve, d.o.o.

Kovintrade d.d. projektiranje

EVJ Elektroprom d.o.o. projektiranje

PUR d.o.o.

Proizvodnja cevi za sisteme DO

Biomasa d.o.o

Järnfosen International d.o.o.

EKODOM d. o. o.

METEX d.o.o.

ETIKS d.o.o.

EKO-S, Muri Peter s.p.

TILIA d.o.o.

G-V motaža

Ivan Šarkezi s.p.

Feroterm Lenterm d.o.o.

KWB, moč in toplota iz biomase d.o.o.

Mitraka d.o.o.

IKA, ŽIRI, d.o.o.

LINDAP d.o.o.

Address

Valvasorjeva ul. 73,

2000 Maribor

Tumova 5,

5000 Nova Gorica

Mariborska 7,

SI-3000 Celje

Loke pri Zagorju 22,

1412 Kisovec

Industrijska ulica 4b,

9200 Lendava

Krnica 52,

3334 Luče ob Savinji ul. XIV. divizije 14,

3000 Celje

Celovška cesta 122,

1000 Ljubljana

Tržaška c. 37a,

2000 Maribor

Prožinska vas 15,

3220 Štore

Zgornje Jezersko 72,

4206 Zgornje Jezersko

Ljubljanska c. 89,

8000 Novo Mesto

Vransko 66,

3305 Vransko

Mariborska c. 12,

2352 Selnica ob Dravi

Attemsov trg 9,

3342 Gornji grad

Kamniška 35,

2000 Maribor

Industrijska 11,

4226 Žiri

Parižlje 12 d,

3314 Braslovče

Contact person

Gregor Marksl

Jure Špacal

Peter Komplet

Alojz Barlič

Branko Žižek

Rok Suhodolnik

Roman Vodeb

Miha Kačič

Nikolaj Pauko

Drago Žulič

Jure Rebolj

Milan Knap

Ivan Šarkezi

Danijel Mandl

Tomaž Rifelj

Miran Šajt

Milan Starc

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2.4

B IOMASS F RAMEWORK IN THE C ENTRAL H UNGARY R EGION

2.4.1


2.4.1.1


Large scale biomass related installations are not typical in the Central Hungarian region due to its character, namely that the region is dominated by the capital, a metropolis with the service industry as the dominant sector. The region consists of the capital and Pest County, neither of them with significant biomass related investments. For example, no installations for biomass based power generation, at least not on a considerable level, can be located in the region while other biomass related technologies are also missing from the area. In fact, there are only 6 biogas plants in the whole country, 5 of which started operating only last year. As earlier studies pointed out, Central Hungary is the least biomass relevant region with a significantly smaller share in agricultural and forestry related production and action than most of the other regions. Small scale, local level or household biomass utilization, and such smaller scale installation of technology, is starting to take place but still remains rare

For most agricultural enterprises and farms, energy supply, which is a basic condition for economical operation, is a major problem. Utilisation of renewable sources of energy (solar energy, biomass, etc.) is insignificant.

2.4.1.2


Regional programmes with focus on biomass related installations have started to be launched recently with especial attention on energy production from renewable sources. As a result of the increased interest 5 biogas plants were launched last year. The latest such national funding programme (Central Hungary Operational

Programme – Increasing the utilization of renewable energy resources), closing in April 2008, received 16 applications for the installation of large scale facilities used for renewable energy generation. This number indicates the increased interest in the utilization of biomass for energy generation purposes and also the increased technological knowledge and capacity possessed by the individual companies to engage in such large investments.

The largest such installation remains the construction of the Central Wastewater Treatment Plant of Budapest which will treat 350 thousand cubic metres of wastewater on a daily basis deeming the construction as the largest such facility in East-Central Europe. The investment is implemented by EU support with considerable

Cohesion Fund support.

There is also an increase in smaller scale investment, mainly boiler installations for household or local purposes, but there is no concrete data as to its magnitude.

Hindrances of further large scale installations: The current demand of the plants exceeds the domestic supply therefore they are forced to export raw material. The installation of further capacities thus is only profitable in case of efficiency increase or the plantation of energy crops. The domestic market is characterized by large, low-efficiency / performance plants which take up the full available wood supply therefore there is very little opportunity for the installation of smaller heating or power plants.

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2.4.1.3

Commercialisation of these technologies in the target regions.

There is no available reliable data concerning the companies working in the commercialization of biomass related technologies. The membership of professional groupings and clusters can be taken as the base for unofficial estimations but, as it often turns out, many of the member companies in these groupings have little or no direct involvement in biomass related actions and operation. Examining the more established biomass groupings based in the region we find a membership of 50-70 companies and other organizations of which around 15-25 is located in the capital or in the Central Hungary Region itself. These numbers, however, cannot be referred to as an official calculation of biomass related companies and organizations as the description of their exact operation are often not available through any direct and indirect source. There are no up to date databases either that could be used as a basis for identifying and locating biomass companies.

It also has to be noted that many suppliers, producers and re-sellers of biomass technology (e.g. boiler) cannot be identified due to the fact that no biomass related activity is listed in their profiles. These are usually companies that devote only a part of their capacity to the production or trade of biomass technology while satisfying ‘more mainstream’ requirements. It is also a problem that a large number of companies still do not appear on the Internet.

2.4.2


2.4.2.1


Promotion of the use of biomass is limited basically to professional events: conferences, fairs, information days, workshops, etc. There are a number of international conferences and fairs, mainly in Budapest, with emphasis on renewable energy production and utilization where biomass is given due priority and promotion.

Apart from these events it is usually one (or more) of the biomass groupings (such as the Hungarian Biomass

Association) that organizes regular conferences, normally on a yearly basis, exclusively on biomass with issues such as the domestic situation of the sector/industry, utilization opportunities, funding opportunities, legislative background and national regulatory environment, etc.

In connection with events focusing on national and international funding / project opportunities (information days) biomass is given focus only if it is specifically supported in the given priority. These information days are organized by regional, national intermediary organizations or Hungarian partners in international projects.

Apart from these events, the general public rarely receives information on the use and utilization of biomass.

Promotion actions target those who work in the biomass industry but even these originate from the professional circles and hardly from the various relevant public institutions.

2.4.2.2


Based on the interviews it can be stated that most of the companies receive information on biomass (thermal and electric utilization) during professional events, such as conferences, fairs, information days or workshops.

For further details please refer to the paragraph above.

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2.4.3


2.4.3.1


A number of nationwide programmes offer considerable support to individuals and small communities for the improvement of energy efficiency. One of the most popular such programmes is the so called NEP-2008-5 within the Energy Saving and Energy Efficiency Action Programme, announced by the Ministry of Transport,

Telecommunication and Energy. Within the programme individuals, blocks of flats and other house groupings can apply for funding to co-finance their investments in the following areas: replacement of traditional energy sources with renewable energy sources; construction of facilities for the generation of heat energy and electric power from renewable energy resources; increasing the utilization of biomass, geothermal energy, wind and solar energy (sun collectors, solar cells) hydro energy and organic waste.

This programme supports the purchase and installation of boilers as well.

There are a number of other programmes that provide funding for the purchase and instalment of technologies but they are not strictly related to renewable energy and within it biomass, rather on general acquisition of equipment, tools, machinery, etc.

2.4.3.2


The main national program that addresses biomass as a priority area is the Environment and Energy

Operational Programme and within it the ‘Increasing renewable energy utilization’ priority. The priority focuses on the support of SMEs, local governments, municipalities, industrial / economic partnerships (energy agencies, etc.) that engage in heat or electricity or bio-ethanol production. The financial construction concentrates primarily on renewable energy production (relating to agricultural investments and developments) based on energy plants and agricultural by-products. The priority also gives place to the utilization of wood but only if it ensures the assertion of sustainability principles. Within it one of the most emphasised areas that receive financial support is biomass utilization.

The co-financing rate for projects under this priority varies between 10-50% depending on the type of applicant

(small and medium sized enterprises can obtain higher percentage) or the profitability parameters of the project.

Objectives of the priority

 Increasing renewable energy based electricity production

 Increasing renewable energy utilization

 Reduction of green house gases

Out of the current funding opportunities within the Environment and Energy Operational Programme two has focus on renewable resource utilization:

1.

Heat and/or electric power generation from renewable resources

2.

Increase of energy efficiency

Both of them are available to small and medium enterprises as well and both co-finance medium and large scale investments.

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2.4.3.3


Financing is obtainable through national programmes just as the ones detailed above. Apart from these, companies in the biomass sector receive no fundamental subsidy only on the basis that they are engaged in biomass related activities, although the so-called single area payment scheme – SAPS can be supplemented with other direct national subsidies in case of plant cultivation for energy purposes.

2.4.4


2.4.4.1


Feed in tariff system for renewable

The increase of renewable energy use is supported on legal level with obligatory acceptance of green electricity on higher price. The most important tool to increase the share of green electricity is the preferential feed in tariff system. The legal fundament of the feed in tariff system was first laid down in the Act on Electricity

(CX of 2001). The implementation details and prices defined by Decrees of the Minister of Economy and

Transport. The general regulations were laid down in 56/2002 (XII.29) Decree of Minister of Economy and

Transport on “Guaranteed feed in tariff, all energy generated from renewable energy resources” (regularly updated). In line with the regulation there is a uniform price for every type of green electricity, and the price depend on the demand driven real price.

The wider utilization of renewable energy resources is defined basically through three segments of legislative regulations. International agreements, operative national laws, and EU regulations (not detailed in this study) influence directly, while EU resolutions and guidelines influence indirectly the implementation of their contents.

Under the Kyoto Protocol, Hungary is committed to reducing its emissions of all six greenhouse gases (CO

2

,

N

2

O, CH

4

, SF

6

, HFC

5

, PFC

5) by 6% by 2008-2012 from a 1985-1987 baseline. As an economy in transition,

Hungary was free to choose that baseline, which marked the country’s highest level of energy consumption.

Hungary acceded to the Kyoto Protocol on 21 August 2002 and the basic strategic elements to meet its commitments under the Protocol are incorporated into the second National Environmental Programme as stipulated already in 2001 (Government Resolution 1117/2001 (X.19.) Korm on the concept for the second planning period (2003-2008) of the National Environmental Programme. The specific tasks together formed the “Thematic action programme (TAP) on climate change” under the NEP-II. The basic priorities were as follows: the reduction of green house gas GHG emission through mitigation measures in the energy sector, industry, transport and agriculture, enhancing sink capacities, strengthening the institutional basis to meet the monitoring and reporting requirements, raising public awareness among others. These tasks were formulated as part of an overall environmental strategy and also within the framework of the preparation for Hungary’s accession to the European Union.

The national climate change strategy set the overall objective for the domestic mitigation measures i.e., the net

Hungarian global warming potential (for the gases covered by the Kyoto Protocol) has to remain below 94% of the average emission level in the base period of 1985-87. Hungary joined the European Union in 2004 and since then on the one hand it takes part in formulation of Community climate change related policies and legal instruments, on the other hand, it fulfils the relevant Community programmes and regulations.

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Legislative framework

By the Government Resolution 1031/2000. (IV. 7.) Korm. the Hungarian Government created the Energy

Efficiency, Environment and Energy Information Agency (Energy Centre for short) with the primary aim of creating the institutional framework for the implementation of the Energy Saving and Energy Efficiency Action

Programme (ESEEAP) that is the key instrument in meeting the Kyoto targets within the energy sector, primarily in demand side energy use. The founders and owners of the Energy Centre are the Ministry of

Economic Affairs and Transport (60%), the Ministry of Environment (25%) and the Hungarian Energy Office

(15%). The basic tasks of the Energy Centre are:

 to manage the annual energy saving programmes (named as SZT-EN or NEP in the different years);

 to manage other energy efficiency funds (such as EHA, EHP, UNDP-GEF);

 to operate the national level energy statistics system;

 to co-operate in the development of national energy policy;

 to be instrumental in information exchange on energy-related matters between Hungary and the international community, primarily the European Union;

 non-profit based information dissemination on energy and energy efficiency;

 to manage international energy efficiency and environmental programmes.

Land-based support for energy crops and forests

In line with the priorities of National Rural Development Plan, Decree 28/2005. (IV. 1.) FVM (Ministry of

Agriculture and Rural Development) provides for financial support for various agricultural activities that are entitled for support from the European Agricultural Orientation and Guarantee Fund. The decree allocates

EUR 946 000 for the production of energy crops (both wood and herbaceous plants). The detailed regulation of the support is codified by 74/2005. (VIII. 22.) FVM. The latter decree defines which plant classifies ad energy crop, maximises the area that can obtain financial support and the obtainable finance: for wheat, corn, rape and sunflower together it is 16 000 ha and EUR 27/ha, for energy grass 10 000 ha and 32 EUR/ha and for energy forest 2 500 ha and 194.13 EUR/ha.

Emission Trading System

In compliance with the relevant Community acts (2003/87/EC; 2004/156/EC) the Hungarian Parliament approved the Act XV of 2005 on the trading system of greenhouse gas emission units. This created the official framework for the allocation, trade, utilisation of GHG emission units and also codified those activities that are subject to emission licences.

Regulation and support of CHP and renewable power

The objective of this policy item is to promote combined heat and power (CHP) production and renewable energy based power generation as a highly efficient tool of GHG emission reduction. The primary objective of supporting renewable-based power generation and the relevant legislation (Act LXXIX of 2005 on the amendment of Act CX of 2001 on electricity; Decree 56/2002. (XII.29) GKM.) is to ensure that Hungary can comply with its international commitments to increase the share of renewable energy in power generation to

3.6%, and the share of overall renewable energy to 5% by 2010, as a part of the general GHG mitigation policy of the European Union.

The relevant legislation (Decree of the Minister of Economic Affairs and Transport 56/2002(XII.29) GKM.) adopts two ways of support:

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 Stipulates the mandatory purchase of co-generated electric power

 Provides financial support for the operators of CHP plants in the form of regulated and subsidised feed in tariff.

2.4.4.1.1


Act LXXXVI of 2007

With a view to setting up an efficiently functioning internal electricity market, to promote energy efficiency and energy conservation within the framework of sustainable development, to provide consumers with a secure and reliable supply of electricity of a specified quality at transparent prices, to integrate the Hungarian electricity market into the converging electricity markets of the European Communities, compliance with the legislation of the European Communities, and to develop an objective and transparent regulatory regime in compliance with the principle of equal treatment, Parliament has adopted Act LXXXVI of 2007:

Extracts from the Act on renewable energy generation and utilization

Electricity Generated from Renewable Energy Sources and Waste, and Support for Electricity

Produced in a Cogeneration Process

Section 9

(1) With a view to the protection of the natural environment, to the supply of users, with regard to saving primary energy, and to expand the range of available energy sources, the use of renewable sources and waste as an energy source for power generation and cogeneration processes shall be endorsed.

(2) To promote the use of renewable energy sources, waste as an energy source, and electricity produced in a cogeneration process, this Act and another legislation adopted under authorization by this Act lays down the foundation for a differentiated purchasing obligation regime in consideration of energy sources, generation procedures, nominal generating capacity, the efficiency and cost-effectiveness of energy conversion processes, and the time of construction of power plants.

Section 10

(1) The Government shall decree the detailed regulations for the purchasing obligation regime referred to in

Section 9 taking into account the following: a) The purchasing obligation regime for electricity generated from renewable energy sources or from waste, and electricity produced in a cogeneration process from other primary energy sources shall ensure long-term predictability and shall be consistent with energy policy principles; b) The purchasing obligation regime shall support competition among producers and shall be applied in a nondiscriminatory manner as regards the supply of electricity; c) The purchase price of electricity subject to purchasing obligation, its volume and the duration of purchasing obligation shall be determined in due consideration of the average payback period of the various generation technologies, the efficiency of using specific energy sources in relation to the country’s natural resources, the ability of users to absorb hardship and the higher rate of efficiency brought about by technological development, and the impact the said technology is likely to have on the electricity system and technological characteristics;

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Financial Frameworks in the target regions d) The purchasing obligation of electricity produced in a cogeneration process shall be aimed at the promotion of cogeneration based on a useful heat demand, it shall be based on savings in primary energy sources, and it shall be implemented so that it will not hamper the governance of the electricity system; e) In accordance with specific other legislation, with a view to ascertaining a solid economic and legal background, purchasing obligation shall apply from the commencement of commerce of a specific project and shall remain in effect for the duration specified in Paragraph c).

