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EU TACIS PROJECT Support and Development of Renewable

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Support and Development of Renewable
Sources of Energy (Biomass) - Ukraine
EU TACIS PROJECT
Support and Development of
Renewable Sources of Energy
(Biomass)
Objective
Promote the use of biomass in
Ukraine
Veli-Pekka Heiskanen, 27 April, 2006, Kiev
Support and Development of Renewable
Sources of Energy (Biomass) - Ukraine
Resources and schedule
� Project budget € 2 million
пѓ� Funded by EU TACIS program
пѓ� State Committee for Energy
Conservation as project partner
пѓ� Allocated work time; foreign experts 5
man years, local experts 8 man years
пѓ� Project finished by March 2007
Support and Development of Renewable
Sources of Energy (Biomass) - Ukraine
Background information
пѓ� Technical biomass potential over 7 Mtoe,
only 0.7 Mtoe used at present
пѓ� Biomass energy in Ukraine could account for
about 5 to 10 per cent in the primary energy
consumption
пѓ� Substantial potential in agricultural residues
(80 %), wood fuel resources also significant
� Potential projects up to € 400-800 million in
next 5-15 years
Support and Development of Renewable
Sources of Energy (Biomass) - Ukraine
Biomass utilisation potential
пѓ�Bioenergy used at present in smallscale, mainly in households
пѓ�Significant future potential at district
heating plants, industry, and farms
пѓ�Co-firing at coal plants could be of
significance to some extent
Support and Development of Renewable
Sources of Energy (Biomass) - Ukraine
Investment potential (€ millions)
пѓ�Wood-based biomass
пѓ�Agricultural residues
(sunflower residues,
straw etc.)
пѓ�Biogas, landfill gas
50-100
200-400
150-300
Support and Development of Renewable
Sources of Energy (Biomass) - Ukraine
Project implementation
пѓ� Formation of Energy Service Company
(ESCO) for developing and implementing
biomass projects, assisting in funding and
giving technical assistance
пѓ� ESCO will work independently under
Ukrainian management and staff after
TACIS project has been finished
пѓ� Create recommendations for Ukrainian
biomass strategy: targets, incentives,
taxation, standards, local manufacturing,
biomass fuel market
Support and Development of Renewable
Sources of Energy (Biomass) - Ukraine
Project implementation
пѓ� Implementation of two biomass boiler plants
пѓ� Four more projects will be developed to
“pipeline stage”
пѓ� Improvement of project financing possibly by
“joint implementation scheme”, CO2 trading,
or joint ventures with foreign companies
пѓ� Dissemination activities
Support and Development of Renewable
Sources of Energy (Biomass) - Ukraine
Biomass project proposals
пѓ� Over 20 project proposals received so far;
most of those aim to wood utilisation, only
few to the use of agricultural residues given
its high potential in Ukraine
пѓ� Significant interest in fuel production
(pellets, briquettes, biodiesel)
пѓ� Work in progress; pre-feasibility studies
carried out for most proposed projects, six
selected for closer studies so far
Support and Development of Renewable
Sources of Energy (Biomass) - Ukraine
Conclusion
The prospects for increasing biomass
utilisation in Ukraine are excellent:
пѓ� High existing biomass potential
пѓ� Significant fraction of the existing energy
production capacity needs up-dating
пѓ� Possibility to utilise carbon trade for financing
investments
пѓ� European biomass market growing rapidly
пѓ� Opportunity to increase self-sufficiency in energy
Support and Development of Renewable
Sources of Energy (Biomass) - Ukraine
Thank you very much for your attention !
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