(2) In light of the criteria set out in Subsection (1), the purchasing obligation regime relating to electricity may not be used to promote: a) The production of more heat than useful heat by the cogeneration of electricity with heat; b) The production of heat from renewable energy sources; c) The production of electricity from lumber-grade or higher grade logs as the energy source, gained by way of unauthorized logging operations according to Act LIV of 1996 on Forests and the Protection of Forests

(hereinafter referred to as “Forest Act”), or by way of authorization granted under the Forest Act, with the exception set out in Subsection (6) of Section 171.

(3) The provisions governing the purchasing obligation pertaining to electricity produced by wind turbines and wind farms shall be determined without prejudice to Subsection (1), separately, in light of the limited technical means of ancillary services.

(4) Producers of electricity subject to purchasing obligation shall be required to enter into a networked meterbalancing agreement according to the transmission system operator’s standard service agreement, and join the networked meter-balancing account created by the transmission system operator for accounting concerning the electricity subject to purchasing obligation. This networked meter-balancing account is balanced by the transmission system operator.

Section 11

(1) The purchasing obligation defined according to the criteria under Section 10 may be carried out: a) At market prices; b) At a price specified in this Act or in specific other legislation.

(2) The purchase price specified in Paragraph b) of Subsection (1) of electricity subject to purchasing obligation shall be expressed in units of HUF/kWh, consistent with Subsections (3)–(4) of Section 171.

(3) The purchase price of electricity subject to purchasing obligation, and the terms and conditions of purchase shall be decreed by the Government. The quantity of electricity subject to purchasing obligation and the duration of purchasing obligation shall be determined by the Office according to statutory conditions. The purchase price of electricity subject to purchasing obligation may be determined – in compliance with

Subsection (2) – separately for each energy source and each generation procedure, and dependent on the intended purpose of heat produced in a cogeneration process and in view of the relevant power generating capacity.

(4) The purchasing obligation referred to in Paragraph b) of Subsection (1) may be maintained maximum for

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Financial Frameworks in the target regions the payback period of a specific project at a specific purchase price.

(5) The quantity of electricity subject to purchasing obligation and the duration of purchasing obligation shall be determined net of state subsidies, and orders for waste management services shall be determined according to the Act on Environmental Protection Product Charges.

(6) The subsidies referred to in Subsection (5) are, in particular, investment aid, tax exemptions or reductions, and the profit resulting from savings in emission allowance units through increasing the quantity and share of renewable energy sources, where the emission allowance units were obtained free of charge in accordance with the Act on Greenhouse Gas Emission Allowance Trading. Any aid for the creation of new jobs shall not be taken into consideration if it is less than three per cent of the cost of the investment project.

Section 12

(1) At the producer’s request the body appointed in accordance with specific other legislation on the designation of conformity assessment bodies shall verify the quantity of electricity generated from renewable energy sources or waste as an energy source in accordance with the standards pertaining to certification, assessment and monitoring bodies, as well as the quantity of electricity and useful heat produced in a cogeneration process, and the primary energy sources used for the cogeneration process.

(2) If a producer generating electricity in a cogeneration process under the purchasing obligation regime referred to in Paragraph b) of Subsection (1) of Section 11 fails to utilize the heat produced in the process, or uses it by ways other than what is contained in the relevant legislation, or if the producer uses renewable and non-renewable energy sources concurrently and uses an accounting system other than what is described in specific other legislation, such producer shall repay the difference between the market price and the regulated purchase price resulting in extra revenues, and the Office shall have powers to impose the sanctions specified in Subsection (1) of Section 96.

(3) The Office shall prepare a report annually on the generation of electricity from renewable energy sources and on electricity produced in a cogeneration process, and on yearly trends in the purchasing obligation regime. The Office shall publish this report on its official website.

Section 13

(1) Electricity traders (including providers of universal services) and authorized producers supplying electricity directly to end users shall be required according to the provisions of specific other legislation to procure electricity that is subject to purchasing obligation consistent with the quantity of electricity they sell to end users, and to enter into an agreement with the transmission system operator to this effect. Users engaged in the importation of electricity shall be required according to the provisions of specific other legislation to procure electricity that is subject to purchasing obligation consistent with the quantity of electricity they use for own consumption, and to enter into an agreement with the transmission system operator to this effect.

(2) Electricity generated by a household power plant shall be procured according to the provisions of specific other legislation by the electricity trader that supplies electricity at the connection point in question

75 (127)



Access to the Power Grid

Authorized network operators, subject to the conditions laid down in specific other legislation, shall give priority to generating installations using technologies free of emissions of carbon dioxide or using renewable energy sources or waste or producing combined heat and power in connection with the operation of and access to, networks.

Construction of Producer Lines, private Lines and Direct Lines on Third-Party Properties

Section 132

(1) The Authority may grant cable rights to the benefit of the authorized operator for the construction of production lines of power plants with a capacity of 50 MW or more, generating electricity from renewable energy sources on a third-party property, provided that such construction work does not significantly obstruct normal use of the property.

Transitional Provisions

(3) The maximum initial purchase price of electricity produced from renewable energy sources that is subject to purchasing obligation according to Paragraph b) of Subsection (1) of Section 11 is k*24.71 HUF/kWh.

(4) The value assigned to factor “k” referred to in Subsection (3) as of 1 January 2008 shall be the consumer price index last published by the Central Statistical Office in 2007 relative to the same period in 2006.

Henceforward, “k” shall be calculated for subsequent calendar years to take effect upon the first day of each year by multiplying the value of “k” in effect for the same time period of the previous year by the official price index published by the Central Statistical Office for the year before 1 January of the current year.

(6) At the request of the authorized operator of a power plant using biomass as the primary energy source to generate electricity under authorization granted by the Office on the first occasion before the time of Act LXXIX of 2005 on the Amendment of Act CX of 2001 on Electric Energy entering into force, the Office shall review by

31 December 2009 the rate of return on the investment. If the investment has not been recovered the Office may extend the duration of purchasing obligation – while leaving all other conditions for procurement intact – until the time the investment is recovered.

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Electricity feed-in tariffs from 1st January 2008 (without VAT), HUF/kWh 1

From 1st January 2008 From 1st July 2008

Peak 2 Valley 2

Deep valley 2 Peak

2 Valley 2

Deep valley 2

26,46 26,46 26,46 26,46 26,46 26,46 Solar

Based on resolution of Hungarian

Energy Office (HEO) if it was adopted or the application was received before 01. 01. 2008.

[except hydro power station units

(PSU) >5 MW]

Wind 26,46 26,46 26,46 26,46 26,46 26,46

Produced from renewable energy sources

Produced from waste

Other than solar and wind 29,56 26,46 10,80 29,56 26,46 10,80

Produced by PSU of 20 MW or less (except solar)

29,56 26,46 10,80 29,56 26,46 10,80

Based on resolution of HEO 6 adopted after 01. 01. 2008. (except hydro PSU >5 MW, other PSU > 50

Produced by PSU of >20

MW - max. 50 MW

23,56 21,17 8,63 23,56 21,17 8,63

MW)

Produced by PSU comprising used equipment 3 18,39 11,77 11,77 18,39 11,77 11,77

Produced by hydro PSU > 5 MW, other power unit >50 MW 18,39 11,77 11,77 18,39 11,77 11,77

27,73 19,11 9,97 27,73 19,11 9,97 if the PSU

Produced by CHP process

- if the nominal capacity of the PSU

<50 MW e

and the useful heat from

CHP is sold for district heating purpose

or

- if the nominal capacity of the PSU

<6 MWe and the useful heat from

CHP is sold for non-district heating purpose

- legally 4 sold electricity,

or

- has got production licence and the investment process has started

32,59 20,82 3,00 before 01. 01. 2008

if the useful heat is sold for selected organisations 5 and

- the PSU was entitled to feed-in-tariffs after 01. 01.

- it has got production licence before 01. 01. 2008. but the investment process started after 01. 01. 2008.

27,32 18,73 3,00

32,59

34,74*

27,32

29,12*

20,82

22,19*

18,73

3,00

19,96* 3,00

- if the nominal capacity of the PSU is between 50 - 100 MWe and the useful heat from CHP is sold for district heating purpose or for selected organisations 5 ,

or

- if the nominal capacity of the PSU is max. 20 MWe and the useful heat from CHP is sold not for district heating purpose or selected organisations 5

11,64

12,41*

3,00 if the PSU got production licence after 01. 01. 2008. and comprises used equipment 3

- if the electricity is produced at specific electricity production index

0,38 during the heating season by PSU which started commercial operation before 01. 01. 2008. and

- if the useful heat from CHP is sold for district heating purpose or for selected organisations 5 , and

- the nominal capacity of the PSU is between 50-140 MWe

28,58 17,97 3,00

28,58

30,46*

17,97

19,15*

3,00

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Notes:

* Prices with sign * relates to electricity produced by CHP firing natural gas. Feed-in tariffs calculations connected to public natural gas price change see on page "Nat.gas price change"

1 - Based on 389/2007. (XII. 23.) Gov. decree (GD) about obligatory takeover and feed-in tariffs of electricity produced from renewable energy sources or waste, and CHP

2 - Duration of parts of the day (time zones) on workdays according to GD

- by the (Central European) time being in force (hereafter referred to winter time)

- by the summer time set by a special rule is as follows:

Part of the day

Peak

Valley

Deep valley

On non-working days:

Winter time

06:00 – 22:00

22:00 – 01:30 and

05:00 – 06:00

01:30 – 05:00

Summer time

07:00 – 23:00

23:00 – 02:30 and

06:00 – 07:00

02:30 – 06:00

Part of the day

Valley

Winter time

06:00 – 01:30

Summer time

07:00 – 02:30

Deep valley 01:30 – 06:00 02:30 – 07:00

Parts of the day on 3 different territories of the country equivalent to licensed territories of 3 supplier's group (two supplier in a group) are slipped by 30 minutes relating to each other (comparing to 1st group presented here, detailly see in Suppl. No. 3 of GD)

3 - By paragraph No. 2 of Gov. decree 273/2007. (X. 19.) about enforcement of instructions of Electricity Act LXXXVI. 2007. the equipment is qualified as used if it was produced 5 years earlier than the production licence application.

4 - According to decree 56/2002. (XII. 29.) GKM about obligatory takeover of electricity and rules of its price setting.

5 - Upon the subpoint k) of point (1) of paragraph 2. of GD: "selected organisations: central budget organisation, budget organisation of local municipalities, local governments, other non-profit, non-property organisations fulfiling public obligations with specific state support.

6 - Wind generators with licence adopted after 1st January 2008 can sell electricity in the framework of obligatory takeover on the criteria of a tender if they win

2.4.4.2


The utilization of biomass for heating purposes is of no considerable importance in the region. In fact, it is very rare at country level. A main reason for this is that at present only energy generated from renewable resources receives subsidies in Hungary but no heating or cooling. On the basis of European Commission decision, however, Hungary must work out a ‘renewable heat’ policy containing concrete figures as to the share of renewables in the field of heating and cooling. Therefore it is necessary for the Hungarian state to develop a support system for renewable based heating and cooling.

The long term strategy of the Hungarian government concerning biomass in general is the National Climate

Change Strategy which sets clear guidelines and target numbers for the economy.

2.4.4.3


2.4.4.3.1


The wood supply in the Hungarian forests is around 330 million m 3 , and there is around 112 million m 3 wood increment produced on a yearly basis. According to forest legislations a maximum of 9 mill m 3 is authorized to be lumbered (in the previous years around 7 mill m 3 was cut and processed yearly) every year. Out of the 7 million, 1.5 million m 3 remains in the forest as forestry residue, the utilized wood is thus 5.5 million m 3 . 3.5 mill m 3 is mass harvested wood (utilized as fibre wood, firewood, paper wood) and the remaining 2 million m 3 is utilized as high-value industrial wood.

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The management of forests is regulated in a strict legal framework to ensure the conditions of sustained sylviculture in Hungary. (Forest Act of 1996) A particular index of sustainability is the size of forests. The forest stock of Hungary was 12% in 1945. As a result of forestation work recognised worldwide, 19% of the country is covered by woods. The Act, among else, stipulates about the marking, cutting, cleaning and re-cultivation of forests.

The production of electricity from lumber-grade or higher grade logs as the energy source, gained by way of unauthorized logging operations according to Act LIV of 1996 on Forests and the Protection of Forests

(hereinafter referred to as “Forest Act”), or by way of authorization granted under the Forest Act.

19.5% of Hungary's forests are under nature protection (Ministry of Environmental Protection, 2002), 47% of all protected areas are forests. In protected forests, all forestry activities are subject to permission by the environmental authority, economic activities are subordinated to environmental considerations. Of our forested areas, 49 forest reserves provide special protection on a core area of 9.731 hectares. In those areas, no forestry activities are permitted at all. Afforestation planned in areas under nature protection also requires the preliminary permission of the environmental authority, which ensures that biodiversity and our natural assets are protected.

Forestry related advantages and disadvantages

Advantages:

 Forestry is legally regulated;

 The total forest area in Hungary is exploited in a planned way.

 There is a detailed afforestation programme approved for the long term;

 Increased proportions of forest areas will improve the efficiency of agricultural production;

 Increasingly meeting Hungary’s timber demands from domestic sources will improve the trade balance;

 Forests – particularly protective forests – improve the environmental condition of the country;

 Afforestation generates local job opportunities, improving the population retention potential of rural areas;

 There is a growing social demand for recreation opportunities, in the satisfaction of which forests play a prominent role, particularly in relation with rural tourism and ecotourism;

 Forest management could produce renewable energy contributing to a cleaner energy production structure.

Disadvantages:

 Privately owned forests are fragmented; small owners are reluctant to associate with each other; no forest management pursued in nearly half of the privately owned forest areas;

 No satisfactory property protection.

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2.4.5


2.4.5.1


The selling of raw materials is mainly connected to urban areas where local farmers, producers and sellers can market their products from the nearby areas. In rural areas, the number of local markets and buying up facilities endowed with an infrastructure suitable for the local sale of products is low, this is why most products change hands in large towns and are then returned to rural areas, which results in considerable price rises.

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2.5

B IOMASS F RAMEWORK IN THE B RANDENBURG R EGION AND N ORTH OF T HURINGIA R EGION (G ERMANY )

2.5.1


2.5.1.1


In the following a short abstract over the existing technologies for generating energy from biomass is given.

The technologies are non-specific for the regions of North Thuringia and Brandenburg. They are available in whole Germany.

Heating with biomass:

 Biomass heat plants. Today there are biomass heat plants between 500 kW and 30 MW all over

Germany for heating multi-family houses, schools, swimming baths and smaller businesses. Others are connected to a district heating grid. Combustibles are mostly wood chips from forestry or industrial waste wood, which are cheap and make the installation profitable.

 Small combustion boilers for split logs and pellets. Especially in rural regions there are a lot of small combustion boilers in one family houses. First of all they use split logs and pellets because of its comfortable storage.

Modern split log boilers have a range of performance between 5 kW and 100 kW. They were loaded manually. Because of modern techniques, the combustion is very efficiency and clean. So it is no problem to keep the German conditions for emissions.

Pellet boilers are often used in one-family houses because of less needed storage space for pellets.

The pellets are industrial made from saw mill waste and strand. They are standardised to have a constant quality. In combination with a blower or a transportation screw the pellet boiler loads themselves according to the heating needs. A hot water tank storage the combustion heat. There are also small combustion boilers at the market, which burns pellets and split log in combination.

 Combustion boilers for straw and crop. Producer deals with the problem of emissions. To keep the

German requirements for emissions, they use filtering or electrostatical precipators as well as secondary heat exchangers for condensation of exhaust gases.

For higher range of performance exists already combustion boilers for whole bales of straw, bales in solution or cigar burners.

An interesting alternative to this are pellets made from straw or halms. The combustion of these pellets is already practiced in small amount.

Electricity from wood and straw:

 Steam power stations

For the conversion of fast burning materials for generating electricity one uses the steam power process. Modern steam power stations have steam parameters of 250 bar and 560 C with a degree of efficiency of more than 43 %. The thermal capacity of the power plants can be up to 1,000 MW and more. The combustion material is mostly waste wood.

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An efficiency alternative for local power plants is combined heat and power which uses electricity and heat together.

 Alternative conversion technology

The combustion characteristic of fast biomass limits the alternatives for generating electricity. Today the most important processes are the Organic-Rankine-Cycle (ORC) process, the steam engine and the Stirling engine. These technologies have a relative low electrical degree of efficiency. That’s why the use of them makes only sense, if also the heat is taken. ORC process and steam engines were used for example in wood-working industry, where waste wood is available and electricity and heat are necessary.

 Thermodynamically gasification. Today it is possible to transmit about 70 to 80 % of the combustible energy into the produced gas. Between electrical capacities of about 2 MW up to 5 MW one tests packing bed gasifiers. For higher capacities one prefers fluidised bed gasifiers. In the future bigger plants with more than 20 MW thermal which gasify under a pressure of 20 up to 100 bars could be relevant. With an electrical degree of performance of circa 30 % the gasification is an interesting possibility to generate power from biomass. By Integrated Gasification Combustion Cycles (IGCC) one hopes to get more than 40 %. Also the use of fuel cells promises good result in long term. The electrical degree of performance could rise up to more than 50 % by using this technique.

Biogas:

At first liquid manure and dung from cattle, swine or chicken were the most important ingredients in agricultural biogas plants. Today more and more biomass is added. Beside organic waste materials from food industry or organic waste one use primarily cultivated energy plants (for example maize) to get extra high biogas production. To chaff and to ensilage the energy plants make a tailored input possible. Also grass silage, beets or ensilaged grain were fermented in biogas plants. An intensive use of biomass is foreseen and has to be organised. Scientists are working to establish new energy plants and cropping systems which are ecological and economical compatible.

To transmit the biogas into electricity, it is burned in a combustion engine which drives a generator. The engines for the combined heat and power plant modules are either Gas-Otto engines or pilot injection gas engine. Gas-Otto engines are specially designed for driving by gas. They are similar to four-stroke engines in cars. Pilot injection gas engines works in principle like a diesel engine. Biogas is not pyrophoric by compression. That’s why an addition of an ignition oil is necessary to get a pyrophoric mixture of gases.

The first biogas filling station from 2006 in Wendland (Germany) shows, that it is possible to use prepared biogas as fuel for natural gas automobiles.

An alternative to the wet fermentation with liquid manure is the dry fermentation. Dry fermentation is easier.

Energy plants, harvest residue and bio waste are fermented continuously or discontinuously and no liquid manure is necessary.

2.5.1.2


NORTH THURINGIA

An elevation of the “Thüringer Ministerium für Wirtschaft, Technologie und Arbeit” shows, that Thuringia covers

10.1% of its total primary energy supply by using renewable energies (stand 2004). 87% of them come from biomass. The biomass is divided into 9,300 TJ solid, 9,500 TJ liquid and 2,600 TJ biogas. The figure below

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Financial Frameworks in the target regions compares the using of renewable energies of the year 2004 with the figures of the year 1998 and the wanted figures for 2010.

Figure 1. Using of renewable energies in Thuringia ( http://www.tll.de/ainfo/pdf/bio11206.pdf

)

In the North of Thuringia 392 installations with a thermal engine output of overall 15,145 kW generate power by using biomass.

Figure 2.

Installations using biomass in Thuringia (numbers and thermal engine output)

(http://www.thueringen.de/de/picloader.asp?pic=/imperia/md/images/tmwta/energie/th_biomasse.gif)

BRANDENBURG

The share of renewable resources on the point balance shows that two thirds of the whole contribution of renewable resources is actually placed in the production of electricity. Water power, wind power, photovoltaic and a significant share of the biomass usage are used to produce electricity. The following figure reveals, that the actual share of renewable resources in the gross power generation (2003 9,4%) and final energy

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Financial Frameworks in the target regions consumption (2003: 28,7%) has continually increased. The difference between gross power generation and energy consumption is to be explained with high amounts of power export and transmission loss.

LUA Brandenburg

Figure 3. Primary energy supply by using renewable energies in Brandenburg

The following figure brings out the percentage of renewable energies by gross power generation and by energy supply.

LUA Brandenburg

Figure 4. Percentage of renewable energies by gross power generation and by energy supply)

A high number of installations for using the renewable energies current in Brandenburg were 2006 active:

RENEWABLE ENERGY PRODUCTION

Photovoltaic installations

Wind power generator

Water power stations

Biogas plants


Biogas facilities

Number

1.660

2.302

34

55

10

15

Biomass heat and power station 17

Total

Electr. Power in MW

21.79

3.128

4.18

32.5

22.3

10.65

156.5


19 393

5 367 648

25 080

198 250

147 180

55 380

1 173 750

6 986 681

Source: Ministerium für Ländliche Entwicklung, Umwelt und Verbraucherschutz

CO2reducing in tonnes/year

19 897

5 507 207

25 732

203 405

825 646

56 820

1 204 268

7 842 974

84 (127)



Heating with biomass

Today heating with biomass booms in Germany. The figure 5 showes the percentages in 2006: 69% biogenous solid fuel of households, 2,7% biogenous solid fuel of combined heat and power stations and heat stations, 12,6% biogenous solid fuel of industry, 4,9% biogenous liquid and gaseous fuels, 4,9% biogenous percentage of waste, 3,7% solat thermal energy, 2,1% geothermal energy.

Figure 5. Heat production biomass in Germany numbers and thermal engine output)

NORTH THURINGIA

There are no figures available about the numbers of installations of biomass heat plants, small combustion boilers for split logs and pellets or combustion boilers for straw and crop.

BRANDENBURG

The following figure gives an overview of the installations for using biomass in Brandenburg.

HEAT PRODUCTION


Klärgasanlagen

Heat pumps

Deep geothermal energy

(DGE) facilities

Number

6

18

2.200

1

Therm. Power in MW

23.5

13.8

28.8

0.5

Combined biomass heat and power stations 17 381.5

Biomass heat stations> 1 MW 14 35.0

Biomasseplants > 100 kW 6 17.5

Biomasseplants < 100 kW 2.200

Thermal solar plants

Total

15.000 163.9


120 000

75 735

578 000

2 400

2 861 250

70 000

35 000

312 975

38 710

3 674 920

Source: Ministerium für Ländliche Entwicklung, Umwelt und Verbraucherschutz

CO2-Reducing

in tonnes/year

30 000

18 934

14 250

600

715 313

17 500

8 750

78 244

9 678

918 730

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Electricity from wood and straw:

NORTH THURINGIA

There are a lot of combined heat and power plants operating with biomass in Thuringia. Following list shows the most important of them:

 Biomasse Heizkraftwerk Eisenberg

 Biomassekraftwerk Silbitz

( http://www.umweltfondsvergleich.de/artikel/031218BiomasseSilbitz.php

)

 Biomasseheizkraftwerk in Schkölen

( http://www.solarserver.de/news/news-6267.html

, http://www.energieblog.de/2006/12/19/biomasseheizkraftwerk-schkoelen-eingeweiht/ )

 Biomasse-Heizkraftwerk Bischofferode/Holungen

( http://www.bauportal-deutschland.de/referenzobjektdetails_Biomasse-

Heizkraftwerk_Bischofferode_Holungen_37345_Bischofferode_Holungen__id_1895.html

)

 Biomasse-Heizkraftwerk Ilmenau

( http://www.steag-saarenergie.de/de/05_Download/pdf/Broschuere_BHI.pdf

)

 Biomasseheizkraftwerk Eisfeld/Thüringen

 Heizkraftwerk Zellstofffabrik Blankenstein

BRANDENBURG

In Brandenburg are a number of combined heat and power plants operating with biomass.

For example in the following locations:

1

10

3

7

5 12

4 2

9

6

13

14

11

1 Heiligengrabe

2 Beeskow

3 Kirchmöser

4 Baruth

5 Königs Wusterhausen

6 Großräschen

7 Klosterfelde

8 Wilmersdorf

9 Calau

10 Demmerthin

11 Vierraden

12 Fürstenwalde

13 Elsterwerda

14 Schwedt

Figure 6. Combined heat and power plants in Brandenburg

( http://www.businesslocationcenter.de/i mperia/md/content/blc/industrie/biomass ekraftwerke__in_brandenburg.ppt

)

86 (127)



Facilities already exist in Heiligengrabe (2 facilities), Gumtow, Vierraden, Klosterfelde, Fürstenwalde,

Beeskow, Wilmersdorf, Calau, Freienhufen, Baruth, Königs Wusterhausen and Brandenburg-Kirchmöser.

A facility in Elsterwerda is still being constructed. Additional facilities are planned in Eberswalde,

Neuhardenberg, Falkenberg, Ludwigsfelde, Nauen and Premnitz.

Those facilities possess a furnace thermal capacity of 5 to 101 Megawatt, an electric capacity of 1.6 to 20

Megawatt and burning temperatures of 850 to 1,150 degrees Celsius. The average operating time of the existing facilities amounts to 7,500 hours annually.

Those facilities use 500 up to 150,000 tons of matured timber each, annually. This amounts to about 820,000 tons of matured timber which is used in the whole of Brandenburg in such facilities. Sources for this timber are the own production waste as well as matured wood supplies delivered by third parties.

In the year 2002, an amount of 36,000 tons of wooden waste requiring special supervision was disposed.

Additionally, further 1,500 tons of wooden waste went to public waste disposal facilities in 2002.

Biogas

NORTH THURINGIA

In Thuringia more and more biogas installations were built. The first figure below shows the numbers of new installations (blue), the sum of all installations (purple) and the median output (red). Where they are situated and how high the output is can be seen in the second figure. The level of agricultural biogas plants is shown in the third figure:

Figure 7. Installation of biogas plants in Thuringia shows the numbers of new installations (blue), the sum of all installations (lila) and the median output (red).( http://www.tll.de/ainfo/bga_info/pdf/bga_link.pdf

)

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Figure 8. Location of agricultural biogas plants in Thuringia

( http://www.tll.de/ainfo/bga_info/pdf/bga_link.pdf

)

Figure 9. Level of agricultural biogas plants in Thuringia ( http://www.tll.de/ainfo/bga_info/pdf/bga_link.pdf

)

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Presently there are six fermentation plants installed in the North of Thuringia:

 Wippertaler Agrar GmbH & Co. KG Kleinfurra (since 2004)

Location:

Substrate:

Capacity:

D-99735 Kleinfurra

8,500 t/a liquid manure from cows

2,000 t/a maize silage biogas 2 x 160 kW electric combined heat and power unit

Initiation:

User:

2004

Wippertaler Biogas GmbH

 Kreisabfalldeponie Nentzelsrode

Location: D-99735 Kleinfurra

Substrate:

Capacity:

Initiation:

User:

16,200 t/a communal bio-waste, grease separator, leftovers, malt residuum biogas, 374 kW electric combined heat and power unit

1999

TVN GmbH

 Van Asten Tierzucht Nordhausen GmbH & Co. KG

Location: Kommunikationsweg 11, D-99734 Nordhausen

Substrate:

Capacity:

Initiation: 2001

68,000 t/a liquid manure from pigs and renewable resources biogas, 1.4 MW electric

User: Van Asten Tierzucht Nordhausen GmbH & Co. KG

 Hofgut Hünstein

Location:

Substrate:

Capacity:

Initiation:

User:

 Agrar GmbH Trebra

Location:

Substrate:

Capacity:

Initiation:

User:

GbR

Hünstein 60, D-99735 Nohra

17 m³/d liquid manure from cows

12 t/d maize silage

4 t/d grass silage

4 t/d rye silage of the whole plant biogas, 330 kW electric

2005

D-99718 Trebra

1.200 t/a crop manure

Hofgut Hünstein GbR

6,500 t/a maize silage biogas, 526 kW electric combined heat and power unit

2006

Agrar GmbH Trebra

 BiGaSys Holzthalleben

Location:

Substrate:

D-9973 Holzthalleben liquid manure from pigs renewable resources

Capacity:

Initiation:

User: biogas, 330 kW electric

2006

BiGaSys Holzthalleben

Furthermore there are large numbers of small installation for combustion of wood in private households as well as in small business.

BRANDENBURG

After declaring a higher buyback prize for energy derived from biomass in the amendment concerning renewable resources (Erneuerbare Energien Gesetzes (EEG)), Brandenburg and the whole of Germany

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Financial Frameworks in the target regions experienced a boom in the instalment of biogas facilities, which reached its peak in 2006/beginning of 2007.

The number of agricultural biogas facilities, which use certain grown renewable resources in order to generate energy, increased heavily. Increasing prices for agricultural raw material stopped the biogas-boom in the second half of 2007. In September of 2007, 80 biogas facilities with an installed capacity of 55 MW were running in Brandenburg. The future for such facilities will lie in well conceived heat usage concepts and gas processing.

Figure 10. Devolpment of the number of biogas plants in Brandenburg

( http://www.tll.de/ainfo/bga_info/pdf/bga_link.pdf

)

Most of the existing facilities convert biogas into energy in combined heat and power plants, and the electricity is fed into the power grid. Most of the produced heat, however, is not used at all. Due to rural structures and missing industry, most biogas locations offer no proper use for the heat. This has a negative impact on the economic as well as energetic balance of the facilities.

In Brandenburg were built in the last years a number of biogas installations. The following figure shows the biogas plants in Brandenburg in December 2006.

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6



Figure 11. Biogas plants in Brandenburg (http://www.eti-brandenburg.de/energieatlas/biogas.html)

More details of some main plants in Brandenburg:

 Rhinmilch GmbH Agrargesellschaft (since 2001)

Location:

Substrate:

Capacity:

D-16833 Fehrbellin

140 m/d liquid manure from cows

25 t/d litter manure of cows

25 t/d silage biogas 1048 kW

Initation: biogas 330 kW

2001

 Wittstocker Rinder-Marktfrucht GmbH

Location: D-17291 Nordwestuckermark

Substrate:

Capacity:

User:


5 m/d maize silage biogas 152kW

AGRAR GbR Jähne Marquardt

 Lehr- und Versuchsanstalt für Tierzucht und Tierhaltung e. V.

Location:

Substrate:

Capacity:

D-14550 Groß Kreutz

10m/d liquid manure from cows

4 t/d maize and grass silage biogas 80 kW

Initiation: 2003

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 Agrargenossenschaft Ländeken Meinsdorf eG

Location:

Substrate:

D-14913 Meinsdorf

25 t/d liquid manure from pigs

38 t/d maize silage

Capacity:

Initiation:

1 t/d grass silage

4 t/d grain biogas 1,2 MW

2002

 Tobipro GmbH

Location:

Substrate:

Capacity:

D-03205 Laasow

192 t/d liquid manure from pigs

19 t/d liquid manure from chickens biogas 625 kW

 Agrargenossenschaft Pirow e.G.

Location:

Substrate:

19348 Pirow

12 m/d liquid manure from pigs

15 t/d maize silage

Capacity:

User:

8 t/d litter manure of cows biogas 500kW

Loock Biogassysteme GmbH

 Landwirt Martin Schulz

Location:

Substrate:

Capacity:

User:

D-15306

15 t/d rye-,maize- and sunflowers silage

1 t/d rye groats biogas 2 x 250 kW

Dipl.-Ing. Ekkehard Schneider (Graskraft e.V.)

 Agrarprodukte Dedelow GmbH

Location:

Substrate:

Capacity:

D-17291 Dedelow


13,7 t/d litter manure biogas 836 kW

Initiation:

User:

2001

Herr Schulz (Agrarprodukte Dedelow GmbH)

 BKW Birokraftwerke GmbH

Location: D-15517 Fürstenwalde

Substrate:

Initiation:

84.000 Mg/a

1998

 Schradenbiogas GmbH & Co. KG

Location:

Substrate:

D-04932 Görden

118.000 Mg/a

 Biogasanlage Alteno GmbH & Co. KG

Location:

Substrate:

D-15926 Luckau

6.000 Mg/a

2.5.1.3


NORTH THURINGIA

In the North of Thuringia a lot of companies are working in the commercialisation of biomass technologies.

Following list shows the main important of them:

 University of applied sciences Nordhausen (FH Nordhausen)

Study course: Regenerative energy systems (Prof. Wesselak, Prof. Schabbach),

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Field of study: Biological process engineering (Prof. Vollmer)

August-Kramer-Institute http://www.fh-nordhausen.de/ , http://www.fh-nordhausen.de/august-kramer-institut.0.html

 Schachtbau Nordhausen GmbH

Only big and international acting SME in Nordhausen with approx. 720 employees/ part of BAUER AG.

Division: Environment engineering, expertise in construction of Biogas and Sewage plants. http://www.schachtbau.de/schachtbau/englisch/divisions/umwelt/umwelt_frame.htm

 BTN Biotechnologie Nordhausen GmbH

Expertise in planning Biogas plants, i.e. with Van Asten, TVN, Wippertaler, Hünstein http://www.btn-biotechnologie.de/

 Ingenieurbüro Mißbach & Gärtner, Nordhausen

Expertise in Energy technologies, Environment engineering, Plant construction http://www.missbach-gaertner.de/index-eng.htm

 TÜV Thüringen e.V., Nordhausen

2005- today creation of Criteria catalogue for whole Biogas plants and marketing http://www.tuev-thueringen.de/ , http://www.bioc-online.de/

 Adapt engineering GmbH, Nordhausen

Economically oriented Research establishment, expertise in Drive and Energy technologies, Combustion engines http://www.adapt-engineering.de/

 SEVA Energie AG, Nordhausen

Expertise in combines Heat and Power units (CHP), especially Biogas/ Vegetable oil usage http://www.seva.de/e-index.htm

 GAIA Akkumulatorenwerke GmbH, Nordhausen

Battery power solutions, also for regenerative Energy sources http://www.gaia-akku-online.de/

 Apparatebau Nordhausen GmbH

Brewery installations, construction, manufacturing, mounting incl. testing http://www.apparatebaundh.com/englishmain.htm

 Nordbrand Nordhausen GmbH http://www.nordbrand.de/

 Südharzer Maschinenbau GmbH, Nordhausen http://www.bgu-maschinen.de/e.home.php

 Sonnholz Päckert + Laube GmbH, Sondershausen/ Großfurra

 http://www.sonnholz.de/

BIC Nordthüringen GmbH, Nordhausen/ Sondershausen

EU-Project management in fields of regenerative Energy sources: Innovation forum Biogas, BIOC Biogas

Centre of Competence, BIOBUSINESS,

Representative of Thuringian association for renewable Energy sources, Support of entrepreneurs http://www.euro-biomass.com/ , http://www.bioc-online.de/ , http://www.bic-nordthueringen.de/

 Energieversorgung Nordhausen GmbH

Local energy provider with a public task, interested in sustainable development, lower costs etc.

Nowadays evaluating new ways of Energy production, i.e. Biomass plant nearby Nordhausen http://www.energie-nordhausen.de/

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BRANDENBURG

In the Brandenburg a lot of research institutes and enterprises are working in the commercialisation of biomass technologies. Following list shows the most important of research intitutes:

- Technical University of Cottbus (Brandenburgische Technische Universität Cottbus) http://www.tucottbus.de

- Leibnitz-Institute for Agricultural Technology Bornim e.V . http:// www.atb-potsdam.de

- Technical College of Eberswalde (Fachhochschule Eberswalde) http:// www.fh-eberswalde.de

- Technical College of the Lausitz (Fachhochschule Lausitz) http:// www.fh-lausitz.de

- Leibniz-Centrum for agricultural Research (ZALF) e. V. Müncheberg http:// www.zalf.de

- Research Institute for post-mining areas (Forschungsinstitut für Bergbaufolgelandschaften e.V.) http:// www.fib-finsterwalde.de

- Forest Institute Eberswalde, (Landesforstanstalt Eberswalde) http:// www.lfe.brandenburg.de

- Forschungsinstitut Bioaktive Polymersysteme FI biopos e.V http:// www.biopos.de

- Institute for crop treatment (IGV Institut für Getreideverarbeitung GmbH) http:// www.igv-gmbh.de

This link presents the enterprise working in commercialisation of biomass related technologies located in

Brandenburg: http://www.brandenburgenergie.de/bbenergie/unternehmen/index.cfm

2.5.2


2.5.2.1


The German Federal Government wants to heighten the amount of biomass in power supply explicit. To achieve their aim they offer different aid activities in cooperation with the BMELV (Bundesministerium für

Ernährung, Landwirtschaft und Verbraucherschutz, Federal Ministry for Feeding, Agriculture and Consumer

Protection). Such are for example:









“BioEnergie 2021 – Forschung für die Nutzung von Biomasse” (Research for the use of biomass)

( http://www.bmbf.de/foerderungen/12089.php

)

 promotion for modern basement orientated research beginnings for the energetic use of biomass

Supporting programme “Biotechnologie – Chancen nutzen und gestalten” (Biotechnology – use and arrange chances)

Research programme “Nachwachsende Rohstoffe” (Renewable resources) ( http://www.fnr-server.de/ )

Competition “Bioenergie-Regionen” (bio energy-regions)

( http://www.bioenergie-regionen.de/ )

 from the Federation to benefit the building of regional networks in the bio energy sector

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The BMBF (Bundesministerium für Bildung und Forschung, Federal Ministry for Education and Research) has following aid activities







Competition “GO-Bio” ( http://www.bmbf.de/de/6868.php

)

“BioIndustrie 2021” (bio industry 2021) ( http://www.bmbf.de/de/6955.php

)

“KMU-innovativ Biotechnologie - BioChance: ein Plus für junge Biotech-Unternehmen” (SME-innovativ

 biotechnology – bio chance: a plus for young biotechnology companies)

( http://www.bmbf.de/de/986.php

)

Benefit concept “Grundlagenforschung Energie 2020+” (Basic research energy 2020+)

( http://www.bmbf.de/pub/grundlagenforschung_energie.pdf

)

NORTH THURINGIA

Especially for the Free State of Thuringia the “Fachbeirat Nachwachsende Rohstoffe” (expert advisory committee for renewable resources) from the “Thüringer Ministerium für Landwirtschfaft, Naturschutz und

Umwelt” (TLL) has worked out a policy paper “Konzept zur Förderung der Nutzung Nachwachsender

Rohstoffe im Freistaat Thüringen”. That policy paper is about pilot and demonstration projects for agriculture, disposal and handling of renewable resources including medicinal and spice plants. It also includes the capital intensive investments for aids for installation of plants that produce not refine vegetable oil. Thereby it is not allowed to use the vegetable oil as food or as feeding stuff.

Together with the “Zentrum Nachwachsende Rohstoffe” (centre for renewable resources) of the TLL a stronger teamwork between agriculture, sciences and business should be achieved for the biomass sector.

BRANDENBURG

The farmer union „Landesbauernverband“ created important instances with the task forces „renewable resources “ and „Agricultural-economic initiative Brandenburg“, whose intention is to strengthen the economic stability of rural areas by an increased usage of energetic applications of biomass.

The cluster ENO was founded in the area Barnim – Uckermark, in order to use the economical possibilities of the region in compliance to substance chain management. The technical college of Eberswalde participates as well as the companies. The regions of Barnim und Uckermark support the creation of clusters with their energy initiative „BARUMenergy“. The cluster will form in the area of renewable resources and mobility in rural regions. The following sectors of energy production from renewable and fossil sources are subject of the work:

Photovoltaic, Solarthermy, Biogas, energetic use of solid biomass, Conversion of wind energy and biogenic fuels, and temporarily the use of fossil energy carriers.

The Brandenburg Energy and Technology Initiative were boosted by the means of different consultation spots, competence centres, joint ventures and regional networks. Research is carried out in the working group

"Energetic use of biomass" in order to create synergetic effects. The Energy Technology Initiative ETI is cooperating with different working groups in the area of renewable energies, energy efficiency, mobility in rural regions and supports information exchange between developers, construction companies, government agencies, investors and consumers. The ENO association wishes to create a regional value chain.

Regional networks in connection to the LEADER+-Regions along the integrated rural development concepts are supposed to create impulses for the decentralised energetic appliance of biomass.

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2.5.2.2

Current of the promotion of thermal and electric biomass.

According to the interviews and experiences of partners, the current situation of the promotion of thermal and electric biomass can be summarising as following:

 The biggest social problem is the rivalry between the production of energy and the food industry. To get all-embracing social accepting for using biomass to produce energy it would be necessary to use no crop, maize or similar as input in biogas plants. Alternative non-food energy plants or cut grass are much better and were accepted.

 Also less clarification of the population is a problem. Many don’t understand how important it is to use renewable energies. They only live today and the today’s energy is able to meet their needs. So they don’t ask about the future. And, if for example a biogas plant should install close to their living area, they build action groups against it because of the stinky exhaust fumes.

Two years ago the Rural District Office Kyffhäuser tried to settle a bio diesel producer (company

COREN from Freiberg) in the administrative district Kyffhäuser. Although the National Farmers Union of Nordhausen was involved, it was not possible to provide the needed one million t of biomass (straw) per year. In theory - so said the regional office of the Free State or Thuringia - this amount of straw should be available in a radius of 50 up to 80 km.

A planed biogas plant in Bad Frankenhausen (WABIO) was averted effectively by the public authorities.

Now the district town Sondershausen has an investor for a biogas plant near the clarification plant.

Also there are already enough antagonists.

 The same experiences were made in Brandenburg.

 The speculation with food on the Stock Exchange is an other problem. The interviewed persons believed that it would be necessary to stop this playing with food per law.

2.5.3


2.5.3.1

Financing and subsidies for small installations and big projects

The basic conditions for financing and subsidies for small installations as well as big projects for generating thermal and electric power in Germany are given by:

 Evaluierung von Einzelmaßnahmen zur Nutzung erneuerbarer Energien (Marktanreizprogramm,

MAP, Renewable Energy Incentive Program)

 Loan programme of the KfW (Reconstruction Loan Corporation).

 The Renewable Energy Incentive Program at a glance

The Renewable Energy Incentive Program is a central furtherance instrument for the market penetration of renewable energy in the heating sector. It was launched by the BMU (Bundesumweltministerium, Federal

Environment Ministry) in the year 2000. Since this time more than 625,000 applications with overall more than

820 million Euros has been allowed. The sponsorship should improve the market opportunities for renewable energies. To make capital investments possible for businesses and private households as well as to provide financial incentives, the “Bundesamt für Wirtschaft und Ausfuhrkontrolle” (BAFA, Federal Office for Economy and Export Control) provides benefits upon request.

To check the effects of the sponsorship, the Renewable Energy Incentive Program is scientific evaluated permanently.

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Controlling for the Renewable Energy Incentive Program is the “Richtlinie zur Förderung von Maßnahmen zur

Nutzung erneuerbarer Energien im Wärmemarkt” (aid directive for activities by using renewable energies in the heating sector) from 5 December 2007. This directive is available under: http://www.bmu.de/files/pdfs/allgemein/application/pdf/foerderrichtlinie_waerme.pdf

In 2008 the aid for renewable energy in the heat market goes on with new focuses. Benefits up to 350 million

Euros are available for the Renewable Energy Incentive Program in this year. This is clearly more than in the years before. As a part of the integrated energy and climate program of the Federal Government the

Bundesumweltministerium (BMU, Federal Environment Ministry) has enacted a new funding guideline for the

Renewable Energy Incentive Program. This funding guideline is considered to be unlimited since 2008. From

2009 they will provide up to 500 million Euros per year.

The BAFA benefits the installation and upgrading of:

 Solar panel installations up to and including a gross panel area of 40 m²

 Solar panel installations with more than a gross panel area of 40 m² if it is assembled on one-family houses and two-family houses with a high buffer storage capacity

 Automatically loading installations for the combustion of solid biomass for the thermal use up to and including 100 kW nominal heat capacity

 Manual loading installations for the combustion of solid biomass for the thermal use from 15 up to and including 50 kW nominal heat capacity (split logs gasifier boiler)

 Efficient heat pumps

 Especial innovative technologies for heating and cooling from renewable energies with the proviso of this directives:

- big solar panel installations with a gross panel area from 20 m² up to and including 40 m²

- secondary measures for emission reduction and raising efficiency by installations for the combustion of solid biomass up to and including 100 kW nominal heat capacity

- especial efficient heat pumps

The active aid has a new bonus system which allows getting considerable higher benefit amounts. Who installs solar panels and biomass boiler extra energy-efficient or combines renewable energies gets an additional bonus.

An overview about the different possibilities for benefits and the application form for getting aid can be downloaded under: http://www.bafa.de/bafa/de/energie/erneuerbare_energien/innovationsfoerderung/formulare/index.html

 The Renewable Energy Incentive Programme especially for the biomass sector (biomass combustion installations)

The aids for biomass combustion installations are splitted into a basement benefit, a bonus benefit and an innovation benefit.

Basement benefit for installations for combustion of solid biomass

 The benefit for automatically loading installations with controlling of power output and firing as well as automatically ignition (without wood chips) for heat producing with an installed nominal heat capacity of 5 kW up to 100 kW (also combined boiler) is 36.00 €/kW installed nominal heat capacity. Thereby the BAFA sets following minimal benefits:

- 1,000 € for pellet burner

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- 2,000 € for pellet boiler

- 2,500 € for pellet boiler with a new buffer storage with at least 30 l/kW storage capacity

Air operating pellet burners are eligible not until 8 kW.

 The benefit for automatically loading installations for combustion of wood chips with an installed nominal heat capacity of 5 kW up to 100 kW is paid in a fixed sum of 1,000 € per installation. Only those installations get this benefit which has a buffer storage with at least 30 l/kW storage capacity.

 The benefit for split logs gasifier boilers with an installed nominal heat capacity of 15 kW up to 50 kW is

1,125 € per installation. To get the benefit the installation has to have a buffer storage with at least 55 l/kW storage capacity.

Bonus benefit for installations for combustion of solid biomass

For extra innovative or extra efficiency uses of biomass plants it is possible to get following bonuses in addition to the basement benefit:

 Renewable combination bonus:

750 € for a combination of a solar plant and an eligible biomass plant if both are ready for use within six month

 Efficiency bonus

The basement benefit and the efficiency bonus are together one and a half times up to the duplex of the basement benefit for biomass plants if the biomass plant is installed in a building with an extra low prime energy demand (EnEV (see chapter 2.5.4.3), Energy Performance Certificate and a certificate for the hydraulic reconciliation and the building-specific adjustment of the heating curve of the heating system are necessary).

It is impossible to cumulate the renewable combination bonus and the efficiency bonus.

 Bonus for extra efficiency circulation pumps

200 € for the installation of an extra efficiency circulation pump (energy class A) together with an eligible biomass plant

Heat from renewable energies in schools and churches

 At least 2,400 € for extra arrangements to visualise the energy output and/or to demonstrate the technology (for example electronic display panels) by the installation of an eligible biomass plant in trade schools, technician schools, career development centres, interplant company training centres of the chambers, general-education schools, universities of applied sciences and universities or churches

The application form for getting aid for installations which burn solid biomass is available under: http://www.bafa.de/bafa/de/energie/erneuerbare_energien/innovationsfoerderung/formulare/energie_ee_bm_in

.pdf

A schedule with automatically loading biomass installations which are eligible is available under: http://www.bafa.de/bafa/de/energie/erneuerbare_energien/biomasse/publikationen/energie_ee_biomasse_liste

_automatischbeschickt.pdf

The schedule with manual loading biomass installations which are eligible is written down under: http://www.bafa.de/bafa/de/energie/erneuerbare_energien/biomasse/publikationen/energie_ee_biomasse_liste

_handbeschickt.pdf

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An overview to the base benefits and the bonus benefits in the Renewable Energy Incentive Program for 2008 is given under: http://www.bafa.de/bafa/de/energie/erneuerbare_energien/publikationen/energie_ee_uebersicht_basis_und_b onusfoerderung.pdf

 The loan program of the KfW in general

KfW is a German government-owned development bank, based in Frankfurt on the Main. Its name originally comes from Kreditanstalt für Wiederaufbau (Reconstruction Loan Corporation) and it was formed after World

War II on 16 December 1948 as part of the Marshall Plan.

The KfW-Förderbank (promotional bank) as a part of the KfW bank group offers programs for the fields of housing, living and energy saving that is made for financing of residential real estate investment. The purposes of the aid are the generation of proprietary, the energetic refurbishment of buildings, modernisation of living space, construction of economical new buildings as well as photovoltaic installations. Since the year 2006 the

German Government offers one billion Euros annually to make the programs for reducing CO

2

economically worthwhile. The so called aid initiative “Wohnen, Umwelt, Wachstum” (living, environment, growth) should make it possible that the national obligations for climate protection from the Kyoto Protocol will be approached.

The annual delivery volume should be 17 billion Euros. The criteria for credit giving KfW-40 and KfW-60 (the annual primary energy demand for hot water and heating is less than 40 kWh/(m²a) and respectively 60 kWh/(m²a)) are accepted energy standards for buildings.

Important for the biomass sector are the “KfW-Programme zur energieeffizienten Sanierung (Programme 130,

430 und 143)” (programs for the energy efficient restoration). Within these programs the KfW aids basically all costs that are directly necessary for the execution of activities to better the energy efficiency. Those are costs for materials, necessary extra work (for example disposal, plastering after insulating) as well as costs for professional installation/processing by craftpersons/technical enterprises.

A schedule of the eligible investment costs during the KfW programs for the energy efficiency restoration is available under http://www.kfw-foerderbank.de/DE_Home/Service/KfW-

Formul26/Merkblaetter/Bauen_Wohnen_Energie_sparen/CO2-Gebaeudesanierungsprogramm-

Zuschuss/Liste_foerderfaehiger_Kosten.jsp

.

For private persons who wants to built or modernise a house the KfW-Förderbank offers some credit programs. Especially for the biomass sector two of these programs could be important:

 Ökologisches Bauen (ecological housing), program numbers 144 and 145

 according to energy saving the KfW offers favourable credits for the installation of heating systems based on renewable energies

 CO

2

-Gebäudesanierungsprogramm (CO

2

-refurbishment of buildings)

 the KfW offers favourable credits for activities to reduce the energy consumption of old buildings

Within the scope of these two programs the KfW-Förderbank supports for example the appointment and the outbuilding of a central heating room or a storing tank for biomass. Furthermore are eligible (only some important examples):

 Activities of architects and engineers

 Administration activities of the house builder (for example fees for construction site management)

 Costs for office activities (building licence, final acceptance and so on)

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 Costs for advance information, consulting and planning inclusive costs for energy advice

 Costs for the Energieausweis (Energy Performance Certificate for Buildings) as well as inspection and writing of the certificates according to the program instructions

 Costs for detailed planning and tendering (air density concept, dimensioning of the heating system, assistance during bid appraisal)

 Costs for assistance during building (inspecting construction side)

 Costs for final inspection and expert appraisal (Blower Door Measurement, infrared thermography, instruction in building services)

All things which are services in own account are not eligible. If so, also the costs for materials are not eligible.

 KfW-Programm Erneuerbare Energien (program number 128, programme to promote renewable energies)

The KfW-programme 128 promotes activities for using renewable energies in Germany. It holds on to

31.12.2007.

According to environmental and climate protection the KfW and the “Bundesministerium für Umwelt,

Naturschutz und Reaktorsicherheit (BMU)” benefit especially recoverable bigger installations for using renewable energies. Within the “BMU-Richtlinie zur Förderung von Maßnahmen zur Nutzung erneuerbarer

Energien in Deutschland” they contract long-dated low interested credits with amortisation benefits from federal funds for:

 Installations for combustion of solid biomass

 Installations for using profundities geothermic energies

 Big solar panel installations

In the sector of Installations for combustion of solid biomass for thermal using are following regulations classified:

 Aided are the installation and flaring of automatically loaded installations for combustion of solid biomass for only thermal using with a nominal heat capacity of more than 100 kW if the emission values (see http://www.kfw-foerderbank.de/DE_Home/Service/KfW-

Formul26/Merkblaetter/Umweltschutz/KfW-Programm_Erneuerbare_Energien/index.jsp

) are kept.

 Solid biomasses are for example wood pellets, split logs or wood chips. The amortisation benefit is

20 Euros per kW installed or expanded nominal heat capacity, but at most 50,000 Euros. per kW installed or expanded heat capacity, but at most 60,000 Euros.

If a heat provider's distribution network is installed or expanded, the amortisation benefit is 24 Euros

Amount of financing:

 Financing part: up to 100 % of the clear investment costs (with out value added taxes

 Credit amount: mostly maximal 5 million Euros

 A combination of the KfW-credit with other benefits is in principal possible. The credits can be combined with other aids from public authorities, but the sum of all is not allowed to rise above the sum of all charges.

 Credit period: maximal 20 years with a grace period of maximal 3 starting years

 Conditions:

- Credits with a runtime of up to 10 years have an attached rate of interest for the whole time

- Credits with more than 10 years runtime have an attached rate of interest for the first 10 years.

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Before ending the fixed-interest-period the KfW puts a prolongation offer to the conducting bank.

The effective maximal interest rates (nominal and effective interest rates according to PAngV) are available in the internet under www.kfw-foerderbank.de

.

 Outpayment: 96 %

 Commitment commission: 0.25 % per month (starting 2 bank workdays and one month after acquisitions date of the KfW for even not paid credit sums)

 Assurances: customary in banking

BRANDENBURG

 REN-Program: Energy efficiency and usage of renewable energies

Directive of the Ministry of Economy in order to increase energy efficiency and use of renewable resources

(REN-Program), 18 th of July, 2007

Goal of the program is a further increase of the share of renewable energies of the primary energy consumption in the State of Brandenburg. Furthermore, the ecological damage by carbon monoxide, carbon dioxide, sulphur dioxide and particulate matter is supposed to be reduced by means of investments into the energy efficiency and technological development industry.

More details: http://www.ilb.de/rd/programme/1693.php?PHPSESSID=0cuvalsnkiel7hutujsdb36qa5

2.5.3.2

Financing and subsidies for the entrepreneurs related to the biomass sector.

For starting up an entrepreneur or a company following subsidies are available in Germany:

 Establishment benefit from the Federal Employment office

( http://www.unternehmenswelt.de/gruendungszuschuss.html

)

 Entrance money from the Federal Employment Office

( http://www.unternehmenswelt.de/einstiegsgeld.html

)

 KfW-entry fee ( http://www.unternehmenswelt.de/kfw-startgeld.html

)

(a credit for 3 years from the KfW bank for founder of a new business)

 Entrepreneur credit from the KfW

( http://www.unternehmenswelt.de/unternehmerkredit.html

)

 Founder coaching

(http://www.unternehmenswelt.de/gruendercoaching.html)

(The “Gründercoaching Deutschland” is a benefit program of the Federation and the “KfW-

Mittelstandsbank”. A qualified management consultant attends the new founded business.)

 ERP-starting funds from the KfW within the program “ERP-Startfonds”

( http://www.unternehmenswelt.de/erp-startfonds.html

)

 High-Tech founder funds

( http://www.unternehmenswelt.de/high-tech-gruenderfonds.html

)

(An initiative from the Federal Government together with companies of the German industry)

2.5.3.3


The legal backgrounds for subsidies in forestry are:

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



VO (EG) Nr. 1698/2005 “ELER-Verordnung”

VO (EG) Nr. 1974/2006 “Durchführungsverordnung”









VO (EG) Nr. 1975/2006 “Kontrollverordnung”

VO (EG) Nr. 1290/2005 “Finanzierungsverordnung”

Bundeswaldgesetz

Gesetz über die Gemeinschaftsaufgabe

Special legal backgrounds in the Free State of Thuringia are:





Thüringer Waldgesetz (ThürWaldG)

Thüringer Landeshaushaltsverordnung

Special legal backgounds in Brandenburg are:





Brandenburger Waldgesetz (LWaldG)

Landeshaushaltsordnung (LHO) Brandenburg

The directives are:









Aid for forestry activities according to GAK (Gemeinschaftsaufgabe des BMELV zur "Verbesserung der Agrarstruktur und des Küstenschutzes", Joint Agreement of the BMELV for the Bettering of agricultural structure and coastal protection)

Aid for wood environment activities





Aid for investments in forest enterprises and the converting and marketing of wood

Soil protection liming

Structure aid help

Disposal aid for products from forestry and wood commercial

The first four directives are part of the “Förderinitiative Ländliche Entwicklung Thüringen 2007 bis 2013”

(FILET).

Investments in forest enterprises and the converting and marketing of wood take place for machines and installations for harvest wood up to 50 % of the costs. Only wood owners are eligible. The load factor has to be located predominantly in the own forest enterprise. The forest composition has to be according to the

ThürWaldG.

Machines and installations for making energy wood and investments on spar places get benefits up to 30 % of the costs. To get this the home businesses has to have less than 10 employees and an annual turnover of maximal 2 million Euros. Combustion installations are no longer eligible. Wood harvesters are eligible only for wood owners.

The figure below shows the guideline for aid activities in forestry. It shows that the FILET offers 666 thousand

Euros between the years 2007 and 2013 for marketing and converting of wood.

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Figure 12. Guideline for aid activities in forestry for the years 2007 to 2013 (*no part of the FILET)

( http://www.tll.de/ainfo/html/pdf/lwlr1607.pdf

)

Currently are no subsidies for forestry machicheries availible in Brandenburg.

2.5.4


2.5.4.1


2.5.4.1.1


EEG (Renewable Energy Sorce Act)

(First edition from 29 March 2000, entered into force on 1 April 2000, last revised published on 21 July 2004 and entered into force on 1 August 2004)

The EEG was passed to push the expansion of power generating plants which were feed by renewable sources. It was brought preferential into being for climate protection and to reduce the dependency from fossil fuels as well as the importation of energy from out of the EU. The act is a contribution to increase the percentage of renewable energy sources in power supply to at least 12.5 per cent by 2010 and to at least 20 per cent by 2020.

The legally binding version of the EEG is published in the Federal Law Gazette (Bundesgesetzblatt) 2004 I No.

40 and is available online under http://217.160.60.235/BGBL/bgbl1f/bgbl104s1918.pdf

(the English, legally non-binding version: http://www.bmu.de/files/pdfs/allgemein/application/pdf/eeg_en.pdf

).

Following list should summarise the most important items of the EEG, especially concerning to biomass:

 General electricity supply of plants generating electricity from renewable energy sources and from mine gas has to be prior connected to the grid systems (Article 4).

 Such electricity has to be purchase, transmit, and paid prior by the grid system operators (Article 5).

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 Defining the minimum fees and the bonuses for electricity produced from

- hydropower (Article 6)

- landfill gas, sewage treatment plant gas and mine gas (Article 7)

- geothermal energy (Article 9)

- wind energy (Article 10)

- solar radiation (Article 11)

 Defining the minimum fees (so called base payment) for electricity produced from biomass subject to the capacity of the plants and the type of biomass (Article 8)

 Defining the bonuses additional to the base payment (Article 8)

 The costs associated with connecting plants generating electricity from renewable energy sources to the technically and economically most suitable grid connection point shall be borne by the plant operator. If the grid system operator establishes an other connection point for the plant, he shall bear the resulting incremental cost.

 The transmission system operators are responsible for the nation-wide equalisation of the different volumes of and periods of the generated energy (Article 14)

The other articles of the EEG deal with:





Purpose of the act (Article 1)

Scope of application (Article 2)





Definitions (Article 3)

Transparency (Article 15)









Special equalisation scheme (Article 16)

Guarantee of origin (Article 17)

Prohibition of multiple sale (Article 18)

Clearing house (Article 19)

 Progress report (Article 20)

 Transitional provisions (Article 21)

BiomasseV (Ordinance on Generation of Electricity from Biomass)

(First edition from 21 June 2001 (BGBl. I S. 1234), modified by the ordinance from 9 August 2005 (BGBl. I S.

2419))

The legally binding version of the BiomasseV from 9 August 2005 is available online under http://www.gesetze-im-internet.de/bundesrecht/biomassev/gesamt.pdf

.

An English translation from the BiomassV from 21 June 2001 exists under: http://www.bmu.de/files/erneuerbare_energien/downloads/application/pdf/electicity_biomass.pdf

). According to the BMU (Federal Ministry for the Environment, Nature Conservation and Nuclear Safety) the English translation of the update version will be available under the same address shortly.

The BiomasseV regulates, according to the EEG (Renewable Energy Sources Act), what substances shall be considered biomass, what technical processes for generating electricity from biomass fall within the Act’s scope of application, and what environmental standards must be met in the generation of electricity from biomass.

Included Biomass are energy sources from phytomass and zoomass including products, by-products, residues and waste from phytomass and zoomass whose energy content comes from phytomass and zoomass (Article

2). In particular biomass is:

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 Plants and parts of plants

 Energy sources made from plants or part of plants whose components and intermediate products have all been produced from biomass

 Waste and by-products of plant and animal origin from agriculture, forestry and commercial fish production

 Biological waste within the meaning of Article 2 No. 1 of the Bioabfallverordnung (Biological Waste

Ordinance, http://bundesrecht.juris.de/bundesrecht/bioabfv/gesamt.pdf)

 Gas produced from biomass by gasification or pyrolysis and all resulting products and by-products

 Alcohols produced from biomass whose components, intermediate products, products and byproducts have been produced from biomass

 Waste wood, comprising used wood or industrial waste wood which is considered waste

 Gas produced from waste wood

 Plant-oil methyl ester

 Flotsam from waterbody management and from shoreline management and cleaning

 Biogas produced by anaerobic fermentation

Excluded Biomass is (Article 3):

 Fossil fuels and products and by-products made from them

 Peat

 Mixed municipal solid waste from private households and similar waste from other source areas

 Waste wood

- that contains more than 0.005 % by weight of polychlorinated biphenyls (PCB) or polychlorinated terphenyls (PCT)

- that contains more than 0.0001 % by weight of mercury

- of other types, if its thermal exploitation as waste for recovery is prohibited under the Closed

Sustance Cycle and Waste Management Act

 Paper, cardboard, pasteboard

 Sewage sludges within the meaning of the Klärschlammverordnung (Sewage Sludge Ordinance, http://bundesrecht.juris.de/bundesrecht/abfkl_rv_1992/gesamt.pdf)

 Harbour sludges and other waterbody sludges and sediments

 Textiles

 Animal carcasses or parts of them and products within the meaning of Article 1 (1) of the

Tierkörperbeseitigungsgesetz (Animal Carcass Disposal Act), which are to be disposed of in slaughter houses pursuant to ordinances enacted there under, and substances which occur through their disposal or through other means

 Landfill gas

 Gas from sewage treatment installation

Technical processes for generating electricity from biomass are single-stage and multi-stage electricity generating processes with following types of plants Article 4):

 Combustion systems in combination systems in combination with steam turbine, steam engine, Stirling engine and gas turbine processes, including organic rankine cycle (ORC) processes

 Combustion engine systems

 Gas turbine systems

 Fuel cell systems

 Other types of installations that are operated with regard to the aim of climate and environmental protection

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Ignition or supporting combustion using substances may be used for generating electricity from biomass if it is necessary. Also sewage sludge gas or gas produced by thermal processes under oxygen deficiency

(synthesis gas) may be used if the synthesis gas is produced from sewage sludge.

To protect the environment the ordinance defines some standards (Article 5):

 For the use of waste wood which contains residues from wood-preserving agents or/and halogenorganic compounds in their coating the installation must have the standards of the

“Verordnung über Verbrennungsanlagen für Abfälle und ähnliche brennbare Stoffe” (Ordinance

Combustion of Waste and Similar Combustible Materials) of 23 November 1990

 By using waste wood in combination with steam-turbine processes with an installed electricity capacity of more than 5 megawatts, whose heat is not passed to a third party and for which no obligation exists under pollution control certification procedures to use the produced heat in the installation itself, the systems must achieve the following efficiency levels for gross electricity generation:

- a minimum of 25 % in electricity generation of more than 5 WW up to and including 10 MW



This standards shall also apply to the condensation-only operating mode of installations of this type which at times operate with condensation but mostly operate in condensation-only mode.

2.5.4.1.2


Especially concerning to biomass the EEG defines the minimum fees and the bonuses for electricity produced from biomass:

 Defining the minimum fees (so called base payment) for electricity produced from biomass subject to the capacity of the plants and the type of biomass (Article 8):

- for plants using exclusively biomass and with a capacity of up to and including 20 MW:

 at least 11.5 Cent/kWh up to and including a capacity of 150 kW

 at least 9.9 Cent/kWh up to and including a capacity of 500 kW

 at least 8.9 Cent/kWh up to and including a capacity of 5 MW

 at least 8.4 Cent/kWh for a capacity over 5 MW

- for plants also using waste wood classified in categories A III and A IV set out in the Waste Wood

Ordinance of 15 August 2002 (BGBl. I p. 3302) 3.9 Cent/kWh

As of 1 January 2005, the minimum fees for new plants commissioned after that date shall be reduced by 1.5 % annually of the relevant value for new plants commissioned in the previous year. The fees were paid during a period of 20 years. The minimum fee according to the year of commissioning of the plant retains unchanged during the whole time of remuneration.

Defining the bonuses additional to the base payment (Article 8):

- bonus for plants using renewable raw materials:

 6 Cent/kWh up to and including a capacity of 500 kW

 4 Cent/kWh up to and including a capacity of 5 MW

- bonus for plants burning wood:

 6 Cents/kWh up to and including a capacity of 500 kW

. 2.5 Cents/kWh up to and including a capacity of 5 MW

- bonus for electricity within the meaning of Article 3(4) of the Combined Heat and Power Generation Act

( http://www.gesetze-im-internet.de/bundesrecht/kwkg_2002/gesamt.pdf

):


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- bonus if the electricity was produced in plants using combined heat and power generation and if the biomass was converted by thermo chemical gasification or dry fermentation:


(A detailed overview to the development of the EEG 2004 fees for the different renewable energies as well as some worked samples to demonstrate the development of the averaged fees is available under http://www.bmu.de/files/pdfs/allgemein/application/pdf/verguetungssaetze_nach_eeg.pdf

.)

2.5.4.1.3


According to the interviewed companies Germany has too much bureaucracy. The processing time for legislative permits - not only for biomass plants – is too long and too difficult.

The following figure gives an overview to the legally classification and working stages during planning, installation and modification of a biomass plant:

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Figure 13. Legally classification and working stages during planning, installation and modification of a biomass plant ( http://www.tlug-jena.de/contentfrs/fach_02/biogasanlagen/malsch%20genehm.pdf

)

108 (127)



NORTH THURINGIA

In the Free State of Thuringia in general following process takes place before the installation of a biomass plant can start:

At first the permission application for the biomass plant has to be filed at the Thüringer Landesverwaltungsamt

Weimar. There a receiving and completeness inspection takes place by the authorising agency. The authorising agency checks about:

 Right application, new license, modification license, 4. BImSchV, capacity parameter, plant together with neighbour plant

 Type of the licence (public, basic)

 Environmental Impact Assessment: site-related preliminary test, biological handling with waste products (general preliminary test)

 Quantitative and qualitative completion of the documents (immission control and other sector agencies according to article 13 BImSchG)

Engaged technical authorities are:

Noise protection

Waste management

Planning commission

Brownfield/Soil protection

Fire protection

Employment protection

Regional planning agency

Air traffic

Forestry

Environmental protection

Water protection

Township

Archaeological monument protection

Surveillance authority

Veterinary system

Protection of the rural regions

Train

Road construction

Than the permission application must complete. The agency certifies it (formal completeness) and sets the period running beginning.

The licensing notice is given if all involved technical authorities including immission control are agreed.

Concluding the immission protecting legislative collateral clauses are working out by the authorising agency.

The authorising agency takes the editorial work. Different collateral clauses from different agencies were coordinate and concretised.

After given a decision concept a hearing process takes place. The decision concept is published; a hearing consultation together with the authorising agencies takes place. Closing the process a decision with statements is given.

BRANDENBURG

The same procedure is in Brandenburg.

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2.5.4.2


2.5.4.2.1


For thermal applications of biomass some parts of the BiomasseV (Ordinance on Generation of Electricity from Biomass) are binding. For this look at the abstract of the ordinance in chapter 2.5.4.1.1 Ordinances and/or specific legislation.

Furthermore the KfW-Programm Erneuerbare Energien (program number 128, programme to promote renewable energies) promotes installations for combustion of solid biomass for thermal using. The regulations of the KfW-program are listened in this in chapter 2.5.3.1 KfW-Programm Erneuerbare Energien.

2.5.4.2.2


Look at chapter 3.5.4.1.3

2.5.4.3

Other laws and ordinances referring to biomass

Altholzverordnung (AltholzV, Waste Wood Ordinance)

Original: http://bundesrecht.juris.de/bundesrecht/altholzv/gesamt.pdf

English translation: http://www.bmu.de/files/pdfs/allgemein/application/pdf/wastewood_ordinance.pdf

The AltholzV defines the standards for the exploitation and the abolishment of waste wood. It came into force on 1 March 2003.

Bioabfallverordnung (BioAbfV, Ordinance on Biowastes)

Original: http://bundesrecht.juris.de/bundesrecht/bioabfv/gesamt.pdf

English translation: http://www.bmu.de/files/pdfs/allgemein/application/pdf/bioabfv_engl.pdf

The BioAbfV defines the standards for the Utilisation of Biowastes on Land used for Agricultural, Silvicultural and Horticultural Purposes. It came into force on 21 September 1998 (BGBl. I S. 2955), last chance on 20

October 2006 (BGBl. I S. 2298).

Annex 1: List of all biowaste which are principal useful for a exploitation on areas as well as principal useful minerally aggregates

Annex 2: Epidemic and phyto-hygienic harmlessness

Annex 3: Standards for analytic (sampling, sample preparation and analysis of untreated and treated biowaste

Biokraftstoffquotengesetz (BioKraftQuG, Biofuel Rate Act)

Original: http://fnr-server.de/cms35/fileadmin/biz/pdf/gesetzeslage/BioKrQuotengesetz_Text.pdf

(Passed on 26 October 2006, published on 21 December 2007)

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From 1 January 2007 the BioKraftQuG brings the minimum rate for biofuel into effect. The person who puts benzin or diesel fuel into circulation has to assure that a minimum rate of biofuel, relating to one calendar year, is in this fuel.



From December 2007 the minimal biofuel rate has to be:

4.4 % by diesel fuel

 1.2 % by benzin with an annual heightening of 0.8 % up to at least 3.6 % in 2010

From 2009 there has also to be kept a combined ratio of 6.25 % up to 8.00 % in 2015. Thereby it is possible to admix biofuel to benzin and diesel fuel or to bring pure biofuel into circulation.

By breaking the ratio obligation sanctions of 60 Cent/l biodiesel and 90 Cent/l bioethanol will follow.

Pure biofuels which were not used to achieve the biofuel rate are furthermore tax-privileged. By this it is necessary to achieve the particular norm for biodiesel and vegetable oil.

Furthermore the Federal Government has to work out an annual report for the Bundestag. The report is especially made for checking towards overcompensation or undercompensation of the additional costs during producing biofuel. The first report has to be present in autumn 2007. If the market ratio documents an unjustifiable taxation of the pure biofuels, the Bundestag will be able to conform the rate of taxation with an Act of Parliament.

Bundesimmissionsschutzgesetz (BImSchG, Federal Immission Control Act)

Original:

English translation: http://www.bmu.de/files/pdfs/allgemein/application/pdf/bimschg_071023.pdf

http://www.bmu.de/files/pdfs/allgemein/application/pdf/bimschg_071023_en.pdf

(in the version promulgated on 26 September 2002 (BGBl. I p. 3830), as last amended by Article 1 of the Act of 23 October 2007 (BGBl. I p. 2470)

The purpose of the BImSchG is the prevention of harmful effects on the environment caused by air pollution, noise, vibration and similar phenomena. People, animals and plants, the earth, the water, the atmosphere as well as cultural assets and other real assets should be protected. It also should prevent becoming harmful environmental influence.

More than 30 Federal Emission Control Acts arrange how the law has to be reduced to practise. This concern fundamentally technique details, standard for special types of plants as well as details about licensing procedures and system control.

As far as that are plants with facilities requiring authorisation, the BImSchG acts also for the integrated prevention for harmful environmental causes by emissions into the air, water or earth under integrated waste management. This is necessary to achieve a high level of environmental protection of all as well as to get a protection and precaution against danger, extensive handicaps and extensive harassments which are caused otherwise.

Düngemittelverordnung (DüMV, Fertilizer Regulation)

Original: http://bundesrecht.juris.de/bundesrecht/d_mv/gesamt.pdf

111 (127)



(In the version promulgated on 26 November 2003 (BGBl. I p. 2373), as last amended by the „Vierte

Verordnung zur Änderung düngemittelrechtlicher Vorschriften“ (fourth ordinance to modificate the fertilizer lawfull introductions) on 27 July 2006 (BGBl. I p. 1818)

The DüMV regulates the allowance and the marking of fertilizers. A type register as the essential part of the

Ordinance is divided in:

- mineral one nutriment fertilizers

- mineral more nutriment fertilizer

- organic and organic-minerally fertilizers

- fertilizers with micro nutriments

Düngeverordnung (DüV, Fertilize Ordinance)

Original: http://bundesrecht.juris.de/bundesrecht/d_v/gesamt.pdf

The DüV regulates the use of fertilizers, earth auxiliary materials, culture medias and plant protection agents according to the “Grundsätze der guten fachlichen Praxis beim Düngen” (principles of the good professional practice for fertilizing) on 27 February 2007.

In some parts this ordinance also acts for the realisation of the directive RL 91/676/EWG of the Council from

12 December 1991 for the protection of waterbody against pollution with nitrate from farming (ABl. EG Nr. L

375 p. 1).

Energiesteuergesetz (EnergieStG, Energy Tax Act)

Original: http://bundesrecht.juris.de/bundesrecht/energiestg/gesamt.pdf

(In the version promulgated on 19 July 2006 (BGBl. I no. 33 p. 1534), coming into effect on 1 August 2006)

The EnergieStG detached the Mineralölsteuergesetz (Mineral Oil Tax Act). It sets a new regulation for the taxes for pure fuels, particularly for biofuels.

It regulates the taxes of all kinds of energy, for example fossil fuels (mineral oils, natural gas, liquid gas) as well as renewable energies like vegetable oil or alcohols for heating or as fuel. Aside the other fossil fuels hard coal and brown coal as well as coke and lubricant are included.

EnergieEinsparverordnung (EnEV, Energy Saving Ordinance)

Original: http://bundesrecht.juris.de/bundesrecht/enev_2007/gesamt.pdf

(Passed on 27 June 2007, date of issue: 24 July 2007 (BGBl. I, p. 1519))

The EnEV combines two older ordinances: the “Wärmeschutzverordnung” (Heat Insulation Ordinance) from 16

August 1994 and the “Heizungsanlagenverordnung” (Heating Installation Ordinance) from 4 May 1998.

Thereby it makes higher demands for the energy budget of buildings. For example the EnEV sets the Low-

Energy House as standard.

The EnEV puts the European Building Directive into national legislation. An essential element is the introduction of the “Energieausweis” (Energy Performance Certificate for Buildings) for existing buildings in the case of renting and selling.

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Bidders and prospective renters have to be informed by the owner or hirer of a building about the energetic quality of this building. Therefore they use the “Energieausweis” and the concomitant letter of recommendation for modernisation. The modernisation recommendations contain concrete advices for a cost-efficient bettering of the energetic quality of the building.

Furthermore there will be demands on lighting, ventilation and cooling of non-residential buildings. Heating systems and air conditioning systems have to be inspected regularly.

Hygieneverordnung (Hygiene Regulation)

Original: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2002:273:0001:0095:DE:PDF

(Regulation (EC) no. 1774/2002 of the European Parliament and the council from 3 October 2002 with hygiene rules for certain animal by-products which are not for the human consumption)

Klärschlammverodnung (AbfKlärV, Sewage Sludge Ordinance)

Original: http://bundesrecht.juris.de/bundesrecht/abfkl_rv_1992/gesamt.pdf

English translation: http://www.bmu.de/files/pdfs/allgemein/application/pdf/abfklaerv_aenderung_uk.pdf

(as amended on 15 April 1992, effective from 1 July 1992)

The AbfKlärV acts for the transpose of the directive RL 86/278/EWG of the council from 12 June 1986 about the protection of the environment and particularly of the grounds by the use of sewage sludge in the agriculture (ABl. EG no. L181 p. 6).

Kreislaufwirtschafts- und Abfallgesetz (KrW-/AbfG, Circular Flow Economy and Waste Management Act)

Original: http://bundesrecht.juris.de/bundesrecht/krw-_abfg/gesamt.pdf

(Coming into effect on 6 October 1996, last amended on 15 December 2006)

The KrW-/AbfG detached the older Waste Management Act on 6 October 1996. It regulates basically the handling of and the disposal of waste.

The act is complemented by a series of executive order laws which are indulged in the relevant authority background of the KrW-/AbfG. Such executive order laws are for example:

 The “Regelung zur Produktverantwortung” (Regulation for Product Responsibility) for packaging, batteries, end-of-live vehicles, waste oil, electric and electronic instruments

 The “Anforderungen an eine umweltverträgliche Verwertung von Abfällen“ (Standards for an environmental friendly recycling of waste), for example

 Bioabfallverordnung (BioAbfV, Ordinance of Biowaste)  see above

 Gewerbeabfallverordnung (GewAbfV, Comercial Waste Ordinance)

Original: http://bundesrecht.juris.de/bundesrecht/gewabfv/gesamt.pdf



 Altholzverordnung (AltholzV, Waste Wood Ordinance)  see above

Bergversatzverordnung (VersatzV, Ordinance on Underground Waste

Stowage and to Amend the Provisions pertaining to the List of Wastes

Original: http://www.bundesrecht.juris.de/bundesrecht/versatzv/gesamt.pdf

113 (127)





 Deponieverwertungsverordnung (DepVerwV, Landfill Site Exploitation

Ordinance)

Original: http://bundesrecht.juris.de/bundesrecht/depverwv/gesamt.pdf

The „Anforderungen an die umweltverträgliche Abfallbeseitigung“ (Standards for an envionmental friendly waste disposal):

Compatible Storage of Waste from Human Settlements and on Biological

 Abfallablagerungsverordnung (AbfAblV, Ordinance on Environmentally

Waste-Treatment Facilities

Original: http://www.bundesrecht.juris.de/bundesrecht/abfablv/gesamt.pdf

 Deponieverordnung (DepV, Ordinance on Landfills and Long-Term Storage

Facilities)

Original: http://bundesrecht.juris.de/bundesrecht/depv/gesamt.pdf

Furthermore the KrW-/AbfG is concretised by different administrative regulations, particularly by the

“Technische Anleitung Abfall” (Technique Instruction Waste) and the “Technische Anleitung Siedlungsabfall”

(Technique Instruction on Municipal Waste).

Beside the federal law appears the Waste Laws of the federal states. The federal states have normally their own Waste Acts with additional regulations as well as further executive order laws and administrative regulations.

NORTH THURINGIA

In Thuringia there are for example:

 Thüringer Altlasten und Abfallwirtschaftsgesetz (Past Pollution and Waste Management Act for the

Free State of Thuringia)

Original: http://www.umwelt-online.de/recht/abfall/laender/th/abfg_ges.htm

 Kreislaufwirtschafts- und Abfallsatzung Kyffhäuserkreis (Circular Flow Economy and Waste

Management Ordinance for the district Kyffhäuser) http://www.kyffhaeuser.de/lrakyf/uploads/media/Abfallsatzung2006_1__01.pdf

BRANDENBURG

In Brandenburg there is for example:

 Brandenburgisches Abfallgesetz (BbgAbfG) (Waste Management Act for in Brandenburg) http://www.landesrecht.brandenburg.de/sixcms/detail.php?gsid=land_bb_bravors_01.c.23599.de

Technische Anleitung (TA) Abfall (TASo, Technical Instructions on Waste)

Original: http://www.bmu.de/files/pdfs/allgemein/application/pdf/taabfall.pdf

(Coming into effect on 12 March 1991 (GMBl. No. 8 p. 139), last amended on 21 March 1991)

The TASo gives the technical instructions for storage, chemical/physical and biological treatment, combustion and disposal of waste requiring special supervision.

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Technische Anleitung (TA) Siedlungsabfall (TASi, Technical Instructions on Municipal Waste)

Original: http://www.bmu.de/files/pdfs/allgemein/application/pdf/tasi_ges.pdf

(Coming into effect on 14 May 1993 (BAnz. No. 99a from 29 May 1993))

The TASi is the Third General Administrative Regulation Pertaining the Waste Management Act. It gives the technical instruction for the exploitation, handling and other disposal of municipal waste.

Technische Anleitung (TA) Luft (TA Luft, Technical Instructions on Air Quality Control)

Original: http://www.bmu.de/files/pdfs/allgemein/application/pdf/taluft.pdf

(Published on 30 July 2002, coming into effect on 1 October 2002)

The TA Luft is the First General Administrative Regulation Pertaining the Federal Immision Control Act. It serves to protect the general public and the neighbourhood against harmful effects of air pollution on the environment and to provide precautions against harmful effects of air pollution in order to attain a high level of protection for the environment altogether.

2.5.4.4


2.5.4.4.1


Related to the forestry cleaning in the Free State of Thuringia following legislations are present:

 Bundeswaldgesetz (Act for wood protection and for aid of forestry)



( http://www.gesetze-im-internet.de/bundesrecht/bwaldg/gesamt.pdf

)

Gesetz zur Änderung des Absatzfondsgesetzes und des Holzabsatzfondsgesetzes (Act for modification of the selling fund act and for the wood selling fund act)

( http://www.bmelv.de/cln_044/nn_750578/SharedDocs/Gesetzestexte/A/AbsatzfondsgesetzundHolzab

 satzfondsgesetzAend.html__nnn=true )


 Thüringer Waldgesetz (ThürWaldG)

( http://www.thueringen.de/imperia/md/content/folder/gesetze/2006_07_13thuerwaldg.pdf

)

 Thüringer Landeshaushaltsverordnung (ThürLHO)



( http://th.juris.de/th/HO_TH_2000_P44.htm

)


 Landeshaushaltsordnung (LHO) Brandenburg









VO (EG) Nr. 1698/2005 “ELER-Verordnung”

VO (EG) Nr. 1974/2006 “Durchführungsverordnung”

VO (EG) Nr. 1975/2006 “Kontrollverordnung”

VO (EG) Nr. 1290/2005 “Finanzierungsverordnung”

2.5.4.4.2

Local ordinances

In both administrative districts Kyffhäuser and Nordhausen no local ordinances concerning directly to biomass and its use for generating energy could be found.

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Specific local ordinances are also not toattend in the region Frankfurt (Oder).

2.5.5


2.5.5.1


Especially in the North of Thuringia and Brandenburg no specific selling points for raw materials exist.

Biomass plant owners mostly get their input from own animal husbandry (liquid manure, dung) or own agriculture (crop, maize, energy plants). Some of them have contracts with other farmers.

In Germany a stock exchange for biomass exists in Leipzig. The so called BIOMATRA® (Blümnerstraße 28,

04229 Leipzig, Internet: www.biomatra.de

) practises a worldwide electronic dealing platform for biomass.

Private persons and businesses can buy or sale for example solid bio energy sources, biofuels or biogas. In the shop for biomass buyer and provider can buy or sale every form of biomass around-the-clock without any contacting or bid proposal management.

The Biomatra biomass exchange offers commercial users the possibility to gathering business contacts to bidders and consumers. Biomatra takes the agency of the requests and supports the contract negotiations.

2.5.5.2


Pellets, briquettes and wood chips were dealt on the Biomatra® (see previous chapter). Furthermore a lot of smaller selling points exist all over Germany.

NORTH THURINGIA

But in the North of Thuringia there are only a little selling points, more of them could be detected within a radius of some kilometres. Following list shows some examples for selling points in the North of Thuringia and near from it:

Wood pellets:

 Eggert-Haustechnik GmbH, D-06571 Roßleben (administrative district (AD) Kyffhäuser)

 Agro-Forst-Technik und Landschaftsbau GmbH, D-99438 Tonndorf (AD: Weimarer Land)

 Der Holzhof GmbH & Co KG, D-37079 Göttingen (AD: Göttingen)

 B & L Dienstleistungs- und Service GmbH, D-99817 Eisenach

 BVG Biomasse-Verwertungs-Gesellschaft, D-37191 Katlenburg-Lindau (AD: Northeim)

 Umweltfreundliche Haustechnik GmbH, D-37077 Göttingen

 Mineralölhandel Scholz GmbH, D-99441 Umpferstedt (AD: Weimarer Land)

Straw pellets:

 Raiffeisen Waren-Zentrale Rhein-Main eG, D-99713 Ebeleben (AD: Kyffhäuser)

Wood briquettes:

 Brenn- und Kaminholz Marco Hübner, D-99094 Erfurt

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 Agro-Forst-Technik und Landschaftsbau GmbH, D-99438 Tonndorf

 Der Holzhof GmbH & Co KG, D-37079 Göttingen

 BVG Biomasse-Verwertungs-Gesellschaft, D-37191 Katlenburg-Lindau

 Rheinbraun Brennstoff GmbH, D-99427 Weimar

 Mineralölhandel Scholz GmbH, D-99441 Umpferstedt

 Scholz Holzverarbeitung, D-99441 Umpferstedt

 Bognitz Brennstoffhandel GmbH, D-06198 Beesenstedt (AD: Saalekreis)

Wood chips:

 Agro-Forst-Technik und Landschaftsbau GmbH, D-99438 Tonndorf

 BVG Biomasse-Verwertungs-Gesellschaft, D-37191 Katlenburg-Lindau

 Scholz Holzverarbeitung, D-99441 Umpferstedt

 Biomasse Fischer GbR, D-99636 Rastenberg (AD: Sömmerda)

Split logs:

 Borchard Garten- und Landschaftsbau, 37115 Duderstadt (AD: Göttingen)

 Mobiles Sägewerk und Holzhandel Fehse, D-06642 Altenroda (AD: Burgenlandkreis)

 Dold Holzwerkstoffe GmbH, D-06618 Naumburg (AD: Burgenlandkreis)

 Holzkontor Erfurt GmbH, D-99094 Erfurt

 Weiland holz & raum, D-99869 Tüttleben (AD: Gotha)

 Bruno Reimann GmbH & Co KG, D-38667 Bad Harzburg (AD: Goslar)

 Holz-Henkel GmbH & Co KG, D-37075 Göttingen

 Holzwerk Kirchberg GmbH, D-38723 Seesen (AD: Goslar)

 IVG Industrieverpackungs-GmbH, D-37075 Göttingen

 Goldbacher Holzland GmbH, D-99869 Goldbach (AD: Gotha)

 Holzhandel Alwin Höhne GmbH & Co.KG, D-99089 Erfurt

 Holzladen Inh. Andrea Lange, D-07749 Jena

 Sägewerk Kurth GmbH, D-37136 Seeburg (AD: Göttingen)

 Philipp Huse u. Sohn, D-37296 Ringgau (AD: Werra-Meißner-Kreis)

 Sägewerk Gunter Zündel, D-38899 Trautenstein (AD: Harz)

 Hagebaucentrum Kölleda GmbH, D-99625 Kölleda (AD: Sömmerda)

 Bernd Arno Stadermann, D-37327 Leinefelde (AD: Eichsfeld)

 Andre Görlach, D-99834 Gerstungen OT Lauchröden (AD: Wartburgkreis)

 Ascherslebener Holzhandel GmbH, D-06449 Aschersleben (AD: Salzlandkreis)

 Astrid Hagedorn, D-37327 Leinefelde

 Krome GmbH, D-37520 Osterode (AD: Osterode am Harz)

 Mathias Becker, D-99330 Gräfenroda (AD: Ilm-Kreis)

 Mobile Sägetechnik Döring, D-99310 Alkersleben (Ilm-Kreis)

BRANDENBURG

In the region Brandenburg there are also smaller selling points for the different kinds of pellets. It is not a problem to order pellets direct or by a buyer association. Here are some examples:

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Wood pellets:

 Nerlich & Lesser KG Cottbus, D-03042 Cottbus

 AlphaPellet GmbH, D-03205 Calau

 B & B Bioenergie GmbH, Betriebsstätte Calau, D-03205 Calau

 Biobrennstoff GmbH i. G., D-15306 Seelow

 Holzkontor und Pelletierwerk Schwedt GmbH, D-16303 Schwedt/Oder

 Klaus Rundt GmbH, D-13125 Berlin

 Rheinbraun Brennstoff GmbH. D-13353 Berlin

 GHS Falkensee, D-14612 Falkensee

Wood briquettes:

 Nerlich & Lesser KG Cottbus, D-03042 Cottbus

 Hans Engelke Energie. D-12099 Berlin

 Umweltgut, D-14469 Potsdam

 BayWa AG, D-15926 Luckau

 BHB Biomassehof Brandenburg GmbH, D-14656 Brieselang OT Zeestow

Wood chips:

 AlphaPellet GmbH, D-03205 Calau

 Energie- und Umwelttechnik, Karsten Stahl

 Planung-Beratung-Vertrieb, D-12055 Berlin

 Hackschnitzel von Schönfels GmbH, D-16775 Gransee, OT Dannenwalde

 HTB Haustechnik GmbH Brandenburg, D-14770 Brandenburg

Split logs:

 HTB Haustechnik GmbH Brandenburg, D-14770 Brandenburg

 Biocare RegSys ltd., 15236 Jacobsdorf

 UPM, Werk Schwedt, D-16303 Schwedt/Oder

 Sägewerk & Zimmerei Franzburg GmbH & Co. KG, D-18461 Franzburg

2.5.5.3


How far the installers of biomass plants in the North of Thuringia work together is unknown.

There are also no information about installer networks in Brandenburg.

118 (127)



BIBLIOGRAPHY

D ATA S OURCES USED BY PROJECT PARTNERS

Tampere Region

Minister of Trade and Industry, Action Plan for Biomass –Commission advices, 2006, Information gathered in

17 th of June, 2008. Information only in Finnish.

Statement of Committee of Economy, Parliament of Finland, 18/2006vp. Information gathered in 17 th of June,

2008. Information only in Finnish

European Union Commission decision on greenhouse gas emissions (Euroopan parlamentin ja neuvoston direktiivin 2003/87/EY mukaisten ohjeiden vahvistamisesta kasvihuonekaasupäästöjen tarkkailua ja raportointia varten). Information gathered in 17th of June, 2008. Information only in Finnish.

Council of the State decision on admitting rights to emit for power plants. Information gathered in 17 th of June,

2008. Information only in Finnish.

Report for Finnish Energy Industries made by Green Stream Network, 2007, Survey on costs of increasing renewable energy and means to advantage it (Selvitys uusiutuvan energian lisäämisen kustannuksista ja edistämiskeinoista). Information gathered in 17 th of June, 2008. Information only in Finnish.

Forest legislation http://www.finlex.fi/fi/laki/ajantasa/1996/19961093 . Information gathered in 13 th of June,


Electricity Supply by Energy Sources, http://www.energia.fi/content/root%20content/energiateollisuus/en/news/liitteet/energy%20year%202007%20sl ides.ppt?SectionUri=%2fen%2fnews#264,7,Electricity Supply by Energy Sources 2007 (90,3 TWh).

Information gathered in 13 th of June, 2008.

Electricity production, http://www.energia.fi/fi/sahko/sahkontuotanto . Information gathered in 13 th of June,

2008.

Grid permission, http://www.energiamarkkinavirasto.fi/select.asp?gid=43 . Information gathered in 13 th of June,


Selling electricity, http://www.energiamarkkinavirasto.fi/select.asp?gid=41 . Information gathered in 13 th of

June. Information only in Finnish.

Subsidies (environment subsidy) for nurturing and harvesting the forest, http://www.finlex.fi/fi/laki/alkup/2007/20070544?search%5Btype%5D=pika&search%5Bpika%5D=mets%

C3%A4n%20ymp%C3%A4rist%C3%B6tuki . Information gathered in 13 th of June, 2008. Information only in

Finnish.

Finnvera loans, guarantees and export credit guarantees http://www.finnvera.fi/index.cfm?id=1111 .

Information gathered in 13 th of June, 2008.

Tekes funding, http://www.tekes.fi/rahoitus/yritys/miten_haetaan.html

. Information gathered in 13th of June,


119 (127)



Technopolis Ventures http://www.technopolisventures.fi/index.php?1326

. Information gathered in 13 th of June,

2008.

Hermia Business Development Ltd http://www.hermiayrityskehitys.fi/english/index.htm

. Information gathered in

13th of June, 2008.

Jussi Orhanen, “Energy in Finland”, 2008. Information gathered in 29 th of May, 2008.

Biobusiness project, D9-Report on Interviews.

Biobusiness project, Report on “Detection of Business Opportunities for Entrepreneurs and SME’s in Biomass

Sector, Tampere Region”, 2008.

Tekes funding, http://www.tekes.fi/eng/tekes/rd/funding.htm

. Information gathered in 26th of June, 2008.

Article “Ydinvoimayhtiöt lypsävät valtavia tukiaisia päästökaupasta” http://www.hs.fi/talous/artikkeli/Ydinvoimayhti%C3%B6t+lyps%C3%A4v%C3%A4t+valtavia+tukiaisia+p%C3%

A4%C3%A4st%C3%B6kaupasta/1135237358597 . Information gathered in 22nd of June, 2008. Information only in Finnish.

Article “Ydinvoimayhtiöt lypsävät valtavia tukiaisia päästökaupasta” http://www.hs.fi/talous/artikkeli/Ydinvoimayhti%C3%B6t+lyps%C3%A4v%C3%A4t+valtavia+tukiaisia+p%C3%

A4%C3%A4st%C3%B6kaupasta/1135237358597 . Picture: http://www.hs.fi/kuva/1135237358837?orientation=horizontal . Information gathered in 22nd of June, 2008.

Information only in Finnish.

Fortum, statement of subsidy system for renewable energy usage in electricity production , 2006, http://www.fortum.com/gallery/press/kannanottoja/RES_E_FI.pdf

. Information gathered 25th of June, 2008.

Green Certificates and Electricity Production in Finland –Model on Subsidy System for Energy Production from

Biomass, Gradual research of Kari Aarnos, University of Helsinki, 2007, http://www.mm.helsinki.fi/mmtal/ye/tutkimus/aarnos_gradu.pdf


Information only in Finnish.

Green certificates, Motiva, 2007, http://www.motiva.fi/fi/toiminta/uusiutuvaenergia/ohjaustoiminta/vihreatsertifikaatit/ . Information gathered in 25 th of June, 2008. Information only in

Finnish.

Energy information from the Tampere Region, 2006, http://www.sentre.fi/mp/db/file_library/x/IMG/15674/file/Pirkanmaanenergiatietoja21.2.2007.pdf

. Information gathered in 25th of June.

Biobusiness project, “Inventory of Resources” –report, 2007, http://www.euro-biomass.com/biobusinessdocuments.htm

.

Forest Association, Energy tree harvesting subsidy, http://www.metsakeskus.fi/web/fin/palvelut/puuenergia/energiapuutuet/etusivu.htm

. Information gathered in

26th of June, 2008.

120 (127)



Finland’s environmental administration, Environment subsidies, 2008, http://www.ymparisto.fi/default.asp?contentid=280885&lan=FI . Information gathered in 26 th of June, 2008.

Finland’s environmental administration, Environment permits, http://www.ymparisto.fi/default.asp?contentid=83227&lan=fi . Information gathered in 26 th of June, 2008.

2008,

Energy market Agency, Emitting rights, 2008, http://www.energiamarkkinavirasto.fi/select.asp?gid=187&pgid=187 . Information gathered in 26 th of June,

2008.

Centre of Expertise Programme, 2008, http://www.oske.net/en/what_is_oske/ . Information gathered in 27 th of

June, 2008.

Motiva Ltd, 2008, http://www.motiva.fi/fi/ . Information gathered in 27 th of June, 2008.

Reine Piippo, Suomen Pellettiyhdistys (Finland’s pellet association), 2008, Pellettijärjestelmät öljy- ja sähkölämmityksen korvaajina - Mutta mikä hidastaa? Information only in Finnish.

Biobusiness project, “Study of Trends” –report, 2007, http://www.euro-biomass.com/biobusinessdocuments.htm

.

Kauppalehti, Input tariff for wind power, 2008, http://www.kauppalehti.fi/5/i/talous/uutiset/etusivu/uutinen.jsp?oid=12772&sort=false . Information gathered in

27 th of 2008.

Government statement, input tariff, 2006, http://www.parliament.fi/faktatmp/utatmp/akxtmp/tavm_23_2006_p.shtml

. Information gathered in 27 th of 2008.

Input tariff, 2008, http://www.parliament.fi/faktatmp/utatmp/akxtmp/tavm_23_2006_p.shtml

. Information gathered in 27 th of 2008.

Ministry of Trade and Industry, Input tariff for peat, http://www.fingrid.fi/attachments/fi/palvelut/turpeen_syottotariffi/valtioneuvoston_asetus_27032007.pdf

.

Information gathered in 27 th of 2008.

2007,

Electricity production legislation, http://www.finlex.fi/fi/laki/ajantasa/1996/19961260 . Information gathered 27th of June, 2008. Information only in Finnish.

VAPO, http://www.vapo.fi/fin/yksityisasiakkaat/lammityspolttoaineet/pelletit/yleista_pelletista/?id=1688 .

Information gathered in 27th of June, 2008.

Forestry Centres, 2008, www.metsakeskus.fi


HAKE-project, http://www.sentre.fi/mp/db/file_library/x/IMG/13897/file/Loppuraporttisisalto30.6.2005.doc

. gathered in 27th of June, 2008.

2005,

Information

Pomurje Region

Energy Analysis of the Pomurje region: LEA Pomurje, 2006.

121 (127)



Inventory of resources: assessment of the biomass resources in the communities: DA Sinergija, 2007.

Trends in biomass related enterprises creation and development in biomass sector: DA Sinergija, 2007.

Detection of business opportunities for entrepreneurs and SME’s in biomass sector: DA Sinergija, 2008.

Report “Trends of biomass development, business opportunities”: Jožef Maučec, d.i.s. spec., 2008.

Ministry of Environment and Spatial Planning database, 2008.

National Agency for Energy Efficiency and Renewable Energy Sources database, 2008.

Slovenian Forest Service database, 2005.

Renewable Energy Sources – Opportunity of Pomurje, Sinergija, MOP RS, 2005.

The more efficient wood biomass usage in Pomurje, MOP RS, 2006.

Annual Report of the Panvita Group, KG Rakičan – EKOTEH d.o.o., 2006.

Annual Evidences of the Chambers of Crafts of Pomurje, 2008.

Interviews with entrepreneurs and investors from biomass sector of Pomurje. www.zakonodaja.gov.si www.ekosklad.si www.rra-mura.si www.aure.si http:/europa.eu http://www.zgs.gov.si/biomasa1/index.php?p=les http://www.stat.si/novica_prikazi.aspx?id=445 http://www. panvita.eu http://www.sigov.si/zgs/biomasa1/index.php?p=potenciali http://www.zgs.gov.si/biomasa1/index.php?p=les http://www.slobiom-zveza.si

Burgos Region http://www.idae.es/

122 (127)


Financial Frameworks in the target regions http://www.eren.jcyl.es/ http://www.diputaciondeburgos.es/ http:/europa.eu http://www.bioplat.org/ http://www.portalforestal.com/

Programa de Energías Renovables (PER), 2005

Central Hungary Region

Hungarian Energy Office: http://www.eh.gov.hu/home/html/index.asp?msid=1&sid=0&HKL=1&lng=2

Energiaközpont (Energy Centre): http://www.energiakozpont.hu/intro.php

Attila Bai: Biomassza

Attila Bai: Biomassza tanulmány (Biomass study)

Government Resolution 1031/2000. (IV. 7.)

National Rural Development Plan, Decree 28/2005. (IV. 1.)

Act XV of 2005 on the trading system of greenhouse gas emission units

Act CX of 2001 on electricity; Decree 56/2002. (XII.29)

Act LXXXVI of 2007

North Thuringia and Branderburg Region

Landesumweltamt Brandenburg

Ministerium für Ländliche Entwicklung, Umwelt und Verbraucherschutz

Bundesministerium für Bildung und Forschung, Federal Ministry for Education and Research (BMBF)

Bundesumweltministerium

Bundesamt für Wirtschaft und Ausfuhrkontrolle (BAFA)

Thüringer Landesverwaltungsamt Weimar

Thüringer Ministerium für Wirtschaft, Technologie und Arbeit

Thüringer Ministerium für Landwirtschfaft, Naturschutz und Umwelt (TLL)

Landesbauernverband

123 (127)



Technical University of Cottbus (Brandenburgische Technische Universität Cottbus) http://www.tu-cottbus.de

Leibnitz-Institute for Agricultural Technology Bornim e.V. http://www.atb-potsdam.de

Technical College of Eberswalde (Fachhochschule Eberswalde) http://www.fh-eberswalde.de

Technical College of the Lausitz (Fachhochschule Lausitz) http://www.fh-lausitz.de

Leibniz-Centrum for agricultural Research (ZALF) e. V. Müncheberg http://www.zalf.de

Forschungsinstitut für Bergbaufolgelandschaften e.V. ttp:// www.fib-finsterwalde.de

Forest Institute Eberswalde (Landesforstanstalt Eberswalde) http://www.lfe.brandenburg.de

Forschungsinstitut Bioaktive Polymersysteme FI biopos e.V. http://www.biopos.de

Institute for crop treatment (IGV Institut für Getreideverarbeitung GmbH) http://www.igv-gmbh.de

Erneuerbare Energien Gesetzes (EEG)

Brandenburgisches Abfallgesetz (BbgAbfG)

Thüringer Waldgesetz (ThürWaldG)

Kreislaufwirtschafts- und Abfallgesetz (KrW-/AbfG, Circular Flow Economy and Waste Management Act)

Gesetz zur Änderung des Absatzfondsgesetzes und des Holzabsatzfondsgesetzes



Energiesteuergesetz (EnergieStG, Energy Tax Act)

Biokraftstoffquotengesetz (BioKraftQuG, Biofuel Rate Act)

Bundesimmissionsschutzgesetz (BImSchG, Federal Immission Control Act)

Tierkörperbeseitigungsgesetz (Animal Carcass Disposal Act)


Biomasseverordnung (BiomasseV, Ordinance on Generation of Electricity from Biomass)

ELER-Verordnung

Durchführungsverordnung

Kontrollverordnung

Finanzierungsverordnung

124 (127)



Altholzverordnung (AltholzV, Waste Wood Ordinance)

Düngemittelverordnung (DüMV, Fertilizer Regulation)

Düngeverordnung (DüV, Fertilize Ordinance)

EnergieEinsparverordnung (EnEV, Energy Saving Ordinance)

Hygieneverordnung (Hygiene Regulation)

Klärschlammverodnung (AbfKlärV, Sewage Sludge Ordinance)

Thüringer Landeshaushaltsverordnung

Landeshaushaltsordnung (LHO) Brandenburg

Arbeitsgemeinschaft Qualitätsmanagement Biodiesel e. V. (AGQM)

BioEnergie 2021 – Forschung für die Nutzung von Biomasse” (Research for the use of biomass)

( http://www.bmbf.de/foerderungen/12089.php

)

Kreditanstalt für Wiederaufbau (Reconstruction Loan Corporation)

Reconstruction Loan Corporation (KfW)

Förderinitiative Ländliche Entwicklung Thüringen (FILET)

Verordnung über Verbrennungsanlagen für Abfälle und ähnliche brennbare Stoffe” (Ordinance Combustion of

Waste and Similar Combustible Materials)

Bioabfallverordnung (BioAbfV, Ordinance on Biowastes)

Bundesgesetzblatt ( http://217.160.60.235/BGBL/bgbl1f/bgbl104s1918.pdf

)

German “Fachverband Nachwachsender Rohstoffe”

“Biomasse” (Biomass)

“LEITFADEN BIOENERGIE – Planung, Betrieb und Wirtschaftlichkeit von Bioenergieanlagen” (GUIDLINE BIO

ENERGY – planning, operation and profitability of bio energy installations

“Biotechnologie – Chancen nutzen und gestalten” (Biotechnology – use and arrange chances)

Research programme “Nachwachsende Rohstoffe” (Renewable resources)( http://www.fnr-server.de/ )

Competition “Bioenergie-Regionen” (bio energy-regions)( http://www.bioenergie-regionen.de/)

Marktanreizprogramm http://www.thueringen.de/de/picloader.asp?pic=/imperia/md/images/tmwta/energie/th_biomasse.gif

125 (127)


Financial Frameworks in the target regions http://www.businesslocationcenter.de/imperia/md/content/blc/industrie/biomassekraftwerke__in_brandenburg.

ppt http://www.eti-brandenburg.de/energieatlas/biogas.html http://www.verkehrsmanagement-thueringen.de/Landkarte.jpg http://www.biokraftstoff-portal.de/th/index.php?tpl=be&red=aktlist&id=2303&kr=2&bk=4&bs=14 http://www.haase-energietechnik.de/de/Home/ http://www.tll.de/ainfo/pdf/bio11206.pdf http://www.tll.de/ainfo/html/pdf/lwlr1607.pdf http://www.umweltfondsvergleich.de/artikel/031218BiomasseSilbitz.php http://www.solarserver.de/news/news-6267.html http://www.energieblog.de/2006/12/19/biomasseheizkraftwerk-schkoelen-eingeweiht/ http://www.bauportal-deutschland.de/referenzobjektdetails_Biomasse-

Heizkraftwerk_Bischofferode_Holungen_37345_Bischofferode_Holungen__id_1895.html http://www.steag-saarenergie.de/de/05_Download/pdf/Broschuere_BHI.pdf http://www.tll.de/ainfo/bga_info/pdf/bga_link.pdf http://www.businesslocationcenter.de/imperia/md/content/blc/industrie/biomassekraftwerke_in_brandenburg.p

pt http://www.fh-nordhausen.de/ http://www.schachtbau.de/schachtbau/englisch/divisions/umwelt/umwelt_frame.htm http://www.btn-biotechnologie.de/ http://www.missbach-gaertner.de/index-eng.htm http://www.tuev-thueringen.de/ http://www.adapt-engineering.de/ http://www.apparatebaundh.com/englishmain.htm

http://www.nordbrand.de/ http://www.bgu-maschinen.de/e.home.php

http://www.sonnholz.de/

126 (127)


Financial Frameworks in the target regions http://www.euro-biomass.com/ http://www.bicnordthueringen.de/ http://www.energie-nordhausen.de/ http://www.seva.de/e-index.htm

http://www.gaia-akku-online.de/ http://www.bioc-online.de/ http://www.brandenburgenergie.de/bbenergie/aktuelles/index.cfm

http://www.bmbf.de/de/6868.php

http://www.bmu.de/files/pdfs/allgemein/application/pdf/foerderrichtlinie_waerme.pdf

http://www.kfw-foerderbank.de/ http://www.ilb.de/rd/programme/1693.php?PHPSESSID=0cuvalsnkiel7hutujsdb36qa5 http://unternhemenswelt.de

http://www.bmu.de/files/pdfs/allgemein/application/pdf/eeg_en.pdf

http://www.gesetze-im-internet.de/bundesrecht/biomassev/gesamt.pdf http://bundesrecht.juris.de/bundesrecht/abfkl_rv_1992/gesamt.pdf http://www.bmu.de/files/pdfs/allgemein/application/pdf/verguetungssaetze_nach_eeg.pdf http://www.tlug-jena.de/contentfrs/fach_02/biogasanlagen/malsch%20genehm.pdf http://www.bmu.de/files/pdfs/allgemein/application/pdf/wastewood_ordinance.pdf http://bundesrecht.juris.de/bundesrecht/depv/gesamt.pdf http://www.kyffhaeuser.de/lrakyf/uploads/media/Abfallsatzung2006_1__01.pdf

http://www.biomatra.de

http://fnr-server.de/

127 (127)

TRENDS IN BIOMASS RELATED ENTERPRISES

EXISTING LEGISLATIVE AND FINANCIAL

FRAMEWORKS

IN BURGOS, TAMPERE, POMURJE, CENTRAL HUNGARY,

NORDTHUERINGEN AND BRANDENBURG REGIONS

CONTENTS

SUMMARY

1.

INTRODUCTION

2.

BIOMASS FRAMEWORKS IN THE TARGET REGIONS

BIBLIOGRAPHY

Related documents

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Support

TRENDS IN BIOMASS RELATED ENTERPRISES

EXISTING LEGISLATIVE AND FINANCIAL

FRAMEWORKS

IN BURGOS, TAMPERE, POMURJE, CENTRAL HUNGARY,

NORDTHUERINGEN AND BRANDENBURG REGIONS

CONTENTS

SUMMARY

1.

INTRODUCTION

2.

BIOMASS FRAMEWORKS IN THE TARGET REGIONS

BIBLIOGRAPHY

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